Housing Bubble

While Many Real Estate experts are saying that what is forming is a new housing bubble, others are saying that the increased home sales for February in the U.S. is a positive sign that the market will be surging again. According to the National Association of Realtors, home sales in February 2010 rose 8.2 percent. Analysts had expected sales to continue to flat line, as credit for too many today is limited to the payday loan. This was in spite of the tax credit for home buyers. The driving forces for sales increases in fall 2009 was the tax credit, but the New York Times says that it has been a lesser force this spring.

Do February home sales equal a second surge?

National Association of Realtors Chief Economist Lawrence Yun says it is possible. The market would be on the same track as U.S. employment is there was a surge in the Real Estate market a second time, which has shown to be improving, even though there is still quite a distance to go to the break-even point. The Institute for Supply Management also shows that non-manufacturing exports and jobs are rising. This unfortunately doesn’t consider those who are perpetually “unemployed,” who have a hard time just making ends meet and must occasionally rely on payday loans.

February home sales: Good news for dark times

Let’s be clear: the home sales increase in February is relative, for the U.S. real estate market is still in deep. Foreclosures are still rising constantly. The February home sales report is a glimmer of hope for everyone. Many areas in the country that experience poor weather may have showed an uptick; according to the Times, the Northeast and South increases nine percent in sales, the ones that were hit hard by snow.

Sources:

New York Times