KIPLINGER: HOUSING RECOVERY FIRMLY UNDERWAY
Prices are rising and inventories are falling in markets throughout the United States, including our local markets of Lake St Louis, Wentzville and St Charles County, which has led financial reporting and forecasting firm Kiplinger to declare the housing recovery “firmly” in motion. Moreover, the company says housing will help carry the overall economy at a time when U.S. exports are decreasing, says Karen Mracek, a Kiplinger editor and real estate analyst.
“The biggest reason we think we’re on firm ground is that we’re seeing every indicator on the way up,” Mracek says. “As with the overall economy, it’s kind of hard to call the bottom or the pivot point. But we’re seeing a range of indicators that suggest pretty solid growth going forward.”
In addition to home values and supply, positive indicators include the number of multiple-bid situations, new-home construction, and credit availability, she says. Solid improvements in these fundamentals will lead to formation of more new households and will also help more borrowers come out from underwater and trade up to a new home. They’ll also create new jobs in real estate and construction, Mracek explains.
Local builders like Mcbride and Son, Fisher and Fritchel, Pulte Homes and Lombardo homes are also seeing an increase in traffic and new construction starts. Some of the major subdivisions that are seeing growth include Countryshire, Wyndgate, Springhurst, Carolton Glen, Stone Meadows and several other smaller subdivisions.
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