It may be that the tide of economic bad news is ebbing and some stabilization is returning. Monthly payroll numbers have been inching upwards and fewer people are filing for unemployment on a weekly basis. Average number of hours worked are increasing as well. And that usually means that businesses at some point will have to hire more workers. This doesn’t mean that the economy will become robust in the near future but a slow and steady recovery, which will be healthier in the long-term, may be underway.
Employment confidence is the key to a rebound in the housing market. The number of homes on the market far outnumber the pool of buyers. And I have a sense that many potential buyers who are working, feel that prices may still come down. So they are holding off on purchasing a home. Although mortgage interest rates are still very low, over the past month they have been climbing upward. At some point next year that alone may help push buyers into the market.
And despite the tremendous hit that housing values have taken over the past several years, a recent study by Fannie Mae shows that The American Dream of Homeownership is still alive. More than 51% of the people said that the housing bust did not change their willingness to buy a home. Here’s a link to the CNN Money.com story.
I’m looking forward to a stronger (not difficult when compared to the past few years) housing market but one where the buyers will still have the advantage and buyers will have to price their homes competitively. To view local listings and to view all Maine listings, visit Kezar Realty.