Is The Housing Market Actually Recovering?

Everyone wants to know if the housing market is truly showing signs of a recovery. There are

conflicting headlines every day. One day, we hear sales are up. The next day it is reported

that prices are down. Is the real estate market coming back? The answer is ‘yes’ and ‘no’.

 

There are two aspects that must be evaluated: house sales and house prices. They will not

recover at the same time. Sales are already increasing rather nicely while prices will still

soften in many markets through 2012.

 

Home Sales

The National Association of Realtors (NAR) issues a Pending Home Sales Report each month.

Sales have been increasing nicely over the last twelve months nationwide.  I have personally been in touch with Realtors

across the country who are reporting that activity has increased compared to last year. The sales

side of the recovery is starting to show great promise.

 

Home Prices

Many price indexes have shown that national home prices are continuing to stumble. Even

with demand increasing, we must look at where the supply of housing stock stands. Though

‘visible’ inventory (homes currently on the market) is shrinking, there is still a large overhang

of ‘shadow’ inventory (foreclosures about to come to market as a result of the National

Mortgage Settlement). This increase in inventory will outpace the increase in demand and

thereby cause prices to continue to soften in many parts of the nation.

 

Housing is coming back!  However, sales will come back before prices.

We will not see prices appreciate until we work through the oversupply of homes on the market.

 

HOMEOWNERSHIP…A TRADITION WE MUST PRESERVE.

 

 

About The Author

Jolie Powell

Jolie Powell has been a distinguised leader in the Real Estate industry since 1987. Prior to entering the world of Real Estate, she worked as a TV producer for the Advertising Agency, Dancer Fitzgerald Sample in NYC. Jolie's expertise in counseling buyers and sellers brings people together from Long Island, and indeed, Globally! Having lived abroad and traveled extensively, Jolie has an excellent understanding of many cultures. As a Cuban-born American, she is fluent in Spanish and communicates well with international clients relocating to the North Shore of Long Island. Jolie is proud of the high level of trust she and her clients have established and looks forward to continue building exceptional client/broker relationships.

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