Listening to the Experts
July 24, 2012
Just google "Housing Rebound" and you will be able to sample the experts' opinions on whether or not the housing market is recovering. Some say yes, it is gaining; some say no, too many upside down homeowners.
Based on the data that is showing up in our local markets, it does seem as though we are turning the corner. We are still in a rather up and down market, but certainly the volume of sales has increased. The experts who have access do lender data are proably correct that the number of upside down home owners is still in the millions. However, I heard on the radio this morning that a number of homeowners who were upside down a year ago are no longer upside down as market prices in their areas have risen. I do believe that in our area prices still have a long way to go before those 100% loan to value properties bought from 2005-2007 will have much, if any, equity.
I heard two experts yesterday on the Bloomberg TV "Market Rewind". program. They were quite pessamistic and continued to cite the "shadow inventory" of bank owned properties. This "shadow inventory" has been a constant in all the experts who have the opinion that recovery in housing is a long ways off. I suppose that when recovery will occur depends on how one defines "recovery". Those of us in real estate sales look to volume as a sign that recovery is beginning. Homeowners probably look to prices rising as to when recovery occurs. Other market watchers look to data on foreclosures, new construction, new loan applications and other data.
For most folks, watching what is happening in their local areas is a good way to track recovery.
Just google "Housing Rebound" and you will be able to sample the experts' opinions on whether or not the housing market is recovering. Some say yes, it is gaining; some say no, too many upside down homeowners.
Based on the data that is showing up in our local markets, it does seem as though we are turning the corner. We are still in a rather up and down market, but certainly the volume of sales has increased. The experts who have access do lender data are proably correct that the number of upside down home owners is still in the millions. However, I heard on the radio this morning that a number of homeowners who were upside down a year ago are no longer upside down as market prices in their areas have risen. I do believe that in our area prices still have a long way to go before those 100% loan to value properties bought from 2005-2007 will have much, if any, equity.
I heard two experts yesterday on the Bloomberg TV "Market Rewind". program. They were quite pessamistic and continued to cite the "shadow inventory" of bank owned properties. This "shadow inventory" has been a constant in all the experts who have the opinion that recovery in housing is a long ways off. I suppose that when recovery will occur depends on how one defines "recovery". Those of us in real estate sales look to volume as a sign that recovery is beginning. Homeowners probably look to prices rising as to when recovery occurs. Other market watchers look to data on foreclosures, new construction, new loan applications and other data.
For most folks, watching what is happening in their local areas is a good way to track recovery.
posted by shirley harry at 8:25 AM
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