Housing Market Analysis (part 2)

Okay, so we know now that the past can be a good predictor of future events.  Today NAR released its Pending Home Sales numbers and the results showed a gain for the fifth consecutive month.  Housing markets, unlike Stock markets, show predictable patterns and trends.  ie, once a housing market start a positive trend the trend usually continues (as history shows us).  So with this being said, I would prepare for a return to equilibrium in housing.  If you are concerned about buying a home and it dropping 20% after you purchase it, look at history as your example and breathe a sigh of relief.  Locally, in Anne Arundel County your market has showed the same positive trends and we are actually starting to see a RISE in prices in certain areas.  So if you are a 1st time home buyer, you should anticipate paying MORE for a house next year, compared to this year.  Happy House Hunting, and if you would like your local economist to help you find the right home, drop me an email at jnewman@kwflagship.com.