Housing prices are finally rising again, after falling for more than five years, says a recent Bloomberg news article written by Jed Kolko, chief economist at Trulia Inc.
The asking price index, published by Trulia, climbed at an annual rate of 3.3 percent in the second quarter of this year, adjusted for mix and seasonality, and rose in 84 of the 100 largest U.S. metropolitan areas.
An immediate effect of the turnaround, according to the article, is that inventory will tighten – when there are fewer homes available, sellers can ask for more. A recent survey by Trulia showed that, in fact, 61 percent of individuals expect housing prices in their local markets to rise. In turn, more prospective buyers might by now, before prices increase too much.
In light of the slow, but steady recovery, construction has surprisingly not seen the same positive effects. On the contrary, the industry added only 2,000 new jobs in June and jobs in residential housing construction, according to the Washington Post, has struggled for the last two years.
Calculated Risk's Bill McBride told the Post though, that construction jobs should pick up soon. Oftentimes, he said, there's a lag between the number of new housing projects and jobs as there is usually a long time frame for construction projects.
While the housing market shows signs of recovery, lenders should invest in personal loan software as more individuals might consider buying a home for the first time. Or, if current borrowers desire to adjust a mortgage, an amortization calculator would also benefit lenders, to help keep track of monthly payments.