Excess Housing Stock or Pent-up Demand?

Existing home sales soared in January, reflecting a pent-up demand for housing. Some of this also reflects the fact that people were very concerned about housing prices in the last quarter of 2006, and the correction took place. There were also rate jitters, economic forecasts of doom and very little urgency to make a move in the overall market, but that seems to have changed. It has been very busy lately, at least in Chicago. And, this desire for the American dream is going strong nationally, too. See the attached article on a record rise in existing home sales.

JanuaryExistingHomeSalesRise

My personal experience as of late, half of my current activity is directly connected to business that should have been conducted in the fourth quarter of 2006, which was dismal at best. But 2007 looks like it could be better than anticipated, with more buyers getting better deals and a little more for their money. The data is a little confusing, but it all looks good for the home buyer. Prices falling, rates holding or potentially falling in the wake of bad economic news, unemployment is still very low and People Still Love Chicago. So, if you are thinking of buying, get started now because the Spring Market is coming a little early this year.