Some signs of hope for the housing market?
We’ve all been innundated lately with the grim news that housing prices are falling, and that homes aren’t selling.
Sometimes, you get desperate for at least a glimmer of hope.
Here’s that glimmer, courtesy of First American CoreLogic: The real estate information company says that even though housing prices are still falling, they’re falling at what looks to be a slowing pace. Now, that’s not the kind of news that makes you jump up and down in joy. But it’s at least a glimmer of good news.
According to First American CoreLogic, home prices across the nation fell 9.6 percent in November. That doesn’t seem like particularly good news. But housing prices, according to CoreLogic, fell 10.4 percent in October and 11.2 percent in September.
In this struggling housing market, we’re all looking for good news wherever we can find it. Most housing industry analysts predict that the residential housing market will begin showing signs of life again in mid- to late-2009. That seems like a long time to wait. But the data from First American CoreLogic at least gives one hope that maybe, just maybe, the housing recovery might begin a bit sooner.
But no matter when the housing market does begin its turnaround, I sincerely hope that we’ve all learned a lesson from this crash. During the housing boom, which ran roughly from 2001 through much of 2006, housing prices rose too high, too quickly. This boom market, especially in areas of California, Nevada and Florida, was unsustainable. Housing prices had to eventually drop. It was getting to the point where too many people were unable to afford homes in these areas.
Let’s also hope that mortgage lenders have learned their lesson. Not everyone should own a home. Some people’s financial situations mean that they are better served by renting. Let’s hope, too, that mortgage lenders will not go back to the risky adjustable-rate and interest-only loans that have led so many homeowners to foreclosure.
This past year was certainly a tough one. And I’m sure few will look back on 2008 fondly. But to make sure that 2009 and beyond are better years, the housing industry — and everyone involved in it — will have to make some serious changes in the way it operates.
