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While lending remains tight in troubled markets, banks are starting to relax standards for borrowers with good credit in recovering areas of the country. In some parts of the country, borrowers with good credit are more likely to be able to borrow 95% of the purchase price than they were just a few months ago. According to The Wall Street Journal, in troubled markets (i.e. Florida) credit remains tight and mortgage companies continue to scrutinize property appraisals, which makes it difficult for some borrowers to get financing. But in most areas of the country where prices are stabilizing or falling only slightly, standards are relaxing. This is great news and another sign that the economy is truly beginning to improve. Visit my website for more up-to-date real estate news.

Thanks to the success of home buyer tax credit to date, the outlook for housing and the economy appears to be headed toward recovery. Executives from some of the largest brokerages in the country expect to see their sales grow 6-8 percent in 2010 and home prices to start heading up about 3 percent. Existing-home sales are expected to total 5.01 million in 2009, a gain of 2.0% over last year, and then are forecast to rise 13.6% to 5.69 million in 2010. It is expected that the expansion of the tax credit to include repeat buyers will help boost middle-market sales for next year. The improvement in the middle market will help tighten inventories, helping to shore up prices. It looks as though we have seen the worst of it!

So, the chairman of the Federal Reserve Board himself has said it publicly that it looks like the recession is over. Here comes the recovery! But there was a significant footnote in Bernanke's speech on the economy last week in Washington: Don't look for a dramatic recovery. Bernanke expects that it will be a slow moving, plodding sort of improvement where the economy inches toward expansion and that there won't be a sudden, dramatic return to economic boom anytime soon. Bernanke's point about the end of the recession was underscored by a 2.7 percent jump in retail sales for the month of August. This is an important indicator because the key to stimulating the economy again is to get consumers spending, which appears to be happening. Not just for auto sales, which got a big boost in August from the government's "cash for clunkers" program, but also for other important categories, like food and clothing purchases, department store retail, entertainment

If you follow my blog, you are well aware of the fact that the first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now, both legislators and the business community are hoping to build on the incentive's success by expanding it! A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes are: Setting a new cap of $15,000 Extending the tax break into mid-2010 Making the benefit available to all home buyers, not just first-timers Offering a separate tax credit to $3,000 for borrowers who refinance Let's keep our fingers crossed! These proposed changes will benefit many home buyers and really stimulate the real estate market!

The Pending Home Sales Index , a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5. Economists are saying that buyers are responding to very favorable market conditions. Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market. Since first-time buyers must finalize their purchase by November 30 to get the credit, increased activity is expected in the months ahead Geographic Breakdown: Northeast: The Pending Home Sales Index shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago. Midwest: The index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008. South: The index slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago. West: The index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008. There are numerous buyer a

Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week. Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent. The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries. Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.

Real estate mogul Sam Zell believes that the decrease in real estate inventory and building slowdown will soon increase demand. He predicts that the U.S. housing market will turn around this summer because the building slowdown is increasing demand. "I can't tell you if it's June 29 or Aug. 1," says Zell, who made billions in commercial real estate by buying up distressed property. Zell said the housing downturn is international, but “the U.S. will recover and recover first around the world because we have a culture and we have an environment where we face up to reality quickly and effectively.” If Zell's predictions are accurate, this may be the best time buy ever! For those of you that have been waiting to buy, you might want to start making a move soon!

There are many factors to take into consideration when answering this question. One of course is interest rates, which have already reached historic lows (at least in the last 20-25 years) and continue to drop even lower. This won’t continue to happen forever! The foreclosure inventory continues to grow, keeping the majority of the prices low. Prices on homes right now are the lowest they have been in years. The programs that are available to first-time home buyers make it easier than ever to get a mortgage. Many of the programs offer low to no down payments, assistance with closing costs and options for the seller to contribute toward costs. Combine these three factors with the new home owner tax credit that the government has bestowed on first time home buyers ($7500 in your pocket) and it creates a an ideal situation. Put simply, there are a lot of good reason to buy right now! Many people believe that this is the golden age for buying real estate because everything is in the buyer’