Three Reasons Why the Housing Maket is Recovering

Posted by Admirals Cove Homes on Apr 15, 2013 in Home, Real Estate | 0 comments

For a while now, the public has been hearing about how the housing market is making a recovery. Here is a look at the three key reasons for the recovery.

Fewer distressed properties- When the hosing bubble burst, millions of homeowners lost their properties. The result was that the housing market was flooded with distressed properties. The only people interested in these properties were those looking to purchase them for an investment or as a fix-up. Fast forward to 2013 and only 1 out of 5 home sales are for distressed properties.

Lack of inventory- Currently, the demand of homes is greater than the supply. This is causing buyers to get into a bidding war with each other and driving up the prices of homes. With the inventory being as low as it is for the first time since 2005 it is quickly becoming a seller’s market.

Increased consumer confidence- As the economy starts to recover, it leads to either new jobs or a new sense of job security. People are now more likely to start making large purchases again, including homes. This gives people the confidence to get out there and start looking for their new home.

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