Houston homeowners could be forgiven if recent months of preponderantly bleak reportage have driven them to cut down on their news consumption. Since no one has a very clear picture of how quickly the nation will be able to get fully humming again, endlessly dwelling on the latest details of various downturns eventually loses its charm. It’s why there was one sunny tidbit you might have missed last Wednesday.
The NAHB is the U.S.’s trade association for home builders. Their voice to the public is their online journal, “Eye on the Economy.” It documents the ups and downs of the housing industry. Last week, its lead headline captured a pragmatic (but welcome) take on the outlook at mid-May: “Positive Signs for Housing Despite Staggering Job Losses.”
Its essentially optimistic forecast was all the more persuasive by its inclusion of less-than-encouraging recent data. Construction employment, for instance, “declined by 415,000 positions,” while broader measures “reflect even more extensive losses”—with more to come. Yet from these “staggering” numbers come signs that consumers are beginning to show faith in a strong resurgence to come. The past three weeks have revealed, “a sign of latent housing demand”—the increase in mortgage applications. It’s a measure of demand that will is likely to escalate as lockdowns ease.
For home builders who suffered a lethargic recovery from the Great Recession, this time, the outlook is much sunnier. Since “housing held considerable momentum” entering this downturn—and since the supply of residences is “underbuilt” by approximately 1,000,000 units—the potential demand “means that housing is a sector that can provide economic momentum” in the coming recovery.
With the Mortgage Bankers Association reporting the fourth consecutive week of gains, for those inclined to look past gloomy headlines, it’s a forecast that bolsters confidence that “this, too, shall pass.” For Houston buyers and sellers ready to investigate today’s Houston market, now is the opportune time to give Rinnovare Realty, LLC a call at (832) 445-4957!