Mercury Rising 鳯女

Politics, life, and other things that matter

Housing Markets Bottomed Out?

Posted by Phoenix Woman on April 13, 2009

The housing market nationwide (and the market in general, or so it would seem) shows signs of recovery. This might be an indication that the banks are starting to lend at least a little bit (or that the credit unions are doing bigger loans than in the past).

Specific examples of the housing market’s bottoming (and potential recovery) are in New Jersey, California, and the Twin Cities metro area of Minnesota, where prices have apparently finally hit bottom and are back to something resembling true market value.

In fact, the bottoming out is also occurring across the pond in the UK, though at least one analyst is warning people not to be fooled by ‘green shoots’.

The bottoming out was in fact predicted back in December, predicated in large part on Obama’s getting the stimulus package through Congress.

Is it real? The fact that it seems to be widespread is a good sign, but I’ll keep my fingers crossed for now.

3 Responses to “Housing Markets Bottomed Out?”

  1. Charles II said

    It’s not the right time to call a bottom. The housing market is very seasonal. In the spring, people start to buy many more homes. So, for example, a February-February jump of 83% sounds like a lot, but it’s very few homes. Since sales are distorted by the purchases of speculators (which do not reduce inventory), this is more likely to be an artifact. And for the Case-Shiller to return to anything resembling historical averages, it would have to fall another (gulp) 30%.

    It’s spring, and spring makes us feel good and more optimistic. If you’re certain that you’ll hold your home for 10 years, it’s probably not a bad time to buy. If you have to move and your home’s value is not a major part of your net worth, it’s a good time to buy. But if you cannot afford to be underwater for a few years, it’s a good time to be cautious.

  2. Joanna said

    Whether or not it’s the absolute bottom, any sign of cautious optimism is like spotting the first violets peeking out from under the dried leaves in the meadow–it feels good for the spirit, even though it will be some time before everything else is green again. I’ll take it.

  3. joel hanes said

    Is it real?

    Ask yourself this : are home prices now such that the median-income potential homebuyer can sanely purchase the median-priced home? (Home price no more than three times annual household income).

    The answer here in California, IMHO, is still no, and by a long chalk. I expect further substantial declines over the next year.

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