Tags: Housing | market | turning | around

Survey: Housing Market Is Turning Around

By    |   Wednesday, 03 Oct 2012 02:03 PM

Believe it or not, the housing market is finally turning around.

And it's not just real estate agents saying that. Of the 14 economists answering questions about home prices in a recent CNNMoney survey, nine said home prices have increased or will increase this year. Just three months ago, half of the economists polled said prices would not start rising until 2013 or later.

The economists in the survey noted the good news in the data for housing markets. For instance, the Standard & Poor’s/Case-Shiller home price index reported three straight months of rising home prices, and sales of existing homes, home construction and prices of new homes being sold have all increased.

Editor's Note: The Truth About the Economy — Government Documents Lead to Eerie Conclusion

Plus, the Federal Reserve will help keep mortgage rates low by buying large sums of mortgage-backed securities in its third round of quantitative easing.

Housing was a drag on the economy during the recession and subsequent feeble recovery, but it's been adding to gross domestic product since the fourth quarter of last year, according to CNNMoney.

A housing turnaround will attract more buyers who were waiting on the sidelines, the economists said. Many potential homebuyers with the credit and income needed to qualify for loans have been postponing purchases because they were worried about falling home values.

In another indication of a recovering housing market, the typical amount of time it takes to sell a home is now within the historic norm, according to the National Association of Realtors (NAR).

The median time a home was listed for sale on the market was 69 days in July, down almost 30 percent from 98 days in July 2011.

“A notable shortening of time on market began this spring, and this has created a general balance between home buyers and sellers in much of the country," stated NAR Chief Economist Lawrence Yun. "This equilibrium is supporting sustained price growth.”

NAR predicts that the median existing home price will increase 4.5 to 5 percent this year and about 5 percent in 2013, which is somewhat stronger than historically normal.

Editor's Note: The Truth About the Economy — Government Documents Lead to Eerie Conclusion


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Believe it or not, the housing market is finally turning around. And it's not just real estate agents saying that.
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2012-03-03
Wednesday, 03 Oct 2012 02:03 PM
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