Are Signs Pointing to a Housing Recovery or Relapse?

Are we alone in being a bit confused by recent reports on the state of the housing market? Two recent articles muddy the waters on whether signs are pointing to a housing market recovery or relapse.

2 minute read

March 29, 2012, 12:00 PM PDT

By Jonathan Nettler @nettsj


Stefanos Chen, at The Wall Street Journal, is bullish on a housing recovery based on encouraging trends in a new Urban Land Institute forecast for the next three years. Chen believes, "The housing market may finally be on the path to a sustainable recovery," based on the forecast, which "predicts that single-family housing starts will jump by 2014, from 428,600 in 2011 to a projected 800,000 in 2014. As demand improves, home prices may rise as soon as 2013 and prices could tick up by 3.5% after the third year."

Meanwhile, at CNBC, Diana Olick is bearish on the nascent recovery. New housing data released last week, and a disappointing "pending home sales" report released on Monday, has Olick feeling pessimistic. She points to the abundance of investors pushing the market, while necessary, as a sign of weakness.

"Don't get me wrong, investors buying up the distress is necessary to cleanse the market, but it is not real recovery. Mortgage originations are at a 12-year low, despite record low rates. Normal, "organic" home buyers, move-up owner occupants, are not flooding back into this market. Rents are still rising."

Olick concludes, "Yes, we are ahead of where we were, but as we've noted so many times here on this page, rising foreclosures will put added pressure on this market, and we may not be out of the woods yet."

Wednesday, March 28, 2012 in The Wall Street Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 7, 2025 - Diana Ionescu

Person in yellow safety suit and white helmet kneels to examine water samples outdoors on a lake shore.

USGS Water Science Centers Targeted for Closure

If their work is suspended, states could lose a valuable resource for monitoring, understanding, and managing water resources.

May 1, 2025 - Inside Climate News

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30, 2025 - Streetsblog USA

Person stepping over hole in sidewalk.

Portland Council Tentatively Approves Sidewalk Repair Plan

The proposal would address sidewalk needs in Portland’s District 1 and District 4.

3 hours ago - Oregon Public Broadcasting

6-story building at Honolulu Community College.

Expanding Access to Design Education at Honolulu Community College

Honolulu Community College’s Architecture, Engineering & Construction Technologies program highlights the role of community colleges in preparing nontraditional students for careers in architectural and construction technologies.

4 hours ago - University of Hawai'i News

"Radiation Zone, Keep Out" sign on wood post with red Arizona desert mesa in background

Integrating Human Rights Into Energy and Extractive Sector Transitions

Why just transition efforts must move beyond economic considerations by embedding human rights principles into business practices to ensure equitable, transparent, and accountable outcomes for affected communities and workers.

5 hours ago - Cambridge University Press

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.