Has the Housing Market Really Recovered?
The answer to this question seems to be a resounding “yes.”
In most housing markets around the country prices have surged some 8 to 10% over the past year, and that’s a good thing for home owners. It also bodes well for the general creation of wealth in our economy.
Housing Prices on the Rise
A recent article in the New York Times cited that the Standard & Poor’s Case-Shiller home price index posted the largest gains in seven years. Builders have also been encouraged and the number of building permits has surged along with home sales.
Factors that are helping to fuel the recovery include:
- A boost in consumer confidence, which has recently reached a five-year high.
- A healthier stock market with the Dow Jones closing at over 15,000 for the first time this month.
- A slight decline in gas prices.
- Historically low mortgage interest rates.
The rise in home values is helping current home owners to feel better about their overall financial health. This, along with other factors, is putting consumers in a better frame of mind making them more inclined to open their wallets in a number of areas.
More locally - Massachusetts
According to the Warren Group home prices in Massachusetts are up 8 per cent from the same time last year.
That’s the good news.
The flip side is that the number of sales is actually down from last year and it is due to one factor - not enough houses on the market.
Low inventory has been a problem all over the country and Massachusetts is no exception.
A perfect storm for sellers
The combination of increased consumer confidence, better employment numbers and the continuation of low interest rates has created a perfect time to sell a home.
Home owners who have been on the fence about listing their properties need to come to terms with the fact that now is the right time to make a move. There are actually home buyers who are out there looking.
They are simply starving for more inventory!
Copyright 2013 "Has the Housing Market Really Recovered?"
This post was written by
Claudette Millette, Broker, Owner, The Buyers' Counsel - (508) 881-6230
An Exclusive Buyer Brokerage serving the Greater Metrowest area