National economists predict growth in 2011, according to an article in the Washington Post on New Year’s Eve. Even in Kansas City.
One of the factors used in predicting growth was that the National Association of REALTORS(R) (NAR) statement that pending home sales were up 3.5%. This showed that more home buyers are moving into the real estate marketplace, and a sense of confidence about future home prices maybe rising.
The Washington Post article by Neil Irwin also states that many consumers are paying down their debt, and lenders are loosening their credit availability, also adding to the ability of potential homeowners to buy houses. Since the real estate mortgage crisis, Kansas City mortgage borrowers have actually have had fewer loan options. The pendulum had shifted from nearly every borrower getting a loan to only the top credit worthy borrowers getting mortgage loans.
Ecomomist think that residential housing still won’t be a huge factor in the ecomomic growth, because the housing sector has been a drag on the economy for four straight years. But neither does housing appear set to be a major drain on growth. Residential investment constituted its lowest proportion of overall economic activity on record in the third quarter, meaning that even if it were to contract a bit, it would have little impact on growth.
One of the factors used in predicting growth was that the National Association of REALTORS(R) (NAR) statement that pending home sales were up 3.5%. This showed that more home buyers are moving into the real estate marketplace, and a sense of confidence about future home prices maybe rising.
The Washington Post article by Neil Irwin also states that many consumers are paying down their debt, and lenders are loosening their credit availability, also adding to the ability of potential homeowners to buy houses. Since the real estate mortgage crisis, Kansas City mortgage borrowers have actually have had fewer loan options. The pendulum had shifted from nearly every borrower getting a loan to only the top credit worthy borrowers getting mortgage loans.
Ecomomist think that residential housing still won’t be a huge factor in the ecomomic growth, because the housing sector has been a drag on the economy for four straight years. But neither does housing appear set to be a major drain on growth. Residential investment constituted its lowest proportion of overall economic activity on record in the third quarter, meaning that even if it were to contract a bit, it would have little impact on growth.
There also is a glut of homes somewhere in the foreclosure process. Banks have estimated the number of homes in the foreclosure process to be in the millions and they will be coming on the market soon. This year, we do not expect to see housing prices rise in the spring as in the past years during the springtime.
So what does this mean to Kansas City home buyers and sellers?
It means it appears we are in the beginning of recovery process in our recession. This will take time.
Kansas City home sellers need to be aware that low prices are what are driving buyers into the real estate market. In order to sell your Kansas City County home, you need to be priced aggressively and show like a model new home.
Kansas City home buyers have a little bit longer to take advantage of the low home prices and low mortgage interest rates. They will not last much longer. The home prices will start rebounding and the interest rates will rise.
RE/MAX sells more homes than any other real estate company.
For a reason...should we talk?
Let us know what you think or add to our blog by writing a comment. Do you have a real estate question for the Real Estate Wizards? Email us at RealEstateWizard@DowellTaggart.com
Blog post written by the Dowell Taggart Team of RE/MAX Best Associates
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