Radical Housing Market Pick Up

March 15, 2012 / Russell Legato, Residential Property Analyst

The housing market usually is slow for real estate sales according to one realtor. However, 2012 is contradictory to that rule. It was in the first week of January 2012 that things picked up in a radical way. At the agency located between Los Angeles and Orange County. Optimism is taking over where the situation in housing sales has been bleak.

Radical Housing Market Pick Up

Since the 2005 peak in the housing market, it was a depressed market. There was an upturn in 2010. However, it is attributed to the tax credits granted to first time buyers. The tax credit of $8,000 was the impetus and when it ended, so did the upturn.

Late 2011 brought some renewed activity. Sales of existing homes reached the highest since May of 2010. One mortgage broker reports closing fifty loans in February of 2012. Over twenty-five of those loans were for buying houses. This is quite a difference when compared to closing less than thirty loans in a month in February of 2011.

In Florida, the state that was gravely affected in real estate transactions, sales are up fifty percent compared to one year ago. One agency reported losing 200 real estate agents a year ago. Now the number has increased by eighty agents.

The stock market is credited with the radical change in the housing market, one industry expert reports. People feel safer about investing in a home. Another factor is the decreasing unemployment rate. Interest rates are still at four percent. They will begin to increase sooner rather than later and people seem to sense that fact.

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