Notes and Opinions from one of Arizona's Most Trusted Loan Teams

Hopes Rise That US Housing Market Recovery Has Begun

There are hints that the American housing market may be starting to recover. The newest good sign occurred on June 26, when a measure of current home sales released by the National Association of Realtors (NAR) revealed a 2-percent gain in May to a yearly rate of 4.99 million units. Additional gains in the rate of current home sales are being predicted for the coming months, after an NAR report earlier in June on upcoming home sales revealed an unexpected 6.3-percent rise. "The worst of it is behind us," claims Global Insight economist Patrick Newport. Other economists, however, are still doubtful that the American housing market has hit a turning point and is on its way out of the doldrums. Some believe the recent improvement in house sales figures has been mostly caused by vast "fire-sales" of houses in foreclosure in badly impacted regions, which could wind up hurting prices more than helping them. In addition, the supply of unsold houses throughout the nation, which would have to decline as the housing market gets stronger, has stayed high at roughly 10 months' worth of supply. Lastly, the recent increase in fuel costs could further decrease demand for houses in outer suburban regions.
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From "Hopes Rise That US Housing Market Recovery Has Begun"
Financial Times (06/27/08) P. 4; Politi, James

Those of us who have devoted our professional lives to housing American families certainly hope the positive outlook is warranted. What we are seeing at our level is that folks who were completely priced out of the market 3 years ago are back. They can once again afford to own a home in Arizona.