Home Depot is in the news a lot these days as a major indicator of the Real Estate Market recovery or bust. CNBC reports regularly on the housing market based upon what they see in Home Depot quarterly sales, such as in this article about Home Depot’s last quarter rise of 0.8% in July alone. The idea is that home owners are investing more money in their homes as a result in hopes that recovery of the housing market is imminent.
While I believe optimism is in order in terms of housing sales, we are still not out of the water in housing prices for home owners wishing to sell their property. Investors are more and more coming from foreign firms rather than local businesses, which is indicative of the unease in our local buying climate. As in this article from CNBC’s Reality Check by Diana Olick, we not out of the water yet. Sure, foreclosures have slowed for the moment, but they are scheduled to pick up again in the next quarter or two at a rate of 5.7 million delinquent loans.
What this says is that we cannot base all of our recovery indicators on Home Improvement warehouse sales. We must, instead, look at the home sales overall to get a picture of who’s buying and why. I would still like to see a larger percentage of local investors and new home owners buying consistently before I give a two-thumbs-up for housing recovery. I am optimistic that we are on the edge of recovery, but I am not hanging out all the flags just yet.
Having said this, local investors and new home owners may not have a better chance before interest rates rise, to get in on a buyers’ market.
Author:Cari Schwisow Phone: 360-878-5401 Dated: August 31st 2012 Views: 2,022 About Cari: I am pleased to be with RE/MAX Northwest, a highly respected and innovative real estate firm in Olym...
View our latest blog posts in your RSS reader. Click here to access.
RE/MAX Northwest real estate brokerages employ full time, highly productive, experienced and educated brokers focused on serving their real estate clients and communities at the highest possible level to create the best possible result...even in these rapidly changing times and economy. We provide accurate, detailed information, data and advice so that our clients make informed decisions. We're committed to life long relationships founded in integrity and mutual respect. We're here to help...at all stages in all situations.
It can be a little scary to check the markets right now, wouldn’t yo
""01/06/2015 - Reviewing Vicki McLellan, email@example.com Bought a Single Family home in 2014 for approximately $250K in Olympia, WA. Local knowledge: Five Stars Process expertise: Five Stars Responsiveness: Five Stars Negotiation skills: Five Stars Buying our first and second homes with Vicki were wonderful experiences. She has an APPARENT wealth of knowledge from her experience and was extremely proactive and diligent in helping us navigate the home buying process (one of which was a tedious short sale). I've also referred several friends to Vicki who all ended up buying with her help and they had nothing but good things to say. if you need an excellent, patient and pleasant realtor then you need Vicki.""