As the economy is back on the rise, it’s a pretty good indicator that the real estate market is as well. Financial institutions are lending at an all-time high for the first time in years. It is shown as a direct co-relation that once banks are lending, homes are being purchased and built, which stimulates the economy.
More Homes Are Being Built
The US Census Bureau reports an increase in new home constructions. Comparing the first half of 2013 to that of 2012, new home construction was up 24 percent. You can also see the rise of the housing market due to various companies rising in sales such as those that manufacture and produce lumber, bricks, steel, copper, and appliances. There is an increased need for plumbers, electricians, and realtors. All are necessary to help revive the market to ensure there isn’t a shortage of homes. The National Association of Realtors reports how June 2013 sales were low, but still at an all-time high for the past two years.
Few Economies Were Left Unharmed
There were a few economies whose homes barely depreciated. These economies were left unharmed due to the industries there. Houston, TX for instance, was backed by the oil industries and financially stable medical communities. The home values of Buffalo, NY increased as New Yorkers value health care and education.
Mortgage Rates Are Increasing
Mortgage rates are increasing, which means banks are no longer pleading for potential buyers to take out a
loan. It’s no longer as easy to process an application as it once was. Now, credit is playing a major factor once again and mortgage rates have increased along with home prices. Take Miami, FL for instance. The real estate market here is high from investment opportunities. They are now having a growing number of international buyers and more condos are slated to be built in the near future.