Harvard University researchers state that the United States housing market has likely reached bottom and will start to recover this year. Six years ago the country’s housing market fell into a deep slide, but Harvard’s Joint Center for Housing Studies says that the recent increase in home sales paired with the low quantity of available properties and rising rent demonstrates that there is a turnaround in housing prices.
The managing director of Harvard’s Joint Center for Housing Studies, Eric Belsky, said “There are lots of positive indicators here. A floor is beginning to form under home prices.” Boston is viewed more favorable too because the local economy is better and housing values did not decrease as much as other parts of the country. Boston-area home sales increased by 21.5 percent and median prices jumped 5.5 percent in May compared to figured from April, and both of these totals are significantly higher than the United States average.
Alex Coon, the market manager for Redfin (an online brokerage firm) in Boston said, “We are definitely going to be in front of the trend. I think 2012 is going to be the base that the recovery for housing is built on.”
Unfortunately, the recovery will not affect the whole country equally, low-income communities continue to struggle with high unemployment rates and too many underwater properties, where the house is worth less than its mortgage debt.
Harvard reports that there are more than eleven million US homeowners who owe more money on their mortgages than their homes are worth and there is also a large backlog of two million homes in foreclosure nationwide.
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Harvard center forecasts uptick across country, boston.com, June 14, 2012