The statistics are accumulating to build evidence that a housing recovery is underway, The New York Times reports (June 27, 2012).
Prices are rising in many communities, including Sarasota. Sales are increasing. Home builders are raising roofs again.
Yes, recovery likely will be at a snail's pace, and not all houses will bring higher prices. Many households owe more than their homes are worth and face foreclosure. There's also the ever-present danger that something untoward could happen to douse the positive signs in the overall U.S. economy as well as in housing.
Even so there are signs of life in Sarasota and throughout the industry.
“It feels very much like we’ve hit a bottom and we’re starting to come off of that bottom,” Stuart Miller, chief executive of Lennar, a major national home builder based in Miami, told The New York Times.
The trend is clear in the data, as I noted in my blog entry yesterday focusing on the recent S.&P./Case-Shiller index report that sales prices for existing homes rose in April for the first time this year.
Also in Sarasota, inventories are at 10-year lows, according to the Sarasota Association of Realtors, which announced that "the available inventory of homes on the market dropped to a new decade low of 3,917, dropping 8.5 percent from the April figure of 4,283. High sales and low inventory has also dropped the months of inventory to new 10-year lows. The May figures are 4.3 months of inventory for single family homes and 5.2 months inventory for condos. Months of inventory represents the time it would take to deplete the current inventory at the current sales rate."
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