Currently we're "in the early innings of a housing recovery," asserts Harvard University's "State of the Nation's Housing 2012" report. "Home sales are strengthening and a floor is beginning to form under home prices."
Today's market offers incentives to purchase a house. "With rents up, home prices sharply down, and mortgage interest rates at record lows, monthly mortgage costs relative to monthly rents haven't been this favorable since the early 1970's," the study adds. Here are other important developments cited by the researchers
"There is reason to believe that 2012 will mark the beginning of a true housing market recovery," states the Harvard University study. Call us soon, and start taking steps to realize your housing dreams!
Greater demand for rental units is encouraging landlords to charge more, according to recent government data. Vacancies fell from 9.7 percent early last year to 8.8 percent in the first quarter of 2012. Average rents have risen 5.4 percent over the last year, as well. Rental increases are exceeding the rate of inflation, and putting more of a dent in renters' wallets.
"Rent increases suggest buying is becoming a better deal," says The New York Times. Higher rents were experienced in 24 of the 25 largest metropolitan markets over the past twelve months, the Times reports. Additionally, "the pace of increases quickened from March to June in most rental markets."
America's population keeps increasing, experts note. More people are needing places to live, and that bolsters U.S. housing markets. Today the baby boomers' children, or "echo boomers," are reaching the age when they're ready to purchase their own homes. About 85 million boomer offspring were born from 1982-1995. Surveys show that most of them are eager to move into their own house. That demographic push will create increased purchase activity in the future.
Many potential buyers also have held back in recent years, due to market turmoil. But now a new job or other important life event is making a move necessary. However, a reduced supply of properties on the market in some neighborhoods may be holding purchases back, commentators say. Yet as demand pushes home values higher, we can expect to see more houses for sale. Home builders also are becoming more active, and that will create additional inventory. Housing starts have been rising this year, and early this summer hit their highest point in two years.
Low mortgage rates create another strong support for real estate. New all-time lows for rates continued to occur this summer. Even if you considered purchasing or refinancing just a few months ago, it's wise to see what moves are possible for you with today's conditions. Of course, it's important to consider real estate trends in the community you're interested in. Local factors such as the employment outlook and amount of inventory available for homebuyers to consider will affect markets.
We can't expect home values and sales to surge. Our real estate recovery most likely will be fairly steady and moderate. Yet in many ways our current market is healthier than it's been for years. Today buyers are purchasing to have a great place to live in, rather than hoping for quick profits. When you're enjoying your home a few years from now you'll probably look back and view today as a great buying opportunity – a time when low borrowing rates and bargain house prices combined to produce affordable monthly payments.
Let's start by reviewing your housing goals together. We'll then find a winning strategy that allows you to move into the home and neighborhood of your dreams.
"This is a great time to buy a home," states The Wall Street Journal. "The next few years could well be remembered as the best opportunity for Americans to buy homes since the postwar baby boom."
Yet some owners who have seen their home's value drop from its highest point are reluctant to move. "Many homeowners have put their lives on hold – such as delaying a move to a retirement community or taking a job in another city – as they have waited for a rebound in home prices," the Journal notes.
"This is time lost," concludes The Wall Street Journal. "Economists would point out that these homeowners are ignoring hefty, but invisible, 'opportunity costs.' They are missing out on salaries, investments or life experiences that they otherwise would have enjoyed if they had sold earlier and moved."
Your alternatives may be brighter than they appear, the Journal adds. Someone who wants to move to pursue life dreams might hesitate due to their home's reduced value. Yet prices also have dropped in the community where you'd like to live now. And today's low rates make it easier than you might think to purchase another home. Deciding to move is an important, personal choice. We'll help you sort through the financial issues so you can make an informed decision that brings the benefits you want.
Real estate values rose this spring in most metro areas, observes the S&P/Case-Shiller Home Price Indices. In fact, it's possible that housing could start shoring up U.S. economic growth in coming months. More than nine out of ten economists recently surveyed by The Wall Street Journal also forecast that housing has bottomed. Higher prices and stronger sales figures are pointing towards the beginning of a recovery.
Markets will continue to fluctuate. "But the housing bust is over," The Wall Street Journal reports. Waiting for more signs of real estate strength could mean that you'll miss the best bargains. Start looking now at homes on the market – and ask us to show you what your monthly payments would be.
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