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Showing posts with label real estate market. Show all posts
Showing posts with label real estate market. Show all posts
Saturday, February 16, 2013
Confidence Index for February 2013
Wednesday, November 14, 2012
Tuesday, March 13, 2012
Thursday, February 24, 2011
When will it end
Taken from responses to the question "When will it end?" by other Realtors.
1) As long as the banks are involved in real estate transactions which they know nothing about, it probably won't end for years to come. These banks are unbelievable. They just sent us a short sale package back saying that the word "Phoenix" was abbreviated "Phx" and it need to be spelling out on the listing contract. Once it was corrected, it took them two weeks to come back and demand that all parties sign the listing contract. Say what? Since when does a buyer get to look at listing contracts between the seller and broker?
Problems like this one are occurring every day. Yes, I wonder too, when will it end?
2) It will end when the large prevelent foreclosures and short sales end. I agree with (above), each bank/company has their own rules for these properties. It is not a matter of understanding how to deal with the foreclosure, because it is almost impossible to learn all the different rules.
3) Good question! I definitely agree with both (of the above), but would add that until unemployment abates and jobs open up or are created, we will continue to have issues.
4) There is also the perception by consumers that the market is in complete disarray and they are waiting for it to return to "normal." There are almost no buyers in the market because they think prices will continue to drop. Potential sellers know they are going to take a beating if they try to sell. They all think that, at some point, the market will return to where it was. Until consumers realize that this, in many ways, is the new normal, buyers and sellers will continue to sit on the sidelines.
Then there is the issue of financing. But I'll leave that for another commenter.
ED Comment: These are the views of four Realtors that offer reflection of where the market is and when will we see some stability return. "Normal" is not a return to our past, it is where we are today and for the foreseeable future. If you are sitting on the fence, waiting will not provide a better time to act for several years to come.
Denis
1) As long as the banks are involved in real estate transactions which they know nothing about, it probably won't end for years to come. These banks are unbelievable. They just sent us a short sale package back saying that the word "Phoenix" was abbreviated "Phx" and it need to be spelling out on the listing contract. Once it was corrected, it took them two weeks to come back and demand that all parties sign the listing contract. Say what? Since when does a buyer get to look at listing contracts between the seller and broker?
Problems like this one are occurring every day. Yes, I wonder too, when will it end?
2) It will end when the large prevelent foreclosures and short sales end. I agree with (above), each bank/company has their own rules for these properties. It is not a matter of understanding how to deal with the foreclosure, because it is almost impossible to learn all the different rules.
3) Good question! I definitely agree with both (of the above), but would add that until unemployment abates and jobs open up or are created, we will continue to have issues.
4) There is also the perception by consumers that the market is in complete disarray and they are waiting for it to return to "normal." There are almost no buyers in the market because they think prices will continue to drop. Potential sellers know they are going to take a beating if they try to sell. They all think that, at some point, the market will return to where it was. Until consumers realize that this, in many ways, is the new normal, buyers and sellers will continue to sit on the sidelines.
Then there is the issue of financing. But I'll leave that for another commenter.
ED Comment: These are the views of four Realtors that offer reflection of where the market is and when will we see some stability return. "Normal" is not a return to our past, it is where we are today and for the foreseeable future. If you are sitting on the fence, waiting will not provide a better time to act for several years to come.
Denis
Monday, April 12, 2010
Pending Sales Up
April 12, 2010 Realty Times
Real Estate Outlook: Pending Sales Up by Kenneth R. Harney
Signs of recovery in the housing market and the national economy keep popping up - and are even beginning to surprise veteran analysts on Wall Street and elsewhere.
Though economists had expected the latest pending home sales index to be down - after all, February saw the worst weather in decades in large parts of the U.S. - the numbers actually took a big bounce.
The National Association of Realtors reported that pending sales jumped 8.2 percent for the month and were 17 percent higher than they were at the same time last year.
Contracts in the Northeast were up by 9 percent, the Midwest by 22 percent and in the South by 9 percent. Only the Western region came in negative - down by 5 percent. But even in the West, pending sales were 15 percent higher than they were the year before.
With the April 30 deadline for sales contracts to qualify for the two housing tax credits just weeks away, analysts expect home sales activity to remain high. Lawrence Yun, chief economist for the National Association of Realtors, says he thinks we may be in “the early stages of a second surge” of real estate transactions that could continue into mid-year.
But let's be clear: Home sales are not only being pushed by tax credits. Far stronger impetus is coming from steadily improving conditions in the national economy and rising consumer perceptions that finally things are getting better.
Look at the latest monthly employment numbers from the Bureau of Labor Statistics. For the first time in nearly two years, there was significant new job creation during the month of March - 162,000 payroll positions.
That was helped along in part by Census Bureau hiring to conduct the 2010 census, but there was growth elsewhere as well: 15,000 net new construction jobs, 17,000 manufacturing jobs, and 11,000 business services jobs.
Home Depot and other big household-oriented retailers announced that they have begun hiring again. Retails sales nationwide jumped by 23 percent for the month; home furnishings and furniture sales were up 14 percent
Mark Zandi, chief economist for Moody's Economy.com, told the New York Times that “consumers are (getting) almost giddy” in their zeal to resume spending, and they are cutting their savings to fund their new purchases.
All of this, of course, is great news for housing, which is hardwired to employment growth and consumer confidence
But don't assume we're out of the woods quite yet -- not with the national unemployment rate stuck at 9.7 percent. And there's another challenge taking shape on the horizon: Rising mortgage rates that are inevitable in an economy rebounding out of recession.
Copyright © 2010 Realty Times. All Rights Reserved.
Real Estate Outlook: Pending Sales Up by Kenneth R. Harney
Signs of recovery in the housing market and the national economy keep popping up - and are even beginning to surprise veteran analysts on Wall Street and elsewhere.
Though economists had expected the latest pending home sales index to be down - after all, February saw the worst weather in decades in large parts of the U.S. - the numbers actually took a big bounce.
The National Association of Realtors reported that pending sales jumped 8.2 percent for the month and were 17 percent higher than they were at the same time last year.
Contracts in the Northeast were up by 9 percent, the Midwest by 22 percent and in the South by 9 percent. Only the Western region came in negative - down by 5 percent. But even in the West, pending sales were 15 percent higher than they were the year before.
With the April 30 deadline for sales contracts to qualify for the two housing tax credits just weeks away, analysts expect home sales activity to remain high. Lawrence Yun, chief economist for the National Association of Realtors, says he thinks we may be in “the early stages of a second surge” of real estate transactions that could continue into mid-year.
But let's be clear: Home sales are not only being pushed by tax credits. Far stronger impetus is coming from steadily improving conditions in the national economy and rising consumer perceptions that finally things are getting better.
Look at the latest monthly employment numbers from the Bureau of Labor Statistics. For the first time in nearly two years, there was significant new job creation during the month of March - 162,000 payroll positions.
That was helped along in part by Census Bureau hiring to conduct the 2010 census, but there was growth elsewhere as well: 15,000 net new construction jobs, 17,000 manufacturing jobs, and 11,000 business services jobs.
Home Depot and other big household-oriented retailers announced that they have begun hiring again. Retails sales nationwide jumped by 23 percent for the month; home furnishings and furniture sales were up 14 percent
Mark Zandi, chief economist for Moody's Economy.com, told the New York Times that “consumers are (getting) almost giddy” in their zeal to resume spending, and they are cutting their savings to fund their new purchases.
All of this, of course, is great news for housing, which is hardwired to employment growth and consumer confidence
But don't assume we're out of the woods quite yet -- not with the national unemployment rate stuck at 9.7 percent. And there's another challenge taking shape on the horizon: Rising mortgage rates that are inevitable in an economy rebounding out of recession.
Copyright © 2010 Realty Times. All Rights Reserved.
Monday, February 15, 2010
Real Estate Outlook: National PMI Index
Realty Times of February 15, 2010
Real Estate Outlook: National PMI Index by Kenneth R. Harney
One of the most accurate forecasters of housing value movements has just signaled something potentially important: For the first time in a year, according to the national PMI index, “overall risk has decreased” in the 384 metropolitan markets covered by the survey.
The PMI risk index is produced quarterly by private mortgage insurance giant, PMI Group. It examines local employment, household income, economic growth, demographic changes and other factors to predict where home values are headed in these market areas.
PMI's risk index was among the earliest warning bells about the housing crash, so its quarterly findings are followed closely by mortgage analysts. According to the latest index released last week, home values are increasing in dozens of major metropolitan markets, causing the average risk rating for the U.S. to drop by 2.6 percent.
That's not huge, but it's a directional signal. The index found risk levels elevated in the so-called “sand states” -- California, Florida, Nevada and Arizona. It also documented a slight worsening of affordability conditions in 81 percent of metropolitan markets -- mainly the result of the uptick in home prices and slightly higher average mortgage interest rates late last year.
Another key market barometer was released last week with at least mildly encouraging numbers: The Zillow index of home owner negative equity found that the national average rate dropped to 21.4 percent in the last quarter of 2009, down from 23 percent in the second quarter.
Also the Federal Reserve's quarterly study measuring the nation's finances - the so-called “flow of funds” report, found that after nearly three years of declines, Americans are building positive equity in their homes again.
Between the first quarter of last year and the third quarter, according to the Fed, homeowner equity increased by almost $1 trillion. That was caused primarily by a combination of rising home values and principal paydowns on mortgages.
Meanwhile, home builders are also reporting an easing of their multi-year tale of woe: Several major publicly-traded national builders, including D R Horton and Beazer, announced last week that they are seeing higher numbers of orders along with reduced cancellation rates on contracts.
Horton said in its most recent quarter, orders for new homes were 45 percent above year-earlier levels, and the cancellation rate dropped from 38 percent to 26 percent.
Mortgage rates continue to be helpful as well: Thirty year fixed rates dropped to 4.9 percent last week, according to the Mortgage Bankers Association. Fifteen year rates remained flat at 4.3 percent.
Copyright © 2010 Realty Times. All Rights Reserved.
Real Estate Outlook: National PMI Index by Kenneth R. Harney
One of the most accurate forecasters of housing value movements has just signaled something potentially important: For the first time in a year, according to the national PMI index, “overall risk has decreased” in the 384 metropolitan markets covered by the survey.
The PMI risk index is produced quarterly by private mortgage insurance giant, PMI Group. It examines local employment, household income, economic growth, demographic changes and other factors to predict where home values are headed in these market areas.
PMI's risk index was among the earliest warning bells about the housing crash, so its quarterly findings are followed closely by mortgage analysts. According to the latest index released last week, home values are increasing in dozens of major metropolitan markets, causing the average risk rating for the U.S. to drop by 2.6 percent.
That's not huge, but it's a directional signal. The index found risk levels elevated in the so-called “sand states” -- California, Florida, Nevada and Arizona. It also documented a slight worsening of affordability conditions in 81 percent of metropolitan markets -- mainly the result of the uptick in home prices and slightly higher average mortgage interest rates late last year.
Another key market barometer was released last week with at least mildly encouraging numbers: The Zillow index of home owner negative equity found that the national average rate dropped to 21.4 percent in the last quarter of 2009, down from 23 percent in the second quarter.
Also the Federal Reserve's quarterly study measuring the nation's finances - the so-called “flow of funds” report, found that after nearly three years of declines, Americans are building positive equity in their homes again.
Between the first quarter of last year and the third quarter, according to the Fed, homeowner equity increased by almost $1 trillion. That was caused primarily by a combination of rising home values and principal paydowns on mortgages.
Meanwhile, home builders are also reporting an easing of their multi-year tale of woe: Several major publicly-traded national builders, including D R Horton and Beazer, announced last week that they are seeing higher numbers of orders along with reduced cancellation rates on contracts.
Horton said in its most recent quarter, orders for new homes were 45 percent above year-earlier levels, and the cancellation rate dropped from 38 percent to 26 percent.
Mortgage rates continue to be helpful as well: Thirty year fixed rates dropped to 4.9 percent last week, according to the Mortgage Bankers Association. Fifteen year rates remained flat at 4.3 percent.
Copyright © 2010 Realty Times. All Rights Reserved.
Friday, February 5, 2010
Housing Affected by Demographic Trends
From Realty Times of February 5, 2010
Housing Affected by Demographic Trends by Phoebe Chongchua
The Urban Land Institute predicts there will be two major changes beginning in this new decade in our country that will affect the housing market.
The first is that home appreciation will slow. The report predicts annual appreciation of 1 percent to 2 percent. The second change is that the record-high U.S. homeownership rate will decline from 69 percent to 62 percent.
Four other demographic trends are likely to have an impact as well. Aging baby boomers, those 55 to 64 years old, will keep working, and, some may stay put in their current suburban homes until the values recover. And, just as I wrote about last week, those in this group who do move will look for comfortable, easy homes (first-floor master bedroom), but the report indicates they’ll look for mixed-age living environments that cater to active lifestyles.
The second major demographic trend could impact the second-home market. Those between the ages of 46 to 54 years old, according to the report, are in their prime earning years; however, they lack home equity and may not be able to afford second homes (unlike the older baby boomers).
There are approximately 68-million people that make up Generation Y. This group is even larger than the baby boomers. But the report indicates this group is less interested in homeownership. The author of the report, John K. McIlwain, wrote, “They will be renters by necessity or choice for years ahead.” Not surprisingly, this tech-savvy group places high value on communities—real and virtual—where information and ideas can be shared.
This generation likes walkable, close-in communities. They’re not seeking to escape to the outer edges of town, unless they can’t afford anything nearby. Another big draw—“net zero” homes—green and powered exclusively by alternative energy.
The fourth major demographic trend involves immigrants. This group is often attracted to multi-generational housing in areas that have a strong sense of community. So, larger homes are preferred, if affordable.
Overall, the lasting stability of the U.S. housing market, according to McIlwain, will depend most on the structure and revitalization of the private home mortgage finance system.
"Re-establishing a robust private mortgage market will require both strong market fundamentals and a reformed mortgage securitization structure that eliminates past abuses," McIlwain said. Bye-bye suburbia, study says. Well, not completely. But the study does indicate that several factors are escalating the popularity of urbanization: two-person household growth (including those households without children), fewer baby boomers moving to the suburbs, Gen Y opting/forced to rent rather than own, and public policies that encourage compact development.
However, the author of the study says that urban infill development can’t accommodate all the housing demand from the demographic groups. McIlwain cautions that suburban development "must adapt or it will be obsolete.” A new era is blossoming, “The suburban century is over. This is the urban century."
Copyright © 2010 Realty Times. All Rights Reserved.
Housing Affected by Demographic Trends by Phoebe Chongchua
The Urban Land Institute predicts there will be two major changes beginning in this new decade in our country that will affect the housing market.
The first is that home appreciation will slow. The report predicts annual appreciation of 1 percent to 2 percent. The second change is that the record-high U.S. homeownership rate will decline from 69 percent to 62 percent.
Four other demographic trends are likely to have an impact as well. Aging baby boomers, those 55 to 64 years old, will keep working, and, some may stay put in their current suburban homes until the values recover. And, just as I wrote about last week, those in this group who do move will look for comfortable, easy homes (first-floor master bedroom), but the report indicates they’ll look for mixed-age living environments that cater to active lifestyles.
The second major demographic trend could impact the second-home market. Those between the ages of 46 to 54 years old, according to the report, are in their prime earning years; however, they lack home equity and may not be able to afford second homes (unlike the older baby boomers).
There are approximately 68-million people that make up Generation Y. This group is even larger than the baby boomers. But the report indicates this group is less interested in homeownership. The author of the report, John K. McIlwain, wrote, “They will be renters by necessity or choice for years ahead.” Not surprisingly, this tech-savvy group places high value on communities—real and virtual—where information and ideas can be shared.
This generation likes walkable, close-in communities. They’re not seeking to escape to the outer edges of town, unless they can’t afford anything nearby. Another big draw—“net zero” homes—green and powered exclusively by alternative energy.
The fourth major demographic trend involves immigrants. This group is often attracted to multi-generational housing in areas that have a strong sense of community. So, larger homes are preferred, if affordable.
Overall, the lasting stability of the U.S. housing market, according to McIlwain, will depend most on the structure and revitalization of the private home mortgage finance system.
"Re-establishing a robust private mortgage market will require both strong market fundamentals and a reformed mortgage securitization structure that eliminates past abuses," McIlwain said. Bye-bye suburbia, study says. Well, not completely. But the study does indicate that several factors are escalating the popularity of urbanization: two-person household growth (including those households without children), fewer baby boomers moving to the suburbs, Gen Y opting/forced to rent rather than own, and public policies that encourage compact development.
However, the author of the study says that urban infill development can’t accommodate all the housing demand from the demographic groups. McIlwain cautions that suburban development "must adapt or it will be obsolete.” A new era is blossoming, “The suburban century is over. This is the urban century."
Copyright © 2010 Realty Times. All Rights Reserved.
Tuesday, January 12, 2010
Real Estate Outlook
Realty Times of January 12, 2010
Real Estate Outlook: The Numbers Are In by Kenneth R. Harney
The drop in the latest pending home sales index got a lot of press attention, but that blip downward shouldn't be your guide on what to expect for real estate in 2010.
The 16 percent decline in November pending sales from October's unusually high index was due almost entirely to buyers' behavior confronting what they thought was an expiring tax credit.
In October the pending sales index went off the charts. Buyers were scrambling to sign contracts before the $8,000 credit program expired at the end of the month.
In November, buyer behavior was just the opposite. When Congress extended the credit through next April 30, the pressure was off. Nobody needed to rush to sign contracts.
Not surprisingly, the November index hit the skids.
Meanwhile, even November's pending sales number was a solid 16 percent above November 2008. That suggests that even without the extra incentive provided by the credit, the home sale market is gaining strength for its own fundamental reasons: huge pent-up demand, low prices and great financing.
But keep this in mind: Those fundamentals are dynamic - and buyers and sellers need to stay on top of them as they change in the weeks ahead.
For example, as we've noted before here at Realty Times, with the economy climbing slowly out of recession, and the Federal Reserve expected to throttle back on its mortgage securities purchases , interest rates are now trending upwards.
Last week's thirty year average fixed rate for new mortgages hit 5.2 percent, according to the Mortgage Bankers Association. That's still very low by historical standards, but it's up nearly a quarter of a percentage point just since mid December.
Fifteen year fixed rates averaged 4.6 percent -- a rise of one third of a point in the past few weeks.
Home prices are also beginning to trend upward in key markets, according to the latest Case-Shiller home price index. In San Francisco and Minneapolis, the index is up by about 15 percent since the low point earlier in 2009, according to an analysis by Bespoke Investment Group.
The same analysis found the Case-Shiller index up 8.3 percent from last year's low point to the latest month in metropolitan Washington DC, 7.6 percent in San Diego, 7.2 percent in Denver, 6.9 percent in Chicago and Phoenix, 6.8 percent in Dallas and 6.1 percent in Boston.
With reports of fewer layoffs plus significant new gains in manufacturing outplut and retail sales don't be surprised to see prices-and mortgage rates -- continue to rise in the months ahead.
Copyright © 2010 Realty Times. All Rights Reserved.
Real Estate Outlook: The Numbers Are In by Kenneth R. Harney
The drop in the latest pending home sales index got a lot of press attention, but that blip downward shouldn't be your guide on what to expect for real estate in 2010.
The 16 percent decline in November pending sales from October's unusually high index was due almost entirely to buyers' behavior confronting what they thought was an expiring tax credit.
In October the pending sales index went off the charts. Buyers were scrambling to sign contracts before the $8,000 credit program expired at the end of the month.
In November, buyer behavior was just the opposite. When Congress extended the credit through next April 30, the pressure was off. Nobody needed to rush to sign contracts.
Not surprisingly, the November index hit the skids.
Meanwhile, even November's pending sales number was a solid 16 percent above November 2008. That suggests that even without the extra incentive provided by the credit, the home sale market is gaining strength for its own fundamental reasons: huge pent-up demand, low prices and great financing.
But keep this in mind: Those fundamentals are dynamic - and buyers and sellers need to stay on top of them as they change in the weeks ahead.
For example, as we've noted before here at Realty Times, with the economy climbing slowly out of recession, and the Federal Reserve expected to throttle back on its mortgage securities purchases , interest rates are now trending upwards.
Last week's thirty year average fixed rate for new mortgages hit 5.2 percent, according to the Mortgage Bankers Association. That's still very low by historical standards, but it's up nearly a quarter of a percentage point just since mid December.
Fifteen year fixed rates averaged 4.6 percent -- a rise of one third of a point in the past few weeks.
Home prices are also beginning to trend upward in key markets, according to the latest Case-Shiller home price index. In San Francisco and Minneapolis, the index is up by about 15 percent since the low point earlier in 2009, according to an analysis by Bespoke Investment Group.
The same analysis found the Case-Shiller index up 8.3 percent from last year's low point to the latest month in metropolitan Washington DC, 7.6 percent in San Diego, 7.2 percent in Denver, 6.9 percent in Chicago and Phoenix, 6.8 percent in Dallas and 6.1 percent in Boston.
With reports of fewer layoffs plus significant new gains in manufacturing outplut and retail sales don't be surprised to see prices-and mortgage rates -- continue to rise in the months ahead.
Copyright © 2010 Realty Times. All Rights Reserved.
Tuesday, August 18, 2009
Price and Sale Gains
Realty Times of August 18, 2009
Real Estate Outlook: Price and Sale Gains by Kenneth R. Harney
Sales of existing homes and condos continue to power the real estate market, in some areas they're up by double digits, and despite all the negative headlines about foreclosures, even prices are rising in many places as well.
Sales in the second quarter ending June 30 jumped by nearly 4 percent countrywide, according to the National Association of Realtors. Second quarter sales in 39 states were higher than the first quarter, as they were in 129 out of the 155 largest markets.
New York saw an impressive 22 percent increase for the quarter, as did Wisconsin. California, Michigan and Minnesota all registered double-digit sales gains compared with the second quarter of 2008.
Prices were still flat or down in markets where large percentages of sales are bank-owned REO. But in relatively healthy metro areas like Beaumont and Port Arthur, Texas, they were up significantly, by 11 percent over the second quarter of 2008.
In the Denver area during June, home prices were 6 percent higher than May, and resales increased by an eye-popping 32 percent, according to MDA DataQuick researchers.
Several of the national home price indexes also continue to point to more than a mere bottoming out -- they're documenting real turnarounds in key areas. The Integrated Asset Services (IAS) 360 index reported a 1.2 percent average increase in its thousands of data-gathering submarkets and neighborhoods for June.
Average prices in Boston gained 2.9 percent for the month, according to IAS. In Chicago they were up 1.3 percent, Los Angeles 2.2 percent, San Francisco 1.7 percent, and San Diego 1.4 percent.
Meanwhile, mortgages continued their modest but steady gains, with new loan applications to buy houses up last week by about one percent over the previous week, according to the Mortgage Bankers Association.
Rates jumped slightly, however, with 30 year fixed conventional loans going for an average 5.4 percent, and fifteen year rates at 4.7 percent.
Conditions in the overall economy were more mixed than in the housing arena, but the big picture still has most economists, and even the Federal Reserve, encouraged that the recession will be over this year.
Fewer jobs were lost last month than expected and unemployment fell to 9.4 percent. But let's face it: losing a quarter of a million jobs in the span of a month is still a serious drag on the economy - and is certainly no plus for housing.
On the other hand, is there anybody out there who wants to trade today's mixed outlook with last fall's horror show scenario, when we were all tottering on the edge of a global financial disaster?
Copyright © 2009 Realty Times. All Rights Reserved.
Real Estate Outlook: Price and Sale Gains by Kenneth R. Harney
Sales of existing homes and condos continue to power the real estate market, in some areas they're up by double digits, and despite all the negative headlines about foreclosures, even prices are rising in many places as well.
Sales in the second quarter ending June 30 jumped by nearly 4 percent countrywide, according to the National Association of Realtors. Second quarter sales in 39 states were higher than the first quarter, as they were in 129 out of the 155 largest markets.
New York saw an impressive 22 percent increase for the quarter, as did Wisconsin. California, Michigan and Minnesota all registered double-digit sales gains compared with the second quarter of 2008.
Prices were still flat or down in markets where large percentages of sales are bank-owned REO. But in relatively healthy metro areas like Beaumont and Port Arthur, Texas, they were up significantly, by 11 percent over the second quarter of 2008.
In the Denver area during June, home prices were 6 percent higher than May, and resales increased by an eye-popping 32 percent, according to MDA DataQuick researchers.
Several of the national home price indexes also continue to point to more than a mere bottoming out -- they're documenting real turnarounds in key areas. The Integrated Asset Services (IAS) 360 index reported a 1.2 percent average increase in its thousands of data-gathering submarkets and neighborhoods for June.
Average prices in Boston gained 2.9 percent for the month, according to IAS. In Chicago they were up 1.3 percent, Los Angeles 2.2 percent, San Francisco 1.7 percent, and San Diego 1.4 percent.
Meanwhile, mortgages continued their modest but steady gains, with new loan applications to buy houses up last week by about one percent over the previous week, according to the Mortgage Bankers Association.
Rates jumped slightly, however, with 30 year fixed conventional loans going for an average 5.4 percent, and fifteen year rates at 4.7 percent.
Conditions in the overall economy were more mixed than in the housing arena, but the big picture still has most economists, and even the Federal Reserve, encouraged that the recession will be over this year.
Fewer jobs were lost last month than expected and unemployment fell to 9.4 percent. But let's face it: losing a quarter of a million jobs in the span of a month is still a serious drag on the economy - and is certainly no plus for housing.
On the other hand, is there anybody out there who wants to trade today's mixed outlook with last fall's horror show scenario, when we were all tottering on the edge of a global financial disaster?
Copyright © 2009 Realty Times. All Rights Reserved.
Tuesday, June 30, 2009
Real Estate Market Conditions
Realty Times of June 30, 2009
Market Conditions by Realty Times Staff
The National Association of Realtors is reporting that May saw a gain in the sale of existing homes -- up by 2.4 percent.
Regionally, existing-home sales varied:
Northeast: rose 3.9 percent
Midwest: rose 9.0 percent
South: unchanged
West: down 0.9 percent
Are we out of the woods? Dr. Lawrence Yun said the appraisal problem is serious. "Lenders are using appraisers who may not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales," he said. "In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment. There is danger of a delayed housing market recovery and a further rise in foreclosures if the appraisal problems are not quickly corrected."
Copyright © 2009 Realty Times. All Rights Reserved.
Market Conditions by Realty Times Staff
The National Association of Realtors is reporting that May saw a gain in the sale of existing homes -- up by 2.4 percent.
Regionally, existing-home sales varied:
Northeast: rose 3.9 percent
Midwest: rose 9.0 percent
South: unchanged
West: down 0.9 percent
Are we out of the woods? Dr. Lawrence Yun said the appraisal problem is serious. "Lenders are using appraisers who may not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales," he said. "In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment. There is danger of a delayed housing market recovery and a further rise in foreclosures if the appraisal problems are not quickly corrected."
Copyright © 2009 Realty Times. All Rights Reserved.
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