I've been reading a book called Succeed * How we reach our goals, by Heidi Grant Halvorson, in preparation for a new business year. And interestingly, there is a piece about her in the latest edition of the Costco Connection (yes, I do read that magazine, lol!).
I liked the interview questions as well as her answers, and thought I'd relay them here, for you.
This piece was about the secrets to setting and achieving your goals;
'What are your Patterns?'
Understanding how you look at things can be a big part of accomplishing your goals, and allows you to modify how you approach the type of challenge you're facing. In her book Succeed, Heidi explores these questions.
How do you think about the things your do?
~Concise thinkers view their behavior in terms of what they are doing, the
'nitty-gritty of getting from point A to point B"; abstract thinkers (think) in terms of why they are doing something. The different approaches work better for different types of goals.
Are you as smart as you're ever going to be?
~Some people believe that 'smartness' is something you are more or less born with, is largely genetic and stays pretty much constant throughout adulthood. Others believe that smartness develops over time through experience and learning, and that anyone can get more of it if they apply themselves. If you believe the latter, challenges aren't threatening, they'e opportunities. Mistakes don't mean you're stupid, they help you learn.
What motivates you: being good at something or getting better?
~The desire to be good, to show that you are smart, talented or capable or to outperform others, is known as performance orientation. For example, you'd want to get an A on a test.
~The desire to get better, to develop or enhance your skills and abilities, is mastery goal. You look at goals in terms of the progress you're making. Getting better is almost always preferable to being good when it comes to goal setting.
Are you promotion-or prevention-focused in terms of goals?
~Promotion-focused goals are about achievement and accomplishment. Prevention-focused goals can be thought about in terms of safety and avoiding danger-something you feel you ought to do. Promotion goals are about maximizing gains; prevention goals are about minimizing loss. You can choose the right strategies to approach your goal when you understand your focus.
Sunday, December 26, 2010
Could be an interesting time to buy!
| Median Price | Percent Change in Price from Prior Month | Percent Change in Price from Prior Year | Percent Change in Sales from Prior Month | Percent Change in Sales from Prior Year | |||
|
| Nov. 10 | Oct. 10 |
| Nov. 09 |
| Oct. 10 | Nov. 09 |
San Francisco Bay | $553,620 | -5.5% |
| -2.4% |
| -0.1% | -9.5% |
Wednesday, December 22, 2010
Existing-Home Sales Rise 5.6%
NAR: Existing-Home Sales Rise 5.6%
Existing-home sales got back on an upward path in November, resuming a growth trend since bottoming in July, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, rose 5.6 percent to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, but are 27.9 percent below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit.
Lawrence Yun, NAR chief economist, is hopeful for 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.
Yun added that home buyers are responding to improved affordability conditions. “The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970,” he said. “Therefore, the market is recovering, and we should trend up to a healthy, sustainable level in 2011.”
The national median existing-home price for all housing types was $170,600 in November, up 0.4 percent from November 2009. Distressed homes have been a fairly stable market share, accounting for 33 percent of sales in November; they were 34 percent in October and 33 percent in November 2009.
Foreclosures, which accounted for two-thirds of the distressed sales share, sold at a median discount of 15 percent in November, while short sales were discounted 10 percent in comparison with traditional home sales.
Inventory Drops
Total housing inventory at the end of November fell 4.0 percent to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace, down from a 10.5-month supply in October.
NAR President Ron Phipps said good buying opportunities will continue. “Traditionally there are far fewer buyers competing for properties at this time of the year, so serious buyers have a lot of opportunities during the winter months,” he said. “Buyers will enjoy favorable affordability conditions into the new year, although mortgage rates are expected to gradually rise as 2011 progresses.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.30 percent in November from a record low 4.23 percent in October; the rate was 4.88 percent in November 2009.
“In the short term, mortgage interest rates should hover just above recent record lows, while home prices have generally stabilized following declines from 2007 through 2009,” Yun said. “Although mortgage interest rates have ticked up in recent weeks, overall conditions remain extremely favorable for buyers who can obtain credit.”
A parallel NAR practitioner survey shows first-time buyers purchased 32 percent of homes in November, the same as in October, but are below a 51 percent share in November 2009 from the surge to beat the initial deadline for the first-time buyer tax credit.
Investors accounted for 19 percent of transactions in November, also unchanged from October, but are up from 12 percent in November 2009; the balance of sales were to repeat buyers. All-cash sales were at 31 percent in November, up from 29 percent in October and 19 percent a year ago. “The elevated level of all-cash transactions continues to reflect tight credit market conditions,” Yun said.
Single-Family Homes Sales Jump
Single-family home sales rose 6.7 percent to a seasonally adjusted annual rate of 4.15 million in November from 3.89 million in October, but are 27.3 percent below a surge to a 5.71 million cyclical peak in November 2009. The median existing single-family home price was $171,300 in November, which is 1.2 percent above a year ago.
Existing condominium and co-op sales declined 1.9 percent to a seasonally adjusted annual rate of 530,000 in November from 540,000 in October, and are 32.2 percent below the 782,000-unit tax credit rush one year ago. The median existing condo price was $165,300 in November, down 5.5 percent from November 2009. “At the current stage of the housing cycle, condos are offering better deals for bargain hunters,” Yun said.
Here's a look at how existing-home sales performed by region:
Northeast: Existing-home sales in the Northeast rose 2.7 percent to an annual pace of 770,000 in November but are 33.0 percent below the cyclical peak in November 2009. The median price in the Northeast was $242,500, which is 9.2 percent higher than a year ago.
Midwest: Existing-home sales in the Midwest increased 6.4 percent in November to a level of 1.00 million but are 35.1 percent below the year-ago surge. The median price in the Midwest was $138,900, down 1.1 percent from November 2009.
South: In the South, existing-home sales rose 2.9 percent to an annual pace of 1.76 million in November but are 26.1 percent below the tax credit surge in November 2009. The median price in the South was $148,000, down 2.6 percent from a year ago.
West: Existing-home sales in the West jumped 11.7 percent to an annual level of 1.15 million in November but are 19.0 percent below the sales peak in November 2009. The median price in the West was $212,500, up 0.4 percent from a year ago.
—NAR
Existing-home sales got back on an upward path in November, resuming a growth trend since bottoming in July, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, rose 5.6 percent to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, but are 27.9 percent below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit.
Lawrence Yun, NAR chief economist, is hopeful for 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.
Yun added that home buyers are responding to improved affordability conditions. “The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970,” he said. “Therefore, the market is recovering, and we should trend up to a healthy, sustainable level in 2011.”
The national median existing-home price for all housing types was $170,600 in November, up 0.4 percent from November 2009. Distressed homes have been a fairly stable market share, accounting for 33 percent of sales in November; they were 34 percent in October and 33 percent in November 2009.
Foreclosures, which accounted for two-thirds of the distressed sales share, sold at a median discount of 15 percent in November, while short sales were discounted 10 percent in comparison with traditional home sales.
Inventory Drops
Total housing inventory at the end of November fell 4.0 percent to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace, down from a 10.5-month supply in October.
NAR President Ron Phipps said good buying opportunities will continue. “Traditionally there are far fewer buyers competing for properties at this time of the year, so serious buyers have a lot of opportunities during the winter months,” he said. “Buyers will enjoy favorable affordability conditions into the new year, although mortgage rates are expected to gradually rise as 2011 progresses.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 4.30 percent in November from a record low 4.23 percent in October; the rate was 4.88 percent in November 2009.
“In the short term, mortgage interest rates should hover just above recent record lows, while home prices have generally stabilized following declines from 2007 through 2009,” Yun said. “Although mortgage interest rates have ticked up in recent weeks, overall conditions remain extremely favorable for buyers who can obtain credit.”
A parallel NAR practitioner survey shows first-time buyers purchased 32 percent of homes in November, the same as in October, but are below a 51 percent share in November 2009 from the surge to beat the initial deadline for the first-time buyer tax credit.
Investors accounted for 19 percent of transactions in November, also unchanged from October, but are up from 12 percent in November 2009; the balance of sales were to repeat buyers. All-cash sales were at 31 percent in November, up from 29 percent in October and 19 percent a year ago. “The elevated level of all-cash transactions continues to reflect tight credit market conditions,” Yun said.
Single-Family Homes Sales Jump
Single-family home sales rose 6.7 percent to a seasonally adjusted annual rate of 4.15 million in November from 3.89 million in October, but are 27.3 percent below a surge to a 5.71 million cyclical peak in November 2009. The median existing single-family home price was $171,300 in November, which is 1.2 percent above a year ago.
Existing condominium and co-op sales declined 1.9 percent to a seasonally adjusted annual rate of 530,000 in November from 540,000 in October, and are 32.2 percent below the 782,000-unit tax credit rush one year ago. The median existing condo price was $165,300 in November, down 5.5 percent from November 2009. “At the current stage of the housing cycle, condos are offering better deals for bargain hunters,” Yun said.
Here's a look at how existing-home sales performed by region:
Northeast: Existing-home sales in the Northeast rose 2.7 percent to an annual pace of 770,000 in November but are 33.0 percent below the cyclical peak in November 2009. The median price in the Northeast was $242,500, which is 9.2 percent higher than a year ago.
Midwest: Existing-home sales in the Midwest increased 6.4 percent in November to a level of 1.00 million but are 35.1 percent below the year-ago surge. The median price in the Midwest was $138,900, down 1.1 percent from November 2009.
South: In the South, existing-home sales rose 2.9 percent to an annual pace of 1.76 million in November but are 26.1 percent below the tax credit surge in November 2009. The median price in the South was $148,000, down 2.6 percent from a year ago.
West: Existing-home sales in the West jumped 11.7 percent to an annual level of 1.15 million in November but are 19.0 percent below the sales peak in November 2009. The median price in the West was $212,500, up 0.4 percent from a year ago.
—NAR
Thursday, December 16, 2010
Owners Recoup More with Exterior Home Projects
Owners Recoup More with Exterior Home Projects
As part of the 2010-11 Remodeling Cost vs. Value Report, Realtors® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time. “This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but also are among the least expensive improvements for a home,” said National Association of Realtors® President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “Since resale value can vary by region, it’s smart for home owners to work with a Realtor®through the remodeling and improvement process; they can provide insight into projects in their neighborhoods that will recoup the most when the owners are ready to sell.”
Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement remained the project that returned the most money, with an estimated 102.1 percent of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9 percent of costs. Both projects are small investments that cost little more than $1,200 each, on average. Realtors® identified these two replacements as projects that can significantly improve a home’s curb appeal.
“Curb appeal remains king – it’s the first thing potential buyers notice when looking for a home, and it also demonstrates pride of ownership,” said Phipps.
The 2010-11 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 13th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine.
Realtors® provided their insight into local markets and buyer home preferences within those markets. Overall, Realtors® estimated that home owners would recoup an average of 60 percent of their investment in 35 different improvement projects, down from an average of 63.8 percent last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions.
According to the report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70 percent of costs. Upscale fiber-cement siding replacement was judged by Realtors® the most cost effective among siding projects, recouping 80 percent of costs. Among the window replacement projects covered, upscale vinyl window replacements were expected to recoup the most, 72.6 percent upon resale. Another exterior project, a wood deck addition, tied with a minor kitchen remodel for the fourth most profitable project recouping an estimated 72.8 percent of costs.
The top interior projects for resale value included an attic bedroom and a basement remodel. Both add living space without extending the footprint of the house. An attic bedroom addition costs more than $51,000 and recoups an estimated 72.2 percent nationally upon resale; a basement remodel costs more than $64,000 and recoups an estimated 70 percent. Improvement projects that are expected to return the least are a midrange home office remodel, recouping an estimated 45.8 percent; a backup power generator, recouping 48.5 percent; and a sunroom addition, recouping 48.6 percent of costs.
Although most regions followed the national trends, the regions that consistently were estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.
The regions where Realtors® generally reported the lowest percentage of costs recouped were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and Middle Atlantic (New York and Pennsylvania).
“It’s important to remember that the resale value of a particular improvement project depends on several factors,” said Phipps. “Things such as the home’s overall condition, availability and condition of surrounding properties, location and the regional economic climate contribute to an estimated resale value. That’s why it is imperative to work with a Realtor®who can provide insight and guidance into local market conditions whether you’re buying, selling or improving a home.”
Results of the report are summarized in the January issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 80 cities covered by the report, visit www.costvsvalue.com.
Source: NAR
Wednesday, August 18, 2010
Cloudy Economic Outlook Weighs on San Francisco Housing Market
Cloudy Economic Outlook Weighs on San Francisco Housing Market
SAN FRANCISCO, CA, August 16, 2010 - Recent stock market declines and worries about the possibility of a double-dip recession affecting the housing market has caused some home buyers to delay purchasing homes in San Francisco, according to the latest Market Focus report published jointly by the Rosen Consulting Group (RCG) and the San Francisco Association of REALTORS®. The evidence can be found in the number of completed home sales for July which showed a year-over-year decline of 18 percent.
According to John Lee, president of the Association, "Concerns about the effect of the economy on home sales have been compounded by the slowdown in sales typically seen during the vacation months of June, July and August and the unusually cool weather we have been having in the Bay Area which may be discouraging buyers from looking for housing."
Despite the slowdown in recent sales, RCG believes that the accelerating pace of job growth, combined with a continued decline in interest rates fueled by the Federal Reserve’s purchase of treasury bonds, as well as tight housing inventory levels, should propel the San Francisco housing market forward in coming quarters.
But improvements to the housing market are becoming increasingly dependent on job creation, according to RCG. Anticipated increases in payrolls through the remainder of the year should help drive year-over-year home price appreciation and tighter market conditions into year-end 2010 it believes. And, although the market will be forced to take a few steps back during the fragile economic recovery, the overall underlying trend, RCG says, should remain positive.
Median Price Trend Remains Positive
Despite the decline in year-over-year completed home sale activity, the median single-family home sale price increased by 0.6% from July 2009 to $785,000 in July 2010. Of the 192 closed sales in July 2010, homes priced less than $700,000 accounted for 42% of completed sales, up from only 18% of all sales in July 2007, the peak of the last housing market cycle.
"While the sale of higher-priced homes has gained traction in recent months," says Lee, "moderately priced homes continue to make up a considerable portion of sale activity in San Francisco, especially in comparison to historical levels."
The number of single-family homes on the market increased in July 2010 and now stands at 685 active listings. As a result, based on the current monthly contract sale rate, the months of supply inventory rose slightly to 3.0 months from 2.7 months in July 2009. The heightened inventory level can be partially attributed to the rise in new home listings, which rose by 16% during this same period.
The median sale price for condominiums rose to $662,500 in July 2010, a 10.2% increase from July 2009. Despite a drop-off in completed sales, pending condominium sales increased by nearly 15% during the past year. Condominiums priced less than $500,000 accounted for 43% of all units under contract, which is a considerable increase from July 2007, when units in the same price segment accounted for only 16% of all contract sales.
Condominium inventory retreated by 1.8% in July 2010 from the previous year, with 1,063 condominium units on the market. At the current monthly pending sale rate, the months of supply inventory eased to 4.9 months in July 2010 from 5.7 months in July 2009.
For condominiums priced less than $500,000, the months of supply inventory rose slightly to 2.8 months from 2.5 months at the same time last year, while months of supply inventory for condos priced between $500,000 and $900,000 declined to 4.5 months from 5.1 months.
The slowdown in the sale of luxury condominiums priced greater than $900,000 resulted in an increase of the months of supply inventory to 6.3 months from 4.9 months last year.
Friday, July 23, 2010
Sales Slow But Remain Above Last Year
Sales Slow But Remain Above Last Year
With the scheduled closing deadline for the home buyer tax credits, existing-home sales slowed in June but remained at relatively elevated levels, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8 percent higher than the 4.89 million-unit pace in June 2009.
Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said. “Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.74 percent in June from 4.89 percent in May; the rate was 5.42 percent in June 2009.
The national median existing-home price for all housing types was $183,700 in June, which is 1.0 percent higher than a year ago. Distressed homes were at 32 percent of sales last month, compared with 31 percent in May; it was also 31 percent in June 2009.
NAR President Vicki Cox Golder said softer home sales expected this summer don’t tell the whole story. “Despite these market swings, total annual home sales are rising above 2009 and we’re looking for overall gains again this year as well as in 2011,” she said. “Conditions have become more balanced in much of the country, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value REALTORS® bring to buyers and sellers in this market.”
A parallel NAR practitioner survey shows first-time buyers purchased 43 percent of homes in June, down from 46 percent in May. Investors accounted for 13 percent of sales in June, little changed from 14 percent in May; the remaining purchases were by repeat buyers. All-cash sales were at 24 percent in June compared with 25 percent in May.
Total housing inventory at the end of June rose 2.5 percent to 3.99 million existing homes available for sale, which represents an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May.
“The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” Yun said. Raw unsold inventory remains 12.7 percent below the record of 4.58 million in July 2008.
Single-family home sales fell 5.6 percent to a seasonally adjusted annual rate of 4.70 million in June from a level of 4.98 million in May, but are 8.5 percent above the 4.33 million pace in June 2009. The median existing single-family home price was $184,200 in June, up 1.3 percent from a year ago.
Single-family median existing-home prices were higher in 10 out of 19 metropolitan statistical areas reported in June in comparison with June 2009. In addition, existing single-family home sales rose in 12 of the 19 areas from a year ago while two were unchanged.
Existing condominium and co-op sales slipped 1.5 percent to a seasonally adjusted annual rate of 670,000 in June from 680,000 in May, but are 20.5 percent higher than the 556,000-unit pace in June 2009. The median existing condo price was $180,100 in June, which is 1.4 percent below a year ago.
Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 960,000 in June and are 17.1 percent above June 2009. The median price in the Northeast was $244,300, down 1.2 percent from a year ago.
Existing-home sales in the Midwest dropped 7.5 percent in June to a pace of 1.23 million but are 11.8 percent higher than a year ago. The median price in the Midwest was $155,900, down 0.1 percent from June 2009.
In the South, existing-home sales fell 6.5 percent to an annual level of 2.01 million in June but are 11.0 percent above June 2009. The median price in the South was $163,600, unchanged from a year ago.
Existing-home sales in the West dropped 9.3 percent to an annual pace of 1.17 million in June but are 0.9 percent higher than a year ago. The median price in the West was $221,800, up 1.5 percent from June 2009.
Source: NAR
With the scheduled closing deadline for the home buyer tax credits, existing-home sales slowed in June but remained at relatively elevated levels, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8 percent higher than the 4.89 million-unit pace in June 2009.
Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said. “Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.74 percent in June from 4.89 percent in May; the rate was 5.42 percent in June 2009.
The national median existing-home price for all housing types was $183,700 in June, which is 1.0 percent higher than a year ago. Distressed homes were at 32 percent of sales last month, compared with 31 percent in May; it was also 31 percent in June 2009.
NAR President Vicki Cox Golder said softer home sales expected this summer don’t tell the whole story. “Despite these market swings, total annual home sales are rising above 2009 and we’re looking for overall gains again this year as well as in 2011,” she said. “Conditions have become more balanced in much of the country, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value REALTORS® bring to buyers and sellers in this market.”
A parallel NAR practitioner survey shows first-time buyers purchased 43 percent of homes in June, down from 46 percent in May. Investors accounted for 13 percent of sales in June, little changed from 14 percent in May; the remaining purchases were by repeat buyers. All-cash sales were at 24 percent in June compared with 25 percent in May.
Total housing inventory at the end of June rose 2.5 percent to 3.99 million existing homes available for sale, which represents an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May.
“The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” Yun said. Raw unsold inventory remains 12.7 percent below the record of 4.58 million in July 2008.
Single-family home sales fell 5.6 percent to a seasonally adjusted annual rate of 4.70 million in June from a level of 4.98 million in May, but are 8.5 percent above the 4.33 million pace in June 2009. The median existing single-family home price was $184,200 in June, up 1.3 percent from a year ago.
Single-family median existing-home prices were higher in 10 out of 19 metropolitan statistical areas reported in June in comparison with June 2009. In addition, existing single-family home sales rose in 12 of the 19 areas from a year ago while two were unchanged.
Existing condominium and co-op sales slipped 1.5 percent to a seasonally adjusted annual rate of 670,000 in June from 680,000 in May, but are 20.5 percent higher than the 556,000-unit pace in June 2009. The median existing condo price was $180,100 in June, which is 1.4 percent below a year ago.
Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 960,000 in June and are 17.1 percent above June 2009. The median price in the Northeast was $244,300, down 1.2 percent from a year ago.
Existing-home sales in the Midwest dropped 7.5 percent in June to a pace of 1.23 million but are 11.8 percent higher than a year ago. The median price in the Midwest was $155,900, down 0.1 percent from June 2009.
In the South, existing-home sales fell 6.5 percent to an annual level of 2.01 million in June but are 11.0 percent above June 2009. The median price in the South was $163,600, unchanged from a year ago.
Existing-home sales in the West dropped 9.3 percent to an annual pace of 1.17 million in June but are 0.9 percent higher than a year ago. The median price in the West was $221,800, up 1.5 percent from June 2009.
Source: NAR
Thursday, July 1, 2010
Three Things Condo Buyers Should Know
Three Things Condo Buyers Should Know
Now could be a great time for home buyers to find a great deal on a condominium.
Here are three things that potential buyers of condos should consider:
1. Is this condo likely to fall further in price? Part of the answer is in falling or rising local inventory – even if sales have picked up recently.
2. Is this a fair price? Condo prices are more volatile than single-family homes. One big consideration is whether buyers in this particular complex are likely to be able to qualify for a mortgage. If the complex has too many renters, for instance, the Federal Housing Administration won’t approve loans to buy units.
3. Is the condo association in good fiscal shape? Are they maintaining the grounds and the amenities as well as staying on top of needed structural improvements?
Source: Money Magazine, Beth Braverman (06/29/2010)
Now could be a great time for home buyers to find a great deal on a condominium.
Here are three things that potential buyers of condos should consider:
1. Is this condo likely to fall further in price? Part of the answer is in falling or rising local inventory – even if sales have picked up recently.
2. Is this a fair price? Condo prices are more volatile than single-family homes. One big consideration is whether buyers in this particular complex are likely to be able to qualify for a mortgage. If the complex has too many renters, for instance, the Federal Housing Administration won’t approve loans to buy units.
3. Is the condo association in good fiscal shape? Are they maintaining the grounds and the amenities as well as staying on top of needed structural improvements?
Source: Money Magazine, Beth Braverman (06/29/2010)
Friday, June 25, 2010
Monday, June 14, 2010
Real Estate Outlook: After the Credits
by Kenneth R. Harney
| The Federal Reserve's latest region-by-region analysis of the national economy, the so-called "Beige Book" released last week, has an important message for anyone interested in real estate: It's a gradual recovery out there, but it's for real and it should prove durable. The Fed's report, which is based on detailed assessments from 12 member banks spread around the country, noted that the home purchase tax credits have stimulated sales as they were intended to do. But what happens when they're gone? Most economists in the Federal Reserve System "think that low interest rates and fairly low prices will continue to make the (housing) market attractive for prospective buyers," says the report. Some dramatic pickups in local sales this spring were highlighted by the Fed -- the state of Maine, for instance, saw a 63 percent year over year jump in the latest month, Rhode Island sales were up by 26 percent and New York 20 percent. The Fed didn't mention them by name, but there are dozens of other metropolitan markets that have racked up hefty gains as well: hard-hit Miami saw house and condo sales jump 31 percent in April over the same month the year before. Baltimore sales jumped by 26 percent, Washington DC by 36 percent. Metropolitan Nashville, Tennessee, saw sales increase by 27 percent. Though most of these areas are still reporting either flat or slightly negative prices, a handful are beginning to see positive appreciation. San Francisco and San Diego both are looking at 5 percent appreciation, according to the IAS 360 housing price index released last week. Palm Beach, Florida prices are up 3 percent. And Orange County, California, prices up by 1.4 percent, according to the IAS index. Now, no one is predicting a break-out of big-time home price appreciation across the country anytime soon. But the IAS numbers suggest that home buyers and owners can at least be confident that we've reached or passed the bottom in most areas. Nationwide, the index found prices in April were up by almost one percent. Of course there are still some major roadblocks in the way of any full economic and housing market recovery. Tops on the list: the naggingly high and persistent unemployment numbers. Although the latest federal jobs report looked good at first glance -- a net 431,000 gain and a decline in the unemployment rate to 9.7 percent from 9.9 -- most of those came from temporary Census-taker hirings. So, as usual, the picture is complicated. But overall, we think the Federal Reserve probably has the outlook pegged about right. |
Monday, May 24, 2010
Expiration of Home Buyer Tax Credit Won't Dissuade Most from House Hunting
| Expiration of Home Buyer Tax Credit Won't Dissuade Most from House Hunting | ||
| The 2010 Home Buyer Tax Credit incentive program was credited with stimulating the real estate market. But the 2010 Prudential Real Estate Outlook Survey released April 28 by Prudential Real Estate and Relocation Services shows that most buyers will not be deterred from purchasing a home without the tax credits on the table. That's a good thing, considering the credits expired April 30. “The federal home buyer tax credits played a key role in increasing market activity," says James Mallozzi, chairman and CEO of Prudential Real Estate and Relocation Services. "However, it is part of a larger fundamental shift that most importantly includes low mortgage rates and falling home prices.” Consumers are certainly noticing that shift. Seventy percent of survey respondents said now is a "great" or "good" time to buy a home. And when asked whether the expiration of the home buyer tax credit would affect their decision to purchase a home, just 8 percent said it would make them much less interested in the prospect. The majority of respondents—65 percent—said it would have little or no effect on their interest in buying a house. The Prudential Real Estate Outlook Survey was administered from April 15-20, 2010, to 1,000 U.S. consumers with at least $35,000 in annual household income. Want more information? Read the full 2010 Prudential Real Estate Outlook Survey or view the supporting charts and graphs. |
Thursday, April 29, 2010
Fast Facts
Fast Facts
Calif. median home price: March 2010: $301,790 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 2010: Santa Barbara So. Coast $890,000(Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 2010: High Desert $122,970 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 2009: 64 percent (Source: C.A.R.)
Mortgage rates - week ending 4/22/10 30-yr. fixed: 5.07 Fees/points: 0.7% 15-yr. fixed: 4.39% Fees/points: 0.6% 1-yr. adjustable: 4.22% Fees/points: 0.5% (Source: Freddie Mac)
Calif. median home price: March 2010: $301,790 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region March 2010: Santa Barbara So. Coast $890,000(Source: C.A.R.)
Calif. lowest median home price by C.A.R. region March 2010: High Desert $122,970 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Fourth Quarter 2009: 64 percent (Source: C.A.R.)
Mortgage rates - week ending 4/22/10 30-yr. fixed: 5.07 Fees/points: 0.7% 15-yr. fixed: 4.39% Fees/points: 0.6% 1-yr. adjustable: 4.22% Fees/points: 0.5% (Source: Freddie Mac)
C.A.R. Green Tip of the Week: Confused about plastics?
Experts have reached a consensus and recommend consumers avoid these varieties of plastics--identified by a triangle and number on the bottom of most containers--for the following reasons:
Experts have reached a consensus and recommend consumers avoid these varieties of plastics--identified by a triangle and number on the bottom of most containers--for the following reasons:
- #3 Polyvinyl Chloride (PVC) commonly contains di-2-ehtylhexyl phthalate (DEHP), an endocrine disruptor and probable human carcinogen, as a softener.
- #6 Polystyrene (PS) may leach styrene, a possible endocrine disruptor and human carcinogen, into water and food.
- #7 Polycarbonate contains the hormone disruptor bisphenol-A, which can leach out as bottles age, are heated, or exposed to acidic solutions. Unfortunately, #7 is used in most baby bottles and five-gallon water jugs and in many reusable sports bottles.
The Consumer Confidence Index rose to 57.9 in April (1985=100) compared with 52.3 in March, the Conference Board reported yesterday. The Present Situation Index increased to 28.6 in April from 25.2 in March, and the Expectations Index improved to 77.4 from 70.4 last month, according to the report.
“Consumer confidence, which had rebounded in March, gained further ground in April. The Index now is at its highest reading in about a year and a half,” said Lynn Franco, director of The Conference Board Consumer Research Center. “Consumers’ concerns about current business and labor market conditions eased again. And, their outlook regarding business conditions and the labor market was also more positive than last month. Looking ahead, continued job growth will be key in sustaining positive momentum."
Consumers' assessment of current conditions was more positive in April than in March, with those claiming business conditions are "good" increasing to 9.1 percent in April compared with 8.5 percent in March, while those claiming conditions are "bad" decreasing to 40.2 percent in April compared with 42.1 percent in March. Consumers' appraisal of the job market also improved, according to the report.
Case Shiller: Home prices mixed in February
The 10-City and 20-City Composites tracked as part of the S&P/Case-Shiller Home Price Indices showed improvements in February. For the first time since December 2006, the annual rates of changes for the two Composites were positive, although 11 of the 20 metro areas experienced year-over-year declines. The 10-City Composite rose 1.4 percent in February compared with a year ago, and the 20-City Composite increased 0.6 percent compared with February 2009. Eighteen of the 20 metro areas and both Composites showed an improvement in February compared with January.
The 10-City and 20-City Composites tracked as part of the S&P/Case-Shiller Home Price Indices showed improvements in February. For the first time since December 2006, the annual rates of changes for the two Composites were positive, although 11 of the 20 metro areas experienced year-over-year declines. The 10-City Composite rose 1.4 percent in February compared with a year ago, and the 20-City Composite increased 0.6 percent compared with February 2009. Eighteen of the 20 metro areas and both Composites showed an improvement in February compared with January.
Friday, April 9, 2010
Good news for homeowners considering a Short Sale
WASHINGTON — The government launched a new effort Monday to speed up the time-consuming, often-frustrating process of selling your home if you owe more than it's worth.
The Obama administration will give $3,000 for moving expenses to homeowners who complete such a sale — known as a short sale — or agree to turn over the deed of the property to the lender. It's designed for homeowners who are in financial trouble but don't qualify for the administration's $75 billion mortgage modification program.
Owners will still lose their homes, but a short sale or deed in lieu of foreclosure doesn't hurt a borrower's credit score for as much time as a foreclosure.
For lenders, a home usually fetches more money in a short sale than a foreclosure. And the bank avoids expensive legal bills, cleanup fees and maintenance costs that follow a foreclosure.
"It's very traumatic and embarrassing and frustrating to go through a foreclosure," said Laurie Maggiano, policy director of the Treasury Department's homeownership preservation office. With a short sale, she said, "your financial issues are your own problem and not neighborhood conversation."
Falling home prices and lost jobs have forced many sellers into this position. For example, in Orange County short sales made up about 26 percent of the market in March, compared with 17 percent a year earlier, according to data complied by Altera Real Estate, a local brokerage.
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The expanded incentives will help accelerate short sales, said Mark Zandi, chief economist at Moody's Analytics. He expects 350,000 homeowners nationwide to use the program through the end of 2012, more than double his earlier forecast.
A short sale appears to be the only way out for Brandee Chambers, 36, of Las Vegas. She got into trouble during the housing boom by taking out a risky loan against her home and using the money to buy two investment properties in Phoenix.
She later lost those two properties to foreclosure, and now she is trying to sell the home she lives in for $209,000, but the mortgage balance is $350,000.
Chambers, who owns two hair salons, says she would rather stay in her home, where she lives with her 14-year-old son. But she had no luck getting help with her loan. She said she's resigned to scaling back her lifestyle and renting out an apartment.
"I've had to accept a lot in the last year," she says.
For buyers, though, short sales can be a great opportunity.
Marco Cappelli, 49, a winemaker from Northern California, is planning to buy a short sale this month in the Sierra Nevada foothills. He and his wife are paying $214,000 for a property that had been listed at $270,000. The pair plan to fix it up, install a hot tub and rent it out to vacationers.
Along with the financial incentives, the new government program makes another key change. Mortgage companies will have to set their minimum bid before the house is listed for sale. If the offer is above that, the lender must accept it.
That's a big change from current practice. Lenders generally don't calculate how much money they are willing to accept on a short sale until they have an offer in hand, causing long delays before the sale is approved.
The new program "will give us a degree of efficiency that we have not had in the past," said Matt Vernon, Bank of America's executive in charge of short sales and foreclosed properties.
Under the new process, buyers who submit an offer to purchase a home in a short sale should get a response within two weeks, as opposed to months. If that happens as planned, it would be a big improvement. Real estate agents across the country have complained that lenders are often difficult to reach, sometimes only communicating by e-mail and infrequently at that.
"You're one of 400 properties on a screen," said Dave Bauer, a real estate agent in Danville.
Some real estate agents who specialize in short sales are optimistic. "It could be the first government program that actually helps Las Vegas," said Steve Hawks, a real estate agent there who specializes in short sales. Most borrowers in Las Vegas, he said, owe so much more on their mortgages than their properties are worth they can't qualify for a loan modification.
The Treasury Department outlined the plan in November, but doubled the original $1,500 in relocation money after realizing that many homeowners need more cash to move out. That's because landlords usually want large deposits from people whose credit records have gone sour after missing mortgage payments.
However, there are plenty of restrictions. To qualify, the home needs to be a borrower's primary residence. Homeowners either have to be behind on their mortgages or on the verge of becoming delinquent.
Currently, the program is not available for mortgages owned or guaranteed by mortgage finance companies Fannie Mae and Freddie Mac, though the two government-controlled companies will soon follow suit, said the Treasury's Maggiano.
Fed: Low Rates Likely Through 2010
Fed: Low Rates Likely Through 2010
Interest rates are likely to remain low into 2011, Federal Reserve policymakers hinted this week in at least two presentations. These indications came one week after the Fed shut down its program to buy mortgage-backed securities, which had kept rates at or near record lows in recent months.
In a speech Thursday, Fed Governor Daniel Tarullo said, "The relatively modest pace of recovery, the continued high rate of unemployment, subdued inflation trends, and well-anchored inflation expectations together suggest that the need for highly accommodative monetary policies will not diminish soon.”
Likewise, Donald Kohn, Fed vice chairman in a speech in San Francisco, said the Fed would raise rates, “in due course,” but he also noted that low rates "help offset the lingering restraining effects on economic activity and prices."
So far, rates have risen modestly, but analysts speculate they will likely become much more volatile down the road.
“It’s an uncertain type of market,” says Keith Gumbinger of HSH.com.
Michael Fratantoni, vice president of research and economics for the Mortgage Bankers Association, predicts that the Fed will have created a situation where there are days or weeks of low-rate opportunities, and other days and weeks when rates rise significantly.
Interest rates are likely to remain low into 2011, Federal Reserve policymakers hinted this week in at least two presentations. These indications came one week after the Fed shut down its program to buy mortgage-backed securities, which had kept rates at or near record lows in recent months.
In a speech Thursday, Fed Governor Daniel Tarullo said, "The relatively modest pace of recovery, the continued high rate of unemployment, subdued inflation trends, and well-anchored inflation expectations together suggest that the need for highly accommodative monetary policies will not diminish soon.”
Likewise, Donald Kohn, Fed vice chairman in a speech in San Francisco, said the Fed would raise rates, “in due course,” but he also noted that low rates "help offset the lingering restraining effects on economic activity and prices."
So far, rates have risen modestly, but analysts speculate they will likely become much more volatile down the road.
“It’s an uncertain type of market,” says Keith Gumbinger of HSH.com.
Michael Fratantoni, vice president of research and economics for the Mortgage Bankers Association, predicts that the Fed will have created a situation where there are days or weeks of low-rate opportunities, and other days and weeks when rates rise significantly.
Tuesday, April 6, 2010
The 2010 New Home Credit and First-Time Buyer Credit begins May 1, 2010.
General Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes.
These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.
The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. We will allocate the tax credits on a first-come, first-served basis.
Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.
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