A recent report by the Joint Center for Housing Studies at Harvard University shows evidence that the housing market is experiencing a turnaround.
Key factors in the market's growth are the decreasing inventories and increasing home prices. This sentiment is supported by the National Association of Realtors' report on inventories and home prices, which shows an inventory decline in the residential housing supply of 20.6 percent for the one year annual period through April 2012. Further, the national median existing-home price increased 10.1 percent from April 2011 to April 2012 at $177,400.
The report highlights the presence of foreclosures in today's market, which is one area that could hold the housing market back from a stronger recovery.
The report states there are more than two million homes backlogged in the foreclosure process. Foreclosed homes typically sell at 30 percent discounts compared to conventional levels and significantly drag down average national home prices.
Further, these decreased home values can decrease the equity in many neighboring homes, further slowing the recovery and harming credit conditions for a greater number of Americans.