As we've all seen over the last several months, more and more good news is coming out regarding the housing market which is also closely related to an improving economy. Today, both go hand in hand and both need to work together in order to get things back to pre-crisis levels. As long as the economy stays strong so will the housing market.
Economists feel that, based on current data, the housing market has returned to its previous pre-crisis level by 30 percent. Obviously there's still a long way to go, but it is a step in the right direction.
Within the last couple of weeks Bank of America announced a pilot program to help distressed homeowners stay in their homes by becoming tenants of BofA when they hand back their mortgage to the bank and become renters.
Additional recovery news is the fact that the pace at which banks are processing foreclosures and short sales is allowing for faster resales of foreclosed homes which is helping to whittle down the available foreclosure inventory which is also stabilizing home prices.
Also, previously owned home resales have hit a 5 year high and permits for new home construction have both increased, but all this information still begs the question; when will the housing market return to full strength?
Based on current data, the answer seems to be sometime in 2015 as long as the economy doesn't deteriorate and if the housing market can handle, with efficiency, the next wave of foreclosures that are poised to arrive this summer.
Yes, this summer will be a true test for the housing market and it could be a bumpier ride than a back country dirt road, but let's hope that this rough road will lead to clear sailing in the near future.