Categorized | Residential

Housing Market Showing Signs of Growth in Spring Months

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Economists believe that this year’s Spring season in the residential real estate market may be the strongest it has been since the housing crash six years ago. With depressed prices all around the country, record-low mortgage rates, and the strong possibility that the market is finally on the path to recovery, many potential homeowners are starting to take advantages.

The number of total housing sales is up by more than ten percent from one year ago. Many believe that the market may finish the year up by more than fifteen percent. Many areas are finally starting to see bidding wars take place on homes. Sales inventory levels are down, as homes are selling at a far more rapid rate than they have in the past.

For the first time in six years, there are more buyers than sellers. It is for that reason that residential real estate prices are starting to increase. Despite the bidding wars, prices are still only a fraction of what they were at the peak of the housing bubble seven years ago.

Even areas that were hit particularly hard by the recession are reporting positive, albeit small, growth in their real estate market.

While increasing housing prices are a good sign of recovery, one of the most significant signs is the dwindling supply. The number of homes in inventory nationwide has dropped by a nine-month supply to a six-month supply in the last year. As the number of available homes decreases, sales prices will increase and the market will show positive growth.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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