Home > Blogs > California > San Bernardino County > Adelanto > Market Conditions Summary for Adelanto, California
14,762 views

Hector Reyes' Blog

By Hector Reyes | Agent in Adelanto, CA

Market Conditions Summary for Adelanto, California

Market Conditions Summary for Adelanto, California
Home sales are expected to stay on an uptrend through 2012, although the performance will be uneven with mortgage constraints weighing on the market, according to experts.

Lawrence Yun, NAR chief economist, said existing-home sales have been underperforming by historical standards and will rise gradually but unevenly. "If we just hold at the first-quarter sales pace of 5.1 million, sales this year would rise 4 percent, but the remainder of the year looks better," Yun said. "We expect 5.3 million existing-home sales this year, up from 4.9 million in 2010, with additional gains in 2012 to about 5.6 million -- that's a sustainable level given the size of our population."

Yun said that if credit requirements returned to normal, safe standards, home sales would be 15 to 20 percent higher. He added that some parents are buying homes with cash for their children, and offering them loans which provide better returns than bank accounts or CDs.


Mortgage interest rates should rise gradually to 5.5 percent by the end of the year and average 6.0 percent in 2012 -- still relatively affordable by historic standards.


Apartment rents are trending up, and are likely to rise at faster rates as vacancies decline. Following the correction in home prices, it has now become more affordable to buy in most of the country. "Twice as many renters had enough income to buy a home in 2010 in comparison with 2005, so we have a much larger pool of financially qualified renters," Yun said. "Rising rents and excellent housing affordability conditions will encourage potential buyers who've been on the sidelines."



Frank Nothaft, chief economist at Freddie Mac, holds similar views on the outlook. "Economic activity will accelerate this year -- there will be no double dip in the economy," he said. Nothaft is more optimistic on job growth, expecting 2.0 million to 2.5 million jobs created in 2011 with unemployment dropping to 8.4 percent by the end of the year.

Nothaft expects the 30-year fixed-rate mortgage to trend up to 5.25 percent by the end of the year, and for home sales to rise 5 percent. "National home price indices are close to a bottom and prices are likely to bottom sometime this year," he said.

Refinancing activity in 2011 will be only half of what it was last year. "As a result, banks may become more willing to lend to home buyers," Nothaft said.


All information deemed reliable, but not guaranteed

"Building Relationships One Home At A Time"
If you plan to buy or sell a High Desert home or property contact Hector by Email or call me at 877-611-2288. Put our record of customer service, real estate experience and state-of-the-art technology to work for you in the city of Adelanto, Victorville, Hesperia, Apple Valley or the entire Southern California Area.
Follow Me on
      My youtube Channel   Google+  
Hector Reyes, Short Sale Specialist
¡Hablo Español!
Want to know more about me?  Just Google me!
Cellular: 714-231-9061 | Email: hector@findmyhouseonline.com |  
Website: http://findmyhouseonline.com |DRE Licensee: 01832572 | 
All SoCal Homes | Victorville, CA 92392

Comments

By Orimark,  Thu Oct 27 2011, 03:06
I was very pleased to find this site. I definitely enjoyed reading every little bit of it and I have it bookmarked to check out new stuff posted regularly.

Great Jobs!

POST
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer