Turning Point?
Well, the NAR Midyear meetings have just ended. I had many opportunities to meet and speak with REALTORS® from around the country (and the world, for that matter). As always, I learned a lot from my conversations. But of course almost all of them posed the same question: are we on our way to a recovery? It is difficult to say for sure, but I do want to point out some of the latest developments in our economy and housing.
Let’s get the bad news out of the way first. The worst part about the current recession is the job market. The economy has shed nearly six million jobs since the start of the recession in 2008. Unemployment is at its highest level since the 1980s, and is likely to increase into double-digits before the end of this year.
Home sales are still down from year-ago levels. Existing home sales fell in March, as did new home sales. Inventory is still high – in March the number of existing homes available for sale was at a 9.8 months supply. Distressed sales (foreclosures and short sales) are accounting for almost half of all resales. In order for the market to fully recover, that share of distressed sales needs to shrink significantly. Prices are still declining, at least on a year over year basis. More Details..