US housing markets surge amid stronger job growth
Posted on Thursday, April 10, 2014 at 11:01:39 AM
A number of factors disrupt housing market growth across the country, from higher home prices and restricted access to residential financing to a lack of employment opportunities. However, many of the nation's real estate segments are returning to normal, or exceeding expectations, thanks to a stronger economy.
According to the National Association of Home Builders, 59 out of the roughly 350 metro markets in the U.S. were performing better, based on the recent data from the NAHB/First American Leading Markets Index.
"I think the big news here is that regions outside of the energy states continue to gain ground," said NAHB chief economist David Crowe. "It's a promising sign to see areas like Los Angeles and San Jose joining the top ten largest MSAs showing a recovery. We still expect 2014 to be a strong year for housing and to aid in the overall economic recovery. The job market continues to mend and with that we will see a steady release of pent up demand of buyers."
Rising employment growth has been one of the driving factors behind this improvement in real estate. According to the U.S. Bureau of Labor Statistics, 286 metro areas reported year-over-year increases in nonfarm payroll employment. In addition, the unemployment rates were lower in February compared to one year prior in nearly all of the metro regions.