According to recently released government data from the Home Mortgage Disclosure Act, credit continues to be overly stringent. Although buyers’ incomes have increased since 2004, the loan-to income ratio has declined. For example, the median income for a buyer using conventional financing rose from $79,000 in 2007 to $90,000 in 2011, while the national median household income stayed flat at $50,000 during the same period. The indication is that more loan applicants with higher incomes were applying and/or banks’ income standards became more stringent.
After the last presidential election in 2008, foreclosure filings had increased 81 percent over the previous year and home sales were down nearly 42 percent from record highs in 2005.
Each year couples make up the largest portion of home buyers, and according to the 2012 NAR Profile of Home Buyers and Sellers, the percentage of these buyers has been increasing.
According to NAR Chief Economist Lawrence Yun, the steady recovery is expected to continue over the next few years, barring further tightening of mortgage credit availability or the much discussed “fiscal cliff.”
Commercial real estate is making a comeback.
Congratulations to Allison and Aaron Smith, the official winners of HouseLogic.com’s “Boost Your Roost” contest!