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Americans are increasingly more optimistic about the direction of the housing market, according to a monthly survey of more than 1,000 Americans conducted by Fannie Mae. 

The majority of those surveyed expect home prices to rise 1.6 percent in the next year. Also, about 18 percent of those surveyed say now is a good time to sell, which is the highest percentage since the survey was initiated. 

“Consumer attitudes toward the housing market remain modestly positive, despite signs of increased concern over the direction of the economy,” says Doug Duncan, chief economist at Fannie Mae. “While the latest results showed a pickup in the share of consumers expecting mortgage rates to rise, reflecting the uptrend of long-term interest rates since mid-July, that may soon change.”

About 40 percent of those surveyed expect mortgage rates to rise in the next year. 

While the majority were upbeat about housing, they are increasingly pessimistic about the direction of the economy. Sixty percent of those surveyed say they think the economy is heading in the wrong direction. What are your thoughts about this survey?

Source: “Fannie Mae: Housing Market Attitudes Improve Despite Increased Concern About Economy,” Dow Jones (Sept. 10, 2012)

The U.S. Department of Housing and Urban Development announced that it will offer nearly $1.8 billion to public housing authorities nationwide, allowing agencies to make large-scale improvements to public housing units. 

The funds also can be used to make energy-efficient upgrades to replace old plumbing and electrical systems, according to HUD. 

 “This funding will help housing authorities address long-standing capital improvements, but it only scratches the surface in addressing the deep backlog we’re seeing across the country,” said Hud’s Shaun Donovan. “Today, we are closer to helping housing authorities and our private sector partners undertake their capital needs over the long haul.”

Source: HUD 

Have you followed this program since it started as a solution to the housing problems? In 2007, 70% of the nations jobs were related to the housing related.  Have the Fed’s programs/ideas since then,  provided economic recovery? Is this just another “Smoke Screen”? Please provide your comments on how or if this may help your region?

Several recent indicators for the real estate industry are pointing to a market that is on the mend and entering recovery mode. 

Housing experts’ predictions for the new year tend to center around a market stabilizing before entering a gradual, albeit very slow, recovery. However, the tone is more upbeat than it has been in years for the housing market. This reflects current trends in the Placerville, El Dorado County, CA., regions.

Here are a few of the signs that are showing the market moving in a more positive direction: 

Home sales: Existing home sales are expected to increase 12 percent this year, following a 2 percent jump last year, Moody’s Analytics predicts. The signs are already showing: In November, pending home sales — a gauge for future home buying — reached its highest level in 19 months, the National Association of REALTORS® reported. (Read more.)

Consumer confidence: With mortgage rates at record lows and housing affordability high, about 71 percent of Americans say now is a good time to purchase a home. Also, more Americans are optimistic that home prices will rise over the next year — about 26 percent say prices will rise in 2012, an increase of 4 percent over the last survey, according to Fannie Mae’s December National Housing Survey

More information at sources: “Housing Outlook Is More Upbeat,” USA Today (Jan. 15, 2012) and “Consumers More Confident, Survey Says,” Deseret News (Utah) (Jan. 16, 2012)

Nearly seven out of 10 in America — seven more so for the millennial younger generation — say that candidates’ positions on housings will be very important to them in the 2012 presidential and congressional elections, according to a new survey by Move Inc. of 1,000 adults. 

Survey respondents identified the following top housing priorities for the next president’s first 100 days in office: 

• Helping home owners avoid foreclosure.
• Keeping interest rates low.
• Making more affordable mortgage credit available. 

 The survey also found that four out of five Americans say a strong real estate market is key to an economic recovery. 

“After four years of living in a housing downturn, American voters clearly want answers and are looking to our elected leaders for solutions,” Errol Samuelson, chief revenue officer of Move Inc., said in a statement. “Our survey found that while some people may be frustrated or pessimistic, 27.3 percent of Americans still plan on buying a home. The survey illustrates candidates who share the concerns of the American people and make housing a top priority will win their confidence.”

Source: “2012 Presidential Elections: 69.6% of Americans Said Housing Will Influence Their Vote,” Move Inc. (Nov. 8, 2011) 

Other information about the Placerville, California region at: www.dougandbudzeller.com

The National Association of Home Builders is stressing the need for policymakers to remove anti-housing barriers that they say are preventing a housing market recovery. After all, NAHB says, housing can be the answer policymakers have been searching for in boosting jobs and economic recovery. 

The housing industry can be the “key engine of job growth” the country needs, says Bob Nielsen, chairman of the National Association of Home Builders.Nielsen says that constructing just 100 single-family homes can generate more than 300 jobs and $8.9 million in taxes and revenue for state, local, and federal governments.

Yet, Nielsen says the government keeps placing stringent policies that are preventing the housing market from recovering and that are dampening demand and reducing Americans ability to purchase a home, from the tightening of credit and possible stricter down payment qualifications to reducing the conforming loan limit on Oct. 1. 

One of the main hurdles home builders are facing is obtaining credit from banks so they can begin working on new homes. The tightening of credit has brought new-home construction practically to a standstill in many parts of the country. 

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

Other Placerville, El Dorado County, California information at: www.dougandbudzeller.com

Many home buyers have been sitting on the sidelines due to economic fears and concerns that the U.S. could be heading for a double-dip recession. But a new poll from the Associated Press shows that most economists say a recession is not likely within the next 12 months, yet the economy will continue to be weak into 2012. 

The 43 private, corporate, and academic economists surveyed this month by the Associated Press reported the likelihood of a recession within the next 12 months is 26 percent. They cited high unemployment and weak consumer spending as two leading culprits that will hold back the economy into 2012.

The economists surveyed said they are optimistic that economic growth, job creation, consumer spending, and home prices will all rise over the next year — but the gains are expected to be so slight that many won’t notice, the Associated Press reported. 

Meanwhile, the markets will be anxiously awaiting Federal Reserve Chairman Ben Bernanke’s speech on Friday at a conference for the Federal Reserve Bank of Kansas City to see if he unveils any new steps to help revive the economy. 

Full atricle at: “AP Survey: Economists Doubt Another Recession Within 12 Months But See Weakness Into 2012,” Associated Press Newswires (Aug. 23, 2011)

Other articles relating to the Sacramento and Placerville, California regions at: www.sierraproperties.com

Watch out for Generation Y: This large, diverse, well-educated generation will drive the housing market recovery over the next 10 years, according to economists with the University of Southern California Lusk Center for Real Estate.

Gen Y (15-32 year olds) boasts about 77.4 million members, which is about equal in size to the baby boomers (46-64 years old). Yet, Gen Y is much more diverse and educated (60 percent of Gen Y goes to college), according to the center, which recently presented its findings at the USC Lusk Center Orange County Executive Briefing.

Stan Ross, Lusk Center Chairman of the Board, says that “baby boomers and Gen Y comprise 50 percent of the population and will soon be part of the largest U.S. wealth transfer ever.”

As more of this age group joins the work force, “they will produce a massive increase in housing demand,” forecasts the USC’s Lusk Center.

However, Ross points out “these kids are concerned. They have watched the stock market, financial markets, and economy wipe out their parents’ retirement plans. As a result, they will choose lower-risk investment strategies.”

Source: “USC Lusk Center Says More Educated, Diverse Generation to Drive Real Estate Recovery,” The Hoyt Organization (July 19, 2011) [No Link]

Other articles relating to the Sacramento and Placerville, California regions at: www.sierraproperties.com

Freddie Mac continues to sound optimism about the housing market for the second half of 2011. In its latest economic and housing market outlook report, Freddie Mac says that the housing market is unlikely to experience a “double dip” and home sales are projected to reach above last year’s pace by 3 percent to 5 percent. 

Despite an unemployment rate that sits at 9.2 percent, Freddie Mac says the gloomy job picture reflects a temporary “soft patch” in the economy and “does not foreshadow an inflection point in gross domestic product growth.”

Freddie Mac forecasts that the housing market “will likely follow the performance of the overall economy for the remainder of 2011.”

Rental housing will likely see the largest growth. Freddie Mac’s first-quarter apartment property price index rose 15.2 percent compared to last year.

While home buyer affordability is at record levels and mortgage rates are at historical lows, households are still putting off major purchases like buying a home, according to the report. In our Placerville, California region we are seeing more positive activities. 

More at: “Freddie Mac Says Housing Sector Unlikely to See Double Dip,” HousingWire (July 18, 2011) and “July 2011 U.S. Economic and Housing Market Outlook,” Freddie Mac (July 18, 2011)

In a letter issued to President Obama and members of Congress, a diverse group of national business leaders, including Realogy CEO Richard A. Smith, called on lawmakers to raise the $14.3 trillion U.S. debt ceiling and commit to a deficit reduction plan.

Experts have said that failing to increase the debt ceiling would not only have significant implications on the economy in general, but also real estate. If the government defaulted on its bonds, the government likely would have to raise interest rates dramatically, which would in turn hamper home ownership. (Read more at Speaking of Real Estate.)

“It is critical that the U.S. government not default in any way on its fiscal obligations,” the business leaders wrote in the letter to lawmakers. “Treasury securities influence the cost of financing not just for companies but more importantly for mortgages, auto loans, credit cards, and student debt. A default would risk both disarray in those markets and a host of unintended consequences.”

The letter was signed by several associations and companies, including Realogy, the Business Roundtable, the U.S. Chamber of Commerce, the Financial Services Forum, the National Association of Manufacturers, and others.

Also in the letter, the group called on lawmakers to reduce the nation’s long-term budget deficits. “As businesses make plans to invest and hire, we need confidence that, in the absence of a crisis, our government will not reverse course and return to large deficit spending. … Now is the time for our political leaders to put aside partisan differences and act in the nation’s best interests,” the letter stated. “We believe that our nation’s economic future is reliant upon their actions and urge them to reach an agreement. It is time to pull together rather than pull apart.” 

Other articles relating to the Sacramento and Placerville, California regions at: www.sierraproperties.com

Following its recent acquisition of PMH Financial, Stewart Title Co. will be expanding its services to include REOs and is asking for real estate professionals to join its new network.

Stewart Lender Services, a subsidiary of Stewart Title Co., acquired a majority interest in PMH Financial, an REO outsourcing and subservicing company which boasts an inventory of about $2.5 billion in real estate assets for banks, servicers, and hedge fund investors, HousingWire reports.

The acquisition will add REO services, short-sale management, and other services to the company’s core business. Stewart Title Co. will manage more than 6,000 properties all across the country.

Jason Nadeau, Stewart Lender Services CEO, told HousingWire that the company is encouraging experienced REO brokers to register and apply on the company’s Web site to join its new network.

Source: “Stewart Lending Expands into REO, Looking for Agents,” HousingWire (July 11, 2011) 

Other articles relating to the Sacramento and Placerville, California regions at: www.sierraproperties.com