Will 2012 Spell The End of the Slide??

Will 2012 Spell The End of The Slide?

by sharonshawflores

Economists and Experts Projecting Housing Market Continued Recovery

Supply down, demand and prices up

Year over year, home sales are up — due to a combination of increased investor activity and low mortgage rates — while the available inventory of houses for sale has decreased significantly. Fewer houses available for buyers to choose from has allowed sellers to raise prices. (via The Wall Street Journal)

Recovery is happening regionally

David Crowe, the chief economist at the National Association of Home Builders, feels that there appears to be a steady trend of market recovery, but he is not so sure that there will be a startling rebound within the next 12 months — “the recovery we are seeing is mild and meek and doesn’t show up well on national numbers.”

Or, to put it another way, Zillow’s chief economist Stan Humphries likened the creeping improvement to “bacteria attacking a bad virus,” happening zip code by zip code rather than in sweeping changes across large areas. Philadelphia and Detroit are just two examples of areas where recovery is happening and steady, albeit not pervasively. (viaHousing Wire)

Beware the bubble

Zillow’s Humphries cautioned that the current fad of investing in single family homes as rental properties may in fact turn out to be the next housing market bubble. Rental rates are continuing to trend up, making home ownership more and more appealing to a wider market. (via Inman)

sharonshawflores | June 25, 2012 at 6:04 pm | Categories: Uncategorized | URL: http://wp.me/p1TiJo-1n

 

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