In an ironic twist of fate, it looks as if the one thing that put our economy into a tailspin may be slowly bringing us out. When the housing bubble burst, just about everyone was negatively impacted in one way or another. Real estate agents, home builders, contractors, and investors have all lost a substantial amount of money. With our economy in a recession and good paying jobs getting harder to come by, it is understandable that people have been less willing to invest in a new home. Another reason for the dip in home purchases is the difficulty in getting a loan. This is a reasonable consequence of the bubble bursting, since giving loans to people who could not afford them was part of the problem in the first place.
After some years of futility it appears that the housing market is back on the rise and South Florida is seeing improvement as well. According to the Sun-Sentinel, Broward County’s local newspaper, the average sale of a home has risen 9% over the past year. It’s neighbor to the north, Palm Beach county has seen even better increases of 20%. Broward county has also seen an increase in the number of homes sold. When comparing 2012 to 2011, there has been a 24% increase in purchases.
These stats are very encouraging and indicate that we are on the right track to economic recovery. An increase in real estate sales benefits numerous industries both directly and indirectly in the field. Typically when people purchase a home they use services like home inspectors to see if their are any problems. A representative of MI&T, a local inspection company MI&T reports, “Business has most certainly increased.” After purchasing a home, people usually make improvements and changes to customize their new purchase. That means buying materials and hiring contractors. All of these things stimulate the economy and increase jobs.
With the prices of real estate on the rise, many people are thinking now is a great time to purchase a home. Having people in this mindset is a great thing for our economy rather than being scared of entering the market due to fear. Whether or not these trends continue and prices continue to increase and promote economic growth remains to be seen. One thing is for sure, things look much more promising today than they did a couple of years ago.