Categorized | Finance and Mortgage

Economists Optimistic about Housing Market

Please Share!

While it would be easy to grow worried about the housing market given the most recent data from February’s sales reports, most economists are not wavering in their overall optimism regarding its future expectations. In fact, many top economists are as optimistic as ever about the residential real estate market.

 

The most recent report regarding the housing market’s performance in February indicated that home prices across the country fell yet again, and sales are down across the board. Furthermore, countless homeowners still owe more than their home is worth. With more foreclosures in the wings, it would be pretty easy to be pessimistic about the overall state of the market.

 

However, economists are remaining positive about the prospects of the residential real estate market. While surface level numbers certainly do not look good, the economists are pointing to underlying factors that will have a greater impact on the market in the future.

 

Such factors include the job market, inventory levels, and the loosening of credit standards in conjunction with low mortgage rates. As the job market continues to improve, the housing market will soon start to see growth. In fact, the dismal job market was one of the major contributors to the housing market’s downfall. With improved job prospects, there will be fewer foreclosures, and buyer confidence will soar.

 

Homebuilders are starting to see an increase in business as well, which is a very telling sign that the market may be on its way back. With the said, the numbers from February may be disheartening at the surface level, though a little digging yields that good times will soon be here for the housing market in the United States.

Please Share!

About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

Leave a Reply

Twitter Chat