There’re many encouraging improvements in the US housing market recently. Single family sales increased about 10% in 2012 than 2011. Major housing price indexes also seem to be consolidating with moderate increase. Most importantly, mortgage delinquency rates have dropped towards their pre-crisis level. Yet foreclosure sales account for more than 20% of total sales and new single family sales still far less than its historical average.
General economic condition imposes restraints on housing market as well. Employment prospect still remains quite weak. Although history may not repeat itself, it’s worth noting that it takes 3 years for unemployment rate of 7.8% in 1992 to reach 5% and another 5 years to arrive at 4%. Accordingly, it’s justifiable to be moderately optimistic about housing market’s gradual return to its historical normal.