Is Real Estate Market Improving?
Is Real Estate Market Improving
The US economy continues to struggle in the wake of low gains and a threatening fiscal cliff, but in all the challenges facing most markets, analysts are trying to answer the question is real estate market improving? Actual figures still show an improving real estate market. Housing is in fact making significant contribution to economic growth in the country – an odd situation considering the tight spending going around.
There are several reasons why the answer to is real estate market improving could be yes. The real estate market is definitely starting to look up. This past fall has seen a more streamlined supply vs. demand, which is something investors in the last three years have struggled with. Foreclosures are slowly declining, and REO sale shares are also going down.
When foreclosures start to go down, then the market has an easier time absorbing the inventory without a huge shift in price.
Is the Housing Market Improving?
Buyers often have a lot working against them, but this time, those within the ‘rust belt’ and boom buyers as well have policies working for them to ensure they get lower interest rates for when they want to refinance their loans, which is a great way to reduce the number of future delinquencies.
Non-distressed sales haven’t seen higher numbers since back in 2008, which is a great positive impact on price and is a sure sign that things are looking up. Apart from these points, there are of course the obvious boosters to the economy, which could be the best year in real estate in recent times.
Some of the obvious signs of real estate growth are:
Reduced ‘for sale’ signs
These were everywhere just a few years ago, but if you’ve been paying attention, they’ve slowly started to vanish, and this is a direct reflection of increased buyers. When inventory is in excess, the price starts to go down, and that’s not always a good thing.
When the economy starts to make way for new jobs, you can rest assured the real estate market will respond. Unemployment rates still have a long way to go before people get comfortable, but there is significant movement. If people are getting jobs, then don’t worry about things like is real estate market improving or where people will get the cash from to buy a house.
Starters going fast
Starter homes are going much faster than they did a couple of years back. If a house stays too long on the market, then that’s not a good sign, but if that trend starts to change, then people are getting the answer they want to the question is real estate market improving.
Drop in distressed sales
Buyers in some cases almost always have to confirm whether the home on sale is a foreclosure or short sale. If sellers have equity and the market appears more stable, then they can put their houses on the market without much hassle.
Real estate agents getting hired
It’s actually quite interesting how real estate agents leave work in droves when the market is down, taking with them major real estate companies, but whenever the companies start to hire new blood, it means work is coming in and they need extra people. Look out for such activity to get an idea of what’s happening on the ground.
Fair interest rates- is real estate market improving
In case you haven’t been following, lenders are offering better loan rates for buyers, which means that lenders have more money to lend and buyers have more purchasing power. Times when financing is scarce, you will find the cost of lending will appreciate and fewer people will be comfortable getting loans.
The higher the percentage of people who qualify for a home, the lower the minimum income for applicants who qualify for a loan. With more entrepreneurs setting out to hire workers and spread wealth, you can always be assured of a budding real estate market because it takes very little effort on the economy for buyers to start fishing for homes.
If you spot them taking down the boards off a closed shop and new buildings coming up everywhere it means investors are seeing better days ahead and once that starts to happen, it creates a chain of events that lead to a huge surge in sales and an active market all over again.
If you are a potential buyer or seller and you’re going around asking is real estate market improving, you only need to look at these changes in the economy to know it’s getting better.
So is real estate market is improving, just in case you missed that, and there’s no stopping the zealous buyers who want to cash in on a constantly growing buyers market that could prove lucrative.