• Main Page
• Our Story
• Our Purpose
• Our Services
• FAQ’s

Why the Housing Market Will Recover in the Near Future

Today, we at Loan Mitigation Advocates are going to give you hope. Well, at least after you read this blog you may see a potential glimmer. This is the second part in a series reporting on opposing views of the direction of the housing market.  Our previous blog identified various reasons ‘Why the Housing Market Will Not Recover in the Near Future.’ This piece will focus on the support for a turn around in the market.

Here are five reasons why the housing market will show new life in the near future:

• Impact of Loan Mitigation and in particular, Loan Modifications
• Government Intervention
• Home Prices are Falling at a Slower Rate
• Pending Home Sales Recently Increased
• Website Traffic Has Increased

Impact of Loan Mitigation and in particular, Loan Modifications
This is becoming a viable option for many people who are faced with a hardship and consequently the possibility of losing their home.  One component of loan mitigation involves the step by step process of where a homeowner or a third party loan mitigator attempts to negotiate a modification to the existing loan. This is a very time consuming process and can take months to complete.  However, more and more banks are realizing the importance and cost effectiveness of loan mitigation. By keeping people in their homes, this will minimize the amount of short sales and foreclosures set to come on to the market and, at the same time, will limit the amount of write-offs that the bank will have to take. At Loan Mitigation Advocates, we have helped numerous individuals modify their loans and stay in their homes.  We will spend time with you assessing your situation and help you determine if you are a good candidate for a loan modification. If you need to discuss your current situation, feel free to call our 800 number or email us directly.

Government Intervention
Potentially the biggest X factor in the group.  It is truly an unknown in terms of how much and what type of government intervention will occur. We have already seen the government’s willingness to step in and save faltering banks. To what extent the government will step in and continue to aid homeowners directly is yet to be seen.  However, we do know that if past history is any indication, they may be willing to help when it is needed.

Home Prices are Falling at a Slower Rate
There are numerous areas across many regions of the country where home prices are now falling at a slower rate. This is after nearly two years of decline. The Standard and Poor’s S&P/Case-Shiller Home Price Indices has shown a slowdown in the fall-off in home prices in recent months. Other data also suggests signs of “bottom-like” symptoms for house prices.

Karl Case, co-developer of the S&P/Case-Shiller Home Price Indices and whose research has focused on real estate markets and prices for over 20 years, said certain regions of the country now look similar to when they bottomed in past down cycles.

Pending Home Sales Recently Increased
Information gathered directly from the National Association of Realtors identified that during the summer months and into the early fall, U.S. home sales contracts unexpectedly rose across the country to their highest level since October 2007. This is important for two reasons.  First, it usually indicates that inventory numbers will begin to stabilize or decrease.  The second reason is that this could indicate that investors and other buyers believe that home prices have come down enough for them to start jumping back into the real estate market.

Website Traffic Has Increased
It has been reported that several real estate websites have seen an extraordinary amount of activity over the past several months.  This is compared to the significant drop in traffic over the last year. Birdview Technologies President, Bedros Bedrosian stated, “The sustained upswing we’ve seen so far this year at the very least signals that buyer interest has returned to the marketplace at levels seen during the boom years.  Buyer demand is not necessarily indicative of increased transactions, but it’s certainly a necessary ingredient in finding a bottom to the present downturn.”

Comments