Uneven Bottom to the Housing Market?
The news of late has all been about the real estate recovery, signs of a turn-around, and boosts. Even the other day I wrote a blog on the frequency of multiple offer situations. Newer breaking news indicates that this long awaited recovery may be ‘uneven.’
As The Wall Street Journal explains in a recent article, “things aren’t getting better rapidly, but we’re also not in the ‘hold-your-hat’ declines of 2010 or the ‘spring that never materialized’ of 2011.”
It is a jolty ride. Home sales are up from last year’s levels, but there have been month-to-month slowdowns. Pending sales dropped in June by 1.4%, but on average they are up by 10% over this last year. Statistics regarding sales of existing homes reads the same.
What is causing this trend? Some hypothesize it is the sagging economic recovery. Others link unemployment and lack of wage growth to the anchored real estate market. Still more feel many are waiting for that moment when deals are astronomical—it is only then that they will enter the real estate market. For all of these reasons (or perhaps none of them) we are in a very interesting market trend. So hold on for the wild ride!
Source: “Is This What a Housing Bottom Looks Like?” The Wall Street Journal (July 26, 2012)