Real estate agents in the US believe that the housing industry is finally in recovery mode, with nearly 70% of respondents in a recent survey saying they expect prices to start rising soon.
The survey of RE/MAX real estate agents revealed that four out of five agents believe prices have already hit rock bottom, and that a resurgence led by a growing demand for low to mid price homes will materialize by the end of the year, reports Property Wire.
Margaret Kelly, CEO of RE/MAX, said that many agents were already seeing evidence of a recovery:
“For active real estate agents, this market is definitely heating up. They are witnessing a recovery across the country fuelled by home buyers and sellers taking advantage of a significant market opportunity.”
Just over two thirds (66%) of RE/MAX agents believe that real estate prices will rise by the end of this year. This belief is backed up by the realtors’ perception that demand for housing is once again beginning to grow, especially in the low-to-mid price property bracket.
According to the survey, 80% of agents said they were seeing a ‘good’ or ‘very good’ demand for homes in the low price bracket, with a further 71% claiming they had seen ‘good’ or ‘fair’ demand for homes in the mid range price bracket.
The growing demand is not being led by any one demographic either, which can also be taken as evidence of a solid recovery taken shape. According to Property Wire, first time buyers account for approximately a third of all new homes sold, with investors and current homeowners accounting for about a third each.
Even so, there are problems in the way. Agents say that the toughest challenge for first time buyers is obtaining credit, with lenders still insisting on very high credit scores before they’ll consider giving out a loan. Other problems cited by first time buyers include coming up with a down payment, and also finding a home to buy – agents say that some markets are actually experiencing a shortage of suitably priced homes for sale in the low-to-mid price brackets.
For repeat buyers, they have the additional problem of having to sell their current home before they can make a move.