Has the end to the housing market slump – the longest slide since the Great Depression – finally come? The signs are there. Home prices are on the increase, sales are happening, the market is showing a recovery, and home builders are ramping up again. Now all this doesn’t mean that we’re going to shoot back into the clear. It’s going to take time – the recovery will be slow.
Millions of people are still underwater or are facing foreclosure or are unable to sell their houses. But, experts don’t predict that things will get any worse. After what we’ve gone through, that’s great news. “With each passing year, an eventual [housing] recovery has grown more likely. Prices have continued to fall, and the economy has continued to recover, a combination that has expanded the pool of potential buyers. The population has continued to grow while few new homes have been built. Basic indicators of market health that bulged during the bubble, like the ratio of housing prices to income, have returned to more normal levels. Government efforts to help homeowners have intensified, allowing more borrowers to refinance or avoid foreclosure.” There are still a lot of variables that could go awry, but the fundamentals of a recovery are there.
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