Is the five-year slump finally over? In May, the Southland saw a sharp uptick in both housing prices and the number of homes sold. Sales are up over 20 percent from a year ago, with the median price jumping 5.4 percent. This reflects the national picture as well.
What’s behind the good news? Several factors: near record low mortgage rates, declining foreclosures and a general perception that the housing market has fallen as low as it can go are spurring previously gun-shy buyers to take the plunge. But if you’re on the fence, you might not want to wait too long – Freddie Mac reports that mortgage rates are starting to inch up as well. Are hard times finally over for the housing market?
Stuart Gabriel, director, Richard S. Ziman Center for Real Estate at UCLA and Arden Realty Chair and Professor of Finance, UCLA Anderson School of Management
Andrew LePage, analyst with Dataquick Information Systems