Wall Street Journal recently reported that the confidence of builders in the housing market is on a steady rise. In fact, it is as high as it’s ever been since November of 2005.
The confidence rating rose from an index of 60 for June and July to 61 for the month of August. The National Association of Realtors also reported the sales of existing homes are increasingly high, competing with numbers set back in February 2007. According to top economic authorities, these are all positive signs of a real recovery in the housing market.
What is contributing to this increase in sales? As Wall Street Journal pointed out, there are a few different factors, one of those being the decrease in the unemployment rate. At 5.3%, unemployment is at its lowest level since 2008. Over the last 3 months, averages of 235,000 jobs per month have been added to the labor market. Now factor in the increasing rates in rent, and you can see why purchasing a new home has become very attractive.