Chicago, IL (PRWEB) May 22, 2015
The Federal Savings Bank is pleased to hear that the national housing recovery is gaining steam in the spring to continue improvements seen earlier this year, according to the National Association of Home Builders. The NAHB/First American Leading Markets Index noted 68 of 360 metro areas around the U.S. matched or surpassed their typical historic economic and housing measures in the first quarter of 2015.
The study found the overall score for the U.S. inched to 91 percent of both regular housing and economic activity. Of the metro areas studied, 68 percent have seen gains in the first quarter compared to the same time last year.
Reports of the survey point to solid housing recovery
Professionals in the housing industry are encouraged by the latest report, suggesting the housing recovery is steady nationwide.
“The number of markets on this quarter’s Leading Markets Index at or above 90 percent of previous normal levels has reached 157 – a sign that the recovery is spreading to a wide range of markets,” Kurt Pfotenhauer, First American Title Insurance Company vice chairman, said in a statement.
The Federal Savings Bank thinks the housing recovery seems to be sustainable, citing an increase in pending home sales during the winter months, when sales are typically slow. December is considered to be a year-low for housing sales, along with the rest of the season. However, recent housing market reports found this is not the case for the housing market.
The National Association of Realtors stated pending home sales in March grew for the third straight month.
Lawrence Yun, chief economist for NAR, said demand has strengthened in metro areas where job and economic growth have increased. Contract signings for homes rose to 108.6 in March, up 1.1 percent from February. The index grew to its highest level since June 2013, following an upward trend of year-over-year increases that lasted for seven months.
NAR also indicated that homeowners are gradually returning to the market.
“While contract activity being up convincingly compared to a year ago is certainly good news, the increased number of traditional buyers who appear to be replacing investors paying in cash is even better news,” Yun said in a statement. “It indicates this year’s activity is being driven by more long-term homeowners.”
Where housing and economic activity are growing
The Federal Savings Bank was intrigued by the NAHB report revealing some of the healthiest markets in the U.S. had greater employment numbers, which could lead to higher demand for homes. With a low rate mortgage combined with solid income, house hunters are more likely to feel confident when stepping into the housing market.
The top market where economic activity was positive was the metro area of Baton Rouge, Louisiana, performing 43 percent above its usual market level.
The Leading Markets Index ranked the top 10 markets that had superior market levels:
San Jose, California
Salt Lake City
Charleston, South Carolina
First-time home buyers interested in buying in these locations and other metro areas around the U.S. can contact The Federal Savings Bank, a veteran owned bank, to learn more about applying for a low rate mortgage.