Housing market leveling out, steadier times expected
Posted on Tuesday, July 16, 2013 at 11:40:08 AM
The housing market has been up and down recently, and as homeowners attempt residential financing to help acquire their dream homes, a return to some level of normalcy might be around the corner.
Fortunately for many people invested in the housing market, numbers appear to be evening out, according to HousingWire. June showed signs that the rollercoaster ride of rates and sales is heading toward a steadier time.
A recent report from research center Redfin showed that the number of homes for sale dropped 19 percent from June 2012, but is up 2.4 percent from May 2013. June is the third month in a row that has seen positive gains. Rising interest rates might appear to be a negative sign, but they won't stop the housing market from coming back, according to a report by Bloomberg. Construction of new homes will still increase, and buyers are still looking - they are just being more cautious.
Sharp changes to residential financing isn't going to continue, and eventually a happy medium might be achieved.
"The market had been in an unsustainable situation. We were seeing 3 or 4 percent monthly increases in price of an asset that should appreciate 2 percent per year," said Glenn Kelman, CEO of Redfin. "Cooling off doesn't mean were moving to the abyss. It just means markets have stabilized. That seems like a healthy place to be."