Home Prices Stabilize Indicating a Market Bottom
A lot of things are expected to happen in 2012, but meanwhile there is one clear improvement in the house market. The trials of home owners is about to end. Since the big market crash from 2007, the whole planet has been devastated from the economical point of view. Salaries keep minimizing, prices are rising on a monthly basis and a lot of businesses have been declared bankrupt.
Just to help you make an idea about the gravity of the situation, in some areas home prices have been brought down with 35% and even 55%. But now good news seems to be rising, more precisely that the prices have just begun to stabilize.
Studies revealed by the National Association of Realtors indicate the fact that in the first four months of 2012, the price of homes for single families kept rising in contrast with the situation from 2011- in the first quarter of this year just 29 price gains were registered. In mathematical terms, this means that more than half of the cities along with the U.S. have displayed a considerable profit. Interestingly enough, these cities are not some random cities; they are placed in areas with a high industrial potential which acts like an inflammatory force- and these cities are: Okla, N.D., Bismark and Oklahoma City- and also places that are favored by the retirement of the birds in winter: Cape Coral, Palm Bay, Tampa, Sarasota. It is though unfortunate that the percentage of the areas still affected by the economic crisis keeps creating difficulties. Cities like Seattle, Washington D.C, Atlanta, New York etc continue their struggle to offer their citizens a better life. But there is still hope because more improvements are expected next year.
Furthermore, the Fiserv Case Shiller Indexes confirms the good news, that there is some sort of equilibrium at this point on the market. People are now spending money to improve their homes and multi level foundations lead to a superior home sales volume. Due to this event, it is expected that immovable market will stabilize by the summer of 2012 and then improve in the next five years, gaining control over the business.
Investors are going to play an essential role in this equation because a third of the acquisitions are already investor-related. The present state of things discourages home renting because prices keep rising every month. Thus, a more convenient solution seems to be the actually purchase of a house due to the low price of the market. Why not have your own houses instead of paying rent for one you do not own?
Mark Fleming, who is the chief economist of CoreLogic, claims that there is a visible change of plans because the balance between request and demand has regained certain stability, and consequently house prices are beginning to stabilize, without receiving the help of tax credits. He actually suggests that there are some areas where this plan has been applied and the results are making appearance: New York City, Arizona, Washington, Phoenix, etc.