LAST WEEK'S
NEWS STORY

In real estate, we saw 2011 produce even more unyielding mortgage circumstances. Many may be asking if this will continue on into 2012.

With prices falling in October, those potential homebuyers who bring in lower wages are finding themselves in a position where a home will no longer just be a dream. Housing affordability looks to be the authority for 2012. According to the National Association of Realtors, 2012 will bring in one of most favorable years to date for housing affordability and new home sales are expected to 4 to 5 percent.

"Housing affordability conditions, based on the relationship between median home prices, mortgage interest rates, and median family income, have been at a record high this year," said Lawrence Yun. "Very favorable affordability conditions will dominate next year as well, which will probably be the second best year on record dating back to 1970. Our hope is that credit restrictions will ease and allow more home buyers to take advantage of current opportunities."

Attractive interest rates and affordable housing rates make for an overall positive outlook and a “perfect storm” for homebuyers.