June 26th, 2013 1:44 PM by Alan Martin
Finally, some great news about America’s real estate market! An analysis of the real estate market over this past spring has shown a very active market sector. The increase in the real estate market has stimulated the U.S economy by helping boost employment levels, job creation and the U.S Gross Domestic Product (GDP).
What is GDP? Gross Domestic Product, is the total market value of all final goods, services and property produced in the U.S in a given year. The GDP report is released at 8:30 am EST on the last day of each quarter and reflects the previous quarter. 2013 1st quarter GDP figures show a significant increase at 3.1 percent, which is a growth of 0.4 percent when compared to 2012 1st quarter.
The 1st quarter also showed an increase in the sales of pre-owned properties, increasing by 0.4 percent to a 5 million annualized rate, which is the highest this market sector has been at since 2009. In April the market saw a small decrease of sales by 0.6 percent, bringing the annualized rate to 4.92 million, however, new home sale continued to climb by 1.5 percent, from the previous year.
During this time, the new home market sector has also been a key player in the boosting the U.S Economy. The construction of new homes is up by 47 percent, when compared to 2012 and is at its highest level since 2008.
With the rise of home prices combined with the increase in new build home, the U.S has seen an increase in job creations and employment levels, ultimately aiding towards an overall better US economy. Economic analysts predict that the real estate market could continue to grow, giving the economy and labor market the momentum it needs, and the boost Federal Reserve is hoping for.