The Joint Center for Housing Studies at Harvard University in their annual State of the Nation’s Housing Report summarized the current market in these terms:
“Housing markets are showing signs of reviving. While still in the early innings of a housing recovery, rental markets have turned the corner, home sales are strengthening, and a floor is beginning to form under home prices. With new home inventories at record lows, unless the broader economy goes into a tailspin, stronger sales should further stabilize prices and pave the way for a pickup in single-family housing construction over the course of 2012…”
What’s even more striking is that its managing director stated in the report that inventories of new, single-family homes in March were at their lowest point in nearly a half century. This means that it would take less than six months to sell all of it. A five-to-six-month period is considered a balanced market.