The builders around the country are optimistic about residential real estate. It is just beginning to feel that sales are going to increase within months. More builders are expressing confidence for coming sales. The industry has a climb ahead.
People are showing interest in purchasing homes again. There has been nothing to indicate improvement for the last four years. The market peaked in 2006 and at that time the index that measures success was high. Since that year, that index has not risen above 50. Now the interest shown indicates the market is recovering.
All the signs are in place. Houses on the market were sold at the fastest pace since May of 2010, home construction is on the increase and the mortgage rates remain favorable. A seeming contradiction is the fact that home prices are still falling. New residential real estate sales were the lowest for those newly constructed properties. It has not seen such a low number sold since 1963.
It’s the glut of foreclosures on the market and their availability that is one component of the sluggish sales. The second component is the stricter requirements the bankers are imposing.
Texas, New Orleans and Pittsburgh are exceptions. In certain parts of Texas, sales are increasing significantly.