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Recovering Housing Market
May 29, 2013 - By Staff Writer
The housing market seems to be recovering nicely, with home prices gaining to the double digits at 10.9%. But we need to be cautious, a lot of the recovery has to do with the stimulus, and there are concerns that the Fed may start to scale back a bit, which has contributed to mortgage rates climbing to its higher level in a year to 3.9% average, and the stock market today seems to be reacting to it as well. There are also concerns about a second wave of foreclosures from a backlog of delayed foreclosures and distressed properties, so moving forward cautiously should be good advise.
Nevertheless, the worst appears to be behind us, housing inventory continues to decrease with a lot of domestic and foreign investors still buying - taking advantage of opportunities, and with home lending stabilizing, there are more options for the average home buyer as well. Therefore, real estate developers and general contractors are well justified to continue moving forward. This is also fueling the construction invoice factoring business, which advances funds on invoices to developers, general and sub-contractors allowing for uninterrupted cash flow.