KEYS TO THE '15 HOUSING MARKET

This column has long stated that the key to a healthy real estate market was contained in one critical area -- jobs and wages.  If you didn't catch the OC Register article, by Jonathan Lasner, "12 Keys To The '15 Housing Market," it may be worth it to you to go online and take a look.  Summarizing, a couple of key points on which these two authors agree, are jobs and wages, "lendability", and the U.S. dollar.  To explain: 1) The housing market has enjoyed the past 3 years primarily on low interest rates, motivating many into buying higher than they would like, based on cheap money.  However, this has been an artificial stimulant to the extent that at some point, jobs simply must be there.  Now they have returned averaging 2% annually, the last 3 years, the fastest rate, according to Lasner, since the turn of the century.  2) Lendability - at some point, rates must rise, and sometime this year, just might be the time.  Although it is doubtful we would leave the high 4's or very low 5 percentile, the ease with which borrowers can borrow, might just take up the slack of the higher rates.  In other words, credit requirements loosening just a bit.  You can expect this as competition between lenders heats up.  3) The U.S. dollar -- A safe haven once again, expect investors and foreign buyers to remain strong this year.  This will keep buyers honest, and yet, these buyers refuse to overpay, which keeps sellers honest.  All in all, 2015 is shaping up to be a robust year for all who want and need to take action in the real estate market.