Monthly Archives: July 2009

Pending Home Sales on the Rise

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Pending homes sales have been steadily rising over the past four consecutive months. 

 

The rise is due partly to the fact that the housing is becoming more affordable and buyers are discovering that now is the perfect time to buy a home.  The First-time buyer tax credit is also boosting home sales. 

 

The Pending Home Sales Index is a forward-looking projection based on the number of contracts that were signed in a particular month.  In May, this index rose .1 percent to 90.7 from an upward shift from 90.6 in April.  The last time this index increased four consecutive months was in October 2004. 

 

Lawerence Yun, who is the chief economists for the National Association of Realtors, warns that there might be delays in the number of contracts that actually go into closing.  “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed  or falling through from the application of new appraisal rules for many transactions.”  Yun went on to say “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards.  Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.” 

 

Call your local realtor today in order to take advantage of these first time home-buyer tax credit.  There has never been a better time to buy.

Mortgage Rates Drop for Second Straight Week

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As of July 1, the weekly average rate borrowers were quoted on Zillow Mortgage Marketplace for 30-year fixed mortgages decreased last week to 5.48%, down from 5.58% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by real estate website Zillow.com®. Meanwhile, rates for 15-year fixed mortgages fell to 4.87% from 5.01%, and 5-1 adjustable rate mortgages also fell to 4.65%, down from 4.73 the week prior.

Mortgage Type          Average Rate                           Average Rate
                               Week ending 6/29/09        Week ending 6/21/09          % Change
30-year fixed                 5.48%                                   5.58%                             -1.8%
15-year fixed                 4.87%                                   5.01%                             -2.8%
5-1 ARM                        4.65%                                    4.73%                             -1.7%

As of June 29, rates for 30-year fixed purchase mortgages dropped further, with the average rate on Zillow Mortgage Marketplace at 5.34%.

Thirty-year fixed mortgage rates varied by state. Missouri mortgage rates, Virginia mortgage rates and California mortgage rates decreased the most, from 5.61% to 5.48% in Missouri, from 5.57 to 5.45 in Virginia and from 5.57% to 5.45% in California. Illinois mortgage rates and Massachusetts mortgage rates were the highest, each at 5.57%. Georgia mortgage rates were the lowest, at 5.42%.

State                           Average 30-yr.                   Average 30-yr.
                                      Fixed Rate                          Fixed Rate
                             Week ending 6/29/09           Week ending 6/21/09         % Change
Arizona                         5.48%                                   5.58%                              -1.8%
California                      5.45%                                   5.57%                              -2.2%
Colorado                       5.45%                                   5.55%                             -1.8%
Connecticut                   5.47%                                   5.59%                             -2.1%
Florida                          5.44%                                    5.50%                             -1.1%
Georgia                         5.42%                                    5.52%                             -1.8%
Illinois                           5.57%                                   5.64%                             -1.2%
Maryland                       5.52%                                   5.61%                             -1.6%
Massachusetts              5.57%                                    5.68%                            -1.9%
Michigan                       5.50%                                    5.57%                            -1.3%
Missouri                       5.48%                                    5.61%                            -2.3%
New Jersey                   5.49%                                    5.59%                            -1.8%
New York                     5.54%                                    5.62%                            -1.4%
North Carolina             5.50%                                    5.60%                            -1.8%
Ohio                             5.56%                                    5.64%                            -1.4%
Oregon                         5.50%                                   5.58%                             -1.4%
Pennsylvania                 5.47%                                  5.56%                             -1.6%
Texas                            5.45%                                  5.55%                            -1.8%
Virginia                         5.45%                                  5.57%                             -2.2%
Washington                   5.46%                                  5.53%                             -1.3%

The Zillow Mortgage Rate Monitor is compiled each week using thousands of mortgage rates for conforming loans quoted on Zillow Mortgage Marketplace by mortgage lenders to borrowers who have submitted loan requests. State-level data is gathered for the top 20 states with the highest quote volume on Zillow.

For more information, visit www.zillow.com/Mortgage_Rates/.

Federal Reserve Weighing Their Options

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The Federal Reserve policy makers are beginning to weigh their options to help ease the issues the current economic climate is forcing Americans to deal with.  They will be meeting soon to discuss this situation and asses the options for America.   

 

It is expected that no immediate action will be taken.  One of the Feds concerns is being cautious that the short term fixes will not cause long-term problems, such as inflation. “There are a lot of good signs that an economic recovery could get under way later this year, and with inflation currently low, the Fed for now has the luxury of sitting back and watching this recovery unfold,” said John Silvia, chief economist at Wachovia. Bernanke, the chairman of the Federal Reserve, has predicted the Recession to end by the end of this year. 

 

Positive Indicators in the Travel Industry

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It might be a little early for Americans to see a complete recovery from the economic turmoil that has hit our country over the past year.  However, there are some very positive indicators which point towards economic recovery, especially in the tourism industry. 

 

The US Travel Association stated in a recent travel Outlook that with gasoline prices being down from last summer, and housing demand beginning to show signs of stabilization, consumers are beginning to feel more and more comfortable with traveling.  In fact, consumers are showing the most confidence that they have in eight months.  Economists warn that it will likely be another six months of economic instability, but things will begin to look up by the fourth quarter. 

Outer Banks Vacation Rental

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SEASIDE VACATIONS LAUNCHES CLUB SEASIDE
Guests enjoy complimentary golf and tennis clinics, yoga, wine tastings, surf lessons and circuit training

KITTY HAWK, NC (June 2, 2009) — Situated on a 100-mile stretch of barrier islands off the coast of North Carolina, the Outer Banks is so much more than just stunning vacation homes.  In an effort to provide guests with “more for less,” Seaside Vacations introduces Club Seaside.

Offered exclusively to all guests of Seaside Vacations, Club Seaside features a full calendar of weekly programs including professional golf and tennis clinics, yoga, wine tastings, surf lessons and circuit training – all at no cost to guests.  In addition, all Seaside Vacations’ guests have complimentary access to a state-of-the-art health and racquet club and special guest rates at a world-class golf club.  Each day of the week guests can enjoy complimentary activities and experience local culture by participating in one of these Outer Banks activities.

The economy is struggling, and the travel industry is sluggish along with every other segment of the economy.  Travel forecasts for 2009 predict a significant decline; The Travel Industry Association (TIA) notes that “consumers are likely to plan and purchase leisure trips differently [this year] with the pursuit of a ‘good value’ as the primary reason why.”  Seaside Vacations views these challenges as an opportunity to provide guests with the added value they are looking for.           

“As pointed out by the TIA, today’s guest is looking for a value,” says Seaside Vacations’ President, Gordon Jones, and “we believe that Club Seaside will provide vacationers with the added value they seek and help them experience all that the Outer Banks has to offer.”

John Cook, a longtime visitor to the Outer Banks and recent Seaside Vacations’ guest, took advantage of Club Seaside and mentioned that “this is the first time I’ve seen such an offering on the Outer Banks.”  Cook went on to say that Club Seaside is a “very impressive extra.” 

In addition to economic factors, the vacation rental industry faces unique challenges.  The vacation rental industry is rapidly gaining popularity, but a recent PhocusWright study on the industry points out that only 10% of Americans booked a vacation rental in the past two years.  Vacation rentals offer great benefits to the traveling public, including private pools, fully-equipped kitchens, and large spaces to gather as a group, however, PhocusWright points out that many travelers are “worried they wouldn’t have access to hotel-like services.”  Club Seaside gives guests the hotel-like services they desire. 

Seaside Vacations views an Outer Banks vacation as so much more than just a house at the beach. A vacation is time with friends and family, a chance to relax and unwind, and an opportunity to experience the local culture.  Seaside Vacations has created a variety of guest programs available to all Seaside Vacations’ guests that will enhance the Outer Banks vacation, introduce great local businesses, and add value to the vacation rental.  Seaside Vacations is committed to creating an exceptional vacation experience that includes a gorgeous house, but also access to local events that give guests access to all the Outer Banks has to offer. 

For more information on Club Seaside, including schedule and contact information, please visit www.OuterBanksVacations.com/ClubSeaside.htm.   

About Seaside Vacations:

Founded in Kitty Hawk, North Carolina in 1990, Seaside Vacations is a full-service vacation rental management company representing homes from Corolla to Nags Head.

Seaside Vacations offers a complete selection of Outer Banks vacation rentals. Guests can choose from 1 – 14-bedroom private vacation rental homes, condominiums, townhomes and villas.   Explore properties in Duck and Corolla as well as numerous vacation rentals in Southern Shores, Kitty Hawk, Kill Devil Hills and Nags Head.

 

For more information on Seaside Vacations and their wide selection of vacation rentals, visit www.OuterBanksVacations.com or call one a Vacation Specialist at 866.936.4659.

Pending Home Sales Continue to Rise

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There was some good news for housing this morning. The National Association of Realtors’ Pending Home Sales Index rose 0.1% in May. On a year-over-year basis, the index was up 6.7% in May.

It was the first four-month run-up in in the index since October 2004. 

The index is based on sales contracts on existing homes. The NAR reports on sales of existing homes once the sales close, usually six to eight weeks later.