Signs of Revitalized Housing MarketThe aftermath of the housing recession created many distressed properties in large metropolitan areas such as Las Vegas and Miami. Some properties fell at such astronomical rates that investors had lost all confidence in the market. During the worst of times, prices in Las Vegas dropped more than 50%. Fortunately, that was in the past. According to Altos Research, a market watchdog, prices in most metropolitan areas - even in Las Vegas - have been stabilizing in the past month. Prices in Las Vegas have increased 2% in the last three months. Miami commands even better rates: an increase of 7% in three months. Altos Research also noted that housing inventory is declining in metro areas. In their research which spans 20 metro areas, they found that inventory declined more than 14% from November to January. Las Vegas showed the most progress with inventory levels down more than 38% in that span of time. The city holds fewer than 11,000 properties in its inventory. "In many markets, tight inventory of quality properties is another contributing factor keeping a floor on home prices this spring." Despite such favorable signs, there may factors which level the outlook. RealtyTrac writes that completed foreclosures in Nevada dropped 26% to 6,328 in 2011. Slow foreclosures lower the amount of REO properties which in turn, may affect inventory rates. The slow settlements may pick up steam, as mortgage servicers are putting the AG settlement behind them in January. If the foreclosure rate stabilizes, inventories may be pushed higher by the end of the year. It is impossible to ignore the housing price increases, a steady decline of the housing volatility rate, and other key housing metrics, even with the brimstone prophecies. The improved metrics and market reports all show, finally, stability from the times of 2007. Reading between the lines, one may even see signs of life in the housing market. |
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