With the stress of last week forgotten in the haze of a wonderful July 4th and a great weekend, it’s time to keep on our rose colored spectacles a little longer. Here are some of the rosier stats and then we’ll make some down-to-earth predictions.
– Even with a slowing economy, the housing market is picking up.
– New home sales are up over 18% from this time last year.
– Construction is up 20% in the first half of the year from 2011.
– Home prices are up 6.2% from this 3-month period last year.
So does this mean sellers, buyers, investors, banks, congressmen, and everyone else are running to call an end to the crisis? Well . . . for a change, they’re not. Even the most head-in-the-clouds individuals are being really cautious this time. Some of the sobering stats:
– Residential construction is at 2.3% of GDP, down from 6.3%.
– Home prices are down 1.9% total from last year.
– Rental demand is higher than ever with vacancy rates down to only 4.7%.
So there are reasons to be hesitant to make predictions, and I fully support that. Keep your chin up, keep contributing to our recovery, and your big payoffs will soon be in site.