5 Reasons to Buy a Home in 2011

Real estate is likely to improve in 2011. Here are five reasons consumers should consider a home purchase next year:

1. Mortgage rates will stay low. Even with rates climbing (maybe to as high as 6 percent by 2012) they are still well below where they have been historically.

2. Tax cuts could help. Extending the tax cuts could encourage a more rapid recovery for the economy.

3. Americans want to be home owners. A recent Fannie Mae survey showed that Americans still believe a home is a safe and desirable investment.

4. Builders are about to begin building. Home builders have been sitting on the sidelines. This year, they think pent-up demand will create an appetite for new homes.

5. Homes are shrinking. Homes are getting smaller, which has made them more affordable.

If you are thinking about buying a home in 2011, please contact our office at 619-993-0687 so we can help you start the home buying process.

December Housing Scorecard

The latest housing figures from the U.S. Dept. of Housing and Urban Development (HUD) and the U.S. Dept. of the Treasury show continued home affordability in the housing market, with interest rates near record lows, but the market remains fragile, as prices are unsettled.

Foreclosure starts and completions dropped significantly in November, as lenders review internal servicing procedures. The housing scorecard is a comprehensive report on the nation’s housing market.

The December Housing Scorecard features key data on the health of the housing market including:

Foreclosure starts and completions declined significantly in November. As lenders review internal procedures related to foreclosure processing, many foreclosure actions have been delayed leading to a 21 percent decrease in foreclosure activity in November. While this is the biggest month over month decrease since 2005, the decline is likely to be temporary as lenders eventually revise and resubmit foreclosure paperwork in the coming months.

As expected with the expiration of the home buyer tax credit, new and existing home sales have remained below levels seen in the first half of 2010. However, the December report also shows that home prices and home equity declined moderately, as prices remain unsettled at this fragile stage of the recovery.

More than 3.9 million mortgage aid offers were initiated between April 2009 and the end of October 2010 —more than double the number of foreclosure completions during that time. These actions included more than 1.4 million Home Affordable Modification Program (HAMP) trial modification starts, more than 600,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and nearly 1.8 million proprietary modifications under HOPE Now.

San Diego Home Sales Down, but Prices Up

San Diego home sales dropped 11.4 percent from Nov 2009 levels.  On a somewhat positive note, it was the smallest downturn for single-family sales in 20 markets and much less than the 24.6 percent decline in the U.S.

San Diego's median price of $391,700 was up 4.1 percent from November 2009, the sixth largest year-over-year increase. Washington ranked first at 9.5 percent, reaching a median $336,100. San Diego's overall price ranked second behind New York City.

Economists point to the recent slow down in sales because many buyers purchased homes earlier in the year to take advantage of federal homebuyer tax credits.

Interest rates have been rising since the most recent low of 4.11 percent in early November to 4.83 percent as of  last week. The latest interest rate figures will be released by Freddie Mac on Dec. 23, 2010.