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I do think that we can expect a gradual economic recovery to move the housing market a few steps back toward normal in 2012….
Before getting into the predictions, I must be upfront with what’s being assumed. After 14 months of job gains, we all should expect the economy to continue its slow but determined recovery. I don’t do my own macroeconomic forecasts, but every single one of the fifty-ish economic forecasters surveyed by the Wall Street Journal expects the economy to grow throughout 2012, and that makes sense to me.

Here’s what to expect in 2012 and what it means for YOU:

Delinquencies will go down, but foreclosures will go up.

Fewer borrowers will fall behind on their payments next year, thanks to the strengthening economy and refinancing. The share of delinquent borrowers is already down more than a quarter from the peak a couple of years ago. But many borrowers who fell behind on their payments during the housing crisis are still in limbo: last year’s robo-signing controversy threw a wrench in the gears of the foreclosure process. That means that some delinquent loans haven’t yet gone through the foreclosure process. Once a settlement is reached with banks over robo-signing, we’ll see a new wave of foreclosures and foreclosure sales.

What it means for YOU: Despite the decline in delinquencies, the wave of foreclosures will hurt. New foreclosures will depress prices for several reasons – foreclosed homes are often sold at a discount and used as comps for non-distressed homes; vacant homes bring down the value of their neighbors; and high foreclosures are the worst thing for consumer confidence in the housing market. That will hurt seller motivation even more than buyer motivation since lower prices will mean deals for some buyers. Sellers must have competitive pricing strategies to catch buyers attention in 2012 and understand the depressed prices to come if they live in a high-foreclosure area.

Rents will rise – which is a bitter-sweet

With fewer people buying homes and more people losing their homes to foreclosures, rental demand is increasing. High rents will hold back economic growth if businesses can’t pay workers enough to have a roof over their heads. Squeezed city-dwellers won’t get relief until late 2012: that’s when a wave of new multi-unit construction projects that started late this year will be completed and available for rent. To tackle growth-killing high living costs in the priciest cities head on, local governments need to get rid of height restrictions and arduous permitting processes, which hold back urban construction and push development to the suburbs.

What it means for YOU: Rising rents and falling prices make buying a great deal – but only for prospective buyers who can afford the down payment and qualify for a mortgage. This also creates an amazing investment opportunity for positive cash flowing rentals. You will see plenty of inventory and low prices in 2012.

Mortgage rates will inch up – which will probably be a good thing.

A stronger economy will push Treasury bonds and mortgage rates up because inflation becomes more likely and investors demand higher rates to hold bonds. But lots of factors can push rates up or down. For the housing market, which direction rates go is less important than why. Gradual economic recovery is good news for the housing market even if it means higher mortgage rates – because higher mortgage rates should go hand-in-hand with greater housing demand.

What it means for YOU: Higher mortgage rates mean higher monthly payments for buyers, but a stronger economy means that buyers will be better able to afford those rates. Higher rates probably won’t hold back buyers much: rates are only one of many factors that enter into the cost of buying a home, and for many buyers the down payment is a much bigger barrier to homeownership than the monthly payments. Also, buyers need to be reminded that homeownership has other costs on top of the monthly mortgage payment, like insurance and maintenance, which can add half again as much to the cost of owning a home. It’s important for buyers to understand and prepare for the overall costs and benefits of homeownership, not just the monthly mortgage payment.

Government will sit on its hands.

In election years, politicians don’t take risks: they’re more talk and less action, so don’t expect any bold housing policy reforms next year. What’s more, with the housing market now recovering, we’re not in enough of a crisis to force political opponents together. Instead, in 2012 we’ll see the effects of modest housing proposals from this year: easier refinancing under the expanded HARP program, and more government-owned homes coming to market for sale or rent. But the bitter debate in Washington over the budget deficit and debt will continue.

What it means for YOU: No news may be good news: I don’t expect major changes in policy that will upend the housing market. But government is slowly scaling back support for housing, both to encourage the private sector to come back in and also to help deal with the federal budget deficit. Late this year we saw increased fees on Fannie and Freddie to help fund the payroll tax cut, lower conforming loan limits, and proposals to scale back mortgage interest deduction. It’s important for buyers to understand what these changes means for their mortgage costs, both before and after taxes.

Smart cities are hot.

In 2012, the local housing markets that will enjoy rising prices, new construction or both, are those that start the year with stronger job growth and fewer empty homes holding back the market. My top five cities to watch are Austin TX, Houston TX, San Jose CA, the Boston suburbs, and Rochester NY. Most of these cities have strong high-tech industries or high-skill workforces. During the housing boom, the go-go cities tended to be lower-skill, lower-education metros. But in 2012, smart is hot.

What it means to YOU: All markets are local. Even though the housing bubble and bust affected nearly all markets, each local market is recovering – or not – at its own pace. National indicators are helpful in understanding where the market is going overall, but buyers and sellers need to understand what’s happening in your local market – which could be very different from the national picture.

Thanks to Jed Kolko contribution to this article, to see full article from Jed please visit, http://pro.truliablog.com/tools-trends/trulia’s-real-estate-agent-crystal-ball-for-2012/
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Thank You

Christopher R. Rodriguez
President, CEO
Maximum Mortgage & Real Estate Inc.
DRE Lic# 01756431 NMLS 267339
707 Mission Ave
Oceanside Ca 92054
Cell (760) 213-6214

Yes, there is! Join me this Christmas 2011 —For the Birth of a New Tradition
It’s time to think outside the box, people. Who says a gift needs to fit in a shirt box, wrapped in Chinese produced wrapping paper?
Everyone — yes, EVERYONE gets their hair cut. How about gift certificates
from your local American hair +/or nail salon or barber?
Gym membership? It’s appropriate for all ages who are thinking about some
health improvement. How about a massage? I would love that!
Who wouldn’t appreciate getting their car detailed? Small, American owned
detail businesses and car washes would love to sell you a gift certificate or a
book of gift certificates.
What teenager wouldn’t like a few certificates to the local pizzeria?
Does someone on your list want to learn how to play golf…tennis…horseback riding…sailing?? Think lessons.
Are you one of those extravagant givers who think nothing of plunking down
the Benjamin’s on a Chinese made flat-screen? Perhaps that grateful gift
receiver would like his driveway sealed, or lawn mowed for the summer, or
driveway plowed all winter, or rounds at the local golf course, or gifts from the gardening center.
There are a bazillion Local owner-run restaurants — all offering gift
certificates. And, if your intended isn’t the fancy eatery sort, what about
a half dozen breakfasts at the local breakfast joint. Remember folks, this
isn’t about big National chains — this is about supporting your home town
Americans with their financial lives on the line to keep their doors open. Its about supporting your community and creating jobs!
How many people couldn’t use an oil change for their car, truck or
motorcycle, done at a shop run by the American working guy?
Thinking about a heartfelt gift for mom? Mom would LOVE the services of a
local cleaning lady for a day. How about a few hours from a local handyman?
My computer could use a tune-up, and I KNOW I can find some young guy who is
struggling to get his repair business up and running.
OK, you were looking for something more personal. Local crafts people spin
their own wool and knit them into scarves. They make jewelry and pottery
and beautiful wooden boxes. Go to the Arts & Crafts & Street Fairs & Farmers Markets.
Plan your holiday outings at local, owner operated restaurants and leave
your server a nice tip. And, how about going out to see a play or ballet at
your hometown theatre?
Musicians need love too, so find a venue showcasing local bands.
Honestly, people, do you REALLY need to buy another ten thousand Chinese
lights for the house? When you buy a five dollar string of lights, about
fifty cents stays in the community. If you have those kinds of bucks to
burn, leave the mailman, trash guy or babysitter a nice BIG tip.
Donate to your church, feed the homeless, or start any other tradition of giving during Christmas, but let’s keep it going throughout the entire year for we are blessed.
You see, Christmas gift giving is no longer about draining American pockets so that
China can build another glittering city. Christmas is about being with your loved ones and giving and sharing memories. To others it’s a special time of year to give back and create warmth for those who do not have. In my house, Christmas is to celebrate the birth and life of Jesus Christ, and we share stories and spend time and sing carols. No matter what your family traditions and reasons for Christmas are, let’s start a new one together that cares about the US, to encourage American small businesses to keep plugging away and working with their hands to support their families. And, when we care about other Americans, we care about our communities, and the benefits come back to us in ways we couldn’t imagine.
Let’s make THIS the new American Christmas tradition.
Please forward this to everyone on your mailing list — post it to discussion
groups — throw up a post on Craigslist in the Rants and Raves section in
your city — send it to the editor of your local paper and radio stations,
and TV news departments.
Have a Merry Christmas and make this tradition last all year long, God bless..
This information is brought to you by:
Christopher R. Rodriguez
President, CEO
Maximum Mortgage & Real Estate Inc.
DRE Lic# 01756431
707 Mission Ave
Oceanside Ca 92054
Cell(760) 213-6214

The average pending home is $17,243 has 3 bedrooms and 3 baths, and is 1,735 sqft. at about $246.79 per square foot.

Over the last 6 months the average sale price was $497,667 and has 4 bedrooms and 3 baths, and is 2,157 sqft. at about $229.02 per square foot. The average days on the market are approximately 96 days.

The average pending home is $348,779 has 3 bedrooms and 3 baths, and is 1,827 sqft. at about $196.82 per square foot.

Over the last 6 months the average sale price was $348,095 and has 3 bedrooms and 3 baths, and is 1,804 sqft. at about $194.68 per square foot. The average days on the market are approximately 71 days.

According to statistics on Foreclosure Radar there are 108 homes in pre-foreclosure scheduled to go to Auction in the next 90 days in Rancho Del Oro.

The average pending home is $348,779, has 3 bedrooms and 3 baths, and is 1,827 sqft. at about $196.82 per square foot.

Over the last 6 months the average sale price was $348,025 and has 4 bedrooms and 3 baths, and is 1,804 sqft. at about $194.81 per square foot. The average days on the market are approximately 70 days.

According to statistics on Foreclosure Radar there are 109 homes in pre-foreclosure scheduled to go to Auction in the next 90 days in Rancho Del Oro.

The average pending home is $441,446 has 4 bedrooms and 3 baths, and is 1,798 sqft. at about $244.39 per square foot.

Over the last 6 months the average sale price was $487,625 and has 4 bedrooms and 3 baths, and is 2,266 sqft. at about $228.66 per square foot. The average days on the market are approximately 89 days.

The average pending home is $351,198, has 3 bedrooms and 3 baths, and is 1,852 sqft. at about $195.42 per square foot.

Over the last 6 months the average sale price was $347,198 and has 3 bedrooms and 3 baths, and is 1,806 sqft. at about $194.08 per square foot. The average days on the market are approximately 70 days.

According to statistics on Foreclosure Radar there are 113 homes in pre-foreclosure scheduled to go to Auction in the next 90 days in Rancho Del Oro.

The average pending home is $528,955 has 4 bedrooms and 3 baths, and is 2,293 sqft. at about $233.23 per square foot.

Over the last 6 months the average sale price was $478,079 and has 4 bedrooms and 3 baths, and is 2,211 sqft. at about $230.10 per square foot. The average days on the market are approximately 92 days.

The average pending home is $491,488 has 4 bedrooms and 3 baths, and is 2,155 sqft. at about $228.35 per square foot.

Over the last 6 months the average sale price was $465,059 and has 4 bedrooms and 3 baths, and is 2,173 sqft. at about $228.58 per square foot. The average days on the market are approximately 82 days.

According to statistics on Foreclosure Radar there are 22 homes in pre-foreclosure scheduled to go to Auction in the next 90 days in Fire Mountain.

Local Community Highlight

Oceanside Farmer’s Market

Location: Pier View Way Oceanside, CA 92054United States

Hours: Apr-Dec 5pm-9pm

Cost: Free to browse.

Ages: All Ages

Oceanside is ideally located to take advantage of the fresh produce grown locally. More than 30 farmers are represented at this market, many offering organically grown fruits and vegetables. Beautiful cut flowers from the many local flower growers are also presented here, as well as local fish, herbs, honey, eggs, nuts, olives, and yummy baked goods. Oceanside Farmers’ Market is also known as the Sunset Market.