The housing market is on the rise
Although the housing market has been down, it looks like it may be starting to rebound. The Wall Street Journal reported yesterday that housing sales rose 5.1% in February. A similar article a few days earlier reported that sales in California, one of the states hit hardest by the housing crisis, have also improved. According to the California Association of Realtors, homes in California were on the market an average of 6.7 months in January 2009, compared with 16.6 months a year earlier.
While many of the homes that have been spurring the increase in sales nationwide were foreclosed homes, the rejuvinated market should be seen as a positive sign. Mortgage rates (both for mortgages and reverse mortgages) remain low. HECMs are now available to help seniors purchase homes. The increase in home sales are signs that these changes may be working. Although the new HECM for purchase program was not put into effect until after the CA data was collected, it is a positive sign that the market appears ready to support such a program.
While it’s too soon to say the market is on an upswing for good, the rejuvenated market is definitely a step in the right direction and a good sign for lenders, realtors, homeowners, and prospective homeowners alike.