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: 2,018 About Cari: I am pleased to be with RE/MAX Northwest, a highly respected and innovative real estate firm in Olym...
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