Is the Housing Market Recovering?

In the past few months, statistics show that home sales are once again on the rise due to competitive bidding on properties and an increase in investors, first-time homebuyers, and builders.  There are currently many insinuations that the San Diego housing market may be nearing the very bottom of the cycle.

Here at Whitney and Associates Real Estate in La Jolla, we have been tracking residential real estate trends and statistics as well as blogs and articles regarding the San Diego market.  For the past 8 months, overall sales have increased from year-earlier levels.  At the same time, record-low interest rates have encouraged buyers to enter the lower end of the market.  This also explains the rising number of investment pools arising to purchase bulk quantities of Real Estate Owned (REO) homes and condos, with promised high returns.  These investors are currently leading the market.

Home prices finally showed signs of stabilizing during January and February, however, most real estate experts would say the market has to have three to six months of consistent trend lines.  Although the lower market is improving, the final component of a recovering housing market is the rebound of the upper market, which still remains sluggish.  As soon as sale begin recovering outside of the foreclosed properties that will be the start of the recovery.

SOURCE: www.sdhomes.signonsandiego.com “Signs Suggest Country Housing Market Recovering” by Lori Weisberg and Roger Showley 5/6/2009