Categorized | Residential

Housing Sales Increase in United States as Confidence Grows

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The residential real estate market in the United States saw prices increase yet again in the month of January. The increase is the seventh in a row in the housing market, and could mean positive news for the real estate market for 2012.

 

Prices are now up more than three percent from their levels one year ago. Analysts are attributing the price increases due to the decline in the number of foreclosures. Inventory numbers also fell more than four percent from December. Inventory as a whole is down by more than twenty-four percent from one year ago.

 

Economists are now starting to believe that the residential real estate market could start to see price increases this year. Such increases would put the housing market ahead of schedule in terms of recovery. An increase, though, would require sales to continue to increase during the year, and inventory to continue to fall. However, it is likely that the market will be, once again, be flooded with foreclosures in the coming months due to legislation and the settlement of the most recent lawsuit with lenders.

 

The most recent increases, though, have led builders to develop more confidence. While the market must continue to show strong improvements for new home growth to truly take off and perform well, the signs are evident that the potential for such conditions is increasing.

 

Construction of multifamily homes is on the rise, and will likely continue to grow throughout the year. New single-family home starts are down, though they may begin to see growth in the coming months.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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