Mortgage bond prices fell last week pushing mortgage interest rates considerably higher. The bond market took a hit as inflation concerns emerged after the stronger than expected producer price index data. Producer prices surged in January amid higher energy costs to almost double expectations. The Fed made a surprise rate hike to the discount rate that also resulted in mortgage rate increases. The only positive was the tame consumer inflation reading Friday morning but we were unable to rebound from the earlier losses. Unfortunately rates rose over a full discount point for the week.The consumer confidence data Tuesday will set the tone for trading this week. New home sales, weekly jobless claims, and the gross domestic product data also may move the financial markets. The Treasury will auction $118B in 2/5/7-year notes starting Tuesday. The additional supply may cause interest rate volatility.
Fed Action Causes Uncertainty
The Federal Reserve caught market participants by surprise with their 25 basis point discount rate hike last week. While analysts were split on whether the Fed would raise rates this year, that question has now been answered. The move resulted in volatility in most of the US financial markets.The discount rate is the interest rate charged to commercial banks on loans they receive from the Fed. The rate hike is an effort to pull back the aid provided by extraordinary low rates amid the global economic decline. The Fed specifically noted the move was needed "in light of continued improvement in financial market conditions." Many analysts noted the earlier warnings from Fed Bernanke that rate hikes were coming but very few, if any, expected the move this soon.While the rate hike resulted in mortgage bond price weakness in the short-term, the long-term outlook is less certain. Most analysts believe inflation remains in check, but at the same time the Fed purchasing of MBS will soon be over. A cautious approach to "float" and "lock" decisions is prudent taking the current market conditions into consideration.
[1]RISMEDIA, February 22, 2010—As a first-time home buyer, Jessica Garcia was excited last April to officially begin her home search. She found a home within her price range, completed the lengthy paperwork and paid for the appraisals, only to later be told after four months that the deal would not close.
Out of luck and out of money, Garcia was frustrated, but not defeated. She went back to her Realtor to start the search again. It was then that she found the home she would later purchase. Upon first glance, Garcia liked the home and saw its potential, but didn’t have the upfront money it would take to rehab the home the way it needed to be done.
After some discussion, Garcia’s lender, Kevin Roy with Wells Fargo, realized that she might be able to take advantage of HUD’s 203k program, specifically designed to rehabilitate and repair single-family homes. The 203k is a single mortgage loan that provides funds to purchase a home and make repairs and improvements.
“The home needed a lot of work,” explains Garcia, of North Port, Florida. “The previous owners had pets that had really torn up the carpeting and destroyed the blinds.”
Indeed, the home needed new flooring, carpets and, most importantly, a water softener for its wellwater system. So, when the opportunity arose to take advantage of the 203k program, Garcia was game.
“In the end, it worked out great,” she says. “The credit goes to Kevin because if he hadn’t told me about the 203k program, I would not have had the money to fix the home. All of the money I had was put into the appraisals and fees for the first home that I couldn’t close on.”
Once the transaction was set in motion, Garcia turned to Lowe’s North Port (Florida) store to help her bring her 203k projects to fruition.
“The people at Lowe’s were really great,” lauds Garcia. “I had dealt with a different home improvement retailer in the past, but never had very good experiences. I went to Lowe’s because the people who work there are always friendly and I had heard good things about working with them. The people there really were great—they provided explanations to all of my questions and made my experience easy.”
From the 203k paperwork to guiding her through the program, Garcia credits the Lowe’s team with a job well done. “The team at my Lowe’s was very helpful,” she says. “A couple of people—including manager Mike Cabana—helped me tremendously.”
Prior to closing, Garcia went to the North Port location and chose her products for the 203k projects. Once closing happened in late September, the Lowe’s team prepared for Garcia’s projects, ordering her new carpeting, wood flooring, a water softener and new dishwasher.
“It was amazing,” says Garcia. “The day I closed, I called them and they immediately started ordering the materials and products. Within a few weeks, everything was done.”
According to Garcia, the timing couldn’t have been better. In addition to the improvements she made with her 203k loan, Garcia also took on a few DIY projects herself—including repainting the entire house.
“I decided to put the 203k money into quality carpeting, flooring and, of course, the water softener. I also really needed a dishwasher—the house didn’t have one,” she explains. “The little bit of time I had between ordering the materials and installation was perfect. It gave me just enough time to get all of the painting finished.”
Despite months of worry, confusion and stress, Garcia is now thrilled with her home—and her experience with Lowe’s.
“I am very happy,” says Garcia. “Everyone involved did such a great job and helped me so much…Lowe’s helped me choose exactly what I wanted for my home. I love this house!
“A lot of money goes into buying a home,” she adds. “The 203k program is a great option. It allowed me to do far more than I would have been able to do on my own. As a first-time home buyer with a limited amount of money, it allowed me to do a lot and get exactly what I wanted. Working with Lowe’s was perfect, too. From their affordable prices to the customer service, it was a great experience overall. I would highly recommend both the 203k program and Lowe’s to anybody.”
For more information on the 203k loan program, visit www.hud.gov [2] or www.re-buildusa.com [3].
It’s easy pickings out there for many potential homebuyers. Housing prices are at their lowest in more than a decade, inventories are high, analysts are predicting a new wave of foreclosures and the government is offering two substantial tax credits for which many homebuyers qualify.
But bargain buyers beware, warns Vince Mastronardi, whose property preservation business has been busy preparing foreclosed homes for sale.
“Buyers need to educate themselves about the potential pitfalls of purchasing distressed property,” says Mastronardi, president of On-Site Specialty Cleaning & Restoration. “It’s not so much what damage occurred, but the source of that damage and how long before the problem was addressed.”
These 10 signs may indicate that trouble is around the corner.
1. Unheated house in winter months. If the home has been properly winterized, there’s no need for heat. But if the home has not been properly winterized, pipes will burst and cause water damage.
2. Missing sinks, toilets and other fixtures. Make sure they’ve been properly removed and not ripped from walls and floors.
3. Peeling, bubbling, and discolored paint; swelling in walls or ceilings (especially around kitchens and bathrooms) or a musty odor all indicate water damage and, potentially, the presence of moisture and mold.
4. Fungus growth inside cabinets, behind drawers and built-ins. Fungus could mean that there has been water damage. Since water falls down, look for the source above the mold.
5. Blocked drains or pipes will cause future problems and may have already created sewage backups.
6. Black cobwebs, greasy gray residue on walls and/or a strong oily odor. This could point to potential soot damage or a malfunctioning furnace.
7. An older home with extensive renovations. Check with the city for pulled permits in order to get remolding details. If asbestos is present and has been disturbed, be sure it’s been remediated by a certified specialist.
8. Excessive painting of every nook, cranny, door and floor may mean that the seller is covering up mold.
9. Discolored subflooring. From the basement, check the subflooring above for stains and small holes, both caused by mold.
10. Air Quality. The air quality within a home tells a lot about the home’s condition. Be sure to include air and surface testing in your home inspection. It’s a few hundred dollars well spent.
“Time and technique are the most important factors of effective clean-up and preventing future problems like mold or contamination,” Mastronardi explains. “Ideally, professional cleanup begins within a few days of the damage; technicians are trained, certified or licensed; and equipment is specialized and up to date.”
Ask the seller to explain how the damage was fixed. Plus, check out the company that performed the repairs to ensure it has industry-recommended certification. If needed, follow-up with the seller or repairing company for specific repair details.
Mortgage bond prices rose last week pushing mortgage interest rates slightly lower. Reignited fear of a global economic meltdown sent money into the mortgage bond market in flight to quality buying. The news reports were permeated with worries about European debt payment defaults. Greece and a few other countries were noted as specific concerns. The employment report Friday morning was mixed with unemployment not as bad as expected but a larger than expected drop in payrolls. For the week interest rates fell by about 1/4 of a discount point.The record debt issuance continues with billions of dollars worth of notes and bonds set for auction this week. Strong foreign demand will likely help the entire bond market. With the recent "revisions" to employment data the weekly jobless claims data will carry a bit more weight than usual. Retail sales figures will be the headline figure this week.
Employment Revision
The employment report is one of the biggest, if not the biggest, data releases each month. Last week's employment report came with more twists than usual. Unemployment came in at 9.7%, a sharp drop from the expected 10% mark. Payrolls fell 20,000, weaker than the expected 15,000 increase. This divergence happens from time to time with the data derived from two completely different surveys. One piece of the report that caused major concern was the annual benchmark update, which showed the economy lost 930,000 more jobs than previously estimated in the 12 months ended March 2009. The revised number was very large and basically indicates 2009's employment situation was worse than most thought.A few things that called into question the accuracy of the data influenced the report. Some analysts argued the hiring of temporary census workers threw the figures off. The data was received with a lot of uncertainty and resulted in some wild market swings immediately after the release. The initial reaction sent bond prices lower and interest rates higher. However, the bond market rebounded a bit after digesting the data for an hour or so. This was a prime example of the volatility that often occurs with major data releases.
Study: Raleigh-Cary ranked No. 3 in five-year jobs growth
The number of jobs in the Raleigh-Cary area grew 10.3 percent during the five-year period that ended in December – the third best performance among the 67 U.S. metros with a population of at least 750,000.
A study of U.S. Bureau of Labor Statistics data conducted by G. Scott Thomas of Buffalo Business First, a sister paper of Triangle Business Journal, found that Wake, Johnston and Franklin counties added 47,600 jobs between December 2004 and December 2009, bringing the area’s total number of jobs to 508,300.
Raleigh-Cary ended up on the positive side of the jobs ledge despite losing nearly 20,000 jobs over the past two years. The area had 527,700 jobs in December 2007. Still, Raleigh-Cary trailed only two Texas metros in percentage job growth over the five-year stretch. Austin led the way with 14.2 percent growth, to 781,000 jobs. San Antonio was second at 10.6 percent, to 847,700.
The only other North Carolina metro with at least 750,000 residents, Charlotte, also gained jobs during the five years studies. The Queen City added 24,200 jobs, or 3.1 percent – to 811,600 – despite taking a major hit on the jobs front with the financial crisis and the shedding of thousands of banking jobs.
The Durham metropolitan area was not big enough to be included in the study.
Texas posted the strongest performance, with four of the top six metros in terms of percentage gain. Houston, No. 4 in percentage gain at 8.9 percent, was No. 1 in raw gain at 206,600 jobs added over the five-year stretch.
Texas and North Carolina fared better than most areas of the country during the five years ended in December 2009. Nearly two-thirds of the 67 major markets have fewer jobs now than they did in 2004.
Detroit has suffered the worst – no surprise, given the woes besetting domestic automakers. The Detroit area has lost 343,700 jobs during the past five years.
Los Angeles and Chicago have also suffered six-figure declines. A total of 200,700 jobs have slipped away from L.A. since 2004, and 173,300 have vanished from the Chicago area.
Detroit also ranks the worst in terms of percentages. One-sixth of Detroit’s jobs -- 16.5 percent -- have disappeared in the past half-decade. New Orleans, which was battered by Hurricanes Katrina and Rita early in the study period, has suffered a five-year loss of 14.9 percent.
Buyers are interested in getting info right away. Do you think from a customer's point of view they would prefer to drive by a house for sale and get:
a) a web link
b) a phone number they may or may not get a person
c) pick up a flyer
d) a phone number for a pre-recorded message
As agent what is working for you right now? As a potential customer which would you most prefer?
TriangleCurbsideConnect.com
Mortgage bond prices fell last week pushing mortgage interest rates higher. The bond market took a beating as stocks surged despite mixed data. Existing home sales in November rose a surprising 7.4%. However, revised gross domestic product figures showed the economy only grew 2.2%, which was weaker than the expected 2.8% mark. Personal income and outlays data came in weaker than expected helping a bit. Unfortunately, the thin trading conditions magnified the earlier losses and made it difficult to recover. For the week interest rates rose by about 1 3/8 discount points.The Treasury auctions will take center stage next week. If foreign demand falters we will likely see mortgage interest rates head higher. The bond market will close early Thursday in advance of the New Year's Holiday Friday. The shortened trading week may result in some market volatility coupled with thin trading conditions likely.
Consumer Confidence Index
The Conference Board releases the Consumer Confidence Index on the last Tuesday of every month. The report details the levels of confidence individual households have in the performance of the economy. The data is derived from a survey of 5,000 households nationwide. The survey polls consumer opinions on current business conditions, their jobs, their incomes, and their future spending plans.The consumer confidence index is significant in that it provides a precursor into consumers' willingness to spend in the months ahead. However, many analysts point out that willingness to spend does not always convert to actual expenditures.Despite economic uncertainty, liquidity issues, and housing market weakness, American consumers continue to spend. However, many analysts question whether consumers can continue to buoy the economy, especially amid rising unemployment and continued tight credit.This week's release will be eagerly anticipated. Look for any variation from estimates to cause mortgage interest rate volatility. Signs of eroding consumer confidence could lead to improvements in mortgage interest rates. However, stronger than expected figures could spike rates higher.With mortgage interest rates relatively low, capitalizing on current levels is recommended to protect against future volatility. Remember, mortgage interest rates tend to trend lower slowly, while increases tend to occur quickly. A cautious approach is necessary to protect from future market volatility.Provided by WR Starkey
RISMEDIA, November 24, 2009—(MCT)—
House shopping usually slows down in the winter, as people put their home searches on hold to trim the tree, buy presents to put under it and avoid the chilly weather. This winter, however, might be different, thanks to the extended—and expanded—first-time home-buyer tax credit.
“We’re going to see far more interest in the fourth quarter than we generally do because of the tax credit,” said Heather Fernandez, vice president of Trulia.com, a real estate search engine. Traffic surged on the site on Nov. 5, the day Congress approved the credit extension, she said.
The new law extends the tax credit for first-time home buyers and opens it up to some existing homeowners as well: The credit is now 10% of the home price, up to $8,000 for first-time buyers and up to $6,500 for repeat buyers. All buyers must have a binding contract on a house in place on or before April 30, 2010. The sale must close on or before June 30. 2010.
To be considered a first-time home buyer, an individual must not have owned a home in the past three years. And to be eligible, existing homeowners need to have lived in the same principal residence for five consecutive years during the eight-year period that ends when the new home is purchased. The credit is only for principal residences.
Income limits have risen as well. According to the IRS, the home buyer tax credit now phases out for individuals with modified adjusted gross incomes between $125,000 and $145,000, and between $225,000 and $245,000 for people filing joint returns.
The inclusion of move-up buyers might inspire homeowners to take action and list their house if they’ve been putting it off, said Carolyn Warren, a Seattle, Wash.-based mortgage broker and banker and author of the book Homebuyers Beware. “If somebody loves their home, it’s not going to entice them to sell. If they’ve had it on the back of their minds and really would like to move up, it might push them into doing it sooner than later,” Warren said.
The credit isn’t expected to have as large of an effect on move-up buyers as it has on first-time buyers, according to the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions. The maximum tax credit is about 4% of the average purchase price for first-time buyers, but about 2% of the average purchase price for move-up buyers.
“We estimate that the first-time home buyer tax credit will result in a 10% increase in home sales from March through November of 2009,” said Thomas Popik, research director for Campbell Surveys, in a news release. “We’d expect the effect of the proposed tax credit for current homeowners to be about half as large—from December until the tax credit expiration in the spring of next year, it might be 5% of 3 million transactions, or about 150,000 incremental home sales. Incremental sales to first-time home buyers could be an additional 300,000, for a total of 450,000 incremental sales due to the tax credit extension.”
Tips for buyersInterested in buying a home and claiming the home-buyer tax credit? Below are five tips:
1. Don’t procrastinate. Start searching for a home now. Getting an early start will give you a better chance of finding the right house before the credit deadline. Before you start house hunting, get preapproved for a mortgage, said Eddie Fadel, a Miami-based mortgage banker, and do a realistic assessment of what you can afford. Buyers who have to sell an existing home should price it aggressively from the beginning to drum up interest and get a buyer as soon as possible.
2. Don’t count on another extension. The credit won’t be available forever, Fadel said. If you want to take advantage, be sure to make that spring deadline.
“This is a medication for the housing crisis. Once the patient—which is the housing market—cures, there will be no medication needed,” he said.
3. Mind the interest rates. Mortgage interest rates are low right now, but will likely rise next year. Higher rates will affect your monthly mortgage payments, thus the affordability of the house you are buying. Average rates on the 30-year fixed-rate mortgage have been hovering around 5%, but when the government stops buying large amounts of mortgage-backed securities, rates could rise.
4. Communicate with your lender. Throughout the process, make sure you’re communicating with your lender regularly; if there’s a piece of documentation you’re asked for, get it turned in as soon as possible, said Doug Heddings, a New York-based real estate agent with Charles Rutenberg Realty. Good communication is important in making sure the loan closes on time. And think twice before pursuing a short sale if you want to make the credit deadline. That’s where someone sells a home for less than what he or she owes on a mortgage, with permission of the lender. The process can be lengthy and unpredictable because the homeowner’s lender has to approve any deal, and can be complicated when there is a second mortgage associated with the property.
5. Don’t take shortcuts. Don’t forgo any of the steps you would normally take just to make the tax credit deadline. Make sure the house is a good fit for your needs and get a home inspection. Skipping steps could cost you in the long run.
Well I gotta say that this market is surely shaping up to be a whirlwind! Besides listing "Short Sales" how many of you are writing offers up on "short sales". I tell you I've been in this business a long time so i really don't need the practice any more!LOL Yeah, I guess when you do enough of these types of sales you know what to expect, but when I go to write an offer on a property that my clients want, I feel as though someone is scratching a chalkboard with nails when the listing agent on that property indicates she is gonna send in "ALL" offers to the bank. I'm like aren't you only gonna send the best one, "Oh no they want all of them". Well how many is that, oh TEN.....Okay is it just me or do other people feel that you give these Loss mitagators multiple choices and we've lost the war! I really can't beleive with all the classes available to us a agents that we still have agents that don't know how to do short sales ..... I guess I'm old fashioned but I feel we need to know how to do our job, so take some time to learn. The market is changing fast and we have to adapt with it. I use short sale genius and they are wonderful! The software alone is worth it, to keep track. I've recently become an Ambassador for Helping a Million Homeowners. My goal is to help these homeowners leave the home they have been living in with dignity. Come on people we are the professionals! I take my commitment to my clients seriously. Yeah . it's alittle crazy at times but I love it! when everything works out and they are released of that burden, come on, that's when we look at why wer'e doing what we do and SMILE!!
Hey everyone, Have an awesome day!!!
Yes, I said it.... I find no joy in taking listings. Instead, I find it extremely rewarding when I sell and close on houses. Like a bank, its primary focus is to make loans, not to hold inventory. Same applies to a Real estate agent. Over the years, I am trying to perfect my selling strategy, hence I employ the Systematic Home Selling strategy to all my homes. If 1 cannot meet all the criterias, I really could not take the listing.
The Systematic Market Approach to Home Selling employs these strategies:
(1) PricingI do not use a CMA - Comparative Market Approach. What I use is a pricing strategy very similar to what a home appraiser would use. I would give credit to all the upgrades and features (something that a Seller loves to hear, rather than Nope, your Board-on-board fence brings no added monetary value). Likewise, if a home lacks certain features and it could hurt. This pricing strategy takes over several hours to do. It studies Sold data and studying what this new listing needs to be priced at in order to be competitive based on its market availability.
(2) Internet MarketingIt is important to understand Internet Marketing and how capitalizing on different sites can capture more audiences for the Seller's home. Just having a website is NOT sufficient. Here in the Frisco TX area, our MLS automatically gets fed onto Realtor.com. However, based on my recent observations, buyers no longer use Realtor.com website as their primary search tool. My Systematic Market Approach utilizes Internet Marketing, websites, search engine optimization techniques and RSS syndications. Most Sellers do not understand the complexity of it but in the end, they know that I am out there on the World Wide Web for them.
(3) Home Preparation/ Staging
As part of the Systematic Market Approach to Home Selling, preparing the home for top-notch contract is essential. It includes staging. As an Accredited Staging Professional Realtor(R), I would come up with a Recommended staging list for home seller at the end of the listing interview. If the seller prefers to use a Professional Stager, a referral will be given to them. Staging is a part of a requirement that I would take the listing.
(4) Lifestyle Marketing
Every home has a story. My job is to tell the story and relate to Buyers on an emotional level. At the same time, I relate to Buyers on a personal level in terms of life conveniences. Hence, I not only market the home, I market the location. This by far has been the differentiator to my marketing strategy.
(5) Execeptional Photography Skills
They say that words speak a thousand words. With my passion for photography, I am able to translate that passion into my work - still photography and virtual tours.
(6) Other Details
(Credit given to Missy Caulk) I send a pre-listing interview prior to every the meeting. It helps me understand the willingness of client in preparing their home for sale, financial/ mortgage situation, and quite importantly, if they are planning to interview other Realtors(R).
(Credit given to Broker Bryant) I work on a 45-day listing. I understand that home selling can be stressful itself, and especially not knowing if the Realtor(R) would stick a sign in the yard, then disappear into Neverland. This 45-day listing is to show how I work and see if I could gain trust and confidence from my Seller clients. I reiterate to them that I may not guarantee selling the house in 45-days, but I want to earn their trust in 45 days. Sellers know the market and they do not expect miracle performances. What they want is an Agent who will be there for them, and guide them through this process.
Employing this Systematic Market Approach strategy has landed me contracts typically within 30 days - yes, in this market. Some with multiple offers. I do believe with all my heart that it works.
I have many people coming up and asking me about how things are going for me in real estate these days. Most of them are concerned, for they find it hard to believe anyone can survive in this volatile market. Many of them are just interested in learning any information they can about real estate or how our market is doing, which of course I am always happy to talk about.
But most ask me the same question...so...”Are you selling a lot of HUD and Foreclosure homes to your Buyers?? ”My response to this question is surprising even to me, “No, I am not selling a lot of HUD or foreclosed homes. “ (And believe me it is not for lack of showing them!) But how can this be??
Nearly every time I begin working with a new Buyer they request the same thing...”I am really looking for a HUD or Foreclosed home that I can get a good deal on and fix up.” They all see the media where they hear of Buyers finding their dream home for cents on the dollar, which even appear to be in quite good condition. What they don’t yet realize is that although this can and does happen it is most often the exception not the norm...until they begin looking that is.
Once we begin our viewing of these homes they start to see the sad and true reality of what the HUD and Foreclosure market really is. The vast majority of these homes are in great distress that will require many $1000.00’s of dollars and hours of hard work to bring them back to a livable condition. Once they take all this into consideration the bubble bursts! Their home buyer vision seems to shift and the request comes...”Can we take a look at some homes that are not HUDS or Foreclosures?”
Just as an example: I was recently showing a distressed home to a Buyer and when we began to walk into one of the kids bedrooms it smelled STRONGLY OF URINE! My Buyer didn’t even make it into the room and walked immediately right out of the house. He was done. When I contacted the listing agent to let her know what had occurred her response was, “Oh, I know...one of the older kids is a bed wetter and it’s JUST the mattress!” Now maybe I’m expecting a little too much, but personally, I would get that mattress OUT OF THERE. Distressed homes are difficult enough to sell but this could have quite easily been taken care of.
It is now when the Buyers notice that even though our market is loaded with HUD and Foreclosed homes there is also a good selection of homes available for sale that are not...and priced very well. Often when comparing these ”normal sale” homes (if there is such a thing as a normal sale these days) to the HUDS and Foreclosures, then taking into consideration the money, time and resources they will require just getting into to the home, it becomes quite overwhelming , the HUD and Foreclosed homes seem to just fall by the wayside.
Now, I am not saying there are not good deals out there in the HUD and Foreclosure Market only that it takes someone with a strong motivation, the time, the talent and the financial resources to take on these homes and many of our First Time Home Buyers are finding they are either not willing or capable of doing this ....and their vision shifts.
If you are a First Time Home Buyer is a HUD or Foreclosed Home is What You Really Want? You may just surprise yourself so be sure to keep your options open.
People in the Triangle made more money, with fewer living in poverty, last year despite the worst economic conditions in decades, according to data released Tuesday by the U.S. Census Bureau.
Local-level data from the American Community Survey show a median income of $57,600 for the estimated 636,510 households in the federally defined Raleigh-Durham-Cary Combined Statistical Area. That’s up, in inflation-adjusted 2008 dollars, from $55,332 in 2007 and $55,206 in 2006.
The income gain in the Triangle went against the grain statewide and nationally. North Carolina median income fell 5 percent, to $42,930, while U.S. median income slipped 3.6 percent, to $50,303.
The survey, which is conducted each March, found that 11 percent of Triangle residents lived in poverty in 2008, down from 11.6 percent in 2007 and 12.1 percent in 2008. The rate of children younger than 18 in poverty fell to 13.7 percent, from 14.5 percent in 2007 and 15.8 percent in 2006.
The poverty percentages are based on income levels for that year. For example, if a child lived in a household of four with 2008 income that fell below the poverty line, that child would count as an individual living in poverty.
The poverty rate among Triangle families hit 7.4 percent, down from 8 percent in 2007 and 2006. Married couples with children fared much better than households headed by a woman, with no husband present. Just under 5 percent of married couples with children had income below the poverty line, compared to 28.7 percent of single woman-led households with kids. The difference was even more dramatic for families with children under 5 years old. Of the married parents’ households, only 3.6 percent were in poverty, down from 6.8 percent in 2007. Among the single women-led households with young children, 45.3 percent were in poverty, up from 42.9 percent in 2007 and 32.8 percent in 2006.
While poverty was down across the board, the percentage of households receiving government assistance grew slightly. The percentage of households receiving food stamps grew by 0.4 percentage points, to 6.5 percent, while the percentage receiving cash payments ticked up to 1.3 percent, from 1.2 percent. In addition, 20.1 percent received Social Security benefits.
The Census Bureau also released data at the county level and for selected municipalities – including Raleigh, Durham and Cary. Here are brief profiles of the four largest Triangle counties and the three largest municipalities.
• Median income, 2008: $52,484;
• Median income, 2007: $47.300;
• Percentage of people in poverty, 2008: 12 percent;
• Percentage of people in poverty, 2007: 12.2 percent;
• Percentage of households with more than $200,000 in 2008 income: 2.4 percent.
• Median income, 2008: $51,028;
• Median income, 2007:$48,923;
• Percentage of people in poverty, 2008: 13.6 percent;
• Percentage of people in poverty, 2007: 16.2 percent;
• Percentage of households with more than $200,000 in 2008 income: 4 percent.
• Median income, 2008: $54,390;
• Median income, 2007: $57,134;
• Percentage of people in poverty, 2008: 14.5 percent;
• Percentage of people in poverty, 2007: 14.1 percent;
• Percentage of households with more than $200,000 in 2008 income: 8.3 percent.
• Median income, 2008: $65,180;
• Median income, 2007: $63,992;
• Percentage of people in poverty, 2008: 9.1 percent;
• Percentage of people in poverty, 2007: 8.3 percent;
• Percentage of households with more than $200,000 in 2008 income: 6.5 percent.
• Median income, 2008: $91,603;
• Median income, 2007: $93,272;
• Percentage of people in poverty, 2008: 3.9 percent;
• Percentage of people in poverty, 2007: 3.9 percent;
• Percentage of households with more than $200,000 in 2008 income: 13.2 percent.
• Median income, 2008: $47,746;
• Median income, 2007: $47,169;
• Percentage of people in poverty, 2008: 15 percent;
• Percentage of people in poverty, 2007: 18.3 percent;
• Percentage of households with more than $200,000 in 2008 income: 3.4 percent.
• Median income, 2008: $53,735;
• Median income, 2007: $52,251;
• Percentage of people in poverty, 2008: 13.3 percent;
• Percentage of households with more than $200,000 in 2008 income: 5.1 percent.
Mortgage bond prices fell last week pushing mortgage interest rates higher. Producer Price Index (PPI) data release last Tuesday was much higher that expected and sparked inflation fears. That data set the tone for negative trading early in the week. Thankfully, the Consumer Price Index (CPI), a better gauge of overall inflation, was lower that expected helping interest rates recover. For the week interest rates rose about 3/8's of a discount point.The record debt will once again take center stage this week. If foreign demand remains strong, rates should remain the same or even improve. The Fed meeting will be the most significant event this week. While no adjustments are expected, the Fed remarks will be carefully weighed.
New Home Sales
New Home Sales data is compiled monthly by the Department of Commerce's Census Bureau and is gathered from builders throughout the country. The data represents new home sales for the nation as well as four areas of the country: the Northeast, the Midwest, the South, and the West. Information on the average price of a home, the number of homes for sale, and the supply of unsold homes are also provided. The data is an important indicator because it shows any strength or weakness in the housing sector. A slowdown in new home sales tends to lead to a slowdown in housing starts, which will continue to affect other indicators. New Home Sales data is often volatile and difficult to predict. Most analysts look at a three-month average in order to see any trends in the growth rate. Surges in the release are often greeted with little more than an average reaction in the bond market. However, the data remains significant in showing the condition of the housing sector of the economy.
Conforming
APR
Payment per$1,000
Jumbo
30-Yr. fixed
4.75%
4.865%
$5.22
6.25%
6.363%
$6.16
15-Yr. fixed
4.25%
4.447%
$7.52
5.625%
5.810%
$8.24
30-Yr. fixed FHA/VA
4.875%
4.991%
$5.29
n/a%
0.000%
$0.00
5-Yr. fixed ARM
3.5%
3.607%
$4.49
4.853%
7-Yr. fixed ARM
4%
4.110%
$4.77
5.25%
5.357%
$5.52
HELOC
5%
5.117%
$4.17
5.105%
Graduated Fixed
3%
3.104%
$4.22
*Rates are subject to change due to market fluctuations and borrower's eligibility.
[1]RISMEDIA, September 18, 2009—(MCT)—Tired of paying rent and enticed by a first-time home buyer tax credit, 25-year-old Garrett Rebel began his search for a home in August, scouring the suburbs of Dallas for a house to meet his current and future needs. And he’s already running out of time.
The federal tax credit for first-time buyers is “a huge motivator” for Rebel, and he may end his search if the Nov. 30 deadline arrives and he still hasn’t closed on a deal. He unsuccessfully submitted an offer on one house; after going back and forth with the seller couldn’t come to a price agreeable to both parties. “I haven’t found anything that I’ve fallen in love with,” Rebel said.
Timing is everything for many first-time buyers today. For those who purchase a home this year, the tax credit is for 10% of the purchase price, up to $8,000. Those who have owned a home in the past three years aren’t eligible. Buyers also have to meet eligibility requirements regarding income; the current credit begins to phase out for singles who make more than $75,000 and couples who make more than $150,000.
Unless it is extended, this credit will expire on Nov. 30. “We are seeing an increase in buyers wanting to get closed prior to the tax credit closing deadline,” said real-estate agent Amy Downs, who represents Rebel. “We are seeing an increase in sellers wanting to get their homes on the market and closed by this deadline. I feel that if we can get the homes priced accordingly and a strong offer by mid-October, we can beat this deadline with a reputable lender working the buy side.”
Some real-estate agents and mortgage brokers are recommending that first-time buyers close no later than the week before Thanksgiving to ensure that no holiday-related office closings or abbreviated schedules interfere with the process. That means finalizing a purchase on or before Nov. 20. In fact, to make sure you can take advantage of the credit, it’s probably best to go under contract no later than the first or second week of October, said Jim Sahnger, mortgage planner with Palm Beach Financial Network in Florida.
The National Association of Realtors reports that it’s taking about two months to complete a home sale in the current market, as lenders scrutinize borrower paperwork and issues with appraisals pop up. In short, first-time buyers probably need to select a property and make an offer by the end of this month. But rushing to meet the deadline is a double-edged sword. The purchase of a home—let alone your first one—isn’t a decision that should be taken lightly.
“For anyone, the decision to buy a house has to be a right one,” Sahnger said. “While the $8,000 can be great to have, I wouldn’t let that force you into a decision. But there is something that works and you want to take advantage of the credit, you can’t afford to delay the decision.”
For buyers who don’t make the deadline, there is a chance the credit will be extended. There are at least 20 bills drafted regarding the credit; one-third of them have been introduced recently, said Lucien Salvant, managing director of public affairs for NAR. Some proposals would not only extend the first-time buyer credit into next year, but would also expand it to include all home buyers, remove income restrictions and raise the maximum amount of the credit, up to $15,000.
By including all buyers, there could be more of a ripple effect as more Americans spend money on moving vans, lawn equipment — any items or services associated with making a move, said Jerry Howard, president and CEO of the National Association of Home Builders. NAHB and NAR have been lobbying heavily for the extension. “The first priority is going to be to renew the $8,000 credit, but we have some good arguments for expanding it,” said Jerry Giovaniello, senior vice president and chief lobbyist for NAR. He argues that the credit doesn’t cost much but has a huge impact.
If you’re a first-time buyer, however, waiting is a gamble. “What you have in front of you now is a tax credit. After that, you don’t know what you have,” Salvant said. “This thing can go all different kinds of ways.”
NAR estimates that about 1.8 million to 2 million first-time buyers will take advantage of the tax credit this year, and says that roughly 350,000 sales wouldn’t have taken place without the credit.
But the effectiveness of the credit will eventually peter out because there are only so many potential first-time buyers, said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California. He said that the credit is likely getting many first-time buyers to make their purchases six months to a year earlier than they would have anyway. “In terms of how effective it is, I don’t think it does any harm at this point. It’s pushing sales forward that would have happened anyway,” he said. “You’re giving money to people who were going to buy anyway.” Increasing the credit amount to $15,000 and expanding it to everyone, however, could end up translating to higher home prices, he added.
Still, there is growing Capitol Hill support for the extension of the credit. Senate Majority Leader Harry Reid, D-Nev., said it needs to be extended by the end of the year, according to a spokesman from his office. And Washington Research Group, a unit of securities firm Concept Capital, recently put the chance of extension at 60 percent.
Yet with Congress currently focusing on other issues, and concerns about the country’s rising deficit, some wonder how difficult it will be for housing to garner attention anytime soon. “All eyes are on health care,” said Bruce Hahn, president of the American Homeowners Grassroots Alliance.
According to Realtor.com, first-time buyers on average search 12 weeks to find a home. But there are ways for buyers to expedite their journey to closing: Sign up for automatic alerts for properties that fit your criteria. Many buyers start their search online, and it’s possible to sign up for e-mail alerts when properties that meet your criteria are added, Realtor.com points out. If you’re working with a real estate agent, he or she also may be able to register you for automatic alerts when homes are listed. But make sure the information you receive is fresh — you don’t have time to look at unavailable homes.
Do all you can to ensure a smooth mortgage process. Collect pay stubs, bank statements and tax returns to prove income. Get prequalified. And while your loan is in process, don’t make major purchases on credit cards — that could delay closing, said Julie Reynolds, a spokeswoman for Realtor.com.
Prepare for closing costs early. Get your insurance company and, if applicable, your homeowner association, to forward a cost estimate to the escrow company early, Realtor.com recommended in a news release. In many states, closing costs must be paid — in cash — at closing.
(c) 2009, MarketWatch.com Inc.
This day will never leave my thoughts and the lives of so many people that the event of some terrorists acted out and hurt so many Americans.
Please remember all the hurt and keep the families in your thoughts !
Description
07/08
07/09
% Change
Wake County
Number of detached sales
1228
1043
-15.07 %
Number of townhouse sales
295
277
-6.10 %
Number of condo sales
102
82
-19.61 %
Number of new construction sales
532
326
-38.72 %
Number of re-sales
1093
1076
-1.56 %
Average detached sales price
$307,730
$274,910
-10.67 %
Average townhouse sales price
$180,981
$169,502
-6.34 %
Average condo sales price
$144,853
$160,305
10.67 %
Average new construction sales price
$330,282
$317,120
-3.99 %
Average re-sales price
$247,344
$226,252
-8.53 %
High Sale price detached
$5,000,000
$2,760,000
-44.80 %
High Sale price townhouse
$803,500
$375,000
-53.33 %
High Sale price condo
$464,500
$600,000
29.17 %
High Sale price new construction
$2,325,000
18.71 %
High Sale price re-sale
$1,100,000
-78.00 %
Average Sales Price for the entire area
$274,496
$247,381
-9.88 %
Number of Listings for the entire area
9100
8588
-5.63 %
Average List price for New Construction for the entire area
$441,019
$428,897
-2.75 %
Average List price for Re-sale for the entire area
$332,725
$332,002
-0.22 %
Average List price for the entire area
$367,498
$356,054
-3.11 %
I often get these questions on almost every listing consultation I go on. But once explained and proved, most sellers agree with me to list there home at a reasonable starting price.
Pricing a home at market value is one of the best ways to get a home sold, especially in today’s market when home buyers are looking for a deal. Below explains why you have to play the numbers right in order to get prospective buyers off the sidelines.
Average number of days a home spends on the market: 3-8 months in the triangle, depending on price point and location. The market is primarily first-time homebuyer driven at this time, therefore higher priced properties are taking longer to sell.One way to help sellers understand the importance of pricing is…to get the seller in the car and have them see competing properties. That’s a real eye opener. You also have to show them a history on the property and show them how property prices in their area have responded to this market. It truly is a mathematical equation—not emotional.Keep meetings productive by…Setting an agenda and a time and sticking to it. Empower sellers by educating them—they need factual data and sound bites. Sellers and buyers, like customers, need to deal in fact. What’s the best strategy to get buyers to see a listed home?Today, pricing is clearly the most important thing—list with a skilled real estate professional, price at market value and make sure the home is in the best showing condition possible. It also means allowing a sign in the yard, staging the home so that it’s ready to show and insuring all marketing is in place the first day it goes into the MLS. In our area we have a regional MLS and agents can get the MLS/CSS lockbox code that allows your property to be shown by all Realtors. It’s a numbers game.
How can local real estate professionals team up to find success?Events can help draw people to a home, neighborhood, or subdivision. We have a unique marketing concept which teams up with other brokers and give the public many homes to preview in one area. These events also say to our seller, “I’m going all out for you—maximizing the opportunity you have rather than going about selling the home in a passive way.”
How are you reaching out to first-time home buyers?When we saw the market getting soft three years ago, we decided to make a large investment in technology. We are very dialed-in to social networking and Web 2.0 and have really invested in them. When you have more time on your hands, it’s the best time do so. Our sphere of influence, personal websites, social networking, blogs, Twitter, LinkedIn, Facebook—all of those. I think today you have to keep your business fresh and out there. Traditional Real Estate marketing doesn’t work and the Realtors that do not embrace Web 2.0 will be left in the dust. It is a proven fact that, more and more are staring out searching the net and no it’s not just that web site of listing after listing. They are searching out those connected Realtors on many social networks well before first face to face contact. Also, whenever we have a success story from social networking, we promote it throughout the company. I do think that Gen X and Gen Y are communicating that way and that’s how we can reach these groups.
How are you staying one step ahead of the local competition?Like most people, we could see things were not going to remain the same. We went out, negotiated a suite of products— Realtor.com, Googlebase, websites, flyers, home tours, etc.—so we could drive the price down for our marketing effort, just like everyone else in these slow times. But we did not reduce the quality of our marketing, just got smarter about what works and what doesn’t anymore. We revamped our website for a strong back engine and site optimization. So we knew if we took our optimized website and linked every social site to ours, it would make a difference for us and our customers.
Where have you stepped up your training initiatives for today’s marketplace?A big push that we’ve had in training is a real dynamic class on short sales. We have a manager and sales agents that have truly broken the code on working with the lenders. How to price the property and how to use the lender check list, for example, because every lender has different short sale package requirements. If your package is missing one piece, it goes to bottom of the heap, and the homeowner and buyer wait. We made a commitment to embrace this and make sure we have the best training in this particular niche. There are always things you can do better but that’s one area in which we’re proficient. And now that the banks have become more efficient, having the two working in tandem gives us a higher percentage of seeing short sales go to closing.
Mortgage bond prices fell last week pushing mortgage interest rates higher. The gains we had mid week were basically erased as stocks remained strong. The DOW rose despite continued signs the labor market remained weak. Fortunately there were news reports indicating the Fed may continue the purchase of mortgage bonds into 2010 in an effort to keep rates relatively low. The last thing the Fed and the housing sector need are higher rates. The Fed continued to purchase billions of dollars worth of mortgage-backed securities but even with that rates remained volatile. For the week interest rates rose about 1/4 of a discount point.The employment report Friday will be the most important data this week. ISM Index data and revised productivity data may also move the market. Continued stock strength may also pressure rates.
Recent Volatility
The recent volatility in mortgage interest rates on a daily basis has been escalated by the increased Fed purchasing of mortgage bonds in an effort to combat rising mortgage rates along with uncertainty about how it all unwinds. The Fed's goal of keeping mortgage interest rates relatively low in an effort to help the ailing housing sector of the economy has been a challenge. Analysts called the recent ramp up in purchasing "surprising" as amounts have exceeded recent averages. The Fed purchased almost $800 billion of mortgage bonds so far this year and has stated a goal of spending $1.25 trillion on the program by the end of the year.Different Fed officials have come out recently with what could be interpreted as conflicting positions on the program. Richmond Fed President Lacker told reporters recently, "Whether there is a so-called cliff effect or any disruption due to discontinuous change in our purchases is up in the air." Lacker also indicated, "I will be evaluating carefully whether we need or want the additional stimulus that purchasing the full amount authorized under our agency mortgage-backed securities purchase program would provide." On a slightly different note Atlanta Fed President Lockhart indicated the Fed would probably extend the timeframe of MBS purchases beyond the end of the year. The remarks now leave many questions. Will the Fed spend all of the slated money? Will the purchases take place before the end of the year or will they extend into 2010? With so much uncertainty, even among Fed officials, mortgage interest rate volatility is likely. The good news is rates still remain historically favorable.
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