The long-battered housing market is finally starting to get back on its feet. Some experts believe it could soon become another housing boom, according to an article by CNN Money.
Signs of recovery are apparent in the recent spikes in home prices, sales and construction, while foreclosures remain down. The Federal Reserve is also pushing mortgage rates close to record lows.
Barclays Capital released a report predicting that home prices, which fell by more than a third in 2007, might be back to peak levels as soon as 2015.
Senior analyst Rick Palacios with John Burns Real Estate Consulting said, “We think the recovery is for real this time. If you look across the U.S. economy right now, there are only a handful of industries looking at 20-30% growth over the next 4-5 years, and housing is one of those.”
The housing rebound could have a ripple effect helping the entire economy grow at a much stronger pace, which will add to more demand for housing.
Source: CNNMoney.com, October 12, 2012