As per a recent survey by Trulia Inc. and RealtyTrac Inc., the real estate/housing market won't recover until 2014. The survey took place in the month of April and the respondents were the homeowners and renters based at different states.
Why won't the market improve?
The housing market is still quite weak. The demand for a home loan still remains low and it has become quite difficult to qualify for a loan. Though the rates and home prices are at record low, still it's failing to boost the demand for properties. The expiration of Federal Tax Credit last year has also added to this. Moreover, a large number of properties are facing foreclosure which will further have a negative affect on the property values.
What has the government done in this regard?
Though the government has taken various steps in order to improve the market situation, 45% respondents taking part in the survey, has said that the government isn't working hard enough to prevent foreclosures. However, there were 17% respondents, who said that too much is being done in this regard. Moreover, the Home Affordable Modification Program, which was initiated to stop foreclosures, has resulted in about 587,000 permanent loan modifications, short of its goal of up to 4 million.
When will the real estate prices start rising?
It is expected that the real estate prices will start rising gradually through 2012. However, the growth rate will be slow and won't reach about 5% until 2013.
Most of the mortgage experts believe that the real estate market rebound will be a gradual but long process. It will take some time in order to see the signs of price stability in the housing market.