“While the general U.S. economy continues to struggle to make gains, for the first time since the end of the recession, housing may actually make a significant contribution to economic growth in 2012, a welcome change to affairs for an otherwise struggleing economy”
The above excerpt comes from CoreLogic’s August Market Pulse Report which provides insight into the current and future health of the U.S. economy with emphasis on houseing and mortgage metrics.
CoreLogic knows a thing or two about big data – they retain one of the largest and most comprehensive U.S. real estate, mortgage application, fraud, and loan performance databases in the world. And that’s why I don’t take lightly these four reasons they think the U.S. is heading for a housing recovery.
1. This fall, the housing market may avoid the slide that has occurred each of the last three years because of an improving balance between supply and demand, declining REO sale shares and a slowly declining foreclosure inventory.
2. A lower likelihood of foreclosures flooding the housing market is beneficial because the market is more likely to absorb the inventory without dramatic changes in prices.
3. Many borrowers in both the boom and “rust-belt” markets lack the means to prevent serious delinquency due to their limited ability to refinance at a lower mortgage interest rate. Policies designed to offer options for borrowers to lower their interest rates further can help decrease the flow of future delinquencies.
4. The current share of non-distressed sales is at its highest level since August 2008, positively impacting home prices, and is a sign of real improvement in the housing market.
So there you have it. Some very promising news for the housing market and the economy. I would also like to add that locally on Longboat Key and in Sarasota we are experiencing a resurgent and energized market. I know you haven’t heard this in year (probably since 2006) however we have a real lack of inventory on the Key and actually need listings for this season of 2013.