Although the real estate market for commercial properties is picking up, the single-family housing market was only beginning to see an increase. Then, February 2012 saw a housing marketing pothole that affected the sale of U.S. residential properties. A report by the National Association of Realtor’s claim there was a pause in what was a strong start to the upward trend in 2012.
It is possible home sales of existing properties will continue the increased trend in spite of the temporary slump. Federal Reserve Chairman Ben Bernanke commented on employment and its effect on home sales. More jobs will result in more sales.
The pothole is still in effect due to the glut on the real estate market in the form of foreclosed homes, which are available at unusually low sale prices. Another reason is that home loans are still difficult to be approved for. Twenty percent down payments keep many from meeting qualifications for a mortgage loan.
A senior economist with BMO Capital Markets in Canada stated that if the job market continues to improve, the real estate housing market will not hit another housing market pothole in the next few months. In spite of a decrease in many regions in February, the Midwest saw an increase of 6.5 percent. If the job market continues to improve, the rest of the regions may follow suit.