From month to month, home values just increased more than they have in the last six years! Zillow just released a report that home prices rose 0.5% from February to March 2012. They went further to say that this was the largest month over month increase since the housing bubble burst six years ago.
What does this mean for you?
We all know one month does not equal a trend, and it doesn’t in this situation either. However, it’s a good sign. People and the economy thrive on positive news like the fact that home prices rose more in March than in any single month of the last six years. While we cannot say this assures that prices will increase in April, it shows that the market is starting to stabilize and rebound.
We know there are plenty of distressed real estate sales out there, but in many situations there are more buyers than there are properties. The reason we have not really shifted into a sellers market is that the buyers who are out there are still scared. They want to buy; but not if they have to pay top dollar. They are worried that the bottom may not have been hit and they may be a few months early.
News like this will help build much needed confidence that the time to buy is now. As confidence builds, we will get an influx of more positive news. Prices will hopefully continue up, signifying that the bottom was hit and we are now growing. This will also in turn cause other industries to grow as well, as consumers start spending more. As other industries grow, they add jobs, which is what we are all after.
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