KCM Blog: There is no shortage of opinions as to where home prices are headed in 2012. From Clear Capital’s expectation that prices will show a ‘slight uptick’ this year to Fitch’s projection that prices ‘will fall another 13 percent’, there seems to be no consensus as to where real estate values are headed. How can there be such a disparity of opinion among industry experts? Prices are determined by the relationship between supply and demand and there are many unanswered questions regarding both of these components.
Questions about Demand
- Will this be the year that the 5.9 million adults between the ages of 25 and 34 that are still living with their parents decide to purchase a home of their own?
- With mortgage payments lower than rent payments in the majority of the country, will first time buyers finally decide it makes more financial sense to buy rather than rent?
- Will the baby boomers take advantage of the great deals available and start purchasing vacation and retirement homes?
- Will investors continue to purchase large quantities of distressed properties?
- Will hedge funds negotiate a deal with the banks for bulk purchases of foreclosures?
Questions about Supply . . .


KCM Blog: One of the rarely touted advantages of people taking FHA mortgages today is the fact that they are assumable. What that means is, when the FHA homebuyer of today is looking to sell his home, a qualified purchaser can “take over” their loan.
Palm Beach Post: WEST PALM BEACH — Palm Beach County property owners have until March 1 to apply for a 2011 homestead exemption.
Palm Beach Post: A third year of surging home sales in Palm Beach County has buoyed hopes of a market turnaround as 2011 ended with a 24 percent hike in purchases.