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Housing Crisis to improve in 2012--Is This the Time to Buy?

Real Estate Agent with Samson Properties - June Rodgers Real Estate Group 0225023479

Many economists expect the housing crisis to end this year, according to a report released on Tuesday by Capital Economics.. One of the reasons: loosening credit.

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 is 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.

With loosening credit conditions, steep drops in foreclosures and short sales in Northern Virginia and the Washington DC Metro area, record-low interest rates and pent-up buyer demand, this could finally be the right time to buy!

Comments (1)

Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Evening Jine

Thanks for the good news. Have a great day

Jan 27, 2012 11:29 AM