Hidden underneath all the headlines and stories on the proposed government health plan, there are signs of encouraging news that the recession may be easing.
The first full week of August saw some positive results in economic activity, but the news of the declining unemployment rate made investors optimistic. For the first time in the past 17 months fewer job losses were posted and we saw an improved unemployment rate. July saw the lowest number of job losses all year, and the number came in much lower than anticipated. The stock market climbed upward as well. The Dow is now up almost 7% for the year.
This isn’t to say the recovery is in full swing yet, but don’t we all deserve some good news!
And, we saw another positive housing report too. Pending home sales jumped an unexpected 3.6%, when a 0.7% increase was predicted by the experts. We’ve now seen 5 consecutive months of gains in pending contracts. That’s the first time since July 2003 we’ve seen that happen! Affordable home prices and low interest rates have been driving the market upwards. Construction spending was up slightly as well, much better than the drop that was expected.
The 28 major markets the real estate experts watch saw a drop in inventory of 2.5% from June. (The average drop over the last 25 years from June to July is 1%) AND, compared with the inventory in July 2008, there was a big drop of 27%!
Mortgage interest rates are still holding at low levels as well.
At InSight Mortgage Group we’re available to answer your questions regarding new home purchase loans or refinancing your current loan. Call us, 913-642-3334 or email us at michele@wantinsight.com or dickw@wantinsight.com. Look to us for integrity and ethical handling of your financial transactions. Blessings.
Showing posts with label home sales. Show all posts
Showing posts with label home sales. Show all posts
Wednesday, August 12, 2009
Friday, June 12, 2009
READY FOR A LITTLE GOOD NEWS?
Aren’t we all ready for some good news about the economy, even if it’s a modest dot of light at the end of the tunnel?
Thursday (6/11) saw reports with better than expected results in the retail sales sector and jobless claims, which pushed stocks higher. As consumer spending accounts for about two thirds of our economic activity, investors watch retail sales numbers carefully. This piece of good news has lead to reports that “the recession may be easing” by those in the know on Wall Street.
Another piece needed to put the economy on the road to well being is the recovery in the housing market. And we do have some good signs in that direction as well.
Purchase and refinance applications are remaining steady following a burst of activity the past several months, according to the Mortgage Bankers Association, despite a small uptick in fixed-rate mortgage rates. As of Thursday, the average weekly Freddie Mac rate for a fixed rate 30 year mortgage was 5.59%, which was up from the previous weeks 5.29%, BUT down from a year ago, which was 6.32% .
According to the Federal Reserve’s Beige Book, which reports on real estate transactions,many Federal Reserve districts are seeing an increase in home sales. It's reported that new home construction “appeared to be stabilizing at very low levels”. This increase can be attributed to low interest rates, declining home prices, seasonal factors, and the tax credit now available for many first-time home buyers. (Also noted is a weakening of the commercial real estate market.)
The national media has tended to overlook some recent reports that indicate the housing market could be turning upwards finally. Instead, the focus in on foreclosures and increased delinquency rates. Trying to keep up with all the data and reports available to brokers on rates, activity on loan generation, and real estate sales keeps me hoppin’. We all know we need to focus on what happening in our local marketplace. But, by looking at the overall trend nationally, and at some specific areas, we can get a look at what’s happening on a deeper level than reported on the evening news. Remember, bad news sells more than good news, or gathers more viewers.
Clear Capital just released its Home Data Index report. It shows that within larger troubled markets small pockets of price stabilization are occurring; Cleveland and Sacramento – which are among the hardest hit markets in the US – as examples.It also reports that price declines are continuing, but appear to be slowing down, and especially in the Midwest and South.
The most encouraging signs are coming from the nation’s hardest hit markets, where a turnaround has started. The past three months in the San Francisco-Bay area, American and foreign investors, as well as first time buyers, are snapping up bank-owned properties as soon as they’re listed. And, amazingly, agents are witnessing bidding wars even on short sales according to a recent RISMEDIA report. In February 2008, California’s statewide inventory of unsold homes was a 15.2 months supply, compared to March 2009’s number of 5.8! Historically, a six month supply of unsold homes indicates a stable market; neither a buyers market nor a seller’s market.
Per RISMEDIA, Las Vegas, one of the worst markets in the country, has just seen March set the fourth best month for closed sales. The record months, set back in the "boom period", is predicted to be broken during this summer. A board member of the Greater Las Vegas Association of Realtors, Forrest Barbee, said “Things have been looking up but it’s going unnoticed. It’s going to take the data a little longer to catch up to the reality.”
The National Association of Realtors reported a rise of 6.7% in the number of pending sales of existing homes in April. It’s the biggest jump in more than seven years.
By looking at how the market is improving in the most depressed markets, we can evaluate the overall strength of the national market. The markets of Florida, California, Arizona, and Nevada comprise nearly half of the national foreclosures, so an upturn in those markets will be critical. I’ll be watching those numbers and sharing this data with you.
So, cautious optimism is the phrase of the day!
We want to thank you all for your continued business, and for sending InSight Mortgage Group, the referrals from your family, friends, and business associates. Please call us at the office, 913-642-3334 with any questions or comments. Regarding purchase loans or refinancing, email me at michele@wantinsight.com or dickw@wantinsight.com. We always look forward to providing you with the best customer care. Blessings.
Thursday (6/11) saw reports with better than expected results in the retail sales sector and jobless claims, which pushed stocks higher. As consumer spending accounts for about two thirds of our economic activity, investors watch retail sales numbers carefully. This piece of good news has lead to reports that “the recession may be easing” by those in the know on Wall Street.
Another piece needed to put the economy on the road to well being is the recovery in the housing market. And we do have some good signs in that direction as well.
Purchase and refinance applications are remaining steady following a burst of activity the past several months, according to the Mortgage Bankers Association, despite a small uptick in fixed-rate mortgage rates. As of Thursday, the average weekly Freddie Mac rate for a fixed rate 30 year mortgage was 5.59%, which was up from the previous weeks 5.29%, BUT down from a year ago, which was 6.32% .
According to the Federal Reserve’s Beige Book, which reports on real estate transactions,many Federal Reserve districts are seeing an increase in home sales. It's reported that new home construction “appeared to be stabilizing at very low levels”. This increase can be attributed to low interest rates, declining home prices, seasonal factors, and the tax credit now available for many first-time home buyers. (Also noted is a weakening of the commercial real estate market.)
The national media has tended to overlook some recent reports that indicate the housing market could be turning upwards finally. Instead, the focus in on foreclosures and increased delinquency rates. Trying to keep up with all the data and reports available to brokers on rates, activity on loan generation, and real estate sales keeps me hoppin’. We all know we need to focus on what happening in our local marketplace. But, by looking at the overall trend nationally, and at some specific areas, we can get a look at what’s happening on a deeper level than reported on the evening news. Remember, bad news sells more than good news, or gathers more viewers.
Clear Capital just released its Home Data Index report. It shows that within larger troubled markets small pockets of price stabilization are occurring; Cleveland and Sacramento – which are among the hardest hit markets in the US – as examples.It also reports that price declines are continuing, but appear to be slowing down, and especially in the Midwest and South.
The most encouraging signs are coming from the nation’s hardest hit markets, where a turnaround has started. The past three months in the San Francisco-Bay area, American and foreign investors, as well as first time buyers, are snapping up bank-owned properties as soon as they’re listed. And, amazingly, agents are witnessing bidding wars even on short sales according to a recent RISMEDIA report. In February 2008, California’s statewide inventory of unsold homes was a 15.2 months supply, compared to March 2009’s number of 5.8! Historically, a six month supply of unsold homes indicates a stable market; neither a buyers market nor a seller’s market.
Per RISMEDIA, Las Vegas, one of the worst markets in the country, has just seen March set the fourth best month for closed sales. The record months, set back in the "boom period", is predicted to be broken during this summer. A board member of the Greater Las Vegas Association of Realtors, Forrest Barbee, said “Things have been looking up but it’s going unnoticed. It’s going to take the data a little longer to catch up to the reality.”
The National Association of Realtors reported a rise of 6.7% in the number of pending sales of existing homes in April. It’s the biggest jump in more than seven years.
By looking at how the market is improving in the most depressed markets, we can evaluate the overall strength of the national market. The markets of Florida, California, Arizona, and Nevada comprise nearly half of the national foreclosures, so an upturn in those markets will be critical. I’ll be watching those numbers and sharing this data with you.
So, cautious optimism is the phrase of the day!
We want to thank you all for your continued business, and for sending InSight Mortgage Group, the referrals from your family, friends, and business associates. Please call us at the office, 913-642-3334 with any questions or comments. Regarding purchase loans or refinancing, email me at michele@wantinsight.com or dickw@wantinsight.com. We always look forward to providing you with the best customer care. Blessings.
Friday, April 24, 2009
STRENGTH IN FIRST-TIME BUYER SALES
Although March saw a slowing in existing home sales, low mortgage rates and tax credits are drawing first time buyers into the market according the National Association of Realtors.
NAR chief economist, Lawrence Yun, indicated that with the modest ups and downs recently seen in the market, it appears to be stabilizing. “The share of lower priced home sales has trended up, indicating a return of many first-time home buyers, which we also see in a parallel member survey”, he said. “Sales in the upper price ranges have stalled because of higher interest rates on jumbo loans.”
March ’09 saw a rise in home prices, with the national median existing-home price for all types of properties at $175,000, although it is down 12.4% from March 2008. But, the increase in March was 4.2%, which is more than double the 1.8% seasonal increase usually seen at this time. Over half the March transactions were distressed properties which typically sell for 20% less than traditional homes.
The March survey conducted by NAR of its practioners indicated 53% of transactions were first-time buyers. Yun said “buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit.” “By early summer we should be seeing a positive impact on home sales from record low mortgage rates in addition to the stimulus provisions.”
The Midwest region has fared better than the other regions in the country. March’s median price was $141,300, a drop of 6.1% from a year ago, compared to an 18.4% drop in the Northeast, 12.2% in the South, and 11.1% in the West.
At InSight Mortgage Group we can provide you with clear, concise information on the $8,000 first-time buyer tax credit, in addition to finding you the right loan program to fit your specific needs. Call us at 913-642-3334 or email me at michele@wantinsight.com. We look forward to working with you. Blessings.
NAR chief economist, Lawrence Yun, indicated that with the modest ups and downs recently seen in the market, it appears to be stabilizing. “The share of lower priced home sales has trended up, indicating a return of many first-time home buyers, which we also see in a parallel member survey”, he said. “Sales in the upper price ranges have stalled because of higher interest rates on jumbo loans.”
March ’09 saw a rise in home prices, with the national median existing-home price for all types of properties at $175,000, although it is down 12.4% from March 2008. But, the increase in March was 4.2%, which is more than double the 1.8% seasonal increase usually seen at this time. Over half the March transactions were distressed properties which typically sell for 20% less than traditional homes.
The March survey conducted by NAR of its practioners indicated 53% of transactions were first-time buyers. Yun said “buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit.” “By early summer we should be seeing a positive impact on home sales from record low mortgage rates in addition to the stimulus provisions.”
The Midwest region has fared better than the other regions in the country. March’s median price was $141,300, a drop of 6.1% from a year ago, compared to an 18.4% drop in the Northeast, 12.2% in the South, and 11.1% in the West.
At InSight Mortgage Group we can provide you with clear, concise information on the $8,000 first-time buyer tax credit, in addition to finding you the right loan program to fit your specific needs. Call us at 913-642-3334 or email me at michele@wantinsight.com. We look forward to working with you. Blessings.
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