John R. Wood

According to an online article published today by the National Association of REALTORS^® (NAR), there are several recent indicators that suggest the real estate market is on the mend.  Experts say that in 2012, recovery will center around a market stabilizing before entering a gradual, albeit very slow, recovery. However, the tone is optimistic and positive, more so than it has been for years in the housing market.

Here are some positive signs to track in 2012:

Home sales: Existing home sales are expected to increase 12 percent this year, following a 2 percent jump last year, Moody’s Analytics predicts. The signs are already showing: In November, pending home sales — a gauge for future home buying — reached its highest level in 19 months, NAR reported.

New-home market: Coming off of what could be considered the worst year for new-home building ever recorded, the sector is expected to bounce back this year. New-home sales and starts were already showing a rebound in the last few months of 2011. Moody’s is predicting that single-family housing starts will increase 37 percent this year, and new-home sales will soar 74 percent.

Housing stocks: Investors are starting to get optimistic about the possibility of a rebound too, and are turning to home builder stocks. These equities have recently outperformed the broader stock market and the S&P 1500 homebuilding index has increased 38 percent since mid-October, USA Today reports. 

Consumer confidence: With mortgage rates at record lows and housing affordability high, about 71 percent of Americans say now is a good time to purchase a home. Also, more Americans are optimistic that home prices will rise over the next year — about 26 percent say prices will rise in 2012, an increase of 4 percent over the last survey, according to Fannie Mae’s December National Housing Survey

To search for homes for sale in Naples, Estero, Bonita Springs and Marco Island, FL, click HERE!

John R. Wood Realtors – The Symbol for Local Knowledge

Source: Housing Outlook Is More Upbeat, Consumers More Confident, Survey Says