The changes in the housing market throughout 2014 will lead to a positive outlook as we enter spring 2015. Continued consumer confidence, increased inventory, and a leveling off of housing prices will combine to create a sustainable recovery.
Consumer Confidence
Consumers continue to have a brighter outlook for the economy and the housing market. Confidence levels increased in 2014 and were higher than predicted. Many experts believe that the improvements in the housing market are a contributing factor to consumers’ willingness to enter the real estate market this year. The number of listings and new builds has increased while prices have leveled off to a more stable rate.
Increased Inventory
Many states across the United States have seen an increase in listings of existing homes as well as a country-wide increase in new developments. By the end of 2014, new build homes were up 8.8% year over year, and the numbers continue to rise into 2015.
With a decrease in supply, some homeowners received multiple offers, which drove up sales prices. But homeowners who hesitated to sell when prices were down are now beginning to put their homes on the market. This increased supply will mean more competition for homes that are on the market. The upsurge in supply will help slow down the rate increase in the housing market and prevent inflated property values.
Housing Prices Realistic
Stable housing prices will foster a sustainable recovery and allow the economy to maintain its positive momentum. Experts say that the housing market is sounder than it has been the last few years, which may encourage more sellers, buyers and builders to reenter the real estate market.
This positive outlook will help builders sell their units in the coming spring and summer selling season. If you are looking to increase your new home developments this spring, turn to TempsPlus for help. We can assist you with the administration, marketing and personnel to manage your communities. Contact us today to find out how we can help you get ready for the spring housing boom.