It's always inevitable when out and about, if someone knows or discovers you’re in the Real Estate business the first question is…”How's the market? Are homes selling?” It's usually something along that line of questioning.
Our society is concerned about the housing market because a good housing market adds stability to our economy. The housing market has always been a “gage” to how the overall economy is going.
There is a great article on Forbes about why the housing market will come back.
As you can see by this chart, there have been ups and downs as there always are in a typical year.
Sales activity is greater in the summer and drop off in the winter because people are out and about more in the summer. Although, there were a couple of months of increased activity due to the government tax break incentives. The one thing you can see is that homes are definitely still selling. Yes, sales may be down a bit, but it is a necessary correction from the over spending and “irrational exuberance” that we experienced over the last few years. Many people purchased homes they couldn’t afford and people were attempting to live beyond their “means”. Unfortunately, many of these people have lost their homes during the recent downturn in the economy.
However, several good things will come from the fallout within the housing industry. One of those being the lowering cost of homes. Ok, so this may not seem like a good thing if you purchased a home in 2006-2007 and are now trying to sell. Yet, the goal of owning a home was becoming something many could not obtain on a “median” income. The housing market, like all other markets, is constantly correcting itself. Historically, we have seen this type of correction in the housing industry and I am sure we will see it again in the future. Hopefully, we have all learned a valuable lesson through this housing crisis. The market will come back just as the article states, because ultimately, it is still the “American dream” to own your own home.