Here are some of the latest quotes by the economic experts regarding the housing market in the U.S.:
“There are growing signs that housing market activity may be closer to a trough. The decline in mortgage rates over the past couple of months has led to a small improvement in affordability and a rise in home buyer sentiment, albeit from a record low. Corroborating this, mortgage applications for home purchase have ticked higher in the past couple of months, which should feed through to higher sales.” Sam Hall, property economist at Capital Economics.
Let’s be clear: Even if home sales have indeed bottomed out, it doesn’t guarantee that home sales will have a swift recovery. This is what we can expect when home prices soared 41% in just over two years and mortgage rates doubled in a 12-month span.
Just because U.S. home sales might be nearing a bottom doesn’t mean we should be looking at the bottom for U.S. home prices.
“Affordability will remain stretched. We think house prices will need to fall another 6-7% to bring affordability back to a level that will support more normal levels of demand.” Capital Economics researchers.
The reason the housing market activity could be on the mend is because affordability has “depressurized” a bit lately. Over the past two months, the mortgage rates decreased, and incomes increased, helping to “depressurize” the market. Recently, Mark Zandi told Fortune:
“Housing demand is close to a trough; housing supply has yet to hit bottom; and house prices have a way to go before reaching their nadir. The reason: housing affordability remains out of balance.
In short, real estate remains a solid investment for anyone looking to grow their wealth for retirement. Whether you are a buyer or an investor, you can never go wrong with Sun Pacific Mortgage’s private loans to help you along the way. Visit our website at www.sunpacificmortgage.com or give Sun Pacific Mortgage a call at 707-523-2099 to discuss our available privately funded loans or how you can become part of our Team of Investors.