Small businesses in housing industry see recovery

The small businesses that drive the housing market are reporting signs that the industry may be experiencing a real comeback. At the beginning of the spring selling season, real estate agents and home builders were optimistic about the growing number of prospective buyers showing up at open houses and calling to inquire about listings. Now, it appears that interest has translated into sales. "We had a terrific March, better April, and May is going to be the best closing month since 2006," says Mark Prather, whose real estate agency, ERA Buy America Real Estate Services is in La Palma, Calif., on the border of Los Angeles and Orange counties. Closings are up 50 percent this year from the same period of 2011. It's a similar story across the country. Business is being driven by pent-up demand -- many people had put off buying since before the recession. Prices are lower after plunging during the housing crisis. Rising rents are making buying more attractive. On top of all of that, financing is cheap. Mortgage rates are at record lows -- 3.75 percent for a 30-year fixed mortgage as of last week. In some areas, people are even saying it's becoming a sellers' market.

Click here to view this article from its source.