It’s finally happening after several years of strife — citing encouraging growth numbers, economists everywhere agree that the housing market is finally improving. The slowed economy can’t really point at the real estate industry to blame anymore.
The Wall Street Journal is reporting that almost seven years after the housing bubble burst, home prices are finally pointing upward. Though they’re not as high as they have been, they are still a huge encouragement for sellers and real estate professionals.
We’ve already reported about how new-home sales made a huge jump in May, but existing-home sales also shot up considerably. As a matter of fact, 10% more existing homes were sold in May of 2012 than the same month the prior year, and many of them were purchased by investors who plan to rent. This is good because when investors are confident in their purchases, home buyers will be too!
In recent years, housing prices would go up but then the overabundance of vacant homes would cause them to fall again. Economists say that this year we won’t see that trend; the number of vacant homes available is currently at its lowest point since 2006, which means rising home prices won’t need to fall in order to make up for the difference!
Unfortunately, we still have a long way to go in order to obtain some sense of “normalcy” in the housing market. But these numbers prove that this is not an impossible feat!
To see how the numbers break down even further, check out the Wall Street Journal’s article here.
Have you seen improvement in your market? Comment and let us know!