How the Housing Marketing Is Improving
Americans are growing more confident in the state of the economy and the housing market. Many of the responders in a Berkshire Hathaway Homeowner Sentiment Survey reported they are satisfied with the economy, and that its health contributed towards their real estate decisions. There are many factors contributing to the increase in confidence.
Employment Rates Are Up
Unemployment numbers have been steadily decreasing, indicating that more people are securing and keeping their jobs. American tax payers have also claimed their income is higher than a year ago. These factors allow new home buyers to feel secure financially and establish confidence in the housing market.
Lower Delinquencies and Foreclosures
The recent HUD National Housing Market Summary shows that loan delinquencies and home foreclosures are lowering. The numbers reported in this summary show the lowest rates in these areas since 2007, resulting in mortgage companies building more confidence in buyers. This confidence from the mortgage companies gives future buyers a better chance of obtaining a loan and purchasing a new home.
More New Construction Communities
When the housing market is succeeding, the new construction industry benefits as well. Builders can bet their homes will sell in a successful market, and they will look to invest their resources accordingly. The new construction industry likewise offers more jobs to the community, improving the overall economy.
Millennial homebuyers have reported they would prefer to wait for a home that meets their needs instead of trying to fix one up. This benefits the new construction market since these buyers are likely willing to build the perfect home from scratch. When this industry is flourishing, the overall outlook for the housing market improves, developing a cycle of confidence.
Higher Mortgage Rates
Although Americans have greater confidence in the housing market, they are concerned with rising mortgage rates, which can be daunting. Mortgage rates typically rise when income levels and the housing market improve. A higher rate can increase the price of a home, but it should not cause much concern as a higher income should justify the investment. Lower home prices or mortgage rates are not good signs for the housing market since these trends signify fewer people are buying.
Confidence Gives Buyers Options
The growing confidence in the housing market gives buyers a chance for more options in their home purchase. Home buyers are taking more time to decide on the right home and location since they feel confident the right home for them is within their reach. The current housing climate is the perfect environment for talented real estate agents to make their mark, as plenty of new homebuyers look to find the ideal match.