Housing Market: May Have Turned the Corner

Yes, residential real estate remains in the throes of the worst downturn since the Great Depression. Yes, home prices are the lowest in six years and still falling. And yes, it still takes three quarters of a year to sell a house.

Nevertheless, the market may have turned a pivotal corner last month, if a surprising increase in existing home sales is any guide.

Prices appear to have fallen enough in some regions to make buying cheaper than renting, particularly in the West. Add with record low mortgage rates, demand has started to rebound.

Existing home sales across the United States rose 6.5 percent to an annual rate of 4.74 million units in December from a rate of 4.45 million in November, a National Association of Realtors report showed recently.

Distressed properties account for an abundance of sales around the country, the trend is nevertheless helping to ease one of the market’s biggest woes: a huge supply of unsold homes.

The lowest mortgage rates in decades are another driver.

So have we turned that pivotal corner on the road to recovery? Usually, people who try to “time the market” and hold off buying until a bottom is reached, end up paying more than bottom prices due to the fact that prices have already begun to go up by the time many take action.

What do you think? Have we hit bottom? Have we turned the corner?  We’d love to hear your opinion. Just click the comment link below and tell us what you think.