Full Sail Realty

Category Archives: Real Estate News

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

By: Krista Franks 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… Read more

back to top
Posted in Real Estate News Tagged , , , ,
pic 1

Federal Reserve Shares Insight On Restoring A Healthy Housing Market

By Jacque Johnson Bernanke recently sent Congress a letter and white paper discussing his insight into how the current housing market problems are impeding economic recovery. Acknowledging that the housing market is only one piece to the puzzle, he writes that “Restoring the health of the housing market [is] a necessary part of a broader strategy for economic recovery” and that “progress will come only through persistent and careful efforts to address a range of difficult and interdependent issues”. The key issues he identified as needing to be addressed included: The excess supply of vacant homes due to foreclosures A downshift in the supply of mortgage credit The costs imposed on homeowners, lenders, and communities due to inefficient foreclosure process He argues that relying on foreclosures to deal with homeowners that can’t meet their mortgage obligations is “costly and inefficient” and suggests that servicers “aggressively” pursue alternatives, such as: Converting foreclosed properties to rental units… Read more

back to top
Posted in Real Estate News Tagged , , , , , , , , , , ,

Real Estate Trend: More Buyers Pay In Cash

Posted By susanne On January 24, 2012 @ 4:38 pm In Business Outlook, Consumer News and Advice, Finance and Economy, Home Owner News,Real Estate Trends,Today’s Marketplace. In another sign that investors are more important to residential real estate markets than ever, nearly one out of three home sales in December went to buyers who paid all cash. In fact, so many investors are winning sales with cash and shorter closing timelines that they can offer lower bids, which may be may be depressing prices, especially on distressed sales, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. In December the overall proportion of cash buyers in the housing market surged to a record 33.2 percent, up from 29.6 percent a year earlier. Some 74 percent of investors used all cash to buy homes last month.  Investors accounted for 22.8 percent of home purchases in December 2011, up from 22.2… Read more

back to top
Posted in Real Estate News Tagged , , , , , , , , , , ,

Rising Rents Make Home Buying a Better Choice

Daily Real Estate News | Friday, January 20, 2012 Fallen home prices and record-low mortgage rates have pushed housing affordability to a 40-year high. Meanwhile, rental prices are continuing to rise at a fast pace, according to a new report released by, a rental listing service. Rental prices in 20 of the largest metro areas increased 3.75 percent in 2011, and prices are expected to continue to rise in 2012. Meanwhile, home prices fell by 1.83 percent in 2011, according to the report. “In a lot of cases it’s getting to a point where it makes more sense for people to buy because rent has been going up significantly faster, while home prices have been falling,” Paul Gleger, author of the report, told AOL Real Estate. According to the report, New York has the highest rental prices, with a two-bedroom apartment’s median rent at $2,653. Other cities posting some… Read more

back to top
Posted in Real Estate News Tagged , , , , , , ,