The U.S. housing market is on the rise, with house purchases reaching their peak of more than two years. Existing property value has also increased, pushing the real estate market higher and encouraging economists and investors to brighten their outlook on U.S. expansion.
According to a median forecast of economists, new-home sales have risen to a 380,000 annual rate this November; the most since April of 2010. Housing prices have risen in 20 cities, marking the best year-over-year performance since 2010.
Mark Vitner, an economist at Wells Fargo Securities LLC, explained:
“We’re going to see large gains in virtually all of the housing measures next year. Job growth and the steady decline in the unemployment rate means that more and more workers feel confident about their own economic prospects and they’re willing to move forward with major commitments like buying a home and buying and automobile.”
He added that “consumers are beginning to focus a little bit on the fiscal cliff and likelihood that there’s not a good outcome there.”
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