Spring: A Season of Renewal for Housing by Jim Woodard on Creators.com

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Spring: A Season of Renewal for Housing

All indicators are pointing to a strong recovery for housing this spring. Sales and prices are up, mortgage rates are low, and consumer confidence levels are high.

National home prices continued to post strong annual gains in February, while quarterly increases stabilized, according to a report from Clear Capital.

Home prices in February were up 6.1 percent year-over-year, the strongest yearly growth since August 2010 when the homebuyer tax credit influenced demand, according to Clear Capital's Home Data Index.

"While February's yearly growth of 6.1 percent is encouraging, let's keep in mind this rate of growth is measured against the market's bottom," said Dr. Alex Villacorta, director of research and analytics at Clear Capital.

Quarter-over-quarter, national home prices grew, as well, rising at a slower, but perhaps more normal, pace.

"Consumer confidence continues to be vital to a broader housing recovery, and national quarterly home prices expanding 1.0 percent in the midst of winter is confirmation the recovery has legs. While 1.0 percent is weaker in comparison to more recent rates of quarterly growth, the positive trend continues to support homebuyer confidence and is on par with the new normal," Villacorta added.

"Overall, the U.S. housing market continued to hold up well in February and with spring just around the corner, we head into the more active home buying season on solid ground," he concluded.

Q: Are mortgage interest rates rising?

A: Yes. Freddie Mac released a report on March 14 showing results of its Primary Mortgage Market Survey. It noted that the average fixed mortgage rates had risen during the week on stronger signs of jobs growth and consumer spending.

The 30-year fixed averaged 3.63 percent, its highest reading since the week of Aug. 23, 2012. The 30-year fixed hit its average all-time record low of 3.31 percent the week of Nov. 21, 2012.

Q: Is the number of short sales transactions rising?

A: Short sales are rising in a growing number of communities, especially when the buyer is an investor.

"Short sales are on the rise as a better alternative to foreclosure in many areas — good news for buyers and investors in markets where short sales are closing more quickly at solid discounts," said Daren Blomquist, vice president at RealtyTrac.

"But buying from the bank may still be a better option in other markets because of increasing REO (bank owned) inventory, deeper discounts and shorter times to close."

Q: Is this a good time to sell a home?

A: A recent survey by Fannie Mae indicates this is a particularly good time to sell. In Fannie Mae's housing survey, consumers maintained their optimism toward home prices, while the share of consumers who said now is a good time to sell reached a record high.

However, consumers in the survey were less optimistic about the economy and their own financial situation. Nearly half, or 48 percent, of respondents in the survey said they expect home prices to rise in the next 12 months.

At the same time, 25 percent also believe now is a good time to sell, the highest level since the survey's June 2010 inception.

Q: Are asking prices of homes rising?

A: Yes, asking home prices have risen 7.0 percent year-over-year since bottoming out in February of last year, the real estate site Trulia revealed in its February Price Monitor Report.

"At the same time, inventory fell 23 percent year-over-year in February, according to data provided from Department of Numbers. Inventory fell year-over-year in all of the 50-plus markets tracked, dropping more than 50 percent in several California metros," it was reported.

Q: Are delinquencies in commercial real estate declining?

A: Yes, delinquency rates continue to decline for commercial and multifamily mortgage loans, according to the Mortgage Bankers Association's Commercial/Multifamily Delinquency Report.

"The delinquency rates for commercial and multifamily mortgages dropped again in the fourth quarter of last year," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "The continued decline is being driven by improving property fundamentals and a strong finance market."

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.