At times, the economic recovery from the recession seems slow. In particular, you may be wondering if there is any improvement in the housing market. The good news is that for many parts, the answer is yes.
At the beginning of the Great Recession, the housing market collapsed or literally burst. This happened because the price was over-inflated based on the actual value of the home.
So what parts of the Housing Market Mississauga are improving? First of all, banks started lending money back to both contractors and buyers. This credit relief has ripple effects across the economy as contractors can put people into construction when construction loans are available. This cycle can continue as people can afford to buy or improve their homes once they return to work.
Housing starts are also an encouraging sign that housing recovery is underway. With the freedom to rent again, they mean better housing listings are coming soon.
Home sales nearly doubled from four years ago, and home prices rose an average of 33%. Also, in some markets, especially in the Bay Area, selling a home takes much less time. Small homes, so-called starter homes, are now often sold within two months.
Nearly half of the nation’s housing markets have above-average recovery rates, and most are actually small markets. San Francisco is a rare exception thanks to tech companies.
Realtors also have much less inventory to work with, which is actually a good thing. At the bottom of the recession was nine months’ worth of homes they were able to sell. it was just over four months. The downside of reduced inventory is that people will have a harder time finding homes.
You may also have noticed a decrease in the number of foreclosures in your neighborhood. Because the economy is recovering and it’s easier for people to refinance and get out of high-interest and expensive homes.
If you’ve been mortgage shopping lately, you’ve probably noticed that there are plenty of banks offering really good interest rates over the life of the loan. This is because the credit crunch is easing and banks are willing to lend more and lend more easily.
As we’ve seen, there are more encouraging signs for the housing market as a whole than there have been in recent years. In certain parts of the country, things are going well, so there’s reason to celebrate. We’re not completely out of the woods yet, but things are definitely getting better.