What do Century 21 and The Cake Boss have in common? Find out on June 6th during a special episode on the Food Network! Century 21 and The Cake Boss have teamed up at The Mirage Hotel & Resort in Las Vegas for the 2011 Century 21 International Convention. Be sure to catch the episode on Monday, June 6th at 9:00PM.

"After four years of plunging home prices, the most attractive asset class in America is housing," proclaims Fortune magazine, one of the world's premier business publications, in its April cover story.

The article, headlined "The Return of Real Estate," explains that several market forces have created a more promising outlook for the industry. An excerpt:

So let's state it simply and forcibly: Housing is back. Two basic factors are laying the foundation for dramatic recovery in residential real estate. The first is the historic drop in new construction. The second is a steep decline in prices, on the order of 30% nationwide since 2006, and as much as 55% in the hardest-hit markets. The story of this downturn has been an astonishing flight from the traditional American approach of buying new houses to an embrace of renting. But the new affordability will gradually lure Americans back to buying homes. And the return of the homeowner will start raising prices in many markets this year.

The author, Senior Editor-at-Large Shawn Tully, acknowledges that demand has been extremely weak in recent years, but notes that a "remarkable shift in home affordability" and the cost of owning vs. renting bode well for housing's immediate future.

The second measure, the cost of owning compared with renting, should also inspire potential buyers. In 28 out of 54 major markets, it's now cheaper to pay a mortgage and other major costs than to rent the same house. What's most compelling is that in all of the distressed markets, owning now wins by a wide margin -- a stunning reversal from four years ago. It now costs 34% less than renting in Atlanta. In Miami the average rent is now $1,031 a month, vs. the $856 it costs to carry a ranch house or stucco cottage as an owner.

Some cities, especially those not immersed in foreclosures, will rebound sooner than others, Tully writes, but even the hardest-hit markets have reason for some level of optimism. One big reason: Investors.

"People always want to live in those sunny locales, and their job markets are starting to recover, albeit slowly. In foreclosure markets, the inventory problem is far greater because it includes not just traditional resale homes but millions of distressed properties. Fortunately those houses are now such a screaming deal that investors, including lots of mom-and-pop buyers, are purchasing them at a rapid pace."

The bottom line, Tully concludes, is that it's a great time to buy. His article's final advice for those on the fence: Beat the crowd.

 









To see the rest of the photos from the convention, please click here.

Depsite an improving economy and government efforts to keep homeowners in their homes (HAFA and HAMP programs), foreclosures are still on the rise, especially in California. The San Francisco Bay Area has been especially hard hit. Some statistics: In 2010, foreclosure activity increased in 149 of the nation's 206 metropolitan areas with a population of 200,000 or more, according the foreclosure tracking company RealtyTrac. Also in 2010, more than 2.8 million homes in the U.S. had foreclosure filings. Banks, investors, and new homebuyers are often the ones to profit from foreclosures. Currently, in Alameda County, there are more than 7,000 properties in the foreclosure process. This does not include properties that have been sold at an auction. Every day, more properties are added to that number as Notice of Trustee Sales are filed. The good news is that there IS help for struggling homeowners. As a REALTOR, part of my job is to provide homeowners with the help they need. I have 23 years of experience in this industry, and I have all the tools required to help struggling homeowners with a loan modification or short sale. In this housing market and economy, homeowners can't afford to not consider their options. Foreclosure is not the only answer! If you or someone you know needs advice, please give me a call at 510-494-2120.

Fannie Mae is finally stepping up and giving homeowners a great resource to turn to when they feel like they may be in trouble. Homeowners struggling with their mortgage payments are still increasing. The evidence: the national foreclosure rate is now above 3%. Another 7% of homeowners are more than 90 days behind on their payments.

Fannie Mae recently launched a new website, www.knowyouroptions.com, that includes an interactive video simulation that allows users to role play various situtions. The "WaysHome" feature of the video will connect with distressed homeowners. The "WaysHome" interactive video simulation takes a different approach than previous attempts by the mortgage industry to educate distressed homeowners about options to avoid foreclosure.

The video features three characters in various stages of homeowner distress: Miguel Gonzalez is current on his mortgage but concerned about his financial situation; Jackie Williams is chronically late with her payment and is letting other bills slide to keep up; Richard Lane is delinquent and facing foreclosure.

The simulation allows participants to make choices for the characters and shows the consequences. The video encourages distressed homeowners to seek help early on, and also warns them of the impact that taking no action can have on a person's credit and life in general.

"With a variety of financial hardships and other circumstances affecting homeowners across the county, making educated decisions is more important than ever," Fannie Mae spokesman Jeff Hayward said. "It's a travesty when people lose their homes because they don't know or understand their options."