Although the world economy is fluctuating up and down after the recession five years back U.S economy continues to travel on the recovery path. The housing sector in U.S is the major contributor of this recovery phase which was the prime reason for the recession also. It has faced boom on 2013 and it sustained even during the entire 2014 with few decelerations at few markets and many economists expected that the pattern will persist in the year 2015. Dodge Data and Analytics predicted that the construction sector will face balanced growth in the year 2015, it forecasts that the sector will rise 9% to $612 billion from $564 billion in 2014 which is 6% increase than 2013.
Employment and demand for housing
According to Zillow the U.S home market value gains $1.7 trillion and reaches the whole value of $27.5 trillion in the year 2014. The year 2014 ends with the overall rise of 6.7% in housing values which prove the market is steady and improving. The report also answered many arguments which proposed that housing price was slowed down in the year 2014 and it is true when compares with previous year’s 8% rise, but the slowdown did not make negative growth. The report also revealed the reason for price rise slowdown as increase in competition in the second half of 2014 ultimately affects the price rise. Zillow Chief Economist Dr. Stan Humpies said that there is no other field has growth more than 1 trillion dollars with single digit growth and it is sure that housing sector in 2015 will contribute a major part is whole US economy recovery.Employment rate is important factor behind the fluctuation and Companies hired 321,000 workers in November 2014 as highest monthly recruitment which shows the growth in jobs in the end of 2014 and the economists expect an average monthly growth of 250,000 will makes the year 2015 has a tally of 3 million jobs which ultimately reduce the unemployment rate below 5% and put block to inflation as an indication for stronger economic recovery. The number of housing units which includes both single and multi-unit in 2014 reaches 1.2 million from 920,000 units in 2013 and the year 2015 is expecting 1.5 million units. The impact of suburban is the major rising factor in American market. The home values in Miami has raised 13.6%, Las Vegas has 11.5% and Orlando has 11.9% which is higher than price risings in major metros.
Hoping for the higher sale
Economists of Reuter polls predicted that the sale of housing units will increase in the year 2015 because of a small slowdown in the price rise of house in the initial months of 2015 and strong labour markets. The labour growth and constant interest rate will increase the mortgage and FHA loans to the potential purchaser and thereby, the sale of houses will increase in the coming year. One of the reasons for the slowdown in housing sales is unemployment which makes the youths stay with parents and sharing home with friends and relatives. There is a wide hope that the rise of 3 million jobs in public and private sector will bring 1 million house sales in 2015. At present, the value and number of sales are steady and enhancing the growth of economy, however, we have to look the other sectors performance which aids housing sector growth for better a perspective of 2015.