4 Positive Facts About the Real Estate Market! But More Pain Coming?
Reversing Real Estate Market? by our Real Estate Expert Tom MartinsonCase-Shiller index reports that home prices have reversed course and are finally rising again — some say: We have truly turned the corner here. Case-Shiller has been the gloomiest, scariest-headline-producing monitor of the real estate market for the past three years.
Not only are home sales up,
new housing starts are up,
new permits are up, and
now the last of the doomsayers say that home prices are moving up.
Is More Pain Coming?
While many indicators are showing signs of life in the U.S. housing market, remember on a year-over-year basis home prices are still down about 17 percent on average across all metro areas. So most likely, we have a ways to go before we see sustained home price appreciation.
In addition, unemployment is still rising, which will generate more foreclosures. Many economics say a housing recovery will not happen until we have a job recovery.
A few Things are for Sure…
- Housing has reduced in value by 20-60% over the past 3 years.
- More first-time homeowners and investors are buying real estate, especially at the low end of the market -competition is getting stiffer.
- Real Estate Sales are up for the 5th straight month and housing prices are up for the first time in 3 years.
- Interest rates are still very low – almost at historical levels
- Real Estate Cycles are, and always will be very Regional
- Always buy real estate to generate positive cash flow and as a hedge against inflation
Always positive,
Boomer54
Mark
