Grand Rapids, MI -- (SBWire) -- 05/16/2013 --In our modern world it is difficult to stay on top of everything that is happening financially. Dennis Tubbergen, a financial advisor, author, radio show host and CEO of PLP Advisors, LLC can be counted on to give a little help when it comes to understanding the latest events in U.S. and world economics.

Whether people enjoy his weekly newsletter at www.moving-markets.com or his blog at www.dennistubbergen.com, Tubbergen is dedicated to sharing his viewpoints and opinions. On May 8, 2013 his blog was titled Housing Good News?

"There have been a number of reports recently describing the recent gains made in housing prices," began Tubbergen. "I've had many conversations with clients about the timing of selling pieces of real estate: should they sell now or will there be a better time in the future?"

Tubbergen quotes below from an April 30, 2013 article in Time magazine which describes recent activity in the housing market.

If journalists were allowed to bet (we're not) it would have been easy to call today's S&P/Case-Shiller housing price data. After jumps of 6.8% two months ago (reflecting December year-over-year sales) and 8.1% last month (reflecting January sales), "up" would have been a fairly easy prediction.

And, indeed, today's announcement of a 9.3% year-over-year gain for February is right on trend. The number appears to reflect a broad national trend, with gains in each of the 20 metro areas the Home Price Index includes. Even New York, which had been the last holdout with a negative report of down 0.3% last month, came in with a 1.9% gain.

In fact, the index is ratcheting up with such speed that it no longer seems driven by people buying homes in which to live, especially in an economy with unemployment still at a pesky 7.6% and job growth low. Compare that with housing price gains of 23% per year in Phoenix; 17.6% in Las Vegas; and 16.5% in Atlanta. Prices are even up 15.2% per year in Detroit, which is enough to make many city mayors consider their own Clint Eastwood commercials.

The answer to the paradox may indeed be buying by investors rather than homesteaders. First-time buyers, especially, have found current credit markets tough to navigate. The Federal Housing Administration, which traditionally provides a boost for first-time homeowners by insuring their mortgages, is now backing one-quarter of all homes purchased in America, up from a more typical 10 to 15% market share, according to a story by Rose Melly in the San Jose Mercury News. However, the FHA has made its policies more restrictive -- and those purchases more expensive -- by raising the mortgage insurance premiums (MIPs) that it charges by one-tenth of 1%. For homes under $625,000, the MIP has gone up from 1.25% to 1.35%. That may not seem like much, but when you're trying to make a housing payment as a first-timer, every dollar counts.

The article goes on to say that few would venture to say that housing isn't on the mend right now. Over the past several months prices have increased on the back of incredible support by the Federal Reserve, which has taken its balance sheet north of $3.3 trillion, buying more than $1 trillion in mortgage-backed securities.

Tubbergen's bottom line here?

"I believe that the facts suggest the rebound in the housing market is largely artificial and would not exist without the high level of support being offered," he concludes. "Thinking about selling a piece of real estate? It could be the time to consider it."

To read the blog in its entirety go to http://www.dennistubbergen.com and select his May 8, 2013 entry.

Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM.

About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at www.dennistubbergen.com. To view Tubbergen’s latest Moving Markets? newsletter, go to www.moving-markets.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.