Increasing pending home sales signal more franchise sales?

Does an improving real estate market signal more franchise sales. The housing market's fortunes have had a decisive impact on the economy and franchise sales. The National Association of Realtors said on Thursday its Pending Home Sales Index, based on contracts signed last month, rose 0.3 percent to 106.0, the highest reading since April 2010. There are already stories of buyers having to increase offers to secure the property they want. Are we seeing the start of the growth of equity again in the properties we own as prices increase? Will this lead to more secured funding from banks for small business and franchises?

Housing market could again dominate economy

The housing market is again shifting but this time for the better. It is regaining its dominance in the economy.The recovery, fuelled by increasing home prices is being driven by the Federal Reserve's easy monetary policy, which has kept mortgage rates low for record lengths of time.
Mortgage rates did spike last week to their highest level in a year but it is not believed higher borrowing costs would now weaken the housing recovery as it gains momentum.

This could be good news for franchising as home owners see the value of their homes increase. Increased equity usually means more borrowing power and a greater feeling of confidence and net worth for individuals who come looking to buy franchises.