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  • Is The Housing Market Recovery A Temporary Affair? 0 comments
    Mar 20, 2013 4:25 AM

    The news about the housing market recovery caught much limelight and public attention and is one of the most talked about topic among the masses in the current times. With each passing week there is new news and updates about the housing market that depicts its further growth and expansion. Well the reason why housing market growth is gaining such publicity is because of the fact that the real estate sector was almost dead for the past several years and then reports emerged out of the blue that tells the recovery and growth of the sector which caught the attention of everyone.

    Now the current picture proposes that the growth of the housing market will continue for the rest of 2013 thus making investment in the housing sector unexpectedly profitable and lucrative in the coming months. However many are yet doubtful about the present growth of the property sector and skeptical about its future existence. The biggest conundrum that real estate investors are suffering from at present is whether the housing market recovery will continue for the long haul or is it just a temporary affair. In order to find the answer of that we need to put a deeper look on the subject and look at things from the perspective of an investor.

    It was October 2012 when the first promising news about the growth of the housing market sector popped up. Records suggest that the real estate sector experienced growth both in the number of sales and prices of properties since October and this trend is continuing till date. However if experts are to be believed than real estate recovery initiated long back somewhere in the 2nd or 3rd quarter of 2011 when the US economy recovered almost entirely from the depression of 2007 with stocks performing well and investors earning large profits from their investment. Initial recovery of the property sector was slow but gained momentum in September and October 2012.

    While many are surprised about this unannounced growth of the real estate sector, investment expert Michael Lombardi isn't surprised by this development. As per Lombardi, the recovery of the real estate was supposed to happen since the entire economy went through a breakthrough. Fighting all the odds of the great depression of 2007-08, declining foreign economies, unemployment, and the fiscal cliff; the US economy and stock market is currently enjoying a state of prosperity and therefore real estate sector has nothing to do but to go up as well. Thus for those who think that the current real estate growth is a temporary affair are completely wrong as recovery of the sector started way back in 2011 and in addition the present growth is not the result of minor factors but the result of the overall growth and expansion of the economy which appears much promising.

    Now let's have a look on the recent trends and developments that taking place in the real estate environment. Sales of new homes inclined to 14% in January and previously owned homes went up to 0.5%. Moreover annual property price rise in 2012 was recorded to be 5.7% and if growth continues for the rest of the year than this figure is likely to go up further. All this mentioned factors and indicators clearly specify that the housing market growth is here to stay for a while and is not destined to be temporary. In conclusion we have to say that with such appealing trends, 2013 is perfectly good for real estate investment as prices are currently low and property mortgages are available at lower rates making money for buying homes cheap.

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