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 July 7, 2011 Vol. 4, Issue 7

What are real estate professionals saying to homebuyers and sellers about current marketconditions? The successful brokers and sales associates are talking about the strengths that exist in

the market. Below are positive angles that appeared recently in the media and underscore why it isa good time to buy real estate.

New York Times/CBS Poll: Homeownership is an Important Part of the American Dream

Nearly nine in 10 Americans say homeownership is an important part of the American dream,according to the latest New York Times/CBS News poll. And they are keen on making sure it stays

that way, for themselves and everyone else.

A persistent belief endures that the market will eventually improve and housing will regain its

traditional importance. Donna Boyd, a transportation supervisor in Cuyahoga Falls, Ohio,

acknowledged ―it might take a long time‖ for property values to go back up. ―But I don’t think I’mthrowing my money away,‖ she said in a follow-up interview. ―I rented for years when I wasyounger, and I just don’t like the idea of putting money in someone else’s pocket for something I

will never own.‖  

-- “ Americans See Risks And Rewards In Homeownership ,” by David Streitfeld and Megan Thee-Brenan,New York Times (subscription required), June 30, 2011.

NAR Survey: 70% of Renters say Homeownership is a Priority, and

70% of Americans Say Buying a Home is a Good Decision

Most Americans still believe that owning a home is a solid financial decision, and a majority of 

renters aspire to home ownership as a long-term goal. According to the 2011 National Housing

Pulse Survey released by the National Association of Realtors, 72% of renters surveyed said

owning a home is a top priority for their future, up from 63% in 2010.

Seven in 10 Americans also agreed that buying a home is a good financial decision while almost

two-thirds said now is a good time to purchase a home. The annual survey, which measures howaffordable housing issues affect consumers, also found:

More than three quarters of renters (77%) said they would be less likely to buy a home if theywere required to put down a 20 percent down payment on the home

A strong majority (71%) believe a 20 percent down payment requirement could have anegative impact on the housing market Respondents were adamantly against eliminating the mortgage interest deduction (MID). Two-thirds of Americans oppose eliminating the tax benefit, while 73% believe eliminating the MID

will have a negative impact on the housing market as well as the overall economy

-- “Seven Out of 10 Renters Say Owning a Home Is a Top Priority  ,” Marketwire, July 6, 2011.

NAR: Pending Sales of U.S. Existing Homes Rise by 8.2%

The number of contracts to buy previously owned U.S. homes rose almost three times as much as

forecast as falling prices made properties more affordable. The surprising 8.2% increase in theindex of pending home resales from April followed a revised 11% drop the prior month, theNational Association of Realtors said. Economists forecast a 3% gain, according to the median

estimate in a Bloomberg News survey.

-- “Pending Sales of U.S. Existing Homes Rise by 8.2%, Almost Triple Forecasts ,” by  Alex Kowalski,Bloomberg, June 29, 2011.

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Regional Update: News from Markets around the Nation

Manhattan, N.Y.

After a slight drop in prices at the beginning of the year, the Manhattan real estate market hasstabilized in the last three months, with prices rising slightly and sales volume increasing with an

expected spring surge in home buying. Sales reports from the city’s largest brokerage firms

showed that the increase in the average sale price was largely attributable to more robust sales of larger and more expensive apartments, while studio and one-bedroom sales lagged slightly.

-- “Rise In High-End Sales Buoys Manhattan Housing Market  ,” by Vivian S. Toy, New York Times (subscriptionrequired), July 1, 2011.

Silicon Valley (California)The resurgence in the Silicon Valley tech industry is leading to a new boom in the area's real estate

market, with rising rents and a scarce supply of homes to buy. Realtors and real estate experts are

reporting a dearth of properties for sale, which often is a precursor to rising home values. Realestate statistics firm Altos Research of Mountain View found that, this spring, an average of about76 homes were on the market in any given week in Palo Alto — the epicenter of the boom — 

compared with 110 a year earlier and about one-tenth the number in a similarly sized market nearDallas or Atlanta. At the heart of the boom is the technology industry, led by heavyweights such asApple Inc. and Google Inc., which has fueled jobs and created wealth in the area.

-- “Tech Rebound Gives Housing A Lift  ,” by Yukari Iwatani Kane, Wall Street Journal (subscription required), June 30, 2011.