For evidence that the housing market is recovering, some big numbers make a compelling case.
New-home starts for Metrostudy survey markets are up 40 percent over starts for the same period last year. California leads in growth, but we’re also seeing significant recovery in markets like Sarasota, Fla., and Las Vegas.
Residential construction spending is more than $308 billion, an 18 percent jump over the prior year. And construction unemployment dropped 43 percent from its 2010 peak and 9 percent year-over-year.
Single-family home sales are up to an annual rate of more than 5 million, the highest since the downturn began. And single-family supply is at historic lows: 4.1 months of new homes and a 5.2 months of existing homes—representing 16 percent and 19 percent decreases, respectively, for the same time last year.
The rebounding prices make consumers more confident, demonstrated by a surge in the Consumer Confidence Index to its highest level in more than five years.
Pent-up demand is now translating into buyers getting off the fence, with 30 percent of home shoppers surveyed indicating they are tired of their current homes.
Individually, each of these indicators demonstrates the favorable conditions and auspicious course of the housing market; as a whole, they answer the question “Is the housing recovery real?” with a resounding, “Yes.”
Learn more about markets featured in this article: Las Vegas, NV.
