There is still much speculation about the current state of the economy. Some say that it is on an upswing while others say that the worst still isn’t over. According to the last census data, there are many changing factors that suggest that there is hope in our recovering economy. Births aren't declining as they have been in past years. The job market is improving, allowing many who have finished college to find a job or a better job than they currently have. The housing market is showing signs of possible growth for 2012 as well.
I am very interested in seeing how the housing market will turn out since it was an enormous cause of our recession. This year we have seen interest rates very
low, especially for mortgages. Many places don't even have mortgage rates above
4%, such as in Cedar City, UT. Something else has been happening. The
gap between renting and buying a home has disappeared in many cases. An article in the Wall Street Journal online states "that, historically, the cost to rent an apartment has been about 10% lower than the after-tax cost of owning a home." However, "[b]y the end of 2011...research found that the cost to rent an apartment was about 15% higher than the cost to own a home." That is an enormous difference. With
renting an apartment being more expensive, buying a home is the cheaper
substitute. There are many factors that will affect the housing market, such as if potential buyers have steady jobs or not. Even with the other factors included, with record-low rates, high rent prices, and lower home
prices, the demand for homes should increase.