Mortgage rates declined last week, triggering a dramatic jump in mortgage applications.
The Mortgage Bankers Association reported that its weekly index of mortgage application volume rose 17 percent on a seasonally adjusted basis compared to the previous week.
On an unadjusted basis, the index increased 15.8 percent and was up a whopping 64.5 percent compared to the same week a year ago.
Much of the increase was in refinances, with the refinance index increasing 22.5 percent, the biggest jump since March.
The purchase index rose 9.5 percent, which was the largest gain since early April.Mortgage rates were down across the board:
30-year fixed-rate mortgages decreased to 5.02 percent from 5.15 percent.
15-year fixed-rate mortgages decreased to 4.45 percent from 4.57 percent.
1-year ARMs decreased to 6.69 percent from 6.71 percent.
www.BestRateToday.info
Source: Mortgage Bankers Association (09/09/2009)
Friday, September 11, 2009
10 Housing Markets Likely to Rebound Soon
Real estate forecasting service Local Market Monitor, which predicts housing market trends for investors and banks, forecasts that housing prices will decline an average of 5 percent through 2010.
This prediction includes double-digit decreases in Phoenix, Miami, and Las Vegas.
But then the worst could be over, says CEO Ingo Winzer. As the recession eases, “We’ll see good price increases in many markets,” he reports.
In the following markets, home values are expected to remain level this year but increase in value next year:
Baton Rouge, La.
Buffalo-Niagara Falls, N.Y.
Dallas-Plano-Irving, Texas
Fort Worth-Arlington, Texas
Houston-Sugar Land-Baytown, Texas
Little Rock-North Little Rock-Conway, Ark.
Omaha-Council Bluffs, Neb.-Iowa
Pittsburgh, Pa.
San Antonio, Texas
Syracuse, N.Y.
Here are the 10 largest markets where prices are expected to continue to decline through 2010:
Fresno, Calif.
Las Vegas-Paradise, Nev.
Miami-Miami Beach-Kendall, Fla.
Orlando-Kissimmee, Fla.
Phoenix-Mesa-Scottsdale, Ariz.
Portland-Vancouver-Beaverton, Ore.-Wash.
San Jose-Sunnyvale-Santa Clara, Calif.
Stockton, Calif.
Tacoma, Wash.
Tucson, Ariz.
For Indianapolis Area homes for sale visit: www.IndyRealEstate.info
Source: Local Market Monitor (09/09/2009)
This prediction includes double-digit decreases in Phoenix, Miami, and Las Vegas.
But then the worst could be over, says CEO Ingo Winzer. As the recession eases, “We’ll see good price increases in many markets,” he reports.
In the following markets, home values are expected to remain level this year but increase in value next year:
Baton Rouge, La.
Buffalo-Niagara Falls, N.Y.
Dallas-Plano-Irving, Texas
Fort Worth-Arlington, Texas
Houston-Sugar Land-Baytown, Texas
Little Rock-North Little Rock-Conway, Ark.
Omaha-Council Bluffs, Neb.-Iowa
Pittsburgh, Pa.
San Antonio, Texas
Syracuse, N.Y.
Here are the 10 largest markets where prices are expected to continue to decline through 2010:
Fresno, Calif.
Las Vegas-Paradise, Nev.
Miami-Miami Beach-Kendall, Fla.
Orlando-Kissimmee, Fla.
Phoenix-Mesa-Scottsdale, Ariz.
Portland-Vancouver-Beaverton, Ore.-Wash.
San Jose-Sunnyvale-Santa Clara, Calif.
Stockton, Calif.
Tacoma, Wash.
Tucson, Ariz.
For Indianapolis Area homes for sale visit: www.IndyRealEstate.info
Source: Local Market Monitor (09/09/2009)
Monday, July 27, 2009
June new home sales rise 11 percent
By ALAN ZIBEL, AP Real Estate Writer Alan Zibel, Ap Real Estate Writer
WASHINGTON – New home sales in June posted the fastest increase in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.
While home prices are still falling, the figures released Monday were another sign the housing market is finally bouncing back. Earlier this month, the government reported that new home construction rose to the highest level since last fall.
And data out last week showed home resales rose almost 4 percent in June, the third straight monthly increase.
"The worst of the housing recession ... is now behind us," said David Resler, chief economist at Nomura Securities. "We're turning the corner toward increased activity in housing."
New home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000, the Commerce Department reported Monday.
Shares of big homebuilders soared on the news, with Beazer Homes USA up by more than 13 percent and Hovnanian Enterprises rising 8 percent in afternoon trading. But with home prices still falling, these companies won't be making much money anytime soon.
The median sales price of $206,200 was down 12 percent from $234,300 a year earlier and off nearly 6 percent from $219,000 in May.
In addition to lower prices, buyers are rushing to tax advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers. Home sales need to be completed by the end of November for buyers to take advantage.
"The window of opportunity is closing," said Bernard Markstein, senior economist for the National Association of Home Builders.
June's results were the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.
There were 281,000 new homes for sale at the end of June, down more than 4 percent from May. At the current sales pace, that represents 8.8 months of supply — the lowest level since October 2007. If that number falls to just over 6 months, analysts say, builders will feel more comfortable ramping up construction.
Fallout from the housing crisis has played a central role in the U.S. recession, now the longest since World War II. Foreclosures have spiked, homebuilders have slashed construction, and financial companies have lost billions.
But it will still be a while before homebuilders turn into an engine for the economic recovery. Construction levels are still weak because builders still have too many unsold homes sitting vacant.
FREE New Home Buying Guide - Click Here!
WASHINGTON – New home sales in June posted the fastest increase in more than eight years as buyers took advantage of bargain prices, low interest rates and a federal tax credit for first-time homeowners.
While home prices are still falling, the figures released Monday were another sign the housing market is finally bouncing back. Earlier this month, the government reported that new home construction rose to the highest level since last fall.
And data out last week showed home resales rose almost 4 percent in June, the third straight monthly increase.
"The worst of the housing recession ... is now behind us," said David Resler, chief economist at Nomura Securities. "We're turning the corner toward increased activity in housing."
New home sales rose 11 percent in June to a seasonally adjusted annual rate of 384,000, from an upwardly revised May rate of 346,000, the Commerce Department reported Monday.
Shares of big homebuilders soared on the news, with Beazer Homes USA up by more than 13 percent and Hovnanian Enterprises rising 8 percent in afternoon trading. But with home prices still falling, these companies won't be making much money anytime soon.
The median sales price of $206,200 was down 12 percent from $234,300 a year earlier and off nearly 6 percent from $219,000 in May.
In addition to lower prices, buyers are rushing to tax advantage of a federal tax credit that covers 10 percent of the home price or up to $8,000 for first-time buyers. Home sales need to be completed by the end of November for buyers to take advantage.
"The window of opportunity is closing," said Bernard Markstein, senior economist for the National Association of Home Builders.
June's results were the strongest sales pace since November 2008 and exceeded the forecasts of economists surveyed by Thomson Reuters, who expected a pace of 360,000 units. The last time sales rose so dramatically was in December 2000.
There were 281,000 new homes for sale at the end of June, down more than 4 percent from May. At the current sales pace, that represents 8.8 months of supply — the lowest level since October 2007. If that number falls to just over 6 months, analysts say, builders will feel more comfortable ramping up construction.
Fallout from the housing crisis has played a central role in the U.S. recession, now the longest since World War II. Foreclosures have spiked, homebuilders have slashed construction, and financial companies have lost billions.
But it will still be a while before homebuilders turn into an engine for the economic recovery. Construction levels are still weak because builders still have too many unsold homes sitting vacant.
FREE New Home Buying Guide - Click Here!
Friday, July 24, 2009
Housing Experts: Now Is a Perfect Time to Buy
Don’t forget to remind potential buyers of something that is obvious to real estate professionals:
Now is the time to buy, but that opportunity may be slipping away.
For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek.
He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.
He also adds that the inventory of homes to buy is still large, but it is shrinking.
According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply.
At the end of May 2009, it had fallen to a 9.6-month supply.
Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.
For A FREE Home Buying Guide: Click Here!
Source: BusinessWeek.com, Marc Roth (11/17/2009)
Now is the time to buy, but that opportunity may be slipping away.
For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek.
He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.
He also adds that the inventory of homes to buy is still large, but it is shrinking.
According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply.
At the end of May 2009, it had fallen to a 9.6-month supply.
Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.
For A FREE Home Buying Guide: Click Here!
Source: BusinessWeek.com, Marc Roth (11/17/2009)
Wednesday, July 22, 2009
Staging on a Budget
What's your best, most affordable staging idea? Dozens of real estate pros offer their best tips.
By Melissa Dittmann Tracey
LIVING ROOMS
Create a Focal Point
"Pick out the most visible corner and put a large plant—I've found that silk trees work best. Set up a spotlight behind it so it lights up the leaves and throws an interesting shadow on another wall. It really makes a difference in a person's perception of the space, especially if it's a large room without too much natural lighting."
—Izabela Stone, Keller Williams Realty, Apollo Beach, Fla.
Set Up a Chat Room
"Be sure that the living room furniture is positioned for conversation as well as entertainment. Potential buyers should be able to easily envision sitting in a space where they can easily talk without having to move a chair or turn completely around."
—Rana Lindhorst and Troy Schmidt, Prudential One Realty Centre, Edwardsville, Ill.
Get Rid of Carpet Dents
"Furniture often leaves indentations in the carpet. When a piece of furniture is moved, I tell my clients to put medium-sized ice cubes in the imprints. As the ice melts, it causes the compacted carpet to expand and erase those imprints."
—Shawn Moss, Century 21 C.R. O'Neil & Co.
Accent Special Features
"Place an accent by a home's feature, such as an attractive plant near a fireplace to draw the eye to it or a tall palm or two in place that directs the buyer toward another part of the home or suggests a separation of areas. This also ensures that someone often enters the home to care for it."
—Susan Cramer, HomeSmart Real Estate, Temecula, Calif.
Invoke the Outdoors
"Use a little nature in each room. I create a flow throughout the home using cuttings, flowers, dried flowers, whatever will work. Simple things, such as twigs to spell out a word or a small cutting tied with raffia around a pillow on a bed, draw the eye into the room but don't overpower it. I have even used a branch cutting to make a 'tree' in an empty corner. I try to use one piece of nature in each room to create an ongoing theme throughout the home. It works with any type of decor, whether it's modern or traditional. One important note: Always check for insects!"
—Lauren Scurlock, North Star Real Estate Inc., Virginia Beach, Va.
Indianapolis, Indiana
contact Tony Wilson of Carpenter Realtors at:
317-354-7410 or tonywilson@callcarpenter.com
By Melissa Dittmann Tracey
LIVING ROOMS
Create a Focal Point
"Pick out the most visible corner and put a large plant—I've found that silk trees work best. Set up a spotlight behind it so it lights up the leaves and throws an interesting shadow on another wall. It really makes a difference in a person's perception of the space, especially if it's a large room without too much natural lighting."
—Izabela Stone, Keller Williams Realty, Apollo Beach, Fla.
Set Up a Chat Room
"Be sure that the living room furniture is positioned for conversation as well as entertainment. Potential buyers should be able to easily envision sitting in a space where they can easily talk without having to move a chair or turn completely around."
—Rana Lindhorst and Troy Schmidt, Prudential One Realty Centre, Edwardsville, Ill.
Get Rid of Carpet Dents
"Furniture often leaves indentations in the carpet. When a piece of furniture is moved, I tell my clients to put medium-sized ice cubes in the imprints. As the ice melts, it causes the compacted carpet to expand and erase those imprints."
—Shawn Moss, Century 21 C.R. O'Neil & Co.
Accent Special Features
"Place an accent by a home's feature, such as an attractive plant near a fireplace to draw the eye to it or a tall palm or two in place that directs the buyer toward another part of the home or suggests a separation of areas. This also ensures that someone often enters the home to care for it."
—Susan Cramer, HomeSmart Real Estate, Temecula, Calif.
Invoke the Outdoors
"Use a little nature in each room. I create a flow throughout the home using cuttings, flowers, dried flowers, whatever will work. Simple things, such as twigs to spell out a word or a small cutting tied with raffia around a pillow on a bed, draw the eye into the room but don't overpower it. I have even used a branch cutting to make a 'tree' in an empty corner. I try to use one piece of nature in each room to create an ongoing theme throughout the home. It works with any type of decor, whether it's modern or traditional. One important note: Always check for insects!"
—Lauren Scurlock, North Star Real Estate Inc., Virginia Beach, Va.
Indianapolis, Indiana
contact Tony Wilson of Carpenter Realtors at:
317-354-7410 or tonywilson@callcarpenter.com
Fed Chair Says Foreclosures Could Still Rise
Fed Chair Ben Bernanke testified before the House Financial Services Committee on Tuesday, saying that inflation is likely to decline — not rise, as many have feared.
Therefore, the Fed intends to keep lending rates near zero.Bernanke said inflation should be “lower in 2009 than during 2008 as a whole,” in part "because of the sizable amount of slack in resource utilization.”
Bernanke also discussed foreclosures, which he said probably haven’t peaked because of the rising unemployment rate.
He downplayed the unwinding of the commercial real estate market.
“It is a sector we are paying a lot of attention to,” Bernanke said, noting that commercial mortgages are a small segment of the market. “I don’t think we need to have an enormous program to stimulate improvement.”
Source: The New York Times, Louis Uchitelle (07/21/2009)
Therefore, the Fed intends to keep lending rates near zero.Bernanke said inflation should be “lower in 2009 than during 2008 as a whole,” in part "because of the sizable amount of slack in resource utilization.”
Bernanke also discussed foreclosures, which he said probably haven’t peaked because of the rising unemployment rate.
He downplayed the unwinding of the commercial real estate market.
“It is a sector we are paying a lot of attention to,” Bernanke said, noting that commercial mortgages are a small segment of the market. “I don’t think we need to have an enormous program to stimulate improvement.”
Source: The New York Times, Louis Uchitelle (07/21/2009)
Saturday, July 18, 2009
Report: New-Home Construction Increasing
Despite high unemployment and general concerns of too much existing inventory, new-home construction appears to be rising.
According to Friday’s report from the U.S. Commerce Department, construction of new homes rose 3.6 percent in June compared to May.
Building permits climbed 8.7 percent, and single-family home starts jumped 14.4 percent to 470,000, after rising 5.9 percent in May.
In real numbers, ground was broken for an estimated 58,300 houses nationwide in June, and an estimated 58,400 building permits were issued.
Here’s a look at housing starts in different U.S. regions:
Midwest: up 33.3 percent
Northeast: up 28.6 percent
South: down 1.4 percent
West: down 14.8 percent
Source: The Wall Street Journal, Jeff Bater (06/17/2009)
Contact Tony Wilson of Carpenter Realtors for a FREE New Home Construction Buying Guide: tonywilson@callcarpenter.com or 317-354-7410
According to Friday’s report from the U.S. Commerce Department, construction of new homes rose 3.6 percent in June compared to May.
Building permits climbed 8.7 percent, and single-family home starts jumped 14.4 percent to 470,000, after rising 5.9 percent in May.
In real numbers, ground was broken for an estimated 58,300 houses nationwide in June, and an estimated 58,400 building permits were issued.
Here’s a look at housing starts in different U.S. regions:
Midwest: up 33.3 percent
Northeast: up 28.6 percent
South: down 1.4 percent
West: down 14.8 percent
Source: The Wall Street Journal, Jeff Bater (06/17/2009)
Contact Tony Wilson of Carpenter Realtors for a FREE New Home Construction Buying Guide: tonywilson@callcarpenter.com or 317-354-7410
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