In addition to the article I have attached below, there is historical data to support the idea that after every “CRASH” there is a “BOOM”. ( www.standardandpoors.com). It may not be the seismic “BOOM” we recently experienced, but there are so many factors that point to an increasingly robust recovery of the housing market.

Many people have put their home purchase on hold for various reasons.   There are many who have waited for the bottom of the market, those who have been repairing credit from recent economic hits, those who have lost jobs and are now working and many who have had to rebuild their savings.   We also have the Gen Y’ers, also known as the Millenials, that will be entering the market for the first time.   With numbers estimated as high as 70 million, Generation Y is the fastest growing segment of today’s workforce and they will all need a place to live.  Add up these factors of the current pent up market and a housing shortage could be a real possibility.

Sellers have been waiting to list their homes in hopes of prices coming back to more favorable levels and the number of foreclosures hitting the market is also way down.  This is keeping inventory very low.   In our northern Virginia market, we are seeing prices increase because the inventory has been so low and buyers have had to compete for properties since spring.

Finally, are the historically low interest rates.  Mortgage money is cheap right now and consumers are taking advantage of that.  First time home buyers as well as move up buyers have more buying power now than ever.  Renting has, in most cases, become more expensive than buying and most people still believe that owning a home is the best long term investment they can make, despite the ups and downs.

The simple economic model of supply and demand is at work in the real estate market.  The current demand for housing is greater than supply and the demand is increasing.  Many people waited too long to believe in the “BOOM” 10 years ago and paid much more for their homes.

So, if you have considered buying your first home or are thinking about either a move up or down, now is really a great time.  Take advantage of the low interest rates and low  prices NOW!  Don’t wait for the “BOOM”, it could cost you a bundle!

First Published: October 12, 2012: 1:01 PM ET

NEW YORK (CNNMoney) — The long-battered housing market is finally starting to get back on its feet. But some experts believe it could soon become another housing boom.

Signs of recovery have been evident in the recent pick ups in home prices, home sales and construction. Foreclosures are also down and the Federal Reserve has acted to push mortgage rates near record lows.

But while many economists believe this emerging housing recovery will produce only slow and modest improvement in home prices, construction and jobs, others believe the rebound will be much stronger.

Barclays Capital put out a report recently forecasting that home prices, which fell by more than a third after the housing bubble burst in 2007, could be back to peak levels as soon as 2015.

“In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing starts,” said Stephen Kim, an analyst with Barclays, in a note to clients.

In addition to what Kim sees as a big rebound in building, he’s bullish on home prices, expecting rises of 5% to 7.5% a year.

Related: Where housing is most (and least) affordable

Construction is expected to be even stronger, with numerous experts forecasting home construction to grow by at least 20% a year for each of the next two years. Some believe building could be back near the pre-bubble average of about 1.5 million new homes a year by 2016, about double the 750,000 homes expected this year.

“We think the recovery is for real this time around,” said Rick Palacios, senior analyst with John Burns Real Estate Consulting. “If you look across the U.S. economy right now, there are only a handful of industries looking at 20-30% growth over the next 4-5 years, and housing is one of those.”

Home builder stocks are up 162% in the last 12 months, led by a 250% jump at PulteGroup (PHM). Other leading builders including DR Horton (DHI), Toll Brothers (TOL), KB Home (KBH) and Lennar (LEN) have all seen their stocks more than double over that time. New orders at publicly-traded builders are up 30% since January, according to Kim.

Related: Is buying rental property now a sure bet?

Palacios said stocks in other sectors, from manufacturers of drywall to flooring to kitchen and bath fixtures, have all more than doubled as well this year.

The housing rebound can have a ripple effect that could help get the entire economy growing at a much stronger pace, which will add to more demand for housing.

“That turn in the [housing] market is occurring now and it should become a boom by 2015. It will be powerful enough … to lift the entire U.S. economy,” said Roger Altman, chairman of Evercore Partners and former deputy Treasury secretary, in a column for the Financial Times.

Altman said he expects housing will add 4 million jobs to the economy over the next five years, as pent-up demand for home purchases drives building and and home prices higher.

I keep reading and hearing that we are going to have a lot of snow this winter.  I guess no one really knows for sure, but we have had a couple of mild ones, so we may be due for a harsh winter.

Now is a good time to prepare your home for the colder weather that is ahead.  This list below will help protect your home, could help keep utilities low and most  items you can do yourself.

1. Tune up your heating system. Have a licensed HVAC technician inspect your furnace or heat pump to make sure the system is clean, in good repair, and that it is  working at  its manufacturer-rated efficiency.  Also ask the technician to measure carbon-monoxide leakage.  Doing this early in the season will prevent you from being being last on a long list of repair jobs on the coldest day of the year.

2. Reverse your ceiling fans. If your ceiling fan can reverse to a clockwise direction,  switch them after you turn on our heat.  . Energy Star says the fan will produce an updraft and push down into the room heated air from the ceiling ( hot air rises). This is especially helpful in rooms with high ceilings — and it might even allow you to turn down your thermostat by a degree or two for greater energy savings.

3. Prevent ice dams. Air leaks and inadequate insulation in your home’s attic can lead to ice dams.   Check your attic for areas of leakage or have a winterization specialist check it out.

4. Hit the roof. Or at least scan it closely with binoculars. Look for damaged, loose or missing shingles that may leak during winter’s storms or from melting snow. If need be, hire a handyman to repair a few shinglesor a roofer for a larger section. Check and repair breaks in the flashing seals around vent stacks and chimneys, too.

Many sellers feel that the Spring is the best time to place their home on the market as buyer demand increases at that time of year. However, the Fall and Winter have their own advantages. Here are five reasons to to sell now.

Only Serious Buyers Are Out

At this time of year, only those purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere ‘lookers’. The lookers are at the mall or online doing their holiday shopping.

There Is Far Less Competition

Housing supply always shrinks dramatically at this time of year. This year will be a little different as some of the distressed properties being liquidated by the banks (in the form of foreclosures & short sales) will enter the market. However, for those buyers looking for a non-distressed property, the choices will be limited. Don’t wait until the spring when all the other potential sellers in your market will put their homes up for sale.

The Process Will Be Quicker

One of the biggest challenges of the 2012 housing market has been the length of time it takes from contract to closing. Banks have been inundated with both purchase and refinancing loan requests. Both of these will slow in the winter cutting timelines and the frustration these delays cause both buyers and sellers.

There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 15% from now to 2016. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with historically low interest rates right now. There is no guarantee rates will remain at these levels in years to come.

It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire. That is what is truly important.

by The KCM Crew on September 24, 2012

Very positive signs of the real estate market recovery are coming from all parts of the country, even the hardest hit areas such as Nevada and Florida.  Take a look at what our CEO has to say about the market.

http://video.foxbusiness.com/v/1849686617001/

Based on current low prices, low mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now.

Did you know:

Supply Is Shrinking

There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. This is the case in the northern Virginia market.  The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.

Price Increases Are on the Horizon

Projections call for appreciation in the very near future.  We have already experienced price increases in Northern Virgina this summer.   Several studies and surveys call for price increases over the next few years starting in 2013. One such survey shows that nationally prices will increase over 10% by 2016.

Rents Are Skyrocketing

Rents historically increase by 3.2% on an annual basis. A study issued earlier this year projects rent increases of 4% for the next two years. Trulia recently reported that rents this year have actually shot up by 5.4%.

Interest Rates Are at Historic Lows

Federal Reserve Chairman Ben Bernanke has kept interest rates low in an effort to stimulate a lethargic economy. He understands that low rates will help housing and housing is a key to bringing back the economy. As the economy improves, the need to keep rates low will no longer exist. The 30-year-mortgage rate before the financial crisis was 6.57% (August 2007).

Buy Low, Sell High

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’. It’s time to buy!

Trulia reported this week that homeownership is 45% cheaper than renting in the United States. Jed Kolko, Trulia’s Chief Economist explained:

“Homeownership is cheaper than renting in all of the 100 largest metros, by a wide margin. Despite the recent price rebound, rents continue to rise faster than prices, and mortgage rates are near record lows.

Homeownership makes the most financial sense for people whose strong credit scores let them snag the lowest mortgage rate and who get the biggest benefit from deducting mortgage interest and property taxes from their income taxes.”

(Trulia’s methodology is explained here.)

This news did not come as a surprise to us as we have reported that today’s rental market definitely favors the landlord. Below is a graph of how rental prices have increased recently and where they are projected to go over the next few years based on a report from Marcus & Millichap.

It cost more to rent than own right now. And you don’t get any of your rent back in the future. History shows us, in the long term, you can build equity in a home. Dr. Ken Johnson earlier this year explained in a post on this blog:

“It appears that homeownership creates extra wealth mainly through its ability to force owners to save rather than through property appreciation. Thus, homeownership appears to be a self-imposed savings plan, which through time leads to greater wealth accumulation as compared to comparable renters. In short, buying a home makes Americans save.”

The Joint Center for Housing Studies at Harvard University released a study last year titled America’s Rental Housing: Meeting Challenges, Building on Opportunities. In the study, they actually quantified the difference in family wealth between renters and homeowners:

“[R]enters have only a fraction of the net wealth of owners. Near the peak of the housing bubble in 2007, the median net wealth of homeowners was $234,600—about 46 times the $5,100 median for renters. Even if homeowner wealth fell back to 1995 levels, it would still be 27.5 times the median for renters.”

What Does This All Mean?

We believe David Shulman, senior economist with the UCLA Ziman Center for Real Estate said it best:

“The American Dream of homeownership may be comatose, but it is not dead, and the wake-up call will come in the form of higher rents.”

About The Author
We at The KCM Crew are pursuing our mission of building a home for real estate information. We are truly dedicated to helping real estate professionals by supplying all the tools and resources they need to be seen as industry leaders in their marketplace. See how we can help you become an industry leader in your marketplace, and be sure to check out our page on Facebook and follow us on Twitter.

For many, school and home are inextricably connected.  According to the National Association of Realtors® 2011 Profile of Home Buyers and Sellers Survey, the quality of the school district and convenience to schools was an important factor to 49 percent of all buyers in deciding where to purchase a home. As kids head back to class, HouseLogic.com, NAR’s award-winning website about all aspects of homeownership, features “Storage Solutions:10 Great Ways to Avoid Back to School Clutter,”  great ideas on preventing the fervor of the season from overwhelming the home.

“Summer seems to zip by in the blink of an eye, and before we know it, parents are shopping for back-to-school items all over again. It’s surprising how much clutter can accumulate from all the hustle and bustle associated with this annual event,” said Pamela Kabati, NAR senior vice president of Communications and HouseLogic spokesperson. “What makes it even easier for things to pile up is that it seems back to school promotion begins earlier each year. An organized home will make it easier to get kids ready and out the door on those busy school day mornings, and HouseLogic is a great resource for homeowners looking to organize and prepare their home for the school year.”

“HouseLogic may not be able to physically step in and organize it all. But we can do the next best thing: offer great advice on getting started,” said Kabati.

For more information on how to make smart decisions and take responsible actions to maintain, protect and enhance the value of your home, visit www.houselogic.com.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
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Information about NAR is available at www.realtor.org.  This and other news releases are posted in the “News and Commentary” tab.

The housing crisis of the past several years caused home prices to dramatically decrease all over the country creating a situation where millions of homeowners were left owing much more on their mortgage than their homes are worth.  A frequently used term for this situation is known as “being underwater”.  CoreLogic in their most recent Negative Equity Report explains that there are over eleven million houses currently underwater.  Although our local market is beginning to see improved values, they are not improving at the rate at which values dropped.

When an “underwater” seller wants or needs to sell, they will not, at current market prices,  receive adequate proceeds at closing to satisfy the mortgage.  The seller would need to make up the difference in cash or ask the bank to accept the proceeds as payment in full.  This is known as a “short sale“.

According to CoreLogic ‘s  most recent Shadow Inventory Report, there are currently 1.5 million distressed properties that will come to market over the next several years. The number of these properties sold as short sales is up 19.7% over last year’s numbers.

The banks are beginning to see a short sale as a better alternative to foreclosure for them, the seller and the neighborhood. There is no doubt that banks are leaning toward short sales rather than foreclosure. In a recent news release, the FHFA announced new guidelines to streamline the short sale process.

FHFA Acting Director Edward J. DeMarco on the new guidelines:

“These new guidelines demonstrate FHFA’s and Fannie Mae’s and Freddie Mac’s commitment to enhancing and streamlining processes to avoid foreclosure and stabilize communities.”

In a DSNews article, both Fannie Mae and Freddie Mac reaffirmed their desire to proceed with short sales rather than foreclosures.

Leslie Peeler, SVP, National Servicing Organization, Fannie Mae:

“Short sales have become an increasingly important tool in preventing foreclosures.”

Tracy Mooney, SVP Single-Family Servicing & REO at Freddie Mac:

“These changes will further empower the industry to minimize foreclosures.”

The belief of many is that short sales will dramatically increase over the next few years.

As a Certified Distressed Property Expert® (CDPE) I have a thorough understanding of the complex short sale process and knowledge of foreclosure avoidance options.  If you are facing hardships due to the recent market issues and would like to explore your options, give me a call.  Speaking with a well-informed, licensed real estate professional is the best course of action for a homeowner in distress.

With so much focus on the housing market and economy, many people want to categorize any information they gather or receive as either good or bad.  In reality, the condition of the market depends on who you are and where you are.  Are you are buyer, seller, renter, investor?  Where are you moving to or from?  Housing conditions are local and national news headlines should not be considered good or bad news for everyone.

In the northern Virginia market, we are currently experiencing very low inventory.  This is great news for sellers as competing offers are common in most price ranges when the home is in good condition, priced well and in a good location.  This is not such good news for buyers who need to find a home and settle quickly.  It is driving the  prices in our area upward (good news for sellers) causing many buyers to loose out (bad news for buyers).

There is much press about the struggling global economy as well and how it can adversely affect the real estate market.  These economic challenges have, however, brought us sub 4% mortgage interest rates.  This is good news for buyers and sellers as it is making home ownership more affordable and attractive, bringing more buyers into the market, again driving up prices and gobbling up inventory.  We will then see, as the economy recovers, mortgage rates rise, which could mean bad news for buyers.

“There will be challenges in every housing market. Those challenges will also bring opportunities. Spend less time trying to categorize the news and more time highlighting the opportunities the market presents.”

http://www.kcmblog.com/2012/08/13/its-not-good-news-or-bad-news-its-just-the-news/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+KeepingCurrentMatters+%28The+KCM+Blog%29