Is There Room for Further Expansion in the Real Estate Sector?

Positive news is flooding the news surrounding the real estate market. But is this a trend that can 1) continue and 2) is it all good news? These are key questions that are being asked by economists, homeowners, investors, banks, and construction firms. Single-family starts are up 71%. Sales of exists home are up 42%. The number of foreclosures are down 43%. Those are the good positive numbers making headlines. But each of those stat’s counter numbers are equally relevant and not at all talked about. Single-family starts are down 67% from their peak. Total home sales are down 34%. Prices are down 37%. Foreclosures have increased threefold since pre-bust lows.
From an activity perspective, it’s reasonable to think housing and construction will be the fastest-growing segment of the economy over the next three to five years,” said Joe Davis, chief economist of mutual fund giant Vanguard.
The take-away from seeing both sides of the statistical numbers—our housing market recovery being boasted about is modest at best. This is not to undermine that there is improvement. But those looking to enter the real estate market deserve the full picture of both the really positive news and the realistic statistics.


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