Housing starts in January reached their highest rate in four months, increasing more than analysts expected, the Commerce Department reports. Housing starts jumped 14.6 percent to a seasonally adjusted annual rate of 596,000 units.
Housing starts in January were helped by a 77.7 percent jump in multi-family homes. Single-family home construction, on the other hand, fell 1 percent.
Meanwhile, new home completions dropped to a record low of 512,000 units in January, falling 9.5 percent from the previous month.
And after housing permits surged in December by 15.3 percent, housing permits for future housing projects sank in January. New building permits dropped 10.4 percent to a 562,000-unit pace in January--mostly pulled down by a drop in multi-family and single-family unit permits.
Showing posts with label house. Show all posts
Showing posts with label house. Show all posts
Tuesday, February 22, 2011
Saturday, February 12, 2011
Tarrant County foreclosure postings down 7 percent
Residential foreclosure postings dropped 7 percent in Tarrant County for the March 1 auction, while the Dallas-Fort Worth area saw a 9 percent decline, the Foreclosure Listing Service said Thursday.
In Tarrant County, 1,697 foreclosures were posted, compared with 1,834 a year earlier. March postings were also down 10 percent from February.
For the region, which includes Tarrant, Dallas, Denton and Collin counties, 5,071 foreclosures were posted, down from 5,548 a year earlier. The Addison-based real estate research firm said postings in the four counties have topped 4,000 for 30 consecutive months.
"Residential posting activity has been on the high end of the scale for some time now," said George Roddy Sr., the firm's president. "Posting activity tends to fluctuate at least some each month.
"The fact that postings filed for the upcoming auctions in March were about 9 percent lower than both this time last year and compared to last month does not elicit much excitement."
In the year's first quarter, Tarrant County postings increased 4 percent, to 5,439 from 5,234 a year earlier. It was the second-highest quarter, trailing only the fourth quarter of 2009, when 5,535 postings were filed, Roddy said.
Quarterly postings for the region were flat. From January to March, 16,194 postings were filed, a slight increase from 16,137 postings a year earlier. Collin County saw a 4 percent decline in the quarter, and Dallas County a 1 percent drop.
The auctions are held on the steps of the Tarrant County Courthouse. Postings must be filed with the county at least 21 days before the auction.
Generally, 25 percent to 40 percent of postings result in an actual foreclosure. In many of the other cases, homeowners are able to make up the arrears.
In Tarrant County, 1,697 foreclosures were posted, compared with 1,834 a year earlier. March postings were also down 10 percent from February.
For the region, which includes Tarrant, Dallas, Denton and Collin counties, 5,071 foreclosures were posted, down from 5,548 a year earlier. The Addison-based real estate research firm said postings in the four counties have topped 4,000 for 30 consecutive months.
"Residential posting activity has been on the high end of the scale for some time now," said George Roddy Sr., the firm's president. "Posting activity tends to fluctuate at least some each month.
"The fact that postings filed for the upcoming auctions in March were about 9 percent lower than both this time last year and compared to last month does not elicit much excitement."
In the year's first quarter, Tarrant County postings increased 4 percent, to 5,439 from 5,234 a year earlier. It was the second-highest quarter, trailing only the fourth quarter of 2009, when 5,535 postings were filed, Roddy said.
Quarterly postings for the region were flat. From January to March, 16,194 postings were filed, a slight increase from 16,137 postings a year earlier. Collin County saw a 4 percent decline in the quarter, and Dallas County a 1 percent drop.
The auctions are held on the steps of the Tarrant County Courthouse. Postings must be filed with the county at least 21 days before the auction.
Generally, 25 percent to 40 percent of postings result in an actual foreclosure. In many of the other cases, homeowners are able to make up the arrears.
Wednesday, February 2, 2011
Mortgage Applications Bounce Back
U.S. mortgages were back on the rise last week after a holiday-related slowdown in mid-January, the Mortgage Bankers Association reported.
Mortgage applications gained 11.3 percent in the week ended Jan. 28, according to MBA’s seasonally adjusted index. In the week prior, applications had fallen nearly 13 percent.
Meanwhile, refinancing applications rose 11.7 percent. Loan requests for home purchases also increased 9.5 percent.
Source: “U.S. Mortgage Applications Rose Last Week,” Reuters News (Feb. 2, 2011)
Mortgage applications gained 11.3 percent in the week ended Jan. 28, according to MBA’s seasonally adjusted index. In the week prior, applications had fallen nearly 13 percent.
Meanwhile, refinancing applications rose 11.7 percent. Loan requests for home purchases also increased 9.5 percent.
Source: “U.S. Mortgage Applications Rose Last Week,” Reuters News (Feb. 2, 2011)
Monday, January 24, 2011
The Top Ten Packing Tips for your Next Move
Packing is not an activity that many people enjoy or gladly anticipate. In fact, packing can be downright laborious and stressful. However, with the right amount of planning and forethought, this dreaded activity can actually be completed without too many headaches.
Here is your game plan for easing up your packing stress:
1. Start early – The absolute best thing to do is start packing early. Even if the move is several months away, there are a number of tasks you can begin taking on regarding packing so that you don’t find yourself short on time and in over your head packing at the last minute.
2. Take it slow – Starting early gives you the opportunity to take the packing process slowly. Tackling one room each week, for example, is a sensible goal, as you can really take the time to sort through your belongings and decide what stays and what goes.
3. Hold a garage sale – Speaking of things that go, consider holding a garage sale to get rid of unwanted belongings and housewares. A garage sale is also a great idea for earning extra cash to cover your moving costs and expenses!
4. Consider what you can’t take with you – One of things that every seller should consider is where they are moving and what they can and cannot take with them. For example, it may make sense to take measurements of the rooms in your new home to get a better idea of how your furniture will fit into the space. If you can’t accommodate all your furniture, it makes more sense to get rid of it now and avoid taking it with you.
5. Donate or gift – If you can’t bring all your belongings with you, consider gifting or donating them.
6. Use a dot system – Head to your local office supply store and pick up different colored dot stickers. Allocate a color for each room and stick it on the appropriate box. The stickers will be easily seen so you can be sure you are directing the packed boxes to the appropriate area of your new home.
7. Hit your local liquor store – Liquor stores have loads of boxes and, because they are constructed to hold heavy liquor bottles, you can be sure they are strong enough for your packing needs.
8. Keep your valuables safe – Instead of packing up your belongings and leaving them for the movers, ask a close friend or family member to hold onto your valuables until you move.
9. Avoid overpacking – If you can’t pick up a box once it is packed, it is overpacked!
10. Consider what to not pack – Don’t forget that you and your family will need a certain number of personal effects during the move, so make sure you don’t accidentally pack them.
Here is your game plan for easing up your packing stress:
1. Start early – The absolute best thing to do is start packing early. Even if the move is several months away, there are a number of tasks you can begin taking on regarding packing so that you don’t find yourself short on time and in over your head packing at the last minute.
2. Take it slow – Starting early gives you the opportunity to take the packing process slowly. Tackling one room each week, for example, is a sensible goal, as you can really take the time to sort through your belongings and decide what stays and what goes.
3. Hold a garage sale – Speaking of things that go, consider holding a garage sale to get rid of unwanted belongings and housewares. A garage sale is also a great idea for earning extra cash to cover your moving costs and expenses!
4. Consider what you can’t take with you – One of things that every seller should consider is where they are moving and what they can and cannot take with them. For example, it may make sense to take measurements of the rooms in your new home to get a better idea of how your furniture will fit into the space. If you can’t accommodate all your furniture, it makes more sense to get rid of it now and avoid taking it with you.
5. Donate or gift – If you can’t bring all your belongings with you, consider gifting or donating them.
6. Use a dot system – Head to your local office supply store and pick up different colored dot stickers. Allocate a color for each room and stick it on the appropriate box. The stickers will be easily seen so you can be sure you are directing the packed boxes to the appropriate area of your new home.
7. Hit your local liquor store – Liquor stores have loads of boxes and, because they are constructed to hold heavy liquor bottles, you can be sure they are strong enough for your packing needs.
8. Keep your valuables safe – Instead of packing up your belongings and leaving them for the movers, ask a close friend or family member to hold onto your valuables until you move.
9. Avoid overpacking – If you can’t pick up a box once it is packed, it is overpacked!
10. Consider what to not pack – Don’t forget that you and your family will need a certain number of personal effects during the move, so make sure you don’t accidentally pack them.
Sunday, January 2, 2011
Housing Starts Predicted to Hit 3-Year High
Housing starts will probably reach a three-year high of 739,000 in 2001, creating about 500,000 jobs and helping trim the unemployment rate to 9.1 percent, said David Crowe, chief economist for the National Association of Home Builders, in an interview with Bloomberg.
“This is an ugly economic cycle,” he said. “We need job creation to get people comfortable with buying a home. If they do that, we’ll create jobs that will reinforce that home buying and fuel additional job growth.”
Job growth in other sectors, as well as population growth, will also likely have an effect. The number of U.S. households will rise 0.7 percent to 118.7 million in 2011, the largest annual gain since the beginning of the housing crisis in 2007. Charles Lieberman, chief investment officer at Advisors Capital Management LLC in Hasbrouck Heights, N.J., expects jobs to rise by an average of 200,000 per month in 2011.
The CEO of luxury home builder Toll Brothers is optimistic. “The recovery is here to stay,” said Douglas Yearley. “I think 2011 will be an improving year, but I think 2012 will be a big year for us.”
Source: Bloomberg, Joshua Zumbrun and Kathleen M. Howley (12/28/2010)
“This is an ugly economic cycle,” he said. “We need job creation to get people comfortable with buying a home. If they do that, we’ll create jobs that will reinforce that home buying and fuel additional job growth.”
Job growth in other sectors, as well as population growth, will also likely have an effect. The number of U.S. households will rise 0.7 percent to 118.7 million in 2011, the largest annual gain since the beginning of the housing crisis in 2007. Charles Lieberman, chief investment officer at Advisors Capital Management LLC in Hasbrouck Heights, N.J., expects jobs to rise by an average of 200,000 per month in 2011.
The CEO of luxury home builder Toll Brothers is optimistic. “The recovery is here to stay,” said Douglas Yearley. “I think 2011 will be an improving year, but I think 2012 will be a big year for us.”
Source: Bloomberg, Joshua Zumbrun and Kathleen M. Howley (12/28/2010)
Wednesday, December 22, 2010
Four Steps to Sustainable Homeownership
Purchasing a home is an exciting step in anyone’s life, but there is more to the process than just getting approved for a loan. In fact, it is even more important to make certain you are ready to keep your home for the long term. To that end, here is a look at 4 things you can do to make your homeownership sustainable.
Step #1: Increase Your Knowledge
The first step you need to take is to learn as much about your mortgage loan options as possible. This way, you can be certain to apply for the best type of loan to meet your personal needs. In addition to learning about the pros and cons of various loan options, you need to learn more about how credit scores, discount points and other factors affect the overall cost of a loan. As part of this process, you should contact your local HUD housing counselors to learn more about special buyer programs that might be available in your area.
Step #2: Get Your Finances Under Control
Before you can purchase a home, you need to be certain you will qualify to buy it. If your credit score is below 620, you will be better off taking some time to bring up your score before you make a purchase. This way, you can keep your interest rates down, which will help keep your mortgage payments down and will make it easier for you to keep up with your monthly payments. Of course, by getting your finances under control before you buy, you will also be more likely to be able to stay on top of your bills after you make a purchase.
Step #3: Create a Budget
In order to remain safely within your means, your mortgage payments should never be more than 28 to 33 percent of your total monthly gross income. If you have other debts, such as car payments, student loans, credit cards or child support payments, the total cost of these debts and your mortgage payment should not exceed 36 to 40 percent of your monthly gross income. Therefore, before you make a purchase, carefully analyze your debts and create a budget that will ensure your monthly payments remain below this figure while also leaving enough money available to put toward a savings plan.
Step #4: Get to Saving
Before you start looking for a home, you should have plenty of money saved up to apply toward the purchase of your home. In most cases, Earnest money, which is a deposit provided to the seller, will be required when making an offer. Earnest money requirements can range anywhere from $500 to two percent of the purchase price. In addition, depending upon the type of loan you get, you might need to make a substantial down payment or closing costs. In addition, by establishing good saving habits now, you will be better prepared to handle your finances effectively in the future.
Step #1: Increase Your Knowledge
The first step you need to take is to learn as much about your mortgage loan options as possible. This way, you can be certain to apply for the best type of loan to meet your personal needs. In addition to learning about the pros and cons of various loan options, you need to learn more about how credit scores, discount points and other factors affect the overall cost of a loan. As part of this process, you should contact your local HUD housing counselors to learn more about special buyer programs that might be available in your area.
Step #2: Get Your Finances Under Control
Before you can purchase a home, you need to be certain you will qualify to buy it. If your credit score is below 620, you will be better off taking some time to bring up your score before you make a purchase. This way, you can keep your interest rates down, which will help keep your mortgage payments down and will make it easier for you to keep up with your monthly payments. Of course, by getting your finances under control before you buy, you will also be more likely to be able to stay on top of your bills after you make a purchase.
Step #3: Create a Budget
In order to remain safely within your means, your mortgage payments should never be more than 28 to 33 percent of your total monthly gross income. If you have other debts, such as car payments, student loans, credit cards or child support payments, the total cost of these debts and your mortgage payment should not exceed 36 to 40 percent of your monthly gross income. Therefore, before you make a purchase, carefully analyze your debts and create a budget that will ensure your monthly payments remain below this figure while also leaving enough money available to put toward a savings plan.
Step #4: Get to Saving
Before you start looking for a home, you should have plenty of money saved up to apply toward the purchase of your home. In most cases, Earnest money, which is a deposit provided to the seller, will be required when making an offer. Earnest money requirements can range anywhere from $500 to two percent of the purchase price. In addition, depending upon the type of loan you get, you might need to make a substantial down payment or closing costs. In addition, by establishing good saving habits now, you will be better prepared to handle your finances effectively in the future.
Tuesday, December 21, 2010
Growing Economy Big Factor for Buyers
Economists are surprisingly positive about the impact of rising interest rates on home sales.
The consensus is that while rates are up from where they were, they are still at historically low levels and rock bottom rates are only a part of what encourages people to buy homes. More important factors could be jobs and other financial issues, which appear to be improving.
“Since the recent rate increases have essentially just undone the declines from earlier months, it is hard to see why sales should drop significantly further from current levels,” wrote Goldman Sachs economist Ed McKelvey in a research note published Thursday evening.
Source: The Wall Street Journal, Nick Timiraos (12/17/2010)
The consensus is that while rates are up from where they were, they are still at historically low levels and rock bottom rates are only a part of what encourages people to buy homes. More important factors could be jobs and other financial issues, which appear to be improving.
“Since the recent rate increases have essentially just undone the declines from earlier months, it is hard to see why sales should drop significantly further from current levels,” wrote Goldman Sachs economist Ed McKelvey in a research note published Thursday evening.
Source: The Wall Street Journal, Nick Timiraos (12/17/2010)
Tuesday, November 23, 2010
Why I'm jealous of today's homebuyers
By: Marty Kramer | Consumer columnist
When I bought my current home, nobody was talking about real-estate-market woes or foreclosure troubles or a struggling national economy. And yet, I'm a little jealous of buyers today.
The big story back then was the insane seller's market we were in. Time after time, my wife and I would look at a home hours after it came on the MLS only to learn it was already under contract.
Many houses sold before ever making it to the MLS. Bidding wars were common, and good properties fetched asking price or above. Seller concessions? Forget it.
My wife and I spent about seven minutes in the home we now own before telling our REALTOR® we would make an offer. Full price, of course. Even then, we worried someone would outbid us.
We asked the sellers if they could adjust the closing date so we wouldn't have to move twice. I don't know if they laughed at our request … they knew we had
zero leverage.
It all turned out well. My family is happy in our home, and we love our neighbor-
hood. Still, it would have been nice to have had more time, more choices.
Every real estate market has pros and cons. Right now, interest rates and housing inventory are extremely attractive. The market is pretty balanced, slightly favoring buyers in many locales. If your personal situation is favorable for purchasing a home, why hesitate? Hey, you probably can spend more than seven minutes in a home before deciding if you want to make an offer.
When I bought my current home, nobody was talking about real-estate-market woes or foreclosure troubles or a struggling national economy. And yet, I'm a little jealous of buyers today.
The big story back then was the insane seller's market we were in. Time after time, my wife and I would look at a home hours after it came on the MLS only to learn it was already under contract.
Many houses sold before ever making it to the MLS. Bidding wars were common, and good properties fetched asking price or above. Seller concessions? Forget it.
My wife and I spent about seven minutes in the home we now own before telling our REALTOR® we would make an offer. Full price, of course. Even then, we worried someone would outbid us.
We asked the sellers if they could adjust the closing date so we wouldn't have to move twice. I don't know if they laughed at our request … they knew we had
zero leverage.
It all turned out well. My family is happy in our home, and we love our neighbor-
hood. Still, it would have been nice to have had more time, more choices.
Every real estate market has pros and cons. Right now, interest rates and housing inventory are extremely attractive. The market is pretty balanced, slightly favoring buyers in many locales. If your personal situation is favorable for purchasing a home, why hesitate? Hey, you probably can spend more than seven minutes in a home before deciding if you want to make an offer.
Monday, November 22, 2010
Well-Kept Yards Most Important Factor in Determining Neighborhood Safety
A new survey conducted by Relocation.com finds that 75 percent of Americans believe the most important factor in determining a neighborhood's safety is the up-keep of surrounding homes, especially the conditions of the front lawns, which trumps even Googling neighborhood statistics to get a feel for a community.
The latest Relocation.com survey finds that 74 percent of respondents indicated they would select a neighborhood based on "word-of-mouth" or its local reputation over any other reason, while 67 percent of the respondents say they pay attention to local crime reports and statistics as reported in the local media. Less compelling, according to the survey, are "a gated community with security patrols" and "proximity to a police or fire station" when determining the safety of a neighborhood.
"It's interesting to see how home buyers determine neighborhood safety based on the neighborhood's appearance and not as much based on police statistics or crime reports," says Relocation.com Chairman and Founder Sharon Asher. "Our findings suggest that some home sellers who are struggling to generate interest may want to go the extra mile and help their neighbors with landscaping needs in order to create buyer interest."
The Relocation.com survey was conducted in mid-October, 2010, in a continuing effort to provide information on lifestyle factors that drive moving and relocation decisions in the U.S.
The latest Relocation.com survey finds that 74 percent of respondents indicated they would select a neighborhood based on "word-of-mouth" or its local reputation over any other reason, while 67 percent of the respondents say they pay attention to local crime reports and statistics as reported in the local media. Less compelling, according to the survey, are "a gated community with security patrols" and "proximity to a police or fire station" when determining the safety of a neighborhood.
"It's interesting to see how home buyers determine neighborhood safety based on the neighborhood's appearance and not as much based on police statistics or crime reports," says Relocation.com Chairman and Founder Sharon Asher. "Our findings suggest that some home sellers who are struggling to generate interest may want to go the extra mile and help their neighbors with landscaping needs in order to create buyer interest."
The Relocation.com survey was conducted in mid-October, 2010, in a continuing effort to provide information on lifestyle factors that drive moving and relocation decisions in the U.S.
Wednesday, November 17, 2010
NAR Praises FHA's Increased Stability
The latest independent audit of the Federal Housing Administration shows the agency’s financial condition has improved from last year, when it announced its capital reserve fund had fallen below the 2 percent level mandated by Congress. The annual audit shows that the capital ratio for the single-family portfolio rose from 0.42 percent to 0.79 percent over the past year.
The audit, which calculates the financial condition of the agency’s insurance fund, also showed the mortgage insurance fund grew more than $1 billion in 2010 and reserves are expected to remain above $9.9 billion even if home prices were to fall further. The audit indicates that FHA will most likely not require a bailout now or in the future.
“As the leading advocate for home ownership, the NATIONAL ASSOCIATION OF REALTORS® strongly supports FHA’s mortgage insurance programs,” NAR President Ron Phipps said. “FHA announced major changes earlier this year and took critical steps to strengthen and ensure its long-term financial soundness, and those efforts have paid off.”
FHA’s audit reflected a change in home values, and was not tied to excessive increases in defaults or unsound underwriting practices. In fact, the credit quality of FHA borrowers has increased significantly in the last several years; the average credit score for FHA customers has grown to 693, and less than 8 percent of the agency’s purchase borrowers this year had FICO scores below 620. The capital reserves are not FHA’s only reserve fund; FHA also has a cash reserve account separate from the capital reserve – and actual total reserves have grown to $33 billion.
“The future health of FHA’s reserve funds depends heavily on the direction of home values in the coming years. Home values have shown patterns of stabilization over the past 18 months, and in a recent independent survey, most economists expect modest home price gains over the next 3 years, so FHA’s reserves should steadily improve,” Phipps said.
FHA has played a key role in providing mortgage liquidity to qualified home buyers in recent years and has greatly increased its market share; according to the agency, FHA guaranteed nearly 40 percent of home purchases in the past year.
NAR is working closely with FHA to reassess and amend their lending policies so even more qualified home buyers can become home owners.
Source: NAR
The audit, which calculates the financial condition of the agency’s insurance fund, also showed the mortgage insurance fund grew more than $1 billion in 2010 and reserves are expected to remain above $9.9 billion even if home prices were to fall further. The audit indicates that FHA will most likely not require a bailout now or in the future.
“As the leading advocate for home ownership, the NATIONAL ASSOCIATION OF REALTORS® strongly supports FHA’s mortgage insurance programs,” NAR President Ron Phipps said. “FHA announced major changes earlier this year and took critical steps to strengthen and ensure its long-term financial soundness, and those efforts have paid off.”
FHA’s audit reflected a change in home values, and was not tied to excessive increases in defaults or unsound underwriting practices. In fact, the credit quality of FHA borrowers has increased significantly in the last several years; the average credit score for FHA customers has grown to 693, and less than 8 percent of the agency’s purchase borrowers this year had FICO scores below 620. The capital reserves are not FHA’s only reserve fund; FHA also has a cash reserve account separate from the capital reserve – and actual total reserves have grown to $33 billion.
“The future health of FHA’s reserve funds depends heavily on the direction of home values in the coming years. Home values have shown patterns of stabilization over the past 18 months, and in a recent independent survey, most economists expect modest home price gains over the next 3 years, so FHA’s reserves should steadily improve,” Phipps said.
FHA has played a key role in providing mortgage liquidity to qualified home buyers in recent years and has greatly increased its market share; according to the agency, FHA guaranteed nearly 40 percent of home purchases in the past year.
NAR is working closely with FHA to reassess and amend their lending policies so even more qualified home buyers can become home owners.
Source: NAR
Tuesday, November 16, 2010
3 Reasons to Sell a Home Soon
What do you tell a client who asks whether to sell a house now or wait? Steve McLinden, real estate adviser with Bankrate.com, offers these three good reasons not to wait, even though the holidays are approaching:
1. The market is improving. Most markets have either turned or are close to turning.
2. All real estate is local. Homes in great locations are always in demand.
3. Spring is coming soon. Many potential buyers are starting their online searches right after the holidays, making mid- to late February a great time to start marketing.
Source: Bankrate.com, Steve McLinden
1. The market is improving. Most markets have either turned or are close to turning.
2. All real estate is local. Homes in great locations are always in demand.
3. Spring is coming soon. Many potential buyers are starting their online searches right after the holidays, making mid- to late February a great time to start marketing.
Source: Bankrate.com, Steve McLinden
Sunday, November 14, 2010
Realtors' report says Dallas-Fort Worth home prices rose slightly in third quarter
Dallas-Fort Worth home prices were up by a small margin in the third quarter, and most of the increase was probably due to more sales of higher-priced homes.
The National Association of Realtors reported Thursday that median home sales prices in the D-FW area were up 1.6 percent from third quarter 2009.
The small gain here came as nationwide prices were basically flat, the Realtors said.
"Even with swings in home sales, prices this year have been changing very little from year-ago readings," Realtors' chief economist Lawrence Yun said in the report. The Realtors are forecasting flat home prices in the year ahead.
The just-released national data lines up with local figures that show median home prices in North Texas are up 1 percent year-to-date.
Of the 155 metropolitan areas that the Realtors track each quarter, 76 markets showed price declines.
Home sales in North Texas have slowed dramatically since federal housing tax credits expired at the end of April. But the bulk of the decline has been for lower- and moderate-priced homes. High-end home sales are still rising in many neighborhoods.
"Now that the tax credits have expired, we have seen a real drop-off in the activity at the lower end of the price spectrum," said Ted Wilson, a housing analyst with Dallas-based Residential Strategies Inc. "As a result, the median price has climbed."
David Brown of MetroStudy Inc. agreed: "The average and median prices have increased over the last year because of the surge in sales of homes priced over $500,000."
The National Association of Realtors reported Thursday that median home sales prices in the D-FW area were up 1.6 percent from third quarter 2009.
The small gain here came as nationwide prices were basically flat, the Realtors said.
"Even with swings in home sales, prices this year have been changing very little from year-ago readings," Realtors' chief economist Lawrence Yun said in the report. The Realtors are forecasting flat home prices in the year ahead.
The just-released national data lines up with local figures that show median home prices in North Texas are up 1 percent year-to-date.
Of the 155 metropolitan areas that the Realtors track each quarter, 76 markets showed price declines.
Home sales in North Texas have slowed dramatically since federal housing tax credits expired at the end of April. But the bulk of the decline has been for lower- and moderate-priced homes. High-end home sales are still rising in many neighborhoods.
"Now that the tax credits have expired, we have seen a real drop-off in the activity at the lower end of the price spectrum," said Ted Wilson, a housing analyst with Dallas-based Residential Strategies Inc. "As a result, the median price has climbed."
David Brown of MetroStudy Inc. agreed: "The average and median prices have increased over the last year because of the surge in sales of homes priced over $500,000."
Friday, November 12, 2010
Consumers are Paying Less on Monthly Payments Than Three Years Ago
Experian, a leading global information services company, released its insights on average monthly payments* of the top 25 metropolitan areas. The study found that nationally, consumers are paying $903 per month on their bills, which could include a combination of credit cards, auto loans and leases, and mortgages—a decrease of two percent in the last three years.
The study also reveals that Washington D.C., Seattle and Baltimore top the list with the highest average monthly payments with Washington D.C. coming in at 42 percent higher than the national average. Cities with the lowest payments include Cleveland, Tampa and Pittsburgh .
"The trend we're seeing is that consumers have lower payments, indicating both proactive deleveraging by consumers and tighter limits from lenders and certainly consumers are making fewer major purchases than they were a few years ago," said Michele Raneri, senior director of analytics, Experian. "There are many ways to manage and develop a positive credit score and good payment habits. Paying bills on time is generally the single most important contributor."
Below are some tips for your clients to take into consideration when making a major purchase:
* Get your credit report. Before approving your request for a home loan, mortgage lenders review your credit report. If you review your credit report in advance, you'll see yourself from a lender's perspective.
* Be prepared. When lenders review your credit report, they evaluate how much you already owe, how much unused credit you have available, how prompt you are in paying your debts and whether you've recently applied for new credit.
* Count your savings. To buy a house, you generally need a down payment in the range of 5 percent to 20 percent of your new home's purchase price, depending on your credit risk. You also need money for closing costs and be sure to set aside extra funds for emergencies. If you spend everything on your down payment, you're statistically more likely to lose your new home to foreclosure sometime in the future.
* Make your payments. How much you borrow, how much you owe and when you pay become a part of your credit history. When you apply for new credit purchases, other lenders will review this history. Late payments can stay on your credit report for up to seven years, can keep you from buying another house or can make it more expensive to buy a car. A good credit history proves that you manage your finances well. It lets you enjoy using credit at your convenience and at a lower cost.
The study also reveals that Washington D.C., Seattle and Baltimore top the list with the highest average monthly payments with Washington D.C. coming in at 42 percent higher than the national average. Cities with the lowest payments include Cleveland, Tampa and Pittsburgh .
"The trend we're seeing is that consumers have lower payments, indicating both proactive deleveraging by consumers and tighter limits from lenders and certainly consumers are making fewer major purchases than they were a few years ago," said Michele Raneri, senior director of analytics, Experian. "There are many ways to manage and develop a positive credit score and good payment habits. Paying bills on time is generally the single most important contributor."
Below are some tips for your clients to take into consideration when making a major purchase:
* Get your credit report. Before approving your request for a home loan, mortgage lenders review your credit report. If you review your credit report in advance, you'll see yourself from a lender's perspective.
* Be prepared. When lenders review your credit report, they evaluate how much you already owe, how much unused credit you have available, how prompt you are in paying your debts and whether you've recently applied for new credit.
* Count your savings. To buy a house, you generally need a down payment in the range of 5 percent to 20 percent of your new home's purchase price, depending on your credit risk. You also need money for closing costs and be sure to set aside extra funds for emergencies. If you spend everything on your down payment, you're statistically more likely to lose your new home to foreclosure sometime in the future.
* Make your payments. How much you borrow, how much you owe and when you pay become a part of your credit history. When you apply for new credit purchases, other lenders will review this history. Late payments can stay on your credit report for up to seven years, can keep you from buying another house or can make it more expensive to buy a car. A good credit history proves that you manage your finances well. It lets you enjoy using credit at your convenience and at a lower cost.
Tuesday, November 9, 2010
Real Estate Investing – Is It Possible To Still Make Money?
By: Tina Feston, Atlanta Realtor
Some people may wonder if it is even possible anymore to make money from real estate. The answer is an emphatic “Yes!” Like any other investment, the goal is to buy low and sell high, and by finding foreclosed properties that banks are anxious to unload, you can certainly do the “buy low” part.
The skill you need is to know how little you can pay, and know ways you can purchase distressed real estate while risking little or none of your own money. When people default on their mortgages, the process of foreclosure isn’t instant, or even quick. It is a long, protracted affair during which many legal steps must be followed. Look at it from the bank’s point of view: a borrower has defaulted on his or her loan, has stopped making payments, and pretty soon the bank is going to be stuck with a piece of property that they’re probably going to have a hard time selling. It is far from ideal for the lenders.
When lenders are buried in repossessed real estate and cars, it is a losing situation for them. Every day that a foreclosed house sits empty is a day that the grass grows, the mice get in, and the property values of surrounding real estate drop a little due to blight. Banks are faced with owning an undesirable property whose desirability will most likely continue to drop.
That’s why savvy real estate investors can step in and purchase property from lenders. Even if you only offer a fraction of the asking price, they may consider it, because they have a lot to lose by hanging onto the asset and not much to gain unless real estate in that particular area experiences some unexpected boost, such as a retail or industrial operation locating nearby.
In a slow housing market, obviously people are reluctant to buy real estate. But people still need a place to live, and real estate is the one of the few assets that we have a finite amount of. While some neighborhoods may not like having a rental property down the street, they’d much rather have a rental property than an abandoned, boarded up house that looks worse by the day.
If you are able to buy a foreclosed house for a great price at a decent interest rate, once you make any necessary repairs, you can rent it to one of those people who are averse to buying, and they will most likely cover your monthly mortgage payment and then some with their rent. You’ll be rescuing an undesirable property, making the neighbors happy, you’ll be providing someone a home, making them happy, and you’ll be taking the albatross of undesirable property off the neck of the mortgage lender, which will make them happy.
Successful investing in real estate doesn’t just happen when the market is going up rapidly. In fact, a stagnant or contracting real estate sector is a great time to get in on the ground floor of this type of investment. Business cycles come and go, there is only a finite amount of real estate on the planet, and the world’s population continues to grow. The question isn’t so much “if” real estate investments will pay off as “when” real estate investments will pay off. Successful investment in real estate, like any other worthwhile endeavor, will require brains and hard work, but done right, an investment in real estate can be a sound, long term asset that continues to pay off.
Some people may wonder if it is even possible anymore to make money from real estate. The answer is an emphatic “Yes!” Like any other investment, the goal is to buy low and sell high, and by finding foreclosed properties that banks are anxious to unload, you can certainly do the “buy low” part.
The skill you need is to know how little you can pay, and know ways you can purchase distressed real estate while risking little or none of your own money. When people default on their mortgages, the process of foreclosure isn’t instant, or even quick. It is a long, protracted affair during which many legal steps must be followed. Look at it from the bank’s point of view: a borrower has defaulted on his or her loan, has stopped making payments, and pretty soon the bank is going to be stuck with a piece of property that they’re probably going to have a hard time selling. It is far from ideal for the lenders.
When lenders are buried in repossessed real estate and cars, it is a losing situation for them. Every day that a foreclosed house sits empty is a day that the grass grows, the mice get in, and the property values of surrounding real estate drop a little due to blight. Banks are faced with owning an undesirable property whose desirability will most likely continue to drop.
That’s why savvy real estate investors can step in and purchase property from lenders. Even if you only offer a fraction of the asking price, they may consider it, because they have a lot to lose by hanging onto the asset and not much to gain unless real estate in that particular area experiences some unexpected boost, such as a retail or industrial operation locating nearby.
In a slow housing market, obviously people are reluctant to buy real estate. But people still need a place to live, and real estate is the one of the few assets that we have a finite amount of. While some neighborhoods may not like having a rental property down the street, they’d much rather have a rental property than an abandoned, boarded up house that looks worse by the day.
If you are able to buy a foreclosed house for a great price at a decent interest rate, once you make any necessary repairs, you can rent it to one of those people who are averse to buying, and they will most likely cover your monthly mortgage payment and then some with their rent. You’ll be rescuing an undesirable property, making the neighbors happy, you’ll be providing someone a home, making them happy, and you’ll be taking the albatross of undesirable property off the neck of the mortgage lender, which will make them happy.
Successful investing in real estate doesn’t just happen when the market is going up rapidly. In fact, a stagnant or contracting real estate sector is a great time to get in on the ground floor of this type of investment. Business cycles come and go, there is only a finite amount of real estate on the planet, and the world’s population continues to grow. The question isn’t so much “if” real estate investments will pay off as “when” real estate investments will pay off. Successful investment in real estate, like any other worthwhile endeavor, will require brains and hard work, but done right, an investment in real estate can be a sound, long term asset that continues to pay off.
Sunday, November 7, 2010
Home Sales Could Enter 'Virtuous Cycle'
Consumer confidence and business spending are key to whether the U.S. housing market will move into a virtuous or a vicious cycle in 2011, NAR Chief Economist Lawrence Yun told a packed audience at the Residential Economic Outlook Forum Friday in New Orleans.
After the downturn, the housing market has clawed its way back to a point of near stability, Yun said, with the pace of new foreclosures easing, sales moving toward historically normal levels and prices on a national basis gaining modestly.
At the same time, affordability remains strong. He said all of the price excesses from the housing bubble have been squeezed out. In San Diego, for example, buyers today would pay $1,564 a month in mortgage payments for a house that at the height of the boom would have cost them $2,833 a month.
The broader economy is also showing positive signs, with businesses enjoying strong profits, sitting on huge cash reserves, and even adding jobs. Yun predicts this positive trend to continue into 2011, with existing home sales reaching 5.5 million units, prices rising a modest 1 percent, and the U.S. gross domestic product increasing to about 2.5 percent.
“We are entering a virtuous cycle,” he said. But for the positive trend to continue, he added, businesses will have to start spending some of their cash to fuel job growth at a far greater pace than they’re doing now. Currently, businesses are adding jobs at a pace of about 100,000 a month. That needs to grow to about 400,000 a month for unemployment
to start shrinking.
The scenario will be far more negative if businesses continue to sit on their cash. In that case, sales will fall, inventories will rise, the high rate of foreclosures will resume, and the cost to the federal government of bailing out Fannie Mae and Freddie Mac will surge.
Federal Reserve Governor Thomas Koenig, who shared the data with Yun, said the Fed’s continued effort to spur the economy, most recently through a $600 billion bond buying program, is understandable given concerns over the slow pace of growth. But the continued subsidization of the market could unleash inflationary forces.
Yun said he sees possible evidence of inflation building, but it’s not visible now because the housing-cost portion of inflation measurements is holding down prices.
After the downturn, the housing market has clawed its way back to a point of near stability, Yun said, with the pace of new foreclosures easing, sales moving toward historically normal levels and prices on a national basis gaining modestly.
At the same time, affordability remains strong. He said all of the price excesses from the housing bubble have been squeezed out. In San Diego, for example, buyers today would pay $1,564 a month in mortgage payments for a house that at the height of the boom would have cost them $2,833 a month.
The broader economy is also showing positive signs, with businesses enjoying strong profits, sitting on huge cash reserves, and even adding jobs. Yun predicts this positive trend to continue into 2011, with existing home sales reaching 5.5 million units, prices rising a modest 1 percent, and the U.S. gross domestic product increasing to about 2.5 percent.
“We are entering a virtuous cycle,” he said. But for the positive trend to continue, he added, businesses will have to start spending some of their cash to fuel job growth at a far greater pace than they’re doing now. Currently, businesses are adding jobs at a pace of about 100,000 a month. That needs to grow to about 400,000 a month for unemployment
to start shrinking.
The scenario will be far more negative if businesses continue to sit on their cash. In that case, sales will fall, inventories will rise, the high rate of foreclosures will resume, and the cost to the federal government of bailing out Fannie Mae and Freddie Mac will surge.
Federal Reserve Governor Thomas Koenig, who shared the data with Yun, said the Fed’s continued effort to spur the economy, most recently through a $600 billion bond buying program, is understandable given concerns over the slow pace of growth. But the continued subsidization of the market could unleash inflationary forces.
Yun said he sees possible evidence of inflation building, but it’s not visible now because the housing-cost portion of inflation measurements is holding down prices.
Saturday, November 6, 2010
30-Year Mortgage Rates Inch Up
Freddie Mac confirms that average interest for 30-year fixed mortgages rose for the third consecutive week, bumping up to 4.24 percent from 4.23 percent a week ago.
The average 15-year rate for the week ended Nov. 4 was 3.63 percent, a drop from 3.66 percent.
Scott Brown, chief economist at Raymond James & Associates Inc., says this week's Federal Reserve actions "aren't going to change the economy right away, but they should help keep mortgage rates low for quite some time."
Source: St. Louis Post-Dispatch (11/05/10)
The average 15-year rate for the week ended Nov. 4 was 3.63 percent, a drop from 3.66 percent.
Scott Brown, chief economist at Raymond James & Associates Inc., says this week's Federal Reserve actions "aren't going to change the economy right away, but they should help keep mortgage rates low for quite some time."
Source: St. Louis Post-Dispatch (11/05/10)
Friday, November 5, 2010
Preparing Your Home for the Cooler Months
This year has certainly flown by, and now, with the fall in full swing, it’s a great time to start prepping your home before winter strikes. From water leaks to the chimney, it’s better to be ready for the cold season…before it hits.
Here, State Farm offers up some fall maintenance tips for your home:
Check all window and door locks for proper operation
* Windows that can be opened by breaking the glass and unlocking them, are less effective deterrents to criminals. Check with the hardware store for window lock alternatives.
* All exterior doors should have deadbolt locks.
Make sure there are working nightlights at the top and bottom of all stairs
Other safety ideas for stairs:
* Tile and painted wood or concrete stairs can be slippery when wet or when a person's shoes are wet. Resurface the treads with slip-resistant strips near the stair nosing.
* All stairs of at least three risers should have a handrail.
* Do not store items on the stairs.
Have a heating professional check your heating system every year
Woodburning stove connector pipes and chimneys should be inspected by a certified chimney sweep at least annually.
Replace your furnace filter
Furnace filters need to be replaced frequently to allow your heating and cooling systems to operate properly.
Run all gas-powered lawn equipment until the fuel tank is empty
By doing this, you are removing flammable liquid storage from your garage. At the same time, make sure you aren't storing dirty, oily rags in a pile. They can ignite spontaneously.
Have a certified chimney sweep inspect and clean the flues and check your fireplace damper
Soot and creosote, which build up inside the chimney, can ignite when a fire is lit in the fireplace.
Remove bird nests from chimney flues and outdoor electrical fixtures
Bird nests on top of light fixtures are a fire hazard. Bird nests in chimney flues can prevent a proper venting of combustion gases and can catch fire from sparks. You should exercise great caution when working on your roof or consider hiring a qualified professional to take care of any work that needs to be done.
Make sure the caulking around doors and windows is adequate to reduce heat/cooling loss
Check glazing for loose or missing putty or glazing compound. This will also help reduce water damage to the windows and door frames.
Make sure that the caulking around your bathroom fixtures is adequate to prevent water from seeping into the sub-flooring
Check for cracked or missing caulk around the base of your toilet, bath tub, and bathroom cabinets. Properly sealing gaps between your bathroom fixtures and flooring material can prevent damage.
Here, State Farm offers up some fall maintenance tips for your home:
Check all window and door locks for proper operation
* Windows that can be opened by breaking the glass and unlocking them, are less effective deterrents to criminals. Check with the hardware store for window lock alternatives.
* All exterior doors should have deadbolt locks.
Make sure there are working nightlights at the top and bottom of all stairs
Other safety ideas for stairs:
* Tile and painted wood or concrete stairs can be slippery when wet or when a person's shoes are wet. Resurface the treads with slip-resistant strips near the stair nosing.
* All stairs of at least three risers should have a handrail.
* Do not store items on the stairs.
Have a heating professional check your heating system every year
Woodburning stove connector pipes and chimneys should be inspected by a certified chimney sweep at least annually.
Replace your furnace filter
Furnace filters need to be replaced frequently to allow your heating and cooling systems to operate properly.
Run all gas-powered lawn equipment until the fuel tank is empty
By doing this, you are removing flammable liquid storage from your garage. At the same time, make sure you aren't storing dirty, oily rags in a pile. They can ignite spontaneously.
Have a certified chimney sweep inspect and clean the flues and check your fireplace damper
Soot and creosote, which build up inside the chimney, can ignite when a fire is lit in the fireplace.
Remove bird nests from chimney flues and outdoor electrical fixtures
Bird nests on top of light fixtures are a fire hazard. Bird nests in chimney flues can prevent a proper venting of combustion gases and can catch fire from sparks. You should exercise great caution when working on your roof or consider hiring a qualified professional to take care of any work that needs to be done.
Make sure the caulking around doors and windows is adequate to reduce heat/cooling loss
Check glazing for loose or missing putty or glazing compound. This will also help reduce water damage to the windows and door frames.
Make sure that the caulking around your bathroom fixtures is adequate to prevent water from seeping into the sub-flooring
Check for cracked or missing caulk around the base of your toilet, bath tub, and bathroom cabinets. Properly sealing gaps between your bathroom fixtures and flooring material can prevent damage.
Thursday, November 4, 2010
Mortgage Purchases Rise
Applications to purchase homes rose 1.4 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.
On an unadjusted basis, purchases increased 0.2 percent last week compared to the previous week, but were down 28 percent compared to the same week a year ago.
Overall, mortgage application volume declined 5 percent over the last week on a seasonally adjusted basis because refinances decreased 6.4 percent.
Interest rate changes were mixed.
Average 30-year fixed-rate mortgages increased to 4.28 percent from 4.25 percent, while the average rate for 15-year fixed-rate mortgages decreased to 3.64 percent from 3.67 percent.
Source: Mortgage Bankers Association (11/03/2010)
On an unadjusted basis, purchases increased 0.2 percent last week compared to the previous week, but were down 28 percent compared to the same week a year ago.
Overall, mortgage application volume declined 5 percent over the last week on a seasonally adjusted basis because refinances decreased 6.4 percent.
Interest rate changes were mixed.
Average 30-year fixed-rate mortgages increased to 4.28 percent from 4.25 percent, while the average rate for 15-year fixed-rate mortgages decreased to 3.64 percent from 3.67 percent.
Source: Mortgage Bankers Association (11/03/2010)
Tuesday, November 2, 2010
3 New Anti-Foreclosure Strategies
Here are three programs that are considered promising replacements for the government’s Home Affordable Modification Program (HAMP), which has failed to stop foreclosures.
· Fannie Mae and Freddie Mac would be encouraged to refinance loans for some 30 million borrowers with high-interest rate mortgages. The new mortgages would be folded into a new round of mortgage-backed securities issued by the government-sponsored finance firms.
· The right-to-rent plan would offer delinquent borrowers an option of renting their foreclosed homes at a market rate for five years. At that point, owners turned renters would have another chance to buy their homes at market value. It’s a compromise. Borrowers lose their homes, but lenders have to accept lower payments.
· Mortgage cramdowns give a bankruptcy judge the right to consider all of a borrower’s debts and create a solution that would force all interested parties, including holders of mortgage debt, to compromise.
· Fannie Mae and Freddie Mac would be encouraged to refinance loans for some 30 million borrowers with high-interest rate mortgages. The new mortgages would be folded into a new round of mortgage-backed securities issued by the government-sponsored finance firms.
· The right-to-rent plan would offer delinquent borrowers an option of renting their foreclosed homes at a market rate for five years. At that point, owners turned renters would have another chance to buy their homes at market value. It’s a compromise. Borrowers lose their homes, but lenders have to accept lower payments.
· Mortgage cramdowns give a bankruptcy judge the right to consider all of a borrower’s debts and create a solution that would force all interested parties, including holders of mortgage debt, to compromise.
Monday, November 1, 2010
Sales volume of Texas homes down in third quarter, flat year-to-date
According to the Texas Quarterly Housing Report released today, the volume of real estate sales in Texas decreased in the third quarter of 2010, but was essentially flat year-to-date, due to an early peak in the market driven by the expiration of federal homebuyer tax credits.
For the period of July through September 2010, sales of existing single-family homes decreased 20% to 48,625 compared to the same quarter of the prior year. Year-to-date, home sales are esentially flat at 158,699, down less than one percent compared to 2009. The median price home in Texas remained virtually unchanged in 2010-Q3 at $152,000, and the months of inventory of Texas homes edged upwards to 8 months.
Bill Jones, chairman of the Texas Association of REALTORS®, commented on the results, "If you view these results only within the third quarter, they appear discouraging. However, the expiration of homebuyer tax credits distorts the picture. When evaluated on a broader year-to-date basis, it becomes clear the market is performing consistently compared to 2009. It's also encouraging to see how Texas real estate is holding its value."
Chairman Jones continued, "This year, Texas is withstanding the economic storm that has ravaged other parts of the country, in large part because the leaders of our state made the protection of private-property rights a priority. As we approach the upcoming legislative session, it's important for lawmakers to continue to support public policies that keep Texas on the leading edge of the economic recovery."
The Texas Association of REALTORS® works in partnership with lawmakers to promote policies that protect property rights and homeowners throughout the state. Currently, Texas ranks 41st out of 50 states in homeownership. Electing lawmakers who advocate on behalf of Texas homeowners is crucial to opening the path of homeownership — and the wealth-building opportunities it creates — for more Texans.
Jim Gaines, Ph.D., an economist with the Real Estate Center at Texas A&M University, noted, "This is a difficult time to compare statistics because we're comparing two very different markets — one with substantial support from the federal government in the form of tax credits and one without that support. Thus, year-to-date sales volume is a more meaningful figure to evaluate the current condition and that is still on pace with 2009."
Gaines added, "Although it's hard to predict where the market is headed, if you look at the long-term trends that determine real estate growth, Texas is in a good position. As a state, we are still adding population and we've experienced positive employment growth since almost the first of the year, which is key to rejuvenating our economy overall."
The Texas Quarterly Housing Report is issued four times a year by the Texas Association of REALTORS® with multiple listing service (MLS) data compiled and analyzed by the Real Estate Center at Texas A&M University.
For the period of July through September 2010, sales of existing single-family homes decreased 20% to 48,625 compared to the same quarter of the prior year. Year-to-date, home sales are esentially flat at 158,699, down less than one percent compared to 2009. The median price home in Texas remained virtually unchanged in 2010-Q3 at $152,000, and the months of inventory of Texas homes edged upwards to 8 months.
Bill Jones, chairman of the Texas Association of REALTORS®, commented on the results, "If you view these results only within the third quarter, they appear discouraging. However, the expiration of homebuyer tax credits distorts the picture. When evaluated on a broader year-to-date basis, it becomes clear the market is performing consistently compared to 2009. It's also encouraging to see how Texas real estate is holding its value."
Chairman Jones continued, "This year, Texas is withstanding the economic storm that has ravaged other parts of the country, in large part because the leaders of our state made the protection of private-property rights a priority. As we approach the upcoming legislative session, it's important for lawmakers to continue to support public policies that keep Texas on the leading edge of the economic recovery."
The Texas Association of REALTORS® works in partnership with lawmakers to promote policies that protect property rights and homeowners throughout the state. Currently, Texas ranks 41st out of 50 states in homeownership. Electing lawmakers who advocate on behalf of Texas homeowners is crucial to opening the path of homeownership — and the wealth-building opportunities it creates — for more Texans.
Jim Gaines, Ph.D., an economist with the Real Estate Center at Texas A&M University, noted, "This is a difficult time to compare statistics because we're comparing two very different markets — one with substantial support from the federal government in the form of tax credits and one without that support. Thus, year-to-date sales volume is a more meaningful figure to evaluate the current condition and that is still on pace with 2009."
Gaines added, "Although it's hard to predict where the market is headed, if you look at the long-term trends that determine real estate growth, Texas is in a good position. As a state, we are still adding population and we've experienced positive employment growth since almost the first of the year, which is key to rejuvenating our economy overall."
The Texas Quarterly Housing Report is issued four times a year by the Texas Association of REALTORS® with multiple listing service (MLS) data compiled and analyzed by the Real Estate Center at Texas A&M University.
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