The housing market is looking up according to industry experts. This comes after a week of success, and another week that looks as though it will share that success. The National Association of Realtors is expected to release figures that show significant growth over the last period. This growth comes at a time when investors are growing more and more anxious at what could be a significant turnaround from the last decade.
While things have significantly improved from last year, many have said that the growth thus far has been disappointing. Things like slow-growing wages and a shrinking workforce, have made some question whether this return to greatness that the housing market has experienced is worth anything at all.
At this point, it’s difficult to say one way or another, but the immediate truth is that there will be a lot of success throughout this week on Wall Street. That means the housing market isn’t the worst place to be if you’re heavily invested. While a good report this week, or success that continues on Wall Street into this week doesn’t necessarily spell a return to “normal” before the recession, it definitely does put a lot of grief behind them.
Quincy Krosby of Prudential Financial pointed out that, “If you start seeing the unemployment rate come down with a broad swath of jobs being created, it should be positive for the housing stocks.” One thing for certain though, which contradicts the outright success of the housing market – is the outranged growth of multi-family units, compared to single-family homes.
This suggests that the typical, single-family home, which was the staple of the United States housing market over the course of the last half-century, still is out of reach for many people. It has created a point where families are now looking for alternatives to traditional home ownership, and even working through different methods of having a place to call “home.”
John Augustine of Hunington Trust pointed out that, “The best scenario is that the stock market keeps moving up, the baby boomers retire and the millennials get their jobs.” At the end of the day, most of the housing market is tied to the outright success of those who are in their 20’s. Right now, many are looking for jobs, and it’s unclear at this point how well the jobs that they land will support them into the coming years, and how long those jobs will be around.
Purchasing a house, or building a house is a long-term investment, and many people – even those who have considerably more job security than those who are in less fortunate situations – still have to think long and hard before making a move.