The housing market's growth was lauded by many industry investors, despite caution from market analysts over issues with recovery.
Improvements in recent property data, coupled with further government assistance for the residential market helped to increase investor belief that the situation is moving in a positive direction more quickly than economic growth, according to The Wall Street Journal. One of the biggest aids to the market's progress was the Federal Reserve's most recent quantitative easing initiative, in which it purchased a significant amount of mortgage-backed securities.
"Home sales tend to move higher over a five-year cycle, and this is year one," Kirk Mentzer, director of investment research with Huntington Asset Advisors, told the news source. "There's still a ways to go, even if the rise from here is just half of the current rally."
Market progress differs from pre-bubble situation
While the housing market's gains were stark in recent months, it is not like the level of increases recorded prior to the housing market crash. The news source explained that multiple investors have experienced impressive growth, but stock figures haven't been as overwhelmingly high.
Meanwhile, the housing market's growth rate is still far below the historical norm. The news source said the annual rate average for new single-family properties since the late 1950s is 1.5 million each year.
However, real estate records from the Department of Commerce showed housing starts during September reached a seasonally-adjusted annual rate of 872,000. Despite the figure still being far below the historical average, it was 15 percent higher than the previous month's rate of 758,000. Additionally, the figure rose nearly 35 percent year-over-year.
With steadily increasing home sales throughout this year, as well as low mortgage rates, housing conditions may be more attractive for not only investors, but also many consumers. The department's report also showed that housing completions last month rose 0.4 percent from August to a rate of 683,000. This was also nearly 14 percent higher than the same month in 2011.
Additionally, building permit authorizations rose, according to the report. September's rate of 894,000 was more than 11 percent higher than the previous month's level of 801,000, and 45.1 percent higher than September 2011, when the rate was 616,000. This could signal further housing starts and completions in the coming months.