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bemildred

(90,061 posts) Thu Oct 18, 2012, 09:35 AM Oct 2012

Housing industry recovering faster than many economists expected

Source: LAT

Housing is snapping back faster than many economists had expected, with home builders stepping up production of new homes nationally and fresh foreclosures in California falling to their lowest level since the early days of the bust.

Demand for housing has surged as interest rates have plummeted and home prices in many markets appear to have bottomed, particularly in states such as California where inventories of foreclosures and other lower-priced homes have sunk. The turnaround in prices and record-low supply of newly built homes also are luring builders back after six years of pain.

"The numbers are strong in September, and that is definitely a positive sign," said Celia Chen, a housing economist with Moody's Analytics. "It is confirmation that housing is lifting off the bottom."

Residential construction starts rose 15% nationally last month from August to their highest annual rate in more than four years. A separate report showed that the number of troubled California borrowers entering foreclosure hit its lowest level in the third quarter since the dawning of the mortgage meltdown.

Read more: http://www.latimes.com/business/realestate/la-fi-housing-market-20121018,0,4412877.story

7 replies

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Housing industry recovering faster than many economists expected (Original Post) bemildred Oct 2012 OP

Not everywhere Glitterati Oct 2012 #1

Welcome to Republican-land. bemildred Oct 2012 #2

Funny Rabid_Rabbit Oct 2012 #4

It's certainly picking up smartly in Richmond, VA, and we felt the downturn less than lots of other Nay Oct 2012 #3

Not really. Most of the homebuyers are first timers who are taking advantage of new loans. progressivebydesign Oct 2012 #6

Wow. That's certainly not the case here, as far as the loan atmosphere. We have no debt at all, Nay Oct 2012 #7

Going gangbusters on the West Coast. progressivebydesign Oct 2012 #5

Glitterati

(3,182 posts)

1. Not everywhere

Reply to bemildred (Original post)

Thu Oct 18, 2012, 09:42 AM

Oct 2012

There is absolutely no construction going on here (suburbs of Atlanta). Zero. Zilch.

bemildred

(90,061 posts)

2. Welcome to Republican-land.

Reply to Glitterati (Reply #1)

Thu Oct 18, 2012, 10:12 AM

Oct 2012

Sorry, I do sympathize, it's not like it's really cooking here, I don't know that we even want that, but it is picking up, prices are going up, not down, foreclosures are declining fast, and there are more than bottom-feeders in the market now. It will get to Georgia too eventually.

Rabid_Rabbit

(131 posts)

4. Funny

Reply to Glitterati (Reply #1)

Thu Oct 18, 2012, 12:16 PM

Oct 2012

that I had the exact opposite impression the other day. I was driving through a part of Gwinnett county (NE of Atlanta) that I do not regularly get to and found 3 previously abandoned sub-division sites buzzing with activity. At least 50 houses standing, with cars in the drive ways, which were not there a year ago.

Nay

(12,051 posts)

3. It's certainly picking up smartly in Richmond, VA, and we felt the downturn less than lots of other

Reply to bemildred (Original post)

Thu Oct 18, 2012, 11:56 AM

Oct 2012

parts of the country. However, I do not think this is any sort of long-term recovery of any kind, because wages are still stagnant and job security still is not good, and the long-term fact that an economy based on a continual supply of cheap oil cannot, and will not, continue.

I think the uptick is mostly due to buying by folks who had already had money set aside to buy, but who were waiting for what they thought was the true bottom to the housing market.

progressivebydesign

(19,458 posts)

6. Not really. Most of the homebuyers are first timers who are taking advantage of new loans.

Reply to Nay (Reply #3)

Thu Oct 18, 2012, 01:36 PM

Oct 2012

the loans out there, while still conventional, have many programs for buyers with 3.5% down, or some even with no down. Most of the people I know who are buying are first time buyers, or people just wanting a different home.

The ripple of the improved market WILL help the economy and create a lasting improvement.

Nay

(12,051 posts)

7. Wow. That's certainly not the case here, as far as the loan atmosphere. We have no debt at all,

Reply to progressivebydesign (Reply #6)

Thu Oct 18, 2012, 03:48 PM

Oct 2012

and have stratospheric credit scores, and we had trouble buying a second small house for our son and his family to live in. We had 20% down and everything else. It may be different in your area, of course.

progressivebydesign

(19,458 posts)

5. Going gangbusters on the West Coast.

Reply to bemildred (Original post)

Thu Oct 18, 2012, 01:34 PM

Oct 2012

Most of the people I know in real estate are working 7 days a week. the title companies and loan offices are hiring like crazy. And my friends who've been trying to buy a home have loans, but cannot win the bidding wars on houses. In Eugene, Oregon, for example, last month nearly every home under 400k was pending, and is now off the market. Slim pickings from California to Washington.

In my suburb near Seattle, they just reported that this was the record month of building permits.. 100 new ones in September.

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