Housing Industry is finally Starting to Recover

Housing is rising at a rapid rate with low inventory.  Just this week, the census bureau report that single-family housing started to rise in February to the highest level since June 2008.  

Not since the early 1980s has the economy come out of a double-dip recession caused in large part by soaring interest rates that made homes unaffordable and sky high price tags.

As the chart shows, the collapse of the housing boom is only starting to recover.    

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Individual Buyers Dominate Home Sales as Opposed to Investors

Another sign that the housing recover is more sustainable than before.  Mortgage applications were at all time high in January.  For the last couple of years, investors with cash have driven the recovery of the housing market.  But in the last five months, application for new mortgages have risen and now regular buyers are having to play a bigger role in the housing recovery. 

This is the significant change the market has been waiting for! Why? Many in the real estate industry are worry that once home prices rise to a point where it's not as worthwhile for investors to buy, prices would drop off.  Now that individual buyers dominate home sales, we may see a more sustainable recovery under way. 

This doesn't mean that investors have loosen their grip on the market.  Now,  investors are buying homes at an extremely affordable price with plans to rent them out and flip them for a profit when the market is right. 

With these news, individual buyers will likely play a larger role in the housing recovery however the change will be a slow one.  The importance is that it has started to happen. 

Source: CNNMoney.com