After the sub-prime mortgage crisis of 2007 it has taken the housing industry a long time to climb back from its precipitous fall. Wary investors watched as new home sales struggled to rebound and existing homes saw their value drop. However, as the economy begins to show strong signs of life the National Association of Homebuilders is announcing that 75% of the US metropolitan areas are now seeing improvement in new home construction and sales.
In March, New Haven and Hartford were both listed as improving markets and Connecticut in general is doing well in terms of recovery when compared with other states such as Florida and Michigan where real estate prices are low but no one is buying. In addition to the improvement in Connecticut’s housing markets there is also a noticeable increase in demand for custom luxury homes. People who can afford new home construction are looking at planned communities and custom homes to make their investments more cost-effective.
Usually, when a thriving stock market is combined with high corporate earnings, low interest rates, improving family finances and moderate energy prices the homebuilding market swells. The prolonged slump in the housing industry created a lot of demand, and with economic conditions improving analysts expect to see more lending from banks and an increase in permits for new housing.