This is a subject that can lead to some spirited debate. Some experts say that the market is still dropping, and others say that the bottom has hit. I thought that the beginning of 2009 would be the bottom, because the Fall and the holidays are usually very slow times for real estate transactions, and the spring is when purchases increase. I found this article shows empirical evidence that the market could have hit bottom and be on the rebound. Here is an excerpt from the article:
Here’s a surefire way to start an argument: Suggest that the housing market has reached bottom. To be sure, the near-term outlook is still grim, and nobody is forecasting a rapid nationwide rebound. But there are signs that the overbuilding and speculative pricing that inflated the bubble are working their way through the system. In October 2005, near the peak of the boom, the median sales price for a U.S. home reached 7.3 times per capita income; by this May it had fallen to 5.7, in line with historical norms. Nationally, the rate of decline in sales is slowing, and in some regions sales numbers have actually perked up. “The indicators are starting to look better,” says Adam York, an economic analyst with Wachovia.
There are some markets that skew the national numbers quite a bit like Miami, Phoenix, and Las Vegas which shot up like a rocket and fell like an anvil. But, Smart Money dug through the numbers and found a few large markets and found these home markets could be appreciating in value.
- Raleigh, NC
- Salt Lake City, UT
- Philadelphia, PA
- Denver, CO
- Birmingham, AL
- Seattle, WA
- Des Moines, IA
Money Crashers is dedicated to shedding a little light in the darkness, because the mainstream media only feeds us the bads news. There is real evidence that the housing market is looking up, but you won’t hear that from CNN or NBC. Do you live in any of the cities listed above? Do you agree that those markets are doing well despite the housing bubble bust? Comment below to share with us your thoughts.