As housing prices continue to climb and supplies of single-family units remain low, the real estate sector is expected to continue to push U.S. economic growth, according to CoreLogic's April 2013 Pulse Report.
CoreLogic found that while mortgage delinquency and foreclosures were declining in early 2013, down 15 percent from early 2012, owner equity in homes was on the rise. Increased equity has pushed more homeowners toward becoming home buyers, though tight lending standards by underwriters are still keeping some from accessing the market.
The April report also forecasted that real estate investors will continue to drive the market in 2013.
"At the same time homeowners newfound equity open market opportunity, a second key market constituent, the investor, is expected to continue driving demand in 2013," said CoreLogic's chief economist Mark Fleming.
Improved real estate values can drive better employment conditions. Reuters reports that states with the strongest recovery in housing prices are also seeing jobless rates plummet.
For example, California saw it unemployment rate fall to a four year low in March 2013, down to 9.4 percent from 10.7 percent in March 2012, according to data from the Bureau of Labor Statistics. California has also seen the largest jump in housing prices year-to-year of any state, particularly in San Francisco and Sacramento.
Content provided by executive search organization, MRINetwork.