Health of the real estate market – Improving status and the outlook
Most of the cities and states have been showing signs of improvements with regards to their real estate market. Though there are some mixed reports as to the improvement in the real estate and mortgage market, in general it can be said that the market has started to improve at least by some levels. The health of the real estate market and the recovery actually depends on various things. One amongst these is the labor market and its health. Just as there was seen some decline in the rate of unemployment,
the real estate market too has shown improvements. So, if you are planning to take out a mortgage, other than using a home mortgage calculator to decide your affordability, you should also be aware of the current mortgage market.
The real estate market outlook
The real estate market has gone through a lot in the past few years. The immense volume of foreclosures and short sales which have been flooding the real estate market after the recession had resulted in the downward growth of the mortgage industry. The relaxed process for qualifying for the mortgage loan shows that there have been some forms of artificial inflation. In addition, there have always been an overall consideration that the equity that may have built up in your home is that something on which you may be able to borrow some money and also spend it as per the requirements. The actual reasons with regards to the collapse in the real estate market have always been debated for all of these years.
By the end of June 2012, the median home prices are expected to fall by a further 3.6%. According to Michael Orr, Analyst and Author of The Cromford Report, – “The idea that average Phoenix home prices are falling is a myth. The price bottom occurred on September 15, 2011. For three months now home prices have been on a strong and clear upward trend.”
According to the recent reports, and according to numbers shown by the IMI or the National Association of Home Builders/First American Improving Markets the improvement more less have occurred in at least thirty-five states. If the improving real estate market is to be considered, these metros are seen to have shown really great improvement statistics. In addition to this, the housing permits and employment and the details of the home prices based on the reports of the past six months are to be considered too.
The particularly current entrants with regards to the different areas including some of the metro areas are those of Coeur d’Alene, Idaho; Huntington, W.Va; Greenville, N.C.; Brownsville, Texas; St. George, Utah and so on.
In addition to the above, there also seems to be a high form of stabilization in the market with the market index beginning to reach a flat statistics. Furthermore, the affordability of the people too is on the rise. So, with the low interest rates on the mortgages and the rising affordability of the people, there is supposed to be a greater and positive growth in the real estate industry in the coming years.
This article was written and provided by guest writer Sophie Kinsella.