Housing Market is making that turn can you feel it?

By
Real Estate Agent with Howard Hanna - Avon Lake, OH 2006004434

If you're waiting for home prices to go up, then you're missing signs the troubled housing market has finally turned around.


FORTUNE – Over the past few months, many economists have concluded that that the U.S. housing market has reached a turning point and is healing. This may sound hard to believe, since home prices have continued their downward trend. In 2011, prices fell by 4% following nearly a 30% decline since the property bubble paeked in June 2006. They ended the year at a 10-year low.

Indeed, prices aren't likely going to rise for a while. But this might not necessarily mean the housing market isn't on the mend. Perhaps we're looking at the recovery all wrong, says Paul Dales at Capital Economics. In a report to clients recently, the economist said higher prices won't be the sign that tells us there's a realrecovery under way. Rather, the recent pick-up in sales is what we should pay attention to.

After all, prices tend to be a lagging indicator. It could take six months for any improvements to show in the market, if not longer.

"Even if the asking price is at the right level when the home is first listed, it may still take a few months to find a buyer and another month or so before the contract is closed," Dales wrote to clients last week. "The selling price that is registered at the end of this process therefore relates to the market conditions somewhat earlier."

Sales have risen recently, reaching a few milestones.

In 2011, existing home sales climbed to 4.26 million – higher than the 4.19 million sales in 2010. Needless to say, this is far below the market's peak of 7.1 million sales amid the housing boom in 2005. But it's worth noting that for the past two years, sales have crept up from the market's low of 4.1 million sales when the market collapsed in 2008. In particular, in the past six months, total homes sales have risen by 13% as borrowing costs for home mortgages continue to fall to record lows and investors making up the bulk of sales find opportunities in heavily discounted properties after foreclosures and short sales.

And a series of home sales data released later this week is expected to show that home purchases probably climbed in February to their highest level in nearly two years, according to forecasts in a Bloomberg survey. Sales of new and previously-owned properties combined are expected to rise to an annual rate of 4.93 million – the strongest since May 2010, and up from 4.89 million in January.

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Stanley Stepak Jr. M.A.

Realtor

Howard Hanna - Gold, Avon Lake, Ohio

440-476-0234

Check out my profile at:stanleystepak.howardhanna.com              

Email me at stanleystepak@howardhanna.com  

Homes for sale in Avon Lake area are most sought after because of the superior schools, community activity and recreation, and park like setting this community offers. .If you are planning on buying, selling or relocating in the Avon Lake area, please give me a call as your Avon Lake Realtor.  I would be more than willing to help you with all your Real Estate related needs.

 

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Rainmaker
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Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Stan, prices are bouncing around and will be the last thng to have a meaningful trend, but we are also seeing evidence of a housing recovery here our area.

Sharon

Sep 08, 2012 02:15 PM #1
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Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Stan, I can feel it. In July, Franklin TN exceeded 200 units sold in one month. It has been 5 years since we've done that and August sales were also higher than those reported 5 years ago. I am very encouraged. I am having my best year since coming into the business in late 2007. I think 2013 is going to be even better.

Sep 08, 2012 02:31 PM #2
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Stan, yes, market is turning around, heating up etc etc.....

And that means Happy Days Are Here Again...

Sep 08, 2012 02:32 PM #3
Rainmaker
1,007,798
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Stan:  This turn-around is so good to see, especially when it is having such a positive effect on all my friends in Northeastern Ohio.  Several of my Realtor friends "back home" in the Mentor area say that things have picked up.

Rates are great, and all that pent-up demand is finally starting to let go!

Go Cavs!

Sep 08, 2012 02:32 PM #4
Rainmaker
1,126,259
Gary Frimann, CRS, GRI
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

I can see and feel the turnaround in Silicon Valley.  We are again seeing multiple offers and higher than asking sales prices.

Sep 08, 2012 03:00 PM #5
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MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Yes it's finally making a u-turn away from 2007, Housing Market is making that turn can you feel it?

Sep 08, 2012 05:24 PM #6
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Stanley Stepak

Realtor - Avon Lake, Avon, Bay Village, Westlake,
Looking to sell or buy a home in the Avon Lake area
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