The housing market is showing plenty of strength, from sales and price increases to a decrease in foreclosures.Â
â€œThere are almost no housing market indicators showing weakness,â€ says Mark J. Perry, a professor of economics at the University of Michigan-Flint.Â
Among the recent bright spots:Â
Still, the housing market is about 52 percent as strong as it was prior to the 2008 housing crash, according to one housing index by Trulia, which factored in data from the National Association of REALTORSÂ®, U.S. Census construction, and Lender Processing Services.
The housing market faces challenges, such as the number of home owners still facing negative equity, inventories of for-sale homes remaining constrained, and mortgage credit remaining tight and preventing some buyers from qualifying for a loan.
â€œAt this pace, â€˜normalâ€™ is still two or three years away,â€ says Jed Kolko, Trulia chief economist.Â
Source: â€œThe Housing Marketâ€™s Long-term Silver Lining,â€ MarketWatch (Jan. 25, 2013)