Housing Report Says Market Has Turned A Corner

The Demand Institute is a non-profit organization that studies consumer demand. Their latest report, titled The Shifting Nature of U.S. Housing Demand, says the housing market has turned a corner and the recovery has begun. But while the report sees positive signs for housing’s future, it also says that this recovery will be unlike previous recoveries. According to the report, demand for rental properties will lead the recovery and help clear some of the inventory of existing homes for sale. But despite short-term demand for rental properties, the vast majority of Americans still say buying a home is the best long-term investment they can make and more than 70 percent of those intending to move in the next three to five years say they plan to purchase a home. The Demand Institute believes initial demand for rental properties will help clear inventory but won’t affect the homeownership rate in the long term. The report also calls for home prices to increase one percent during the second half of this year and post gradual improvements each year following, reaching annual increases of three to four percent by 2015. More here.

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