Recovery Underway, but Supply and Demand Out of Balance

Recovery Underway, but Supply and Demand Out of Balance
You could say that Phoenix is a seller's market this spring, although there's very little real estate to buy. Michael Orr of W. P. Carey School of Business, reports that with interest rates low, the economy beginning to stir and prices very affordable compared to salaries and rental rates, a swift recovery could be in the cards. But supply is so tight that "buying a house is often quite a struggle," he said. Supply is down 42%. In fact, the inventory of homes under $250,000 is only a 25 day supply.
Read article - WP Carey


Principal forgiveness on mortgages gains appeal
Fannie Mae and Freddie Mac could save $1.7 billion if they forgave principal on some distressed mortgages, new analysis shows. The Federal Housing Finance Agency - which regulates the mortgage giants - may decide in the next few weeks about whether to use principal forgiveness as a foreclosure prevention tactic. The FHFA have come under pressure to allow Freddie and Fannie, which own or guarantee 60% of all home loans, to do principal forgiveness.
Read article - USA Today