The news most of you have probably heard about today is the Treasury Department’s prospective plan to revitalize the U.S. home market. Still in the development stage, the plan would lower loan rates to approximately 4.5%, more than a full percentage point lower than prevailing rates for 30-year fixed mortgages. Sources: “U.S. Eyes Plan to Lift Home Sales,” The Wall Street Journal, 12/4/08. “Treasury Considering Plan to Ease Mortgage Rates,” CNBC.com, 12/3/08
In December’s REALTOR® magazine, Lawrence Yun, chief economist of the National Association of REALTORS® reported that although it’s a good bet the economic picture will remain highly uncertain as we head into 2009, there’s a good reason to believe the housing market has turned the corner. He wrote, “Housing in some of the country’s hottest markets during the boom – California, Florida, and Nevada, among others – is once again starting to experience gains in home sales. The reason is increased affordability.” He continued, “even if the economy stays in the doldrums, it’s likely that existing-home sales will remain on an upward trajectory . . . . Given signs that improving affordability conditions are starting to drive home sale gains, the signs are good that home sales will spur the next economic recovery.” Source: “A Housing-drive Recovery,” REALTOR magazine, December 2008
“On average, owners who purchased their home 6 years ago have seen the value of their home rise 24.3% during that time, despite recent price declines.” – National Assoc. of REALTORS®, www.housingmarketfacts.com
“In a recent survey of economists, 8 out of 10 believe home prices will be higher in 5 years than they are today.” – Baylor University Keller Center for Research, as reported by National Assoc. of REALTORS® www.housingmarketfacts.com
Here on Kauai - on the south shore in Poipu, Koloa Landing reported that all of their Phase I residential buildings are in progress and beginning to take shape. The developer is anticipating that the 85 residences in this phase should be complete and ready for occupancy beginning January 2010 through the first half of that same year. Source: “A message from the developer,” Koloa Landing Co-op Broker Update, November 2008.
Once again, I hope you find this information helpful and refreshing. If I can be of assistance to you, feel free to contact me. Have a great day and mahalo for your consideration.
Debra A. Jason, RA, ABR
Realtor-Associate, Accredited Buyers Representative
When paradise is calling you, call me! Direct: (808) 826 1846, cell: (808) 635 8031
Vision Realty All Islands Kauai - on the highway in Hanalei, Lihue & Kapaa