The US Real Estate Recovery Is Actually Happening
The purchase of real estate is based upon people having jobs and earning money, and it seems that the real estate market in the United States is beginning to show some life, like it is being raised from the dead. The evidence comes from real estate agents around the country, as they are experiencing more activity, thus more sales.
Beth, a realtor from Norman, Oklahoma said that the numbers of people who are looking for houses in the Norman, Oklahoma City area are increasing, slowly, but increasing. She finds as she speaks with her clients, that most have been transferred and promoted.
Todd, from Phoenix, is a broker and he sees signs of hope, as listings are up and so are sales. Even though statistics show a fairly even growth line across the country, there are signs of growth here and there. Todd sees more self-employed people getting new homes, and upper management folks in major companies as the ones making the moves in home buying.
One big factor in the decision of many home buyers in the current market is the affordability of mortgages. This has remained as the best mortgage buying period in the 40 year history of the National Association of Realtors’ index of affordability. The fact that it is cheaper to purchase a house now than it ever has been is stimulating many people to jump in and take advantage of the bargain.
The price of homes overall is down to, as the current pricing is still 21 percent below fair market value on a nationwide basis. Coupled with the low financing costs, this factor offers a combination that has never been available since the Great Depression. For people who can get their act together on financing and all of the other details in buying a house, this is bargain days like have never been.
The credit conditions for mortgages have also eased slightly, so more people are able to qualify where just six months ago, that was not the case. Mortgage rates are starting to gradually rise, so banks tend to ease credit requirements, as rates go up, as they will have an increase in profits as this trend continues.
Another factor is that new college graduates and workforce members are entering the market as they nail down new jobs, and have good credit prospects. They take on starter homes, but that certainly helps them as well as the overall statistics on home buying. The average new home for younger couples and individuals may be $75,000 to $100,000 below what a middle aged couple with children would buy, but these people are entering the market too.
It is going to be interesting to see what occurs over the next six months to a year, with elections coming up, and the economy struggling with its ups and downs. The housing market is dependent on lots of factors tied to the overall economy, but the market for housing also has its own factors that drive the economy.