We have looked at a lot of information over the past couple of weeks showing us that the housing market is finally in recovery. In order for a full recovery to have occurred, three things needed to happen:
1. Sales had to increase from where they were from the bottom lows.
2. Prices had to turn around.
3. Inventory had to reach a more normalized level.
The chart above shows us that in September of 2011, sales started to pick up. Prices increased around the middle of 2012, and in January of this year, inventory started normalizing.
During the dark times of the housing disaster, there were concerns that people were no longer going to believe in homeownership. Now however, with a recovery in full swing, it appears that people are becoming more positive again.
Here’s a quote that emphasizes this by Celia Chen, the Senior Director at Moody’s Analytics:
“The forces pulling the homeownership rate lower are past their apex. House prices are rising, but remain affordable at 21% below peak even as rents rise. Some who lost homes early in a crisis can now qualify again for mortgage loans. As housing recovers and consumers again see prices rising steadily, perceptions will swing back to favor homeownership.”
It’s great to have some good news in the world of real estate!