The housing market may be beginning to thaw out, as mortgage interest rates have started to dip and listings of homes for sale have begun to inch higher.
A staggering 4.25 million households filed for unemployment in the last three weeks of March, putting tremendous pressure on the housing market. Nonetheless, mortgage interest rates dropped to an all-time low in late March and early April, which has heavily increased buyer interest. In addition, inventories nationwide also started to get replenished, with an uptick of over 30,000 new listings between April and May.
While the housing market wasn’t immune from the economic recession, it would appear that it isn’t taking the same toll as other sectors of the economy. Homes that are still up for sale are selling closer to their list price and in a timely manner. Furthermore, many areas are seeing increased activity with closed-home sales.
Still, much of this activity is being propelled by cash buyers and private banks. Federal programs that are subject to Congressional approval are experiencing delays, along with traditional mortgages, as lending specifications are being tightened. Nevertheless, despite the credit obstacle, private banking sources continue to spark up home sales in the market.
In spite of the overall uncertain climate, the housing market appears to be slowly inching towards better times. Buyer demand is still there and with proper government intervention, many analysts believe the market can be jumpstarted and move in the right direction.
Though the future is unclear, one thing is for sure, the housing market is a resilient one and appears to be holding steady, despite the economic downturn.