Moody’s anticipates a spring thaw for housing
The end of the housing correction is looking closer, as the job market finally turns the corner, investors step up home purchases, and the Obama administration revamps its foreclosure mitigation efforts, according to Moody’s Investors Service.
Moody’s noted that in March the job market turned in its best performance in three years, with payroll employment increasing by 162,000. While the market is still very much in transition, Moody’s says the March numbers mean it’s safe to say that the worst is over.
According to Moody’s report, investors are also boosting demand as they actively seek home purchases in many of the most distressed housing markets. Anecdotal evidence suggests that bargain basement prices on distressed homes have brought in large numbers of investors and previously slack markets are tightening up, Moody’s said, citing data from the California Realtors Association that shows the months of supply of available homes for sale is averaging around five, compared to seven a year ago and 15 at the market’s peak in 2007.
Source: DSNews.com, Carrie Bay, (04/15/2010)