Over the last six months, nearly every facet of the U.S. economy has shown improvement and the real estate market is no exception.
Here is the proof:
Recovery Sign #1: Housing Starts. In February, housing starts checked-in at an annual rate of 698,000 units. That’s up 14.7% from the 608,800 starts in 2011… up 18.9% from the 586,900 starts in 2010… and up 25.9% from the record-low 554,000 starts in 2009.
Recovery Sign #2: Building Permits. In February, building permits – a proxy for future construction – climbed to an annual rate of 717,000 units. That was ahead of expectations. It also represents the highest level since October 2008.
Recovery Sign #3: Dwindling Inventory. Expect even more building on the horizon. Why? Because new home inventories plumbed their lowest level on record in January at 150,000 units.
Recovery Sign #4: Bidding Wars. The lack of inventory is creating a competitive bidding environment.
Recovery Sign #5: A Bottom in New Home Sales. In most states new home sales have fallen. Katy, Texas is lucky to be in an area of constant new growth!
Recovery Sign #6: A Rebound in Existing Home Sales
Recovery Sign #7: Prices. Prices are typically the last sign of a recovery. They are a lagging indicator like unemployment.
Recovery Sign #8: Rising Confidence. The National Association of Realtors/Wells Fargo Index of builder confidence climbed for the sixth month in March. It’s now at the highest level since 2007.
Recovery Sign #9: Historic Affordability. With home prices down, and rent prices rising, it has never been cheaper to buy a home. If fact a separate study by Trulia found it is now less expensive to buy than rent in 98 of America’s 100 most populous areas.
Recovery Sign #10: Employment. Labor market is improving. In the last eight months, the unemployment rate is down almost one full percentage point.
Recovery Sign #11: An Influx of “Smart Money. Investors are making big bets on homebuilders.
Add all eleven of these factors together and it is clear, the real estate market has officially begun the road to recovery.
If you have any questions or would like to see any of the real estate in the Firethorne/Katy Area, please feel free to contact me at 713-253-5678 or at Angela@AngelaKhomes.com
About Angela
I love your upbeat take on the real estate market. However, it isn’t happening the same in every market. Some are still stagnant.
And as for employment, I have to disagree. The published unemployment figures only reflect those who are still drawing benefits and trying to find work. They don’t reflect all those who have given up.
We have a long way to go and steps to take before Americans are sufficiently employed. Of course, like real estate prices, that varies from place to place. North Dakota has very little unemployment and Texas also seems to be in better shape than most of the nation.
Thanks