May is actually the the third month in a row showing increased housing starts. Apartment construction was down 21.3 percent in May, dragging overall housing starts down by 4.8 percent. Since apartment permits a) involve many units and b) are sporadic by nature, you should not read too much into a seasonally adjusted permit drop. Single family home starts increased in May by 3.2 percent.

After recalculating April 2012 numbers, the government noted that starts and permits were stronger than originally believed. The revised numbers indicate April housing starts at 744,000, the strongest pace since October 2008.

Home builders are even more optimistic than the government. Their collective estimates indicate a seasonally adjusted rate of 780,000 permits, the most since September 2008. While these estimates remain modest when compared to a strong, healthy economy, which might involve twice as many projected starts, all signs point to a housing recovery (finally) that is measurable.

Much of the builder confidence stems from the number of people expressing interest in buying new homes. As mortgage rates remain low and home prices are still very reasonable, the demand (and pent-up demand) for new houses is escalating.

Even many typically pessimistic economists expect housing construction to contribute to national economic growth for the first time since 2005. While no one is predicting a fast and strong increase in housing construction, industry experts do predict a fairly consistent gradual upward trend.

While the mortgage market remains tight, buyers with good credit scores and sufficient down payment funds are increasing. Newly constructed homes only represent around 20 percent of the residential market, but they have an important effect on the economy. Each new home means an average of three new jobs and almost $90,000 a year in additional tax revenue. You can calculate this taxes for your home with the best Metric Accountants.

Buyers looking for newly built homes in Washington DC, Virginia and/or Maryland should have a variety of exciting choices in the coming months. With low mortgage rates and reasonable home prices, the only question is “Why wait?” Visit I-Agent today and receive the largest realtor rebate in the industry.

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An April survey of Virginia real estate professionals, conducted by the Federal Reserve Bank of Richmond and the Virginia Association of Realtors, uncovered optimism that the real estate market is improving. While distressed properties, short sales and foreclosures, are still hampering a stronger recovery, 60 percent of the almost 1,500 Virginia agents surveyed believed that conditions were either “slightly” or “significantly better” than the past five years.

Residential Homes and First Time Buyers

While a Federal Reserve economist admits that the residential market has not yet fully recovered, first time homebuyers are playing a significant role in improving sales of mid- and lower-priced homes. First time buyers represent more than 50 percent of all recent Virginia sales.

Although high-end properties remain stuck in neutral, accounting for less than 10 percent of home sales, low mortgage rates are attracting first time homebuyers to more affordable properties. Almost 67 percent of recent home sales are in the middle to lower range of the price scale. First time homebuyers represent the majority of this home sale renaissance.

Mortgage Loan Qualification Standards Remain Tight

Along with homebuyers, real estate professionals are still a bit frustrated by the stricter mortgage loan qualifications put in place during the height of the recession. The majority of real estate agents responded that these qualification restrictions either “occasionally” or “frequently” hampered sales efforts.

While veteran homeowners and real estate agents realize the need for lenders to avoid a replay of the “wild ride” of the early 2000s, where there was a mortgage for every buyer, the ever-tighter mortgage loan approval restrictions are slowing down a stronger housing recovery. Most prominent mortgage lenders are committed to improving the quality of their home loans to avoid a repeat of the former free-wheeling period.

Optimism Helps Buyers and Sellers

The past five years in the housing market has served to better explain (tongue firmly planted in cheek) the humorous comment of baseball Hall of Famer, Yogi Berra, who allegedly said, “That place is so crowded, nobody goes there anymore.” The homes-for-sale market had too many available houses, many of which were distressed properties, and too few buyers.

This overabundant inventory is finally declining. Supply and demand theory dictates that, as the supply of “something” decreases, while demand increases, or remains constant, the price of the “something” increases. The optimism of Virginia real estate professionals is well-founded. Their optimism also helps fuel housing market improvement.

Sellers benefit as more buyers enter the market, helping drive prices upward. Buyers also benefit, as better-quality homes and less-pressured sellers give first time and veteran homebuyers better choices. As the Virginia housing market continues to improve, local buyers and sellers will adopt a positive outlook similar to area real estate professionals.

Source: http://www.washingtonpost.com/blogs/where-we-live/post/virginia-realty-agents-optimistic-about-housing-market/2012/06/12/gJQA9UCKYV_blog.html

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Declining Sales Inventory Spurring Price Increases

Finally, the overwhelming “inventory” of homes for sale, many of which are distressed or foreclosed properties, is declining. You needn’t be an Economics major to understand the basic rules of supply and demand. As the supply of “something” decreases, while the demand remains constant or increases, the price of the “something” goes up. In all non-communist societies (where prices are not set by the government), basic supply and demand theory still reigns supreme.

The real estate market also has another component that frequently occurs after a “cold” period. This condition is typically called “pent-up demand.” It means that many prospective home buyers, since the market downturn, have not bought homes, but still want to buy. This puts house sellers at an advantage, and if you’re looking to do that yourself, this guide on how to sell your house like a pro is particularly useful. Their desire to become homeowners has been lurking in their minds and on their wish lists since the downturn.

When these buyers perceive an active change in the market, they often re-enter their home buying mode and seriously search for a home to purchase. This demand factor is huge after over five years of little home buying activity. While home sales increased in 2011, the first quarter of 2012 recorded even substantially higher increases. Even in Florida, where homeowners have suffered terribly from the competition of short sales, foreclosed homes and high inventory (too much supply), home sales are increasing because of declining inventory and pent-up demand.

The Real Estate Market Is Still “Local”

Whether you want to live in Washington, D.C., Virginia, Maryland, Miami or Malibu, however, always remember that real estate activity, pricing and inventory are local issues. When you’re considering selling or buying, contact experienced, trustworthy local real estate agents who have familiarity with the neighborhoods you favor.

The number, prices, styles and desirability of homes can change drastically from neighborhood to neighborhood, even when these neighborhood “touch” each other. The three prime rules of real estate, location, location and location, always apply. Need proof? check with Pattaya Prestige Properties. Consider the selling prices of homes in Georgetown versus otherwise similar properties in many other neighborhoods in the compact District of Columbia. Selling prices can vary dramatically, even if the homes are withing walking distance of each other.

Yes, this is finally a good time to sell. However, as always work with a real estate professional highly familiar with your specific neighborhood. You will get the most valuable advice and enjoy the most efficient, stress-free selling experience. It’s time–take advantage of this opportunity to sell your home for best price since 2007.

The post Is It Time to Sell Your Home? Real Estate Advice from a Real Estate Professional appeared first on I-Agent Real Estate.

While the most recent Pending Home Sales Index (PSHI), published by the NAR, indicates a 5.5 percent decline from the first quarter of 2012, pending sales are still 14.4 percent above April 2011. As expected, pending home sales varied by region.

Regional Differences Are Dramatic in April

For example, in the Northeast, April pending sales rose almost one percent, displaying a 19.9 percent increase over last year. Other U.S. regions reported varying amounts of decrease. The always volatile West had the most dramatic decline at 12 percent. The South (6.8 percent) and Midwest (0.3 percent) recorded lower decreases in pending sales.

Yet, all other regions still recorded pending sales higher than in 2011. Industry observers believe this April 2012 decrease is, therefore, only a temporary downward spike. They maintain that the housing recovery is continuing to gain momentum.

Distressed and Foreclosed Properties also Declining

Part of the delay in a strong recovery remains the number of “distressed” home sales. Currently, distressed properties account for almost 33 percent of all home sales. Fortunately, the number of foreclosed properties also continues to decrease. NAR notes that “all of the major housing market indicators are expected to trend gradually up.”

This slow, but steady decline in troubled properties projects higher home prices in the coming periods. Some features of the housing recovery are dependent on indirect factors, such as the coming new federal budget and its features to fuel a stronger economic rebound.

Higher Values Help Homeowners Balance Their Budgets

Increasing and stabilizing home values help homeowners and the U.S. economy as a whole. Since the recession ended, there have been around 11 million homeowners who were “under water.” This large group owed more than their homes would bring if they sold them. Consequently, only those in a “must sell” condition offered their homes for sale. Still others simply “walked away” from their home and mortgage balance.

Higher home values means many of these homeowners can sleep better knowing the market price of their property is increasing. Reducing under water properties also helps buyers. Serious home buyers will find more homes on the market, helping them find the perfect house for them.

Although prices are higher, sellers, finally balancing their monthly budget, should be more comfortable with negotiating deals with qualified buyers. An overall modest home value gain of 10 percent in the coming months should reduce under water homeowners by around 4 million people.

While short-term pending sales are down around most of the U.S., the longer-term upward trend continues. With mortgage rates still low, this housing recovery bodes well for home buyers and sellers alike. Are you considering an active search for a new home?

The post After Recent Gains, Pending Home Sales Declining appeared first on I-Agent Real Estate.

Until the rest of the economy rebounds, the real estate market may need to sit on the bottom for a while. Reaching the market floor is the first step, but it is encouraging. From a “glass half-full” perspective, reaching market bottom typically results in a “bounce” up along the way.

New home construction has been steadily declining, particularly in the last four years. The culmination of this downward trend occurred in 2011, when only 434,000 single family homes were built. This is the fewest homes built since records have been kept. Zelman & Associates, a respected research firm, estimates that home builders will construct around 540,000 new homes in 2012. This is an encouraging 24 percent increase over last year.

With foreclosures and short sales still common, housing experts still worry about the potential detrimental effects of the “shadow inventory” of distressed homes for sale. Since this inventory is finally in decline, it may not kill a real estate recovery. However, it could force home values to sit on the bottom for up to several years.

Buyers who have been awaiting home prices to reach bottom, should rejoice–and act! This should avoid the heartbreak of those who historically wait for mortgage rates to hit bottom before refinancing. In most cases, unless they are very lucky homeowners, the interest rate rebounds before they move to refinance.

Those who have been waiting for the “best deal” to buy their next (or first) home should spring into action now. As everyone should know, economists and experts cannot predict the future. They can only offer experienced best guesses. Errors consistently occur, which is natural. Buyers should take advantage of the current situation before a bounce.

Sellers can also take heart. While there are few windfall profits available, home prices are stabilizing. Sellers no longer have to “give away” their homes or agree to cut already-discounted selling prices.

The market may be at the bottom, but, at least, it is stabilizing. How do you feel about this apparent stabilization of the real estate market? Are you encouraged? Or are you still fearful about the lack of a recovery?

The post When are home values going to reach bottom? appeared first on I-Agent Real Estate.

These are not the “ravings” of a real estate firm. Wall St. Daily confirms that these are “irrefutable signs” of a real estate recovery. Consider the following facts.

Housing starts are increasing. February 2012 starts are up 14.7 percent from the same period in 2011.

Building permits are up. In February, building permits were issued predicting an annual construction rate of 717,000 new units.

Declining available inventory (finally). Supply and demand 101, including new and existing homes, predicts a recovery, as available properties are down 19.3 percent in the past year. As supply decreases, demand dictates price increases and more sales.

Bidding “wars” returning. During the “hot” real estate market, competitive bidding on homes for sale was common. As inventories decline, some bidding buyers are returning to play the game. Since real estate is essentially a “flea market,” competitive bidding is a boon for homeowners.

Home sales bottom may have been reached. 2011 recorded the lowest home sales volume since records have been kept. Volume projects an 11.4 percent increase.

Previously-owned home sales rebounding. With an 8.8 percent increase in 2011, followed by a 14 percent increase in February 2012, the market is conclusively trending upward.

Price increases. Like unemployment data, price increases are a “lagging” indicator of a recovery. Recent Case-Shiller Indexes display that even the hardest hit markets show increased prices.

Stronger consumer confidence. Insiders, builders and consumers are displaying increased confidence, now at the highest level since 2007. Even home builders confirm their growing confidence in a real estate recovery.

Rising rents. Historically, as rent prices increase, buying activity increases. Home ownership becomes ever more affordable. We are now at this critical point.

Increasing employment . Even during the “rock ‘n’ roll” real estate days of the early 2000s required borrowers to have employment and steady income. As the jobs picture continues to improve, consumers finally have some verifiable regular income to motivate them to buy property–and lenders to offer financing.

These indicators are real and factual. If you’ve been craving to become a homeowner, the time is now. Should you be a homeowner considering selling your house, the time is now. Why wait? As veteran buyers and homeowners know, waiting for higher/lower prices or better climates is an exercise in futility. Go for the gold now.

Source: http://www.wallstreetdaily.com/2012/04/09/signs-of-real-estate-recovery/

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