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March 25, 2008
Is the End of the Bust in Sight?
Yesterday's news that sales of existing homes increased in February offers another bit of hope that the housing market is starting to recover -- or at least stabilize. Other indications include the Housing Market Index from the National Association of Home Builders, which held steady. Although only one in five respondents thinks that the market is getting better, that's an improvement from the 18% who felt that way in December.
There's no doubt that this is good news, but just how good is it? Apparently it depends on where you live; the market appears to be best in the Northeast, but it's still slipping a bit in the West.
There are some legitimate reasons to be hopeful, though. The inventory of unsold existing homes has dropped; mortgage rates are still low; and pent-up demand can be pent up for only so long. Do prospective buyers think that prices are as low as they're going to go? Apparently some of them do.
Despite that, though, the number of new houses started dropped 6.7% last month, according to the NAHB. David Seiders, NAHB's economist, attributes that to potential buyers being nervous about the economy overall. It's easy to understand being cautious about taking on a new mortgage when you're worried about your job.
What are you seeing where you live? Has activity in the housing market picked up at all? Or are you still looking at long lag times between listing a house and selling it?
Posted by Marjie O'Connor, HGTVPro.com Staff at March 25, 2008 1:04 PM
Comments
Here in north mississippi, sales are steady, but not up to last years numbers. We have a large inventory of new construction, so Builders are slowing down on building more.
Posted by: becky austin at April 9, 2008 12:18 PM
This month in Wichita Kansas, my friend sold his home in one day and my grandmother sold her home within one week. I think aircraft industry makes the economy strong here.
Posted by: Deborah McPherson at April 10, 2008 12:33 AM
