Real Estate News:
Yes, The Market Is In A Recovery
In Spite Of Some “Resting” Signals, The Market Is Definitely In Recovery Mode
In spite of some recent news … some appearing in these pages … that might be construed as “negative” as far as the current real estate market is concerned, things are still in a “recovery” and “uptrend” mode.
In recent weeks we’ve seen prices in many areas … such as Southern California … rise to rates that have slowed buyer activity in many ranges. We’ve heard how many Middle Class buyers are being priced out of neighborhoods that they would traditionally have been comfortable purchase locations. We’ve heard how, here in Southern California much of the “investor driven” market has cooled. These things are all true.
However, what is also true is that these appear to be “short term” adjustment behaviors, and not indicators of a change in long term market trends. If we back up and take a “longer” view of the market, looking nationwide and not at any one particular area, we are still in an “uptrend” and definitely in “recovery mode”.
Here’s a report from Jonathan Smoke that appeared in today’s Realtor.com/news:
Realtor.com/news Nov 21, 2014
” The new home market is finally improving, as demonstrated by single-family housing starts—the number of privately owned housing units on which construction has begun. Single-family starts in October were at the second-highest level in more than six years. Homebuilders are encouraged by this increase in activity, as builder confidence also improved this month.” …
Read More Here: http://www.realtor.com/news/market-update-beginning-recovery/
All Markets Advance In Fits And Starts … A Rest Builds A Solid Foundation
No market builds from the sub-basement to the clouds in a uniform, ever-advancing manner. There are always market “retracements”, “pull backs”, and “adjustments”. Multiple and complex “fundamentals” underlie the real estate market and combine to create complicated “technicals” which all translates in common market movement. The real estate market we’re experiencing now is solid, on the upswing in the long term, and currently taking a slight rest to build a better, more solid foundation.
Next year should see some nice sales numbers in both activity and prices.