8/7/2019 Positive Real Estate News - Vol 4, Issue 2 - February 17, 2011

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February 17, 2011 Vol. 4, Issue 2

What are real estate professionals saying to homebuyers and sellers about current market

conditions? The successful brokers and sales associates are talking about the strengths that exist inthe market. Below are positive angles that appeared recently in the media and underscore why it is

a good time to buy real estate.

Home Affordability Returns to Pre-Bubble LevelsHome affordability returned to pre-bubble levels in a growing number of U.S. markets over the

past year as price declines laid the groundwork for a housing recovery.Data provided by Moody'sAnalytics track the ratio of median home prices to annual household incomes in 74 markets. Bythat measure, housing affordability at the end of September had returned to or surpassed the

average reached between 1989-2003 in 47 of those markets.

Based on incomes, this is as affordable as it gets,said Mark Zandi, chief economist at Moody's

Analytics. If you can get a loan, these are pretty good times to buy.

-- Home Affordability Returns to Pre-Bubble Levels,by Nick Timiraos, Wall Street Journal (subscriptionrequired), Feb. 9, 2011.

Survey: First-Time Buyers Looking for Move-In-Ready HomesLooking to cash-in on rock-bottom home prices, first-time buyers are thumbing their noses at

traditional starter homes, setting their sights on move-in-ready real estate, according to a newsurvey from Coldwell Banker Real Estate. Of the 300 buyers surveyed, the survey found:

87% percent said finding a move-in-ready property was important to them

67% said they were able to buy a home sooner than expected

50% said they purchased a home in a more desirable neighborhood

40% said they got more square-footage than they would have hoped

-- First-Time Buyers Forgo Starter Homes: Survey, Reuters, Feb. 10, 2011.

NAR: Home Prices Stabilize in Most Markets During the 4th Quarter 2010Home sales rebounded in 49 states during the fourth quarter with 78 markets just over half of

the available metropolitan areas experiencing price gains from a year ago, while most of the restsaw price weakness, according to the latest survey by the National Association of Realtors (NAR).

Total state existing-home sales, including single-family and condo, jumped 15.4% to a

seasonally adjusted annual rate of 4.80 million in the fourth quarter from 4.16 million in thethird quarter

In the fourth quarter, the median existing single-family home price rose in 78 out of 152metropolitan statistical areas from the fourth quarter of 2009, including 10 with double-digit

increases

Mortgage interest rates recently hit record lows, median family income has edged up and prices inmost areas have been stable following the correction from the housing boom. For people with good

credit and long term plans, its hard to imagine a better opportunity than what we see today,said

NAR President Ron Phipps.

-- Home Price Stabilization Seen in Most Metro Areas during Fourth Quarter, Sales Up,National Associationof Realtors, Feb. 10, 2011.

http://online.wsj.com/article/SB10001424052748703313304576132291585938656.html?mod=WSJ_RealEstate_LeftTopNewshttp://online.wsj.com/article/SB10001424052748703313304576132291585938656.html?mod=WSJ_RealEstate_LeftTopNewshttp://online.wsj.com/article/SB10001424052748703313304576132291585938656.html?mod=WSJ_RealEstate_LeftTopNewshttp://blogs.reuters.com/prism-money/2011/02/10/first-time-buyers-forgo-starter-homes-surveyhttp://blogs.reuters.com/prism-money/2011/02/10/first-time-buyers-forgo-starter-homes-surveyhttp://blogs.reuters.com/prism-money/2011/02/10/first-time-buyers-forgo-starter-homes-surveyhttp://www.realtor.org/press_room/news_releases/2011/02/metro_areashttp://www.realtor.org/press_room/news_releases/2011/02/metro_areashttp://www.realtor.org/press_room/news_releases/2011/02/metro_areashttp://www.realtor.org/press_room/news_releases/2011/02/metro_areashttp://blogs.reuters.com/prism-money/2011/02/10/first-time-buyers-forgo-starter-homes-surveyhttp://online.wsj.com/article/SB10001424052748703313304576132291585938656.html?mod=WSJ_RealEstate_LeftTopNews

8/7/2019 Positive Real Estate News - Vol 4, Issue 2 - February 17, 2011

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US News: It May Be a Good Time for Home Buyers to Step off the Sidelines

Economists are watching closely for an inflection point at which the housing market turns upwardfor good. But for buyers planning to live in a home for years, precise timing matters less because

they also need to take into account the direction of interest rates and their own personal need forhousing. Here are four reasons home buyers can feel increasingly confident that it's safe to step off

the sidelines:

In some markets, homes are now undervalued: In a handful of cities, average pricescould actually rise this year. Research firm Fiserv predicts that median home values will go up

modestly in about 20 cities in 2011. In 2012, Fiserv expects prices to rise in more than 300

metro areas, with further declines in only 60 or so.

Affordability is excellent: Falling prices, plus falling interest rates, have made homes more

affordable than they've been in decades. The typical family today needs to spend just 13% of

its monthly income to pay the mortgage on a median-priced home, compared with nearly25% at the peak of the housing bubble, 20% in 2000, and 23% in 1990.

Economic factors that affect housing are improving: Most economists believe therecession is over for good, with the risk of a double-dip fading rapidly. Consumers are

spending again, and the economy is growing. Big companies are in a good position to hire

once business picks up. Those trends all support increased higher demand for homes and newlevels of home-building activity.

The government will continue to support housing: The government now dominates themarket for housing finance, backing or supporting more than 90% of all new mortgages. Eventhe toughest critics of Fannie and Freddie know this, so despite their public calls for a privatesystem to finance housing, it's likely the government will remain a key player in the mortgage

market until at least 2013, after the next presidential election.

-- Why the Housing Bottom Might Be Here,by Rick Newman, US News & World Report, Feb. 2, 2011.

Regional Update: News from Markets around the Nation

California

California homes that sold for $1 million or more in 2010 rose for the first time in five years ascertain segments of the economy improved and high-end home shoppers went bargain hunting,according to San Diego-based DataQuick Information Systems. Last year 22,529 Golden State

homes sold for $1 million or more. That was up 21% from 2009, and the highest since 2008.

Million-dollar sales peaked in 2005 at 54,773, after which they declined each year through 2009.

-- First Gain in Golden State Million-Dollar Home Sales Since '05,DQNews, Feb. 4, 2011.

Florida

Theres encouraging news about the states housing market. Real estate experts are showing some

renewed optimism in Floridas housing markets, but theyre waiting for potential buyers to agree.

The latest University of Florida real estate survey covering the last three months of 2010 suggestschanges in state and federal government have led to the increased optimism.January pendinghome sales for Miami-Dade is up 28% since Jan. 2010, according to the Miami Association of

Realtors. Meanwhile, condominium sales are up 37% while single family homes are up 15%. InBroward, home sales are up 4% since Jan. 2010.

-- Experts Optimistic about Floridas Housing Market,CBS Miami, Feb. 3, 2011.

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