Chicago, IL (PRWEB) February 15, 2014
As the housing market has slowed down in the winter months, many people assume the weather is a major factor. It is safe to say that there are fewer home shoppers during this time of year, as CF Funding mentioned previously. With the snow and cold that the Midwest has been experiencing, this winter is even more difficult than usual to buy or sell a home. However, some economists are worried that the weather may have very little to do with the slowdown, suggesting that the market could be performing poorly for other reasons, such as low inventories and rising interest rates.
This opinion relies heavily on the fact that warmer states, such as California, are seeing home sales fall this winter. However, California is also experiencing a drought, one which has inspired the president to pledge up to $100 million in aid today. Obama’s top advisor John Holdren has even said that this could be the strongest drought of the past 500 years, and Bloomberg Businessweek said on February 14th that, “It has also left 17 rural towns so low on drinking water that the state may need to start trucking in supplies.” So it is safe to say that, although winter weather may not affect California, the drought certainly does. Luckily, the federal government is taking major strides to help farmers and communities to conserve and recover.
CF Funding is happy to report that construction employment has seen no major downfalls due to the weather this winter. In fact, the construction industry added 48,000 jobs in January and showed its largest monthly increase in almost 7 years. The AGC, or Associated General Contractors of America, has even said on February 7th that “at the current rate of growth, it would not take long before many firms begin having difficulty finding enough skilled workers to meet demand.” Residential construction specifically boosted in employment by 16,800 in January, and by almost 44,000 on a 3 month scale. Specialty contractors such as electricians and plumbers saw gains in employment in January as well. It is questionable whether this is due to repairs that were needed due to the bad weather.
New home purchase applications have increased 35 percent since December, which is a major improvement. Sales in November and December were slow, but builder sentiment is still high. Although the average size of new home loans decreased from December to January, Mortgage News Daily is confident in the housing market, stating on February 13th, “Our Builder Application Survey (BAS) estimate is consistent with reports of homebuilder sentiment that show strength in the market for new homes.”
CF Funding looks forward to growth of the housing market in 2014. For updates on mortgage news, follow the CF Funding Twitter page at http://www.twitter.com/CF_Funding.