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Fishhawk Lake Real Estate-You ready to hear some good news?

By
Real Estate Agent with John L Scott Market Center 700512026

You ready to hear some good news?  It’s about time.  This title caught my attention:

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

 

 

Here are a few statements from this article:

 

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

 

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

 

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

 

 

We’re not out of the woods and yet from what I’ve seen around the country with other realtors’ posts and market reports in ActiveRain, the face of the economy seems to be changing in incremental steps this year. It has a totally different feeling than last year at this time. I wrote about this earlier this year, it is a shining stone of hope, one to hold in your hand for good luck. (This doesn't mean you have to kiss the Blarney Stone, either!)

 

 

Comments (10)

Mary Stewart
HomeTrust Real Estate, LLC, Homes for Everyone - Wilsonville, OR
Wilsonville and Surrounding Portland Metro Areas

It will be interesting Gayle to see what really happens in our neck of the woods. Especially later on in the article it talks about buyers struggling in having high enough credit scores to qualify.  They also said that these small gains would not be enough to raise home prices. I always think these articles are pretty ambiguous as to what is really happening as they are having to take such a broad view of the country. Good information in general though.  I know here in Wilsonville there are few homes for sale that are $350 and below and they do not stay on the market long if they are in good shape. I only hope because lack of homes for sale it does not falsely raise prices, but keeps a balance. It is always a mystery to me.

Mar 01, 2012 12:57 AM
Sharon Lee
Sharon Lee's Virtual Assistance - Jonesborough, TN
Retired and loving life

Gayle-We all need to hear good news when it comes to the housing market and the economy in general. Very well written my friend.

Mar 01, 2012 01:51 AM
Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-739-3843

Mary~Love your new photo--you look absolutely gorgeous. Thanks for looking at the article, and I agree, it's a "wide swath" as far as some of the generalities. good to know about the success in Wilsonville, as $350K sounds on the higher end.

Sharon~Who doesn't like to hear good news, right?  That's why they do those "feel good" stories at the end of newscasts now. (People get tired of the negative).

Mar 01, 2012 02:02 AM
Debb Janes
Nature As Neighbors - Camas, WA
Put My Love of Nature At Work for You

One of our favorite neighbors just popped in to say goodbye. A wonderful couple who are short selling their home because of a job transfer ( I'm not handling it...long story and it's okay. In fact, good. ). At any rate, I was feeling blue to lose these folks and I'm so glad I popped in to read your post. You "always" lighten my moods. You're a gift. xxxooo

Mar 01, 2012 02:05 AM
Deb Brooks
Brooks Prime Properties Wichita Falls Texas - Wichita Falls, TX

"WHEW" now wouldn't that be great! Positive news is what's needed on this homefront!

FEATURED

DIARY OF A REALTOR!!!

Mar 01, 2012 02:18 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Gayle I sense more buyers out there but would not venture a crystal ball that we are out of the woods yet. Entirely still too many people out of work and we have a Presidential election to get through. I say bouncing on the bottom for awhile. Just not sure how long...

Mar 01, 2012 04:02 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

And not to be the bearer of bad news . . . but the shadow inventory continues to haunt the market.  This is great news for buyers, as REO's will compete and drive down home values.  Bad news for sellers.  But if the banks do lighten up on the lending, hopefully we can clear up the market in . . . 2-3 years.  Hopefully back to normalcy and stability. 

Mar 01, 2012 04:30 AM
Jim Brooks
Highrises & Condos by The Brooks Team - Las Vegas, NV

Gayle,

 That is some good news and it's nice to hear some positive news every once in a while.

May 09, 2012 07:22 AM
Kristin Hamilton CA REALTOR
Berkshire Hathaway California Realty - Beaumont, CA
(909) 557-6966- Specialize 55+ Communties Banning

Hi Gayle,

 This is very good news but unfortunately our area in San Bernardino County has a lot of areas that have  been hit hard but we are getting the short sales through for now. I think within 1-2 years, we might be doing fantastic.

Love the stone photo.

May 31, 2012 06:20 AM
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

Same as usual: Over react and then start loosening up and then they will go too far again.

Jul 16, 2012 04:33 AM