Real Estate Outlook: Bottom in Sight?

This article by Kenneth R. Harney points out several sources of good news in the housing market. Two weeks ago, chief economist of Moody's Economy, Dr. Mark Zandi, surprised analysts by announcing that "the bottom of the housing downturn is in sight for the nation."

A few days later the Wall Street Journal published an article titled, "it's finally time to dive into the housing market." The article focused on purchasers in Phoenix, Seattle and Connecticut who recently found that lower prices and affordable mortgage rates made ownership possible for them. They got what appear to be great deals. The Journal quoted one Phoenix buyer who had just picked up a bargain-priced first home as saying, "six months ago, I didn't think I would ever own a home. Now I do. It's so perfect."

Just as housing's troubles preceded the rest of the economy on the way down, there are increasing indications that housing could be out ahead on the national economic recovery. Pent-up demand is strong, affordable financing is there for buyers with decent credit and a down payment, and improved federal tax credit incentives make the equation even better.