About this time every year for the last three years I have heard the same thing, the housing market will bounce back in the spring. While I don’t think we will wake up the first day of spring to a fresh cup of coffee and a once again booming market, I do think we will slowly start to see a rebound. Here are a few reasons why:
1- In case you haven’t heard, 30-year fixed mortagages are the lowest they have been since the spring of 2003.
2- Although sales of existing homes are down from 2005, the annualized sales rate has steadied in the fourth quarter.
3- Inventory has decreased meaning the average time for a home to sit on the market has as well.
4- Housing affordability rates are at a high which will start to attract more buyers.
Take all this into consideration and I think we have good reason to be optomistic going forward!