With the U.S. Housing Market on the Rebound, Analysts Warn We’re Not out of the Woods Yet

New numbers released by the U.S. Commerce Department show that the housing market in the United States continues to make strides toward becoming a secure economic force in the overarching U.S. economy again. After two solid months of decline, the market shot back in April, with sales increasing by approximately 6.4%. As memories of a cold, harsh winter continue to fade from mind, industry analysts expect the housing market to expand and improve through the summer and the fall. That being said, not everyone is sold on the idea that housing, whether you’re buying, selling, or renting, is the best option for anyone just yet.

Fed President Plosser Champions Sound Housing Infrastructure
At a luncheon in Washington, D.C. on Tuesday, Federal Reserve Bank of Philadelphia President and CEO Charles I. Plosser spoke on the state of the United States economy in general, while focusing more specifically on the health of real estate as a whole through the Land of the Free.

“Some express concern that the housing recovery in recent months is waning,” Plosser explained, “I’m actually more optimistic; I think the fundamentals of housing are still sound, even though sales have leveled off.”

With sales rising along with prices in April, many think the strong real estate foundation Plosser was describing is a reality.

Others Warn the Situation is More Precarious
The problem, many say, is that too many economists and politicians with vested interests are looking to push April’s recovery as a sign that the juggernaut U.S. housing market is back in action. The reality, as Michael Lombardi of Investing.com writes, is that this shortsighted view is exactly that. No one, Lombardi notes, is paying any attention to the fact that home ownership among Americans has dropped to its lowest levels in nearly 20 years — and that was just in Q1 2014. Further, while housing starts were up to just north of a million in March 2014, they’re still below what we were seeing 10-years ago, in 2005. So, sure, the housing market had a great month, and that’s something to be celebrated; however, anyone who believes we’re out of the woods is delusional.

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