You read the economic reports from NAR (National Association of Realtors) Cheif Economist Lawrence Yun, you listen to speaches on C-Span from economist like Jim Carr on the U.S. Market & Foreclosure, and you gather your own synopsis of the current housing market status.
Analyst generally consider a six month supply of existing homes to be a healthy balance of supply and demand. More than that indicates that sellers significantly out number buyers, which, puts a downward pressure on prices, thus making it a buyers market.
Yun has said that mortgage interest rates have been at a record low this year while rents have been increasing at faster rates. These factors continue to unleash a pent-up demand.
Mortgage purchases and new constructions are up, however 70% of those mortgage purchases are tied to mortgage refinances. So the picture isn't as bright as it seems initially. The economy is still in a very precarious position.
Our housing market is in a much better place than it has been since 2006. That is no doubt. It could continue to increase to a more normal range if the job market improves. This will allow the opportunity for an increasingly equal supply and demand.
Author:Jeremy Flax Phone: 615-582-0909 Dated: August 29th 2012 Views: 8,491 About Jeremy: ...
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