It is good news and better tidings for the Housing Recovery market. The number of real estate investors purchasing previously owned homes is on the rise since April 2010. It looks like the badly bruised Housing market is in recovery mode.
A spike was caused in 2010 in the Real Estate Market by the Government’s offer for federal tax credit for buyers. Chief global strategist at BTIG , Dan Greenhaus claims that home sales formerly kept in abeyance, are now getting closed rapidly at a record high since the year 2007.
The reason for this surge in home sales is obvious- mortgage rates are at an all time low and there is a high demand due to increased purchasing power. Spring and summer months have increased the urge and sentiment in the minds of the people to build new homes. Hence house prices are also on the rise. S & P’s Case-Schiller’s information reveals home prices have shown their first-ever consecutive increase in June after last year‘s rise and this is a huge boost since 2010.
Miami, Sacramento, Las Vegas, Phoenix and Stockton have seen a return of the real estate investors who has fled the scene when their investments crashed. Las Vegas and Phoenix show an especially high percent of investor activity in the <a href=”http://newwestern.com/invest”>housing market</a>. Phoenix has shown a remarkable gain of 13.9%. Inland California is attracting a lot of investors and second-time homebuyers. Tucson, Naples and Panama City are facing a sudden influx of second–home investors.
Still certain facts continue to irk economists. San Diego, Las Vegas, Los Angeles, New York, Chicago and Atlanta still show a negative rate of change. National Unemployment is still at 15%, and 10 million mortgages are left unsettled. This all portend a pall of gloom on the future of the US housing market.
Although some investors still continue to cast doubts on the sustenance of this home recovery and housing market upswing, hopes still remain among economists that this rise is sustainable. Joe Naroff, Chief Economist and President of Naroff Economic Advisors has put all fears to rest by predicting that this current sales pace is sustainable and likely to keep rising. All media channels including BBC, Reuters and even the dependable Wall Street Journal are predicting promising, persistent growth for the housing market in the US. Let us cross our fingers and wait.