While the U.S. housing market has experienced its fair share of ups and downs, recent trends indicate that confidence is returning, both for homebuyers and builders.
This is great news for industry professionals, as an increase in buyers and construction could lead to a stronger business and an improved bottom line. This shift is also relief following the Great Recession and the fluctuating sector witnessed over the past several years.
According to the National Association of Home Builders, builder confidence for new single-family homes finally reached a stage where more builders view conditions as positive than negative. The NAHB/Wells Fargo Housing Market Index reported a reading of 53 in July, up from the 49 noted last month.
"An improving job market goes hand-in-hand with a rise in builder confidence," said David Crowe, chief economist for NAHB. "As employment increases and those with jobs feel more secure about their own economic situation, they are more likely to feel comfortable about buying a home."
International buyers flock to US housing market
Confidence in the U.S. housing market is not only rising among builders, but also among international buyers. According to the National Association of Realtors, this is driven by affordable home prices and a growing knowledge of U.S. real estate conditions abroad.
"We live in an international marketplace; so while all real estate is local, that does not mean that all property buyers are," said Steve Brown, president of NAR. "Foreign buyers are being enticed to U.S. real estate because of what they recognize as attractive prices, economic stability, and an incredible opportunity for investment in their future."
For example, international sales were estimated at $92.2 billion between April 2013 and March 2014, NAR reported. That is up from $68.2 billion noted the year prior.
As the market improves, real estate professionals will need access to the best available information. Where once that meant a trip to the local courthouse, now CRS Data offers mortgage records, property data and much more, right online.