Pretty much everyone is in agreement that the housing market is gaining momentum. Not at the ridiculous pace of the pre-bubble days, but a more steady, sustainable growth. However, there are still bumps in the road to recovery, but overall, signs of sustainable growth can be found in the market. According to the Mortgage Banker’s Association (MBA) chief economist Jay Brinkmann, there are several factors at play.
The four main factors include:
- The majority of foreclosures are in just five states. Everywhere else, housing prices are steadily on the increase.
- There are no signs of pre-bubble speculation. Investors are driving up prices legitimately. They are “reading the landscape” and thanks to an increased demand in rentals, they are focusing on single-family homes. In turn, single-family homeowners are seeing renting their homes as a viable, creative alternative to selling their home.
- Credit for homebuyers is still an issue. Getting credit is still tough for many.
- The job market is still tight. No secret here, more jobs means more demand for housing. As unemployment slowly goes down, housing sales slowly go up.
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