Is the market really turning around?

In January, pending home sales declined however, the data is based on contracts signed in January not closings.  According to Lawrence Yun, NAR Chief Economist, “The housing market is healing with sales fluctuating at times, depending on the flow of distressed properties coming on the market,” he said.  He expects the recovery will be a straight upward path because there is still an elevated level of shadow inventory of distressed homes and interest rates are still historically low.  

According to the Wall Street Journal, there are plenty of signs that the housing market finally bottoming out.  If investors and buyers continue to take advantage of the most affordable housing in decades, prices will probably bottom out in 2011.   

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