Recent Data Points to Housing Bottom
The National Association of Realtors has said that existing home sales increased 7.2% in July, representing an annual rate of 5.24 million units compared to an expected 5 million units sold.
A few important milestones have been hit:
So, is this officially the housing bottom? The stock market seems to think so. We have seen the DJIA rebound more than 50% off its lowest levels last year. When the NAR data was announced on Friday, the Dow Jones rose 155.91 points to 9505.96. Clearly the $8,000 tax credit stimulus for first-time homebuyers is largely accredited for these recent home sales, as a majority of home sales were prices below $200,000.
Will housing continue to improve if the incentives are not extended beyond their Nov 30 cutoff date? I think it will largely depend on if the economy shows continued improvement and if mortgage interest rates can remain low long enough to attract additional buyers. But it seems that we’re on the right track, and that if you’ve been sitting on the sidelines waiting for the housing bottom, then now just might be the time to dip your toes back in the real estate waters.
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