Millions of Americans have endured through the housing market crash of 2008, while others are still trying to get back on their feet; and even still to this day are some Americans just now getting a bad dose from a bubble that burst nearly six years ago. Keeping that in mind, is the housing market ever going to make a come back, and if so will we see a double bubble effect? At this time it’s still to difficult to tell whether the market will rebound to a leveled median or rise up to another market crash. However, it is noticeable that the market is growing steadily and it all started with investors.
Foreclosures and bank sell offs have made it easy picking for those still hanging around with some cash to spare. These investors have spent millions buying up good properties, remodeling, and then putting them back on the market for twice as much, if not more, than they originally paid. Of course this is old news, but it was the beginning to the steady rise we now see today in the housing market. This rise wouldn’t have occurred however if not for employment rise in the economy; which has opened the door to demand.
There is a question left begging to be answered, will the rise in the market sustain over a long period or are investor’s efforts falling short of their mark? Well it kind of depends on the investors and their profitability goals. They’ve invested and now are hoping to gain from their investments, but if Investors misinterpret the buying power of purchasers along with the economy’s rebound (while also over pricing units) then another banker’s nightmare of handing out loans to those who can’t afford them could easily occur. If there are certain homes listed for certain prices at a now market average, then that will be the only availability buyers will have and banks will have no other choice but to follow suit for approving loans.
The market is on the rise however while statistical numbers prove it to be true; and that really isn’t such a bad thing. Realtor.com real estate trending news webpage shows by way of a “National Housing Trend Report ” that the national averages of properties for sale have increased 10.1% from February of 2013 to February of 2014. This is affiliated with a rise of the national median list price of $199,000 which is a 7.6% increase over the same time period. FreddieMac.com released a Mortgage rate survey shows that mortgage rates are on the rise (subsequently due to buying demand) at almost a full percentage point from last years 30 year fixed rate of 3.54% to 4.41% ; while the 15 year fixed rates have risen in a years time from 2.74% to 3.47%.
Census.gov “US Census Bureau News” with a joint release from the US Department of Housing and Urban Development shows within its report that developers too are starting to draw in revenue by way of new residential construction, (also subsequently reflecting a buyers demand). This is proven with the rise of building permits percentages rising from last years report which lists a gain in permit applications rising 6.9% from 952,000 units in 2013 to 1,018,000 in 2014. The percentages of building completion within the same time frame has had a outstandingly impressive gain of 21.9% which totals 727,000 units that were completed from 2013 to 2014.
When it comes to survivability of a city who was seemed to be nearly demolished from the housing market collapse we can’t look any further that that of Detroit. Detroit once thought dead and forgotten is starting to win the fight to stay alive. Detroit’s median list price rose a remarkable 26.3% to an average of $119,000 which is up from around $80,000 last year.
So is the market making a comeback, the answer is a resounding YES! However, the question still remains, will it stay a stable market that future generations can rely on for investing and life planning or will we all yet again become victims of a flawed system that never really became wholesome again after the bursting bubble of 2008.