There are contradicting claims concerning where the housing market is at now; with some citing the huge amount of bank owned properties as a sign that things are not getting better, while others claim that the market has been on a positive run in the past two years.
Somehow, the latter seems to hold a better argument, not because it is better to make an optimistic evaluation, but because it makes more sense. The market has not remained stagnant, that much we can say, and that's a lot given where the housing had to come from in the past five or six years.
Home buying tipping the balance
Although bank owned homes are still oversupplied and residential prices are still near historic lows, we cannot deny that home buying activities have picked up in the past few months. Their cheap prices have allowed a lot of buyers, particularly those with cash, to invest in real estate and for independent buyers to purchase their own homes.
Even luxury bank owned foreclosures are being taken out of the market, particularly in popular real estate areas like California and Florida. Primarily, it is the low prices and the affordable mortgage rates that are fueling the buying frenzy. However, some may argue that the condition of the housing industry is not just all about selling and buying properties.
Fundamental issues still present
Those who support claims that the housing market is already stabilizing have argued that the fundamental problems are still there, like the perennial credit problems and the low prices of housing units. However, they also assert that although these problems will continue to exist, it does not mean that the crisis is not over.
For these analysts, the main issue is that the perception that the market is going to collapse has gone away. The number of bank owned properties will continue to be high and credit problems will persist, but the fact that a double dip in the housing market is far from possible is something that we should all be focusing on.
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