The New Normal?

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Mortgage and Lending NMLS#247664 BRE#01266511

When markets are normal, builders build. And that’s exactly what’s been going on lately. According to theCalifornia Building Industry Association, new housing starts are up year-to-date with 61,361 new single- and multi-family units.
This uptick in building starts signifies a stabilized housing market. But is this as good as it gets? Is this the new normal?

The fact that the National Association of Homebuilders (NAHB) Leading Markets Index (LMI) for Orange County is back to a level not seen since December 2008 leads us to believe that, if it’s not the new normal we’re certainly getting close.

The NAHB says that while recovery is still happening (albeit slowly), one in every six metros is back to “normal.” And a solid 66% of markets are showing year-over-year improvement. This progress isn’t just happening in other parts of the nation. In fact, two Cali metros— Los Angeles and San Jose— made it onto NAHB’s Top 10 LMI list. And with nearly half of all the 350 major metros on the list showing improvement since August, housing’s outlook is perking up.

However, not everyone believes housing is back to its old, cheerful self. In a recent Zillow survey, 40% of respondents said they thought it would take 3-5 more years for housing to reach full recovery status. So while only time will tell if housing has reached its norm, one thing is for sure…key indicators like construction starts are showing it’s heading in the right direction.

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Rainmaker
800,119
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Maureen - It's difficult to determine if we are back to normal unless we know what normal we are referring to. If we are looking back at 2006-07, we are not back there yet, but we are a lot better off than we were in 2008-10. I think we will be experiencing a new normal as we progress.

Jan 10, 2015 12:11 PM #1
Rainer
16,146
Maureen Martin
San Diego, CA
it's not just a loan, it's an experience!

Hi there Troy, I believe that it depends on the market.  Here in San Diego, I'm seeing properties selling for higher than their peak back in 2006 which I honestly find INCREDIBLE given the short amount of time since the 'meltdown'.  I find it interesting to watch and can only hope that we continue on this positive trend!  :) 

Jan 14, 2015 03:57 AM #2
Rainmaker
536,770
Mark Don McInnes, Sandpoint
Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Hello Maureen,  My area still is showing discression in purchasing even with the lower inventory.  Buyers are not just saying that if they can not find it they will go ahead and pay the inflated price.  They saw what happend all too recently and it cut deep.  Mark

Feb 07, 2015 05:53 AM #3
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Rainer
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Maureen Martin

it's not just a loan, it's an experience!
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