Hopeful Numbers On The Horizon For US Housing Sector

It's no surprise consistently seeing negative stories, numbers, and articles on the housing industry; at least for the past few years.

Finally, good news looms on the horizon with a surge in housing sales in what is normally deemed one of the slowest seasons in the housing industry, winter.

If you missed it on the National News the NAR numbers for February were released and it was finally a positive change and not only that, a consecutive number of months worth of positive increases in home sales.

After strong sales numbers for January, home sales jumped 8.8% in February according to the National Association of Realtors. This is the best jump in sales in over five years; giving hope to all those in the industry from buyers to sellers alike. In a season that normally sees stagnant, if not falling, statistics there was a much enjoyed surge in home sales this winter.

Some attribute the surge to the extremely mild winter seen in many areas while others feel it's a combination of the extremely low interest rates available for those with excellent credit who are beginning to look at buying houses as an investment and not just a place to live along with a steady increase in the economy & jobs in general for the first time in years.

The Domino Effect

The best news of this surge isn't only the upwards trend that gives hope to the future of the Real Estate industry but the domino effect it has given to the economy. With each home that is sold either another home is bought that is generally larger or even a new construction that increases many other areas of industry including the obvious construction industry and all that the industry encompasses.

Another domino effect of the surge in housing sales includes an increase in the Home Retail Store industry with sales of home repairs and updates; along with increased sales of items for decoration both indoors and out. The average new home buyer spends approximately $3,000 in renovations, repairs and making small fixes to their new homes within the first month or so of buying their home.

Each of these domino effects are small jaunts to each of the industries involved; all stemming from the sale of one home. These increases are causing a positive effect to the economy but also to the trending of home sales in the future. Retailers like Home Depot®, Lowes®, and other building and home stores are boasting sales increases once again also; obviously an effect of the increased number of houses being sold.

Homes Are Finally Selling Faster

Homes had previously been on the market for sometimes upwards of 9-months to a year and they finally have finally begun selling; changing the statistics from sellers having their homes on the market for one year to an average of four months now. This trend alone is one that sellers haven't seen in quite some time and it appears to be just the beginning of a positive future for the housing industry as a whole.

As jobs have begun to increase and unemployment decrease people are feeling more and more confident in their ability to make large purchases such as homes or move to larger homes without fear. This confidence shows in every level of purchasing from retail to housing.

With 90% of home sales being homes that are already existing and not new construction, seeing homes no longer sitting without an offer for nearly a year is definitely a change towards the positive. Add to this factor the trend that the last three months have been the best winter sales in the past 5 years according to the NAR; the future seasons which normally see an increase in sales looks to be a definite positive.

Spring is usually one of the biggest selling seasons of the housing industry and with a consistent increase in sales happening for winter one can only guess that the same is going to continue to happen for the spring season.

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