Has the Housing Market Hit the Bottom? Signs Say Yes::Real Estate for Santa Clarita VIDEO Update
We have been asking this questions here in Santa Clarita since the all-too-famous bubble burst. Earlier this year the 2012 Cotton report came out offering their opinion that the bottom was reached last year. Now the Wall St. Journal is offering their own view that we are at the bottom and actually estimation 2012 showing a gain over 2011 on a national level.
We are seeing signs of this here in Santa Clarita as many homes are now getting multiple offers and there bidding wars on some properties driving prices up.
Check out the quick video or look below for the an excerpt from the Journal.
Improving economic data and government-policy developments have led Bank of America/Merrill Lynch to call for the long-awaited bottom in housing prices this year.
The firm tweaked its forecast from November, when it expected home prices to fall 3.5% in 2012. Now, it expects a modest gain of 0.5%, a good sign for the sector that continues limping through its worst downturn in generations.
Still, “along with the earlier bottom is a slower recovery,” the firm warns. It expects home prices to gain 2.8% in 2014, solidly below its prior estimate of 8.1%. Its prediction for 2020 remains roughly the same, when it expects beaten-down home prices to have recovered by 42%.
Inventory dropped sharply in the second half of last year, according to the firm’s research. And while BofA/Merrill expects those numbers to pick up because winter’s unseasonable warmth may have already supported home sales, it now expects lower inventory levels than previously thought. Also, recent trends of higher-than-expected job creation and record-low mortgage rates, the firm said, further support the case that housing is undervalued.
From Wall St. Journal
Now rates have gone up as well as of late which is another indicator that things are improving. If you are looking to buy a home here in Santa Clarita, now is a great time especially if these trends continue move upward.
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