When Will the U.S. Real Estate Market 'Turn Around'?
The real estate market is a topic turning up at dinner parties throughout the U.S. this year. Everyone loves to talk about it, from buyers to sellers, to Realtors and mortgage brokers, it impacts nearly every adult. It’s become a slight obsession in the U.S. and everyone has their own opinion. Has the market hit ‘rock bottom’? Who knows for sure?
What is the definition of a real estate ‘turn around’ and who is the expert? From a seller’s perspective, it may signify a return to double digit annual appreciation. For a buyer, it could mean easily obtainable mortgage money with little or no qualification guidelines. In a Realtor’s or mortgage broker’s mind it could mean a return to a six figure annual income and a sixty hour work week.
The National Association of Realtors (NAR) identify a successful market ‘turn around’ if the marketing conditions in the U.S. moves from the current buyer’s market with approximately 10+ months worth of unsold inventory to a seller’s market with less than 7 months worth of unsold inventory. And home builders have their own definition of a ‘turn around’. Single family home starts rose for the second consecutive month in April posting a 2.8% gain. At the same time, issuance of single family permits which can be an idicator of future building activiy rose 3.6%. Obviously, home builders feel that there is a reason to be optimistic.
NAR had previously estimated 2009 existing home sales to be 5.91M units which would be a sizeable increase over 2008 activity when only 4.91M units sold. The actual sales pace in 2009 has been much less than originally expected, so look for a revised estimate from NAR in the second half of 2009.
Everyone has an opinion and their own unique perspective. Whether an industry professional or an individual just trying to sell their existing home in order to relocate to their destination, the U.S. real estate market continues to be in the top of everyone’s mind. What’s your opinion?
Posted on 06/8/2009 in Domestic Relocation | Comments (5)
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