Today, the housing market is showing tentative signs of healing. Existing home sales have stabilized, house prices have bottomed, the homeownership rate has ticked up, and the threat of a massive shadow inventory is fading. Economic growth is firming in parts of the country that missed the worst of the bubble and new workers will need places to live. Rental markets are getting tighter and new housing construction could soon follow, perhaps reflected in the recent improvement in home builder sentiment.
With the supply of new homes at such low levels, even a modest pick-up in the pace of sales could have a dramatic impact. When the housing recovery gains real traction, the current supply of new homes could run out within a few months, leading to higher house prices, a boom in residential construction, and an unexpectedly powerful lift to the US economy.
Full Article: http://nationalmortgageprofessional.com/news-ticker/11/11/signs-healing-housing-market
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