Expect Distressed Properties to Continue Influencing the Housing Market
It is not surprising that analysts have contradicting opinions about the housing sector, given that distressed properties continue to pull the market in opposite directions. In certain areas of the country, housing sales continue to climb, while prices of residential properties continue to tumble.
Although one may argue that housing cannot be recovering if its prices are down (regardless of whether sales are up), there is no denying that it is at a better point in its history compared with a few years ago when distressed homes are abundant, while prices and sales were also down at the same time. In 2012, more prominent signs of an improving market are expected.
Why optimism rules 2012 predictions
Most analysts believe that the coming new year will be much better for housing. For one, they expect distressed homes for sale to get sold at a faster rate in the coming year as more buyers regain their confidence and more of them decide to join the home buying market. For another, mortgage rates continue to be affordable; something that most people know will not last forever.
The continuous decline in housing prices, which is highly favorable to buyers, is being fueled by more distressed houses entering the residential property market. Meanwhile, mortgage rates are being aided by Treasury auctions, although this is expected to change once the mortgage-backed securities market finds its feet.
What market trends really mean
The continuous decline in housing prices may not be entirely good for the housing industry, but the priority right now should be to cut down the oversupply of distressed properties for sale in the market. And if low prices and low mortgage rates are required to get this done, then so be it.
As long as there are huge amounts of distressed properties, the market will continue to be sluggish. Fueling home buying activities is the best way to get rid of these excess properties and, right now, this should be a priority if the housing sector is to move forward and recover.
Related Posts:
- Cheap Distressed Homes, Record-Low Mortgage Rates Characterize Spring Home-buying Season
- Slowly but Surely, Inventory of Distressed Properties Is Going Down
- Distressed Properties Remain an Attractive Option for Most Buyers
- More Positive Predictions for Housing Even with Huge Supplies of Distressed Properties
- Housing Market Slowly Gaining Ground Despite the Presence of Distressed Properties
