Mortgage Bankers Association

Signs of a bottom in housing?

News The majority of housing is very bad for a long time. Everyone knows that the housing market in the United States was in a recession is bad for the past two years out. We started to see many signs of a fund for building activity, both nationally and in the Minneapolis market. This is typically strong spring selling season in the housing market. Finally it was sunny and hot in Minnesota, which leads buyers this time of yearlook at the houses. Mortgage interest rates have fallen almost one percent from the summer before. House prices have dropped a bit 'over the past year to make housing more affordable to do. Federal government control of the relief are only now beginning to come into mailboxes of people. These are some of the positive on the outlook for housing and the economy.

Nationally, there are many positive signs that construction activity has reached rock bottom. Housing stock, which normally leadstrue principles to 6 months, has started better than the overall stock market in recent months. The number of sales waiting to return home under the contract is fairly flat since last August (not fall). Affordability of housing at the national level has been greatly improved over the last 6 months due to a fall in property prices, lower interest rates and slightly higher personal income. National Association of Realtors Homebuyers Accessibility Index roseapproximately 40% of his depression in 2005. Home lending has grown significantly over the last 6 months, back to its highest level since 2004. The inventory of homes on the market (new and existing), the peak of last summer and got a bit 'since then. The registration of house "this is a good time to buy a house?" has jumped in recent months. With the increase in FHA loan limits from $ 271,050 to $ 365,000, it is estimated that a further 25% of homes on the market nowcandidates for FHA financing. The oversized inflated markets like Florida, California, Phoenix and Las Vegas probably hobbling the rest of the country to restore a year.

How is the Twin Cities real estate market in the spring selling season go? Surprisingly good actually. Edina Realty reports that appointments and open house activity was significantly until March. Activities of Edina Realty Web has had an increase of 20% of visits (25% increase of unique visitors) this year, more thanfirst quarter last year. "The activity is heating up this Spring market, particularly among first time Homebuyers and sellers in the lower range of the market," said Bob Peltier president of Edina Realty.

Intermediaries top of the Twin Cities region will also see some positive signs of a bottom of construction activity, especially at the bottom of the market. Brace Helgeson cold Banks Well said "the first time that the copper market on the south-west, taking home $ 400,000 isreally strong right now. Buyers do not need to sell first does not. We are still multiple offers on houses in the $ 250,000 – $ 350,000 price range. David Friedrichsen Shell Rock Realty see more banks are willing to finance house purchase, Homebuyers and a shift in mood. " Interest rates are fixed and house prices fell enough that there are more buyers in the market research. The conversation has shifted from negative to now I think it's a good time to buy ahome. "Colleen Larson results Remax agrees, saying that" buyer confidence is high. The activity is greatly improved, especially in the last month. Business at the lowest level of the market is stronger, but is a bit 'better in the high end too. "Recently they sold 2 homes in more than 1 million dollar price range for a week or less. Throne in July, a producer top 1% for Remax Results" has been an increase in energy prices in the market recently. She recently sold a house inRange price $ 600,000 + in 6 days and had three other buyers came to the house in a day late.

It 'hard to call the bottom in a class of real activity, especially one that has recently been in a bubble, as the U.S. housing market. House prices continue to fall this year and maybe next year. Psychology in the direction of the economy and housing market is very negative. I'm not counting on an increase in housing this year, only stability upstreamlow level. If we can only achieve stabilization in housing in the second half of this year, would be a pretty good for the economy of the United States and probably good for the global market share.