According to a recent Wall Street Journal article the housing market as turned and moved beyond the doomsday predictions from experts.
S&P’s David Blitzer said that he first reported monthly increase in the slow-moving S&P/Case-Shiller house-price date after seven months of decline.
May 2012 felt a ten percent increase from the previous year in existing home sales. Many of the homes purchased by investors who plan to rent them out now and sell them later. Moreover, the fraction of homes that are vacant is at its lowest level since 2006.
Economists are not always correct in their predictions, but a Wall Street Journal survey of forecasters found 44 believe the housing market has reached its bottom and only 3 forecasters disagreed.
The housing market is still lethargic despite the low mortgage rates. However, the upturn is an important milestone. Many believe that from here on, housing is unlikely to drag the economy down further.
Of course, many are reticent about celebrating the housing upturn and smartly so. There are still many factors that can cause the market to go wrong.