While some analysts predict the housing market will not turn around until later next year, Seeking Alpha‘s Mike Kapsch lists several reasons it may return yet this year: More building permits were applied for in May than in the past 3 1/2 years, and the U.S. Department of Commerce upwardly revised April’s housing starts from 717,000 to 744,000; new home inventories are at record lows, which eases the pressure on home prices to continue falling, and led to average home prices actually rising slightly the last two months; the unemployment rate has dropped from 9.1% last August to 8.2% as employers have added one million new jobs this year; and mortgage rates are at their lowest point since long-term mortgages were first offered in the 1950’s, making it cheaper to buy than to rent in some areas. MHProNews has learned that in an election year, if the incumbent administration is seeking another term, job creation often happens, which is key to a stronger economy. Stay tuned.
