For years we’ve been told about the perils of real estate; how we’re moving downhill fast and prices keep dropping. Well, as a lot of the markets have been recently indicating, this appears to have changed.
While real estate may have been heading in the direction of everything else during the crisis of several years ago, it now seems to be recovering. And recovering well.
In fact, the evidence suggests that the market is almost looking healthy. The likes of Clay Hutson is well and truly benefiting, with areas such as Seattle experiencing a particularly impressive upturn in fortunes. Real estate agents are getting busy again – and this is what suits everyone.
Of course, when it comes to these recoveries, most of us are evidence-hungry. Therefore, we’ve collected some of the biggest indications yet that the housing market is finally recovering and potentially righting the wrongs of the past few years.
July 16 sales were through the roof for new homes
It takes a lot to reach the “through the roof” description, but in the case of new homes we can safely say it.
A recent report has studied July 2016 and how it performed in comparison to previous years. Well, in comparison to the last ten years, more new home were sold than any year before. Considering how much the new homes market means to the industry in general, this is considerable progress.
Family homes are also up
If we turn our attention to single-family houses, the outlook is also hugely positive.
This time, we’re not going to look at one month, but the majority of 2016. It was found that over 650,000 single-family houses were bought and to compare this to previous years, it means that sales are almost one third higher than the previous year.
Builders are jumping on the bandwagon
The first point we made was in relation to new houses and how sales of these have suddenly started to jump. On the back of this, housing developers have certainly taken note and this isn’t even that recent.
In fact, if we look back over the past two years or so, new homes have been built at a rate of one million per year. This was the figure recorded in April 2015 and to again put something of a comparison out there, this was less than 500,000 just several years ago in 2009.
It means that the investment in residential properties has skyrocketed.
New house prices are dropping
Usually, when we report on prices falling, it’s bad news.
Well, in the case of this news, it’s certainly not.
In several months the cost of a new home has dropped by around $15,000. In simple terms, this means that supply for new properties, which tend to be at the low end of the property market, is high.
The end result is simple; it should be easier for young people to get on the housing ladder. Sure, it’s going to take time and we might have to endure price drops like this, but when you combine this with the other statistics we have looked at it looks as though everything is moving in the right direction again.