Real Estate markets have certainly seen one of the greatest downturns in history, in regards to dollar value decline, but like any other commodity or market item, real estate too has its highs and lows. By many indicators, its seems that we are in the low and actually starting to see an increase in values, as evidenced by the following three major factors;
* The inventory of unsold homes is coming down rapidly from the peak levels of last year. Hovnanian has even sited shortages in some previously saturated markets.
* Housing affordability has improved dramatically from its all-time low levels in recent years.
* Buyers are emerging and markets are “clearing” in some of the hardest-hit areas, like Phoenix, Sacramento and Las Vegas, and it seems clear that these buyers are much more than hurt investors looking to make back what they lost from the downturn.
It is certainly possible that the apparent bottom we are now in may prove to be the eye of the housing hurricane when all is said and done. Yet, it would certainly be a mistake to dismiss the improvements that we have been seeing. Too many observers are busy looking in at the past rather than focusing on the reality in front of them.
Information from Yahoo! Finance http://ping.fm/v6Q86
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