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Fiserv: Home Prices to Rise 4% for Next 5 Years

By Forrest Jones

Housing prices should grow an average 3.9 percent for the next five years, according to the Fiserv financial services and technology firm. Prices will likely begin to climb this summer, quickly in some parts of the country, with investors driving momentum. As of now, home prices are down 35 percent from their peak in 2006, Fiserv reports, adding today’s prices don’t adequately reflect the health of the sector.

“The year-over-year decline in average home prices does not tell the full story of stabilization and recovery. Nearly all non-price metrics — existing home sales, rising home order volumes, increased spending on home improvement, a jump in multi-family construction — indicate that the housing sector hit bottom last year and has started along a path of slow recovery,” David Stiff, chief economist at Fiserv, says in a statement.

“The recovery this spring and summer will be driven by investors, who buy primarily in lower-cost markets. In the current environment, focusing on mortgage applications is not a true indicator of sales activity, as investors are less likely to finance home purchases via mortgages,” Stiff says.

“We expect that home prices, which generally lag changes in sales activity by nine to 12 months, will stabilize by the end of this summer and then rise at an annualized rate of 3.9 percent over the next five years.”

Separately, market researcher CoreLogic reports that U.S. home prices rose 0.6 percent in March from February, the first month-over-month increase since July of last year, USA Today reports.

While housing remains in the doldrums today, other signs point to recovery. An increasing number of hedge funds, asset managers and investment banks are rolling out vehicles that will invest in the mortgage sector, namely in securities backed by home loans or even in bargain-priced mortgages themselves. Even if housing delays its recovery, mortgage-backed securities provide higher yields relative to Treasurys thanks to low interest rates.

“There has definitely been a pick-up in investor interest in the asset class and the amount of interest has caused managers to want to come to market with a product because they know there is an appetite for it,” says Michael Roth, co-founder of Stark, a $2.4 billion hedge fund, according to Reuters.

“Where does the yield-hungry investor go to whet their appetite? Investors were waiting to see if they could get yield in other places and found it was not happening.”

Home prices are down 35% from their peak in 2006. Now is a good time to buy. To get pre-approved, please contact Prime Lending. Ana Zendejas 949.573.1561 or Uly Kim 949.533.4911

Rancho Santa Margarita Homes for Sale: 23 White Sands

23 White Sands, Rancho Santa Margarita, CA 92679 (MLS # P815862)

LOVELY TRI-LEVEL CONDO WITH REFRESHING ASSOCIATION POOL AND SPA!!THIS HOME OFFERS A LIGHT AND BRIGHT FLOORPLAN WITH CUSTOM PAINT AND CROWN MOLDING THROUGHOUT!! KITCHEN W/BREAKFAST BAR, RECESSED LIGHTING AND STAINLESS STEEL APPLIANCES!! DINING ROOM HAS DOUBLE FRENCH DOORS THAT OPEN TO CHARMING ENCLOSED PATIO!! MASTER BEDROOM OFFERS CUSTOM CROWN MOLDING, WOODEN SHUTTERS, DECORATIVE CEILING FAN AND MIRRORED WARDROBE CLOSETS!! MASTER BATH HAS DUAL SINK AND TRAVERTINE SHOWER AND FLOORS!! DIRECT ACCESS TO GARAGE AND NEW WATER HEATER!!

Property Type(s): Condominium, Residential

Last Updated	4/12/2012	Tract	Dakota (DAKO)
Year Built	1997	Community	Wagon Wheel
Garage Spaces	1.0	County	Orange
Total Parking	3	Walk Score ®	12

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Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with Susan LaPeter DRE# 01407225, Prudential California Realty

(view all details for MLS #P815862)

Yorba Linda Homes for Sale: 21665 Waterford

21665 Waterford Dr, Yorba Linda, CA 92887 (MLS # P817116)

THIS 3,132 SQ. FT. HOME SITS ON A 45,460 SQ. FT LOT WITH OVER 20 FRUIT TREES AT THE END OF A SMALL QUIET CUL-DE-SAC!! IT OFFERS A DOWNSTAIRS BEDROOM AND FULL BATH!! THIS SPACIOUS FLOORPLAN OFFERS TONS OF NATURAL LIGHTING AND LUXURY IDEAL FOR FINE FAMILY LIVING!! YOU ENTER THROUGH A COVERED ENTRY AND STEP DOWN INTO DRAMATIC TWO-STORY HIGH LIVING ROOM. FAMILY ROOM OFFERS COZY FIREPLACE AND BUILT IN WET BAR!! LARGE KITCHEN OFFERS RECESSED LIGHTING AND CENTER ISLAND FOR MEAL PREPARATION!! UPSTAIRS, THE MASTER BEDROOM SUITE BOASTS AN INVITING FIREPLACE AND SITTING AREA!! MASTER BATH CONTAINS HIS AND HERS WALK IN CLOSETS AND A SPA TUB THAT IS SEPARATE FROM THE SHOWER!!

Property Type(s): Single Family, Residential

Last Updated	4/30/2012	Tract	Brighton Estates (BRIE)
Year Built	1989	Community	Yorba Linda
Garage Spaces	3.0	County	Orange
Total Parking	6	Walk Score ®	48

Schools

Features

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with Susan LaPeter DRE# 01407225, Prudential California Realty

(view all details for MLS #P817116)