10 Major Mortgage Mistakes to Avoid http://ow.ly/9utDL
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Wednesday, March 21, 2012
Existing Home Sales Dip In February; Median Price Up Slightly
February existing-home sales declined from an upwardly revised January pace but are well above a year ago, while the median price posted a slight gain, according to the National Association of Realtors. Sales were up in the Midwest and South, offset by declines in the Northeast and West.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, slipped 0.9 percent to a seasonally adjusted annual rate of 4.59 million in February from an upwardly revised 4.63 million in January, but are 8.8 percent higher than the 4.22 million-unit level in February 2011.
Lawrence Yun, NAR chief economist, said underlying factors are much better compared to one year ago. “The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market,” he said. “Although relatively unusual, there will be rising demand for both rental space and homeownership this year. The great suppression in household formation during the past four years was unsustainable, and a pent-up demand could burst forth from the improving economy.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.89 percent in February, down from 3.92 percent in January; the rate was 4.95 percent in February 2011; recordkeeping began in 1971.
NAR said market conditions are improving: "Supply and demand have become more balanced in more markets, but with tight supply in the lower price ranges – particularly in the West,” he said. “When markets are balanced, we normally see prices rise one to two percentage points above the rate of inflation, but foreclosures and short sales are holding back median prices.”
The national median existing-home price2 for all housing types was $156,600 in February, up 0.3 percent from February 2011. Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 34 percent of February sales (20 percent were foreclosures and 14 percent were short sales), down from 35 percent in January and 39 percent in February 2011.
“The bottom line is investors and first-time buyers are competing for bargain-priced properties in much of the country, with home prices showing signs of stabilizing in many areas,” Veissi said. “People realize that homeownership is an investment in their future. Given an apparent over-correction in most areas, over the long term home prices have nowhere to go but up.”
Total housing inventory at the end of February rose 4.3 percent to 2.43 million existing homes available for sale, which represents a 6.4-month supply4 at the current sales pace, up from a 6.0-month supply in January. Even so, unsold listed inventory has trended down from a record 4.04 million in July 2007, and is 19.3 percent below a year ago.
“Falling visible and shadow inventory, combined with a dearth of new-home and apartment construction during the past three years, assure that rents will continue to rise, with likely home price increases in 2012,” Yun said.
Fifty-one percent of NAR members report that contracts settled on time in February, 18 percent had delays and 31 percent experienced contract failures; the cancellation rate was 33 percent in January and 9 percent in February 2011. Contract failures are commonly caused by declined mortgage applications and failures in loan underwriting from appraisals coming in below the negotiated price.
“Many buyers are staying in the market after experiencing a contract failure and making an offer on another property, showing their determination to take advantage of the favorable conditions, but the cancellations are contributing to an uneven sales pattern,” Yun said.
All-cash sales rose to 33 percent of transactions in February from 31 percent in January; they were 33 percent in February 2011. Investors account for the bulk of cash transactions.
Investors purchased 23 percent of homes in February, unchanged from January; they were 20 percent in February 2011. First-time buyers accounted for 32 percent of transactions in February, down from 33 percent in January and 34 percent in February 2011.
Single-family home sales declined 1.0 percent to a seasonally adjusted annual rate of 4.06 million in February from 4.10 million in January, but are 9.4 percent higher than the 3.71 million-unit level a year ago. The median existing single-family home price was $157,100 in February, which is 0.1 percent above February 2011.
Existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 530,000 in February and are 3.9 percent above the 510,000-unit pace in February 2011. The median existing condo price was $153,000 in February, up 1.6 percent from a year ago.
Regionally, existing-home sales in the Northeast fell 3.3 percent to an annual level of 580,000 in February but are 5.5 percent above a year ago. The median price in the Northeast was $225,800, down 1.9 percent from February 2011.
Existing-home sales in the Midwest rose 1.0 percent in February to a pace of 1.02 million and are 13.3 percent higher than February 2011. The median price in the Midwest was $120,500, which is 0.5 percent below a year ago.
In the South, existing-home sales increased 0.6 percent to an annual level of 1.77 million in February and are 9.3 percent higher than a year ago. The median price in the South was $138,100, up 1.8 percent from February 2011.
Existing-home sales in the West declined 3.2 percent to an annual pace of 1.22 million in February but are 6.1 percent above February 2011. The median price in the West was $195,300, up 3.1 percent from a year ago.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, slipped 0.9 percent to a seasonally adjusted annual rate of 4.59 million in February from an upwardly revised 4.63 million in January, but are 8.8 percent higher than the 4.22 million-unit level in February 2011.
Lawrence Yun, NAR chief economist, said underlying factors are much better compared to one year ago. “The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market,” he said. “Although relatively unusual, there will be rising demand for both rental space and homeownership this year. The great suppression in household formation during the past four years was unsustainable, and a pent-up demand could burst forth from the improving economy.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.89 percent in February, down from 3.92 percent in January; the rate was 4.95 percent in February 2011; recordkeeping began in 1971.
NAR said market conditions are improving: "Supply and demand have become more balanced in more markets, but with tight supply in the lower price ranges – particularly in the West,” he said. “When markets are balanced, we normally see prices rise one to two percentage points above the rate of inflation, but foreclosures and short sales are holding back median prices.”
The national median existing-home price2 for all housing types was $156,600 in February, up 0.3 percent from February 2011. Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 34 percent of February sales (20 percent were foreclosures and 14 percent were short sales), down from 35 percent in January and 39 percent in February 2011.
“The bottom line is investors and first-time buyers are competing for bargain-priced properties in much of the country, with home prices showing signs of stabilizing in many areas,” Veissi said. “People realize that homeownership is an investment in their future. Given an apparent over-correction in most areas, over the long term home prices have nowhere to go but up.”
Total housing inventory at the end of February rose 4.3 percent to 2.43 million existing homes available for sale, which represents a 6.4-month supply4 at the current sales pace, up from a 6.0-month supply in January. Even so, unsold listed inventory has trended down from a record 4.04 million in July 2007, and is 19.3 percent below a year ago.
“Falling visible and shadow inventory, combined with a dearth of new-home and apartment construction during the past three years, assure that rents will continue to rise, with likely home price increases in 2012,” Yun said.
Fifty-one percent of NAR members report that contracts settled on time in February, 18 percent had delays and 31 percent experienced contract failures; the cancellation rate was 33 percent in January and 9 percent in February 2011. Contract failures are commonly caused by declined mortgage applications and failures in loan underwriting from appraisals coming in below the negotiated price.
“Many buyers are staying in the market after experiencing a contract failure and making an offer on another property, showing their determination to take advantage of the favorable conditions, but the cancellations are contributing to an uneven sales pattern,” Yun said.
All-cash sales rose to 33 percent of transactions in February from 31 percent in January; they were 33 percent in February 2011. Investors account for the bulk of cash transactions.
Investors purchased 23 percent of homes in February, unchanged from January; they were 20 percent in February 2011. First-time buyers accounted for 32 percent of transactions in February, down from 33 percent in January and 34 percent in February 2011.
Single-family home sales declined 1.0 percent to a seasonally adjusted annual rate of 4.06 million in February from 4.10 million in January, but are 9.4 percent higher than the 3.71 million-unit level a year ago. The median existing single-family home price was $157,100 in February, which is 0.1 percent above February 2011.
Existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 530,000 in February and are 3.9 percent above the 510,000-unit pace in February 2011. The median existing condo price was $153,000 in February, up 1.6 percent from a year ago.
Regionally, existing-home sales in the Northeast fell 3.3 percent to an annual level of 580,000 in February but are 5.5 percent above a year ago. The median price in the Northeast was $225,800, down 1.9 percent from February 2011.
Existing-home sales in the Midwest rose 1.0 percent in February to a pace of 1.02 million and are 13.3 percent higher than February 2011. The median price in the Midwest was $120,500, which is 0.5 percent below a year ago.
In the South, existing-home sales increased 0.6 percent to an annual level of 1.77 million in February and are 9.3 percent higher than a year ago. The median price in the South was $138,100, up 1.8 percent from February 2011.
Existing-home sales in the West declined 3.2 percent to an annual pace of 1.22 million in February but are 6.1 percent above February 2011. The median price in the West was $195,300, up 3.1 percent from a year ago.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
Tuesday, March 20, 2012
GLVAR reports increasing home sales, prices, decreasing inventory
Statistics released today by the Greater Las Vegas Association of REALTORS® (GLVAR) show the number of existing homes being sold in Southern Nevada continues to go up, while the number of homes available for sale continues to go down.
“So far this year, local home sales remain strong and above the record sales pace we set in 2011,” said GLVAR President Kolleen Kelley, a longtime local REALTOR®. “At the same time, we’re seeing fewer homes available for sale each month, especially bank-owned homes. With the supply of homes going down, it makes sense that the median price of homes went up last month.”
Kelley said the inventory of available homes had been declining through much of 2011. That trend seems to have accelerated since Oct. 1, 2011, when a new state law known as AB284 took effect, requiring lenders to prove they have all the necessary documents in place before proceeding with a foreclosure. Since Oct. 1, she said this law has curtailed the number of bank-owned homes being put on the market in Southern Nevada.
Still, Kelley said existing home sales are even stronger so far in 2012 than they were in 2011, which set a record for existing home sales in a single year with 48,186 sales, including 38,153 single-family homes and 10,033 condominiums and townhomes.
According to GLVAR, the total number of local homes, condominiums and townhomes sold in February was 3,794. That’s up from 3,591 in January, and up from 3,371 total sales in February 2011.
Compared to one year ago, single-family home sales during February increased by 17.8 percent, while sales of condos and townhomes decreased by 5.0 percent. As for prices, GLVAR reported the median price of single-family homes sold in February was $121,000, up 2.5 percent from $118,000 in January, but down 5.5 percent from $128,000 one year ago. Meanwhile, the median price of local condominiums and townhomes sold in February was $60,000. That’s up 9.1 percent from $55,000 the previous month, but down 3.6 percent from $62,250 the previous year. Kelley said this is the first time the median price of local condos and townhomes had topped $60,000 since May of 2011. The total number of homes listed for sale on GLVAR’s Multiple Listing Service decreased from January to February, with a total of 18,870 single-family homes listed for sale at the end of the month. That’s down 1.5 percent from 19,160 single-family homes listed for sale at the end of January and down 15.4 percent from one year ago. GLVAR reported a total of 4,016 condos and townhomes listed for sale on its MLS at the end of February. That’s down 2.8 percent from 4,133 condos and townhomes listed in January, and down 16.2 percent from one year ago. (more) GLVAR housing stats – page 2
As in past months, the number of available homes listed for sale without any sort of pending or contingent offer also declined compared to the previous month and year. By the end of February, GLVAR reported 6,543 single-family homes listed without any sort of offer. That’s down 18.2 percent from 8,001 such homes listed in January and down 45.6 percent from one year ago. For condos and townhomes, the 1,598 properties listed without offers in February represented an 8.5 percent decline from 1,746 such properties listed without offers in January and a decrease of 45.6 percent from one year ago. In February, GLVAR reported that 53.2 percent of all existing homes sold in Southern Nevada were purchased with cash. That’s up from 52.5 percent in January and another indication to Kelley that “investors continue to see great value in our housing market.” Meanwhile, 29.3 percent of all existing local homes sold during February were short sales, which occur when a lender agrees to sell a home for less than what the borrower owes on the mortgage. That’s up from 28.1 percent in January, but still short of the peak of 34 percent set in June 2010.
Bank-owned homes accounted for 42 percent of all existing home sales in February, down from 45.5 percent in January. GLVAR reported that the median price of bank-owned single-family homes sold in February was $104,900, up from $100,000 in January. The median price of single-family homes sold as part of a short sale in February was $120,000, down from $121,000 in January. This month’s GLVAR statistics include activity through the end of February 2012. GLVAR distributes such statistics each month based on data collected through its MLS, which does not necessarily account for newly constructed homes sold by local builders or for sale by owners. Other highlights include:
• The monthly value of local real estate transactions tracked through the MLS during February increased by 8.2 percent for homes to nearly $454 million. For condos and townhomes, the total value of all sales in February was more than $62 million, up 19.6 percent from January. Compared to one year ago, total sales volumes in February were up 12.1 percent for homes, but down 12.2 percent for condos and townhomes.
• Through February, 57.1 percent of all homes and 61.1 percent of all condos and townhomes sold within 60 days. That compares to January, when 56.6 percent of all homes and 63.4 percent of all condos and townhomes sold within 60 days.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
“So far this year, local home sales remain strong and above the record sales pace we set in 2011,” said GLVAR President Kolleen Kelley, a longtime local REALTOR®. “At the same time, we’re seeing fewer homes available for sale each month, especially bank-owned homes. With the supply of homes going down, it makes sense that the median price of homes went up last month.”
Kelley said the inventory of available homes had been declining through much of 2011. That trend seems to have accelerated since Oct. 1, 2011, when a new state law known as AB284 took effect, requiring lenders to prove they have all the necessary documents in place before proceeding with a foreclosure. Since Oct. 1, she said this law has curtailed the number of bank-owned homes being put on the market in Southern Nevada.
Still, Kelley said existing home sales are even stronger so far in 2012 than they were in 2011, which set a record for existing home sales in a single year with 48,186 sales, including 38,153 single-family homes and 10,033 condominiums and townhomes.
According to GLVAR, the total number of local homes, condominiums and townhomes sold in February was 3,794. That’s up from 3,591 in January, and up from 3,371 total sales in February 2011.
Compared to one year ago, single-family home sales during February increased by 17.8 percent, while sales of condos and townhomes decreased by 5.0 percent. As for prices, GLVAR reported the median price of single-family homes sold in February was $121,000, up 2.5 percent from $118,000 in January, but down 5.5 percent from $128,000 one year ago. Meanwhile, the median price of local condominiums and townhomes sold in February was $60,000. That’s up 9.1 percent from $55,000 the previous month, but down 3.6 percent from $62,250 the previous year. Kelley said this is the first time the median price of local condos and townhomes had topped $60,000 since May of 2011. The total number of homes listed for sale on GLVAR’s Multiple Listing Service decreased from January to February, with a total of 18,870 single-family homes listed for sale at the end of the month. That’s down 1.5 percent from 19,160 single-family homes listed for sale at the end of January and down 15.4 percent from one year ago. GLVAR reported a total of 4,016 condos and townhomes listed for sale on its MLS at the end of February. That’s down 2.8 percent from 4,133 condos and townhomes listed in January, and down 16.2 percent from one year ago. (more) GLVAR housing stats – page 2
As in past months, the number of available homes listed for sale without any sort of pending or contingent offer also declined compared to the previous month and year. By the end of February, GLVAR reported 6,543 single-family homes listed without any sort of offer. That’s down 18.2 percent from 8,001 such homes listed in January and down 45.6 percent from one year ago. For condos and townhomes, the 1,598 properties listed without offers in February represented an 8.5 percent decline from 1,746 such properties listed without offers in January and a decrease of 45.6 percent from one year ago. In February, GLVAR reported that 53.2 percent of all existing homes sold in Southern Nevada were purchased with cash. That’s up from 52.5 percent in January and another indication to Kelley that “investors continue to see great value in our housing market.” Meanwhile, 29.3 percent of all existing local homes sold during February were short sales, which occur when a lender agrees to sell a home for less than what the borrower owes on the mortgage. That’s up from 28.1 percent in January, but still short of the peak of 34 percent set in June 2010.
Bank-owned homes accounted for 42 percent of all existing home sales in February, down from 45.5 percent in January. GLVAR reported that the median price of bank-owned single-family homes sold in February was $104,900, up from $100,000 in January. The median price of single-family homes sold as part of a short sale in February was $120,000, down from $121,000 in January. This month’s GLVAR statistics include activity through the end of February 2012. GLVAR distributes such statistics each month based on data collected through its MLS, which does not necessarily account for newly constructed homes sold by local builders or for sale by owners. Other highlights include:
• The monthly value of local real estate transactions tracked through the MLS during February increased by 8.2 percent for homes to nearly $454 million. For condos and townhomes, the total value of all sales in February was more than $62 million, up 19.6 percent from January. Compared to one year ago, total sales volumes in February were up 12.1 percent for homes, but down 12.2 percent for condos and townhomes.
• Through February, 57.1 percent of all homes and 61.1 percent of all condos and townhomes sold within 60 days. That compares to January, when 56.6 percent of all homes and 63.4 percent of all condos and townhomes sold within 60 days.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
What Happens When You Walk Away From Your Home?
Does it make sense to keep paying a massive mortgage, knowing that it might be decades before a home regains its prior value?
What Happens When You Walk Away From Your Home?
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
Monday, March 19, 2012
Should you buy a home, or should you rent? Take this six-question quiz to find out.
QUIZ: Should You Buy or Rent a Home? http://ow.ly/9wl3d
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
Friday, March 16, 2012
Real Average Weekly Earnings Report
Real average hourly earnings for all employees fell 0.3 percent from January 2012 to February 2012, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. A 0.1 percent increase in the average hourly earnings was more than offset by a 0.4 percent increase in the Consumer Price Index for All Urban Consumers (CPI-U).
Real average weekly earnings fell 0.3 percent over the month due to the decline in the real average hourly earnings combined with an unchanged workweek. Since reaching a peak in October 2010, real average weekly earnings has fallen 1.2 percent.
Real average hourly earnings fell 1.1 percent, seasonally adjusted, from February 2011 to February 2012. The decrease in real average hourly earnings combined with a 0.6 percent increase in average weekly hours resulted in a 0.4 percent decrease in real average weekly earnings during this period.
Real average hourly earnings for production and nonsupervisory employees fell 0.3 percent from January 2012 to February 2012, seasonally adjusted. A 0.2 percent increase in the average hourly earnings was more than offset by a 0.5 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Real average weekly earnings was unchanged over the month due to a 0.3 percent increase in the average workweek and the decrease in real average hourly earnings. Since reaching a peak in October 2010, real average weekly earnings for production and nonsupervisory employees has fallen 1.7 percent.
Real average hourly earnings fell 1.5 percent, seasonally adjusted, from February 2011 to February 2012. The decrease in real average hourly earnings combined with a 0.6 percent increase in average weekly hours resulted in a 0.9 percent decrease in real average weekly earnings during this period.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
Real average weekly earnings fell 0.3 percent over the month due to the decline in the real average hourly earnings combined with an unchanged workweek. Since reaching a peak in October 2010, real average weekly earnings has fallen 1.2 percent.
Real average hourly earnings fell 1.1 percent, seasonally adjusted, from February 2011 to February 2012. The decrease in real average hourly earnings combined with a 0.6 percent increase in average weekly hours resulted in a 0.4 percent decrease in real average weekly earnings during this period.
Real average hourly earnings for production and nonsupervisory employees fell 0.3 percent from January 2012 to February 2012, seasonally adjusted. A 0.2 percent increase in the average hourly earnings was more than offset by a 0.5 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Real average weekly earnings was unchanged over the month due to a 0.3 percent increase in the average workweek and the decrease in real average hourly earnings. Since reaching a peak in October 2010, real average weekly earnings for production and nonsupervisory employees has fallen 1.7 percent.
Real average hourly earnings fell 1.5 percent, seasonally adjusted, from February 2011 to February 2012. The decrease in real average hourly earnings combined with a 0.6 percent increase in average weekly hours resulted in a 0.9 percent decrease in real average weekly earnings during this period.
The Eckerman Group
Real Estate and Wealth Building Education
7345 South Durango Drive
Suite B107 #13
Las Vegas NV 89113
(702)900-9372
info@theeckermangroup.com
Consumer Prices Up In February
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in February on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.9 percent before seasonal adjustment.
The gasoline index rose sharply in February, accounting for over 80 percent of the change in the all items index. The gasoline increase led to a 3.2 percent rise in the energy index despite a decline in the index for natural gas. The food index was unchanged in February, with the food at home index unchanged for the second month in a row as major grocery store food indexes were mixed.
The index for all items less food and energy rose 0.1 percent in February after increasing 0.2 percent in January. Indexes for shelter, new vehicles, medical care, and household furnishings and operations all advanced, while indexes for apparel, recreation, used cars and trucks, and tobacco all declined.
The all items index has risen 2.9 percent over the last 12 months, the same figure as last month. The index for all items less food and energy was up 2.2 percent, a slight decline from last month's 2.3 percent figure, while the 12-month change in the food index fell to 3.9 percent in February, its lowest level since last June. In contrast, the 12-month change in the energy index was 7.0 percent in February compared to 6.1 percent in January.
The gasoline index rose sharply in February, accounting for over 80 percent of the change in the all items index. The gasoline increase led to a 3.2 percent rise in the energy index despite a decline in the index for natural gas. The food index was unchanged in February, with the food at home index unchanged for the second month in a row as major grocery store food indexes were mixed.
The index for all items less food and energy rose 0.1 percent in February after increasing 0.2 percent in January. Indexes for shelter, new vehicles, medical care, and household furnishings and operations all advanced, while indexes for apparel, recreation, used cars and trucks, and tobacco all declined.
The all items index has risen 2.9 percent over the last 12 months, the same figure as last month. The index for all items less food and energy was up 2.2 percent, a slight decline from last month's 2.3 percent figure, while the 12-month change in the food index fell to 3.9 percent in February, its lowest level since last June. In contrast, the 12-month change in the energy index was 7.0 percent in February compared to 6.1 percent in January.
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