Is The Housing Market Grasping At Straws Of A Recovery?
There’s some good news on the horizon, it seems. This week it was reported that home prices have started going back up in many areas of the country, while stabilizing in other places. Many of those increases occurred in large cities, which have been particularly hit hard by the housing crisis, including San Francisco, which, being in California, was much worse.
Not only that, but June also showed that sales of existing homes went up, and new home sales jumped by the highest percentage in the last eight years.
Unfortunately, if you take a better look at it all, you can’t really say that things have turned around all that much; at least not yet. For instance, since we’re talking about June here, those housing prices have gone up compared to the previous month, or months as it may be. Compared to last year, the overall housing market is still on the downward slope. The same goes for sales percentages; with as many homes as there are in the market, tax incentives from the government, and just how far home prices have gone, it’s not hard to imagine why June home sales surged so much. That, plus June is always a big month for buying homes traditionally.
Sure, we’ll take mini victories, but things still have to be put into perspective. At the same time some of these turnarounds are occurring, foreclosures are still going on across the country at a fairly high rate, even if that rate is decreasing. The rate has to decrease, though, since there are fewer homes left for banks to take back.
And, while some recovery is nice in some of the big cities, Los Angeles, Las Vegas, Detroit and Miami aren’t on that list, and those are places where housing literally tanked. As a matter of fact, Las Vegas is at the top of the list going in the wrong direction, where home prices dropped another 2.7%, and have decreased around 33% in the last four months.
Still, one has to assume that the housing market has to have a bottoming out spot, and it might be within reach at this juncture. Or it might not be, since we’re still waiting to see what happens to commercial real estate within the next six to nine months, and how it affects jobs, which will be an unintended casualty if businesses can’t keep up on their loans.
And if more people are out of work, that will definitely impact the housing market in a negative way.
See more:
Another Sign of A Housing Thaw
Prices Retreat as Housing Data Suggests Recovery
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Our housing market very poorly damaged by recession sure at least we getting hope as well some positive activity in housing market but i think still it will take time to get stabilize and for commercial real estate market very tough to comment.
They are grasping a little. Experts tend to over look the self imposed moratorium on foreclosures that just ended in June. It skewed the Las Vegas numbers quite a bit. BUT people are buying homes and the FTHB tax credit has helped quite a bit.
.-= Charles@Las Vegas Real Estate´s last blog ..Las Vegas Property Auctions – Deal or No Deal? =-.
I really wonder what things will look like after the tax credit expires. I also have a fear about interest rates rising next year. I am not as confident as I would like to be about a true recovery.
We are really hoping that the housing market will be back to normal soon, due to recession it has been damaged. Hoping that the market will soon get there, I am not yet well convince about this, but if it is happening that is one good news…
.-= Urlaub Sizilien´s last undefined ..If you register your site for free at =-.
@Sam – Good to hear from you again!
I agree. It’s important in any crisis to keep a sharp eye on reality. Reminds me of a quote I once read about and then the correction on that quote that followed. It was at this site http://pinyin.info/chinese/crisis.html and explained that though it’s long been assumed that the Chinese word for “crisis” (“weiji”) means danger + opportunity, where “wei” means “danger” and “ji” means opportunity. It’s simply not true. Rather, the “ji” part of “weiji” means “critical point” or a time when things are beginning or changing. “Weiji” then refers to an actual crisis as we know it, a time when it’s a good idea to be extra careful, wary, ready to do what you can to protect yourself and your loved ones. It doesn’t refer to a time when you should focus on getting positive benefits. Pretty cool, I think. And right on.
The best way to dig yourself out of a hole it to see the hole first and then look at all of the tools and help you might have available to you and then – to begin.
So, with regard to to the real estate market, we can look at what’s happening, not flinching at what we see, and then do what we can to make it better. Whether you’re a mortgage broker in Massachusetts trying to provide the smartest, best home financing to your clients or you are a real estate agent in California, doing all you can to help folks sell their homes and move on with their lives. You recognize where things are at, help your clients take advantage of all the tools available to them, and then simply do the next smart thing. That’s what I think anyway.
I am not sure if I should buy a Condo or Home in Iowa city.
Looking for help.
Hi Maxine,
There are pros and cons to both condos and single-family homes…
Condos are often ideal for young people on the go.. those who don’t have a large family and are consumed by their careers, without a whole lot of time to maintain their property and yard. Of course, the large majority of condo commmunities will provide landscaping services.
Single family homes are, as their name suggests, ideal for those with mid to large sized families. Most new homes are in neighborhoods with an HOA (this can be a good or bad thing!), and new homes are often far more spacious, offering front and backyards and a pool!
It’s hard to say what will suit you best, but I’m sure with a little bit of help from your real estate agent, you’ll quickly find the right fit for you.
Hi Maxine,
I am a Realtor from Iowa City. I have information that you should read about the Pros & Cons of buying a Condo vs. Home.
http://www.michaelmceleney.com/custom3.shtml
Please let me know if this helps.
Cheers,
Michael Mceleney