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The last two years have been rough on housing in a chain reaction-kind of way.

First, mortgage guidelines tightened, preventing some homeowners from ditching onerous ARM products.  That sparked a foreclosure boom that led to large losses on Wall Street.  In turn, it sank the U.S. economy.

Today, as compared to 3 years ago, foreclosures are way up, home values are way down, and mortgage rates are as low as they've ever been. It's wonderful news for home buyers -- there's a plentiful supply of homes and financing is cheap. Home affordability is near all-time highs.

But the market is changing.

Massive, sustained government stimulus has helped reverse the economy's slide.  There's still some rough patches, but overall, prospects look bright for 2010.

In housing, we can already see the improvement:

• The supply of new homes is down 40 percent this year
• The number of existing home sales are soaring in Cincinnati and other markets
• Pending home sales are as high as they've been since 2006

Furthermore, home prices are on the rise in the majority of U.S. markets.

The Buyers Market is over, folks. If you bought a home in February 2009, pat yourself on the back -- you timed the market bottom perfectly.  Both home prices and mortgage rates were troughing that month.  Since then, however, it's been a steady erosion and home seller are psyched about it.

For today's home buyers, mortgage rates remain low and home prices have a lot farther to climb.  Homebuying conditions may not be as perfect as they were 9 months, but, as compared to what we'll see next year, they're pretty excellent.  Especially because mortgage rates will cross 6 percent soon.

You can't lock a mortgage rate before you've found a home, but you can get prequalified and fast-tracked for one. Call or for a rate quote and help with your homebuying.  I answer all of my own emails and my rates are very, very good.

Sometimes, you have to look deeper than the headline to get the full story.

As reported by the National Association of REALTORS®, the number of Existing Home Sales fell last month, ending the report's 5-month winning streak.

Some newspapers are calling it a "setback" for housing.  Others are questioning the comeback.

Rest easy, folks.  August happened to be a terrific month for housing -- despite what the press says.

The Existing Home Sales report has 3 parts to it:

• Total sales volume
• Median sales price
• Overall housing supply

Of the three, housing supply is paramount to the long-term strength of the market. The other two are periphery.  It really doesn't matter how many homes are selling, or at what price they're selling.  What's more important is the ratio of home buyers to home sellers.

Not enough buyers and home prices fall.  Too many buyers and home prices rise.  The former led us into the housing doldrums, and now the latter is leading us out.

Between July and August 2009, existing home supply fell by nearly an entire month and, since peaking 9 months ago, supply is down 23%.

Furthermore, the supply of new homes is down, too, off 34 percent on the year.

Housing supply helps us statistically define "Buyers' Market" and "Sellers' Market" and, right now, the Buyers' Market looks like its ending.  If you've encountered a multiple-offer situation, you know exactly what I'm talking about, too.

The combination of low mortgage rates, relatively cheap homes and timely tax credits turned the housing market around this year and there's more gains ahead --  no matter what the papers say.

With home supply keeps falling, a full housing recovery is just around the bend.

(Post licensed by and adapted from Bring the Blog)

The housing industry's had a rough few years. Foreclosures are way up, home values are way down, and -- pardon my french -- but mortgage underwriters are so tight that if you stuck a lump of coal up their fist, in two weeks you'd have a diamond.

For home buyers, though, the "bad news" has come with a tremendous upside.

In housing, the basic law of Supply and Demand bestowed upon buyers an unbelievable amount of negotiation leverage.  Want a lower sales price? Just ask for it. Need your closing costs paid for? Write it into your offer letter. Want a quick closing? Sure, whatever you need.

But the Buyer Heyday may be over.  At least, that's what recent data suggests:

• The supply of new homes is falling at a precipitous pace
• Existing home sales are soaring in Cincinnati and other markets
• Home buyer activity is strong on all fronts -- first-time, move-up, and investor.

Furthermore, home prices are on the rise across a wide band of U.S. markets -- the smoking gun that the Buyers' Market is ending.

For now, mortgage rates remain low and the government is still supporting first-time home buyers with a generous tax credit.   If you're on the fence about buying a home or what to do next, call or .  I'd like to be your loan officer and if by chance I'm not licensed in your particular state, I'll point you to somebody that is.

The housing industry's had a rough few years.  Foreclosures are way up, home values are way down, and -- pardon my french --  but mortgage underwriters are so tight that if you stuck a lump of coal up their fist, in two weeks you'd have a diamond.

The upside of it all is that today's home buyers have an unprecedented amount of negotiation leverage with the sellers.  Want a lower sales price? Just ask for it.  Need your closing costs paid for? Put it in your offer letter.  Want to close in 30 days?  The world is your oyster.

A look at the recent statistics, though, suggests the market is morphing.

• Sales of new homes are rising at the fastest clip in a decade
• The supply of existing homes is falling month-by-month
• Home buyer activity continues to surge

Furthermore, home prices are no longer falling in many U.S. markets.

So, all this to say, if it hasn't happened already, home buyers are about to lose their upper-hand with their sellers.  And when they do, buying a home won't be nearly the "deal" it may feel like today.  Especially once mortgage rates head back up and the $8,000 First-Time Home Buyer Tax Credit meets its December 1 expiration date.

After all that, home sellers will be back in the proverbial driver seat, moving homes for more money and with fewer concessions.  Indeed, housing data suggests that this is happening in some markets already.

They say today's housing market is a Buyer's Market.  Well, it's only a buyer's market if you actually buy.

If you're thinking about buying but are on the fence about what to do next, call or .  I'm happy to work with you and, if I'm not licensed in your particular state, I can definitely point you in the right direction.