In 2008, the Case-Shiller home price indexed reported the largest drop in home prices in history.
This was the first sign that one of the largest housing bubbles in history had finally collapsed. Many businesses that provide services for property owners suffered as a result. However, after nearly five years of anemic home sales nationwide, the real estate market is now finally showing signs of life. This new trend is beneficial to many businesses throughout the country.
Cedar Kelly owns a window and gutter cleaning business in Boulder, Colorado. Mr. Kelly is encouraged by the strength of the real estate industry. He is optimistic that the housing market will continue to grow and is preparing to take advantage of it. Many customers have expressed an interest in his services as they prepare to put their homes on the market.
Said Kelly, "The real estate market in Boulder is experiencing a bubble stimulated by lower loan rates the Federal Reserve has created to motivate buyers. This is an excellent time to sell. Window cleaning and gutter cleaning are important steps in preparation to putting a house on the market for sale. Houses sell more easily when the views are clear, evidence of the past is washed away and the property is well-maintained and professionally prepared for a new owner."
Kelly has started offering a number of discounts for potential customers as they prepare to sell their homes. He is currently offering 10% off window cleaning and 25% off gutter cleaning services.
Many people selling homes have expressed an interest in Kelly's services. Home buyers would like to live in a clean home. Many homeowners have found that they can't sell their homes until their windows and gutters have been cleaned by a professional.
Direction of the Housing Market
There are a number of reasons why Mr. Kelly and economists throughout the country are optimistic about the state of the real estate market. One is that the Federal Reserve has kept interest rates near 0% for the past four years. They recently stated that they will not increase interest rates until the unemployment rate drops below 6.5%. Many experts believe that low interest rates have finally helped stimulate the housing recovery. Lower interest rates make it easier for consumers to finance new homes. More consumers are expected to become homeowners as home financing becomes easier.
The housing market is also expected to improve in line with the labor market. Job growth has become much stronger this year and is expected to pick up even more in the coming months. More people will be able to afford to buy new homes when they return to work.
Economists believe that the jobs market will continue to heal in the coming months, which will encourage more people to buy new homes. The housing recovery will be particularly strong as younger workers return to the workforce and make plans to buy homes and start families.
Impact on Businesses
The real estate market affects many businesses throughout the country. Real estate agents expect an increase in home sales in the coming months. Kelly said that he will clean the gutters and windows of various homes before they are placed on the market. "Sellers are grateful that the real estate market has finally turned around. However, they have also found that buyers have higher standards. Sellers know that they need to have their windows and gutters cleaned properly before they can put their house on the market.