HAPPY NEW YEAR!!!!
2012 opens with lots of optimism. As you read, Jim Belote's "Mortgage Matters", you will note varied view from different banks as to the health/potential recovery of the housing market in 2012.
You should not be surprise that Bank of America provides a negative assessment due to their heavy inventory of foreclosed homes. If you or I owned "widgets" that were not selling and look to be worth less in the coming year, we both would be a bit negative when asked. The other banks noted are less impacted by foreclosed/short sales and see a rosier picture.
Jim's note on the math of home availability is good but he fails to note it applies to resale homes(previously owned).
When you add constrained demand for three years, we have the formula for a significant trend change in 2012.
So with rates now below 4%(3.75% FHA and VA loans!!) and plenty of great home values, why are you waiting around if you need a home.
YES! I AM PART OF THE CHORUS OF REALTORS, MORTGAGE OFFICERS, FINANCIAL ADVISORS, ECT THAT KEEP SAYING:
LOW HOME PRICES WITH LOW INTEREST
RATES IN AN ANOMOLY
Historically, home prices are high with low interest rates
home prices depressed with high interest rates
WE HAVE LOW RATES AND SHARP HOME PRICING!!
Do read all of Jim's notes below!!!