Forbes: 4 Signs the Housing Market is Improving
Posted August 24th, 2012 | by The Update
They recently quoted CoreLogic as saying, “While the general U.S. economy continues to struggle to make gains, for the first time since the end of the recession, housing may actually make a significant contribution to economic growth in 2012, a welcome change to affairs for an otherwise struggling economy.”
Here are their 4 reasons why the housing market is on the up:
- This fall, the housing market may avoid the slide that has occurred each of the last three years because of an improving balance between supply and demand, declining REO sale shares and a slowly declining foreclosure inventory.
- A lower likelihood of foreclosures flooding the housing market is beneficial because the market is more likely to absorb the inventory without dramatic changes in price.
- Many borrowers in both the boom and “rust-belt” markets lack the means to prevent serious delinquency due to their limited ability to refinance at a lower mortgage interest rate. Policies designed to offer options for borrowers to lower their interest rates further can help decrease the flow of future delinquencies.
- The current share of non-distressed sales is at its highest level since August 2008, positively impacting home prices, and is a sign of real improvement in the housing market. (as seen on Forbes)