What's in Store for the Housing Market this Spring?

The latest news on Gross Domestic Product, which is the broadest measure of U.S. economic activity, shows economic growth is still sluggish overall. GDP for all of 2014 was only 2.42%, which is disappointing considering we're in the 6th year of the economic recovery. However, the housing sector continues to improve, despite the harsh winter weather earlier this year.

Housing Sector 

Despite a big 17% decline in Housing Starts in February, Building Permits, which are a sign of future construction were up 3%. This is a good sign that the setback in Housing Starts was most likely temporary due to inclement weather. New Home Sales hit a 7-year high in February, another good sign for the housing sector.

New Home Sales

In February, New Home Sales  hit a 7-year high, rising 8% from January to an annual rate of 539,000 units. New Home Sales now stand at their best level since February 2008. They're up nearly 25% from the 432,000 recorded in February 2014. While pricing and sales for new homes were up, the Existing Home Sales report was not as promising, due to winter weather and low inventory. It remains to be seen what will happen this spring and summer, but these early numbers for new homes are another promising note in the recovery.

2015 Housing Market

Freddie Mac recently noted in its March 2015 U.S. Economic and Housing Market Outlook that it expects 2015 to be the best year for home sales and new construction since 2007. Freddie Mac cited an improving job market, rising rents and expanded credit availability as some of the reasons for its positive outlook.

Home Prices

Home prices are continuing to show signs of growth, as the S&P/Case-Shiller Home Price Index rose by 4.6% from January 2014 5o January 2015. This is the biggest gain since September. Its also up from the 4.4% annual rate recorded in December. The lofty price gains seen in 2013 an early 2014 may have cooled, but home price gains continue to be steady at what is considered normal levels.

The bottom line here is that Lake of the Ozarks home loan rates remain very attractive, making now a great time to consider a home purchase or refinance. Contact your Lake of the Ozarks mortgage lender today at 573-746-7211 to start the process!

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Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.