Recovery in the Housing Market?

March 16, 2012 / Russell Legato, Residential Property Analyst

Housing market recovery is a phrase everyone in the real estate industry hopes to hear. The number of homes under foreclosure is continuing to slow the sales. It is hard to secure a mortgage. It is also difficult to refinance a mortgage. Florida has been one of those states hardest hit.

Recovery in the Housing Market?

It is suggested that the housing market in the United States is improving now. One stock market expert suggests buying shares of Lennar, KB Home and Toll Brothers since the improving housing industry will make them a beneficial buy. The buyers could expect positive appreciation. These stocks have already gone up by 16 percent.

Another promising factor is that foreclosure rates have declined 27 percent in the last quarter of 2011 as compared to 2012. Whatever the reason (it is proposed that the banks are now foreclosing on fewer homes), it is a positive sign.

Improvement will continue, partially because the number of foreclosed houses is diminished. Warren Buffet, unarguably a financial genius, calls new houses cheap. He meant it in a good way. Areas with high numbers of foreclosed homes will not fare as well as those that were not hit as hard as Washington D.C. for example.

Areas that were hard hit, such as Florida, California and Arizona will possibly take the rest of the decade to recover completely.

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