Categorized | Residential

National Housing Prices Primed for Recovery

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The residential real estate market in the United States has finally started to stabilize, leading many economists to believe that it has finally hit its bottom. After falling by as much as fifty-five percent in some areas since the real estate crash five years ago, housing prices are finally starting to show signs of gradual growth.

Already in just the first quarter, more than half of the reporting metro areas in the United States reported pricing gains in their residential real estate market. That number was a more than fifty percent increase over the fourth quarter of 2011. That number is expected to grow even further as the year goes on, as even the hardest hit areas are stabilizing in pricing and sales.

One of the biggest factors contributing to the stabilization of the housing market is the decline in inventory. As inventory falls, buyers have no choice but to compete with one another for properties. That competition has created an environment in which bidding wars are once again starting to become more common.

There are currently twenty percent less homes for sale than there were last year in the first quarter. Declining inventory levels are a very important element of the residential real estate market recovery.

Aside from the dwindling inventory levels and pricing increase, other factors such as the increase in spending on home improvement items, and also the increase in construction on multi-family homes have many economists believing that the market is finally at long last on its way back to its pre-crash state.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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