Home sales and prices increase next year
Hurricane Sandy definitely didn’t derail the momentum of the Housing market in the United States, where both sales and costs of homes are expected to increase next year. Sales are planning to increase by 5.9%, according to the industry group NRA. This is considered to be the highest increase after tax credits were placed during 2009.
Sales are expected to succeed expectation where more than 4.76 million homes are going to be sold during November 2012. Several industry experts believe that this number will increase to 4.9 million. NRA reported that this might be due to the decrease in the average price of homes since last year.
Sales are expected to increase by 6.9% in the Southeast region, the area that was affected the most by Hurricane Sandy. The North areas are expecting a 7.9% increase and the west area expects a 0.8% increase only. This might be due to the west area being known for having the worst weather conditions.
Overall, sales are still considered to be below the record that took place during 2000. This year was known as the ‘’housing boom’’ in the United States. Chief economist John Yun believes that the improvement in job markets plays an integral role in this demand. “Momentum will continue to build increase in our housing market,” John said. He also believes that new jobs and lower house prices have led to the improvement in home sales.
An economy that is constantly improving doesn’t only enable Americans to purchase their dream homes, but it will also assist them in keeping up and paying their mortgage. This will definitely decrease the amount of individuals who are facing foreclosure.
This is an improvement in the housing situation which is believed to have hit a difficult point during the last economic crisis. Thousands of Americans were forced to leave their homes and weren’t able to keep up with their mortgage payments. This also left the American economy in a crisis because there were hundreds of homes and mortgages unpaid and the government was forced to spend money on them.
Many Americans are now looking for homes in different areas of their country. Many of them are now able to what Americans call their dream home. Even though President Obama is now facing heated talks due to the fiscal cliff problem, this will definitely shift those who didn’t trust his administration towards the economic problems in the United States to his side.