This article comes from http://www.themreport.com/ by Brian Honea that talks about the housing market and the health of the housing market.
"The national MiMi, which measures the health of housing nationwide, had a value for April was 84.1, which is on the outer range of stable (a value of between 80 and 120 is considered in the range of stable). Year-over-year, the national MiMi improved by 7.37 percentage points and has rebounded by 42 percent since hitting its all-time low in October 2010. April’s value of 84.1 was still significantly lower than the national MiMi’s all-time high of 121.7."
You can see by this statement that the housing prices hit there low in October 2010. Fast forward to today and you see that the housing values and inventory has changed. For example I do not see the amount of foreclosures I used to see. In the Phoenix area I noticed a lot of wholesalers( I do not recommend buying anything from them) are now selling more income real estate than flip real estate. That is because the equity in the foreclosures have gotten very tight and they have to look at future equity. In Cleveland I still can get some great deals for flip real estate.
“Among the four MiMi indicators, Purchase Applications increased the most in April, rising 1.77 percent from March and up 15.27 percent year over year,” Kiefer said. “The strong positive momentum in home purchase applications is a good sign for a housing market likely to post the best year in home sales since 2006. Despite strong house price growth, the MiMi Payment-to-Income indicator fell 1.05 percent in March, reflecting the impact of lower mortgage rates. If global factors like the Brexit put significant downward pressure on long-term mortgage rates, the U.S. housing market could benefit from increased affordability, helping to partially offset the impact of house prices, which are rising around six percentage points year over year nationally.”
What they are saying is that the economy as a whole has to get better before interest rates can go up. When the economy gets better and interest rates will go up, but people will still be buying because they have jobs and money to buy housing. I know that sounds simple but that is all the real estate market and any other market is based on THE ECONOMY. When it is better you can pay more and when it is not you cannot.
Getting real estate and holding it or selling it in any market is based on the ECONOMY. I watch and study the trends in my markets and other markets that might effect my market. Call Brett if you want to get into real estate or just looking for a great home to live in. Call 216-703-5740 Howard Hanna Ohio and 602-363-6551 West USA Realty Arizona