Is the Housing Market About to Spring Back
It seems that there is a lot of activity out there. Buyers are looking at homes and properties consistently. There are multiple offers not only on bank owned and short sale properties, but also on the standard listings. Many homes are selling over list price.
One thing is for certain, there is a shortage of listings, not only in Southern California, but throughout USA.
This is a good sign. This does not mean that the prices will jump back up any time soon. When buyers are buying and there is a shortage of housing inventory, prices should at least stabilize. As more of the inventory that has been on the market sells, and as there is less and less inventory on the market, the prices should then rise. It should be fair to say that 2012 will be the year that home sales start to climb again.
The only uncertainty now is how much of the so called Shadow Inventory with the banks is out there and when will those homes hit our local markets.
Over the past thirty days, more and more experts are saying the same thing.
Jamie Dimon, JPMorgan Chase CEO
“I believe we’re very close to the inflection point. People look at prices that are still coming down but all the other signs are flashing green… You could come up with a pretty bullish case (for housing).“
Frank Nothaft, Freddie Mac chief economist
“Even the housing market is showing some signs of shaking off the depression-like conditions that have plagued it for much of the past few years.”
“Stabilization in U.S. housing fundamentals is creating an attractive investment opportunity. Many of the ingredients are in place for continued improvement in housing.”
Lawrence Yun, NAR chief economist
“If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.” as mentioned in KCM Blog.
I would be curious to find out what your thoughts are on this.