Housing data that has been released over the past couple of months suggests a housing recovery is near or already underway. Low current mortgage rates along with historically high home affordability and the first-time home buyer tax credit of $8,000 has created a “perfect storm” for a housing turn around. 

Housing sales are up, the price of homes has been going up the past five months in a row and the supply of homes for sale are down for both new home and existing homes. Keep in mind, this improved housing data is happening during a recession, raising unemployment and a slight uptick in mortgage rates in the past few weeks, even more reason to believe a turn around has started.

Even the Chinese government believes the U.S. has hit bottom in the housing market. The government’s sovereign wealth fund, China Investment Corp, is going to buy up to $2 billion in U.S. mortgage securities through the U.S. Treasury-backed Public-Private Investment Plan (PPIP).

The stronger demand for homes has eaten into the supply of homes for sale. A year ago the available existing homes for sale would take 11.3 months to sell, as of June the supply of existing houses for sale would take only 9.4 months to sell. The supply of new homes for sale is also down, this past January it would take over 12 months to sell all the new homes available, as of the past June it would take only 8.8 months to sell all the new homes in inventory.

If you’re thinking about buying a new home right now is probably the time to do it. As the year goes on today’s mortgage rates will be higher and the price of a home will also be higher. There are areas in the U.S. that might see further housing price declines but if you’re going to be in your home a long time you’ll be okay. Remember prior to the housing bubble a home was considered “your home” more than an investment.