Housing Scorecard: Market Gains, But Still Held Back
Housing Scorecard: Market Gains, But Still Held Back
The housing market continues to make strides toward stabilizing, yet the outlook remains mixed, according to the June Housing Scorecard released by the Obama administration.
Home equity rose to its highest level since the second quarter of 2010, increasing 7.4 percent to $457.1 billion in the first quarter.
Home sales are also posting big gains. Sales of previously owned homes rose 9.6 percent in May compared to year-over-year data. New-home sales, meanwhile, reached its highest level in more than two years, according to the June Housing Scorecard.
Inventories of for-sale homes reached their lowest rate since October 2005 with a current sales pace of 4.7 months. A six-month supply of homes is typically viewed as a balanced market by most economists’ standards.
While the market is showing positive signs of stabilizing, foreclosures continue to hamper progress as well as the large number of home owners who are still underwater, owing more on their mortgage than their home is currently worth.
“With so many home owners still underwater on their mortgages and struggling to move into more sustainable loans, we have much more work ahead,” says Erika Poethig, U.S. Department of Housing and Urban Development acting assistant secretary.
Source: June 2012 Housing Scorecard
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