Housing Bust Over, Experts Say, Home Prices Slowly Moving Upwards
The housing bust has brought along with it a long seven years of pain for American homeowners, renters, and anyone who lives inside a dwelling and who was unfortunate enough to be dragged along with the market as it crashed and burned following the mortgage crisis.
But the housing bust and the home sales woes that came along with it may finally be drawing to an end, experts say, with a large majority of experts consulted by the Wall Street Journal expressing a belief that the market has finally “hit bottom” and predicting a steady climb in home prices from here on out.
Of the 47 experts consulted on the housing bust, only three believed the market has yet to reach bottom, with the other 44 believing signs of improvement are palpable in the long-suffering housing market.
The site quotes Wells Fargo analysts in referring to a “budding recovery in the housing market” that “appears to be gradually gaining momentum,” but the paper also reminds readers that housing troubles are nowhere near over:
“Housing is still far from healthy despite the Federal Reserve’s efforts to resuscitate it by helping to push mortgage rates to extraordinary lows: 3.62% for a 30-year loan, according to Freddie Mac’s latest survey. Single-family housing starts, though up, remain 60% below the 2002 pre-bubble pace.”
The U.S. housing bust is over. Nearly 7 years after bubble burst, most indices of house prices are bending up. on.wsj.com/MiNwcU
— Wall Street Journal (@WSJ) July 11, 2012
The WSJ continues:
“Americans’ equity in homes is $2 trillion, or 25%, less than it was in 2002 and half what it was at the peak. More than one in every four mortgage borrowers still has a loan bigger than the value of the house, though rising home prices are reducing that fraction slowly.”
A more detailed report on the housing bust and the market’s current state is expected later today, at around 2PM EST.