Chris Thornberg, a former UCLA economist and a founding principal of Beacon Economics, was very skeptical of the housing market in 2007. However, in an article by the Orange County Register on January 13th, he is quoted as saying that now is:
“…a great time to buy a home…If you’ve been thinking about buying a condo in Vegas or buying a condo in Miami, buy now.”
Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.
Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.
Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”
In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.
We started off 2012 with two of the biggest bears, John R. Talbott and Chris Thornberg on housing converting to bulls and telling us to BUY NOW! It might just be time to buy!!
Kathryn Lovell, Broker/REALTOR
RE/MAX Prime Properties
Office 865-428-1828 ext 15