A housing boom could be coming, some experts say - Oct. 12, 2012

NEW YORK (CNNMoney) -- The long-battered housing market is finally starting to get back on its feet. But some experts believe it could soon become another housing boom.

Signs of recovery have been evident in the recent pick ups in home prices, home sales and construction. Foreclosures are also down and the Federal Reserve has acted to push mortgage rates near record lows.

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But while many economists believe this emerging housing recovery will produce only slow and modest improvement in home prices, construction and jobs, others believe the rebound will be much stronger.

Barclays Capital put out a report recently forecasting that home prices, which fell by more than a third after the housing bubble burst in 2007, could be back to peak levels as soon as 2015.

"In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing starts," said Stephen Kim, an analyst with Barclays, in a note to clients.

In addition to what Kim sees as a big rebound in building, he's bullish on home prices, expecting rises of 5% to 7.5% a year.

Related: Where housing is most (and least) affordable

Construction is expected to be even stronger, with numerous experts forecasting home construction to grow by at least 20% a year for each of the next two years. Some believe building could be back near the pre-bubble average of about 1.5 million new homes a year by 2016, about double the 750,000 homes expected this year.

"We think the recovery is for real this time around," said Rick Palacios, senior analyst with John Burns Real Estate Consulting. "If you look across the U.S. economy right now, there are only a handful of industries looking at 20-30% growth over the next 4-5 years, and housing is one of those."

Home builder stocks are up 162% in the last 12 months, led by a 250% jump at PulteGroup (PHM). Other leading builders including DR Horton (DHI), Toll Brothers (TOL), KB Home (KBH) and Lennar (LEN) have all seen their stocks more than double over that time. New orders at publicly-traded builders are up 30% since January, according to Kim.

Related: Is buying rental property now a sure bet?

Palacios said stocks in other sectors, from manufacturers of drywall to flooring to kitchen and bath fixtures, have all more than doubled as well this year.

The housing rebound can have a ripple effect that could help get the entire economy growing at a much stronger pace, which will add to more demand for housing.

"That turn in the [housing] market is occurring now and it should become a boom by 2015. It will be powerful enough ... to lift the entire U.S. economy," said Roger Altman, chairman of Evercore Partners and former deputy Treasury secretary, in a column for the Financial Times.

Altman said he expects housing will add 4 million jobs to the economy over the next five years, as pent-up demand for home purchases drives building and and home prices higher.

First Published: October 12, 2012: 1:01 PM ET

via money.cnn.com

This is great news we have all been waiting for

Survey Says… Good Time to Buy or Sell Your Home

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Fannie Mae just released the results of September’s National Housing Survey which delivers good news if you are trying to sell your home or buy a new home. Americans at large are feeling positive about the housing market and economy in general.

“Consumers are showing increasing faith…” said Doug Duncan, senior vice president and chief economist of Fannie Mae. “Home price change expectations have remained positive for 11 straight months, and the share expecting home price declines has stabilized at a survey low of only 11 percent. Furthermore, the Federal Reserve’s latest round of quantitative easing has caused a large drop in mortgage rate expectations. Friday’s September jobs report, including the strong upward revisions for prior months, a sizable increase in earnings, and a sharp decline in the unemployment rate, should provide further impetus for improving consumer confidence in the housing market.”

With future expected moderate increases in home prices and current low interest rates, nineteen percent of survey respondents agree that “now is a good time to sell” the highest rate since June of 2010 and sixty-nine percent said they would buy if they were going to move. Seventy-two percent of survey participants stated that “now is a good time to buy.”

On a grander economic scale, forty-four percent of survey respondents also felt that their personal finances were seeing improvement and seventeen percent reported a significant increase in their household income in the last year. Despite the improvement, however, thirty-four percent of the 1,000 survey participants still reported significant increases in household expenses.

To find out more details and see graphs of the survey results, please click here.  If you would like to hear what these statistics mean for you and your home, please give me a call!

Creating Art Displays in Your Home

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If you’ve ever remodeled or purchased a new house, you know that blank walls in your home can seem daunting. While furniture and other items can add warmth to your home causing the wide wall expanse to diminish, there is definitely a need to add some excitement to your walls to make the house seem like your home. As you decide the types and medium of art you introduce into your home, consider your home’s location and style, along with the following tips.

Artwork Should Complement Your General Theme - Consider your furniture before hanging your prints and paintings. While you want variety in your displays, you also need some cohesiveness. If your frames or artwork “fight” with the furniture in the room, guests may feel unsettled. Period-style furniture (ie. modern, Victorian) is best paired with matching artwork.

Use a Variety of Sizes - You can add visual perspective through the use of small and large art. A framed collection of art brought together through a common message such as frame color or subject can also be quite interesting visually.

Do Not Overdo - In most cases, a few well chosen pieces will have more impact to viewers than many.

Consider Texture and Form - Variety plays a role here, as well. Too much of the same type of art can detract from your home. Make sure you mix it up by including works of art of differing textures and mediums.

Love Every Piece - Despite the advice given above, the key element in displaying any art in your home is that YOU love it. If your chosen pieces reflect your values, attitude, and dreams, then your viewers will recognize the connection and enjoy your displays.