Many people are wary about getting back into the housing market. They are concerned about declining values and challenging mortgage requirements. Despite these negatives, it may be a great time to get back into residential real estate. In the past few months, we have seen an increase in the median price of homes in Tucson, however, a third of the homes sold here in 2011 were under $100,000. The affordability index has never been better! Interest rates have hit record lows according to a recent Freddie Mac’s weekly survey and it’s not quite as arduous to obtain a mortgage as you may have thought.
 
Will 2012 be The Road to Recovery?
 
Predictions are that there will be new foreclosures hitting the market in 2012.  The good news is delinquency rates are declining quite a bit. The bad news is these foreclosures continue to slow down the housing recovery. Interest rates should remain historically low for the first half of 2012 while housing prices will find their bottom. You can expect to see modest increase in prices of homes in the second half of 2012. Pent up demand for housing is increasing.  Rental properties and foreign investors are ready to soak up deals and refinance programs such as HARP (Home Affordable Refinance Program) will also help the housing market recover its equilibrium.
 
Wild cards:
 
Eurozone, Employment, Election Year!
 
Call me, David Wolsky, for any mortgage related questions. I can be reached at (520) 275-2536 or david@davidwolsky.com. 

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