Housing Market Showing Signs of Stablization

Beyond more than just a few extra sunny days. There is reason for optimism for our local housing market. More buyers are getting off the fence and making offers. Albeit low offers but offers none the less. Nationally while overall new home starts were down, Single family homes were up 2% over the previous month. Locally the NWMLS is reporting a 21% increase in pending activities(which is offers signed around but yet to close). Financing conditions for jumbo loans are improving.

However we are not out of the woods yet foreclosures,short sales and REO properties continue to rise and consumers are not ready to pay anywhere near asking prices. But compared to November and December 2008. its a much brighter day. One drawback is many of the big construction lending banks still seem to be suffering from ringing of the hands, so this still creates an unstable climate for homebuilders.

I see the next 6 to 9 months as bringing more stabilization and increase in consumer confidence.