“2012 has been good to the US Housing Market. In most places home prices are up, demand is up, money is super cheap, and transaction volume is up. Banks are unloading their backlog at steady but not disruptive pace. Not surprising with the improving market conditions, new delinquencies are declining rapidly. The press and traditional housing market data folks have caught on.
The biggest negative one can say about today’s housing market is that inventory is super low. Our Market Action Index, which measures demand indicators relative to active inventory (supply) to an at-a-glance answer to “How’s the market?” has turned into “Seller’s Market” territory for the first time in years in many markets.”
the full article can read here
The real issue that is slowing our recovery is again the banking industry. After bailouts to save the large banks and countless opportunities for the mega banks to allow the market to recover, we still are seeing banks keeping their thumb on appraisers. Even though we have seen attempts to keep the appraisal profession independent, it is not happening.
Even as buyers are willing to pay more for property due to lack of inventory and low financing, the housing price recovery is being hindered by the over correction in appraisals. The market is being held back by the banking industry and their fear of another collapse. We have gone from a market controlled by the banks and the appraisers that unrealistically inflated prices with little justifiable data to support the pricing escalation to market controlled by banks and appraisers that is now holding pricing unrealistically low.
We saw the free market principals go by the wayside as the government caved in to banking demands in 2007. Now we are seeing the banks with even more power, larger corporations and less regulation than ever. Small and local banks are being swallowed up daily and we once again have a few banks running the entire country. There is no talk of this during the election cycle and politicians are too afraid to step on the corporate toes when they are beholden to their campaign donations.
Unfortunately, politicians are never going to allow the free market to clear out the housing back log and they are never going to allow the largest banks to fail even though many are insolvent. If the large banks would have been allowed to fail in 2007 we would have a better economy, better housing market and many more jobs. The government has fallen prey to the smoke and mirrors of economics and we are all suffering because of the short sited decisions that favored Wall Street over Main Street.
Chris LaHaie Realtor
List with Chris
Prudential Americana Group
Las Vegas and surrounding areas.