"Of course, there is still some risk as we look down the foreclosure pipeline and see foreclosure starts picking up,” he said. “This will translate into more homes on the market by the end of the year, but we think demand will rise to absorb that, particularly in markets where there are acute inventory shortages now.”
The problem until now has been the tighter lending standards that have prevented some otherwise creditworthy buyers from getting into the market. Analysts say the rise in home values is a positive sign because it will make lenders more confident when they make loans.
Story provided by ConsumerAffairs.