By: Realtor.com Team

   Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price.
   But a basic rule in real estate is that all properties are unique. No two properties – even two identical models on the same street – are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike.
   In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area.
   How Do You Choose a REALTOR®?
   In every community you’re likely to find a number of realty brokerages. Because there is heated competition, local REALTORS® must fight hard to succeed in your community.
   The best place to find a local REALTOR® is from realtor.com®’s extensive listing of community professionals and properties. Other sources include open houses, local advertising, websites, referrals from other REALTORS®, recommendations from neighbors, and suggestions from lenders, attorneys, financial planners and CPAs. The experiences and recommendations of past clients can be invaluable.
   In many cases buyers will interview several REALTORS® before selecting one professional to work with. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.
   What to Expect From a REALTOR®
   Once you select a REALTOR® you will want to establish a proper business relationship. You likely know that some REALTORS® represent sellers while others represent buyers. Each REALTOR® will explain the options available, describe how he or she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in your state.
   Once hired for the job, the REALTOR® will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation.
   Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace REALTORS® will keep you updated and alert you to each step in the transaction process

Daily Real Estate News | Monday, September 23, 2013

   Home inspections have the power to send all parties back to the negotiation table. As such, some sellers are taking the precautionary step of having an inspection done before listing the home for sale.
   Some real estate professionals say that having a home inspection prior to listing can offer several benefits to the seller.
   “The buyer has the upper hand when they have an inspection,” says Jessica Edwards, Coldwell Banker consumer specialist and real estate professional. “If you are willing to do it ahead of time, you give the control back to the seller.”
   Sellers who have a home inspection upfront also can identify any major problems that could potentially derail a sale later on at the closing table. Any major repairs can be addressed beforehand. Doing repairs ahead of time might also be more cost-effective than having to pay a buyer's own licensed contractor do the work.
   “If you have the items repaired or replaced ahead of time and it doesn’t come up with the buyer, it’s a non-issue,” says Edwards. Edwards says having a home inspection beforehand can also help sellers adjust their asking price if they aren’t willing to do certain repairs.
   Leslie Piper, consumer housing specialist for realtor.com, suggests sellers consider a pest and roof inspection before listing.
   “The costs of repairs or the replacement of a roof can vary and could be a big-ticket item a seller may want to be aware of before they choose the price they are hoping to get for their home,” Piper says. “Having these inspections can be beneficial for a successful home sale, and also beneficial for a seller’s future budgeting plans.”

   Source: “Should Sellers Pay for a Home Inspection?” FOX Business (Sept. 18, 2013)

Daily Real Estate News | Monday, September 23, 2013

   As mortgage rates move up, buyers are moving in to secure interest rates before they're priced out of the market. Most lenders offer buyers a loan lock-in period of 30, 45, 60, or 90 days. Lenders then are obligated to offer the home loan at that lock-in rate, even if rates have risen during that time. Some lenders lately have even revived “lock and shop” programs, allowing buyers to lock in an interest rate for an unlimited time before they even find a property to purchase.
   Lawrence Yun, chief economist for the National Association of REALTORS®, called August’s surge in home sales likely the “last hurrah” for the next year to 18 months as mortgage rate increases and rising prices likely dampen affordability and sales in the coming months. Sales of previously-owned homes rose in August to the highest level in more than six years.
   “Rising mortgage rates hurried some people into making the decision” to close on a deal, Yun says.
   Mortgage rates have been on the rise since May when the Fed indicated that it would soon be winding down its $85 billion monthly bond purchases, which had helped keep mortgage rates near all-time lows. Mortgage rates have moved up more than a full percentage point since May. The Fed announced last week it would delay its taper, which temporarily brought mortgage rates down last week from yearly highs. The 30-year fixed-rate mortgage fell to 4.5 percent last week, according to Freddie Mac.
   PulteGroup said it expects the increase in borrowing costs to affect consumer segments differently. For example, James Zeumer, head of Pulte’s investor relations, says that a half-percentage point rise in interest rates could mean that some first-time buyers “will be out of the game.” Move-up buyers, on the other hand, may “have a little bit more flexibility.”

   Source: REALTOR® Magazine Daily News and “Home Sales Climb as Americans Rush to Lock in Rates: Economy,” Bloomberg (Sept. 19, 2013)

Daily Real Estate News | Friday, September 14, 2012

   Real estate professionals say they keep seeing buyers make the same mistakes over and over again in a home purchase. Among some of the common errors they see:

   1. Unrealistic time tables: With a regular sale, "assuming you're preapproved and it's straightforward, you can probably do it in 30 days, but 45 is more common," says Ron Phipps, immediate past president of the National Association of REALTORS®. But he advises home buyers to prepare for 45 to 60 days. And if it’s a foreclosure property, they may encounter lien and title issues that could cause delays stretching that to 60 to 75 days, even up to 90 days. And for short sales, that timeframe will greatly depend on whether the lenders have already agreed to it and a preset price, but it could take anywhere from 45 days to even up to nine months, Phipps says.

   2. Ignorance with financing: Home buyers should learn more about the mortgage process, learn the terminology, and know what questions to ask in shopping around for the best mortgage rate. For example, Carolyn Warren, author of "Homebuyers Beware," cautions buyers to never tell a lender, “This is my first time, and I don't know how it all works — and I need you to guide me through the process," she says. "It's like putting a sign on your forehead that says, 'Charge me more.'"

   3. “Trash talking” when negotiating: If the home is painted pink and the buyer insists it needs to be repainted, he could risk jeopardizing negotiations. Instead, Phipps suggests that when making an offer, buyers should stress what they like about the home. “Don’t make it adversarial,” he says. A price reduction should be talked about in terms of what the home is worth to that buyer, he says.

   4. Getting in over their heads: Buyers may be tempted to stretch their budget in order to get the house of their dreams. Phipps suggests buyers don’t stretch themselves so thin that they miss out on having a reserve fund in case they need to make any unexpected repairs once they move in. "In most homeownership situations, there are going to be some unforeseen circumstances," Phipps says. "So you want to make sure you have some funds behind you."

Source: “Steer Clear of These Six Common Homebuyer Errors,” FOX Business (Sept. 11, 2012)

Daily Real Estate News | Friday, September 14, 2012

   The Federal Reserve announced Thursday that, in an effort to re-ignite economic recovery, it was taking aim at mortgage rates — a move that will likely take rates even lower from their current record lows.

   The Federal Reserve announced it will purchase $40 billion of mortgage-backed securities that will help boost the recovery in the housing market. What’s more, the central bank said that it will continue with the purchase program until the economy shows greater improvement, particularly with unemployment.

   "These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative," according to the Fed in a public statement.

   The Fed says the economy still has a long way to go toward recovery. The Fed predicts the jobless rate will stay above 7 percent well into 2014 and that economic growth will remain slow in the coming months.

   At its Thursday meeting, the Fed left its funds rate unchanged at near-zero, but announced the rate — which has a bearing on mortgages — would remain at "exceptionally low levels" until at least mid-2015.

   As mortgage rates sink lower, home shoppers have been taking advantage. The Mortgage Bankers Association announced this week that mortgage applications for home purchases were up 8.1 percent for the week ending Sept. 7. Mortgage applications for purchases also were up 7 percent from year-ago levels, MBA said.

   "While low interest rates impose some costs, Americans will ultimately benefit most from the healthy and growing economy that low interest rates promote," Fed Chairman Ben Bernanke said Thursday following the Fed committee’s meeting.

Source: Fed Pulls Trigger, to Buy Mortgages in Effort to Lower Rates,” CNBC (Sept. 13, 2012)

But still at record lows!

   U.S. mortgage rates rose for the first time in seven weeks, increasing from the record lows that have helped stabilize the housing market.

   The average rate for a 30-year fixed mortgage climbed to 3.55 percent in the week ended today from 3.49 percent, the lowest level in records dating to 1971, according to a statement from McLean, Virginia-based Freddie Mac. The average 15-year rate rose to 2.83 percent from 2.8 percent.

   Low borrowing costs and a shrinking inventory of available properties are helping to bolster a real estate recovery. The S&P/Case-Shiller index of prices in 20 U.S. cities decreased 0.7 percent in the 12 months through May, the smallest decline since September 2010.

   "House prices have turned the corner," Sal Guatieri, senior economist at BMO Capital Markets in Toronto, said in a telephone interview. "The record-low mortgage rates are supporting the best affordability in at least four decades."

   An index of applications for refinancing climbed 0.8 percent in the week ended July 27, the Washington-based Mortgage Bankers Association said yesterday. The group's purchase gauge dropped 2.3 percent.

   To contact the reporter on this story: Noah Rayman in New York at nrayman@bloomberg.net

   Editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

Daily Real Estate News | Monday, August 6, 2012

   Some Americans are still jittery over the housing market, but here are eight positive signs that should quell some of their fears.

   1. Housing prices are on the rise across the country.

   2. Foreclosures have slowed. Analysts suggest that as the supply of distressed homes slows, buyers will be forced into higher-price properties too.

   3. Inventories of for-sale homes on the market are decreasing. In fact, inventories of for-sale homes have dropped 24 percent from a year ago.

   4. Mortgage rates are at ultra record level lows, for those who can qualify.

   5. Housing starts rose 6.9 percent in June. Also, existing-home sales were up 4.5 percent higher in June compared to one year ago.

   6. Home building stocks are on the rise.

   7. For investors who are buying homes, rents are soaring, allowing them to cash in on their investments. Rental prices are at a 10-year high as medium units rent for $710 a month.

   8. Home affordability is at record highs for the median income family, due to falling home values and super low mortgage rates. In fact, a recent study found that it is cheaper to buy a home than rent in basically ever major city in the U.S. For those who buy, you can save the cost of renting by owning the home for five years or less.

   But while the signs point to a housing market on the mend, some Americans still remain hesitant. Many Americans are still underwater on their mortgage, owing more on their home than it is currently worth. Also, the economy continues to weigh on the recovery, particularly a dampening employment outlook, which analysts see as tied to housing.

   Still, The Wall Street Journal concludes in a recent article that if you take into account all the positive signs lately in the housing market, “housing presents an attractive long-term investment that should hold steady or even have upside surprise in the short term.”

Source: “Finally, It Is Time to Buy a House,” The Wall Street Journal (Aug. 1, 2012)

By Alejandro Lazo, Los Angeles Times | Thursday, August 2, 2012

   Real estate website Zillow has a provocative data point for every renter thinking about buying these days: That move pays off after just three years on average nationwide.

   The company, which lists for-sale and for-rent information on its site, has released a new analysis of what it calls the "break-even horizon," comparing what it would cost to buy or rent the same home in a number of U.S. markets over time.

   The rent-or-buy calculus varies widely depending on where you live.

   The analysis takes into account a host of factors potential buyers should think about when considering the leap, including the down payment, mortgage and rental payments, buying and selling costs, property taxes, utilities, maintenance costs and tax deductions. The analysis adjusts for inflation and forecasts home value and rental price appreciation.

   Zillow senior economist Svenja Gudell said the data should help homeowners get a rough and immediate sense of whether buying makes sense in a particular area in relation to their financial situation.

   "For a home buyer out there, it is really tough to get a good grip on the buy-versus-rent decision," Gudell said. Although buying a home is a deeply personal decision, she said, the analysis gives consumers "a sense for 'Am I ready to make this decision?'"

   Rents are rising, housing affordability is at record levels, and mortgage interest rates remain very low. These factors are prompting many renters to consider homeownership.

   Things to consider when buying, particularly in an slowly appreciating market, include how mobile will you be, your financial situation, marital status, career goals and personality, Gabriel said.

   In many regions buying has become increasingly attractive compared with renting. There are also non-financial reasons for buying.

   "I can enjoy living in this house for the rest of my life, and nobody can throw me out of it," he said. "You are consuming something, and you have control over it, and control has some value."

Daily Real Estate News | Thursday, August 2, 2012

   A new study shows that in more than three-fourths of 200 metro areas in the U.S., home owners would “break even” financially by owning a home after three years or less than if they opted to rent instead.

   The recent study by Zillow factors in home ownership costs -- including down payments, closing costs, mortgage payments, property taxes, utilities, and maintenance costs -- and compares it to the costs of renting. The study supports other recent findings that show with rents are on the rise nationwide that home ownership is becoming increasingly affordable with record low mortgage rates and falling home values.

   "Historic levels of affordability make buying a home a better decision than ever, especially considering rents have risen more than 5 percent over the past year," says Stan Humphries, Zillow’s chief economist.

   Zillow found that even in some markets, such as Miami, a person buying a home would only have to stay in that home for about 1.6 years for it to prove better than renting one there, due to the rising costs of renting in the city. Tampa, Fla., and Memphis, Tenn., also were found to be some of the top cities where owning a home trumps renting by the most, according to Zillow.

   Meanwhile, San Jose, Calif., home owners have the longest time until they reach a “break even” point on their homes. Home owners there would have to wait 8.3 years before their home purchase would trump renting, according to the Zillow study.

Source: “Buying Beats Renting in Most Cities,” CNNMoney (Aug. 2, 2012)

August 1, 2012

   The latest Texas Quarterly Housing Report, compiled by the Real Estate Center at Texas A&M and issued by the Texas Association of REALTORS®, paints a strikingly different picture from the same time a year ago. In second quarter 2012, statewide home sales were up 13%, the median and average sales prices were up 7%, and the inventory of homes for sale was down 27% from second quarter 2011. These positive numbers give real credence to the idea that Texas continues to lead the nation in economic recovery.

   What does this mean to you? With interest rates are under 4% time is now before inventory is even lower and prices are increasing more!

LOW INVENTORY AND HIGH DEMAND DICTATES PRICES

Daily Real Estate News | Monday, July 16, 2012

   Texas ranks top as the most affordable housing market in the country, and record low interest rates on loans in recent weeks has pushed affordability even higher in the Lone Star State.
   According to the Real Estate Center at Texas A&M University, a home buyer making $37,351 a year could likely qualify to buy a $150,000 home with a 30-year, 80 percent loan with a 4 percent interest rate. The monthly payments would be $572.90. In 1991, however, a home owner would have needed an annual income of $49,023 to qualify for the same loan, which would have carried an average interest rate of 9.64 percent.
   “The home purchasing power of a dollar in income increases dramatically as interest rates fall,” says James Gaines, research economist with the Texas A&M Real Estate Center. “With an 80 percent loan at 10 percent interest, $1 of income buys about $3 of housing. At 7 percent, it buys $4 of housing. At 4 percent, it buys nearly $5.50.”
   But while Texas ranks as the most affordable market now, housing experts say other states are gradually narrowing that gap. The national median home price dropped 25 percent from 2006 and 2011, according to Gaines. Meanwhile, Texas’ median home prices increased 4 percent in that period. Gaines says that Texas may see a decrease in its affordability as home prices begin to rise faster than incomes in some areas.

Source: Real Estate Center at Texas A&M University

Shonda Novak, Commentary | Friday, May 18, 2012

   After several years with a virtually dry construction well, Central Texas' real estate development pump is being primed again.
   The pipeline of planned projects is replenishing, and construction cranes - the "state bird," as developers jokingly call it - are multiplying in the region.
   While the local apartment market has been sizzling for nearly two years, other sectors are now picking up steam. Residential, office and hotel projects - and yes, more apartments - are in the works.
   Some projects that had been sidelined during the downturn now have financing and are rushing toward the starting gate.
   It's all evidence the real estate market is heating up in a city that has fared better than most during the economic downturn.
   "God willing and the creek don't rise, Austin is likely to see a wave of development at a level it has never seen before," predicted Mike Kennedy, president of Commercial Texas LLC, an Austin-based commercial real estate services firm.
   Local architect Brett Rhode, a principal in Rhode Partners, said the firm is designing four large-scale apartment projects downtown ranging from eight to 24 stories. In addition, "we are leading feasibility studies for a significant number of new projects in or near downtown - including hotel and office projects," Rhode said.
   "I see the urban (apartment) market continuing to grow through the end of the year, and then level off," Rhode said. "I am optimistic that this current surge of activity will be a catalyst for a more sustainable cycle including new office and retail in downtown Austin."
   Rob Golding, CEO of Live Oak Gottesman, an Austin-based firm that develops, leases and manages office, retail and industrial properties, noted that "activity in a general sense is really picking up pace across the spectrum." At Bury and Partners, an engineering, land planning and landscape architecture firm, "Definitely my phone is ringing more, and it's both clients I've had relationships with for awhile and new clients," said Robert Pilgrim, a vice president and director of planning.
   At local business events, there's "an excitement that I haven't seen in three years," Pilgrim said. "Everybody has smiles, and everybody's talking about being busy." Newly announced projects include an office tower Cousins Properties Inc. plans at Third and Colorado streets downtown. And last month, White Lodging Corp. said it has financing in place for Austin's biggest hotel, a 1,012-room JW Marriott convention hotel that's set to break ground in June. In addition, Manchester Texas Financial Group is forging ahead with a convention hotel planned for East Cesar Chavez and Red River streets.
   Talk to local developers, and they'll tell you the change is palpable.
   At a recent Urban Land Institute event in Austin, developers agreed the number of deals on the drawing board is a testament to the strength of the local market. "A lot of development deals are happening here because the people who develop, who finance development and who invest in development think that Austin is a smart place to be," said Kent Collins, a principal at Centro Development, an Austin-based apartment developer. Collins said that's in part because more people are choosing to live and work in Austin.
   In fact, development activity is picking up so much that the city can't keep up with the permitting workload, said Richard Suttle Jr., an attorney for developers. Last month, city staffers acknowledged a backlog, saying the delays are due in part to a flood of applications for new commercial and apartment buildings.
   Following the apartment sector's lead, office rents are beginning to rise, concessions are drying up and new construction is being talked about as excess inventory gets absorbed, Golding said.
   "We and a number of others are all actively back in the market looking for sites," both suburban and downtown, that would come to market in two or three years, Golding said. As is typical in the current lending climate, lenders and prudent developers aren't moving forward without having tenants committed for at least half the project, he said.
   On the retail front, leasing also is picking up, with most of the activity from fast-food franchises and other service providers, although as yet there hasn't been a new spurt of retail development, Golding said. But as retail occupancies climb, rents will rise, and the new development seen in the apartment market and being contemplated in the office market will migrate to retail, Golding said.
   But like any real estate veteran, Golding sounded a cautionary note. With the economy still fragile, the debt and equity markets for real estate remain cautious. "Yes, the spigot is being turned back on, and people are feeling bullish on the market," he said, "but it's got to be disciplined enthusiasm." Translation: "That means we're not going to try to do anything foolish. There's always a lender who will make a loan. It's up to the developer to decide when and how much risk they're willing to take."

May 28, 2012, in Home Trends, by Melissa Trace

   Home buyers may be so swayed by the home’s appearance and price that they may be missing out on researching some other important factors about the home that may keep them happy there for years to come. Articles in U.S. News & World Report and the Community Associations Network highlight some of the most common areas that buyers’ are overlooking in their home purchases.

   Some of these overlooked areas include:

   1. Nearby zoning. The surrounding area of a home or neighborhood can change drastically through the years so home buyers shouldn’t always assume that what they see today is what they’ll get a few years from now. Green picturesque landscapes outside their windows may one day be replaced by a row of retail stores or major highway? On the other hand, sometimes change can be viewed as good, such as a recreational park or school nearby.

   To avoid unhappy surprises, though, home buyers should investigate the zoning of any vacant properties near them to give them more of an idea of what the future may hold.

   2. Remodeling interference. Home buyers may have big plans for the home they want to buy, but are they sure they’ll be able to do everything on their list? Homeowner association’s may have something to say about home owners who want to change their exterior. They also may have something to say about additions, like adding a garage or a guest house, or even what type of plants you use in your front or backyard. Any home buyers with lofty remodeling goals may want to check with the community or homeowner association beforehand to make sure their plans will be allowed.

   3. Sight, sound and smell. Home buyers might want to tune in to any noise that may pose a problem for them in the neighborhood, such as by visiting the home at several different times of day and night. Maybe it’s all quiet in the afternoon but there’s a loud dog barking next door all evening? Also, how’s the traffic at different times of day? The neighborhood may become a cut-through to commuters during rush hour … will that pose a problem?

   And finally, home buyers shouldn’t forget to pay attention to the smell. Depending on which way the wind is blowing at certain times, you might pick up a whiff of a manufacturing plant or waste-processing facility.

   So buyers should be encouraged to use all five of their senses in deciding the right home for them, and not forget that long-lasting happiness with a home purchase is much more than fancy upgrades.

By American-Statesman Staff | Friday, May 18, 2012

   Led by a rebound in the construction industry, Austin continued its steady job growth in April, helping the metro area's unemployment rate drop to 5.5 percent, its lowest level in more than three years, according to the Texas Workforce Commission's monthly report released today.

   The Austin area added 6,300 jobs overall in April for a 2.4 percent annual growth rate, according to the Workforce Commission. The area's unemployment rate was 5.5 percent, compared with 6 percent in March. The last time the Austin area's unemployment rate was at 5.5 percent or lower was December 2008, according to Workforce Commission data.

   The state's unemployment rate in April dropped to 6.5 percent, from 7 percent in March. Part of the reason for Austin's job growth was the construction sector, which added 2,100 jobs in April, a 6.1 percent annual growth rate. That's a reversal from March, which saw that sector surprisingly lose 2,300 jobs - 5.5 percent decline - from the previous month.

   USA unemployment rate was 8.1% in April 2012.

Home Ownership Makes Tax Time Less Taxing
Daily Real Estate News | April 12, 2012

   With the April 17 tax deadline less than a week away, your clients still have time to take advantage of the valuable tax benefits home ownership affords. The National Association of REALTORS®' consumer site, HouseLogic.com, can help.
   “Our government encourages home ownership because it benefits families, communities, and our nation’s economy; home ownership is an investment in our collective futures,” said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. “HouseLogic.com helps home owners identify the benefits that will save them money today and plan ahead for future savings, as well.”

   HouseLogic.com provides tips and tools for home owners, and devotes an entire section of its site to tax incentives for the home. NAR members can check out A Home Owner’s Guide to Taxes to find helpful articles they can pass along to their clients, such as 10 Easy Mistakes Home Owners Make on their Taxes, 12 Tough Questions (and Answers) About Home Office Deductions, and 6 Deduction Traps and How to Avoid Them that provide consumers with a wealth of information to ensure they get the maximum return to which they’re entitled.

   Tax benefits that encourage home ownership include the mortgage interest deduction, deductions for property taxes, and tax credits for energy-efficient remodeling projects and heating and cooling systems.

   For more information on tax deductions and preparation as well as articles you can add to your blog or Web site, visit www.houselogic.com.

Source: NAR

Average Loan Amount Grows: Market Thaw?
Daily Real Estate News | April 12, 2012

   The average amount of mortgages being approved by lenders has grown in the last three months from $215,000 to $235,000 — a possible sign of increased buyer and lender confidence, according to analysts at Capital Economics.

   Besides the increase in average mortgage amounts, analysts also point to other positive signs shaping up in the housing market, including a 20 percent drop in the home inventory the last 18 months.

   “It may be an early sign that buyer confidence is improving,” write Capital Economics analysts Paul Dales, Paul Diggle, and Amna Asaf in a new report.

   The report notes that the months’ supply of for-sale homes has dropped to a level where sales can support current prices, according to Capital Economics. Still, the report warns about 3.9 million homes that are in shadow inventory.

Source: “Average Mortgage Amount Increases by $20,000,” HousingWire (April 11, 2012)

Buyer Urgency Improves, More See Now Good Time to Buy
Daily Real Estate News | April 11, 2012

   More home buyers may jump off the sidelines this spring as they get more urgent about purchasing a home, fearing that home price and mortgage rate increases are on the horizon.

   Housing surveys in recent weeks have shown that more Americans are seeing now a great time to purchase a home. In the most recent survey, 73 percent of Americans say now is a good time to buy, according to the latest Fannie Mae Housing Survey conducted in March. That’s up from 70 percent in February who said it was a great time to buy.

   "Conditions are coming together to encourage people to want to buy homes," says Doug Duncan, Fannie Mae’s chief economist. "With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that home ownership is a more compelling housing choice."

   Indeed, more buyer urgency is evident in the market. Thirty-three percent of those surveyed by Fannie say they expect home prices soon to increase, which is the highest percentage in a year. What’s more, nearly 40 percent say they expect mortgage rates to rise in the next year too, which is also up from previous surveys.

   Coupled with that, 48 percent of Americans say they expect rents to continue to climb, and 44 percent say they expect their financial situation to improve in the next year.

Source: “More Americans Think It’s Time to Buy a Home,” MSN Real Estate (April 9, 2012)

What Do Americans Want Most Once Finances Improve?
Daily Real Estate News | Friday, March 09, 2012

   Fifty-one percent of Americans in a recent poll say that if their financial situation were to improve, they’d buy a home. Coming in second on the list of wishes, they’d make repairs or improvements to the home they already have, according to the poll of more than 1,400 Americans conducted by the National Foundation for Credit Counseling Web site, www.DebtAdvice.org.

   Meanwhile, 17 percent of Americans polled said they’d upgrade their car and 9 percent said they’d take a vacation.
"Home ownership has traditionally been a part of sound financial planning," says Gail Cunningham, spokesperson for the NFCC, a nonprofit credit counseling organization. "With a combined total of 74 percent of respondents selecting a home-oriented option, the poll results strongly suggests that people continue to place value in owning a home, and are anxious to buy a house or improve their existing one."

By Melissa Dittmann Tracey for REALTOR Magazine Daily News

Apartment, Condo Market Heats Up
Daily Real Estate News | Friday, March 09, 2012

   For the sixth consecutive quarter, the apartment and condo housing market continued to show signs of improvement.
The Multifamily Production Index, released by the National Association of Home Builders, measures builder and developer sentiment about current market conditions in the sector. The index reached 48.9 in the fourth quarter — out of a scale up to 100 — and reached its highest reading since the fourth quarter of 2005.

   "The apartment and condo sector continues to be a bright spot in the housing market, with the overall index at its highest level in six years," says David Crowe, NAHB’s chief economist. "The rental components have been the driving force behind the increased index level. And although the for-sale component remains weaker, it is still double what it was just six quarters ago."

   Still, the improvements are met with caution. Builders warn about the ongoing difficulty developers have faced in obtaining credit to finance development of new apartments as a major roadblock.

Source: National Association of Home Builders

Mortgage Rates Dip, Hover Around Record Lows
Daily Real Estate News | Friday, March 09, 2012

   The 15-year fixed-rate mortgage reached a new all-time low this week, while the 30-year mortgage edged nearer to matching its record low, Freddie Mac reports in its weekly mortgage market survey.

   The low mortgage rates are helping to push housing affordability to record highs. The National Association of REALTORS® reported this week that the average family has more than double the income needed to purchase a median-priced home.

Here’s a closer look at rates for the week ending March 8:

   30-year fixed-rate mortgages: averaged 3.88 percent — only 0.01 percentage points above its previous all-time low. A year ago, 30-year rates averaged 4.88 percent.

   15-year fixed-rate mortgages: averaged a new record low of 3.13 percent, with an average 0.8 point, dropping from last week’s 3.17 percent average. The previous record low for the 15-year mortgage was set in February when it reached 3.14 percent. Last year at this time, 15-year rates, a popular choice among refinancers, averaged 4.15 percent.
   5-year adjustable-rate mortgages: averaged 2.81 percent, with an average 0.7 point, falling from last week’s 2.83 percent average. Last year at this time, 5-year ARMs averaged 3.73 percent.

   1-year ARMs: averaged 2.73 percent this week, with an average 0.6 point, rising slightly from last week’s 2.72 percent average. A year ago at this time, 1-year ARMs averaged 3.21 percent.

Source: Freddie Mac

Housing Affordability Soars to Record High
Daily Real Estate News | Wednesday, March 07, 2012

   Low mortgage rates and falling home values have brought housing within reach to more families than ever before, according to the latest National Association of REALTORS® housing affordability index.
   
Housing affordability in January reached its highest level since NAR began tracking it in 1970. The index -- which tracks median home price, median family income, and the average mortgage rate -- reached 206.1 in January.

   "This is the first time the housing affordability index has broken the 200 mark, meaning the typical family has roughly double the income needed to purchase a median-priced home," says Moe Veissi, 2012 NAR president. "For buyers who can qualify for a mortgage, now is a very good time to become a home owner." An index of 100 means that median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, also accounting for a 20 percent down payment and 25 percent of gross income devoted to the mortgage principle and interest payments.

   NAR projects that affordability will remain high for the remainder of the year. "Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country," Veissi said. "If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth."

Source: National Association of REALTORS®

Rising Rents Make Home Buying a Better Choice
Daily Real Estate News | Friday, January 20, 2012

   Fallen home prices and record-low mortgage rates have pushed housing affordability to a 40-year high. Meanwhile, rental prices are continuing to rise at a fast pace, according to a new report released by Hotpads.com, a rental listing service.

   Rental prices in 20 of the largest metro areas increased 3.75 percent in 2011, and prices are expected to continue to rise in 2012. Meanwhile, home prices fell by 1.83 percent in 2011, according to the report.

   "In a lot of cases it's getting to a point where it makes more sense for people to buy because rent has been going up significantly faster, while home prices have been falling," Paul Gleger, author of the report, told AOL Real Estate.

   According to the report, New York has the highest rental prices, with a two-bedroom apartment’s median rent at $2,653. Other cities posting some of the highest median rents in the country: Boston ($1,929), Miami ($1,748), San Francisco ($1,607), Los Angeles ($1,717) and Chicago ($1,552).

Source: “U.S. Rental Market Stays Hot in 2011,” Hotpads.com (January 2012) and “Rental Prices Climb, Buying Remains More Affordable,” AOL Real Estate News (Jan. 18, 2012)