Good news for those looking to buy or sell a home in Encinitas; the housing market looks to have officially achieved sustained recovery!
Fannie Mae’s Economic & Strategic Research Group released a report yesterday that examined the current state of the housing market, as well as future projections that indicated the housing market has “turned the corner.”
While the report looked at many economic factors – including the fiscal cliff, employment, and net worth – the report stated that “a sustained recovery is under way” for the housing market. Some of the findings that led the agency to come to this conclusion included:
- While home prices have weakened during the weak fall and winter months, for the first time in 6 years home prices are expected to end on a year-over-year increase.
- Home sales as well as construction on housing look to be set to greatly exceed those of last year’s levels.
- October saw the rise of existing home sales for the third time in four months and inventory on existing homes was at it’s lowest since February of 2006, 5.4 months.
- Both homebuilder and consumer confidence increased, with 72% of respondents believing that it is a good time to buy.
- Shadow inventory, the inventory of homes that are in foreclosure or a distressed sale, has also decreased.
Fannie Mae fully expects for 2013 to see a continuation of these trends, buoyed by low mortgage rates and the Fed’s continued purchase of Agency mortgage-backed securities. While the housing market will face challenges in the new year, such as tighter lending conditions and policy uncertainty, it looks like housing may have finally turned the corner.