Rising Home Prices Indicate the Housing Market Continues to ImproveHousing prices continued to rise for the sixth straight month in a row according to officials from Barclays Capital. This is mostly fueled by the fact that Americans seem to be willing to spend a little more than previous years as they show confidence that the economy is improving.
|Out of the darkness and into the light… the U.S. real estate market continues to show signs of improvement as we head into the coming year.|
Economists agree that the housing market has most definitely turned around and is steadily improving as prices continue to rise and housing index is higher than it was last year at this time. It has been almost six years since the market’s initial collapse.
Both new home construction and resales of existing homes have risen in the past month as sentiment among businesses with home builders is much higher than it has been over the past several years. The head of Barclays Capital, Larry Kantor, says that housing has the most potential for giving the U.S. economy a badly needed boost in the coming years.
Overall, the stock market is also showing signs of improvement as the housing index is up over 14 percent for this month. More and more consumers are applying for mortgages which are spurred mostly by the drop in interest rates from the Federal Reserve’s efforts to stimulate the economy.
Yahoo! Financial News:
Home prices rise for sixth month, a sign of recovery
Mortgage applications rose as rates hit new lows: MBA
Wharton School of Business:
Why the Housing Market Is Poised to Enter a ‘Virtuous Cycle’