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Signs of Improvement in the Housing Market

Scott Grannis has a financial blog we follow regularly called the Calafia Beach Pundit. An entry today addresses the housing market with an interesting statistic from the National Association of Realtors (NAR). It shows the supply of unsold homes has declined significantly in the past year and is now down to about a 6 month supply.

Around 2002, it was as low as 4, but has more recently been as high as 12. We continue to hear that banks are carrying a supply of REO (foreclosure) homes that, if they dump on the market, will depress sales. (More information)

But with continued low interest rates, improving sales, and slower growth in new homes being put up for sale, the blog makes the case that the market is clearing and has been for several years. While many buyers are taking advantage of low prices, others are still on the sidelines waiting for things to pick up.

As Mr. Grannis points out, the pick up is usually not so visible until it is well underway. At that point, prices and interest rates start to rise and buying sentiment may overcome any new supply the banks dump on the market.

We are certainly seeing this pattern here on the Big Island, where buyers are snapping up great deals and inventory continues to shrink. 2012 may be the year that the 5 year downturn in housing here began to turn around.

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Heidi White

February 19, 2012

Dan, well this is what I am feeling here on the Realtor selling side of things over here on the West side of the Big Island. Inventory drying up a bit and lots of activity. The overall outlook is positive. This is a good thing for all Americans I think.

Thanks for this informative blog!

Heidi White

February 19, 2012

Dan, well this is what I am feeling here on the Realtor selling side of things over here on the West side of the Big Island. Inventory drying up a bit and lots of activity. The overall outlook is positive. This is a good thing for all Americans I think.

Thanks for this informative blog!

Matt

February 23, 2012

Something has definitely shifted. My entire calendar is full of showings. Every day. Buyers are coming back for third and fourth visits. It’s too early to say that the market is ‘turning’ or even ‘improving’, but it’s pretty clear that the inventory is disappearing, and there are some very good deals being done right now. Interesting times…

Matt

February 23, 2012

Something has definitely shifted. My entire calendar is full of showings. Every day. Buyers are coming back for third and fourth visits. It’s too early to say that the market is ‘turning’ or even ‘improving’, but it’s pretty clear that the inventory is disappearing, and there are some very good deals being done right now. Interesting times…

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