home prices may well find a bottom this year.

By
Real Estate Agent with Re/Max 10 New Lenox Illinois

SIGNS OF RECOVERY IN THE FOR-SALE MARKET

The joint center for housing study at Harvard University reports

The for-sale housing market remained depressed for much of

2011. House prices in most areas continued to slide, sales were

lackluster, and single-family construction hit a record low.

But as the year ended, steadier job growth and improving consumer

confidence boosted sales of both new and existing homes

 

 

With demand reviving and inventories of homes for

sale depleted, home prices may well find a bottom this year.

Moreover, stronger sales should pave the way for a pickup in

single-family construction over the course of 2012.

Nevertheless, a number of conditions may keep the recovery in

the owner-occupied market relatively subdued. The backlog of 

roughly two million loans in foreclosure means that distressed

sales will remain elevated, keeping prices under pressure.

Another 11.1 million homeowners owe more on their mortgages

than their homes are worth, which dampens both sales of new

homes and investment in existing units. And despite recent

declines, the number of vacant homes is still well above normal,

limiting demand for new construction in many markets.

What the for-sale market needs most is a sustained increase

in employment to bring household growth back to its longterm

pace. But the persistent weakness in homebuilding has in

itself hindered a strong rebound in hiring. From 2006 through

2010, residential fixed investment pulled down growth in gross 

domestic product (GDP) in all but three quarters, two of which

benefited from targeted tax credits. Since 2011 began, however,

home construction and improvement spending have made a

positive contribution to GDP in four out of five quarters. With

multifamily construction already on the rise, even modest

increases in the number of single-family starts—together with

stronger sales of existing homes and associated investment in

improvements—will bolster economic growth and, in turn, the

housing sector.

So that I don't overwhelm you with so much information, I will continue

this significant report in my next blog.  Just think of it as a blogopera - lol

 

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Rainmaker
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Winston Heverly
Winston Realty, Inc. - Atlantis, FL
GRI, ABR, SFR, CDPE, CIAS, PA

Here it looks like they are on the upswing and no longer falling. the only ones that may are between 500k and 2 million.

Aug 10, 2012 01:30 PM #1
Rainmaker
238,276
Dale Taylor
Re/Max 10 New Lenox Illinois - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

Winston it is good to see you are keeping track of the home prices in your market!

Aug 10, 2012 01:39 PM #2
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Rainmaker
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Dale Taylor

Realtor = Chicago Illinois Homes Townhomes Condos
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