Well one can’t say that the news has been very promising over last few years, when it comes to the US housing market. But, the current data is mixed. It must be said, however, that numbers at the best of times can be misleading.
The foreclosures aspect
The good news is that the number of foreclosures in January went down, compared to the earlier months. The drop in foreclosure was 10% from the drop in foreclosures noticed in December. Industry experts ask people not to regard this drop as a sign of recovery. Its good news, but a wait and watch policy will give a true picture of the months to come and also whether any recovery is actually on the cards. Experts estimate that over the next few months there will be a surge in foreclosures as a result of foreclosure alternatives not working. Some of the states that have been the hardest hit because of foreclosures are Georgia, Illinois, Nevada, California, Utah, Florida, Illinois, and Idaho.
Homes sales – Low again
As expected, there is very little good news to be had from the home sales sector. It showed a 7.2% drop compared to the month of December. According to reputed agencies, the sales of new homes hit an all time low in the month of January. New homes are still not on the radar for most people looking at purchasing a home. For them, short sales and foreclosed homes are a much better bet.
Interest rates – Some good news
The month of February had good news for potential buyers as the mortgage rate remained low throughout. But, by the end of March, the US Federal Reserve will stop its policy of buying securities that are backed by mortgage. Chances are that this will prop up the mortgage rates. But there have been indications that if the rates start to rise, the government will step in to bring down the rates. But again, one needs to wait and watch what happens.
Is it back on track?
Well, nobody is willing to answer this question yet. But, there is no doubt that things are better than before. The question is whether they will keep on improving or shift downwards again. When it comes to the housing market, it’s not just the law of demand and supply that is going to decide market improvement. There are many more factors at work, which makes it all the more difficult to predict a definite outcome.
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