New Home Sales Rise More Than Expected in October

Posted on November 25, 2009 by Gordon Jones

Data released Wednesday, November 25, 2009 shows that sales of newly built single-family homes rose in October more than expected; it’s the highest level of new home sales in a year.

The Commerce Department announced that sales jumped 6.2% to a 430,000 annual pace, the highest since September 2008.

Analysts were expecting a rise to a 410,000 annual pace. The increase has pushed the supply of new homes on the market last month down to 239,000 units, the lowest since May 1971. This represents a 6.7 months’ supply at the current sales rate.

October Existing Home Sales Continue the Climb

Posted on November 23, 2009 by Gordon Jones

Existing home sales in October are up a record 10.1%, according to data released today. Thanks in large part to buyers getting in at the last minute to take advantage of the first-time home buyers’ credit before it was set to expire at the end of November.

Sales are up 23.5% since their lows in October 2008, which also is a record for year-over-year jump, according to the National Association of Realtors.

It seems the sales are heavily influenced by the governments incentives, so it’s hard to tell if this increase represents a bottoming out of the housing market, and now that the home buyers’ credit has been extended to April, this will remain unclear.

The median sales price of an existing home in October was $173,100, down 7.1% from October 2008. That’s the smallest drop in median home price in more than a year.

Existing Home Sale Growth in Third Quarter

Posted on November 20, 2009 by Gordon Jones

Most states are reporting an increase in existing homes sales for the third quarter of 2009. Nationwide, the average number of existing home sales increased 11.4% this month.

Lawrence Yun, NAR chief economist, said the tax credit is a significant factor. “We can’t underestimate just how powerful a catalyst the first-time home buyer tax credit has been for the housing sector,” he said. “It’s given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions. The buying conditions this year are the most favorable on record dating back to 1970, but the tax credit is allowing buyers to set aside any reservations about waiting for a better deal.”

Here is a breakdown by region of existing home sales……

Northeast
Regionally, existing-home sales in the Northeast surged 16.7% in the third quarter to a pace of 930,000 units and are 6.9% higher than a year ago. The median existing single-family home price in the Northeast declined 9.4% to $244,500 in the third quarter from the same quarter in 2008. The best price gain in the region was in Buffalo-Niagara Falls, N.Y., where the median price of $119,700 rose 4.8% from the third quarter of 2008; followed by Manchester-Nashua, N.H., at $237,600, up 2.6%; and the Pittsburgh area, where the median price rose 1.5 percent to $124,600.

Midwest
In the Midwest, existing-home sales jumped 13.2% in the third quarter to a pace of 1.20 million and are 5.2% above a year ago. The median existing single-family home price in the Midwest was down 5.5% to $150,200 in the third quarter from the same period in 2008. After Davenport-Moline-Rock Island, the next strongest metro price increase in the region was in Cedar Rapids, Iowa, where the median price of $145,700 was 7.6% higher than a year ago; followed by Bismarck, N.D., at $157,200, up 7.5%; and Ft. Wayne, Ind., where the median price rose 6.9 percent to $102,500.

South
In the South, existing-home sales rose 11.3% in the third quarter to an annual rate of 1.97 million and are 5.9% higher than the third quarter of 2008. The median existing single-family home price in the South was $160,000 in the third quarter, down 7.9% from a year earlier. After Cumberland and Oklahoma City, the next strongest price increase in the region was in Shreveport-Bossier City, La., at $152,300, up 8.6% from the third quarter of 2008; Jackson, Miss., at $141,200, up 4.6%; and Durham, N.C., where the median price rose 3.6% to $184,300.

West
Existing-home sales in the West increased 5.6% in the third quarter to an annual rate of 1.19 million and are 4.6% above a year ago. The median existing single-family home price in the West was $224,000 in the third quarter, which is 16.4% below the third quarter of 2008. The best metro price performance in the West was in Yakima, Wash., where the median price of $158,400 rose 2.7% from a year earlier; the Denver-Aurora area at $229,100, up 1.8%; and the Kennewick-Richland-Pasco area of Washington, where the median price rose 0.7% to $172,200.

North Carolina vs. California Economic Comparison

Posted on November 20, 2009 by Gordon Jones

The enitre world if feeling the economic crunch, and it is well-known that California is in a dire economic position, but how does North Carolina compare? Pew Charitable Trust conducted a comparison between California and North Carolina:

• Change in tax revenue
N.C., -7.6%; California, -16.2%;

• Size of budget gap
N.C., 21.9%; California, 49.3%;

• Change in jobless rate
N.C., up 5 percentage points; California, up 4.6:

• Foreclosure rate
N.C., 0.65% California, 2.02%;

• Fiscal management grade
N.C., B-; California, D+

Other states with high misery scores were Arizona and Rhode Island, both scoring a 28, Michigan , 27; and Florida, 25.

States’ revenue data was from Q1 2008 to Q1 2009; budget gap data, is for fiscal 2010 through July; unemployment, Q2 2008 to Q2, 2009; and foreclosure data, Q1, 2009

Foreclosures Decreasing

Posted on November 19, 2009 by Gordon Jones

The amount of homes that are going into foreclosure has significantly decreased in October. This will be the third month of decrease in a row for the number of foreclosure in America.

The number of foreclosures has dropped 3% from September. Government Programs have helped to relieve the amount of homes that are going into foreclosure. For example, lenders are currently putting foreclosures on hold to wait and which borrowers will qualify for the Federal Loan Modification program. Experts remain hopeful that the national average will continue decreasing over the upcoming months.

Good News for Real Estate in 2010

Posted on November 18, 2009 by Gordon Jones

Home sales have increased 15 percent to a whooping 5.7 million sales according to the National Association of Realtors. This cycle is expected to continue according to many experts. ”The key is stabilizing prices and preserving household wealth,” says Lawrence Yun, Chief Economist for the Association. Yun also predicts that the supply of homes will stabilize in six or seven months.

Tips to Maintain & Improve Credit Scores

Posted on November 18, 2009 by Gordon Jones

The economy is on shaky ground, and credit is tight; credit scores are crucial in today’s housing market. Here are 9 tips that will prove to be helpful in improving your credit score.

1. Review your current credit report for accuracy. Everyone is entitled to one free credit report per year from each of the three credit bureaus—Experian, Equifax, and TransUnion. Get a copy of your credit report and look at it for accuracy. First, make sure that the information in your file is about you and only you, not someone who has a similar name or a similar Social Security number. It is very common for your credit reports to have mistakes or incorrect information. At a minimum, make sure that the information you are being evaluated on is current and correct.

2. Repair credit report mistakes. If you find something on your credit report that is incorrect or missing, you should dispute the mistake by contacting the credit bureaus directly. All credit bureaus have their dispute procedures on their website. They are also required by law to investigate any disputed items and these investigations will usually be done within 30 days of your request.

3. Pay your bills on time. Sounds like a no-brainer, right? Payment history accounts for roughly 35% of your credit score. Paying bills on time is the most important thing to do. If you’re struggling to catch up, contact your creditors to work out a payment schedule.

4. Increase the length of your credit history. This accounts for about 15% of your score. Don’t cancel your old card or get a lot of new ones in a short time span because this can hurt your score.

5. Keep credit card balances low. It’s a good idea to keep the balances below 25% of your available credit. Even if you pay off your credit cards every month, a high average balance will impact your score. This accounts for about 30% of your credit score.

6. Keep new credit requests to a minimum. This accounts for 10% of your score. Every time a lender runs your credit, an inquiry is recorded. If you are trying to get a loan, don’t apply for new credit cards first.

7. Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.

8. Pay off debt rather than moving it around. The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

9. Beware credit-repair scams. By all means, don’t pay someone to wipe away the negative items in your file. If they don’t follow through, the damaging items will reappear in two or three months.

Home Buyer Tax Credit Extended

Posted on November 10, 2009 by Gordon Jones

The House of Representatives voted last Thursday to extend the first time homebuyer tax credit. The bill was approved with an overwhelming 403-12 margin in Congress. On Friday it was passed to the White House and enacted as law by president Obama.

Jim Gillespie, CEO of Coldwell Banker LLC, played a key role in the extension of this bill. Gillespie and many other leaders in the real estate industry have been activists for this cause. They have fought for almost a year now to have the bill extended, and in a email he sent out to Coldwell Banker associates he states,

“This is an historic moment for our industry as well as the culmination of more than a year’s worth of hard work and meetings with elected officials and policy makers. I want to personally thank all of you who participated in Coldwell Banker’s Legislative Week, which was the springboard for my meetings on Capitol Hill, as well as the numerous other legislative calls for action — I am both proud and appreciative of how so many of you made office visits, phone calls and e-mailed your elected officials. Combined with Realogy’s instrumental efforts on Capitol Hill, I know that our grass roots outreach to Congress and the Administration truly helped make a difference on this issue.”

The Senate was also commended by the National Association of Realtors for the extension. NAR estimates that the current tax credit aided about $22 billion in home sales.

Bill Details:

· Extends the present $8,000 tax credit for first-time home buyers through April 30, 2010.

· Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.

· If potential home buyers have a binding contract on or before that date, they will have until July 1 to close the transaction.

· Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples.

· The purchase price of the home cannot exceed $800,000.

· To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

Pending Home Sales Continue to Rise

Posted on November 9, 2009 by Gordon Jones

Pending Homes Sales have risen again; it is the eighth month in a row according to a report by the National Association of Realtors last week.

The Pending Home Sales Index rose 6.1% over last month. This is 21.2% higher that this number was in September 2008.

Experts are attributing much of the recent success to government programs that are making housing more affordable. “What we’re witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month,” Lawrence Yun, chief economist for the association said in a statement.