Housing market recovering quickly: Rabobank
The housing market is recovering faster than previously expected, according to the housing market economists from the Rabobank.
The recovery is thought to be going so quickly because of the historically low mortgage rates, and a growing trust in the housing market. This is evidenced by the number of homes being sold which, at the end of this year, will come out between 135 and 145 thousand homes. Next year, the figures will increase even further to 140 and 160 thousand homes.
Despite the increase in sales, Rabobank says that the figures are still lower than they were before the crisis. The amount of trust, however, is back to the level of 2006, before the financial crisis.
There are still a lot of homes 'under water' that have dropped in value, and would have to be sold at below the mortgage amount. People who own homes 'under water' are less likely to buy a new home, because they have a higher mortgage debt than the value of their home. This is slowing market growth.
Pieter van Dalen, an economist with the Rabobank, does believe that the factors ensuring the recovery of the market are currently stronger than the problems with value versus sale price. According to Van Dalen, "28 percent has a house 'under water'. This means that 72 percent have a house that is 'above water'."
The economist expects a further recovery. The expectation is that housing prices will go up by one to three percent in 2015.