How strong is the housing recovery?
The top article in the NYT today addresses the fragile housing recovery and points out the possibility of another decline in values. Read entire article at: http://tinyurl.com/ya5hlz2
My view is that we will not see a sustained housing recovery until unemployment drops. When people are afraid that they may lose their jobs they put off major purchases. When people do lose their jobs and their house is worth less than they can sell it for they are more likely to go into foreclosure. The combination of the fear of unemployment and the potential for more foreclosures will continue to weigh heavily on the housing market for some time.
I believe we still have several more years of weakness in the housing market. This is great news for buyers as they should be able to continue to find bargains but not so great for sellers who will need to continue to price aggressively if they want/need to sell quickly.
I am looking forward to the prospects of a continued housing recovery in 2010, especially in the Triangle market, but am also aware of how fragile the recovery is. I will continue to observe the market and let you know what I think next year!
Happy New Year