Housing and Economic Forecast 2010

In what has been a dour past for the economy, finally the light is at the end of the tunnel.

• The national association of Home Builders, Chief Economist, David Crowe delivered his predictions at the international builders show in Las Vegas in January 2010.  His predictions were that starts would rise 24% in 2010 and 50% in 2011.

• The housing industry has been the main catalyst, in bringing the nation into recovery, five times since 1960.  As history repeats itself the economic improvement will drive down unemployment, increase retail sales and the gross national product.

• The Federal Government pumped the housing market with unprecedented give a  ways, like $8000 new home buyer credit.  This has given potential buyers the edge they need to qualify.These sales, according to reports from some area builders, have been favorable. The ripple has caused higher priced inventory to sell.
• As a whole, the industry has done quite well working down its inventory.  The census bureau estimates 239,000 new homes were available for sale on October, compared to 380,000 during the same time last year. That is a 37% decline.

• Home values have increased over the past several months according to S&P’s Case- Shiller Index.  Even median existing home prices rose through out the 1st quarter of this year as measured by the National Association of Realtors. The real good news is new home sales have remained firm since October 2009.

• The United States economy is moving in the right direction. Shadow buyers waiting to build are starting to take advantage of the still good deals in labor and materials. Stock Home Plans are up 31% from 2009. This has been the case among the top biggest National Publishers.

Data used provided courtesy of Carolina Blueprint, http://www.carolinablueprintmag.com/