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Foreclosure Auction Numbers Signal Housing Market Stability

Doubts on whether the U.S. housing industry is recovering are starting to dissipate as sector data for February 2012 becomes available. Numbers are up in nearly all sectors associated with housing, leading to considerable optimism among analysts.

Real Estate Auction

There is growing confidence that housing is definitely stabilizing and will no longer be considered a drag on economic growth. Higher residential sales, particularly foreclosure auctions sales; increased activities in the home building sector; and busy developers are just some of the signs signaling stability in the residential property market.

Homebuilders Getting Active

If there are still those who doubt the recovery of the home market, all they need to do is look at the home construction market data for February 2012. Figures show that building permits increased by 5.1% during the month, recording their highest number since October 2008.

Homebuilders' confidence over the future of the housing sector benefits all segments associated with the housing industry. Construction material suppliers are just some of the industry affiliates recording gains from rising construction starts and these positive numbers are expected to last for the rest of the year.

Other Recovery Signs

The rise in the number of new residential properties is expected to provide homebuyers with more choices, although it is expected that foreclosure home auctions will continue to lure investors and homebuyers despite the competition. Continued interest in low-priced dwellings is also projected to contribute to pushing home prices up, with some markets expected to record a nearly 10% rise in prices within the year.

Market analysts believe that housing is at that point in time when a rise in mortgage rates will not hurt sales. After a long time, rates have gone beyond the 4% mark, reaching 4.05% for the week of March 20. The improving housing industry is also expected to benefit the status of the nation's economy.

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