The Business Cycle Dating Committee of the National Bureau of Economic Research met in June 2009 and determined that the recession that began in December 2007 was officially over. Of course, that was a cruel joke to most Americans who were still suffering through the worst economic downturn since the Great Depression.
However, three years later there are unmistakable signs of improvement in our economy. This has stirred the great awakening in the housing market because housing is inextricably linked not only to the economy, but to the perception of what the economy will do in the future. There are many measures for this perception but the best is probably the Consumer Confidence Index (CCI). This index polls thousands of Americans each month and asks them how confident they are in the economy. Between 2007 and 2008 it plummeted to a level not seen since the 1970s. The level crawled along the bottom for four long years until last year when it started rising. As more good news began trickling out of the U.S. economy the CCI has grown at a slow but steady pace for the past 12 months.
What is causing us to come out of our shells and believe our economic future might hold some promise?
Many would-be home buyers waited for years for signs of a stabilizing economy before jumping back into the housing market. The green shoots of progress have been growing steadily for the past year which has resulted in buyers jumping back into the housing market and creating our super red-hot housing market. Take a look at the bold figures in our Quick Stats. The number of homes under contract is up 50% in the past year!
So, if youâ€™ve been waiting on the sidelines for the past few years wondering when it will be a good time to buy again, you might want to start thinking about it. Our economy is improving, inventory of homes is at record low, interest rates are still low (but rising), and home prices have begun rising again. Give me a call and Iâ€™d be happy to share all this data with you.