Low mortgage rates have given many people throughout the country a great deal more confidence when it comes to purchasing a home. For those who are approved and can afford such payments, they will find that they are at some of the most reasonable levels we have ever seen. Across the nation, of course the real estate market is working in peaks and valleys with places such as Boston truly picking up and showing signs of stability, whereas others are still struggling. One thing has been made certain however, that despite there being a plethora of foreclosures still on the market and a previously perceived inflated inventory of homes for sale, things are changing.
The new home construction across the United States has taken off. Looking at April of 2012 compared to the same month from 2011, home construction is up 2.6%. Home construction as a whole is up 30% over 2011, with builder confidence seemingly at the highest level it has achieved in at least five years. This is a great statistic as 20% of the total real estate market sales today come from new home sales. Moreover, with each construction of a new home averages three more annual jobs to the workforce as well as generating $90,000 worth of taxes for the government.
Of the aforementioned surplus of inventory issue, the real estate markets of the country have been able to take this down from on average an eleven month supply to one that is now at a six month supply. Throughout these movements in the industry, there is much to be excited about if the economy as a whole is strengthening enough to where people are confident in the direction of our real estate markets to make such an important and thoughtful investment in their future. Time, as always, is one of the most crucial elements in all of this and will prove to be the determining factor as to how much longer these great strides can continue.
More Information: Marketplace.org