I hope you are having a good week. Here is some information I thought you would find helpful in getting your buyers off the fence.
Buying a home may never get any cheaper than this. Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market. With home prices down 34% nationally since 2006 and home loan rates at historic lows, homes have never been more affordable -- but it won't stay this way for much longer. Economist expect home prices to flatten out by the third quarter and start climbing again by next year. The decline in foreclosures and continued job growth is partially responsible. As buyers get their finances in order and improve their credit lines they will have better access to more home loans.
Some economists, like Trulia's Jed Kolko, expect home prices to pick up even more quickly. Trulia's data shows that the national average for asking prices already increased 1.4% in the first quarter of 2012, compared with the last three months of 2011. One major factor that will drive the trend is the cooling of the foreclosure crisis. Stan Humphries, chief economist for Zillow, said that the percentage of residential loans 90 days or more late, a good predictor of future foreclosures, is "falling fast." That percentage dropped 15% year-over-year to 3.1% through the end of 2011, according to the Mortgage Bankers Association. And the decline is accelerating: More than 70% of the decline came in the last three months of the year.
Before things slow down, however, buyers should brace themselves for a temporary spike in the number of foreclosures as banks start expediting the processing of hundreds of thousands foreclosures that were stuck in the system following the robo-signing scandal. That backlog should move more quickly now that new guidelines for processing foreclosures have been outlined in the $26 billion foreclosure settlement. Many of the bank-owned properties currently coming out of the foreclosure pipeline are being snapped up by investors who are fixing them up and renting them out -- often to those who were displaced by the foreclosure of their own home. That has helped to lift prices on foreclosed properties, according to Alex Villacorte, the director of analytics for Clear Capital, which specializes in housing market valuations. Source: CNN/Money
Bargain home prices have jump-started sales on second homes, but more purchasers are opting to buy properties much closer to their primary residence. In the past, second-home buyers tended to buy properties out-of-state or were lured to vacation homes near far-flung resorts and tourist destinations. But second-home purchases these days seem to be more restrained, as more purchasers opt for vacation spots that are within a relatively short drive of where they live. Source: The Wall Street Journal
Tuesday, May 29, 2012
Wednesday, May 23, 2012
Keller Williams Realty, Inc. Ranked in America’s Top 10 Workplaces
AUSTIN, TEXAS (May 16, 2012) - Keller Williams Realty, Inc. announced today it has been recognized as one of America’s Top 10 Workplaces, according to the first annual National Top Workplaces list compiled by Workplace Dynamics.
“Our culture is our strongest asset and the reason that so many people want to be with us," Mary Tennant, COO of Keller Williams Realty shares. “Imagine what it would be like to work in a culture every day with people that you feel love, kindness, caring and humor with. Imagine working in an environment where there is a passion for every single person to succeed at the highest level."
“If this award proves anything, it’s that we only succeed when our associates do," added Mark Willis, CEO. “We are proud to be in business with the best who are lifting us up each day and proud to be fulfilling our mission of building careers worth having, businesses worth owning and lives worth living."
The list of National Top Workplaces is based solely on employee feedback surveyed from 805 companies of more than 1,000 employees, which included over half a million survey responses. According to survey results, Keller Williams’ ranking was based on its overall culture and high levels of organizational health including training, benefits, compensation, and work-life balance. “Put simply, the most successful companies appear to be the ones that employees believe in," said Doug Claffey, CEO at WorkplaceDynamics.
For more information and the full list of the Workplace Dynamics Nation’s Top Workplaces, please visithttp://topworkplaces.com/stories/americas-top10-workplaces.php
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About Keller Williams Realty, Inc.:
Keller Williams Realty Inc. is the second-largest real estate franchise operation in the United States, with almost 700 offices and more than 75,000 associates in the United States and Canada. The company has grown exponentially since the opening of the first Keller Williams Realty office in 1983, and continues to cultivate its agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty online at (www.kw.com). For more information about KW Worldwide, visit (www.kwworldwide.com).
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Monday, May 21, 2012
Bank of America offers relo assistance to short-sellers
Bundles of cash image via Shutterstock.
Bank of America says it will provide up to $30,000 in relocation assistance to delinquent borrowers who work with the bank to obtain a preapproved short-sale price before submitting purchase offers.
Short sales must be initiated by the end of this year and close by Sept. 26, 2013, to be eligible for the payments, which will range from $2,500 to $30,000 at the completion of a qualifying short sale. Payments will be determined on a case-by-case basis using a calculation that includes the value of the home, amount owed and other considerations, Bank of America said in announcing the program.
The program -- based on a similar incentive offer Bank of America tested last year in Florida -- will be available nationally. But Bank of America anticipates the greatest response will come from borrowers in California, Nevada, Arizona, Florida, and other states hit hardest by the economic downturn and falling property values.
Customers who believe they may be eligible for Bank of America's short-sale relocation assistance program may contact program specialists at (877) 459-2852. Qualifying short sales that have already started but have not closed may be eligible for the program.
Bank of America says its short-sale initiatives have generated 200,000 short sales in the last two years and another 30,000 in the first three months of this year.
Last month, Bank of America announced it was shortening decision times on short-sale offers to 20 days, down from 45 days or longer.
Article Courtesy of Inman News.
Bank of America says it will provide up to $30,000 in relocation assistance to delinquent borrowers who work with the bank to obtain a preapproved short-sale price before submitting purchase offers.
Short sales must be initiated by the end of this year and close by Sept. 26, 2013, to be eligible for the payments, which will range from $2,500 to $30,000 at the completion of a qualifying short sale. Payments will be determined on a case-by-case basis using a calculation that includes the value of the home, amount owed and other considerations, Bank of America said in announcing the program.
The program -- based on a similar incentive offer Bank of America tested last year in Florida -- will be available nationally. But Bank of America anticipates the greatest response will come from borrowers in California, Nevada, Arizona, Florida, and other states hit hardest by the economic downturn and falling property values.
Customers who believe they may be eligible for Bank of America's short-sale relocation assistance program may contact program specialists at (877) 459-2852. Qualifying short sales that have already started but have not closed may be eligible for the program.
Bank of America says its short-sale initiatives have generated 200,000 short sales in the last two years and another 30,000 in the first three months of this year.
Last month, Bank of America announced it was shortening decision times on short-sale offers to 20 days, down from 45 days or longer.
Article Courtesy of Inman News.
Friday, May 18, 2012
Mortgage Rates Hit Fresh Lows: 30-Year at 3.79%
Here we go again. The average fixed rate 30-year mortgage fell to 3.79% this week, yet another record low, according to data from Freddie Mac. That's down from 3.83% the week prior, and marks the third straight week of fresh lows.
The 15-year rate edged just slightly lower to 3.04%, from 3.05%, also a new record low.
The low rates come amid signs of improvement in housing -- declining foreclosures and delinquencies, and increases to housing starts and the NAHB housing index -- and would be a nice touch for those looking to refinance, although many have struggled to take advantage.
An array of weekly and monthly data have been closely watched as economists look for affirmation of a trend -- be it improvement or continued distress -- and as homeowners and prospective buyers wrestle with regional realities, which vary greatly. When it comes to rates, some of the factors hitting home are originating further away. The economic turmoil in Europe, in particular, is having an effect, according to Freddie Mac vice president Frank Nothaft.
"The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week," said Nothaft, noting that industrial production saw its largest jump since December 2010 and consumer sentiment hit its highest level since January 2008.
The low rates are encouraging demand. Mortgage applications increased 9.2 percent last week from one week earlier, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The refinance portion of that index jumped 13%, with refinancing demand now accounting for 74% of the mortgage application volume, according to the data.
Again, though, much to the frustration of many homeowners, not everyone has been able to take advantage of the low rates, in part because of backlog at large banks.
Thursday's data follow a report that foreclosure filings in the U.S. dropped to a five-year low last month as lenders upped efforts to avoid seizing properties. Bank of America (BAC), for one, said last week that it was rolling out new efforts to help keep homeowners out of foreclosure thanks to the robo-signing settlement. It began mailing 200,000 letters offering certain customers mortgage principal reductions, and eligible borrowers could get as much as $150,000 knocked off the balance of their mortgages.
One improvement in the housing landscape: The delinquency rate for one-to-four-unit residential properties decreased by 18 basis points in the first quarter from the fourth quarter of 2011. At the end of the first quarter, there was a delinquency rate of 7.4% of all loans outstanding.
"Mortgage delinquencies normally fall during the first quarter of the year, but the declines we saw were even greater than the normal seasonal adjustments would predict, so delinquencies are clearly continuing to improve," said Michael Fratantoni, MBA's Vice President of Research and Economics. "Newer delinquencies, loans one payment past due as of March 31, are down to the lowest level since the middle of 2007, indicating fewer new problems we will need to deal with in the future."
Data on housing starts in April and the NAHB housing index in May, released earlier in the week, both increased more than expected.
Article Courtesy of Yahoo.
The 15-year rate edged just slightly lower to 3.04%, from 3.05%, also a new record low.
The low rates come amid signs of improvement in housing -- declining foreclosures and delinquencies, and increases to housing starts and the NAHB housing index -- and would be a nice touch for those looking to refinance, although many have struggled to take advantage.
An array of weekly and monthly data have been closely watched as economists look for affirmation of a trend -- be it improvement or continued distress -- and as homeowners and prospective buyers wrestle with regional realities, which vary greatly. When it comes to rates, some of the factors hitting home are originating further away. The economic turmoil in Europe, in particular, is having an effect, according to Freddie Mac vice president Frank Nothaft.
"The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week," said Nothaft, noting that industrial production saw its largest jump since December 2010 and consumer sentiment hit its highest level since January 2008.
The low rates are encouraging demand. Mortgage applications increased 9.2 percent last week from one week earlier, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The refinance portion of that index jumped 13%, with refinancing demand now accounting for 74% of the mortgage application volume, according to the data.
Again, though, much to the frustration of many homeowners, not everyone has been able to take advantage of the low rates, in part because of backlog at large banks.
Thursday's data follow a report that foreclosure filings in the U.S. dropped to a five-year low last month as lenders upped efforts to avoid seizing properties. Bank of America (BAC), for one, said last week that it was rolling out new efforts to help keep homeowners out of foreclosure thanks to the robo-signing settlement. It began mailing 200,000 letters offering certain customers mortgage principal reductions, and eligible borrowers could get as much as $150,000 knocked off the balance of their mortgages.
One improvement in the housing landscape: The delinquency rate for one-to-four-unit residential properties decreased by 18 basis points in the first quarter from the fourth quarter of 2011. At the end of the first quarter, there was a delinquency rate of 7.4% of all loans outstanding.
"Mortgage delinquencies normally fall during the first quarter of the year, but the declines we saw were even greater than the normal seasonal adjustments would predict, so delinquencies are clearly continuing to improve," said Michael Fratantoni, MBA's Vice President of Research and Economics. "Newer delinquencies, loans one payment past due as of March 31, are down to the lowest level since the middle of 2007, indicating fewer new problems we will need to deal with in the future."
Data on housing starts in April and the NAHB housing index in May, released earlier in the week, both increased more than expected.
Article Courtesy of Yahoo.
Thursday, May 17, 2012
Shrinking Inventory and Rising List Prices: Continuing Signs of a Recovering Housing Market
Ted Jones, Senior Vice President and Chief Economist for Stewart Title, spends a lot of time keeping his finger on the pulse of the housing market. We asked Ted to comment on what he sees happening in the residential market nationally -- across all price points -- and he has some up-beat observations to share. Here are Ted’s comments:
There are positive signs spanning the spectrum indicating a turning real estate market, despite some weak spots across the country.
Just a few days ago, USA Today reported that the number of existing homes for sale had dropped 22 percent from a year ago and now totals just 2.37 million units. This is down 41 percent from the peak reached in mid-2007. That said, the National Association of Realtors® reported rising prices in 74 of the 146 markets they track in the first quarter of 2012 versus declines in 72 locales. Even more significant is the dramatic decline in some of the hardest hit markets:
There are positive signs spanning the spectrum indicating a turning real estate market, despite some weak spots across the country.
Just a few days ago, USA Today reported that the number of existing homes for sale had dropped 22 percent from a year ago and now totals just 2.37 million units. This is down 41 percent from the peak reached in mid-2007. That said, the National Association of Realtors® reported rising prices in 74 of the 146 markets they track in the first quarter of 2012 versus declines in 72 locales. Even more significant is the dramatic decline in some of the hardest hit markets:
- March inventory in Phoenix declined 64 percent from a year ago according to Arizona State University real estate expert.
- NAR reports very tight inventories in Phoenix, Orange County, California, Naples, Florida, Seattle, suburban Washington, DC and North Dakota (driven by the energy boom being experienced in that state).
- While mortgage delinquency rates remain above average (with average being 2 percent), they dropped from 6.19 percent in Q4 2011 to 5.78 percent in Q1 2012 according to TransUnion (based on a sample of 10 percent of US mortgage holders) and are down from a 7 percent peak in Q4 2009
- All-cash transactions in Q1 2012 made up 31 of all sales—and I doubt these people would be buying and paying cash if they thought property values would decline further
- 22 percent of all buyers were investors
- Condominium prices rose 3.4 percent when compared to Q1 2011
- Q1 2012 existing home sales were up 5.3 percent from the same period in 2011 and are now running at annualized rate of 4.57 million
- Total existing home sales in Q1 2012 were at the highest level since 2007
- Move.com reports that many of the hardest hit markets are now among the top recovering markets
Wednesday, May 16, 2012
Bank of America offering up to $30,000 for short sales
NEW YORK (CNNMoney) -- Bank of America is offering some struggling homeowners payments of up to $30,000 if they sell their homes in a short sale and avoid ending up in foreclosure.
Under the plan, Bank of America (BAC, Fortune 500) will offer homeowners so-called relocation payments of between $2,500 and $30,000 if they sell their home in a short sale. In short sale deals, the sale price of the home is less than what the seller owes the bank.
The bank first tested the payments in a pilot program in Florida last fall. Under that initiative, Bank of America paid up to $20,000 to borrowers who sold their homes in short sales.
"This program can help customers make a planned transition from ownership when home retention options have been exhausted or they have made a decision not to keep the home," said Bob Hora, an executive for the bank.
Under the plan, Bank of America (BAC, Fortune 500) will offer homeowners so-called relocation payments of between $2,500 and $30,000 if they sell their home in a short sale. In short sale deals, the sale price of the home is less than what the seller owes the bank.
The bank first tested the payments in a pilot program in Florida last fall. Under that initiative, Bank of America paid up to $20,000 to borrowers who sold their homes in short sales.
"This program can help customers make a planned transition from ownership when home retention options have been exhausted or they have made a decision not to keep the home," said Bob Hora, an executive for the bank.
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