The recent growth exhibited by the overall economy may again be seen in future months, as improvements observed in housing markets across the country continue to provide substantial strengthening nationwide. Real estate agents nationwide may be experiencing a much-welcomed increase in business.
Freddie Mac's U.S. Economic and Housing Market Outlook for May outlined the effect housing conditions can have on the economy, showing that job gains from new home construction can bring down the unemployment rate substantially. The government-sponsored enterprise announced 63 percent of the nation's population is participating in the labor market and offered its predictions for gross domestic product to grow about 2.5 percent over the course of this year.
"While the broader labor market might be facing a skills-match challenge, in the construction sector, it's a matter of structures, not a structural employment problem," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Household formations are expected to gradually rise to a 1.2 to 1.4 million annual pace in coming years, supporting a sustained level of construction."
During a recent session of its 2013 Midyear Legislative Meetings and Trade Expo, the National Association of Realtors released information validating Freddie Mac's predictions. Public property records show homeownership rates have declined quickly for younger adults, however, an increasing amount have demonstrated their desire to enter the market and buy a house.
If mortgage records continue to advantage borrowers, more individuals may obtain residential financing and pursue a property purchase in the coming months.