It has been happening for months and is one big reason why the Minneapolis St Paul housing market has seen a positive response, from the sellers perspective, this year. A low housing inventory in MN has caused the prices to stabilize and even appreciate this past year. Buyers this means the market has hit bottom and in fact is on a slow mends.
Sellers are beginning to see some fair play in the marketplace as more and more buyers are having to compete for fewer homes. Rates remain low and is helping but banks are still hanging onto their money tightly. Let me rephrase banks are holding onto our money tightly. The money they used to bail themselves out and make billions from doing so. Corporate greed is at all time highs and bankers should be ashamed of themselves.
What will 2012 bring? My predictions it will be just like 2011 with slow gains all year and I think interest rates will come up slightly but remain affordable. The only wrench in the scenario would be if there is a sudden influx of new foreclosures that have been on hold due to, once again, banks screwing the system and the government having to implement a moratorium.