I was looking online for some ideas for this blog and ran across the headline "Housing Offers Hope for the Economy" and wanted to read it. I am copying the article here. I found it on Realtormag.realtor.org which had borrowed it from The New York Times. I hope you find it as interesting as I did.
As home prices continue to rise in most markets and sales activity
looks to maintain its momentum, the supply of houses for sale — both new
and resale — is as low as it has been in decades.
"We had 48 months of depression in the housing industry," notes Karl
E. Case, co-developer of the Standard & Poor’s/Case-Shiller home
price index. "There is no question that we have turned what seemed to be
a headwind into a tail wind."
If his assessment proves true, the economic benefits will be
significant with regard to everything from carpet and furniture sales to
state and local government spending.
Looking ahead, there may be pent-up demand for housing not from
people without it but from existing home owners who want to move but
have been waiting on the sidelines until the economy and the real estate
sector showed sustained signs of improvement. These consumers might
view breaking even on their current residence as an indicator that it is
time to trade up.
The National Association of REALTORS® notes that the proportion of
distressed sales has been declining slowly as of late, as has the
discount that they offer. In December, according to NAR, 12 percent of
sales were said to be of foreclosed homes and an equal number were short
Those figures should continue to decrease, as evidenced by Moody's
recent report that the shadow inventory of homes with foreclosures
pending and houses already owned by banks but not on the market is
Source: "Housing Offers Hope of Strength in the Economy," The New York Times (Jan. 25, 2013)