It is nice to see the beginning of the turnaround. The best thing about it is that so many more people will be able to afford homes. The major question will be can they qualify for financing with the much more stringent mortgage terms.

Don't forget the FHA loan only requires 3.5% down so, although not 100% financing like we were used to, it still makes getting into a home very feasible for most.

The national housing affordability index is now 37 percent better than it was just a year ago. The typical family, with a monthly household income at the national median, can now devote just 16 percent of gross income to paying principal and interest on a median priced home financed with a 20 percent down payment.

That sort of affordability hasn't been seen for decades!

I'd say if you are currently renting, it is time to start looking for a place to buy. It appears that the market will rise for quite a while and most economists say values in most areas will not see these lows again.

Interest rates in the 5's - that should be generating lots of interest.

Give me a call if you have any questions. Or visit my website at www.alanschmitt.com