Housing Recovery?

The evidence continues to mount that we might be on the throes of a recovery in the housing sector. While that will be great for most of us, there are a few things to remember as you read the headlines and hear the TV news reports. Like the downturn of the past few years, a recovery is likely to start regionally. Today you are hearing about large year-over-year increases in sales in the West and the South, particularly Florida. But those area were also the hardest hit and the first to sink in late 2006. Next, keep in mind that the housing recovery will be measured in terms of slight increases over previous years' results. Please do not expect a tremendous bounce in terms of sales volume. What we really need now is a sustained upturn that will last for many years. Finally, keep in mind that as the housing recovery gains strength, the unbelievable opportunities of the past few months will slowly start to fade. Housing prices will likely start to firm; inventories will decline; interest rates will stabilize and start to increase and other market conditions will begin to swing back to a neutral to seller's market. For you buyers, and especially 1st time buyers, the perfect storm may be about to blow out. If you can, now would be an excellent time to dive into the market.