Overview of Housing 2012

The housing market had a good 2012! We saw great improvements in housing construction, so much so that home building is once again aiding the economy. Housing starts jumped 21.1%. This increase coincides with the higher levels of builder confidence over the past few months. However, there was a pause in the rise of builder confidence in January which is most likely caused by the fiscal cliff debate and all of the huge, impending decisions that face the housing and mortgage industries in 2013. Despite the improvements for housing, there has not been a huge increase in employment for residential construction. Job openings for construction are elevated which shows a demand for construction workers and suggests future growth potential. On a positive note, home prices have jumped to their highest annual increase levels in over six years. All of the pending index statistics suggest that home prices will remain strong in 2013.

Posted in: builder confidence,economic recovery,housing market,job growth