Want some good economic news? Sure you do. Here it is: the nation’s long housing bust has ended, according to The Wall Street Journal. In its story “The U.S. Housing Bust Is Over”, the WSJ says: “The housing market has turned–at last …. the numbers are now convincing.”
From here on, housing is unlikely to drag the U.S. economy down further. It will instead reflect the strength or weakness of the overall economy: The more jobs, the more confident Americans are about keeping their jobs, the more they are willing to buy houses.
But the WSJ adds if the market is flooded with the large inventory of unsold homes that are currently underwater or facing foreclosure, it “could reverse the recent rise in prices.”
Obviously, all housing markets are local, and some parts of the country felt the bust more than others. For them, a declaration that “It’s Over” may be met with a fair amount of skepticism. Still, the WSJ’s most recent survey of economic forecasters showed that all but three of the 47 experts believed the housing market has reached its bottom.
Let’s hope so.