6 Factors that will help boost housing prices in the US

According to a recent article by Credit Suisse, there are at least 6 reasons you should be unconcerned about housing prices and watching for the signs of an upswing in the future.

Reason #1
With the Government owning or backing nearly 70% of all mortgages issued in the United States any impact from a drop in house prices will be substantially lower and more easily absorbed and managed.

Reason #2
In every area, valuation is very inexpensive. This includes the areas of price to rent, affordability, price to income and rental yields.

Reason #3
Foreclosures, delinquencies, and charge-offs have reached their optimum levels.

Reason #4
The trend demand is approximately 1m above housing starts. The current level of excess inventory will be absorbed in 2 to 3 years.

Reason #5
Short sales, REOs and foreclosures peaked in 2009, and now represent less than a third of the total.

Reason #6
The long run average for housing in terms of the GDP was 4.5% and is now down to 2.2%.

While nothing is written in stone, it is always a good idea to stay focused on the pros and the cons in any situation and plan accordingly.

If you are in need of a closing attorney in Massachusetts, or are looking for mortgage preapproval, title search, or any other real estate matter, contact our office at (781) 251-0540
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Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.