Lower prices, record low mortgage rates, rising rents and an improving job market appear to be bringing out potential buyers. Foreclosures are leading home buyers and investors to grab bargain-priced homes.
Some people seem to think that prices won’t drop much further. In some cities, prices have begun to tick up, as they have here in Bellingham the past few months. Price increases have occurred both in some hard-hit areas, such as Phoenix, and some still-thriving areas like New York and Washington.
Nationally permits to build houses and apartments rose in February to their highest level since 2008.
According to earnings reports from two big banks showed more people are taking out mortgages. JPMorgan Chase gave out 6 percent more mortgages from January through March than it did a year ago and had 33 percent more applications. Wells Fargo gave 54 percent more mortgages and had 84 percent more applications.
Like many people I believe a full recovery will depend on continued job growth and that is still tenuous.
I had a client put offers on 3 homes last week, one had 10 offers, another 9 offers and another 6 offers.
What do you think is there a recovery happening?