Market Insights: 8-21-2009
By Larry Baer:
The National Association of Realtors reported this morning that sales of previously owned homes jumped 7.2% higher in July – posting its best performance since August 2007. July’s percentage increase was the largest monthly gain since the data series started in 1999. The July existing home sales data marked the fourth consecutive monthly improvement in this measure of activity in the housing sector.
There is a notable “fly-in-the-ointment” in this data set -- much of the recent sales gain in existing home sales has been a function of falling prices created by foreclosure sales and other distress motivated transactions. The median existing-home price has fallen by 15.1% on year-over-year basis. The share of homes sold as foreclosures or otherwise distressed properties held at 31% in July.
The massive government borrowing spree continues unabated – with Uncle Sam in the credit markets on Tuesday looking to borrow $42 billion in the form of 2-year notes, followed by Wednesday’s demand for $39 billion in the form of 5-year notes and wrapping up with Thursday’s request for $28 billion in 7-year notes. Be aware that last time around the demand for the 2- and 5-year notes was downright awful – which provided mortgage investors with all the justification they needed to push mortgage interest rates higher.
Keep your fingers crossed that the “safe-haven” appeal of government debt obligations and mortgage-backed securities continues to shine bright as the investment community debates the sustainability of the stock market rally. If, as I expect, those that argue stock values cannot be sustained at current levels without a solid increase in consumer spending ultimately win the debate – the rotation of capital out of riskier assets like stocks into safer investments like bonds and mortgage-backed securities should limit the upward trajectory of mortgage interest rates over the course of the next couple of weeks.
PROGRAM- Purchase
30 DAY
RATE DISCOUNT
CONFORMING 30 YEAR FIXED
80% LTV and >275,000 <= 417,000
5.125
0
CONFORMING 15 YEAR FIXED
80% LTV and >275,000 <= 417,000
4.50
0
CONFORMING 3-1 ARM
80% LTV and >275,000 <=417,000
4.125
0
CONFORMING 5-1 ARM
80% LTV and >275,000 <=417,000
4.125
0
CONFORMING 7-1 ARM
80% LTV and >275,000 <=417,000
4.625
0
VA/FHA 30 YEAR > $200,000
5.00
0
CONV. JUMBO 30 YEAR FIXED
75% LTV and > 417,000
6.45
0
CONV. JUMBO 5/1 ARM
75% LTV
4.50
0
120,150,180,270,360 day extended locks available
RATES AND POINTS ARE SUBJECT TO CHANGE WITHOUT NOTICE
EARL GRANT 719-260-2231
Friday, August 21, 2009
Thursday, August 20, 2009
Colorado Springs #3 for Housing Recovery
Best Cities For A Housing Recovery
Increased transactions and relatively low foreclosure resales spell good news for these markets.
In Depth: Best Cities For A Housing Recovery
The stock market is up 50% from its lows in March, and consumer spending increased in May, June and July. But when will housing turn around?
Even the wisest can't answer that, and experts caution against putting too much hope in rising home prices given the country's unemployment situation and high rate of mortgage defaults. But key measures indicate that some metros are more on their way to recovery than others.
Take Miami. Sales are up 27% over last year and only 3.5% of those are the result of foreclosure resales. In Lincoln, Neb., where sales are 15% higher this year than last, only 3.6% of them involved bank-owned properties Both top our list of markets on their way to health.
In Depth: Best Cities For A Housing Recovery
Behind The NumbersIn compiling our list, Forbes looked at 161 of the country's largest metropolitan statistical areas (or metros)--geographic entities defined by the U.S. Office of Management and Budget (OMB) for use by federal agencies in collecting, tabulating and publishing federal statistics--where sales activity had picked up over the last year, but where foreclosure sales, as a percentage of overall sales were the lowest. Our data came from Zillow.com, an online housing data firm based in Seattle, Wash. Our list doesn't profess to call the turnaround, but rather point out which cities are in the lead on the road to recovery.
To be sure, the national real estate picture remains grim. In Las Vegas and Madera, Calif., for example, respective sales are up 40% and 64% from a year ago. But 67% and 71% of those respective sales are from foreclosure resales.
The Rankings
10. San Jose, Calif.
9. Santa Barbara, Calif.
8. Redding, Calif.
7. Denver, Colo.
6. Bremerton, Wash.
5. San Luis Obispo, Calif.
4. Salem, Ore.
3. Colorado Springs, Colo.
2. Lincoln, Neb.
1. Miami-Ft. Lauderdale, Fla.
Other areas, however, are showing a spark at the very least and signs of bottoming at the very best.
Miami and Lincoln were followed by Colorado Springs, Colo., Salem, Ore. and San Luis Obispo, Calif. Here, sales have returned, but foreclosures are a relatively small percentage. In Colorado Springs, sales activity is up 14%, while transactions involving bank-owned properties made up one-fifth of them. While 20% is still a sizable chunk, it's relatively sound compared with areas like Bakersfield and Vallejo, Calif., and Phoenix, where over 50% of sales made up of foreclosures.
Because housing, like any asset, depends on supply and demand, the sales rate is an incredibly useful statistic in judging a recovery. However, an increased number of sales does not necessarily mean an imminent recovery.
"A bottom in sales volume is not the same thing as a bottom in home values," says Stan Humphries, chief economist at Zillow.com. "The former is a necessary precondition for the latter, but most economists expect prices to keep falling nationally through at least the early part of next year."
Increased transactions and relatively low foreclosure resales spell good news for these markets.
In Depth: Best Cities For A Housing Recovery
The stock market is up 50% from its lows in March, and consumer spending increased in May, June and July. But when will housing turn around?
Even the wisest can't answer that, and experts caution against putting too much hope in rising home prices given the country's unemployment situation and high rate of mortgage defaults. But key measures indicate that some metros are more on their way to recovery than others.
Take Miami. Sales are up 27% over last year and only 3.5% of those are the result of foreclosure resales. In Lincoln, Neb., where sales are 15% higher this year than last, only 3.6% of them involved bank-owned properties Both top our list of markets on their way to health.
In Depth: Best Cities For A Housing Recovery
Behind The NumbersIn compiling our list, Forbes looked at 161 of the country's largest metropolitan statistical areas (or metros)--geographic entities defined by the U.S. Office of Management and Budget (OMB) for use by federal agencies in collecting, tabulating and publishing federal statistics--where sales activity had picked up over the last year, but where foreclosure sales, as a percentage of overall sales were the lowest. Our data came from Zillow.com, an online housing data firm based in Seattle, Wash. Our list doesn't profess to call the turnaround, but rather point out which cities are in the lead on the road to recovery.
To be sure, the national real estate picture remains grim. In Las Vegas and Madera, Calif., for example, respective sales are up 40% and 64% from a year ago. But 67% and 71% of those respective sales are from foreclosure resales.
The Rankings
10. San Jose, Calif.
9. Santa Barbara, Calif.
8. Redding, Calif.
7. Denver, Colo.
6. Bremerton, Wash.
5. San Luis Obispo, Calif.
4. Salem, Ore.
3. Colorado Springs, Colo.
2. Lincoln, Neb.
1. Miami-Ft. Lauderdale, Fla.
Other areas, however, are showing a spark at the very least and signs of bottoming at the very best.
Miami and Lincoln were followed by Colorado Springs, Colo., Salem, Ore. and San Luis Obispo, Calif. Here, sales have returned, but foreclosures are a relatively small percentage. In Colorado Springs, sales activity is up 14%, while transactions involving bank-owned properties made up one-fifth of them. While 20% is still a sizable chunk, it's relatively sound compared with areas like Bakersfield and Vallejo, Calif., and Phoenix, where over 50% of sales made up of foreclosures.
Because housing, like any asset, depends on supply and demand, the sales rate is an incredibly useful statistic in judging a recovery. However, an increased number of sales does not necessarily mean an imminent recovery.
"A bottom in sales volume is not the same thing as a bottom in home values," says Stan Humphries, chief economist at Zillow.com. "The former is a necessary precondition for the latter, but most economists expect prices to keep falling nationally through at least the early part of next year."
Tuesday, August 18, 2009
Bringing the Dream of Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Latest news: NAR Research First-Time Home Buyer Tax Credit Webinar: September 3, 2009
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.
Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Latest news: NAR Research First-Time Home Buyer Tax Credit Webinar: September 3, 2009
Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
Subscribe to:
Posts (Atom)
