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.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

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.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

01/24/2012BY: KRISTA FRANKS

Source – DSNEWS.com

Joe Curtis

President

Pickford Escrow / The Escrow Firm

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Joe Curtis

President

Pickford Escrow / The Escrow Firm

"In the absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia."

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Here is a snippet from Ron Peltier’s recent talk on the Housing Market.  Ron is the CEO of HomeServices of America – a Berkshire Hathaway affiliate.

The key drivers influencing this recovery in 2012 are:

Household formation and population growth

·         United States is growing at a pace of 3 million households per year.

·         30+ million more people in the United States than in the year 2000 and an additional 30 million more are projected by 2020.

·         We are witnessing household formation at approximately 1.5 million per year.

·         There is pent up demand that has been underserved for the last several years and the forces of growth will drive home sales going forward despite lingering issues in housing.

Rent vs. buy

·         In almost every major market, rents have exceeded the cost of home ownership.

·         Those individuals who are employed and are currently renting should be educated on the economics of buying.

Home prices and affordability

·         Home prices have corrected to 2002 levels.

·         Affordability for home buying is now at an all-time high.

·         Today’s home values are realistic and when looking at the low interest rates and the overall economics of ownership, the monthly cost today is the same as 1981.

·         These conditions, however, will not continue for long.

Inventory of homes

·         Inventory of homes for sale is at approximately 2.4 million which is off from the peak by approximately 50%.

·         We have moved from a significant surplus to a balanced or surprisingly tight inventory supply in many areas.

·         With the shift of inventory levels, now is the time to encourage homeowners to list their home.

Interest rates

·         Interest rates are under 4% for a 30-year fixed mortgage.

·         These rates are at an all-time low and enable people to purchase at a fixed rate that is significantly below historical rates.

Economy/consumer confidence

·         Finally, the economy is beginning the slow process of healing from the “great recession”.

·         We have seen an increase in the number of jobs that have been created and a decrease in unemployment. The fundamentals are in place to see this trend continue over the next 12 months.

·         As consumer confidence improves, home sales will pick up.

Joe Curtis

President

Pickford Escrow / The Escrow Firm

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February 2012 Escrow Examiner.pdf Download this file

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This is brilliant response to Audi’s ad.

Joe Curtis

President

Pickford Escrow / The Escrow Firm

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2012: The year of a housing turnaround?

by KERRI PANCHUK

Improved employment figures and record home affordability levels could spawn a minor housing recovery this year, analyst Mark Fleming said Wednesday in theCoreLogic (CLGX: 14.47 -2.30%) MarketPulse report.

Fleming says economic concerns peaked in the summer of 2011 when politicians were stuck wrangling over the nation's debt ceiling and the economy seemed poised for stagnation.

Fast-forward a few months, and Fleming says conditions are better, making way for a possible recovery in 2012. Fleming's more optimistic outlook is mirrored in theFreddie Mac U.S. Economic and Housing Market Outlook survey for the month of January.

The Freddie report says economic growth will strengthen by 2.1% in the first quarter of 2012, while mortgage rates will remain low at least through the beginning of the year. In addition, the Freddie Mac survey predicts home sales will grow another 2% to 5% from 2011.

Fleming with CoreLogic says several other developments could spur along housing demand. One of those being the number of households paying off debts — a factor that creates more liquidity and access to credit. Furthermore, households started adding home equity lines of credit in the third quarter of 2011, bringing in more access to cash flow and suggesting borrowers and lenders are more confident.

He believes 2012 is the right time for a housing price rebound with affordability levels putting a floor on the market, barring further price declines.

With this in mind, Fleming said analysts will be watching the market closely in search of positive signs during the spring and summer selling seasons.

His report noted that "most housing statistics basically moved sideways in the latter part of 2011. Builder sentiment is improving ever so slowly, but remains at very low levels. Housing starts are also increasing, driven mostly by multifamily starts."

Fleming points out that single-family housing starts and permits increased at an annual pace of 15% at the end of 2011. Meanwhile existing home sales trended upward, rising 12% when comparing November 2011 to January.

Write to Kerri Panchuk.

Great ARTICLE from HOUSING WIRE – I’m optimistic for 2012.

Joe

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Joe Curtis

President

Pickford Escrow / The Escrow Firm

"In the absence of clearly defined goals, we become strangely loyal to performing daily acts of trivia."

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Vesting_PE.docx Download this file

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PE-2012RessCalendar.pdf Download this file

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January 2012 Escrow Examiner.pdf Download this file

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In observance of the Christmas Holiday; our offices will be closing at 3:00pm on Friday, December 23rd and all day on Monday, December 26th. The County Recorder’s office will be closed all day on Monday.

Joe Curtis

Pickford Escrow & The Escrow Firm

Twitter: www.twitter.com/pickfordescrow

Email: jcurtis@pickfordescrow.com

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‘Twas the Night Before Closing

A Poem by Christopher Dale of Pickford Escrow Company – Mission Viejo

‘Twas the night before Closing, and all through the house

Not a Seller was stirring, not even a mouse.

The Loan Docs were signed by the Buyer with care

In hopes they would close with no time to spare.

Their boxes were packed and ready to go

With visions in their head of a closed escrow.

The Agents worked hard and all inspections were made

Just a few days to go before they got paid.

When all of a sudden an issue arose

All parties were shouting, “Will my escrow close?”

The Seller’s were praying for a stroke of luck

While the Buyer’s rescheduled their moving truck.

With everyone glum, and their spirits so low

The turned to Christopher Dale at Pickford Escrow.

“Please help us!” they cried. “We need your assistance!”

Christopher picked up the file and with much persistence

He resolved all of the problems and then cleared the way

For a smooth, successful, and on-time closing day!

“On Title! On Agents! On Seller’s and Buyer’s!

“We must work together – the situation is dire!”

He pulled them together and worked as a team

And the Buyer closed escrow on their American Dream.

Christopher closed the escrow and fought the good fight

“Happy closed escrow to all, and to all a good night!”

Joe Curtis

Pickford Escrow & The Escrow Firm

Twitter: www.twitter.com/pickfordescrow

Email: jcurtis@pickfordescrow.com

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Celebrating Twenty Years of Excellence in Escrow!

This month marks the 20^th Anniversary for Pickford Escrow Company! "I am proud to have aligned myself with such a strong and respected organization for the last 7-years.", Says Christopher Dale, Branch Manager in our Mission Viejo Office.  Pickford Escrow Company and our sister Company, The Escrow Firm, operate in Los Angeles, Orange, and San Diego counties and are the pinnacle in premier Escrow providers in all of California! We have the Precision, Protection, and Prestige to handle your next escrow safely, ethically, and with the utmost professionalism.

Established in 1991, Pickford Escrow Company’s s mission has been to guarantee our clients the highest level of professional service. We act as a neutral party for all types of real estate transactions and a diverse range of clients. With offices across Southern California, we are one of the largest full service escrow companies in California.

Pickford Escrow Company is part of a comprehensive team consisting of your realtor, lender, title officer, escrow officer, transaction coordinator and you, the client. At Pickford Escrow we understand that you want an escrow company that is experienced, dedicated to customer service, professional and stable. With this in mind we strive to hire the best and provide an environment to do our best.

Pickford Escrow Company handles a wide variety of real estate transactions and we keep our fees competitive within the local market. Conveniently located throughout Southern California, we have the size and stability you are looking for.

In 2002 Pickford Escrow Company was proud to become part of HomeServices of America Inc., a Berkshire Hathaway affiliate. In an ever-changing industry, our affiliation with the world-respected Berkshire Hathaway family of companies underlines the strength, excellence and integrity of our services.

Joe Curtis

Pickford Escrow & The Escrow Firm

Twitter: www.twitter.com/pickfordescrow 

Email: jcurtis@pickfordescrow.com

 

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2012 Calendar-SD.PDF Download this file

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2012 Calendar-OC.PDF Download this file

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2012 Calendar-LA.PDF Download this file

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And it lands at Pickford Escrow in Laguna Beach!

Thanks Brad for sharing!

Joe Curtis

Pickford Escrow & The Escrow Firm

Twitter: www.twitter.com/pickfordescrow

Email: jcurtis@pickfordescrow.com

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Joe Curtis
President
Pickford Escrow / The Escrow Firm

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December 2011 Escrow Examiner.pdf Download this file

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