Steps toward the long road to the housing recovery have been making a slow, steady progress this past year. Prices have begun to rise, sales are increasing, and construction permits to build new homes have significantly increased according to the Census Bureau.
New home construction is starting to heat up, with housing starts rising to the highest level since October 2008, according to a report from the National Association of Home builders (NAHB) . June 2012 reflected a strong increase in permits to build new homes, as there was a 19.3% increase when comparing figures to June 2011.
Sale prices for existing homes rose in April for the first time this year. According to Yahoo! Financial reports from this month, economic data reveals rising homebuilder sentiment, leading to four consecutive months of steadily increasing home prices. “With home building numbers on the rise and prices solidifying, the housing market should start contributing to national economic growth for the first time since 2007” according to Stuart Hoffman, chief economist for PNC Financial. Pending home climbed to the highest level since the end of a federal tax credit for first-time buyers in September 2010.
Our real estate professionals at Mirabal Montalvo are dedicated to providing you with the latest news and current real estate housing and economy market trends. Put your trust in the experts at Mirabal Montalvo, as we are knowledgeable beyond the real estate scope of the Corpus Christi region. We’ll provide you with an inside look behind this year’s third quarter report on the US’s economic and current real estate housing market condition.
Third quarter reports reveal that the housing market experienced growth, as sales figures increased while vacancy levels and inventory both decreased. Apartments were especially attractive to recent investors, and competition for buying all types of properties is rising, which has lead to an overall increase in property prices. Though the housing market has been slow to recover, projections of continual growth and rising prices are expected heal the housing market. Prospective buyers and investors are encouraged to invest now as low prices, mortgage and interest rates are anticipated to increase.
In recent months the job market was optimistic, as many new job opportunities have risen. Each month from April to June 2012, there was an average addition of 80,000 jobs, with no increase in the current unemployment rate. When compared to countries hit hardest by the financial crisis, the US unemployment rate is low at 8.2%, which is still well below the EU’s 10.3%.
A look at this year’s third quarter report evokes a positive outlook towards a steady path of recovery in the housing market, with promising signs for the current unemployment rate and current economic job market. With a steady increase in opportunities for new jobs in recent months, we can remain hopeful for the future of the job market. Prospective buyers are strongly recommended take advantage of today’s low prices in the housing market as prices are expected rise in the future.
Buying your first home can be an intimidating, overwhelming process. Purchasing a home is one of the most important financial decisions you may make in your lifetime. To ensure confidence before you dive into purchasing your first home, check out these helpful hints for first-time home buyers.
If you come prepared with the necessary documentation before visiting your lender when applying for a mortgage, you will save a great deal of time. Here is a useful checklist of some of the requirements you need for mortgage applications:
- Social Security Numbers of both you and your spouse.
- Checking and savings account history. You should have 6 months worth of documentation.
- Evidence of other assets such as bonds or stocks
- Employment verification documents. The name and address of someone that can verify your employment is typically sufficient.
- Proof of income. Bring recent paycheck stub with detailed information on your earnings.
- List of credit card accounts including approximate monthly amounts owed on each card account.
- List of account numbers and balances due on outstanding loans.
- Copies of your income tax statements for the prior 2 years.
Finding the right home for your family can be a difficult task, but you can make it easier by narrowing down what you’re looking for. Mirabal Montalvo is here to offer you some tips and factors to consider when finding your next home while keeping your family’s needs in mind.
Location is a highly influential factor when purchasing a home. You should find out if there are schools nearby for your children to attend and how they stand academically. Consider the travel distance and factor in commute time to and from school. The same applies for your other needs such as your commute to work and even distance to local grocery stores. Find out how close your potential home is to the places that you and your family will be traveling to most.
Another very important factor for finding the right home for your family is the size of the house. If you have children or are planning to have children in the near future, consider choosing a home with more square footage that features more bedrooms and bathrooms. Take into consideration if you would like a private work space and choose a home with an office or loft. If your family hosts visitors or relatives frequently, it is wise to have a spare guest room in your home readily available. It is wise to plan for your family’s future, and the needs of your spouse to avoid moving.
Do not forget to account for the safety of the home that you might purchase. Research crime rates and crime news that have taken place in your local neighborhood and community. If the home you are considering to purchase is older, be sure to check the kitchen area, floors, stairs, and doors to make sure your house is secure and abides by standard safety regulations.
Most real estate experts share an optimistic view about the residential real estate market in 2012. Lawrence Yun, the National Association of REALTORS’ chief economist, predicts that “very favorable affordability conditions will dominate next year…which will probably be the second best year on record dating back to 1970.”
Commercial real estate seems to be on a similarly positive path as residential real estate though some experts believe that a lack of construction in 2012 may cause demand to outpace supply in 2013, which makes 2012 a great time for investors to seek out commercial properties, especially here in Corpus Christ, Texas. Corpus Christi was recently ranked as a Top 10 Mid-Sized Investor Market by inman.com, and Corpus Christi’s popular South Side neighborhood has also been named a top 10 neighborhood to find foreclosure deals by the same website. This combination makes Corpus Christi an exceptionally attractive market for buyers.
Buyers should be advised, however, that despite interest rates remaining at all-time lows through mid-2013, lending institutions are being particularly cautious and are expected to continue to be highly selective throughout 2012. With little liquidity in the mortgage markets, buyers should be prepared to have more cash on hand than in times past. That being said, the market volatility of late may swing the pendulum back into positive numbers spurred on by reports in early 2012 of higher employment and retail profits as a result of the holidays. This could potentially result in increased cash flow from the mortgage companies.
The overall predictions for 2012 real estate appear to be rosy especially here in Corpus Christi. Contact Mirabal Montalvo to find out how to take advantage of the Corpus Christi real estate market in 2012.
The White House announced a new mortgage refinancing plan in hope it will be in effect by the end of this month. The Obama Administration has proposed a housing initiative with new regulations to make it easier for homeowners to refinance their mortgages.
President Obama’s initiative would be made to the current Home Affordable Refinance Program, the national refinance program that has been active for the past two years. The White House plans to reach out to millions of homeowners struggling to make mortgage payments and hold onto their properties. This new program could allow them to refinance mortgages even if their home is worth less than what they owe.
The White House has prioritized efforts to help the current housing economy and to assist the millions of struggling homeowners in America. The Obama Administration states:
“Homeowners on average could save $2,500 a year…that means about $50 billion a year nationwide.”
Agency officials are looking to reduce fees and relax eligibility standards to refinance property mortgages. The new changes to the Home Affordable Refinance Program will help homeowners with little or no equity in their houses refinance by reducing cost and removing caps which would prevent deeply underwater borrowers access to the new program. President Obama is pushing to streamline the process of home refinancing with hopes to raise the current loan-to-home value ratio cap, which is currently at 125%.
To experience the best in Corpus Christi Real Estate visit mirabalmontalvo.com. Mirabal Montalvo & Associates is one of the top selling brokerages in Corpus Christi, Texas specializing in the residential and commercial South Texas real estate market.
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