Home Prices Seem to be Rebounding
American consumers seem to be more optimistic in terms of the gains and mends that have been done on the housing markets. This rise in the home prices is indeed going to bolster the overall economy of the country for the first time in many years. Even as the pay role taxes appear to be rising, still the consumers expect to see a major change in the sector. Moreover, the property values will continue to go higher and higher, thus giving off more signs of improvement and betterment of the economy.
Furthermore, the growing population and the improving economy have also increased the demands for housing. That’s not all, as the turnaround that has been seen in the real estate values will empower the consumers with more confidence in terms of the property value and the returns that will be generated on the sales.
Ryan Wang has stated in this regard that the housing sector has now started to recover with agility. Not to forget here that Ryan is a well-known economist with the HSBC Securities USA. In addition, this upward movement of the housing properties has also added nearly 1 trillion dollars to the total household wealth since this year has started. With this in mind, it is evident that some huge number of profits will be added in the remaining months of the year 2013. Wang continued by adding that this improvement is also going to provide a number of benefits to the household consumers and will also guarantee the betterment for the broader economy of the country.
The rise in the home prices had been initiated in last February after which a new episode of growth and development had started after more than 7 years. Anthony Chan offered his view by stating that on looking at the collected housing data, the picture shows an improvement in the overall economy. He also added that the mortgage rates are low and the element of price appreciation is also evident, so by taking these two dimensions into account, a formula for a continued growth can be devised.
Moreover, a number of economists have also stated that the gains of the stock market in addition to these improvements in the housing sectors are going to blunt the influence of the recent increases in taxes. At the end of the month of February the consumers will be quite cheerful. Fed Chairman Bernanke has also added that the benefits which can be seen easily outweigh the costs.