The New York Times reported this week that evidence is showing a recovery in the housing market. This is due to reports that prices are going up…and so are sales. Builders are constructing again. Homes are also being sold for asking price and sometimes above asking. Although the article says this is a positive movement, it says it will be slow. Many Americans are still in default of their loans, and owe more than their home is worth, making it impossible to sell. But the positive, upward trend is evident in the data:
· S.&P./Case-Shiller index reported earlier this week that sales prices for existing homes rose in April for the first time this year.
· National Association of Realtors said Wednesday that pending home sales climbed to the highest level since the end of a federal tax credit for first-time buyers in September 2010.
· The influx of investors is a major reason that the market is looking stronger.
· “Shadow inventory” is not distributed uniformly, according to a new analysis by Goldman Sachs.
· Inventory has been falling for more than a year, according to the National Association of Realtors.
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