When Will Housing Recover? How About in 2011

Investment Directions submits:

Ask someone when housing will return to normal and you will likely hear forecasts ranging from a few years to never. Why? The usual litany of conditions - especially weak employment. And now mortgage rates are over 5%!

So, what about this proposition: That 2011?s housing market could be better than expected - even robust? Here?s how it could happen?

The housing market?s drivers are looking good

1. Affordability - A combination of house price and mortgage interest rate (both are currently attractive ? more about interest rates below)

2. Mortgage access ? Capacity and willingness of banks to lend (plenty of money; willingness is improving)

3. Homebuyer capacity to buy ? Employment and salaries/wages (more about this below)

4. Homebuyer willingness to buy ? Confidence and attitude (consumer surveys have turned up; retail sales show a willingness to spend; recession?s slowdown in family formation means pent-up demand)

Start with interest rates

Yes, mortgage

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