Signs of Recovery in Housing Market
There are signs of a housing turnaround across the nation. Low mortgage rates coupled with many current owners looking to get out for reasons as varied as…
- Needing the money
- Getting out from an upside down loan
- Avoiding a mortgage rate reset
I appears that data is starting to support a turnaround. I don’t think anyone can argue that things got WAY out of control in many markets (not mine). As with most folks, I have friends who saw prices increasing at a double digit clip for a solid 5 years. It was like the early Dot-com boom. Whatever you bought would move up.
Housing showing signs of recovery
We all know what happened in the dot-com boom and in the housing boom. Too far, too fast, too unrealistic, and the markets collapsed. When a market is hot, people flock to it. Things are blown out of proportion with the artificial demand and, in the case of the dot-coms, substandard products/issues/companies enter the frenzy. Many of these factors will lend toward the what goes up—must come d0wn.
At the present time housing in my area is very strong in some segments. The bottom line is rates are low and it is very possible to buy a home and pay less each month than you would pay in rent. If you qualify for a mortgage it is nearly a no-brainer to take advantage of the market. If you are a first time buyer, the incentives are too good to pass up.
With housing stable and possibly moving in the other direction (at a realistic pace), owners will see some equity in their homes. When a homeowner feels secure in their investment, they feel better about spending. Spending drives our economy and will get us back on track.
Let’s hope that the oil prices don’t jump in and derail things for a while. Keep it below $60 OPEC!
Additional Support for the housing turnaround: Signs of Recovery in Sacramento’s Housing Market – NYTimes.com.
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