Categorized | Residential

Housing Market Stabilizing But Growth Is Years Away

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There is growing optimism that the United States residential real estate market is finally emerging from the housing crash that crippled the market in 2007. In fact, many analysts believe that this year will mark a true turnaround in the economy. With that said, however, many believe that true growth in the housing market is still years away. While prices may be stabilizing, it is unlikely that there will be any noticeable growth experienced for some time.

 

With the job market improving, and consumer confidence growing, there is good reason for one to believe that a market turnaround is in the near future. However, there are still some factors that must come into play in order to truly experience growth in the residential real estate market.

 

One of the main factors preventing growth is the backlogged inventory of foreclosed homes. These homes continue to drive down prices, and until the inventory is cleared up, prices will remain depressed.

 

The current plans being brought forth by the United States government are helping to reduce the clogged inventory of foreclosures, and also to help current homeowners refinance their underwater mortgages. While they won’t have an immediate impact on new home sales and development, the plans for legislation will expedite the possibility of true growth and recovery.

 

Most analysts believe that the market will hit rock bottom this year, though prices will remain at the depressed levels for a few years to follow. After a few years, however, the market will see a strong increase in growth.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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