In
regards to the bigger picture at hand, the article conveys there is a lack of
supply in the existing housing market. Does this mean there will be an increase
in building? Are people hesitant to sell, but at the same time willing to
buy because housing prices will only go up? As stated by Stuart Hoffman, chief
economist at PNC Financial Services Group in Pittsburgh, “For the first time in a while, it looks like it’s
a sellers’ market as much as it’s a buyers’ market." I believe it is definitely a buyer's market, but am hesitant to say it is a sellers market. What are your thoughts? Would you buy a house as an investment if you had the disposable income? Is the housing market making a comeback?
Tuesday, January 22, 2013
Today's Housing Market
Today we learned about spending, investments, and the application of statistical research when implementing policy. This article by Bloomberg has it all and uses statistical information and earnings to express improvements in the housing market. Take a look at the survey results section for more information on home sale estimates. Note that both Bloomberg and S&P have different ways of measuring these estimates.
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After reading Chapter 4 from the text book and learning about the implications of consumer expectations I agree with Stuart Hoffman about it being a buyer's market. Just like you I find it hard to say it a seller's market. Until the credit crush I thought house prices always went up and that was good. Now, not so much. It has taking a while to get the house market back on track but I think its about to come out. I will however not invest in it just yet.
ReplyDeleteI think the housing market is going to see better days. Just like the average markets, it has its ups and downs. With mortgage brokers cracking down on how many loans they now give out, its going to be harder for people with bad credit to get loans needed to buy a house. The demand might not be there, but the supply and price of houses will be in the future.
ReplyDeleteWhen I was reading the article, I felt identified with the word "credibility" and "expectation". According to this article, economy is reactivated and it is also more dynamical. As Stuart Miller said: "After seven years of navigating an unprecedented market downturn, we finally saw stabilization and recovery in 2012". However, I wonder if the consumers and investors feel the same. I do not think so. Each morning, I read news about the risk of over heated the US's economy. Therefore, this article is too positive scenario for the reality. If I am the investor, I would not, definitively, buy any house at that moment. I do not think that I may gain any return on the investments.
ReplyDeleteIt looks like US economy is recovering. I have read many articles about many wealthy Asian families are buying houses in US because this is the best time and best price for them to buy. If I were an investor, I definitely bought house as an investment at this time.
ReplyDeleteI definitely think that people are hesitant to sell and they are being cautious about the housing market. Even though new houses and condo's are starting to be built again the housing market will take time to recover, more time because of the lack of faith in the economy and housing market.
ReplyDeleteMy brother is currently in search to buy a home. He has told me that now is better time then any to buy the houses he is looking at because the Realtor said the prices will jack up any time now. Who knows if that is true, considering he is just trying to make a sale... but after further research I have found that now is the best time to buy a home "if you can find one." I found this quote in this article, http://realestate.msn.com/is-now-really-the-best-time-to-buy talking about . This article talks about buying houses now... but “It doesn’t appear that given the forecast for the next 12 months that most buyers have a lot of reason to hurry,” says Ingo Winzer, president of real-estate research firm Local Market Monitor. It also gives a list of the best places (state wise) to buy. But is it a better idea to buy now (if you are considering to buy a home) then when March 1st hits?
ReplyDeleteLike the article states, this is just the beginning of the recovery. The outlook seems pretty positive, though. To answer your questions, I understand the hesitation from the quote "it looks like it’s a sellers’ market as much as it’s a buyers’ market." Based on this article, I would agree with this and say it does appear that the sellers' market is becoming as much as the buyers' market. Yes, the housing market does appear to be making a comeback based on the "long term demographic need for housing." Regardless of some of the statistics that were not so positive, I would still say this article poses an upward looking outlook for things to come.
ReplyDeleteFrom what I have heard about the housing market in the past 5 years or so and from this article it has been a very slow recovery. It is good to see that it is starting to get back into a better real estate situation for sellers since it hasn't been for many years. I think so many Americans have put off selling and moving around because of the housing market and maybe articles like this will help encourage more buying and selling. Once people feel comfortable selling or relocating, it may push the market recovery that last bit and get closer to "normal." I am excited to follow the progression of this.
ReplyDeleteI agree with Cameron because although you can never fully trust these stats, it looks like it would be a good time to invest in the housing market. Even though it is only the beginning of the road to recovering the housing market, it does look quite positive.
ReplyDeleteI am glad to see the housing market is finally making a recovery. A family friend of mine has been trying to sell his house for years and hopefully now he will finally get a good price on it. I think now is a great time to sell because if this recovery doesn't last, it would definitely be a better idea to sell now before things take a turn for the worst again.
ReplyDeleteIf I had the income, I would certainly but a house. Actually, I would have done it years ago. A good quality home is something that there will always be a demand for. Even if the housing market is down, I believe its a good investment to make. A home is one of the basic needs, behind food and water. I know this is a very simplistic approach, but I truly believe there will always be a market for a well kept up home.
ReplyDeleteI would actually have to disagree with Keaton here. Today you are still seeing tons of foreclosures keeping peoples confidence low in buying a house. Many people are preferring to rent apartments and lower cost options. So if you were to buy a house as an investment, you may not make money on it for years. And as Clay mentioned, if this recovery doesn't last, and people believe this, then everybody will try to sell their house now and kill the rise of housing prices once again.
ReplyDelete