Mar. 2, 2012
So far in 2012, newspaper columnists and television pundits seem to be preoccupied with presidential polls and contentious primary elections across the country. But has anyone noticed the increased number of “good news” stories about the economy and real estate?
In case you missed it, there’s a lot of good news available. For people hesitating to make a decision to buy a home, perhaps some of the stories recapped here will give you food for thought and motivate you to jump off the fence and into homeownership.
The National Association of Home Builders released the results of a poll conducted in early January showing that Americans still believe in the American dream of homeownership.
In fact, a sizeable majority of respondents believe homeownership provides a good place to raise a family (79%), helps create strong communities (67%), and is a key part of achieving the American dream (65%).
Other results:
Respondents who don’t currently own a home overwhelmingly said they wanted to buy one. One-third of all respondents believe homeownership is the best investment people can make.
Despite setbacks in the national housing market over the last few years, Americans still believe homeownership provides numerous benefits to them, their communities, and the economy.
According to reports from Fannie Mae’s Economics & Mortgage Market Analysis Group, the U.S. economy is expected to grow about 2.3% in 2012. The reduced number of unemployment claims is causing Americans to come out of a “summer rut,” and the housing market is already showing improvement.
Fannie Mae’s chief economist believes 2012 will be a year of moderate growth. That’s good news compared to the last few years.
Economic reports released by the federal government in mid-January showed the economy is rebounding, and 2011 inflation peaked at 3%.
This is good news, as consumers and corporations should have less concern about rising prices. The number of people seeking unemployment benefits is the fewest since April 2008. This trend provides further evidence that the job market is strengthening. When weekly employment applications consistently fall below 375,000, it’s a good indication companies are starting to hire again.
In December 2011, employers added 200,000 jobs. That marked the sixth-straight month in which the economy added at least 100,000 jobs.
And the unemployment rate fell to 8.5%, a three-year low. For all of 2011, the U.S. economy added 1.6 million jobs … up sharply from 940,000 in 2010. More jobs mean more hiring. More employees earning paychecks means less people seeking government benefits.
And more money flowing into the economy is good news for everyone.
Mortgage buyer Freddie Mac reported in mid-January that the average rate on a 30-year fixed mortgage dipped to 3.88%, down from the old record of 3.89%. The average on a 15-year fixed mortgage ticked up to 3.17% from 3.16%, also a record low.
Records for mortgage rates date back to the 1950s. Unprecedented mortgage interest rates mean that more people can qualify for a home loan on more homes. When more people can buy a home, you can expect more demand for homes, increased home sales, and rising home prices.
Almost all the news I’ve noticed so far this year tells me the economy is, in fact, coming back strong. America has been through tough times in the past, but always works through any problems facing it and becomes stronger as a result. Today is no different. Folks who were unemployed are starting to find jobs again, and low interest rates are stirring consumer interest in big-ticket purchases (homes, autos, appliances, etc.).
Texas REALTORS® are reporting ramped up home sales and purchase activity already in 2012. Homeownership continues to be a big part of the American dream and the foundation for individual family wealth and community health. If you’re a “glass half-full” kind of person, like me, and don’t currently own your home, I strongly encourage you to assess your personal situation and consider buying a home this year – before interest rates and home prices rise.
Right now, interest rates are still at historic lows, the inventory of homes for sale contains incredible bargains, and the economic future is looking brighter. But with all the good economic news and increased consumer confidence, things could swing quickly from a buyer’s to seller’s market. And all local markets are different, with their own unique characteristics.
For more information about living the American dream in a home of your own, in your particular part of Texas, contact a local Texas REALTOR®.
