Today’s blog post centers on the seemingly infinite and varying number of opinions about the housing industry. Article after article in the mortgage and finance industries keep asking the same questions: Has the housing recovery happened? Is there going to be another housing bubble? Optimists, skeptics and realists are all actively putting their informed opinions out there, and it is the task of each of us to decide what side of the fence we fall on.
A Bloomberg article today read, “Colony Capital LLC’s Tom Barrack said U.S. homes are in danger of becoming overvalued as low borrowing rates and an improving labor market fuel demand. Federal Reserve Chairman Ben S. Bernanke’s efforts to bolster the U.S. economy by buying mortgage bonds and pushing down borrowing costs has fueled demand for home purchases amid a tight inventory of properties for sale.”
A Business-Insider.com article today is titled “Keith Jurow: The US Housing Recovery Is A Mirage And A Serious Delinquency Crisis Is Coming.” Citing a 20-city Case-Shiller index upswing to 8.1%, housing experts were attributed as declaring that this was confirmation that the housing recovery is firmly in place. The article included Zillow as projecting rising home prices across the board. But housing analyst Keith Jurow concludes “that the much-vaunted housing recovery is actually a mirage and that a new delinquency crisis is coming.”
The Obama administration’s housing scorecard has homeowners gaining trillions in equity. Citing that same Case-Shiller Index rise and including the FHFA purchase-only index, the message is quite clear that recovery is here and it’s rocketing its way forward.
It can be tricky to navigate such a vast sea of information in order to gauge for yourself how well the housing recovery is doing. In a day and age when everyone has a voice and an almost unlimited platform from which to share it through social media, blogs, micro-blogs and traditional periodicals both online and in print, the number of dissenting opinions can seem cacophonous.
Most seem adamant, regardless of any overtly optimistic nature, that the recovery is in full swing. Credits and validation are coupled along with these opinions to bolster the trust one puts in its sources. But if social media has taught us anything, it’s that frequently the most trusted sources of information are those who are most well-known to us. So in that vein, we turn to you. What is your perception of the housing recovery? Do you see improvements in your specific industries? Are you working with more clients that bear the signs of optimistic growth and engagement? Or do you think it’s all a bunch of hot air? We’d love to hear it.
Leave us your thoughts below.