Everyday new articles and studies are coming out trying to predict what 2012 will hold for the housing market. Depending on which one you read, or want to believe, it’s either going to see a steady increase or remain stable, which to me means no one knows. Although I recently came across this video that attempted to not sugar coat the reality.
Rick Newman, chief business correspondent for U.S. news and world reports, confirmed that the real estate world may not be completely back but we are heading towards what might be a recovery. While this is evident since there’s only one direction to go after hitting rock bottom, Newman did admit that it’s taking way longer than anyone expected.
The latest numbers show that the depressed housing market is making baby steps. Construction of new homes in November was up 9.3 percent, which is the fastest pace in a year and a half. New home sells were up 1.6 percent in November, with existing home sells up 4 percent. Even foreclosures are down almost 16% compared to last year at this time but as Newman added, this would be good if it was normal housing market, which it’s not.
For example, numbers are still way worse than they were 5 to 7 years ago. With that said, what may have been the “normal” in 2005 and 2006 may not be a realistic normal for us in 2011 and 2012.
As for the foreclosures, Newman stated that these are not accurate numbers cause there has been a huge delay in foreclosure procedures. So there will be a spurt in foreclosures in 2012.
Overall, the housing market reflects the economy. A need for jobs and increase in income go hand-in-hand with how successful other markets are, such as the housing market. Another factor to consider is where you live. Some states are seeing more progress than others. For example, Trulia.com recently released its top markets to keep an eye on for 2012 that are seeing a steady job increase. These places include Texas, California, Massachusetts and New York. Some surprising picks, considering the cost of living in these states. But as Truila.com put it “prices are stable, and the economy has weathered blow after blow and is expanding,” therefore, lets enter the New Year thinking positive.
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About Ann Stiles
Ann Stiles is a real estate broker for Wilkinson and Associates. She began by selling homes in New York and has over 29 years of experience in real estate. After relocating with her family to North Carolina in 2008 she continued her passion for real estate. She currently resides in the Trump National Golf Club in Mooresville, NC with her husband and five children.
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