Southgate is experiencing a much improved year in terms of housing sales, just as we are seeing across the country, in Chicagoland’s North Shore, and throughout the other neighborhoods in The Glen. Certainly low housing inventory, low interest rates and pent up demand are factors.
Another huge factor is the improved financial health of American families. In particular family net worth has been on the rise as the stock market more than doubled since the low point of the Dow at 6,443 in March of 2009. Modest improvement in home values has also impacted family financial health. According to some economists, the combination of dramatically improving equity markets and improving home values has increased net worth to within 5% of the peak prior to the Great Recession.
The result of improving family financial health is growing confidence in the future. The Conference Board tracks consumer confidence monthly. After examining its September poll Lynn Franco, Director of Economic Indicators at the Conference Board, said this:
Consumers feel more positive in their assessment of current condition, in particular the job market, and considerably more optimistic about the short-term outlook for business conditions, employment and their financial situation.
Confidence in the future translates into housing purchase decisions; and this is a huge driver of housing’s rebound. There is evidence of this in Southgate where twice as many homes have sold in the first three quarters of 2012 as compared with all of 2011. With three more months to go, it is likely that Southgate will experience its best sales year since 2007.