Stocks, home equity fuel real estate market

Perspective: Jobs, interest rates have little impact

In our last perspective, we declared February 2005 to be the best month ever to be a home builder. Annual new-home sales have risen 76 percent in the last 10 years, unsold inventory is low, prices are 12 percent higher than they were one year ago, and the economy is on the upswing. We asked ourselves, “How did we get here?” and we learned that job growth and mortgage rates really had very little to do with it. Beginning today, we will place more emphasis on two additional variables when helping executives strategize for the future.