The National Association of Realtors has reported this morning that existing home sales rose 2.4% in May 2009, which represents the third month of gain in the housing market this year. Another piece of information released was that the number of foreclosures comprising the resale market has dropped.
In my opinion this are good news. However, the media continues to instill fear in the american public by providing only part of the information or manipulating data to continue keeping people from thinking positive, so we can get out of this recession. The media continues to focus on the fact that the published information “missed economists’ expectations”. Personally I do not care if the economists got their calculations wrong (that is what the media is saying), I look at the overall picture of the housing market. Do we have signs of improvements? The answer is yes.
1. Home sales continues to show positive signs.
2. The number of foreclosures that comprises the number of homes sold is lowering.
3. The unsold home inventory continues to drop, currently it is at 9.6 month supply. If you recall about a year ago, the supply was at 12 months, and the same economists predicted that the supply was going to continue rising. A normal market is considered 6 months supply and we are moving towards that direction.
What does this mean for real estate investors and home buyers?
In my opinion the housing market may have put in a floor on prices for this year. I expect to see the prices in many areas of the United States to stabilize and experience modest appreciation. This provides great opportunities to the real estate buyers’ market.
What are your thoughts? Let us know your thoughts about this subject.
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