Is the housing market finally recovering? A brief Google search of the term “housing market rebound” produces month after month of news articles predicting that yes, this time, it’s finally a rebound.
This week saw the release of a few data points that suggest that recovery just might be around the corner. Fannie Mae and Freddie Mac are reporting high quarterly income, as the bad loans made during the housing bubble become smaller and smaller parts of their portfolios. At the same time, late mortgage payments are at the lowest level in three years, which means a greater proportion of homeowners are keeping up with their payments.
But not everything is rosy. Mortgage delinquency is still higher than the historic average, the unemployment rate is still high, and high consumer debt and low consumer confidence make home buying unattractive or out of reach for many. And according to one analyst, while home prices have been on the rise, that increase might not have the “momentum” necessary to sustain a recovery.
Meanwhile, the slack economy and troubled housing market keep people in the rental market, which drives up rents and decreases vacancies.
So what do you think? Are we seeing the start of a real rebound? Is your community’s housing market coming back? Are you seeing an impact on lower income renters where you live? Share your thoughts in the comments.
I recently read some economist pondering if 8% unemployment was going to be “the new normal” — not 5%. I sure hope not! But I do hope we settle on a new normal for what makes a healthy housing market.
I don’t know what that looks like, but I assume that the ratio of homeowners to renters is going to be down for quite some time. New college grads have more debt and less income. Like it or not, many will delay buying a house. Like it or not, many of them will compete with even lower-income households in the rental market.
How can we make this okay?
Will we increase the volume and quality of rental stock so low-income and higher-income renters can coexist? Can we use this as an opportunity to shed our negative stigma of renters? Can we find a way for those seeking to build assets, to do so without that immediate asset being a home, but still being in something that improves their community and its stock?
I’m really curious? Help me find answers?