Home prices close to bottoming, to rise in 2013 Reuters – Thu, Apr 12, 2012

And yet another article indicating a rise in Real Estate prices immediately expected!
What are you waiting for ? Prices to go up ?...or interest rates to go up ?
Buy Real Estate now... and have no regrets later!
Chuck Hurd, Real Estate Broker
***
Home prices close to bottoming, to rise in 2013
Reuters – Thu, Apr 12, 2012
WASHINGTON (Reuters) - The relentless decline in home prices is nearing an end and prices should rise for the first time in seven years in 2013, according a Reuters poll of economists.
The median forecast of 24 economists polled by Reuters was for the S&P/Case-Shiller 20-city home price index to end the year unchanged. That was the same finding back in January for this house price gauge, which covers 20 cities.
"We are expecting a gradual improvement coming to the market, said Yelena Shulyatyeva, an economist at BNP Paribas in New York.
The survey forecast the S&P/Case-Shiller home price index rising 2.0 percent next year, up from 1.5 percent in the January survey.
The housing market's collapse pushed the economy into its longest and deepest recession since the 1930s. Historically, housing has led the economy out of recession, but it has been the weakest link in the recovery that started in mid-2009.
While residential construction accounts for a mere 2.3 percent of gross domestic product, home prices have an oversized reach in the economy, influencing a wide range of consumption decisions by households.
House prices have so far fallen about 32 percent from their peak at the end of 2005, and an estimated 11 million Americans now owe more on their homes than they are worth.
A resulting tide of foreclosures has held back the housing market's recovery.
The survey predicted about 1.5 million foreclosed properties could come on to the market this year. While there is no comparison for this figure, most analysts believe the foreclosure wave has either peaked or is close to topping out.
Given that foreclosures and the accompanying fear of further price declines are the main obstacles to any housing market recovery, few analysts say that further purchases of mortgage backed securities by the Federal Reserve will help.
Fed officials meet on April 24 and 25 to debate whether further steps are needed to drive borrowing costs lower to spur stronger economic growth.
Mortgage rates are already near record lows and house affordability is the best in history.
"The problem with the housing market is not necessarily that mortgages are expensive," said Millan Mulraine, a senior macro Strategist at TD Securities in New York.
"It's more the expectation that prices may continue to fall and cause a lot of potential buyers to sit on the sidelines to wait for more attractive entry points. I don't think there is lot more mileage to be achieved from MBS purchases."
Further MBS purchases by the U.S. central bank, however, could help keep mortgage rates low as the economy's recovery gains momentum.
The survey forecast the 30-year mortgage rate averaging 4.00 percent in 2012, down from 4.15 percent in the January poll.
Although job growth slowed in March, the labor market is expected to continue strengthening this year.
That should help to lift home sales. Sales of previously owned homes are expected to register an annualized 4.70 million unit annual pace in both the second and third quarters of this year before topping at 4.80 million units in the fourth quarter.
That compares to a rate of 4.60 million units and 4.70 million units in the second and third quarter respectively in the January survey.
"This gradual healing is encouraging, but we must tread carefully as the housing market is still far from a robust recovery," Michelle Meyer, an economist at Bank of America Merrill Lynch in New York.
(Reporting by Lucia Mutikani; polling by Snehasish Das and Aakanksha Bhat; Editing by John Stonestreet)

My April Newsletter!

Here is a link to my "April Real Estate Update":
http://realtytimes.com/161/ChuckHurd
This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.
This month's issue includes topics such as:
"What Can You Do To Get Your Home Sold?";
"Remodeling Improvements That Entice Buyers";
"Mortgage Interest Deduction";
"Should I Accept This Offer?";
"First Time Buyers: Preparing To Move Forward";
Plus a roundup of March real estate activity as well as much more advice and information.
I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too!
If you do not wish to receive this Newsletter each month, please reply to this e-mail with the word 'REMOVE' in the subject line.
Sincerely,
Chuck Hurd

"the housing crisis to end this year, according to a report released Tuesday"

"the housing crisis to end this year, according to a report released Tuesday"

*****

Below is your March 2012 monthly update for the beautiful Big Bear Real Estate market as of 3/15/2012...

CONSISTENT is what comes to mind for Big Bear area sales. Consistent sales pending each month average over 150 to 200 every month here. If you have been thinking about purchasing or selling a home or 2nd home or investment property, call or email me to learn more. Or forward this newsletter on to someone you know who may benefit. Thanks.

Right Now there are 155 in escrow pending sales. Inventory for sale is down which drives prices up. Combined with the data below it seems we may have already seen the bottom of the prices ....

Here are those on the local Big Bear MLS market (there are others from outside the area so just call me): *573-RESIDENTIAL, 344-VACANT LAND,13-MOBILE HOMES, 29-CONDOS, 11-GOVERNMENT LEASE, 66-COMMERCIAL & RESIDENTIAL OR COMMERCIAL/BUSINESS & 17-BUSINESS OPPORTUNITIES .......TOTAL

This article below may "feel" like just another political "babble on" in an election heating up but we brokers in the business have known its turning for some time as all the indicators are there. We that have been in the business long enough to have experienced the ups and the downs more than once know that when rates are down and prices start to creep upward and lending starts to loosen.... its coming again.
The public is "cautious" yet it will be irresistible once the mainstream press starts to "talk" about real estate again. Afterall...it is the foundation of wealth building in this country.

*3/14/2012....
Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.
The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.
Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.
However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.
Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.
Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes "the clearest sign yet of an improvement in mortgage credit conditions."
In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.
While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.
*Call me now with any questions...
Chuck Hurd
909-866-5348
jointhehurd@aol.com
www.BigBearTopAgent.com
* Sources: BBLMLS/SoCalMLS data only; CAR Market matters; News Genius, Case-Shiller, Kiplinger Consumer Sentiment This information is deemed reliable but not guaranteed
ZIP Code: 92386
Approximate Location Boundaries: Hwy 38 to Hwy 18
Location Characteristics: Big Bear Valley is composed of numerous small towns. A true four season resort with winter skiing and summer lake activities. The area is driven by weekend and holiday visitors. As many as 100,000 visitors will flock to it's beauty during the 1st snow expected around the 1st week of November or 4th of July weekend or for annual carshows or snowboarding events. It is the only year round vacation area within 2-3 hour driving distance of LA, Orange, Riverside, San Diego Counties and is swiftly earning the nickname of "the next little Aspen"
The Big Bear area is made up of primarily 2nd or 3rd homeowners and varies in price from around $25,000 to 6.5 million.
Few areas offer year round vacation activities combined with real property appreciation and excellent portioned rental incomes allowing the owner use and enjoyment as well as tax advantages.
For More Information:
Visit My Web Site
View My Newsletter
Ask Me A Question

About Chuck Hurd:
CHUCK HURD
A #1 Selling Broker
Top 10% Internationally
Platinum Club Award
Presidents Club Award
Executive Club Award
100% Club Award
Hall of Fame Qualified
Diamond Award Qualified
Double Diamond Award
Why call anyone else?
"JointheHurd"
Chuck Hurd Team
The Real Estate Office Of Big Bear