Categorized | Residential

Job Market and Income Growth Are Key to Housing Market Rebound

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According to a recent report from Fannie Mae, the housing market will benefit most from overall income growth, and an increase in the creation of new jobs. Those two factors will directly influence consumer confidence, which typically plays an important role in improvement of the residential real estate market.

 

Those two factors have led to increased demand in the housing market. Americans are now showing that they are willing to spend more, and as the unemployment rate continues to fall, that trend will become even more evident.

 

It should not come as a surprise that an improving job market would greatly benefit the performance of the housing market. Most potential homebuyers first consider the likelihood that they will remain in their job for an extended period of time before committing to buying a house. After all, buying a home without a stable job could cause a potential nightmare in the future, and ultimately lead to foreclosure.

 

While the last six months have produced strong growth in the housing market, thanks largely in part to the improving economy and job market, many economists believe that true growth in the residential real estate market is still a year away. At that point in time, the housing market will have likely regained its health, and prices will be showing strong signs of gain throughout the country.

 

For those with a strong interest in the housing market, the last five years have been a difficult struggle. However, everything looks to be changing, and if this recent report from Fannie Mae is any indication, those in the housing market may finally be able to see light out the end of the tunnel.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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