Housing Market: About to SPRING Back

Reblogger Phil Leng
Real Estate Agent with Keller Williams Eastside Market Center

Home Sales...

Home Prices...

There is a lot of buzz in the news about these two topics. Home sales are clearly up across the country. In our area there are multiple offers on entry level houses in good condition that are priced right.

Home prices have probably hit bottom. Buyers are out. Larry quotes some top level sources for his conclusions.

Original content by Laurence Paruta

Housing Market: About to SPRING Back

I firmly believe that 2012 will be the year that home sales start to climb again. Over the past thirty days, more and more experts are saying the same thing.

Jamie Dimon, JPMorgan Chase CEO

“I believe we’re very close to the inflection point. People look at prices that are still coming down but all the other signs are flashing green… You could come up with a pretty bullish case (for housing).

Frank Nothaft, Freddie Mac chief economist

“Even the housing market is showing some signs of shaking off the depression-like conditions that have plagued it for much of the past few years.”

Goldman Sachs Group

“Stabilization in U.S. housing fundamentals is creating an attractive investment opportunity. Many of the ingredients are in place for continued improvement in housing.”

Lawrence Yun, NAR chief economist

“If activity is sustained near present levels, existing-home sales will see their best performance in five years. Based on all of the factors in the current market, that’s what we’re expecting with sales rising 7 to 10 percent in 2012.”

Having said that, I want to make sure that my readers realize that it will still take time for prices to begin to appreciate. Pricing is about supply and demand. Though demand is increasing, there is still a large supply of homes for sale in many markets and the National Mortgage Settlement will probably mean over a million distressed properties (foreclosures and short sales) will enter the market this year. Two major surveys spoke to this point in the past week.

The Home Price Expectation Survey asked 104 leading industry experts where they thought prices would be at the end of 2012. The average of those opinions showed that the experts believe prices will depreciation by about one percent (.72%).

The Urban Land Institute released results from their survey also. In their report, 38 leading real estate economists/analysts, representing major real estate investment and research firms, felt that prices would remain flat throughout the year.

Demand will increase dramatically this year. However, it won’t drive prices upward because of the supply of inventory for sale in most markets.

Laurence Paruta    
Carl Laurence Realty Group
(formerly Pathfinder Realty Group)
Cell: 908.251.7996 
Fax  908.502.5164
Email Larry@NJPropertyOnline.com
Web  www.NJPropertyOnline.com
RE/MAX Competitive Edge  177 Washington Valley Road  Warren, New Jersey 07059

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the graph to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Comments 3 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the house to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
129,092
Lucy E. Thompson
Keller Williams Realty Premier Properties

I guess we will see what happens when the job numbers come out this morning.  Hopefully it will be good news.

April 06, 2012 04:22 AM
Anonymous #2
Anonymous
Anonymous
Great blog and great job. Keep up the good work and god luck to you this year. Thanks.
April 06, 2012 04:24 AM
Ambassador
777,101
John McCormack
AlbuquerqueHomes.com
Albuquerque Homes Realty * www.AlbuquerqueHomes.com

My two cents worth is I see the market in Albuquerque and Rio Rancho NM picking up.  Buyers are out and they are indeed buying!  Good news for all.  Wishing you all a wonderful Easter weekend.

 

April 06, 2012 07:52 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the chair to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
568,777

Phil Leng

Phil Leng Team - Residential Real Estate Experts &
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the world to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Contact Me
Interested in selling your home? Contact me to get a professional estimate.
Profile picture for philleng
Phil Leng
Call: (206) 409-6600
My Kirkland Real Estate Listings on Zillow
Real Time Web Analytics try{ clicky.init(66452083); }catch(e){}

Clicky