Housing Market’s Gradual Recovery Continues

HouseTrulia’s Housing Barometer tracks how quickly the market is returning to normal based on five measures, including delinquency and foreclosure rates, new construction, existing home sales, home prices, and the employment rate for 25-34 year olds. According to the most recent release, four of the five indicators have improved over the last year. In fact, only construction starts fell behind over the past 12 months, dropping to 44 percent back to normal from 45 percent the year before. But, though real estate has been rebounding, the recovery has been slow and, at times, volatile. Housing affordability has been a part of the reason for this, as has the declining presence of real-estate investors in the market. Last year, when there were more distressed properties available for sale, investors were more active, buying homes to eventually put up for rent. This activity was, in large part, responsible for last year’s home price increases and also a percentage of the accelerated sales pace. This year, however, investors are less active in the market, which means prices likely won’t rise as quickly and home sales may appear slower than last year’s pace. More here.

Michael Rosenbaum

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