New Developments In The Housing Market

There’s no questioning that the housing market has taken a downturn. However, like all dips in the real estate market, this one will pass -- and it seems to happening sooner than later. Despite the amount of negative press on the housing bubble bursting, there are some positive signs that point towards a brighter future.

Facing the Facts About The Housing Market

The National Association of Realtors stated the median home prices in 2007 dropped by 5.8 percent, with total sales plummeting to 21 percent below what they were in 2006. These are some pretty grim statistics, implying that this housing crash is going to continue for who knows how long. If you stop to think that this comes after six years of unprecedented sales, then it’s only natural for the market to take a downward turn after some time. You can’t stay on top forever, but you can certainly get back there.

Good News About The Housing Market

Despite facing an economic recession and housing crisis, there have been sales made across the country, particularly in areas with steady job growth and affordable housing. The most expensive real estate is still holding strong in areas like New Jersey and Silicon Valley, while other communities in California, Florida and Arizona still have buyers in spite of record short sales and foreclosures. About half of the 150 real estate markets reported price gains during the last year, while mortgage rates are still in the five percent range, which makes them some of the lowest in the past 50 years. These low rates are definitely get people buying again.

More Good News About Real Estate Developments

On top of that, the Federal Reserve is committed to lowering the short-term rates to encourage people to continue buying and stimulate the economy. Plus, there are higher mortgage maximums starting in March, so first-time buyers will have a better shot at purchasing property in expensive areas such as California. The lowered cost of homes coupled with low interest rates will generate some fresh buyers and get unsold homes off the market.

There is an arduous, uphill battle that the real estate business needs to prepare if they have yet to do so. However, there is indeed hope for the future. Of course, sales will not increase dramatically overnight, but a slow upturn will occur sooner that we think.