Housing Market Seeing a Surge Towards Recovery This Spring

July 03, 2012 / Russell Legato, Residential Property Analyst

The majority of those surveyed think the housing market recovery is happening this spring season. The second largest group expects it to be 2015 or later before a full recovery is achieved. Every economist has his or her eye on the housing market and the job growth numbers. It is true that there is a lot of activity in real estate right now, but keep in mind that this is the traditional busy season for that industry.

Housing Market Seeing a Surge Towards Recovery This Spring

Month-to-month changes are not enough to point to any trend. It is what happens each year that really tells the whole story. No one should avoid purchasing a home now, for any reason. There are favorable indications that it is a good time to do so.

For example, although prices are rising in some specific areas of the country, decreases in property values still prevail in many other locations. In some states, California for one, there are pockets of neighborhoods where the price has increased again. These are mainly luxury homes carrying a high price tag.

Not too far from those you will find homes with reasonable and even exceptionally low asking prices. The same is true in Florida, with Miami carrying high listing prices, and other areas still quite depressed. Foreclosures are still crowding the market and some can be found for a bargain basement price.

The principles of supply and demand are definitely in play at this time. It is still a buyer’s market. Good deals are found for buyers in most locations.

How easy is it to obtain loan approval for a mortgage? If your credit is spotless and you have a twenty-percent down payment, there will be no problem. In other cases, bankers are being quite hesitant to grant a loan. For those who are approved for a thirty-year mortgage, the interest rate can be well below four-percent. But, higher rates are looming on the horizon and today buyers should consider locking in the historically low rate.

Now, those low interest rates will succeed in reducing the monthly mortgage payments putting  home ownership within the reach of more people. It is a juggling act to determine if now is the time to get the best bang for your buck and the lowest interest rate possible. Once they start to increase, it may be too late

As for those buying properties as an investment, the will see capital gains on their money. In some of the more rapidly recovering areas, bidding wars have erupted. Economic growth might still be slow, but, with the job market improving, things are definitely getting better.

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