|
Steady home price gains can help drive the housing recovery. Higher home prices encourage more people to buy before prices rise further. They can also entice more homeowners to sell by making them more confident they'll get a good price. In addition, higher prices raise the equity people have in their homes, which makes selling more profitable. Banks may also be more willing to provide mortgage loans if prices are generally rising. But many homeowners still owe more on their mortgages than their homes are worth. That can make it difficult to sell. Higher home values can also help the economy. They increase homeowners' wealth, which encourages more spending. Consumer spending drives 70 percent of economic growth. Sales of previously occupied homes leveled off over the winter but may increase in the coming months. A measure of signed contracts to buy homes rose to a three-year high in March. Homebuilders are also starting work on more new homes and apartments. That creates more construction jobs. Builders started work on more than 1 million homes at an annual rate in March. That's the first time the pace has topped that threshold in nearly 5 years.
[Associated
Press;
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries
Community |
Perspectives
|
Law & Courts |
Leisure Time
|
Spiritual Life |
Health & Fitness |
Teen Scene
Calendar
|
Letters to the Editor