Recovery in the Housing Market

by San Antonio Attorney

In the past, the housing sector was usually the one to steer the nation out of economic crisis. The reason is central bankers ease monetary policy emerging from a recession, and property finance loan demand is especially critical to interest rates. However, the industry did not perform its usual function following global financial crisis in 2007 to 2008. In reality, the growth was so slow that it did not get through to the most conservative outlook. Years after the post-crisis, housing turned out to be a drag on the economy. The good news is, things are about to change.

After waiting for several years, a true recovery is coming in the housing market. Before the housing bubble burst, individuals could buy homes even if they do not have means to pay for them because of weak regulation and very accessible credit. Consequently, home prices soared at a mind-blowing pace, driving wave after wave of supposition in which average individuals bought houses not to make as their residential homes, but to make a large profit.

In May this year, reports showed that the most significant road blocks to recovery are at last changing for the better. Recent home sales increased 5.1 percent to an annualized rate of 5.35 million, the fastest pace for the past six years. The percentage of first-time home buyers was particularly the highest since September 2012, climbing from 30 percent to 32 percent in April. The improvement in labor market created more jobs for young people, who can now afford to become homeowners.

Credit supply is growing in spite of the tight requirements of mortgage loans. Even though it will take more years for the housing market and overall economic activity to become “normal” again, it appears that things are going slowly and steadily in that route.

When dealing with a real estate transaction that is complicated or risky, it is a wise to consult with a real estate attorney. Since not all real estate matters are created alike, ask if the attorney has handled transactions the same as yours.

 

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