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The real estate recovery is near…finally!

November 8, 2011

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When it comes to the real estate market, the sun will come out tomorrow, according to President and CEO of the Mortgage Bankers Association, David Stevens. In a recent interview with Inman News, Stevens said he believes that the real estate markets are stabilizing.

 

Delinquency rates are down to 8.5 % in the second quarter of 2011 (from 10% in the same period in 2010) and Stevens also points out that foreclosures are also down—even in the depressed states of Florida, Nevada and Arizona. This trend seems to be holding true in the Chicagoland area as well. New foreclosures filed in the Chicago area during September fell 34.8 percent compared with a year ago and dipped 15.1 percent compared with August 2011, according to figures released by the Illinois Foreclosure Listing Service (ILFLS).

 

Even in hard-hit Florida, existing home and condo sales continued their upswing in September.  According to the latest housing data released by Florida Realtors, increasing by 10 percent last month with a total of 15,036 homes sold statewide compared to 13,723 homes sold in September 2010.

 

Personal fiscal responsibility seems to be taking hold as well. The percentage of mortgages 90 or more days past due (the ones entering foreclosure) has been declining for six months, according to data kept by the Mortgage Bankers Association.

 

According to a National Home Builders Association analysis, 2011’s final quarter will see people in a better position to start spending money on housing again. Just in time, according to Stevens, who says home prices will never be lower and with new construction basically at a standstill, a home shortage could be on the horizon. Generation Y, those born between 1977-1994, are eight million strong and all will soon be competing for homes.

 

David Crowe, the chief economist for NAHB, told Builder Magazine he thinks new home sales will pick up late this year, followed by an increase in starts and building. “There will be some growth later in 2011 leading to great movement in 2012. We’ve built up substantial pent-up demand,” says Crowe, who estimates that at least 2 million households have delayed forming in recent years due to economic conditions.

 

The tide may already be turning, albeit slowly. According to Lawrence Yun, chief economist of the National Association of Realtors®, pending home sales remain above a year ago. The Pending Home Sales Index is 6.4 percent higher than September 2010. The PHSI in the Northeast is 4.0 percent above a year ago. In the Midwest the index remains 12.3 percent higher than September 2010. In the South pending sales are 5.0 percent above a year ago. In the West the index is 5.6 percent higher than September 2010.

 

Though not quite time to break out the bubbly, all in all, optimism is called for now. When it comes to real estate, it may be time to bet that bottom dollar.

 

 

 

 

 

 

 

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About century21affiliatedchicago

Century 21 Affiliated-Chicago (“C21AC”) is a full service real estate brokerage firm located in Chicago with a focus on residential and commercial properties. Our agent base and management team includes a wide range of specialties serving customer needs across the ever changing real estate landscape, with expertise in many niches, including REO transactions, investment sales, bulk purchasers and sellers, commercial product and traditional residential transactions. C21AC is part of Century 21 Affiliated (“Affiliated”), a top 5 franchisee in the Century 21 system with over 30 locations across the Midwest and over 32 years of history. C21AC entered the Chicago market in February 2011 to re-launch the Century 21 brand in the downtown area and to bring a proven operating platform to the large and fragmented Chicago real estate market. At Century 21 Affiliated, the customer comes first. Our complete commitment to delivering top-notch customer service to our clients is what distinguishes us from our competitors and makes us such a powerful force in the real estate industry. Specialties Residential Sales, Commercial Sales, Short Sales, Bulk Sales, REO's, Leasing, Business Services

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