Summary For The One Number To Watch For A Housing Recovery Article – Article Example
[Supervisor Article Summary This article is about the Housing Market of US. The of this article Nin-Hai Tseng talks about the belief of different economist and analyst that US housing market is now improving. Although still there are no evidences that housing market of United States is improving because even in 2011, the housing prices fell by 4%.
The writer of this article points out her concern on the usage of price as a parameter to measure the improving trend in the housing market. She feels that it’s the sales and not the price which is a better measure to have a good idea whether the housing market is improving or not. The prices will take time to move in the upward direction but the sales effect can be seen instantly. This is exactly the case with the recovery housing market of United States that the sales are on the increasing and the numbers of unsold properties have decreased. The article purports that price is the ultimate parameter to measure the recovery performance of the housing market but prices will take time to rise. So, on the short term basis sales should be considered as a more appropriate tool. The article advocate that approximately six month period would be ideal to observe the increase in price trend.Another important issue that is highlighted in the article is that recently the state officials have reached the settlement of $25 Billions with five banks and this settle will increase the property in the market. Therefore this inclusion of more properties in the market will have an impact on the improving price tend of the housing market of United States.
Tseng, Nin-Hai. "The one number to watch for a housing recovery - The Term Sheet: Fortunes deals blog Term Sheet." Fortune Finance: Hedge Funds, Markets, Mergers & Acquisitions, Private Equity, Venture Capital, Wall Street, Washington . N.p., n.d. Web. 5 Apr. 2012. http://finance.fortune.cnn.com/2012/03/20/housing-recovery-prices/