The tide may finally be turning for the housing market.
New data indicates that the number of home sales is rising across the nation and California is witnessing the lowest foreclosure rate since the economic crisis began.
DataQuick, a San Diego-based real estate company, reported last week that the number of default notices fell to 56,258 in the first quarter of 2012. This figure represents a 17.6 percent drop from the same quarter last year.
Though this percentage may be decreasing, home prices have remained stagnant. Last month, the median-priced home in Southern California sold for $280,000, while in 2007 the median was $505,000.
However, economists believe that home prices will begin to rise again as a result of fewer foreclosures, as these discounted properties have been dragging the median down throughout the last couple of years. Additionally, as unemployment and retail sales show steady gains, the housing market will be likely to follow suit.
Is this finally the end of the five-year housing and foreclosure crisis, or just another call for false hope? Let us know what you think.