19 Dec Housing Rebound Forecasted for 2012
Since the so-called “Great Recession” began in 2006, home valuations have fallen by an average of 25%, forcing many “underwater” as incomes and available credit shrank. Recent positive economic data shows a good foundation being laid for housing in 2012.
Speaking with Housingwire.com recently, Barclays Capital analyst Stephen Kim observes that “in the absence of government homebuyer incentives, prices for non-distressed home sales have stabilized for almost a year.” This news, coupled with an uptick in jobs and new housing starts in November, this comes as very welcomed news for wary first-time homebuyers, many of whom have been waiting on the sidelines for the “right” time to buy.
While timing the market seldom works, many first-time homebuyers have held off on making what will likely be the largest purchase in their lives. What are they waiting for? Palpable signs that housing prices have leveled out and that the economy is finally back on firm footing. As Kim concludes, “Housing’s recovery depends primarily on when these first-time buyers decide it is safe to buy a house.”