It appears that the economy is finally gaining momentum to help provide the support that the housing market needs for stronger recovery. There are several attributing factors behind the momentum that has provided a solid footing for the real estate market. First, employment grew at an average of 2.0 percent on a year-over-year basis for the three months ending in November 2014, the strongest rate since the three months ending in March 2006, which was the peak employment growth of the last economic expansion.
Second, employment growth for millennials began to markedly improve in 2014. Most notably, the 25 – 29 year-old segment experienced a 3.0 percent improvement in employment growth, which is one percentage point higher than the overall employment growth rate.
Third, the recent drop in oil prices cannot be overstated, because not only does it directly lower the transportation and home energy costs for households, but it also improves consumer confidence. Overall, the current outlook is positive and headed into a more confident direction.