Spring is the Time When Many Home Buyers will Wake up and Smell the Bargains
by Donny Mak
on Thursday, March 1st, 2012 at 1:00am.
Spring is typically the strongest season for home sales, and in 2012, we’ll be entering spring on the upswing.
Home sales have grown by 13 percent since mid-2011, with re-sales at their highest levels since May 2010. More first-timers are buying as well. Combine this positive data with the fact that the overall supply of homes dropped to a seven year low, and there’s a formula for some upward movement beginning in March.
Another key indicator of spring and summer growth is in the results of homebuilders’ surveys in January that point to an increase in permits to construct single-family homes.
Even the jobs picture supports this improvement prediction, as hiring has picked up. Less unemployment has a huge impact on sales. In January, employers added 243,000 new jobs − the most in nine months – with the unemployment rate falling to a three year low of 8.3 percent.
Cautious analysts continue to remind the market that the depth of housing market downturn is not something that will turn around in a season or two, or even a year or two. The industry could be years away from full recovery, but the one-day-at-a time view is making people hopeful.
If Spring 2012 is as positive as many experts believe it will be, then it won’t just be the robins who are singing.