The economists are predicting that President Obama will step up to aid housing market improvement. The components necessary for a housing recovery are lower prices on existing homes and the low mortgage rates currently available. Home ownership may be cheaper than renting since rents are on the increase.
The factors preventing a housing recovery are the excessive number of houses on the market due to foreclosures and those families who can’t maintain the cost attached to home ownership. Qualifying for a mortgage is more difficult and a 20 percent down payment is generally required.
Economic experts are asking that President Obama consider doing more to promote home sales. More houses were sold in December and the number of houses on the market has gone down. Existing houses for sale are lower in number than they have been since 2006. It has still been a difficult year in real estate.
However, the grim expectations of many economists did not play out and 4.26 million sales were concluded. This was 1.6 percent higher than were sold in 2010. The outlook is still not optimistic due to the deluge of foreclosed homes still available for sale.
Sale prices continue downward with a median amount of $164,500. Analysts say that increased sales are due to investors buying up foreclosed homes at bargain basement prices. While this will aid housing market figures, it is when the prices on individual homes rise that we can begin to say the word recovery.