The California Association of Realtors (C.A.R) recently published the “Top Ten Reasons: To be optimistic about the housing market”. The following are the ten reasons:
- Home values have been rising.
- More new households are forming.
- Foreclosure starts are falling into pre-housing-bust levels.
- Interest rates should remain low through next year’s selling season.
- Loan demand for home purchases is climbing.
- More Americans say it’s a good time to sell.
- The number of improving housing markets is going up.
- Housing starts are picking up as builder confidence increases.
- As housing values rise and equity returns, fewer homeowners are underwater.
- Real estate is contributing to an overall economic recovery.
The C.A.R. list above appears to be overly optimistic. The recent past has shown some strong gains in the housing market. However, the C.A.R. list above does not explicitly address how foreign investment has affected the California real estate market and how the recent bump in interest rates have affect housing sales.