Home value pace good for home improvements
Report shows the home value index up by 6.4 percent year-over-year and up 1.2 percent from the end of the second quarter, but unchanged from August. This is a good pace for recovery and keeps us out of the boom and bust cycle. This new pace of home value appreciation has even brought a number of markets back from the edge of entering possible bubble territory again. This pace is good for handyman services and home improvements. When people are confident that we have a growth that we can sustain they invest in their properties.A steady annual sustained growth is what we want. People get nervous quickly now if we grow too fast. It may seem strange to say but sometimes its better if the pace of home value growth in some markets slows down. Remember what happened when increasing home values got out of control before. The data shows some markets like California for example have already touched on the edge of bubble market territory again and expensive metro areas that experienced relatively modest declines during the crash have already shown very robust gains during the recovery.
Across the country as recently as July, all of the top 30 metro areas showed positive monthly appreciation, with none exhibiting a monthly pace slower than one percent month-over-month.
People need to feel that we can sustain our growth. Confidence effects our economy more than some realize. It certainly effects the level of activity in the home improvement market. When people feel things are heading in the right direction they spend more on home remodeling projects. I believe we have come off the bottom and are at a sustainable level of growth in home values that should now continue for sometime as people become more confident with their decisions to buy and sell.
What do you think?
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