Housing Markets on the Upswing

Realtors and homebuilders alike – and the myriad industries that provide products and services to them – are breathing a collective sigh of relief: At long last, the housing markets are coming to life.

As Kathy Lawser, administrative assistant for the Wood Components Manufacturers Association (WCMA), points out in the organization’s Housing Update, emailed to members on March 12, 2013, although housing markets typically lead the nation out of recessions, this time around, they stayed dormant, letting government spending fuel economic improvement, instead. Now, though, we are seeing long-awaited improvements in the housing market.

Kathy attributes housing growth to the current affordability of homes, due to record-low fixed mortgage rates (although it’s not easy to get loans) and the low inventory of new and existing housing stock, pushing home values up (7.3% in 2012, according to the latest Case-Shiller Home Price Index).

Remodeling expenditures are up as well, thanks to both investors, who are purchasing foreclosures and remodeling them as rental property, and homeowners who are remodeling rather than selling their homes.  Kathy happily points out that consumers generally use upgraded hardwood materials when remodeling, which leads to increased sales of hardwood cabinetry, flooring, molding, millwork, and furniture.  That’s great news for wood components manufacturers – and for Franklin Adhesives & Polymers, which provides wood adhesives to so many of them.

We look forward to helping you make the most of the economic upturn.