More and more economic analysts are calling the housing market the bright light in the overall economic recovery. Home sales for existing homes ($100,000+) have risen since this time last year in nearly every region in the country. In addition, inventories have dropped nearly 26%. These two trends have done wonders to stabilize and improving market conditions.

“The housing market is clearly superior this year compared with the past four years,” says Lawrence Yun, NAR’s chief economist. “The latest increase in home contract signings marks 13 consecutive months of year-over-year gains.”

Consumer confidence, a number economists look at to predict the vitality of the future market, is greatly impacted by the improving housing market as home equity still accounts for over 16% of household net worth.

 

Source: “Will Housing Lead A U.S. Recovery?” Forbes (Aug. 27, 2012)

Tim Hart

 

At Home In Bozeman--Tim Hart