Housing Market On The Rebound

It's been a year since the collapse of the financial industry, which triggered the biggest crisis since the Great Depression. President Barack Obama visited lower Manhattan exactly a year after the government made the decision to let Lehman Brothers go under.

To prevent a replay, the president urged Congress to approve new rules to promote more accountability. He also gave a warning to Wall Street's biggest players not to count on more bailouts.

"Those on Wall Street cannot resume taking risks without regard for consequences, and expect that next time, American taxpayers will be there to break their fall," said Obama.

Much of the financial crisis is directly linked to a housing market that burst after people couldn't pay back their mortgages, but there are signs that real estate is returning to normalcy.

According to the Jackson Association of Realtors, overall home sales in our area have increased every month this year until July. Between May and June, home sales in Madison, Ridgeland and Pearl jumped 20 percent. However, the numbers have not reached pre-recession levels.

John Jenkins, a real estate appraiser and president of the Jackson Association of Realtors, monitors sales in the tri-county area.

"The improvements in the economy and the stock market, I think that's had a lot to do with it," he said.

Experts say the housing market is beginning to look up. Prices are starting to level, but some say it could take as long as two years before prices return to pre-recession levels.

Kevin Anthony and Cecil Brown with Medley and Brown Financial Advisors are paying close to attention to how the housing market affects the economy.

They're optimistic and are subscribing to a strategy championed by Warren Buffett - value investing.

"Folks need to be careful of this idea of buying something and thinking three months later, they're going to have made a lot of money," said Anthony.

"We're more involved in trying to pick good businesses with good long term returns," said Brown.

Unemployment is still high and consumers are hesitant to spend, but a healthy housing market and a stronger stock market are steps in the right direction.