In a strong indication that the housing market will pick up for the second half of 2015 numbers released this morning show the United Sates housing market climbed to a nearly 8 year high. Beating economists estimates, residential starts rose .2% to a 1.21 million annualized rate.
This is the most since October of 2007.
This is the most since October of 2007.
Despite the strong indication that the Fed will raise borrowing costs rising employment, lack of current supply, and historically low interest rates the housing rebound will stay on track through this year.
Homebuilder confidence climbed to a high not seen since November of 2005. Measures of buyer confidence and current sales have also risen. The primary contributing factor to the strong housing market is the labor market. Payrolls have increased and jobless rates have held at a 7 year low. The 30 year fixed rate as of this morning is at 3.94%.
Some of the nations largest home builders such as D.R. Horton have beaten wall street estimates. Single-family permits have increased where multi-family and apartment permit applications have decreased. In a previous blog I mention the predicted increase over the next 2 years in rental rates which will also be a contributing factor on the increase in the demand for home ownership.
Naples, Florida is going to have an amazing second half of 2015. For consultation on the real estate market please contact Adam carriero at 239-641-3876 or [email protected]
Source Bloomberg Business 8/18/2015
Please contact Adam Carriero at [email protected] or 239-641-3876. I am available for consultation on the Naples, Florida, market.