Charles Rutenberg Realty Broker/Owner Joe Moshé Says Housing Market Can Recover in 2012

Dec. 27, 2011 - PRLog -- Amid reports of modest job growth, lower interest rates and optimism that the economy will take a turn for the better, Joe Moshé, Broker/Owner, Charles Rutenberg Realty, says there a possibility that the housing market may be making a comeback in 2012.

The job market has improved, as the national unemployment rate fell from 9% in October to 8.6% last month. In addition, a recent report from the payroll service firm ADP showed that the private sector added 206,000 non-farm payroll jobs last month, almost double the revised October figure of 110,000 jobs.

Although the number of layoffs this year will outpace last year’s numbers by 13%, the amount of pink slips given out month by month has declined. According to the outplacement consulting firm Challenger, Gray & Christmas, there were 42,474 planned layoffs in November, a 0.7% decrease from the previous month. Meanwhile, the U.S. Labor Department reported that the number of people filing for unemployment claims last week — 364,000 — was at the lowest level since April 2008. It was the third consecutive week of declines.

“With the job market as an economic indicator on how the Real Estate market will perform, there is a glimmer of hope that may signal the long-awaited improvement in the housing market,” Mr. Moshé said. “If the labor market continues to improve, the hope is that more Americans may be inclined to make the switch from renting to owning homes.”

Many home builders saw these job figures as an opportunity to get back to work. According to this month’s Improving Markets Index, created by the National Association of Home Builders and First American, many U.S. cities are showing significant improvement in housing permits, employment and home prices for at least six consecutive months. This month, the National Association of Home Builders/Wells Fargo builder sentiment index rose two points to 21 — the highest level since May 2010.

Meanwhile, new home sales in November rose 1.6% at a seasonally adjusted rate of 315,000, compared to 310,000 in October, according to the U.S. Census Bureau and the Department of Housing and Urban Development. Both agencies also reported this figure is 9.8% above November 2010, when it was an estimated 287,000. Mr. Moshé says this could be an indication of what is to come.

Mortgage rates have continued to drop in the last couple of months. Results from Freddie Mac’s monthly survey showed that the 30-year fixed-rate mortgage averaged 3.99% in November, down from 4.07% in October. The 15-year FRM fell from 3.35% in October to 3.51% last month. For the five-year and one-year adjustable-rate mortgages, the November rate for the five-year ARM fell from 3.03% in October to 2.97% last month and the one-year ARM in November was 2.90%, down from 2.93% the month prior.

“The number of permits being issued and new homes being sold show that there is hope for the housing market in the future,” Mr. Moshé said. “With more people being employed, they will now have that disposable income and save up for these big-ticket purchases. Interest rates have also gone down, which will only encourage more people who were standing on the sidelines to finally purchase the house they have always wanted.”

Charles Rutenberg Realty is one of the nation’s fastest-growing Agencies with more than 1,300 Agents associated in Long Island, Queens, Westchester, and Manhattan. For more information, call (516) 575-7500, or visit www.crrli.com.

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About Charles Rutenberg Realty

Founded in 2006, Charles Rutenberg Realty of New York is one of the nation’s fastest-growing, most progressive Real Estate Agencies with over 1,300 Agents on Long Island, Queens, Westchester and Manhattan. Charles Rutenberg Realty specializes in residential properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. Among the 1,900 independent Real Estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty has the highest market share for available inventory, listings taken for the first six months of the year and listings under contract. Its Agents are trained in the latest creative marketing programs and can fulfill all their clients’ financial and personal needs when buying or selling a home. Charles Rutenberg Realty is headquartered in Plainview, New York, with offices in New York City, Florida and Illinois. For more information, call (516) 575-7500 or visit www.crrli.com.