Thursday, April 8, 2010

Most Americans Say Now Is The Time To Buy A House


A Fannie Mae survey says 66% of Americans think it is the right time to buy, according to this article from Housing Zone (and another little reminder that the Federal Housing Tax Credit is expiring in T-Minus 22 Days!!!):

Nearly two-thirds of Americans think the time is right to buy a house, with a majority believing prices will be the same or higher over the next year, according to a Fannie Mae survey just released.

The 64 percent that said it is a good time to buy is just shy of the 66 percent that said the same thing in 2003 as the U.S. housing market was racing higher, said the survey. However, most of the 3,451 polled said that it would be tougher for them to get a loan than it was for their parents.

The survey comes amid signs that the U.S. housing market is recovering after suffering the worst downturn since the 1930s. But, while home prices in some regions are rising, soaring delinquency rates across the nation mean foreclosures will keep persistent pressure on the market, according to analysts.

Fannie Mae, the largest U.S. mortgage finance company, said that the public still "strongly believes" in upholding their financial commitments, though that weakens once people know someone who is defaulting.

Those who know someone in default are more than twice as likely to have seriously considered stopping payments on their own mortgage, Fannie Mae said.

Nearly nine in ten Americans, including seven in ten who are delinquent on their own mortgages, do not believe it is acceptable for people to stop making payments on an underwater mortgage, while eight percent believe it is acceptable.

Concerning the home as an investment, seven out of ten respondents (70 percent) said they believe buying a home continues to be one of the safest investments available. This compares to 74 percent who think putting money into a bank account (money market or savings account) is safe. In contrast, only 17 percent believe buying stocks is a safe investment.


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Wednesday, April 7, 2010

Signaling Jobs Recovery, Payrolls Surged in March

Perhaps even more encouraging than the numbers showing a surge in homebuying in February that I shared a few days ago is the fact that jobs are bouncing back, according to this NY Times article. That means a stronger underlying foundation for the return of the housing industry. It also means that the best deals on homes are going to start going the way of the Dodo for those who wait! Procrastinators beware...


Excerpts:

After losing eight million jobs since the recession began in December 2007, payrolls finally surged in March, the Labor Department reported on Friday. Employers added 162,000 nonfarm jobs last month. Nationwide, the unemployment rate held steady at 9.7 percent.

“We are beginning to turn the corner,” said President Obama, speaking in Charlotte, N.C., calling it “the best news we’ve seen on the job front in more than two years.”

[E]conomists saw signs in the latest report that the economy was poised to make steady, if slow, progress.

“Every major industry, except financial services and information, showed gains in employment,” John Ryding, chief economist at RDQ Economics, said. “From manufacturing, to construction, to retail, it really didn’t matter. They’re all hiring now.”

The economy has shown signs of renewal in recent months with the help of significant government spending. Analysts generally say they believe the recovery will endure even in the absence of stimulus programs.

“Strength effectively feeds itself,” said James F. O’Sullivan, chief economist for MF Global. “What happens to the labor market is key to perceptions about the sustainability of the recovery.”

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Monday, April 5, 2010

Only 25 Days left

Just a friendly reminder that there are only 25 days left if you want to take advantage of the Federal Housing Tax Credit. For those of you looking to buy a home for the first time, that's $8,000 credit if you qualify, and for those who have previously owned a home, it is up to $6,500! You have to be in contract by April 30th, and close on your house by June.


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Pending Home Sales Jumped More Than 8% in February - 4/5/2010 9:47:00 AM - HousingZone.com

Some good news from Housing Zone:

Pending home sales rose in February, potentially signaling a second surge of home sales in response to the home buyer tax credit, according to the National Association of Realtors (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, rose 8.2 percent to 97.6 from a downwardly revised 90.2 in January, and remains 17.3 percent above February 2009 when it was 83.2. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said the improvement is another hopeful sign. “The rise in buyer contact activity may signal the early stages of a second surge of home sales this spring. The healthy gain hints home prices are continuing to flatten,” he said. “We need a second surge to meaningfully draw down inventory and definitively stabilize home values.”

Details of the rise in the index are as follows:

  • In the Northeast it rose 9 percent to 77.7 in February and is 18.9 percent higher than February 2009.
  • In the Midwest the index jumped 21.8 percent to 97.9 and is 18.7 percent above a year ago.
  • The South increased 9.2 percent to an index of 107.0, and is 17.5 percent higher than February 2009.
  • The West fell 4.8 percent to 98.0 but is 14.6 percent above a year ago.

“Anecdotally, we’re hearing about a rise of activity in recent weeks with ongoing reports of multiple offers in more markets, so the March data could demonstrate additional improvement from buyers responding to the tax credit,” Yun said.

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