Is the worst of the housing market over for Gwinnett County? It really depends on who you talk to. I personally think that we are at the bottom and are starting to look up rather than down. Those persons who have been sitting on the side-line waiting to buy may want to begin stretching and get warmed up to get into the game.
Housing reports out Tuesday show the first glimmers of stabilization in the housing market, but there are still significant risks that could hamper the recovery.
In June, nine of the 20 metro areas showed a gain in home prices, up from seven in May. Nationally, home prices fell at a slower pace for the fourth straight month in June, with prices in 20 major metro areas down 0.5% vs. a 0.9% drop in May. While the numbers are still falling, they are far less than the 2% monthly drops seen earlier in 2008, according to the S&P/Case-Shiller index.
“The bottom of the national housing market is in view,” says Mark Zandi, chief economist and co-founder of Moody’s Economy.com. “The rate of (price) decline is slowing and there are signs of stabilization in some markets.”
Economists remained generally upbeat about the reports, noting several factors suggest the worst may soon be over.
* Home prices are falling, but the rate of decline is easing.
* Some regions in the USA are seeing home prices rise again. Those areas include Denver, Boston, Charlotte and Dallas. Prices were up in some areas 1.5% from May to June.
* Sales of existing homes are rising.
“The housing market is weak on one hand, but we are in the process of hitting bottom. That’s the true story,” says Joel Naroff, president of Naroff Economic Advisors.
Inventories of unsold homes are still high, which could drag down prices. Mortgage rates have risen, and some economists say that those rates could hamper any turnaround unless the Treasury Department steps in to inject new capital into mortgage giants Freddie Mac and Fannie Mae, a move that may cause rates to decrease.
But, in light of recent housing reports, economists such as Brian Bethune now say it’s a good time to buy.
“The evidence is starting to accumulate that things are starting to turn around,” says Bethune, an economist with Global Insight. “A number of major metro centers are showing signs of stabilization, and that is positive news.”
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