Lots of interesting housing news, from our own Durango Herald to national organizations. By these indications, the the housing market is strengthening and positively impacting the greater economy. As a builder, the health of the market is obviously critical to my business. But the real reason I share these types of articles is to provide resources for my clients to stay abreast of the value of one of their biggest investments: their homes. Further, I see the micro and macro economics of the housing industry every day. It is my honor to work with talented craftsmen, as my employees and as subcontractors. The depth and strength of the building industry is critical to every regional economy.
The Durango Herald reported on home sales throughout Colorado. Summary: Homes in La Plata County are priced higher (median) and stay longer on the market than other areas around Colorado. This doesn’t sound like great news off the cuff for those looking to buy (unless you consider extremely low interest rates) or sell (length of time on market). Digging a little deeper, the article notes that the long market times are due in part to the many second/vacation homes in the area, and that the in-town homes are sold more quickly. The article ends by noting a 10-percent increase in prices in 2012, indicating the recovery is on the upswing.
The Associated Press reported, via Yahoo, that residential builders provided powerful contribution to the U.S. economy in September. They attribute this to a 2.8-percent rise in home building. Overall, spending on residential construction was up 20.9-percent over September 2011. Great news, but we still have a way to go to be considered at “healthy” levels.
According to David Crowe, the chief economist for the National Association of Home Builders, housing has generated 17-percent of the total GDP growth. In his words, “…housing has generated an outsized share of the expansion.” This article is full of statistics and current market evaluations, click here to read.