October 15th, 2012
Housing experts have been unable to reach a consensus regarding the sustainability of housing market recovery. However, a new report shows that the gains made in 2012 may be more durable than those made in previous years.
The October MarketPulse report released by analytics firm CoreLogic shows that the consistent balance between supply and demand is one of the driving forces of housing market sustainability. Stronger home prices and low mortgage rates, coupled with rising rent prices across the country, have prompted more Americans to start investing in homeownership.
Further, the report shows that new home sales are up 24 percent from where they stood a year ago, while existing-home sales increased 11 percent. The gains are largely due to many Americans’ renewed confidence in the housing market.
While most of the housing news is positive, potential home buyers are still urged to work closely with a mortgage consultant to discuss whether homeownership is the right decision for them. In addition to the cost of owning a home, buyers must take several other factors into account, such as whether they will remain in the home for a long period of time – and therefore start building equity – or expect to be relocated to another area for work.