I am always asked, "how is the market?" Everyone wants me to say it is getting better because the historically robust spring market has always added anticipated enthusiasm to the market. However, spring or not we are only four years in this ten year correction cycle. The statistics below are additional measurements as we redefine the bottom.
"February's sales numbers add to the mounting evidence that the housing recovery is hesitating along with the inconsistent progress of the economic recovery," said David Crowe, chief economist for the National Association of Home Builders (NAHB).
"Falling housing prices of existing homes are robbing demand for new houses and until that changes, the housing market will be in trouble,' said Yelena Shulyatyeva, an analyst at BNP Paribas.
The NAHB also noted that "even qualified buyers who are ready to make a purchase are facing frustrating challenges in terms of tight consumer lending conditions and inappropriately low appraisal values on new construction."
Prices will continue to fall until the distressed inventory is significantly reduced and of course, the economy must turn around to bring equilibrium to the supply and demand that we learned about in Economics Class 101.
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