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ORANGEBURG LOCAL

REAL ESTATE REPORT 

Housing Crisis to End in 2012

as Banks Loosen Credit Standards  

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

803-378-5208  call or TEXT ___________________________________________________________________

Creating comfort in buyers and sellers of real estate in Orangeburg County, Calhoun County, Bamberg County, City of Orangeburg, Cordova, Neeses, North, Branchville, Sandy Run, Santee, Lake Marion, and many smaller communities in between the towns for the last 21 years.

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The Gospel According

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Studying the web metrics for the last few weeks the news is good [Good news equals Gospel]; Web surfers are out looking in the Orangeburg area at a rate which is 20% greater than same period last year. This usually translates into buyers and contracts. Some agents have traditionally told their sellers that the best time to be on the market is in the Spring. That is not a conversation I will ever have; the best time is always NOW- given the correct exposure and the positioning [price] in the marketplace a market-ready home can be sold anytime.

It is encouraging to see the increase in activity and the hope is that the government or banks will not do anything to help us; just leave it alone- it will be fine.

In the past four years everytime the market showed promise the powers that be jumped in and 'helped us'...the end result was always the same- THEY KILLED the momentum and we lost strength in the market.

Call me today to capitalize on your GOOD NEWS! 

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