Houston Real Estate Radio – Houston Housing Market 1 of 3

Shannon Register, Broker/Owner of Register Real Estate Advisors and Host of “Houston Real Estate Radio,” sits down with Dr. Jim Gaines, Senior Economist at t…

Is Housing Market Springing Back? Hobbs and Ryan Forecast Thawing

Chicago, IL (PRWEB) March 07, 2013

As spring 2013 leaps in, the Real Estate Housing market is taking bold steps toward a brighter, warmer future and leaving (far) behind the numerous numbing winters of our property discontent. Thats whats in the wind according to two real estate pros and contributors to this article. Michael Hobbs and Terri Lee Ryan come armed with facts, stats and personal business experiences that not only indicate a home buying and selling thaw, but a nice(non-ice) recovery .

The housing market is going with the flow, not floe, says Michael Hobbs, President of PahRoo Appraisal & Consultancy in Chicago. He adds, now that 2012 is behind, it’s beneficial to take a look at what we left behind and what we are moving towardsnot only rising home values again, but a surge in home sales, as well. Hobbs cited recently released National Association of Realtors (NAR) statistics showing interesting and exciting trends. There were rising median home prices in ten of the past twelve months. The number of existing homes purchased by buyers was 4.65 million, up 9.2 percent from 2011, and was the highest volume increase since 2007 when 5.04 million homes were sold. And the NAR reported that as the volume increased, the inventory available for sale decreased to 4.4 months, which was down significantly from a high of 10 months in 2010.

One factor that really added to buyers purchasing power was historically low mortgage rates. Terri Lee Ryan adds. Shes a former (formidable) real estate broker, published author and online contributor to Todays Chicago Woman with her well-followed http:// People, Places & Property blog. Freddie Mac figures showed that mortgage interest rates in 2012 stayed below 4 percent. Thirty-year fixed-rate mortgages started the year at 3.96 percent and ended at an average of 3.35 percent, notes Ryan.


Karl E Case has her statistical back. Case, Professor Emeritus and co-developer of Standard & Poors/Case-Schiller house price index says, it wasnt surprising that 2012 marked the end of 48 months of depression in the housing industry. Furthermore, the end of the housing depression was marked by a concurrent reduction in short sale and foreclosure transactions from approximately one in three homes to one in four homes. There is no question that we have turned what seemed to be a headwind into a tail wind, says Mr. Case.

For the first time in nearly half a decade, adds Ryan, some home owners are experiencing a nearly-forgotten, but encouraging trend of positive equity in the marketnamely, their home is worth more than their mortgage. Ryan points to data from Corelogic , the company that collects and maintains the most comprehensive property, mortgage and consumer databases in the U.S. and around the world. Says Ryan, Coreloic estimates that only 25 percent of all Illinois homeowners are now underwater. I know from personal experience that many of these underwater homeowners are eager to take advantage of low housing prices and low mortgage interest rates.

Hobbs agrees not only on the basis of his years of appraisal experience, but as a real estate property and private equity investor and advisor. Says, Hobbs: More and more sellers may consider unshackling themselves from their home and mortgage via a Short Sale, where the property sells for less than the mortgage owned on the property. Hobbs attributes this trend to two important factors: historically low interest rates, as well as the extension of the Mortgage Forgiveness Debt Relief Act, which exempts sellers from income tax burdens of a Short Sale. Hobbs sources indicate that the volume of Short Sales in Chicago is actually predicted to increase in 2013, not decrease, because sellers of underwater properties want to become buyers of attractively priced houses and lock in low interest rates.

Hobbs says that the NAR (National Association of Realtors) expects Short Sales to be closely observed by home buyers due to the low inventory of available homes for sale, currently standing at 4.4 months, a significant decline from 10 months in 2010. Former Broker, Terri Lee Ryan observes that a number of Chicago Realtors are complaining about the lack of inventory in certain neighborhoods, such as Lakeview and Lincoln Park, where there are not enough good properties available for prospective buyers. The scarcity of inventory is resulting in price increases and declining days on market, notes Ryan.

Talk about climate change, concludes Hobbs. Real Estate represents a whole new, dynamic, evolving and exciting environment. Its a great time to adapt and profit.

Michael Hobbs, SRA, LEED GA, President of PahRoo Appraisal & Consultancy, is an expert on Real Estate Appraisal, Property Valuation, Entrepreneurship and Business Consulting designed to create transformational growth and profits. He is also an authority on sustainability and energy efficiencys impact on property values. His firm is an Angie’s List 2012 Super Service Award Winner and top firm for four years in a row. Mr. Hobbs can be reached at 773.388.0003.

Terri Lee Ryan is a former Chicago commercial real estate broker, marketing consultant and hotel developer. An avid writer, she is the author of Life Is One Big To-Do List. In People, Places and Property she dishes on leaders in real estate, new places in your neighborhood and deals being done in Chicago.

3 Housing Metrics Moving Parallel and Upward Signal Housing Markets Sustainable Progress

Minneapolis, Minnesota (PRWEB) January 08, 2013

In a welcome signal of a promising and sustained housing recovery in U.S. housing markets, the number of metropolitan areas on the National Association of Home Builders/First American Improving Markets Index (IMI) climbed again for a fifth consecutive month to 242 in January. This is up from 201 markets listed as improving in December, and includes local housing market entrants from 48 states and the District of Columbia.

“Home builders are confident of the Twin Cities improving housing market and predict continued home price improvement in 2013,” says Butch Sprenger, owner of Destiny Homes. “Minneapolis area homeowners seeking a newly built residential single-family homes and families considering a home renovation in 2013 have good reason to be encouraged by the positive momentum in home prices, the number of new construction permits that are up and employment indices that are increasingly evident that a housing recovery is solid across Twin Cities real estate communities” comments Sprenger.

“We created the improving markets list in September of 2011 to spotlight individual metros where – contrary to the national headlines – housing markets were on the mend. Today, 242 out of 361 metros nationwide appear on that list, including representatives from almost every state in the country. The story is no longer about exceptions to the rule, but about the growing breadth of the housing recovery even as overly strict mortgage requirements hold back the pace of improvement.” ~ NAHB Chairman Barry Rutenberg, a home builder from Gainsville, Florida

The latest additions included Atlanta; San Francisco and San Jose, Calif.; Denver; Jacksonville and Orlando, Fla.; Indianapolis; Baltimore; Minneapolis; Las Vegas; Portland, Ore.; Philadelphia; and Spokane, Wash. Metropolitan housing markets move on and off the list as monthly statistics change; the Minneapolis housing market is generally a nationally lead housing market in positive indices.

The IMI has climbed to almost doubled in the past two months as stronger demand during prime home buying season boosted prices across a broader number of metropolitan housing markets. NAHB Chief Economist David Crowe predicted that 2013 will see: “Similar home price gains, and hence the IMI, may be tempered in the future as we see data from typically slower months for home sales.”

In the Twin Cities region, according to a housing market January 7, 2012 report by “The Skinny” for the week ending December 29:

New Home Listings decreased 40.1% to 358
Pending Home Sales decreased 12.6% to 442
Housing Inventory decreased 30.0% to 12,916

The Case Shiller 20 City Home Price Index December 26, 2012 report showed that year-over-year data was up 4.3% from October to October. This now puts this metric only slightly behind the 4.7% calculated by the FHFA, and it’s closing in on the 5.4% growth rate reported by CoreLogic for the same period. “The fact that all three housing metrics are moving upward by parallel amounts suggests that recent home price increases are not happenstances. Being that the methodology and scope for these metrics vary slightly, we do see some divergence that is expected and confirm the big picture view,” says Sprenger.

Brian Coester, CEO of Coester VMS, a home appraisal company, spoke on 9 News Now with Jessica Doyle today about a huge pending mortgage rule. This important piece of the 2013 housing market outlook depends on the Qualified Residential Mortgage (QRM) upcoming ruling at the end of the month on what defines a good mortgage. “If they make that credit definition too narrow, you are going to have a very limited market for residential home mortgages. This is bigger than all of the other mortgage regulations coming through. Currently the only loans exempt from the QRM are FHA and Fannie Mae and Freddie Mac when its under conservatorship, as it is. If the Qualified Residential Mortgage gets done right, 2013 could be a great year.” While optimistic, concern remains that if the ruling is set too tight, only homeowners “with the best credit scores, the best income, everything ‘pristine perfect’ could be able to get home loans,” concluded Coester.

Contact Destiny Homes for any questions you may have. Homeowners in the Minneapolis and surrounding area residential real estate communities ready to build or renovate their homes may reach either Butch or Liz by calling 952-934-5706.

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