More local housing markets report gains in November
Posted on Thursday, December 20, 2012 at 4:50:05 PM
It appears the construction industry's confidence in the residential sector is justified, as many local housing markets showed substantial growth in November. The number of improving housing markets boosted significantly during the month, rising to 125, according to the National Association of Home Builders - a 22-market gain from the previous month.
In order to qualify for inclusion on the NAHB's list, a housing market must demonstrate six consecutive months of increased property values, housing permits and employment rates. While this is a positive development on a local level, it could be a sign of things to come for the national real estate market's recovery.
"A 22-market gain in the list of improving housing markets will have an overall positive impact on the national real estate industry," said Daniel A. Murphy from Home Loan Investment Bank. "The gains will likely provide momentum for other markets close to a rebound, and as banks find real estate values more reliable, the borrowing process may get less burdensome. Additional improving markets will also have a positive impact in the future. Simply put, when we have a trend of improving markets, overall lending and consumer confidence increases. The net result is more lending and more acquisitions of real estate."
Consumers considering a transition to homeownership should get their finances in order and consult their options with Home Loan Investment Bank.