Spring in your step?

Spring in your step? Consensus gathers around improving market conditions APRIL 2012 Wondering why folks seem to have more of a 'spring in their step' this spring? Sure, the warm weather started unbelievably early and we barely saw winter. And yes, tax season is officially over. But one of the biggest reasons to smile in 2012 has been the activity of our local housing market. Chicago real estate has been extremely busy since the New Year and shows substantial signs of promising longterm improvement. That's right. It looks like there's a little less caution and a bit more optimism in the 'cautiously optimistic' outlook of late. Borrowers, for instance, are smiling. Capital Economics, a leading independent research firm, reports that banks are making credit available to more buyers, lending amounts up to 3.5 times borrower annual earnings. Banks are also loosening loan-to-value ratios (LTV), now lending at an average of 82% LTV vs. the mid-2010 lows of 74%. Homebuyers are smiling. Releasing its winter 2012 'Rent vs. Buy Index,' Trulia reports that in 98 of America's top 100 metropolitan areas, including the city of Chicago and Lake County/Kenosha, owning a home is more affordable than renting. Key factors include low home prices, rising rents, and record low mortgage rates, still around 4% for 30-year fixed products. Builders are even smiling. In late March, the Urban Land Institute released its real estate forecast for the next three years, with encouraging trends in both the residential and commercial building sectors through 2014. The panel estimates that single-family housing starts will jump from 428,600 in 2011 to a projected 800,000 in 2014. As demand improves, home prices should follow. ULI CEO Patrick Phillips says, "what we see in this survey is confidence that the U.S. real estate economy has weathered the brunt of the recent financial storm and is poised for significant improvement over the next three years." (www.uli.org) And yes, REALTORS® are smiling, too. Helping you achieve your real estate goals puts the spring in my step every day. Count on me to continue to provide my highest level of service and attention, and thank you for the trust of your referrals.