Housing Market Makes Concrete Moves To Recovery
Reports have echoed the same message: this recovery is a true recovery.
Many have speculated about another bubble on the horizon, but activity in recent months tells a different story. That said, the recovery is happening at varying paces throughout the country. Metros in upstate New York, Southwest Florida and Bay Area California are leading the recovery, according to a recent survey by RealtyTrac.
“The U.S. housing market has clearly shifted to recovery mode over the past 18 months, with home prices consistently rising and foreclosure falling closer to pre-housing bubble levels,” said Daren Blomquist, VP at RealtyTrac with the release of Monday’s report.
Blomquist also said that the defining factors where the market is most improving were location and employment. Other factors helping markets to recover faster are rising inventory, declining numbers of underwater borrowers and pent-up demand.
Judicial status has been a major factor in markets that have struggled to recovery as quickly as other regions. States that rely on judicial process to complete foreclosures are slower to work through the process, slowing the recovery pace. Fortunately, the Federal Housing Administration (FHA) is allowing borrowers who went through bankruptcy, foreclosure, deed-in-lieu, or short sale to reenter the market in as little as 12 months, according to a mortgage letter released Friday.
Previously, borrowers who experienced a foreclosure would have to wait at least 3 years before getting approved for an FHA loan. Under these new guidelines, some borrowers may be considered much earlier than they expected.
On a local level, the Bay Area’s San Jose and San Francisco took the 4 and 5 spot on the top 100 largest metros leading the recovery. The Bay Area is also benefiting from strong employment, falling foreclosures and rising prices.