Fed Reserve Board: Real Estate Market may be stabilizing
By: Dennis Norman
Today the Federal Reserve Board, in it’s monthly Beige Book, said about Real Estate and Construction that “housing markets remained depressed overall, but there were some signs that conditions may be stabilizing.”
This is encouraging and is consistent with my recent comments in posts that I think perhaps we are nearing the bottom of the market. As I have said before I think it is going to be a slow recovery, but stabilizing the market would be a huge step in the right direction.
The report went on to say that many of the Federal Reserve Districts said homebuyer tax credits, low mortgage rates and more affordable prices led to a rising number of potential buyers. This is encouraging news for the real estate investor; buyers are starting to come off the sidelines.
New home construction activity fell further, but as I have been saying, this is a good thing, as far as the market is concerned. There is still plenty of new homes for sale out there.
The Fed report also indicated that home prices continued to decline (you probably already had guessed this, huh?) in most Districts, although a few reports noted that prices were unchanged or that the pace of decline had eased. Again, it’s encouraging that the price decline train may be running out of steam.
Are we at the bottom yet? Stay tuned…..
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