According to Morgan Stanley, we are out of the woods in terms of
the housing crash and are well on our way towards a Nationwide
housing recovery. Despite the fact that decisions on qualified
mortgages and mortgage servicing regulation are forthcoming, the
Investment House still is confident that the housing industry will
come out on top. They continued to show this optimism in their
latest Housing Markets Insight Report; “We expect to see 2012 end
with an increase of 7-9% for the year in aggregate home prices
after considering seasonality effects for the remainder of the
year, with the possibility of a 10-12% increase on the bullish side
and a 4-6% increase as the bear case. We view the bear case outcome
to be relatively less likely.”
Fannie Mae and Freddie Mac have been slowly but surely reducing
their market share while an even tighter mortgage credit industry
is keeping the demand very high. Morgan Stanley goes on to point
out that, “Recent actions by the Federal Reserve, the commitment to
keep interest rates lower for longer as well as the launch of an
open-ended QE3, convince us that this low mortgage rate environment
and the demand response for housing are likely to prevail for an
extended period well into the future.” Indeed it seems as though
this next year is going to be an incredibly favorable one for the
Real Estate market. After all of the progress made throughout the
past year in this field, it is ever so encouraging to realize that
experts are not sensing any sort of setback or second plunge into a
housing crash; instead, the future is looking even brighter.
More Information: Housing Wire