Real Estate Crash may be Ending

The National Association of Realtors said today that sales of existing homes rose 6.5 percent to an annual rate of 4.74 million in December. The number of unsold homes on the market in last month fell nearly 12 percent to 3.7 million. At the current sales pace, it would take 9.3 months to sell all the properties, down from 11.2 months in November.

The winter months are usually slow for real estate. People tend to not buy homes around the holidays and the weather can be a negative factor. This makes the latest real estate numbers impressive. With interest rates low and credit easier to obtain, people are starting to buy again. A friend of mine, who owns a mortgage lending business, says he is seeing a pickup in loan requests. “Thank God”, he said!

We are starting to see the rapid decline of real estate slow down. There may very well be a bottom in late spring or summer. Sales and prices should start to rise late this year. If that happens, it will be great news for the U.S. and world economies. The one spoiler for this is employment. If the unemployment rate continues to climb, the housing market will be negatively effected.


15 Responses to “Real Estate Crash may be Ending”

  1. 1 possum1027 January 26, 2009 at 11:04 AM

    Yea, it looks like a good sign, although it just may be that people are so in debt that they just want to get rid of their homes for rock-bottom prices. Good blog!

  2. 2 Edward Olvera January 27, 2009 at 8:20 AM

    It’s good to hear that the real estate business is going well. If the economy doesn’t start to change will the real estate business go back to the same way? I hope things really do start to change and the economy continues to grow.

  3. 3 Andrew Curry January 27, 2009 at 9:10 AM

    This article was exciting for me to read becasue I am going to be going into the real estate business after I graduate. I have been questioning if it would still be a promising future. I had a feeling that the market was picking up becasue i work part time for a lending company that gives loans to people with really bad credit and we have seen a rise in the number of people that have been taking out loans. This article help reasure me that the market can pick back up. Hopefully it will continue to rise back up to where things were a couple years ago.

  4. 4 woltmon January 27, 2009 at 7:09 PM

    Well thats good to hear for all the people out ther looking to get some property. I know if i had the money to buy a house, now would be the time i would do it. Unfortunatley im not in a situation where i can do that at the moment.

  5. 5 Rafael Barrera January 28, 2009 at 4:04 PM

    That’s a good article and I ‘m glad to hear that people are buying more houses than we use to, but unfortunately if unemployment continues to rise than it’s just a matter of time before real estate follows and we will worse off than we started. No jobs=no money=no house.

  6. 6 Wiloni Robertson January 28, 2009 at 8:28 PM

    If this is the case,then this is a plus for people who still own homes in areas where houses are selling. If houses are being sold then the property value for particular neighborhoods are rising back to the value it was purchased for before this crisis began.

  7. 7 Samantha Arnold January 29, 2009 at 8:02 PM

    That is good that the numbers are going down. That means that people are buying homes. Hopefully that means that the economy is looking up but somehow i do not think it does. I think it just means that real estate is low right now so people are taking advantage. Hopefully soon it changes which will mean our economy is going up.

  8. 8 Arnulfo Solorio January 30, 2009 at 1:05 PM

    Hi all, it is good to hear that things are getting better out there , it is a very good news. All we need is people with a lot of money out there to start investing or spending so that the economy moves up. I know that there is a lot of people with plenty cash to invest but are afraid to do it due to the economy. Let’s stay possitive so more people follow us and soon everyone will be investing or spending. Good luck to all.

  9. 9 Ivy Quilala February 4, 2009 at 7:09 PM

    That’s great news that the real estate market is seeing an increase in home sales. How does that help the rest of us? Although sales are up, some are still finding it hard to purchase a home because lenders are extremely cautious nowadays to who they approve of new loans. I have some family and friends who have tried countless times to get approved on loan to buy a house but got denied. A lot of the sales in homes are purchesed from investors who the media say are renting the properties out to families who had lost their homes to foreclosure. The people benefiting from this are the realtors and investors. This doesn’t help unemployment.

  10. 10 Keith February 9, 2009 at 10:52 AM

    Unfortunately, I believe that the current “bouncing back” of the credit and real estate markets is an illusion; a response to a temporary fix of a fatal flaw in our economy. The “bubbles” are popping and we will land hard. One has to remember: what goes up, must come down.

    The odds are against President Obama and his administration for sure.

  11. 11 Kelsey Ryan May 4, 2009 at 5:05 PM

    I am really happy to hear this news. My dad has his own company for building homes and has really been tight with money for the last 6 months. People have just not been buying. Hopefully it will continue to get better!

  12. 12 Michelle V May 15, 2009 at 6:51 AM

    This is really good news because it helps to show that are economy is starting to come out of this recession. I know that my brother just bought a home and it a big contributing factor was if he was going to be employed next year. Since he is a teacher and got a pink slip when he found out that he was re-hired for next year it really helped ease his mind on making house payments and everything that goes along with that. With more people requesting loans for houses it means that their jobs should be becoming more and more secure which in turn will help our economy in terms of unemployment because people are showing signs of moving away from the scare of losing their jobs.

  13. 13 Craig K May 20, 2009 at 8:44 PM

    It is prime that the hosuing market has just began to pick back up for those of us in college now. There will be opportities everywhere to buy and resell, lease, and own new homes for those interested in real estate, myself included. Getting a real estate liscence may be a good move as the market moves out of a valley and moves up towards a peak.

  14. 14 Nathan Couch December 17, 2009 at 12:04 PM

    Like a year and a half ago my uncle purchased a house near the courthouse in Vallejo that he thought needed less work than it actually did which he found out after tearing off some walls.

    Shortly after he bought it the housing market dropped some more and he was considering getting a second house for a project but delayed progress on his current project dashed those ideas. Recently got all his tools stolen which halted all progress but at this point in the year obtaining a cheap project house is a lot harder to find.

  1. 1 Credit Crunch » Real Estate Crash may be Ending Trackback on January 26, 2009 at 11:32 AM

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