“Home prices accelerate” sums up the most-recent commentary from the S&P Dow Jones Indices. Every area of the country is posting year-over-year price gains.
Other indicators also point out the housing market’s strength, comments S&P Dow Jones. Foreclosures are down and new home construction is sharply higher over the past twelve months.
Low mortgage rates and better employment prospects in many areas are making consumers more confident about purchasing a residence now. Economists say homeowners on average can expect their properties to be worth at least five percent more a year from now.
One adds that if mortgage rates stay low, “home values could surge 35 percent without stretching housing affordability,” according to the National Association of Realtors (NAR). Valuation firm Veros Real Estate Solutions states “the national real estate market has hit bottom and is now in a full recovery.”
Healthy job growth and pent-up demand for residences are contributing to home sales, adds NAR. A stronger real estate market provides a boost to America’s economy, as well. Building and furnishing houses creates many jobs for U.S. workers.