A new study by Zillow of prospective homeowners revealed that 42% believe home values will appreciate by 7 percent a year. This despite the fact that home values have steadily declined since the 2008 market crash. It is also in sharp contrast to the historic home value appreciation rate. According to research by Robert Shiller from 1890-2006 US home values appreciated on average 3.7% a year.

Fannie Mae economists are projecting that demand for home loans will more than double in the next two years. This is in large part due to their prediction that mortgage rates will stay well below 5 percent through 2013. This is certainly welcome news for the real estate market following another tough year this year.

California AB 771, which prevents buyers of common interest developments (CID), such as a condominiums or townhomes,  from being charged excess document fees was signed into law by Governor Jerry Brown. Homeowner Associations (HOAs) are required to provide documentation about the CID structure, operation, and management of the HOA. This information must be provided to the home buyer at a “reasonable fee,” typically $75-200. However due to a court decision in 2007 HOAs are allowed to delegate the documentation to a third party that is exempt from any fee limits. These third party providers often charge fees as high as $1,000 for a bundle that includes the required documents.