MOORELOGICS –Real Estate Forecast- 2012 & after

• Short Sales will become shorter by the middle of 2012. ( The system will streamline because of experience).
• REO Properties (Bank Owned Assets)-Banks will finally get it and will liquidate their “bad assets”  because of poor income revenue, to protect stock value.
• Values will stabilize after the 2ndquarter, especially for homes priced under   $ 275,000. There will still be a decline in property values for homes over

$ 400,000. with a limited number of ready, willing and able buyers out there.

• Interest rates will eventually increase after the election, however, the rise will be minimal. Interest rates will remain very low until economic recovery is on track and substantiated.
• “Do it again” refinancing will start to go away. With the 50 years historic low rates we have had, refinancing will have been accomplished and with rates eventually increasing, the refinancing cycle will totally ebb. Most all mortgage activity will be with home buyers.
• VA mortgages will gain momentum in the near future as military personnel return home. This will be the next big marketing campaign for lenders in 2012.
• FHA assumptions will become the priority sales feature in real estate marketing within the next five years. FHA Sellers will attract buyers by offering 4% interest rates in an 8% interest rate market via FHA assumptions.
• Loan approval (underwriting) will remain rigid. As long as unemployment remains high, foreclosures will continue. As long as foreclosures on existing mortgages continue, underwriting philosophy will remain focused on risk mitigation.
• The largest and fastest market for home sales will continue to be “First Time Home Buyers” and VA purchasers. Focus your marketing dollars ($$) in these areas to gain results the fastest.

Low prices, good rental market and sellers willing to "deal".

There are even apartment complex's that "pencil". ( In other words,

they pay the mortgage and expenses). WOW. We haven't had that kind of

a market in 15 years.