Real Estate News

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.

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.”

This is good news for buyers. It is a great time to buy a home in Los Angeles. The combination of low rates, easier qualifications for loans, low home prices and motivated sellers, makes it an ideal market for buyers.

There are lots of good news for buyers and sellers according to NAR. The real estate market is alive and well on the Westside of Los Angeles area.

Everyone should take advantage of the great possibilities available now.

The long-awaited housing recovery is beginning to blossom, according to industry experts taking a look at recent existing-home sales.

The evidence: home sales have been on the rise for the past three months, posting a 5 percent increase in December.

Lawrence Yun, chief economist for the National Association of Realtors(NAR), concurs with Dales’ assessment, saying “The pattern of home sales in recent months demonstrates a market in recovery.”

Yun suggests consumers are gaining confidence from “record low mortgage interest rates, job growth and bargain home prices.”

In addition to the 5 percent increase in December, NAR reported a 1.7 percent annual increase in existing-home sales in 2011, a total of 4.26 million homes for the year.

“The inventory supply suggests many markets will continue to see prices stabilize or grow moderately in the near future,” Yun said.

There are many benefits of owning a home. Yet some buyers are skeptical of purchasing with the uncertainty surrounding the housing market.

1. Appreciation – Buying a home now can almost ensure your home’s appreciation in the future. The prices are low and the rates are at an all time low. This makes the perfect combination.

2. Property Tax Deductions – For income tax purposes, real estate property taxes for a vacation home and first home are fully deductible. If you haven't owned a home for over 3 years, you are considered a first time buyer again.

3. Preferential Tax Treatment – If you own your home for more than a year and receive more profit than the allowable exclusion after the sale of your home, the profit will be considered a capital asset. Capital assets are given preferential tax treatment.

There are many other items that may be deducted as well. sunch as interest paid on the mortgage, some improvements and etc...

4. Equity Building – Equity builders usually select a home loan with a lower interest rate (and a shorter term loan such as a 15-year fixed) to help build equity faster. Home equity is the largest single source of household wealth for most Americans.

5. Pride – Homeownership offers many benefits to many different types of people. For some homeowners, playing your music as loud as you want and painting the walls the color of your choice is a perk. For others, owning a piece of land is like owning a piece of America. Now, that's pride!

When uncertainty surrounding the housing market fades and the market rebounds, homeownership may in fact transform that pride to profit through a home sale.

2012 is the year of rebound for real estate...

"It has become increasingly apparent to us that the pieces for a housing rebound next year are beginning to fall into place," declared Barclays Capital analyst Stephen Kim in a recent note to investors.

"With the exception of really hard-hit markets, the vast majority is ready to turn around," adds Jerry Howard, president and CEO of the National Association of Home Builders, NAHB.

"We believe there is sizable housing demand that could be released into the market," says Lawrence Yun, chief economist of the National Association of Realtors, NAR.

I know by talking to many other Realtors that I'm not alone in feeling the boost of interest and seeing the increased number of buyers that are coming to open houses and responding to ads.

It seems like people in some areas believe that we have hit bottom and now is the time to buy and invest in real estate again. I think they are right!

Experts say, 2012 is the year that prices will stabalize and sales will increase.

The number of homes sold and pending increased last year. So the same is expected for this year. The time is right for buyers to buy great homes at good prices with an all time low interst rate.

Experts believe interest rates will stay between 4% to 5%. This is a record low.

So to answer the question, YES, if you are in position to buy a house, now is the time. If you are considering your life style, goal, income and financial situation and it is all pointing toward buying, then you are in the right place at the right time.