The housing market's slow return to 'normal'
Posted on Thursday, November 29, 2012 at 4:43:19 PM
The housing market gained notable momentum so far this year after struggling to find its footing following the real estate bubble bust. As a result, activity through the sector edged closer to "normal" in October.
During the month, based on construction rates, existing-home sales, as well as mortgage delinquency and foreclosure activity, the national housing market is 47 percent of the way back to levels experienced prior to 2006, according to Trulia's latest Housing Barometer.
"Not only is the housing market closer to normal than at any other point since the crisis, the recovery is also accelerating," said Trulia's chief economist Jed Kolko.
In October, residential construction surged 4 percent from the previous month to an annual rate of 894,000 units, the report said. Meanwhile, existing-home sales increased 2 percent on the same basis to an annualized rate of 4.79 million transactions. In addition, the combined delinquency and foreclosure rate fell to 10.64 percent, down from 11.27 percent in September and 11.88 percent in October 2011.
As the housing market continues to post improvements, a greater number of consumers could attempt to make the transition to homeownership in the coming months. However, prior to signing on the dotted line, borrowers should examine a mortgage comparison chart to ensure they get the best possible deal.