When is the all going to get better?

Apparently looking for signs of a housing recovery might be like watching grass grow.  "The good news is that we're in a recovery...but we've got a ways to go so says Jed Smith who is the director of research for the NAR.  He says that distressed home sales are going to continue to account for 35% of all home sales for the next 2 to 3 years.  Foreclosures and short sales are not going to get worse, not going to get a lot better.  A promising sign for housing:  "We've got 10 million more households now than we did 20 years ago," which provides some pent-up demand when the market accelerates.  The shadow inventory of homes that have been foreclosed upon but haven't yet been listed for sale has contributed to consumers' uncertainty, he said, as prospective buyers don't know whether a foreclosed in their market or 1,000 homes may be hitting the market.  There is a huge overhandg of show inventory that's going to come into the market.  Not every city is Phoenix or Las Vegas.  The homeownership rate may overcorrect on the down side, sinking below the traditional standard of 64 to 65%, but once home prices stabilize...and consumers realize home prices have stabilized..there will be a resurgence in the homeownership rates.  The good news is that we're moving in the right direction.  The bad news is we don't believe that's going to be in the offing in the next few months. 
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June 21 2011 - US
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Profile picture for teedd
NAR just reported home sales 3.8 %down in May. Is it the right direction? 
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June 21 2011
Profile picture for Pasadenan
Yes, the right direction for a recovery is 15% fewer annual sales, and 20% lower sales prices.  We are still in a "bubble" market, and a "recovery" means get rid of 600k Realtors®.
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June 21 2011
 
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