What an exciting day for my agents, family, friends, business partners of Next Level Realty & Mortgage and of course myself! We are finally breaking our blog into the online universe. At Next Level Realty & Mortgage we operate like a family and are focused on bringing the best possible service and technology to our customers, agents and business partners. We want to use this blog as a forum where people can speak their minds about any facet of our industry. It can be positive or negative feedback or an idea about how to improve our industry (of course positive is always better!) Our ultimate goal is to provide knowledge and to inspire our industry to make positive changes. We want to join forces to fight the unfair politics that get in the way of running a real estate business successfully. I, as the author of this blog, invite EVERYONE to chime in and leave us a post. We really want to hear from buyers, sellers and our consumers. Our industry has the most to gain from you!
Thursday, February 01, 2007
Inman News
An index that measures pending home sales dropped 10.1 percent in 2006 compared to 2005, according to preliminary data released today by the National Association of Realtors.
The Pending Home Sales Index, based on contracts signed in 2006, reached 111.8 in 2006 compared with 124.4 in 2005. A sale is listed as pending when the contract has been signed and the transaction has not closed, but the sale usually is finalized within one or two months of signing.
Regionally, the index dropped 14.8 percent in the West, 13 percent in the Midwest, 9.3 percent in the Northeast and 6 percent in the South in 2006 compared to 2005.
The index was 112.4 in December 2006, down 4.4 percent compared to the same month in 2005 and up 4.9 percent compared to November 2006. The month-to-month gain was the largest since March 2004 when the index rose 6.9 percent, the Realtor group reported.
“A steady narrowing from year-ago readings has been observed since last July when the level of unsold housing inventory peaked at an all-time high,” according to the report.
The index is based on a large national sample — typically representing about 20 percent of transactions for existing-home sales. The Realtor group demonstrated that the level of monthly sales-contract activity from 2001-04 parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined and the first of five consecutive record years for existing-home sales.
David Lereah, chief economist for the association, said in a statement, “I expect modest sales gains throughout the year, with what I believe are sustainable levels of activity. 2007 promises to be the fourth-best year on record.”
In December, the index increased 8.1 percent in the Northeast compared to November and was 4.8 percent below a year ago. The index in the West rose 5.3 percent to 112.2 but was 4.9 percent below December 2005. The index in the South increased 4.3 percent to 129.8 but was 4.2 percent lower than a year earlier. In the Midwest, the index was up 3.2 percent in December to 103.2 but was 4.3 percent below December 2005, the Realtor group reported.
RISMEDIA, Feb. 19, 2007-The spring real estate market in Massachusetts is expected to be robust as consumers gravitate to attractive 30-year fixed loans and take advantage of the best buyers market in more than a decade, according to Richard S. Fedele, CEO of Summit Mortgage LLC, a premier, private Boston-based mortgage banking firm.
“With reduced home values, historically low interest rates and pent-up consumer demand, I think the spring real estate market will be a home run,” said Fedele. “We are now seeing more affordability in the housing market than we’ve seen in years.”
Fedele is bullish on the real estate scene despite a gloomy residential real estate picture over the past year. According to The Warren Group, a Boston real estate data provider, single-family home sales dropped 14.4% in 2006, with 54,203 homes being sold compared to 63,350 in 2005. Meanwhile, the median sale price for a single-family home dropped to $325,000 in 2006, down 5.8% from $345,000 in 2005.
The bleak data belies a new reality, according to Fedele. “Declining home prices are behind us,” predicted Fedele. “The spring market will be solid and I expect some appreciation in home values by the end of this year.”
Fedele bases his findings on a combination of additional national and local economic signs. For example, the Mortgage Bankers Association, a national industry trade group, reported recently that mortgage applications were 1.7% above their level one year ago. Locally, Summit Mortgage closed $111 million in loans in January, a 76% increase over the $63 million closed in January 2006.
Additionally, the current 30-year fixed interest rate on home mortgages stands at just over 6%, still one of the best historical rates. Fedele anticipates the Federal Reserve Board, which sets interest rates on overnight loans between banks and affects other consumer rates, will remain steady at 5.25% for the first half of the year before falling toward the end of the second half. “That will then spur an even better housing market,” said Fedele.
Finally, Fedele is bullish on Massachusetts because it has not overbuilt over the years. “Massachusetts is solid because we’re a resale area as opposed to an area with an overabundance of new homes,” he said.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Tuesday, February 20, 2007
Buyer demand boosted home builder confidence five points in February to its highest level in eight months, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
Based on a monthly survey that measures builder perceptions and expectations for home sales, the index climbed to 40 in February from a reading of 35 in January. An index rating above 50 indicates that more builders view sales conditions as good, while a rating below 50 indicates that more builders view conditions as poor.
“Builders are still cautious as they continue to manage their inventory, but their assessments of the demand side of the single-family market are improving,” said NAHB President Brian Catalde, a home builder from Playa del Rey, Calif. “Every component of the February HMI — present home sales, sales expectations for the next six months and buyer traffic — showed a significant positive uptick in February.”
Lower energy prices, favorable mortgage rates and solid growth in employment and household income have all contributed to the recent stabilization of home-buyer demand, said NAHB Chief Economist David Seiders. “In addition, builders continue to offer substantial sales incentives to move their product and limit cancellations, which has helped to firm up buyer demand.”
All three component indexes registered improvement in February, with the index gauging current single-family home sales rising six points to 42 and the component measuring the traffic of prospective buyers gaining five points to 31. Of particular note, the index gauging sales expectations for the next six months jumped over the 50 threshold for the first time since last June, posting a seven-point gain to 55.
The HMI rose in all four regions in February, with the Northeast posting the biggest gain of eight points to 46. Five-point gains were registered in the Midwest and South, to 29 and 46, respectively, while the West moved up two points to 35.
“Builders are becoming increasingly convinced that the abrupt downslide in home sales is in their rear view mirrors and they see better times as they look at the road ahead,” Seiders said.
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