As many others are stating Fannie Mae is stating that there is an increase in the housing sales. Their chief economist is saying that there is high activity levels that have buyers looking and more interested in sales.
The research team expects home sales to rise 7% in 2012, suggesting ongoing growth in the market. There is also an increase in the view consumers have in the housing market. Results show that consumers have become more positive in their views of housing market conditions they are also more supportive of the purchasing prices of homes.
Although economic growth slowed to 2.2% in the first quarter and this number was down from 3% in the fourth quarter we are still moving forward. It is a known fact that consumer spending was the primary force of growth, but this is not sustainable when most households lacking true income support. As the income support improves in homes so will the stability of consumer spending on homes.
Home sales are expected to rise another 7 percent this year as the housing market continues to recover.
Even with all this good news the reality is we are still a long way from a full recovery. What can be done to help? There are a number of things that can help boost the sales of home and many are already happening. One example is the decrease in the price of homes. This makes the consumer feel safer about making the purchase. Helping people to understand the benefit of buying a new home can also help to influence things.
Often times a new home can be purchased cheaper because it doesn’t have the overhead found in some preexisting home sales. Another thing to look at is more programs that allow people the opportunity to say their homes. The more homes that are sitting on the market with a for sale sign the worse the housing market looks.
Economy and the increase of jobs will also help stabilize the positive signs housing is showing. All things take time and we all know that the housing industry has been in a slump for some time so any positive sign is a reason to be excited.
Fannie Mae is continue to evaluate the growth and decrease it sees in the market and from that data can accurately assess how the housing market is really doing.