Do you think we'll see sustained increases in housing sales going forward?
The latest report of existing U.S. home sales unexpectedly rebounded with a 6.5% increase in December, while the unsold homes inventories showed the biggest one-month drop since December 2001. Is this a one-off or the start of improvement for the ailing sector?
Answers
4075 points
EthanR answered 10 months ago …
Tough to say. We know that home prices are lower and interest rates are low, so those two factors combined have spurred some interest in home buying again. However, mortgage standards are still tough and the minimum down payment is now 3.5%. Many of the homes sold were foreclosures or short sales, but that is still a good thing as it will reduce the inventory of distressed homes on the market. I would really want to see 2-3 months of improvement before I would be willing to say that it's the start of improvement for the sector.
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3943 points
MNSL answered 10 months ago …
It is a tough question to answer.
I think demand for houses will be different from one country to another country, from once city to another city, from one location to another location. .In addition there will demand for undervalued quality homes.
First home buyers should learn almost everything about housing sector before buying their first homes.
We also should give attention to recent answers given by BoxCar and demographic changes in the next 05 years plus ARMs in 2010 and 2011.
379 points
dustbusterz answered 10 months ago …
EthanR you say (Many of the homes sold were foreclosures or short sales, but that is still a good thing as it will reduce the inventory of distressed homes on the market. )
but i have to say that can only decrease the available housing so much as there are a limited number of people who have the money right now to even buy foreclosures. I agree its a step in the right direction, but will be very limited cause of all the people without jobs . home sales will not increase significantly until people return to work.and until banks begin lending more freely.
