10 Signs of a Real Estate Recovery in 2012

As homeowners continue to “hold their breath” awaiting a real estate rebound from the recent recession, signs are finally appearing that a recovery is imminent. This is more than a glass half-full outlook. Factual signs confirm that a rebound in the formerly bottom-feeding real estate market is underway.

These are not the “ravings” of a real estate firm. Wall St. Daily confirms that these are “irrefutable signs” of a real estate recovery. Consider the following facts.

Housing starts are increasing. February 2012 starts are up 14.7 percent from the same period in 2011.

Building permits are up. In February, building permits were issued predicting an annual construction rate of 717,000 new units.

Declining available inventory (finally). Supply and demand 101, including new and existing homes, predicts a recovery, as available properties are down 19.3 percent in the past year. As supply decreases, demand dictates price increases and more sales.

Bidding “wars” returning. During the “hot” real estate market, competitive bidding on homes for sale was common. As inventories decline, some bidding buyers are returning to play the game. Since real estate is essentially a “flea market,” competitive bidding is a boon for homeowners.

Home sales bottom may have been reached. 2011 recorded the lowest home sales volume since records have been kept. Volume projects an 11.4 percent increase.

Previously-owned home sales rebounding. With an 8.8 percent increase in 2011, followed by a 14 percent increase in February 2012, the market is conclusively trending upward.

Price increases. Like unemployment data, price increases are a “lagging” indicator of a recovery. Recent Case-Shiller Indexes display that even the hardest hit markets show increased prices.

Stronger consumer confidence. Insiders, builders and consumers are displaying increased confidence, now at the highest level since 2007. Even home builders confirm their growing confidence in a real estate recovery.

Rising rents. Historically, as rent prices increase, buying activity increases. Home ownership becomes ever more affordable. We are now at this critical point.

Increasing employment . Even during the “rock ‘n’ roll” real estate days of the early 2000s required borrowers to have employment and steady income. As the jobs picture continues to improve, consumers finally have some verifiable regular income to motivate them to buy property–and lenders to offer financing.

These indicators are real and factual. If you’ve been craving to become a homeowner, the time is now. Should you be a homeowner considering selling your house, the time is now. Why wait? As veteran buyers and homeowners know, waiting for higher/lower prices or better climates is an exercise in futility. Go for the gold now.


Source: http://www.wallstreetdaily.com/2012/04/09/signs-of-real-estate-recovery/

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