La Jolla, CA (PRWEB) November 29, 2012
The Real Estate Marketing Insider released its statement today on news that the recovery of the housing market has begun to aid other economic areas in growth and recovery; REMI statement is that this is great news for the housing market, especially low-inventory areas like Southern California, which can take advantage of growth in the construction industry to build new property and capitalize on high buyer demand.
Fresh off of reports that October home sales continued to be up and project further growth, economists at Deustche Bank estimated that the housing market’s continued recovery had potential to grow the U.S. economy by a full percentage point in the next year. The economists also observed that the strength of the real estate sales and marketing industries could be important economic buffers in case other economic areas, like exports, begin to slow.
Nowhere is the effect of housing on the economy more visible than in the construction sector. Earlier this month, the National Association of Home Builders released results of a survey showing a builder confidence index of 46. While any readings below 50 are indicative of negative feelings about the housing market, a rise to 46 marks a sharp change from last October, when the index was at a sobering 17.
As builder confidence grows, economists hope that we are returning to a healthier construction sector. A healthy economy supports roughly 1.2 million new houses per year, or about 100,000 new properties each month. At the nadir of the housing crash in 2008, U.S. construction produced only 570,000 new properties. September’s construction numbers project that 2012 housing totals will be around 872,000 - still not numbers that economists hope for, but almost a 75-percent increase from the worst season of the slump.
A boost to pre-crash construction levels would be a great relief for the housing market as well, whose greatest problem is decreasing inventory. REMI has examined markets like Southern California, where thinning inventory is becoming a serious problem for home buyers; it’s still a problem nationally as well. In October, 2.14 million homes were available for sale nationwide, a number that could be exhausted in less than six months. Increases in construction may be the only way that the housing market stays healthy in the coming year, so this new measure of confidence and forecast of growth is excellent news for real estate investors and professionals.
The Real Estate Marketing Insider released its statement about reports that as a result of the housing market’s recovery, construction and other economic areas are also improving. The construction sector shows increased confidence among home builders, and increased new construction from numbers during the housing crash. This upward trend could strongly benefit the housing industry, which has no shortage of demand but is facing precariously low inventory levels.
About the Real Estate Marketing Insider: Based in La Jolla, CA, REMI delivers online news, marketing tips and trend analysis to real estate professionals.