Has the Housing Market Recovered?
Many think that rising home prices are a strong indicator the housing market is on its way to recovery. Jonathan Miller, CEO of appraisal firm Miller Samuel, strongly disagrees.
“Income is flat, credit is tight, and unemployment and underemployment are unacceptably high,” states Miller.
It is believed that investors are a major contributor to home prices rising 12% nationally. The National Association of Realtors reports that 38% of existing home sales are paid for in cash by investors, not homeowners.
Ultimately, Miller and many other industry experts believe that until unemployment drops back down to under 6%, the housing market will not fully recover. The current indicators are weak signs of recovery that can be attributed to factors like investors and cash purchases increasing demand, not the average homeowner.
If interest rates continue to increase, as expected, many of these average homeowners will drop out of the market entirely. Be a diligent borrower and get pre-approved under the current market conditions. If you were pre-approved back in May, you may not qualify for the same amount or type of property. Seek out a mortgage banker today to obtain a legitimate, full mortgage pre-approval.