With a patient eye on the long-term implications, the United States can expect a modest, stable housing market recovery. As a result, builders will be able to engage in higher construction activity in the coming years and the economy recovers, the population grows, and housing demand increases. This view is supported by the fall Pending Home Sales Index (PHSI) data from October and November 2013, showing an increase in home sales based on signed contracts of .02% in November, with numbers moving up from 101.5 in October to 101.7. The start of 2014 will most like see a relatively level market, as potential buyers have come to understand that, despite the rise in interest rate during the summer of 2013 and the subsequent surge of sales, home buying conditions are still favorable.
Read the full article here: With the Bump in Interest Rates Behind Us, Sales are Returning to Normal