For almost six years now the housing market of the United States has been in a state of disarray, and just as there was no way to predict the end of the boom, calculating the stabilization of the housing market also proved to be a challenge. According to many housing market analysts, the price of homes was not set to rise until late 2013, but in many areas the prices have already started to look promising and the rest of the country is likely to follow before the end of the year.
This trend can be attributed to the federal government’s monthly mortgage purchase in upwards of forty billion dollars—with no end date. However, according to the S&P index of home prices, there have also been contributions from the recent improvements in existing home sales, new homes sales, and the construction sector.
Due to the recession, the government has been keeping the average mortgage borrow rate low and there seems to be no plan to increase the rates. This is good news not only for home buyers, but also for builders, brokers, and real estate agents. As people started losing jobs and defaulting on their higher mortgages, the housing sector saw a huge loss in income. The economy still remains slow, but the housing market is showing steady progress.
While the market seems to be showing much needed improvement, there are no signs that it will cause any major changes in the current economic climate. However, it does provide a source of hope and a secure place to invest otherwise displaced assets. The housing market will surely claim its place once again as the backbone of the U.S. economy.
Consumers that were looking to purchase homes at the start of the market collapse found themselves at an impasse, unsure whether to take the plunge or wait it out. Those that chose to wait are now in an excellent position to buy, with a wider variety of homes available, including many that may have been outside their price range at the start of the market collapse. Consumers who were not saddled with bad mortgages have found their credit profiles have become increasingly attractive to lending institutions that prefer stable clients for mortgage loans.
The industry may see an increase in sales as well as purchases, with the many homeowners offloading their debt by selling their home. Many new buyers are looking to purchase their first home as well, while financially solvent buyers are interested in investing in rental properties.
Regardless of what side you happen to be on, now is the perfect time to dip into the housing market. With low interest rates and an abundant supply of homes, you can bargain for a real deal.