A variety of other market indicators are also contributing to this conclusion. For instance, lenders are now offering loans to borrowers that are 3.5 times their earnings, which is an increase from the low of 3.2 times borrower earnings during the crisis. Additionally, many banks are becoming more flexible with their LTVs or Loan to Value ratios, up to 82% from the low of 74% reached in 2010.
While the loosening bank standards are a huge benefit for anyone searching for a home, other factors may also contribute to an improved housing market. Many housing prices have moved into more acceptable (i.e. affordable) ranges compared to home prices during the height of the housing bubble. Homes simply cost less now, which is a great incentive for anyone looking to buy. Furthermore, a lot of homeowners have begun to offer creative financing alternatives like land contracts and rent-to-own options to reach buyers who can't qualify for conventional mortgages.
As an East Lansing, MI realtor, I can offer first hand experience of the housing market and from where I'm standing, the outlook is good. People who have been renting during the crisis are beginning to purchase homes because the prices are often less than the cost of rent. The growing rental population has also motivated a lot of real estate investors to purchase rental properties, especially in East Lansing where Michigan State University always provides a thriving rental community. If you would like more information about buying or selling a home in East Lansing or the Greater Lansing area, please contact me at MyRealtorRob.
If you think hiring a professional is expensive, wait till you hire an amateur - Red Adair
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