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Snapshot of the Current Housing Market


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Current Housing Market

 

The purpose of this post is to summarize the key points from a CNN Money article that essentially reports on the current state of the real estate market.  It’s good to keep on top of current housing market trends, especially for us rental property investors.  The link to the full article can be found at the bottom of this post.


January recorded the lowest home sale prices in over ten years. Median prices fell another 2% from December to January, hitting a record low than hasn’t been seen since 2001. The good news is that declining property prices are encouraging more and more potential buyers to stop dragging their feet and take advantage of the current favorable market conditions.

Banks are hoping that the incentive payments will cut out resistance from homeowners and offer up the best solution for all. It is a win-win for the banks, particularly because they skip out on a potentially long legal battle on the one hand, and take advantage of making a better deal through a short sale on the other.

The large inventory of distressed properties on the market – including REO and short sale homes – is believed to be weighing down prices further. Market experts predict that prices will continue to fall through the middle of 2012 as the housing market works its way through the glut created by more properties falling through the foreclosure pipeline each day.

Banks are hoping that the incentive payments will cut out resistance from homeowners and offer up the best solution for all. It is a win-win for the banks, particularly because they skip out on a potentially long legal battle on the one hand, and take advantage of making a better deal through a short sale on the other.


The market is very gradually moving towards equilibrium as a number of factors simultaneously come into play. The low housing prices combined with historically rock bottom mortgage rates indicate that homes today are more affordable than ever witnessed by this generation before. The slow recovery in the economy has meant more jobs which has led to an uptick in home purchasing. While market pundits warn that a full recovery will be slow in coming, everyone acknowledges that the figures for inventory of homes are substantially healthier today than they were this time last year.

Click to continue reading the CNN Money report on the state of the current housing market.



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