Showing posts with label Trends. Show all posts
Showing posts with label Trends. Show all posts

Monday, September 23, 2013

It's All About Your Perspective and Your ONE Thing

As Realtors and agents we are aware of the daily challenges in the industry, specifically national issues beyond our control that impact our individual business. One of these of late is mortgage rates. Trying to keep up with the current news on the rates I find that opinions on where the rate is really varies.  It seems that it really is about perspective, which is a great lesson to adapt in our daily lives.

Mortgages Are Interesting

Here are some recent headlines from national real estate news sources:

Mortgage Professionals of America: 9/20/2013 -
Mortgage Applications Head Up as Rates Edge Down
Mortgage applications were up last week as interest rates crept down, according to a survey from the Mortgage Bankers Association. 

Bloomberg News: 9/19/2013 Home Sales Climb as Americans Rush to Lock in Rates
Sales of previously owned U.S. homes unexpectedly rose in August to the highest level in more than six years as buyers rushed to lock in interest rates before they increased further.
Realtor Magazine: 9/23/2013 
Mortgage Rates Level Off 
Key fixed-rate mortgages held steady this week, remaining near two-year highs.
Read the article http://www.realtor.com/news/mortgage-rates-level-off/

No Matter Where the Rate Is At …

"No matter how success is measured, personal or professional, only the ability to dismiss distractions and concentrate on your ONE Thing stands between you and your goals. The ONE Thing is about getting extraordinary results in every situation." Gary Keller

Keller Williams: 9/19/2013 
Balanced Markets; Big Opportunities: Gary Keller’s Mid-Year Market Update Amounts to ONE Thing: More Sales


The annual pace of home sales in July was 17.2 percent higher than it was last year, putting the industry on pace for the best year in home sales since 2006. “The last time we saw this number was 2003,” said Jay Papasan.  http://blog.kw.com/2013/09/19/balanced-markets-big-opportunities-gary-kellers-mid-year-market-update-amounts-to-one-thing-more-sales/

Monday, November 15, 2010

The Shrinking House: Downsizing the American Dream

By: Cindy Perman
CNBC.com Staff Writer


Home ownership has long been a symbol of the American Dream and for a while there, we SUPERSIZED it. But since the recession, we’ve been downsizing it.

The median home size in America was near 2,300 square feet at the peak of the market in 2007, with many McMansions topping 10,000 square feet.

Today, the median home size has dropped to about 2,100 square feet and more than one-third of Americans say their ideal home size is actually under 2,000 square feet, according to a survey by real-estate site Trulia.

“The whole glow of bigness kind of wore off all of a sudden,” said Sarah Susanka, an architect and the author of “The Not So Big House” book series.

Builders are responding by chopping out rooms that people just don’t use anymore, particularly formal living rooms and sitting rooms.

“You’re not having the king and queen of England to dinner but Joe and Kathy from next door — and they’d prefer to be in your informal space!” Susanka said.

Even media rooms, game rooms and libraries are on the way out, added Boyce Thompson, the editorial director for Builder magazine.

Every year, Builder does a concept home that represents where the market’s at. This year, it was called “A Home for the New Economy,” which weighed in at around 1,700 square feet – and, interestingly, was only designed virtually. (Take a virtual tour.)

Instead of having a formal living room and a family room, the Home for the New Economy has one big “great room” and instead of a home office, an extra bedroom on the main floor doubles as a guest room/home office—or even an in-law suite. They were even careful to chop out unnecessary hall space.

“The key today is to provide flexible space,” Thompson said.

So, instead of a game room, you may have a gaming area in part of your great room. Instead of a library, you may have a reading nook.

The “proliferation of bathrooms” is also on the way out, Susanka adds. For a while there, it seemed, every room had its own bathroom and people just didn’t use them. It’s time “to bring some sanity back to the equation,” she said.

But just because a house is small, doesn’t mean it has to feel small. Architects are finding all kinds of design tricks to make a home feel bigger, from varying the ceiling height — seeing that a ceiling is higher in the next room makes it feel even bigger — or putting a direct line of sight to an outdoor space like a porch or deck. As your eye sees past the room to the outside, the space feels bigger.

The Front Porch Makes a Comeback

It’s not just the inside of the house that’s changing, it’s the outside, too. The yards are smaller, with many developments favoring shared green spaces over big private yards.

And, the front porch is back. Builders are increasingly moving the garage to the back of the house and adding a big porch on the front.

Seeing a big porch through the dining room, and a shared green space beyond that adds to the illusion that you are getting more — and it makes you want to get out there and reconnect with your neighbors.

At the height of the market it was all about “suburban sprawl,” with everyone in their back yards, with their own deck, their own swingset, their own pool — and barely knowing their neighbors. Today, the buzz word is “smart growth” — smaller more sustainable communities that really have a sense of community.

That’s partly because it’s better for the environment and community building, but there’s a more practical reason.

“Most households now have two people working,” said John McIlwain, a senior resident fellow at the Urban Land Institute. “Who wants to spend their time cleaning their house … or taking care of big yards … when they have kids to take care of?”

He said a magnet on his daughter-in-law’s fridge sums it up: “A clean home is a sign of a wasted life!”
It’s not just young people, either — empty nesters don’t want to spend their weekend mowing the lawn either!

This shift is evident in Denver’s Stapleton neighborhood, a new urbanist community built on the site of the old airport, which is meant to bring that suburban, small-town feel into a neighborhood within the city limits.

Here, their yards are tiny by design and no one has a pool — not even the million-dollar homes. Instead, they have an 80-acre shared park, aptly named Central Park, smaller “pocket parks” that become shared yards and three — soon to be four — public pools.

The Friday Afternoon Club

The concept may seem offputting to some, who may not think they want to know their neighbors. But there’s a sense of community there that you scarcely find elsewhere, with passersby saying hello to families on the porch and making plans to head out to a pocket park to play, or attend a free concert or movie in the park.

“People have just accepted the tradeoff,” said Denise Gammon, a vice president at Stapleton’s developer, Forest City Enterprises. “They think, ‘I don’t have a big, private yard, but boy do I have this amazing range of open space that’s completely accessible to me,’” she explained.

“It creates a really cohesive community,” added Heidi Majerik, the director of development at Forest City, who lives and works in Stapleton. “We get 1,000 to 2,000 people at weekend events and there are tons of informal events like the Friday Afternoon Club, where people bring out chairs, wine and appetizers and the kids play,” she explained.

“There’s a lot of movement toward neighborhoods like this,” Susanka said.

Susanka is currently designing a home in a similar neighborhood, Libertyville, Ill., just north of Chicago.

Neighborhoods like Stapleton and Libertyville are more densely populated but more vibrant, highly walkable and have charming downtown areas — something the next crop of homebuyers is demanding.

“Gen Y is looking for that kind of vibrant downtown flavor with smaller homes,” Susanka said. “They realize that there’s a value to being connected to one another but still maintain their privacy. There’s a balance between privacy and community.”

This new love affair with the front porch reflects that desire for community, and extends into the downtown area.

“They’ll go from their house down to the local restaurants, which then becomes like a part of their house,” she explained.

It's 'Back to the Future': Green Edition

It feels a lot like “Back to the Future,” with this return to small-town life. But there’s one major difference: Energy efficiency.

If it’s one thing the recession taught us, it’s to stretch our dollars further and no where is that more evident than in energy consumption.

Energy consumption has moved from an option when building a new home to the standard when it comes to appliances, windows, furnaces and climate control.

“People are really concerned after the energy scare of 2008 — they’re worried about what it’s going to cost to run their house,” Thompson said. “No one wants a gas guzzler — especially because it impairs resale down the road.”

Among the energy-smart options you may see down the road, that are just being experimented with now, are master controls for a home’s energy efficiency (much like the master control for the lights, heat and stereo) as well as private wind turbines in the backyard that may be connected to the grid — or take the home completely energy independent.

Of course, there will always be some people who want that big backyard and the fact that land prices are so cheap right now will make that more accessible for those who want it, McIlwain said.

One thing’s for sure: The memory of the recession will continue to impact the decisions people make when it comes to the home for years to come.

People are asking themselves, “How are we going to make this house in proportion to the next economic downturn, so that we’re not out on a limb?” Susanka said.

Thursday, December 10, 2009

"Real Estate Outlook: Signs of Rebound"

by Kenneth R. Harney

Unemployment and foreclosures continue to be huge weights holding back the economy, but housing's performance is just the opposite: Its signs of rebound keep getting stronger and stronger.

Take a look at this week's numbers: Pending home sales rose again for the ninth straight month, up by nearly 4 percent.

Dr. Lawrence Yun, chief economist for the National Association of Realtors, says the combination of tax credits, affordable prices and rock-bottom mortgage rates are “helping unleash a pent-up demand” from tens of thousands of financially-qualified renters and other buyers who'd been glued to the sidelines for months or even years.

Pending sale, where contracts have been signed but closings have not yet occurred, are a key indicator of where we're headed in housing over the coming several months.

The Northeast region led the country this time around -- up by an exceptional 20 percent for the month. In the Midwest, pending sales jumped nearly 12 percent, while in the South they were up by 5 percent.

Only the Western region saw a decline -- a sizable one at 11 percent.

Yun said the strong sales outlook in most parts of the country is beginning to make a real dent in unsold inventories -- now around a seven month supply -- and that sometime in the first half of next year, the housing market should reach a “self-sustaining” point where prices are moving up moderately and demand is strong.

Meanwhile, sales of newly constructed houses nationwide jumped by 6.2 percent in the latest monthly survey by HUD and the Census Bureau. The rate of total sales is now 31 percent higher than it was in January.

Mortgage rates continue to make both new and resale home purchases easier: Thirty year fixed rates declined to just below 4.8 percent on average last week, according to the Mortgage Bankers Association.

Fifteen year rates dropped below 4.3 percent, which is the lowest recorded by the MBA since it began its national rate survey in 1970.

There was even a hint of better news coming on the employment front last week. The consulting firm of Challenger, Gray & Christmas reported that layoffs by employers dropped sharply in November to about 50,000, down from 182,000 in November of 2008.

That's obviously still a lot of people losing jobs, and the unemployment rate is still stuck in double digits, but even the smallest hints of stabilization on jobs could prove to be hugely important for housing and real estate.

Published: December 8, 2009
www.realtytimes.com



Thursday, September 10, 2009

Pending Home Sales on a Record Roll

Washington, September 01, 2009
Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index,1 a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7.

Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said. “Other buyers are taking advantage of low home values before prices turn higher.

Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable,” Yun said.

NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. Buyers have little time to act because they must complete the transaction by November 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible – it is taking approximately two months to complete home sales in the current market.

The Pending Home Sales Index in the Northeast declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008. In the Midwest the index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago. In the South, pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008. In the West the index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said Congress needs to keep the momentum going. “Even with a good recovery taking place, the market is not yet back to normal. With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,” he said.

“To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we’re encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy,” McMillan said.

NAR’s Housing Affordability Index2 stood at 158.5 in July, below the peak set in April but is still 36.0 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

Yun expects existing-home sales to rise through the fourth quarter. “Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,” he said. “However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. The buyer psychology may be shifting from, ‘Why buy now when I can purchase later,’ to ‘I don’t want to miss out on a recovery’.”


The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

# # #
1The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

2The Housing Affordability Index is a relative index where a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced existing single-family home, taking into account the relationship between median home price, average effective interest rate for loans closed on existing homes, and median family income. The higher the index, the better housing affordability is for buyers.

The calculation assumes a downpayment of 20 percent and a qualifying ratio of 25 percent of gross income for mortgage principle and interest payments. The index is a general gauge with conditions varying widely around the country. Affordability conditions are lower for first-time buyers with smaller downpayments and less income.
Monthly publication of the index began in 1981 with annual data calculated back to 1970.

Existing-home sales for August will be released September 24; the next Pending Home Sales Index will be on October 1.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.

(From Realtor.org)