The residential housing situation in the United States could be making significant strides, as industry experts think the market won't, or can't, get any more affordable than it is at the current moment, according to CNN Money.
Home prices are still 30 percent lower than the peak reached in 2006, and mortgage rates recently reached record low levels. However, many economists think that a home price bottom is on its way, which could not only mean that the effects from the recession have receded, but home prices may become more competitive.
"People can now see the light at the end of the tunnel," Doug Lebda, CEO of LendingTree, told the news source. "And that can be enough to get them off the fence."
Not only will rising home prices improve growth, but foreclosure drops may play a significant role, the news source noted. While distressed properties plagued the market in the early parts of the recession - especially after the housing bubble burst - figures show that delinquencies have declined markedly.
The report added that more Americans could be looking to get involved in the residential housing market, as purchasing a home is less expensive than renting.
The National Association of Home Builders noted that the residential housing market has moved in a positive direction so far this year, and this should continue in the coming months.
There have been many mixed messages in the housing market in the past month, but some experts think this is purely due to the differences that can occur month-to-month, and shouldn't panic any industry members.
"No one is anticipating that an upward path for housing will run in a straight-line trajectory," said
David Crowe, chief economist for NAHB. "The economy is in an uneven recovery and we can expect some corresponding ups-and-downs in the housing market in the months ahead."
Home sales have been improving significantly, and housing starts are expected to trend up as the industry progresses into 2013, the report said. In addition, the commercial real estate industry is expected to continue its improvement into 2013, as well. Specifically, multifamily starts are projected to jump significantly from 2011 to 2013.
The report added that improving payrolls, along with further housing improvements, will be key to continued economic expansion and recovery.