Analyst Stephen Kim of investment bank Barclays Capital recently predicted good news for the real estate market in the near future, with factors such as stabilizing prices for non-distressed homes and improving job growth driving a housing recovery.
According to the firm, higher job creation, housing starts and homebuyer traffic are among the signs supporting this conclusion. Kim noted prices remained stable in some markets despite the lapse in mid-2010 of the home buyer tax credit.
"This is the most important trend in the housing industry right now, and we are amazed at how little attention it has been getting from the media and the street. This stability on the part of non-distressed prices has occurred despite a very high share of distressed activity and continued declines in overall prices," Kim said.
While the overall outlook is positive, the precise timing of the recovery is unclear. Kim stated the deciding factor in the recovery, the one which will determine when markets improve, will be the decisions by first-time homebuyers to make purchases again.