The Return of the Housing Market – This Time It’s for Real!

In the past five years the state of our nation’s economy has been tumultuous, to say the least. Everyone – from politicians to financial experts – has their own views on which economic indicators are the most accurate for determining true growth.

Of course the housing market is one of the top indicators mentioned, along with the bubble that burst several years ago, and almost doomed the nation to another depression.

But lately, this market is showing real signs of growth – not the kind of rapid expansion that leads to bubbles, but dependable, measurable progress that benefits the economy, and more importantly, people looking to purchase homes.

The Commerce Department recently released numbers in October that indicate builders broke ground on homes at a rate of 894,000. That’s a 3.6% increase from September!

While it’s definitely a great start, delving deeper into another indicator brings even more good news. That indicator is the cost to rent a house and the cost to purchase one.

The price to rent a house and buy one should rise at the same rate over an extended period of time, but when rents rise faster than home prices, it’s a strong sign that the housing market is picking up steam.

Rising rents shows that people realize that the money they’re paying for rent could be used to pay a mortgage. Owning a property is always a smart investment, and because it’s a long-term commitment buyers usually feel secure in the stability of their job and the national economy.

Housing markets across the country are already showing an improved comeback, and unlike other events in the past, it’s a steady growth. This is much better than a bubble because bubbles – as we all know – burst.

Taking a look closer to home shows that the same phenomena in nationwide markets are also true in our area. The growth has been stable, and as new homes are built and purchased, the positive ripple is felt throughout the economy.

Now that we’ve established the housing market is beginning to show signs of growth, it’s worth looking at what purchasing a new house can bring to a person’s overall financial situation.

Of course, purchasing a house is an investment, but remember it’s an investment that will increase in value over the years. Even better, it’s an asset that pays immediate dividends in terms of a place to live and raise a family.

Local homebuilders are already breaking ground on new homes, and that means the inventory is expanding. This provides potential buyers with many opportunities, including the option of having a home designed and built specifically for you.

Whether you’re purchasing an existing home, or looking at new developments, you need a lender that provides excellent financial packages with competitive rates and dependable, accurate insight into the housing market.