This week, the three major indicators for a rebounding housing market are strongly pointing to the positive with rising sales, rising new construction as well as rising consumer confidence. Furthermore, with record low mortgage interest rates, an eight thousand dollar home federal buyer's tax credit and a ten thousand dollar state buyer's tax credit, it seems that the housing market is making a comeback.
Consumer confidence had been very low for the last six months and consumers' attitudes about the nation's economy and their own personal financial concerns rose greatly into positive numbers this past month.
The national consumer confidence index soared up 14 points to its highest level in almost nine months just in the past 30 days alone. That jump is incredibly important for the future of home buying and selling. With this change hopefully people will no longer be staying on the sidelines and will finally decide that now is the perfect time to buy.
The second indicator for the improved consumer confidence came from the National Association of Realtors' monthly home sales report which showed that sales of single family homes including townhomes, condos, and Co-op's rose close to three percent this past April.
New home building permits and starts are also on the upswing after many months in negative territory. California's new home starts increased by almost 22 percent in April over the previous month which was the largest jump since October of last year.
With the monthly increases in sales, builders are beginning to clear out inventories that have been sitting stagnant for quite some time and are now building again.