October 29th, 2013
Across the U.S., the top 300 housing markets have all been recovering.
The Local Market Index from Homes.com reports month-over-month increases in index values in 253 of the top 300 markets. Although this figure was down from the previous month, the decrease was only due to seasonal trends and the individual status of recovery in each market.
Homes.com also has a Rebound Report to track the progress of recovery in markets across the nation. The results of the report showed the U.S housing market is not far from total rehabilitation.
“The important thing to realize is that all markets are in some form of recovery, and different factors contribute to recovery scenarios across the country,” stated Brock MacLean, executive vice president of Homes.com.
Full recovery has been seen in more than 25 percent of the top 100 markets. Almost half of the other markets have recovered 50 percent of value lost during the housing downturn.
Sellers are experiencing positive equity and buyers are able to make worthwhile investments when they purchase a new home.
MacLean went on to say the markets experiencing gains were not hurt as much when the housing bubble burst. There are still some buyers who are attempting to sell their current property with negative equity, but overall prices are higher and the rebound is on track even if these buyers have trouble getting into the market.
A needed slowdown for prices
Prices have begun to ebb, creating an auspicious market for buyers.
According to Fox Business, property valuations have started to cool.
“I think we’re kind of pulling back down a little bit,” stated Brendon DeSimone, a real estate watcher and author. “I think people are just taking a step back.”
Spiking prices had resulted from demand that outweighed supply. Even though there were not a large number of available properties, low mortgage rates and buyer confidence fueled the market’s appetite.
Now that investors have grabbed a lot of properties and first-time buyers have started to back off, demand is lower and prices are responding.
“First-time homebuyers were back in the market in spring,” DeSimone continued. “There’s just nothing for them to buy.”
However, veteran homebuyers who are more prepared for tough market conditions can look forward to softer prices.