Market Update
The housing market continues its uneven and gradual recovery without the aid of the tax credit. Experts believe this will be the trend moving forward. Interest rates hit another record low but have started moving back up as the overall economy improves.
Despite a less-than-expected employment report, consumers seem to be feeling brighter about the future. While the Consumer Confidence Index about the Present Situation rose only slightly, the Expectation Index showed substantial improvement. As we enter into the holiday gift-buying season, consumers are expected to be out shopping and buying more gifts for under the tree this year. Reports indicate a 13-24% increase in retail sales from last year. Consumer spending accounts for about half of all economic activity in the US; as long as consumers are spending and using debt responsibly, this is a positive indicator for economic growth.
This march back up continues to provide excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates. Experts anticipate both the economy and the housing market will continue on a path to a complete recovery.
Home Sales
Home sales dropped slightly in October, compared with the previous month, despite a temporary moratorium on foreclosures, which have recently represented more than one third of sales activity. Sales were up 15% from July when the tax credit expiration caused a drop-off in sales. The most significant indicator of a market rebound, however, appears to be the October pending sales report. A 10.4% increase in pending sales, which measures homes under contract, signals stronger home sales activity in the coming months as the homes under contract close.
Home Price
Home prices have shown considerable stability when compared with the previous several years. October’s median home price declined slightly, down less than 1% from the previous month and year. A recent study shows an increased interest in smaller homes. Smaller homes often mean smaller price tags, depending on location. While the market currently provides many opportunities for buyers, sellers look forward to the general trending upward of home price as the market’s stability without government support grows deeper roots.
Inventory
There are fewer homes on the market. Total inventory fell to 3.86 million in October from 4 million in September. The month’s supply* of homes on the market fell to 10.5 months. While still at a relatively high level, months of inventory has shrunken substantially since July’s 12.5 months. As lending standards continue to loosen and return to historical norms, more people will be able to buy their first home, move up, or invest and take advantage of the abundant opportunities in the current market – including historically low interest rates, highly affordable prices, and an ample but shrinking selection of homes.
* Month’s supply of inventory measures how many months it will take to sell all the homes that are for sale, if no new homes come on the market and buyers continue to buy at the same pace or rate.
Affordability
Housing is at record affordability levels. Prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. The home price-to-income ratio, 13.5% in October, continues to remain well below the historical standard. Stabilizing home prices and rising interest rates are anticipated to begin drawing affordability back up toward more normal levels.
Source: National Association of Realtors - October housing data released November 23.
Interest Rates
Mortgage rates hit another record low of 4.17% on November 11 after which they rose to close to 4.4% for the remainder of the month. Historically low rates have contributed to real savings for buyers who will continue to realize those savings for as long as they own the home. As overall economic recovery gains traction, rates must rise to keep inflation in check. Industry economist Lawrence Yun anticipates rates to be between 5.4% and 6% by the end of 2011.
Type Rate
30 year fixed 4.46%
15 year fixed 3.81%
5/1-year ARM 3.25%
30 year average for a 30 year fixed rate mortgage 8.9%
Source: Freddie Mac, Rates as of December 2.
Topics For Home Owners, Buyers & Sellers
Prime Time to Buy
Homes Have Never Been More Affordable
For most individual home buyers, there are only a few factors that really matter:
• Can I afford this home?
• Is it a good investment?
• Does it meet my family’s needs?
So it’s a bit surprising that the most important housing statistic has gone largely unreported: homes have never been more affordable. Affordability, measured by the median mortgage payment on the current median-priced home ($171,000) as a percentage of the median household income ($62,141), is lower than it’s been in a generation. The chart below shows affordability at a record level, having significantly improved since the height of the recent housing boom in 2006.
For more detail, check out Keller Williams Realty’s 7 Reasons Why Now Is a Great Time to Buy a Home!
Sources: National Association of Realtors, KW Research
Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.
The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Monday, December 20, 2010
Monday, November 1, 2010
Total Market Overview for Transylvania County
This data is from August 2010 - October 2010 regarding real estate in Transylvania County. The top half shows what is active, sold and average days on the market. The bottom graph is for vacant land. If you want a copy emailed to you directly each month, contact us at (828)226-0090. Click on image to see a larger view.
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Friday, October 29, 2010
28th Annual Halloweenfest in Downtown Brevard
Halloween in Transylvania County. Always fun!
9-11 Proper Pot Apple / Pumpkin Bake-off
10-6 Street Festival
10:30 Junior Fiddle Music Competition
12-1:30 Great Pumpkin Roll Contest
2 Costume Parade
2:30-3:30 Trick or Treat
3-3:30 Pumpkin Carving Contest
5 Flight of the Vampire 5k Run
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
9-11 Proper Pot Apple / Pumpkin Bake-off
10-6 Street Festival
10:30 Junior Fiddle Music Competition
12-1:30 Great Pumpkin Roll Contest
2 Costume Parade
2:30-3:30 Trick or Treat
3-3:30 Pumpkin Carving Contest
5 Flight of the Vampire 5k Run
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Tuesday, October 26, 2010
Homebuilding Is Picking Up
Homebuilding Is Picking Up in Brevard, NC. See the article from the Transylvania Times.
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Monday, October 25, 2010
Transylvania Tailgate Market
Another beautiful day at the Transylvania Tailgate Market in Brevard.
This is a great local market that over the years, has grown to 90+ vendors. It's located extremely close to downtown. Vendors range from fresh, local, organic produce, locally produced goat cheese, locally grass fed beef, baked goods, coffee, breakfast burritos, clothing, honey, crafts, plants and much more. Days and hours are Tuesday 3pm to 7pm, Thursday and Saturday from 8 am to 1 pm. Go to Transylvania Tailgate to see more!
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Tuesday, October 12, 2010
This Month in Real Estate - October
Market Update
The housing market continues its slow recovery without the aid of the now expired tax credit. Sales are slower but growing, and prices remain on par with last year’s levels. Interest rates also hit a new historic low, a major factor in helping keep mortgage payments low, which is expected to spur sales.
The economy shone a bit brighter in September. It grew faster during the second quarter than expected, and companies continued to hire. Experts believe there is now less risk of a double-dip recession. Now, the Federal Reserve Board’s challenge is not if the economy will grow but how fast.
Experts anticipate both the economy and the housing market will continue their path on the way to a complete recovery. This march back up provides excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates.
Home sales began to rebound in August. This increase follows a large drop caused by the expiration of the Federal tax credit in July. Sales are expected to slowly rebound as the market finds its footing without leaning on the government for support. First-time buyers fell from 38% to 31% in August from July. Over the same time period, investors rose from 19% to 21%,
Overall home prices fell slightly in August compared to July, but major markets appear to be bucking trend as the Case-Shiller Index shows an increase of 3.2%.
Distressed properties accounted for a slightly larger proportion of sales in August compared to July. The discount in distressed properties helps explain the slight decline in August prices.
Total inventory came back below 4 million to 3.98 million in August, representing 11.6 months of inventory. While still at a relatively high level, months of inventory dropped by nearly a month in August from the 12.5 month’s supply in July.
Housing remains highly affordable, and prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. The ratio now stands at 14.9%, growing closer to the record of 13.6%.
Source: National Association of Realtors
Interest Rates
Mortgage rates once again set new record lows in early September and remained below 4.4% throughout the month. As economic activity gains momentum, rates will rise to keep inflation at an acceptable level.
Topics For Home Owners, Buyers & Sellers
Bonus For Buyers
For Owner Occupants that Buy Fannie Mae Foreclosures
Like a car dealership at the end of its model year, Fannie Mae is offering special incentives exclusively for owner occupants that purchase property from its sizable inventory of foreclosures, also known as HomePath properties.
Owner occupants that purchase a Fannie Mae HomePath property by December 31 will receive up to 3.5% toward closing costs and a home warranty. These incentives for foreclosures are unheard of – banks typically sell foreclosures “as-is” without incentives, warranties, or repairs. This could help buyers to view a HomePath property more like a traditional sale, not a foreclosure, during their search process.
Owners and investors can purchase HomePath properties for 3% down and no mortgage insurance. For homes that are not in tip-top shape, Fannie Mae also offers the HomePath Renovation financing, which works similarly to FHA’s 203(k) mortgage by allowing the cost of light renovation to be included in the mortgage. Furthermore, owner occupants get a 15-day “first dibs” on HomePath properties through the First Look program.
Fannie Mae is also offering agents an additional $1500 for representing owner occupants who purchase these properties, helping to compensate them for the extra paperwork and other potential obstacles that come along with foreclosure transactions.
Buyers should be sure to take a second look at Fannie Mae’s HomePath properties before settling on “the one.” It could mean not just a great deal but an excellent one.
To see Fannie Mae’s HomePath homes, check out HomePath.com
Options for Investors
Not only is it the perfect time to buy a home, but it’s also an excellent time to purchase an investment property. If you already own and are not interested in moving – or you can’t because of the 3-year occupancy requirement to keep your home buyer tax credit – but still want to take advantage of the market, investing can be a great way to do so.
In the current lending situation, lenders often require investor buyers to have six months reserves of mortgage payments and a 25% down payment. This stipulation keeps many would-be investors out of the market.
Here are some little known tips to help investors purchase, regardless of the tighter lending environment:
1.Investors can purchase a Fannie Mae HomePath investment for 3% down.
2.Any investor, not just veterans, can purchase a Veterans Affairs(VA) foreclosure with VA’s Vendee Financing for 5% down.
3.Investors purchasing a VA foreclosure with Vendee Financing can use 75% of anticipated rent to offset the monthly payment if the investor has experience managing rental properties.
Sources: The Wall Street Journal, Inman News, KW Research
The housing market continues its slow recovery without the aid of the now expired tax credit. Sales are slower but growing, and prices remain on par with last year’s levels. Interest rates also hit a new historic low, a major factor in helping keep mortgage payments low, which is expected to spur sales.
The economy shone a bit brighter in September. It grew faster during the second quarter than expected, and companies continued to hire. Experts believe there is now less risk of a double-dip recession. Now, the Federal Reserve Board’s challenge is not if the economy will grow but how fast.
Experts anticipate both the economy and the housing market will continue their path on the way to a complete recovery. This march back up provides excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates.
Home sales began to rebound in August. This increase follows a large drop caused by the expiration of the Federal tax credit in July. Sales are expected to slowly rebound as the market finds its footing without leaning on the government for support. First-time buyers fell from 38% to 31% in August from July. Over the same time period, investors rose from 19% to 21%,
Overall home prices fell slightly in August compared to July, but major markets appear to be bucking trend as the Case-Shiller Index shows an increase of 3.2%.
Distressed properties accounted for a slightly larger proportion of sales in August compared to July. The discount in distressed properties helps explain the slight decline in August prices.
Total inventory came back below 4 million to 3.98 million in August, representing 11.6 months of inventory. While still at a relatively high level, months of inventory dropped by nearly a month in August from the 12.5 month’s supply in July.
Housing remains highly affordable, and prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. The ratio now stands at 14.9%, growing closer to the record of 13.6%.
Source: National Association of Realtors
Interest Rates
Mortgage rates once again set new record lows in early September and remained below 4.4% throughout the month. As economic activity gains momentum, rates will rise to keep inflation at an acceptable level.
Topics For Home Owners, Buyers & Sellers
Bonus For Buyers
For Owner Occupants that Buy Fannie Mae Foreclosures
Like a car dealership at the end of its model year, Fannie Mae is offering special incentives exclusively for owner occupants that purchase property from its sizable inventory of foreclosures, also known as HomePath properties.
Owner occupants that purchase a Fannie Mae HomePath property by December 31 will receive up to 3.5% toward closing costs and a home warranty. These incentives for foreclosures are unheard of – banks typically sell foreclosures “as-is” without incentives, warranties, or repairs. This could help buyers to view a HomePath property more like a traditional sale, not a foreclosure, during their search process.
Owners and investors can purchase HomePath properties for 3% down and no mortgage insurance. For homes that are not in tip-top shape, Fannie Mae also offers the HomePath Renovation financing, which works similarly to FHA’s 203(k) mortgage by allowing the cost of light renovation to be included in the mortgage. Furthermore, owner occupants get a 15-day “first dibs” on HomePath properties through the First Look program.
Fannie Mae is also offering agents an additional $1500 for representing owner occupants who purchase these properties, helping to compensate them for the extra paperwork and other potential obstacles that come along with foreclosure transactions.
Buyers should be sure to take a second look at Fannie Mae’s HomePath properties before settling on “the one.” It could mean not just a great deal but an excellent one.
To see Fannie Mae’s HomePath homes, check out HomePath.com
Options for Investors
Not only is it the perfect time to buy a home, but it’s also an excellent time to purchase an investment property. If you already own and are not interested in moving – or you can’t because of the 3-year occupancy requirement to keep your home buyer tax credit – but still want to take advantage of the market, investing can be a great way to do so.
In the current lending situation, lenders often require investor buyers to have six months reserves of mortgage payments and a 25% down payment. This stipulation keeps many would-be investors out of the market.
Here are some little known tips to help investors purchase, regardless of the tighter lending environment:
1.Investors can purchase a Fannie Mae HomePath investment for 3% down.
2.Any investor, not just veterans, can purchase a Veterans Affairs(VA) foreclosure with VA’s Vendee Financing for 5% down.
3.Investors purchasing a VA foreclosure with Vendee Financing can use 75% of anticipated rent to offset the monthly payment if the investor has experience managing rental properties.
Sources: The Wall Street Journal, Inman News, KW Research
Thursday, October 7, 2010
Foreclosure proceedings come under fire
Mortgage industry heavyweights slow pace of properties entering REO pipeline
In response to the recent “robo-signing scandal,” JP Morgan Chase and Co., put 56,000 foreclosure filings on hold last week, following similar actions by Ally Bank (formerly GMAC Mortgage) in 23 states, including Illinois, Florida, New York and Ohio.
This temporary crackdown on the part of various states attorney generals is due to allegations that tens of thousands of foreclosure documents were essentially “rubber stamped” or signed without adequate review or scrutiny. Among the state officials who have initiated investigations, IllinoisAttorney General Lisa Madigan has demanded a meeting with JPMorgan Chase to address her concerns that the company violated the state's Consumer Fraud Act.
Vowing to hold banks accountable, Madigan said in a recent statement: “With JP Morgan now acknowledging possible abuses in preparing court documents, the impact on homeowners in our state and across the country could be great.”
Despite recent findings “that in some cases employees in our mortgage foreclosure operations may have signed affidavits about loan documents on the basis of file reviews done by other personnel – without the signer personally having reviewed those loan files,” Chase spokesman Tom Kelley, contends, “We believe the accuracy of the factual loan information contained in the affidavits was not affected by whether or not the signer had personal knowledge of the precise details.” He added that Chase has “begun to systematically re-examine documents we have filed in current foreclosure proceedings to verify that the affidavits and other documents meet the standard of personal knowledge or review where that is required.”
Chase has requested that the courts hold off on entering judgments in pending matters for a few weeks until their review process is completed.
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
In response to the recent “robo-signing scandal,” JP Morgan Chase and Co., put 56,000 foreclosure filings on hold last week, following similar actions by Ally Bank (formerly GMAC Mortgage) in 23 states, including Illinois, Florida, New York and Ohio.
This temporary crackdown on the part of various states attorney generals is due to allegations that tens of thousands of foreclosure documents were essentially “rubber stamped” or signed without adequate review or scrutiny. Among the state officials who have initiated investigations, IllinoisAttorney General Lisa Madigan has demanded a meeting with JPMorgan Chase to address her concerns that the company violated the state's Consumer Fraud Act.
Vowing to hold banks accountable, Madigan said in a recent statement: “With JP Morgan now acknowledging possible abuses in preparing court documents, the impact on homeowners in our state and across the country could be great.”
Despite recent findings “that in some cases employees in our mortgage foreclosure operations may have signed affidavits about loan documents on the basis of file reviews done by other personnel – without the signer personally having reviewed those loan files,” Chase spokesman Tom Kelley, contends, “We believe the accuracy of the factual loan information contained in the affidavits was not affected by whether or not the signer had personal knowledge of the precise details.” He added that Chase has “begun to systematically re-examine documents we have filed in current foreclosure proceedings to verify that the affidavits and other documents meet the standard of personal knowledge or review where that is required.”
Chase has requested that the courts hold off on entering judgments in pending matters for a few weeks until their review process is completed.
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Tuesday, September 28, 2010
Huge Price Reduction - Was $350,000 Now $300,000
Enjoy the breezes on the wrap-around porch while listening to the stream. While inside you will notice the beautiful hardwood floors throughout. Have the family over and sit at the unique dining table with all of them at the same time. Open kitchen, living room, laundry and master bedroom on main floor. Enjoy the fire in the cozy family room. Oversized 2 car garage. Fish in the pond across the street or swim at Big Cove Estate's pool.TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Just Listed - Retirement and Chickens
Click the Flyer to see it closer.TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Wednesday, September 15, 2010
Monday, September 13, 2010
Retire in Brevard, NC!
Move-in ready for retirement. Deer Track is a great neighborhood for residents 55 and older that is very close to downtown Brevard, shopping and grocery stores. This house has split bedroom design with open kitchen, dining room and living room in the middle. Full baths in both bedrooms. Laundry room is inside next to kitchen. There is a lot of storage in the garage. Get the sun on the back porch. Gorgeous lawn is taken care of by the HOA dues.
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Tuesday, August 31, 2010
What's happening in Transylvania County in September?
It's going to be a cool month!
- 2nd Annual Founders Day Fair - 4th - celebrating the founding families of Transylvania County. www.transylvaniaheritage.org
- Mountain Song Festival - 10th - 11th - Doc Watson and others hosted by Steep Canyon Rangers - www.mountainsongfestival.com
- Pisgah Mountain Bike Stage Race - 14th - 18th - "the richest cash purse stage race in America, $20,000!" www.blueridgeadventures.net
- Taste of Transylvania - 14th -supports Transylvania County Communities in Schools program. www.tasteoftransylvania.org
- Brevard's 4th Friday Gallery Walk - 24th - stores and galleries stay open late.
- and much more! Call us for more information
Friday, August 27, 2010
Price Reduction in Brevard!
Lovely ranch home on a peaceful acre in a country-like setting. 3 bedrooms plus another room used as an office. With the privacy and quiet this home offers, you won't believe you are only 1.7 miles from quaint downtown Brevard. Walk to the Brevard Music Center for a concert on a warm summer evening or just relax on the front porch and enjoy the serenity of the Blue Ridge Mountains. Great place to raise the kids, retire or have a summer home!TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Tuesday, August 24, 2010
Thursday, August 12, 2010
Friday, August 6, 2010
Thursday, July 22, 2010
Tuesday, July 13, 2010
Tuesday, June 22, 2010
Total Market Overview
The Total Market Overview for Asheville (Buncombe), Henderson County and Transylvania County will be out soon. This is a great tool for any buyer or seller in Western North Carolina.
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Thursday, June 10, 2010
Open House in Candler, NC
Come see a great cape cod in Big Cove Estates. Big Cove Estates has walking trails, swimming pool, fishing pond and more. Make this a must see on Saturday, June 12th from 2-5 pm.
TO SEARCH HOMES GO TO WWW.TEAMCROWDERONLINE.COM
Wednesday, June 2, 2010
Team Crowder's Best Buys
Go to www.TeamCrowderOnline to get more information on these homes and to search all of Western North Carolina!
Friday, May 14, 2010
RED Day 2010 in Brevard, NC - Push Play
What is Keller Williams RED Day?
RED (Renew, Energize and Donate) Day is a Keller Williams Realty service initiative dedicated to improving our local communities. We are asking all Keller Williams Realty associates in the US and Canada to donate their time on May 13, 2010 to renewing and energizing aspects of their local communities. Because of her constant commitment to the culture of our company, this day has been dedicated in honor of our Vice Chairman, Mo Anderson.
Our vision for this day is that all Keller Williams associates will actively engage in a coordinated effort to improve their local community. Activities may include rehabbing a house, cleaning up a local trail, providing food for the homeless, or any other service related activity needed in your community. This will be one of the single biggest events ever undertaken in the real estate industry.
Friday, April 30, 2010
Wednesday, April 7, 2010
Tuesday, April 6, 2010
Short Sales is coming to Brevard!
Steve Wilde of the Wilde Law Firm will be in Brevard April 27th. His practice soley involves short sales. He will be talking to Realtors about the 4 parts of a short sale:
- How to Market Short Sales
- How to get the Package Ready
- BPOs
- Negotiations and Closings
Everyone is welcome. The cost is Free. It will be from 1:00 to 3:00 at United Community Bank in Straus Park.
I heard this is an awesome learning experience!
TO SEARCH HOMES GO TO WWW.ALISHACROWDER.COM
Monday, March 15, 2010
This Month in Real Estate - March 2010
Commentary
As the market continues to show shoots of recovery, experts believe that the roots will continue to grow. In his annual letter to the shareholders of Berkshire Hathaway, Warren Buffett said, “Within a year or so, residential housing problems should largely be behind us.”
After a steep run-up in prices during the first half of the decade, home values have readjusted back to normalized levels. Fixed mortgage rates are sitting near record lows and the number of homes available for sale is providing home buyers with more options. Also encouraging are indications that the high end of the housing market could begin moving again as luxury financing becomes more readily available.
Despite high unemployment and looming foreclosures, experts maintain their expectations that the economy will grow in 2010, while the government carries on its search for solutions to help both troubled homeowners and the unemployed.
The Housing Market
Existing Home Sales
Existing home sales slowed in January. According to Lawrence Yun, NAR chief economist, this is mainly due to the lack of urgency with the extension and expansion of the first-time buyer tax credit in November. January sales of 5.05 million remain 12 percent above the 4.53 million-unit level last year.
Median Home Price
Existing-home price was $164,700 in January, 3.4 percent below December and unchanged from January 2009. Distressed homes, which accounted for 38 percent of sales last month, continue to skew prices downward as they typically are discounted in comparison with traditional homes.
Inventory
The supply of homes continued to shrink, falling 0.5 percent to 3.27 million, representing a 7.8-month supply at the current sales pace. Compared to a year ago, there are now 10 percent fewer homes on the market. This is the lowest level of competing homes on the market since March 2006.
Mortgage Rates
Mortgage rates edged above the 5 percent threshold during the week of February 25, but remained near historically low levels. As the Federal Reserve mortgage-backed securities purchase program is scheduled to run out at the end of March, the Fed has held the door open to extending it if the economy weakens.
Affordability
Affordability remains at record levels, supported by the lowest mortgage rates in decades, low home prices, as well as the first-time buyer tax credit. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 14.1 percent.
Sources: National Association of Realtors, Freddie Mac
Government Action
Jumbo Mortgages Begin to Thaw
The cost of jumbo loans, often used to purchase luxury homes, shot up during the financial crisis because lenders steered clear of anything that could be considered somewhat risky. Plus jumbo loans are too large for the government to support through the Federal Housing Administration, Fannie Mae, or Freddie Mac.
The good news: The jumbo loan markets are beginning to unfreeze and return to normal.
The difference between interest rates on conventional loans and jumbo loans has decreased from higher levels seen last year.
In some cases, the down payment requirements are easing as well, but they often still depend on the level of borrowing – the more the mortgage, the higher the down payment percentage. In New York, mortgage professionals report the following common down payments:
Borrowers will still need a good credit score, typically at least 700, evidence of high income, and a sizable bank account.
Sources: Los Angeles Times, Inman News
Topics For Buyers & Sellers
2009 Tax Tips
Tax time is coming up. Don’t forget about the following benefits in 2009 for homeowners. What’s deductable in itemized deductions for homeowners?
1. Mortgage Interest
2. Points - paid at closing if you purchased or possibly if you refinanced this year
3. Mortgage Insurance Premiums
4. Property Tax
5. Energy Efficiency Credits - see IRS Form 5695 for qualifying projects
6. Home Buyer Tax Credit - see IRS Form 5405 to claim your credit if you qualify
Contact me,
your local real estate expert,
for information about what's going on in our area.
For a more detailed report with additional graphs and government action, please see the This Month in Real Estate PowerPoint Report.
* $729,750 is the upper limit in the most expensive areas. Limits vary depending on median home prices in local areas. ** Based on the week of February 25, 2010. ***According to Bank of America’s Jeffrey Appel in Inman News.
TO SEARCH HOMES GO TO WWW.ALISHACROWDER.COM
As the market continues to show shoots of recovery, experts believe that the roots will continue to grow. In his annual letter to the shareholders of Berkshire Hathaway, Warren Buffett said, “Within a year or so, residential housing problems should largely be behind us.”
After a steep run-up in prices during the first half of the decade, home values have readjusted back to normalized levels. Fixed mortgage rates are sitting near record lows and the number of homes available for sale is providing home buyers with more options. Also encouraging are indications that the high end of the housing market could begin moving again as luxury financing becomes more readily available.
Despite high unemployment and looming foreclosures, experts maintain their expectations that the economy will grow in 2010, while the government carries on its search for solutions to help both troubled homeowners and the unemployed.
The Housing Market
Existing Home Sales
Existing home sales slowed in January. According to Lawrence Yun, NAR chief economist, this is mainly due to the lack of urgency with the extension and expansion of the first-time buyer tax credit in November. January sales of 5.05 million remain 12 percent above the 4.53 million-unit level last year.
Median Home Price
Existing-home price was $164,700 in January, 3.4 percent below December and unchanged from January 2009. Distressed homes, which accounted for 38 percent of sales last month, continue to skew prices downward as they typically are discounted in comparison with traditional homes.
Inventory
The supply of homes continued to shrink, falling 0.5 percent to 3.27 million, representing a 7.8-month supply at the current sales pace. Compared to a year ago, there are now 10 percent fewer homes on the market. This is the lowest level of competing homes on the market since March 2006.
Mortgage Rates
Mortgage rates edged above the 5 percent threshold during the week of February 25, but remained near historically low levels. As the Federal Reserve mortgage-backed securities purchase program is scheduled to run out at the end of March, the Fed has held the door open to extending it if the economy weakens.
Affordability
Affordability remains at record levels, supported by the lowest mortgage rates in decades, low home prices, as well as the first-time buyer tax credit. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 14.1 percent.
Sources: National Association of Realtors, Freddie Mac
Government Action
Jumbo Mortgages Begin to Thaw
The cost of jumbo loans, often used to purchase luxury homes, shot up during the financial crisis because lenders steered clear of anything that could be considered somewhat risky. Plus jumbo loans are too large for the government to support through the Federal Housing Administration, Fannie Mae, or Freddie Mac.
The good news: The jumbo loan markets are beginning to unfreeze and return to normal.
The difference between interest rates on conventional loans and jumbo loans has decreased from higher levels seen last year.
In some cases, the down payment requirements are easing as well, but they often still depend on the level of borrowing – the more the mortgage, the higher the down payment percentage. In New York, mortgage professionals report the following common down payments:
Borrowers will still need a good credit score, typically at least 700, evidence of high income, and a sizable bank account.
Sources: Los Angeles Times, Inman News
Topics For Buyers & Sellers
2009 Tax Tips
Tax time is coming up. Don’t forget about the following benefits in 2009 for homeowners. What’s deductable in itemized deductions for homeowners?
1. Mortgage Interest
2. Points - paid at closing if you purchased or possibly if you refinanced this year
3. Mortgage Insurance Premiums
4. Property Tax
5. Energy Efficiency Credits - see IRS Form 5695 for qualifying projects
6. Home Buyer Tax Credit - see IRS Form 5405 to claim your credit if you qualify
Contact me,
your local real estate expert,
for information about what's going on in our area.
For a more detailed report with additional graphs and government action, please see the This Month in Real Estate PowerPoint Report.
* $729,750 is the upper limit in the most expensive areas. Limits vary depending on median home prices in local areas. ** Based on the week of February 25, 2010. ***According to Bank of America’s Jeffrey Appel in Inman News.
TO SEARCH HOMES GO TO WWW.ALISHACROWDER.COM
Sunday, March 7, 2010
Tuesday, March 2, 2010
Total Market Overview for Transylvania County
Click the image to zoom in.
TO SEARCH HOMES GO TO WWW.ALISHACROWDER.COM
Tuesday, February 16, 2010
This Month in Real Estate - February 2010
Commentary
January began the new decade with indications that the economy is beginning to gain traction. Real GDP grew by 2.2 percent in the third quarter of 2009 and preliminary signals point to a continued positive trend for the following quarter. GDP is a measure of total products and services produced by a country and indicates the health of the country's economy.
A dip in home sales in December was due in large part to timing. First time buyers that would have liked to close in December but qualified for the tax credit bumped their timeline up in order to cash in. News of the credit’s extension reached many of them after their plans to close in December were set.
Interest rates are back below 5% and home prices are up compared to last year. The government continues to attempt to minimize the impact of troubled homeowners by continuing to improve its foreclosure prevention program and has also taken steps to help foreclosures buyers purchase faster.
Although the unemployment rate is expected to stay high as jobs increase modestly, experts expect the economy to continue to grow in 2010.
The Housing Market
Existing Home Sales
After a rising surge for three straight months, existing home sales slowed in December after first-time buyers rushed to meet the original November tax credit deadline and evidenced by first timers accounting for 51% of sales in November compared to 43% in December. “It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit,” said Lawrence Yun, NAR chief economist. December sales of 5.45 million remain 15 percent above the 4.74 million-unit level last year.
Median Home Price
Existing-home price was $178,300 in December, 1.5 percent higher than December 2008 and 8.2 percent above its low in January 2009. It was the first year-over-year gain in median price since August 2007, attributable to an increase in the number of mid- to upper-priced homes in the sales.
Inventory
The supply of homes continued to shrink, falling 6.6 percent to 3.29 million, representing a 7.2-month supply at the current sales pace. Compared to a year ago, there are now 11 percent fewer homes on the market. This is the lowest level of competing homes on the market since March 2006.
Mortgage Rates
Mortgage rates have moved back to less than 5 percent, which have been categorized by industry experts like Freddie Mac chief economist Frank Nothaft as “near a record low.” This move that may help boost home loan demand and lend support to the housing market recovery. On January 28, the average 30-year fixed-rate mortgage was 4.98 percent.
Affordability
Affordability remains at record levels, supported by the lowest mortgage rates in decades, low home prices, as well as the first-time buyer tax credit. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 15 percent.
Sources: National Association of Realtors, Freddie Mac
Government Action
FHA Tightens Lending Requirements
The Federal Housing Administration (FHA) insured almost 30 percent of all purchase loans and 20 percent of refinances from September 2008 to September 2009, up from about only 2 percent of all loans three years earlier. The influx of loans combined with falling capital reserves, which cushion against rising defaults, has led the FHA to announce several measures to strengthen its economic vitality.
On January 20, the FHA announced it will do the following:
1. Raise Insurance Fees - In exchange for FHA backing, borrowers pay an up-front premium. Previously it was 1.75% of their loan. It’s now risen to 2.25%.
2. Cap Seller Contribution to Buyer’s Closing Costs - Sellers can contribute a maximum of 3%, down from 6%, of the sales price to the buyer’s closing costs. The higher cap created risk by incentivizing homes to sell at a substantially marked-up price to compensate for contribution. 3% is still a significant proportion to closing costs.
3. Require Higher Down Payments for Poor Credit - Beginning this summer, borrowers with a credit score below 580 will need to make a down payment of at least 10%. The FHA will still provide a viable alternative to the 1% of FHA borrowers who fall in this category, whereas most lenders’ credit score cutoff is 620.
The good news is the FHA, an integral player in the market, has stepped up to protect itself so it can continue helping first-time buyers, those with less cash for a down payment, and those with less-than-perfect credit obtain home loans. Additionally, these proactive measures aim to protect the agency from needing taxpayer funds from the government.
Source: The Wall Street Journal
FHA to Help New Foreclosures Sell Fast
FHA has announced it will lift the 90-day seasoning requirement for one year. The FHA ‘s 90-day “seasoning” provision requires that a home sold to an FHA buyer must be owned for at least 90 days by the seller before closing. This is intended to prevent buyers from purchasing property from “flippers” at an overly inflated value.
In the current climate, quickly selling foreclosures has risen in importance while the prominence of “flippers” has dramatically decreased. Acquiring, rehabbing, and reselling a foreclosure often takes fewer than 90 days. Banks have been reluctant to sell foreclosures to FHA buyers if they would need to push closing back to meet the FHA requirement.
There are additional stipulations; for more, please visit the press release.
Quickly moving foreclosures out of the bank’s hands and into those of home buyers is an important step in stabilizing home prices, neighborhoods, and communities leading toward a healthy housing market.
Source: U.S. Department of Housing and Urban Development
Topics For Buyers & Sellers
Price it Right
Sellers who listed their home at the price originally recommended by their agent sold it:
•38 days faster
•For 2.25% higher
•With 1 less price reduction
Compared to sellers who did not take their agent's recommendation.
Staging Stats
Compared to homes that were not staged, staged homes had:
•more showings
•a higher list-to-sell percentage
Other notable stats found include:
•Only 1 in 3 sellers staged their home, even with all the commonly accepted advantages of staging.
•Staging typically took between 2 - 6 hours to complete.
•Including the cost of a staging professional and items purchased or rented, staging cost an average of $523.
Although it has advantages at all price points, staging was also found to be particularly important for homes priced over $600,000.
Source: Keller Williams Realty Research Study
Contact me,
your local real estate expert,
for information about what's going on in our area.
For a more detailed report with additional graphs and government action, please see the This Month in Real Estate PowerPoint Report.
In an effort to reduce the impact on the environment, This Month in Real Estate PowerPoint Report is now also available in email newsletter format. Please consider the environment before printing.
TO SEARCH HOMES GO TO WWW.ALISHACROWDER.COM
January began the new decade with indications that the economy is beginning to gain traction. Real GDP grew by 2.2 percent in the third quarter of 2009 and preliminary signals point to a continued positive trend for the following quarter. GDP is a measure of total products and services produced by a country and indicates the health of the country's economy.
A dip in home sales in December was due in large part to timing. First time buyers that would have liked to close in December but qualified for the tax credit bumped their timeline up in order to cash in. News of the credit’s extension reached many of them after their plans to close in December were set.
Interest rates are back below 5% and home prices are up compared to last year. The government continues to attempt to minimize the impact of troubled homeowners by continuing to improve its foreclosure prevention program and has also taken steps to help foreclosures buyers purchase faster.
Although the unemployment rate is expected to stay high as jobs increase modestly, experts expect the economy to continue to grow in 2010.
The Housing Market
Existing Home Sales
After a rising surge for three straight months, existing home sales slowed in December after first-time buyers rushed to meet the original November tax credit deadline and evidenced by first timers accounting for 51% of sales in November compared to 43% in December. “It’s significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit,” said Lawrence Yun, NAR chief economist. December sales of 5.45 million remain 15 percent above the 4.74 million-unit level last year.
Median Home Price
Existing-home price was $178,300 in December, 1.5 percent higher than December 2008 and 8.2 percent above its low in January 2009. It was the first year-over-year gain in median price since August 2007, attributable to an increase in the number of mid- to upper-priced homes in the sales.
Inventory
The supply of homes continued to shrink, falling 6.6 percent to 3.29 million, representing a 7.2-month supply at the current sales pace. Compared to a year ago, there are now 11 percent fewer homes on the market. This is the lowest level of competing homes on the market since March 2006.
Mortgage Rates
Mortgage rates have moved back to less than 5 percent, which have been categorized by industry experts like Freddie Mac chief economist Frank Nothaft as “near a record low.” This move that may help boost home loan demand and lend support to the housing market recovery. On January 28, the average 30-year fixed-rate mortgage was 4.98 percent.
Affordability
Affordability remains at record levels, supported by the lowest mortgage rates in decades, low home prices, as well as the first-time buyer tax credit. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 15 percent.
Sources: National Association of Realtors, Freddie Mac
Government Action
FHA Tightens Lending Requirements
The Federal Housing Administration (FHA) insured almost 30 percent of all purchase loans and 20 percent of refinances from September 2008 to September 2009, up from about only 2 percent of all loans three years earlier. The influx of loans combined with falling capital reserves, which cushion against rising defaults, has led the FHA to announce several measures to strengthen its economic vitality.
On January 20, the FHA announced it will do the following:
1. Raise Insurance Fees - In exchange for FHA backing, borrowers pay an up-front premium. Previously it was 1.75% of their loan. It’s now risen to 2.25%.
2. Cap Seller Contribution to Buyer’s Closing Costs - Sellers can contribute a maximum of 3%, down from 6%, of the sales price to the buyer’s closing costs. The higher cap created risk by incentivizing homes to sell at a substantially marked-up price to compensate for contribution. 3% is still a significant proportion to closing costs.
3. Require Higher Down Payments for Poor Credit - Beginning this summer, borrowers with a credit score below 580 will need to make a down payment of at least 10%. The FHA will still provide a viable alternative to the 1% of FHA borrowers who fall in this category, whereas most lenders’ credit score cutoff is 620.
The good news is the FHA, an integral player in the market, has stepped up to protect itself so it can continue helping first-time buyers, those with less cash for a down payment, and those with less-than-perfect credit obtain home loans. Additionally, these proactive measures aim to protect the agency from needing taxpayer funds from the government.
Source: The Wall Street Journal
FHA to Help New Foreclosures Sell Fast
FHA has announced it will lift the 90-day seasoning requirement for one year. The FHA ‘s 90-day “seasoning” provision requires that a home sold to an FHA buyer must be owned for at least 90 days by the seller before closing. This is intended to prevent buyers from purchasing property from “flippers” at an overly inflated value.
In the current climate, quickly selling foreclosures has risen in importance while the prominence of “flippers” has dramatically decreased. Acquiring, rehabbing, and reselling a foreclosure often takes fewer than 90 days. Banks have been reluctant to sell foreclosures to FHA buyers if they would need to push closing back to meet the FHA requirement.
There are additional stipulations; for more, please visit the press release.
Quickly moving foreclosures out of the bank’s hands and into those of home buyers is an important step in stabilizing home prices, neighborhoods, and communities leading toward a healthy housing market.
Source: U.S. Department of Housing and Urban Development
Topics For Buyers & Sellers
Price it Right
Sellers who listed their home at the price originally recommended by their agent sold it:
•38 days faster
•For 2.25% higher
•With 1 less price reduction
Compared to sellers who did not take their agent's recommendation.
Staging Stats
Compared to homes that were not staged, staged homes had:
•more showings
•a higher list-to-sell percentage
Other notable stats found include:
•Only 1 in 3 sellers staged their home, even with all the commonly accepted advantages of staging.
•Staging typically took between 2 - 6 hours to complete.
•Including the cost of a staging professional and items purchased or rented, staging cost an average of $523.
Although it has advantages at all price points, staging was also found to be particularly important for homes priced over $600,000.
Source: Keller Williams Realty Research Study
Contact me,
your local real estate expert,
for information about what's going on in our area.
For a more detailed report with additional graphs and government action, please see the This Month in Real Estate PowerPoint Report.
In an effort to reduce the impact on the environment, This Month in Real Estate PowerPoint Report is now also available in email newsletter format. Please consider the environment before printing.
TO SEARCH HOMES GO TO WWW.ALISHACROWDER.COM
Thursday, January 21, 2010
JANUARY-2010 Newsletter Housing Trends eNewsletter
Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general.
The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.
Please click here to view the JANUARY-2010 Newsletter Housing Trends eNewsletter.
If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report.
TO SEARCH HOMES GO TO WWW.ALISHACROWDER.COM
Friday, January 8, 2010
What is Keller Williams RED day?
RED (Renew, Energize and Donate) Day is a Keller Williams Realty service initiative dedicated to improving our local communities. We are asking all Keller Williams Realty associates in the US and Canada to donate their time on May 13, 2010 to renewing and energizing aspects of their local communities. Because of her constant commitment to the culture of our company, this day has been dedicated in honor of our Vice Chairman, Mo Anderson.
Our vision for this day is that all Keller Williams associates will actively engage in a coordinated effort to improve their local community. Activities may include rehabbing a house, cleaning up a local trail, providing food for the homeless, or any other service related activity needed in your community. This will be one of the single biggest events ever undertaken in the real estate industry.
If you have any ideas give me a call.
If you have any ideas give me a call.
TO SEARCH HOMES GO TO WWW.ALISHACROWDER.COM
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