Existing Home Sales Creep Up - Prices Fall
According to the latest data from the National Association of Realtors, existing-home sales continued to recover last following the trend started in October. However, home values continued to fall and were 3.1% lower than the same time one year earlier.
Thursday, March 29, 2007
Monday, March 26, 2007
TOP-TEN SMALL TOWNS OFFER AFFORDABILITY, JOBS
Cities such as New York, San Francisco and Los Angeles might be great places to
jump-start a career, but their high cost of living can break the bank for many grads and young families. Some of the best places to live and work, however, may be smaller so-called flyover cities. Here's a top-ten list of affordable small towns where the cost of living and unemployment are low, and the number of jobs is growing steadily. Topping the list? Fayetteville-Springdale-Rogers, Arkansas-Missouri. Also on the list are: Idaho Falls, Idaho; Logan, Utah; Auburn-Opelika, Alabama; Iowa City, Iowa; Dubuque, Iowa; Pensacola-Ferry Pass-Brent, Florida; Blacksburg-Christiansburg-Radford, Virginia; Huntsville, Alabama; Fargo, North Dakota. (Source: MSNRealEstate)
jump-start a career, but their high cost of living can break the bank for many grads and young families. Some of the best places to live and work, however, may be smaller so-called flyover cities. Here's a top-ten list of affordable small towns where the cost of living and unemployment are low, and the number of jobs is growing steadily. Topping the list? Fayetteville-Springdale-Rogers, Arkansas-Missouri. Also on the list are: Idaho Falls, Idaho; Logan, Utah; Auburn-Opelika, Alabama; Iowa City, Iowa; Dubuque, Iowa; Pensacola-Ferry Pass-Brent, Florida; Blacksburg-Christiansburg-Radford, Virginia; Huntsville, Alabama; Fargo, North Dakota. (Source: MSNRealEstate)
Wednesday, March 21, 2007
Market Watch
WASHINGTON, D.C. (MCT) - A recovery in the nation's housing market is "likely" this year, though problems in the subprime lending marketplace and unusual weather have posed challenges in assessing conditions, according to a Tuesday forecast from the National Association of Realtors.
Total sales this year will be "fairly close" to the prior year because "last year started high and ended low," said David Lereah, NAR's chief economist, in a statement.
Existing-home sales for 2007 are projected at 6.42 million, improving to 6.66 million in 2008. These figures compare with a total of 6.48 million existing homes sold last year.
"Although existing-home sales will be marginally reduced due to subprime lending restrictions, they should be gradually rising this year and next," Lereah said.
Lereah said winter storms last month, the coldest February since 1979, "brought markets to a halt" in much of the country, adding that sales should be dragged down in March. There may not be an upturn in closed transactions before May 25, when NAR is scheduled to report sales for April.
"Lending problems in our nation's subprime marketplace are building, which could inhibit future housing activity and further dampen our forecast," Lereah said. "Even so, these problems are likely to be contained and not spill over into the prime mortgage market."
There will be "some additional pain" in the new-home market, though existing-home sales are expected to "slowly improve" from a cyclical low last fall, Lereah said. NAR now forecasts new-home sales at 950,000 in 2007, followed by 981,000 next year. A total of 1.06 million new homes were sold in 2006.
The national median existing-home price is projected to rise 1.2 percent to $224,500 this year, higher than the 1 percent gain seen in 2006, according to NAR.
The median new-home price should grow 1.7 percent to $249,600 in 2007, following on a 1.9 percent increase last year, according to NAR.
As for 2008, NAR expects existing-home prices to rise 3.1 percent and new-home prices to grow 3 percent.
Total sales this year will be "fairly close" to the prior year because "last year started high and ended low," said David Lereah, NAR's chief economist, in a statement.
Existing-home sales for 2007 are projected at 6.42 million, improving to 6.66 million in 2008. These figures compare with a total of 6.48 million existing homes sold last year.
"Although existing-home sales will be marginally reduced due to subprime lending restrictions, they should be gradually rising this year and next," Lereah said.
Lereah said winter storms last month, the coldest February since 1979, "brought markets to a halt" in much of the country, adding that sales should be dragged down in March. There may not be an upturn in closed transactions before May 25, when NAR is scheduled to report sales for April.
"Lending problems in our nation's subprime marketplace are building, which could inhibit future housing activity and further dampen our forecast," Lereah said. "Even so, these problems are likely to be contained and not spill over into the prime mortgage market."
There will be "some additional pain" in the new-home market, though existing-home sales are expected to "slowly improve" from a cyclical low last fall, Lereah said. NAR now forecasts new-home sales at 950,000 in 2007, followed by 981,000 next year. A total of 1.06 million new homes were sold in 2006.
The national median existing-home price is projected to rise 1.2 percent to $224,500 this year, higher than the 1 percent gain seen in 2006, according to NAR.
The median new-home price should grow 1.7 percent to $249,600 in 2007, following on a 1.9 percent increase last year, according to NAR.
As for 2008, NAR expects existing-home prices to rise 3.1 percent and new-home prices to grow 3 percent.
Thursday, March 15, 2007
Top 7 Reasons to Use a Buyer's Agent When Purchasing Your Home
Purchasing a home is a big step, and a big decision. The average person spends around 1/3 of their income on their home. The home that you choose has a big impact on your life, and can have a big impact on your finances, as well. It always surprises me when Buyers attempt to "go at it alone" because of the possibility of mistakes. A good Buyer's Agent is invaluable to a Buyer, and can be the difference between a wonderful transaction, and a nightmare.
1) Full Access to the MLS
The Multiple Listing Service (MLS) is a powerful tool that only Realtors have access to. When listing agents market a home for sale, they typically allow any Realtor to present the home to potential buyers, and to present contracts for purchase. The MLS is a database of all homes listed by Realtors, and represents roughly 99% of the homes for sale in any given market. As technology advances, so does the MLS. It has evolved into an extremely powerful search engine that allows your buyer's agent to enter in search criteria, and returns only homes that match those specific parameters. Buyers can find a lot of this information online through IDX feeds available on many websites, but this information is a "watered down" version of the MLS because the IDX search engines aren't quite as powerful, and don't return as detailed profiles as the MLS.
2) Maximize Your Time
While driving neighborhoods is an excellent idea to help you decide which locations you prefer, it's not a very efficient way to find your new home. Gas is expensive, and your time is valuable. Your Buyer's Agent will listen to your needs, make fantastic suggestions based on your likes & dislikes, and provide you with a list of homes that ALL match your wants & needs. Your Buyer's Agent has helped MANY new homebuyers through MANY purchases, and will help you better organize your search & decision making process – saving you valuable time.
3) Representation
Listing Agents enter into legally binding agreements that require them to ALWAYS act in the best interest of the seller. They are the seller's "coach" and will make sure that their clients' best interests are looked after. Luckily, your Buyer's Agent is there to make sure YOUR best interests are accounted for. With your expert Buyer's Agent in your corner, you can rest assured that you're on, at least, even ground with the home seller. A football team would be at a pretty significant disadvantage without a coach – just as you would be without a Buyer's Agent.
4) Negotiating Power
The MLS maintains a record of, not only all homes listed by Realtors in a given market, but also the sales price of those homes. Your Buyer's Agent will run a Comparative Market Analysis (CMA) to determine a prospective home's Fair Market Value (FMV). In simpler terms, your Realtor will look at similar homes in the same neighborhood that have sold recently. This way, you will know whether or not the seller has their home priced fairly. If the home is priced over Fair Market Value, your Buyer's Agent can present your "under asking price" offer with plenty of firepower – and a greater chance that the offer will be accepted.
5) Experience
The average person buys 3-5 homes in their lifetime. A good Buyer's Agent will assist in 3-5 home purchases every month. What might seem complicated and intimidating to you is fairly common and familiar to your Realtor. Your Buyer's Agent will know what to expect, and will know when to alert you if anything out of the ordinary occurs.
6) Industry Contacts
It takes a lot of people to close a real estate transaction – Buyer's Agent, Listing Agent, Loan Officer, Inspector, Appraiser, Insurance Agent, General Contractors, and sometimes more! A good agent will come with a strong closing team that has performed in the past, and will continue to perform. A transaction is only as strong as its weakest link – with your strong Buyer's Agent & their closing team, you can rest assured that you will have plenty of support.
7) Piece of Mind
If you are like most people, your home is the largest purchase you will ever make. The average person spends around 1/3 of their total monthly income on their home. This is a big decision and you don't want to go at it alone. When you use a trusted Buyer's Agent, you know that your best interests are accounted for, and that you can feel confident in your purchase.
Purchasing a home can be a fun and exciting process. However, the home buying process can be intimidating, and mistakes are possible. A Realtor who specializes in working with Buyers can help alleviate the fears & possibilities for mistakes. Make sure and use a Buyer's Agent on any real estate transaction, and you will help ensure that you are making the right decisions.
1) Full Access to the MLS
The Multiple Listing Service (MLS) is a powerful tool that only Realtors have access to. When listing agents market a home for sale, they typically allow any Realtor to present the home to potential buyers, and to present contracts for purchase. The MLS is a database of all homes listed by Realtors, and represents roughly 99% of the homes for sale in any given market. As technology advances, so does the MLS. It has evolved into an extremely powerful search engine that allows your buyer's agent to enter in search criteria, and returns only homes that match those specific parameters. Buyers can find a lot of this information online through IDX feeds available on many websites, but this information is a "watered down" version of the MLS because the IDX search engines aren't quite as powerful, and don't return as detailed profiles as the MLS.
2) Maximize Your Time
While driving neighborhoods is an excellent idea to help you decide which locations you prefer, it's not a very efficient way to find your new home. Gas is expensive, and your time is valuable. Your Buyer's Agent will listen to your needs, make fantastic suggestions based on your likes & dislikes, and provide you with a list of homes that ALL match your wants & needs. Your Buyer's Agent has helped MANY new homebuyers through MANY purchases, and will help you better organize your search & decision making process – saving you valuable time.
3) Representation
Listing Agents enter into legally binding agreements that require them to ALWAYS act in the best interest of the seller. They are the seller's "coach" and will make sure that their clients' best interests are looked after. Luckily, your Buyer's Agent is there to make sure YOUR best interests are accounted for. With your expert Buyer's Agent in your corner, you can rest assured that you're on, at least, even ground with the home seller. A football team would be at a pretty significant disadvantage without a coach – just as you would be without a Buyer's Agent.
4) Negotiating Power
The MLS maintains a record of, not only all homes listed by Realtors in a given market, but also the sales price of those homes. Your Buyer's Agent will run a Comparative Market Analysis (CMA) to determine a prospective home's Fair Market Value (FMV). In simpler terms, your Realtor will look at similar homes in the same neighborhood that have sold recently. This way, you will know whether or not the seller has their home priced fairly. If the home is priced over Fair Market Value, your Buyer's Agent can present your "under asking price" offer with plenty of firepower – and a greater chance that the offer will be accepted.
5) Experience
The average person buys 3-5 homes in their lifetime. A good Buyer's Agent will assist in 3-5 home purchases every month. What might seem complicated and intimidating to you is fairly common and familiar to your Realtor. Your Buyer's Agent will know what to expect, and will know when to alert you if anything out of the ordinary occurs.
6) Industry Contacts
It takes a lot of people to close a real estate transaction – Buyer's Agent, Listing Agent, Loan Officer, Inspector, Appraiser, Insurance Agent, General Contractors, and sometimes more! A good agent will come with a strong closing team that has performed in the past, and will continue to perform. A transaction is only as strong as its weakest link – with your strong Buyer's Agent & their closing team, you can rest assured that you will have plenty of support.
7) Piece of Mind
If you are like most people, your home is the largest purchase you will ever make. The average person spends around 1/3 of their total monthly income on their home. This is a big decision and you don't want to go at it alone. When you use a trusted Buyer's Agent, you know that your best interests are accounted for, and that you can feel confident in your purchase.
Purchasing a home can be a fun and exciting process. However, the home buying process can be intimidating, and mistakes are possible. A Realtor who specializes in working with Buyers can help alleviate the fears & possibilities for mistakes. Make sure and use a Buyer's Agent on any real estate transaction, and you will help ensure that you are making the right decisions.
Tuesday, March 13, 2007
Nation: Mortgage Applications Hit Two-Month High
With interest rates falling, the number of mortgage applications rose 7.3 percent on a seasonally adjusted basis in the week ending March 2. Application volumes last week rose about 16 percent from the same week a year ago, reported by the Mortgage Bankers Association. The number of applications for loans to buy homes rose 1 percent on a week-to-week basis and about 2 percent from a year ago. Although foreclosure rates are driving some lenders out of business, applications for loans to refinance existing mortgages increased 15 percent to the highest level seen in 12 weeks. Refinancing loans were up about 38 percent compared with this time last year. the average rate for 30-year fixed-rate loans dropped to 6.04 percent--the lowest rate in 11 weeks. The rate for 15-year fixed- averaged 5.73 percent, the lowest in 13 weeks. The Mortgage Bankers Association covers about half of all mortgages in the US.
Monday, March 05, 2007
St. Paul: West Side Happenings
A developer wants to add a a riverfront development of condos and shops to one of the most distinct and ethnically rich neighborhoods in St. Paul. The plans for The Bridges of St. Paul however are not without controversy. With points of contention including scale and financing, The Bridges is just part of the continuing development and revitalization taking hold in this historic neighborhood. Reservations are being taken for another development, the West Side Flats condo project. The condos will offer front-door access to Harriet Island Regional Park and views across Raspberry Island to the St. Paul skyline. Away from the riverfront is the renaissance of District Del Sol, an area in the heart of the West Side that includes restaurants, shops and the district's icon, El Burrito Mercado, a marketplace that draws shoppers from across the Twin Cities.
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