Unfortunately, is it real? Market data is showing us that home sales are increasing on a month to month basis compared to the lull we had towards the end of 2013. This could be good news. However, the number of sales are a lot lower when compared to the same time a year ago. This could be bad news. There are a number of theories as to why, but my favorite is the one that blames the tough lending standards of the banking industry. They are making it very difficult to obtain financing, so there are many interested potential buyers–but only a handful of qualified ones.
Inventory is still low, so this is making a lot of homes attractive in the eyes of those in the market. Be warned that the data available at this time does not really support the “healthy market” a lot of media outlets are pushing. If you buy, be prepared for anything. As I tell all my clients: “If you can afford the mortgage payment and are happy living in the home you purchased–then you will be fine. Real estate has almost always been a long term winner.”