Signs of a housing market turnaround
I found an interesting article in the Wall Street Journal Online regarding signs of a housing market turnaround. While the article certainly points out many of the problems facing the housing industry today, I noticed that the headline wasn’t the “doom and gloom” so prevalent in the media today. Perhaps it is the influence of Rupert Murdoch of News Corp. who is bidding to purchase the company and while the sale doesn’t look likely right now has just been agreed to, perhaps a nod to Fox’s “fair and balanced” tagline has crept into the editorial department.
I recently wrote With all the bad news, is it a good time to buy Charleston real estate addressing the local issues and conditions in the Charleston South Carolina real estate market which is holding up rather well despite the nationwide housing downturn.
In this article, you’ll find an interesting discussion of other markets throughout the country. Boston and Denver are highlighted as beginning to turn around with inventory declining.
Here are a few highlights from the article:
Tighter credit is prolonging a deep slump in home sales
Recovery will be very gradual and won’t start before 2008 at the earliest
Buyers in most markets can take their time and bargain hard on price
Glut of homes on the market…especially in Florida and parts of Arizona, Nevada and California
The message for home sellers is that they need to be flexible on price…and …spruce up their house to stand out against plenty of competition, including from builders desperate to shed inventory
The picture varies greatly by region and even by neighborhood…demand has held up far better for homes in desirable neighborhoods near city centers than for homes in more distant and humdrum suburbs
Lenders, under pressure from regulators and investors, are continuing to tighten…standards for borrowers
House prices are likely to remain weak in many areas until inventories of unsold homes fall
Potential buyers are waiting to see whether prices will come down
From the Wall Street Journal Online by James R. Hagerty and Ruth Simon, please read Some Hard-Hit Cities See Signs Of a Housing Market Turnaround.
There is also a link within the article to an outstanding interactive chart to track fundamentals in 28 real estate markets.