Count the ways the market has changed for 2013
1. Homes have increased in value and the demand is up. There was a 10.1% increase in home values in November to $180,000 average from a year ago per National Association of Realtors. Nine consecutive months of home price increases accross the U.S..
2. Record low loans will be a thing of the past. Rates will be increasing to 3.5-4% says senior Analyst Greg McBride with Bankrate.com. Now, barring any unusual changes in the economy interest rates should hold steady. Cost of getting a FHA will mostly likely increase this year. Reserves are at all-time lows and with the Federal Housing Administration Fiscal Solvency Act of 2012 it gives them authority to raise premiums to build back up its reserves.
3. Inventory of existing home down again in November by 3.8%, fewer distressed properties for sale, and lowest inventory since 2005.
4. New rules to protect home buyers from predatory lenders. Ability to repay rule, which takes place in January 2014 but most lenders will put in place this year. This should stop the risky practices such as interest only and "No Doc" loans that help create this mess in the first place. To many loans in the past set the buyer up to fail with loans they could never afford.
5. Home-Equity loans are back. Just like home loans, home equity loans have been going down too.  Home prices appear to be going up again lenders will be competing for your home equity business.
6. There are less and less distressed home deals to buy. Banks are giving distressed homeowners a chance to stay in their homes by giving them principal reductions as a way of avoiding short sales. 
7. New construction is up a whopping 27% over a year ago. Record low interest and increase in employment has spurred builders to break ground on new home projects.
8. You missed the bottom of the home sales market but prices are still at record lows. It’s time to check with a Realtor to see if it’s right for you to buy a home now. If you wait too long you may find the market will pass you by again.
Call Carol at 714-726-3166 or Carol@carolandjim.com

1. Homes have increased in value and the demand is up. There was a 10.1% increase in home values in November to $180,000 average from a year ago per National Association of Realtors. Nine consecutive months of home price increases accross the U.S.

2. Record low loans will be a thing of the past. Rates will be increasing to 3.5-4% says senior Analyst Greg McBride with Bankrate.com. Now, barring any unusual changes in the economy interest rates should hold steady. Cost of getting a FHA will mostly likely increase this year. Reserves are at all-time lows and with the Federal Housing Administration Fiscal Solvency Act of 2012 it gives them authority to raise premiums to build back up its reserves

3. Inventory of existing home down again in November by 3.8%, fewer distressed properties for sale, and lowest inventory since 2005.

4. New rules to protect home buyers from predatory lenders. Ability to repay rule, which takes place in January 2014 but most lenders will put in place this year. This should stop the risky practices such as interest only and "No Doc" loans that help create this mess in the first place. To many loans in the past set the buyer up to fail with loans they could never afford.

5. Home-Equity loans are back. Just like home loans, home equity loans have been going down too.  Home prices appear to be going up again lenders will be competing for your home equity business.

6. There are less and less distressed home deals to buy. Banks are giving distressed homeowners a chance to stay in their homes by giving them principal reductions as a way of avoiding short sales. 

7. New construction is up a whopping 27% over a year ago. Record low interest and increase in employment has spurred builders to break ground on new home projects.

8. You missed the bottom of the home sales market but prices are still at record lows. It’s time to check with a Realtor to see if it’s right for you to buy a home now. If you wait too long you may find the market will pass you by again.

Call Carol at 714-726-3166 or Carol@carolandjim.com