Outlook for a Housing Market Recovery

 Home prices may well find a bottom this year, and stronger sales should pave the way for a pickup in single-family construction over the course of 2012.

That’s the assessment made by Harvard University’s Joint Center for Housing Studies (JCHS) in its recently released “State of the Nation’s Housing” report. The report - which has been released since 1988 - is an essential resource for both public policy makers and private decision makers in the housing industry.

The bottom line of the report is that - after several false starts - there is reason to believe that 2012 will mark the beginning of a true housing market recovery.

 

However, employment growth remains a key factor, providing the stimulus for stronger household growth and bringing relief to some distressed homeowners. And, if the broader economy weakens in the short-term, the housing rebound could again stall.

 

Here are just some of the findings in the report:

 

• The monthly mortgage payment for the typical home currently compares more favorably to rents than at any time since the early 1970s.
•  
• By the first quarter of 2012, existing home sales were 5.2 percent above year-earlier levels, with single-family sales up 6.3 percent.
•  
• Sales of newly constructed homes in the first quarter of 2012 stood 16.7 percent above year-earlier levels.
•  
• The inventory of existing homes for sale shrank by some 23 percent in 2011, reducing the supply in the first quarter of 2012 to its lowest level since 2006.
•  
• Single-family permitting, a leading indicator of starts, was also up 16.9 percent in the first quarter of 2012.

The complete report provides a current assessment of:

 

• The state of the housing market and the foreclosure crisis
•  
• The economic and demographic trends driving housing demand
•  
• The state of mortgage finance
•  
• Ongoing housing affordability challenges

 

You can download the full report from the JCHS’s website. You can also download a convenient handout of Key Housing Industry Facts from the website.

 

 

 

~~Mortgage Market Guide

 

 

 

Home Sales Show Increase

Sales in Middle Tennessee grew by more than 20 per cent over 2010. There were 1502 single-family homes sold which is a gain of 21.4%. It was the 6th consecutive month that home sales topped their year-ago levels. People who haven't had confidence are now starting to move forward.

According to the Greater Nashville Association of Realtors single-family homes purchases for the entire year grew 1.5% over 2010 to reach 17,192 properties. It was the first time since 2006 that annual home sales rose for the year.

Williamson County saw an 8.4% increase. Median prices in both counties were slightly lower. The median price for the year was around $167,000 down about 1 per cent. Pending sales were up 23% which is a great sign of future growth

If you have been waiting on the economy, it may be time to get moving. Call George at 615-777-4663.