Brian Rosen says that the housing marketing recovery is fueling overall economic recovery, and that both builder and buyer confidence is high. Bob Walters, chief economist at Quicken Loans, believes, “It’s official: housing is back on solid footing,” as cited in the article.
This report comes out nipping at the heels of a report released by the National Association of Realtors (NAR), which is showing growth in the sales of previously owned homes. But while new home sales represent a smaller chunk of the market, “they can have a greater impact on the overall economy because of the labor required to build them,” as new homes necessitate “more spending on new appliances, carpeting and other furnishings sometimes manufactured at U.S. factories.”
“Demand is increasing,” says Rosen, “and inventory is shrinking. With the increasing availability of mortgage capital, we’re expected continued recovery and growth. But that means prices will rise, especially for new homes, which are currently a better investment than previously owned homes. There’s a window of opportunity for first-time home buyers, and it’s right now. Many people who thought they could never afford a home are finding that the current market
The housing market recovery has been one of the key catalysts of economic growth, says the article, boosting the pace of home building as well as retail sales. “Record low mortgage rates” along with “improving unemployment,” decreases in foreclosures and a tight inventory have all contributed to the increase in home prices.