Is the rebound in housing for real? Really!

While our national real estate market has clearly been on the mend for at least the past year, building positive momentum month after month there are still many potential buyers who refuse to believe what they read, hear and see as it relates to housing.

These doubters are scared  to their own detriment. Which brings to mind this saying " The error of optimism dies in the crisis but in dying it gives birth to the error of pessimism. This new error is born, not an infant, but a giant." Which is exactly what has happened to many who now look at home ownership as high risk.

So while they will believe what they believe, lets look at some simple clear signals that in my opinion tell a very different story.

1-For the first time since the housing collapse most areas throughout the nation are experiencing home price appreciation. Many of these have realized year or year gains of 10% with estimates for continued positive gains ranging from 3-5% yearly for the next  five years. Home prices are going up for real which cannot be disputed.

2- Those who are still fearful have decided its better to rent then own. As a result of this phenomenon rental rates have been rising at double digits rates year over year. So it should come as no surprise that investors are buying up houses at a steady clip because they know its better for them to own and collect rent because there is no shortage of tenants.

3-  When you look at builders stock prices you will see that many have rebounded quite nicely the past two years and since the markets looks forward not backwards its been signally investors believe the turn around in housing is for real.

4- Another way to gauge the housing markets is to look at housing related commodity prices, for instance, look at lumber prices which collapsed in 2009 but have since rebounded to their old highs. If you do not believe the housing industry is in recovery how do you explain such price appreciation if there is no demand? Where is all the lumber going? What is it being used for if not the construction industry?

5-Yearly housing starts have risen to a little over 1 million, almost double from their lows of just a  few years ago but still half what they were at the height of construction. So housing starts are rebounding and have room to grow.

6- Another telling signal the real estate market is on our minds is seen in the rise of Internet searches concerning real estate which have doubled the last few years.

7- Then who hasn't heard the local stories about houses hitting the market one day, getting multiple offers the same day and going to contract. Its happening all over the country.

Granted these may not be the same indicators that the main stream media report on when talking about  the real estate market rebounding, but none the less they are worthy of consideration. Sooner or later all these bits and pieces of information will come together to form a real conclusion which will be " I don't want to say I told you so , but I told you so".

Peter ReJune
Realtor Broker Associate
Keller Williams Palm Beach
561-793-2493