Here's How You'll Know When the Housing Rebound Has Started

We all know that real estate has had a less than stellar performance of late (I can tell that by looking at the estimated value of my home -- not to mention the dire reports on the housing market in my city). And most people are wondering when we'll hit rock bottom. No one knows the answer to this question, but Money magazine does take a shot at telling us the signs we should look for to see that the real estate market has turned around. Their list:

• Inventory is declining
• Houses are selling faster than they used to
• Realtors are feeling better
• Sellers are acting less desperate

Looks like a good list to me.

Unfortunately, it looks as if my city will be a bit behind many parts of the country in a rebound. Michigan has been hard-hit by job losses and the lack of any reasonable performance by U.S. automakers. But, of course, that means it's a buyer's market. And since I'm a buyer, that's good news for me.  Unfortunately, I'm a seller too. :-(

Comments

[Minimum Wage]

Nohousing slump here. Sales prices still going up. Rents projected to rise 8.5 percent this year and another 6 percent next year. Wish you were here.

[Edmund]

If you are selling a cheaper house and buying a more expensive house (ie. moving up), then a declining housing market is good news for you.

[Dave]

Some markets are still doing well - New York City for example

Raw land does not depreciate and if chosen properly can make you rich over time

[xshanex]

got in late on this one but-

the housing rebound will start once rent/buy ratios are coming back to a traditional level where its slightly more expensive to rent than buy or even. When rents are 1/2-2/3 of the price of buying its going to take a long time and be painful for many people until it gets there. Coupled with the amount of soon to be built or recently built condos and houses it could take years.