The skies are turning blue again, slowly but surely, for the 2014 housing market. The National Association of Home Builders (NAHB) recently revealed some statistics that show the market is progressing after a rough first quarter. Payroll employment has improved, home builders and remodelers are adding jobs, and although housing demand is a bit low, new home sales are doing better than they have in a while. So how will this year compare to last year? What are experts predicting for the next half of 2014? How is the construction sector faring? If you want to learn more about this steady progress, read on for some hard facts regarding the 2014 housing market and the months yet to come.
2014 Housing Market Progress
Before we start discussing this positive turn of events, let’s check out the facts:
- Payroll employment improved by 217,000 in May.
- Home builders/remodelers have added 106,000 jobs in the past year.
- The construction sector unemployment rate has lowered to 8.9% (it was 11.2% last year and 22% at the post-recession peak).
- The NAHB/First American Leading Markets Index is staying consistent at .88, however that’s 6 points higher than it was in June 2013.
All of this is good news, though it’s not a dramatic change. Interest rates are low, but demand for housing isn’t quite where it should be yet. Slowly and steadily, the 2014 housing market is improving and the future looks bright as well.
Last year, buyers were plentiful and sellers reaped the benefits, with quick sales and respectable home prices. This year, homes are affordable (they’re still 31.5% lower than they were in 2006), and mortgage payments are lower as well. Prices are expected to slowly rise back to more typical levels, with experts predicting that home prices will rise at about 3-5% in 2014. Plus, a very large percent of consumers are hoping or planning to buy a new home this year, and similarly, a large percent of homeowners are expected to sell (source).
If you’re a middle-class American looking for affordable housing in 2014, you would do well to look in the Midwest. Of the top 10 most affordable housing markets in the U.S. right now, cities in Ohio make up half the list (Akron, Toledo, Dayton, Columbus, and Cleveland) and three of the other cities are in Indiana, Michigan, and Arkansas. The least affordable housing markets are in California, in cities like San Francisco, Los Angeles, Orange County, San Diego, Ventura County, and San Jose (source).
Home sales for this year are expected to run below 2013’s 5.1 million, according to the National Association of Realtors. Although sales are picking up, they likely won’t be able to make up for the sluggish first quarter of the 2014 housing market (source). As far as home construction goes, we’re seeing a very slight increase (1.3% for single-family spending and 2.7% for multi-family).
Are you interested in building a new home or remodeling your current abode this year? If you’re located in southwest Missouri, check out The Bailey Company. We can assist you in any or all stages of construction, from the pre-construction and design process to building your new home or office. For more information, please click here or give us a call at 417-887-6177.
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