Categorized | Finance and Mortgage

Housing Market in Midwestern United States Starting to Recover

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Things are finally starting to look up for the residential real estate market in the Midwest. The housing market in the Midwest was hit particularly hard by the real estate crash in 2006, and has essentially fallen since then. However, it appears now that the Midwest may have finally hit rock bottom.

 

With an increase in home sales and housing starts in the last year, many economists are hopeful that the residential real estate market in the region is finally starting to show signs of life. While sales are up slightly, the market has still yet to show serious gains in prices. However, many realtors and economists are simply pleased to see that the market is no longer in the state of decline that had essentially defined it over the past five years.

 

Home sales in the Midwest were up more than seven percent during the fourth quarter in comparison to the previous quarter. They were also up more than fourteen percent from one year earlier.

 

Residential real estate prices, though, fell by three percent during that time period. Despite the price declines, inventory levels are shrinking, which is a good sign for the market. As inventory levels continue to fall, demand will soon outweigh supply. As such, home prices will start to finally increase.

 

There is no clear timetable as to when home prices will finally start to increase. Even with that uncertainty, however, economists and homeowners alike are definitely upbeat about the prospects that the housing market is heading to a strong recovery.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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