There was a wave of optimism in the media this past weekend by reports that the economic downturn is nearing the bottom and may begin a slow rebound. In an article distributed by the Associated Press, a claim that the “the worst is over” was supported by signs of housing stabilization in many markets around the country—including a notable demonstration of recovery in certain areas of the Midwest.
The region’s median home sales price went up nearly 20% in June from numbers recorded six months prior. New home sales also rose considerably from January to June to 38% and for the same time period residential construction skyrocketed a reported 86% (seasonally adjusted). Even with such interest in the new home market, resales in the region increased 7% in the first half of ’09.
Still, industry economists say a full-on housing recovery in the Midwest hinges on recuperation of employment and a healthy financial sector. The job market must improve so that people can feel secure in buying homes and lenders can feel secure in financing those purchases.