Friday, April 3, 2009
Tuesday, March 31, 2009
The Market This Year
Well, here we go again. Different Spring, same question, "How is the market?" With recent events this question has more meaning than it did in previous years. Let me put forward some of the highlights and the low lights.
A. Interest Rates below 5%!!!! The banks have to lend and if you are credit worthy you will be getting a great rate. Also the banks are so money hungry that paying points to reduce your rate actually is worth it, especially if your credit is not so worthy.
B. Short Sales -- These are transactions where the mortgage company agrees to take less then they lent the homeowner. Why? Because they lent them too much!!!!
C. Huge Inventory-- For buyers this is great, you've got your choice and you have some serious bargaining leverage since there are so many sellers and a lot less buyers.
D. Foreclosures-- For the most part if these homes got this far along they really aren't worth it.
E. Stimulus-- $8000 credit for new homeowners (anyone who hasn't owned a home for the past 3 years) This is a straight tax credit that can be taken of this years taxes or next depending when you buy (probably next considering tomorrow is April) as long as you buy before December 1st. There are also some great township grants available, Haverford township is offering up to $15000.00!!!!
F. The Correction-- A lot of the outrageous prices are gone. The recent boom in Real Estate was too big and certain areas have definitely undergone a correction. If you bought in the last 4 years and need to sell expect to get what you payed and no more. Some people may not get what they payed. Certain townships are worse than others. Some in the area have stayed pretty stable, Havertown is still a great value.
G. Shiny Penny--- If your home is priced right and shows well you will sell fast, because the people on the fence are waiting for a nice home (because of the massive inventory). Conversely, buyers if the house looks great jump, because someone else will if you don't.
I could go on and on. I enjoy homes and enjoy talking about them. If you want to know more specifics for where you live give me a shout or drop me an email.
A. Interest Rates below 5%!!!! The banks have to lend and if you are credit worthy you will be getting a great rate. Also the banks are so money hungry that paying points to reduce your rate actually is worth it, especially if your credit is not so worthy.
B. Short Sales -- These are transactions where the mortgage company agrees to take less then they lent the homeowner. Why? Because they lent them too much!!!!
C. Huge Inventory-- For buyers this is great, you've got your choice and you have some serious bargaining leverage since there are so many sellers and a lot less buyers.
D. Foreclosures-- For the most part if these homes got this far along they really aren't worth it.
E. Stimulus-- $8000 credit for new homeowners (anyone who hasn't owned a home for the past 3 years) This is a straight tax credit that can be taken of this years taxes or next depending when you buy (probably next considering tomorrow is April) as long as you buy before December 1st. There are also some great township grants available, Haverford township is offering up to $15000.00!!!!
F. The Correction-- A lot of the outrageous prices are gone. The recent boom in Real Estate was too big and certain areas have definitely undergone a correction. If you bought in the last 4 years and need to sell expect to get what you payed and no more. Some people may not get what they payed. Certain townships are worse than others. Some in the area have stayed pretty stable, Havertown is still a great value.
G. Shiny Penny--- If your home is priced right and shows well you will sell fast, because the people on the fence are waiting for a nice home (because of the massive inventory). Conversely, buyers if the house looks great jump, because someone else will if you don't.
I could go on and on. I enjoy homes and enjoy talking about them. If you want to know more specifics for where you live give me a shout or drop me an email.
Wednesday, March 4, 2009
Why We Shouldn't Hesitate
I've skipped a bunch of weeks blogwise. I had goofy things to write about like snow etiquette and my recent role as nurse for my two oldest kids. But I still wanted to write about the state of our Union and the direction we're taking with respect to my business and all of yours. I didn't write weeks ago because it really is just too much to digest in such a short period of time. Seems to me knee jerk reactions and instant posturing. I never expected instant results and didn't feel the need to be coddled.
Months ago when the stock market started it's crash we reacted with a cash infusion that was just a bandage to prevent an absolute colapse. These past 5 months we would watch a see saw of speculation and rumor fluctuate the market up and down. I always felt that we still had some more to fall and was never upset with being told that it would probably happen. In fact I said that the Dow would have to fall below 7000 before we could start true growth on real and solid expansion. Yesterday the president quipped that now that the market is so low we should be luring back some investors.
The one thing that became a pet pieve of mine was the origination of our "crisis". Being in the real estate business it has become dificult to listen the argument that the mortgage crisis was the root of all of our troubles. Yes, there were a lot of irresponsible loans and people reaching beyond their means for a dream dangled in front of them. But, the more I thought about it the mortgages were all loans made with tangible assets, homes. So, even though some of them were over valued and being forclosed upon the bank wouldn't be losing 100% of their investment. Meanwhile some of the bogus financial instruments, like credit default swaps, evaporated. And big time money managers were cooking the books and litterally fooling the market. How much of the Dow's average was fake. We tryed to prosper on notions and speculation on what would happen without ever doing anything.
I would hope that with the massive amount of money we have "borrowed" from the future we can inspire true growth, progress and innovation. There is no going back now this money is going to be spent and we are being asked now to adjust to new careers or paths to prosperity. Here's hoping that the money we direct to new projects and green alternatives will inspire business to participate in growth and solid investments. I would hope that we figure ways to create products of true value to market to the world in what appears to be a more hand in hand global economy.
Today I read this article which inspired this little rant.
U.S. mortgage demand off before Obama rescue detailsWed Mar 04 12:59:36 UTC 2009 By Lynn AdlerNEW YORK (Reuters) -
Months ago when the stock market started it's crash we reacted with a cash infusion that was just a bandage to prevent an absolute colapse. These past 5 months we would watch a see saw of speculation and rumor fluctuate the market up and down. I always felt that we still had some more to fall and was never upset with being told that it would probably happen. In fact I said that the Dow would have to fall below 7000 before we could start true growth on real and solid expansion. Yesterday the president quipped that now that the market is so low we should be luring back some investors.
The one thing that became a pet pieve of mine was the origination of our "crisis". Being in the real estate business it has become dificult to listen the argument that the mortgage crisis was the root of all of our troubles. Yes, there were a lot of irresponsible loans and people reaching beyond their means for a dream dangled in front of them. But, the more I thought about it the mortgages were all loans made with tangible assets, homes. So, even though some of them were over valued and being forclosed upon the bank wouldn't be losing 100% of their investment. Meanwhile some of the bogus financial instruments, like credit default swaps, evaporated. And big time money managers were cooking the books and litterally fooling the market. How much of the Dow's average was fake. We tryed to prosper on notions and speculation on what would happen without ever doing anything.
I would hope that with the massive amount of money we have "borrowed" from the future we can inspire true growth, progress and innovation. There is no going back now this money is going to be spent and we are being asked now to adjust to new careers or paths to prosperity. Here's hoping that the money we direct to new projects and green alternatives will inspire business to participate in growth and solid investments. I would hope that we figure ways to create products of true value to market to the world in what appears to be a more hand in hand global economy.
Today I read this article which inspired this little rant.
U.S. mortgage demand off before Obama rescue detailsWed Mar 04 12:59:36 UTC 2009 By Lynn AdlerNEW YORK (Reuters) -
Applications for loans to buy U.S. homes and to refinance existing mortgages fell for the second straight week, the Mortgage Bankers Association said on Wednesday, as consumers awaited for specific details on President Barack Obama's housing stimulus plan.The $275 billion program announced two weeks ago aims to reduce mortgage rates and stem the record tide of foreclosures that has dragged home prices down nearly 27 percent from their mid-2006 peak.The Mortgage Bankers Association's seasonally adjusted mortgage applications index, made up of both purchase and refinance loans, fell 12.6 percent to 649.7 last week.That was about half the level posted early this year, when average 30-year mortgage rates fell as low as 4.89 percent, according to the trade group. Mortgage rates rose to 5.14 percent last week from 5.07 percent the prior week.Potential buyers and refinancers have pulled back in the hopes that Obama's Homeowner Affordability and Stability Plan will cut borrowing costs and steady house prices."The housing stimulus package was announced but without sufficient detail to cause the market to have comfort that it would work, and (a sense about) when it would work," Michael Feder, chief executive at real estate data and analytics company Radar Logic, told Reuters on Tuesday.The Mortgage Bankers Association's seasonally adjusted refinancing applications index slumped 15.3 percent to 3,063.4, less than half the level seen as recently as mid-January.Its purchase index dropped 5.6 percent to 236.4 last week, having steadily descended from this year's high of 344.2 in the week ended January 2.An unwillingness to buy a fast-depreciating asset, a supply glut and swiftly evaporating jobs continue to contribute to the housing market swoon, analysts agree."While there is some demand from bargain hunters, housing conditions remain quite dire," Barclays economist Michelle Meyer wrote on Tuesday after the January National Association of Realtors pending home sales index slid to its lowest level since the index was started in 2001."Consumers have lost confidence in the economy and are worried about job security, discouraging big-ticket purchases," and tight credit conditions are overshadowing relatively low mortgage rates, she added.(Editing by Leslie Adler)
My gut feeling after reading this is.......
A. Eventually homes will be sold at a reasonable price.
B. Mortgage Rates hovering around 5%, what are you waiting for?
C. Rather have my money in a solid asset then in this stock market.
D. The banks have to make loans, right now if you have good credit you can purchase or refinance at an unbelievable rate and save money by being proactive instead of reactive.
Now if you've made it this far through my blogorant please comment!! Love to have a variety of opinion.
Monday, February 2, 2009
First time buyers could receive a $7,500 tax credit if they purchase soon!
The article I attached to this blog outlines another part of the Stimulus plan that is geared to helping the housing market. If you are in a market that has not been crushed valuewise by this economy and are considering buying but are too scared this should be the straw that breaks the camels back. Basically you will be able to claim a 7500.00 credit on your taxes (even on your 2008 return) if you buy by the end of this year. Similar to the credit/loan that congress tryed last year but with the caveat that you won't have to pay it back. FREE MONEY!! Although I rarely think that handouts from the government help I think that if you were buying a home anyway or thinking about it, now is the time!!
Read the entire article for eligibility requirements. Remember it has to get through the Senate also.
NEW YORK (CNNMoney.com) -- If you're thinking of buying a home, there could be a big bonus for you in the economic stimulus bill that's now before Congress.
Among its many provisions is a $7,500 tax credit for first time home buyers. The House passed the $819 billion stimulus plan, including this tax credit, in a vote late Wednesday. The Senate may vote on its version of the bill some time next week.
Technically, the stimulus bill is actually changing the terms of the $7,500 tax credit that was issued as a part of the Housing Recovery Act, which Congress passed last summer. That legislation required that the tax credit be repaid over 15 years, making it more of a no-interest loan. Not surprisingly, the measure had little impact on the market. The stimulus bill now under consideration would make that tax credit a true credit that doesn't need to be repaid.
Many in the housing industry believe this credit could do a lot to jump start the moribund housing market.
"Our economists have studied the effect [of the credit] and they say there could be a 10% increase in home sales if it's implemented," said Mary Trupo, a spokeswoman for the National Association of Realtors. "It gives people who are sitting on the fence or who have inadequate funds for closing costs an incentive to act now."
A 10% increase would yield an extra half million sales this year.
Who qualifies
To be eligible, buyers cannot have owned a home for the past three years, and the new home has to be used as a primary residence. The credit phases out as income rises above $75,000 for singles and $150,000 for couples, and disappears entirely at $95,000 and $170,000, respectively.
Applying for it is easy, or at least as easy as doing your income taxes. Just claim it on your return. That's it. No other forms or papers have to be filed.
Both the Senate and the House versions of the new act remove the requirement that buyers repay the credit. The Senate bill applies retroactively to any purchase completed between January 1, 2009 and the end of August. The House version is also retroactive to the start of the year, and expires at the end of June. As long as buyers don't sell for at least 36 months, they keep the money.
And the credit is refundable, meaning that it can be claimed even if the amount of the credit earned exceeds the buyer's tax liability. So even if your total tax bill comes to just $5,000, you can still qualify for a full $7,500 refund.
The housing industry has been pushing this idea for many months, arguing that first-time homebuyers are the key to boosting home sales. First time buyers who purchase from existing homeowners free those sellers to trade up to bigger, better houses.
Buyers beware
But the credit has its drawbacks, according to Bob Williams, a spokesman for the Tax Policy Center, which gave it a mediocre C+ grade in its Tax Stimulus Report Card.
Williams argues that the credit is poorly targeted because it goes to every first-time buyer, not just the ones who wouldn't buy without it. So, it merely provides a windfall for many people who would have purchased anyway. (See correction, below).
And in the end, a $7,500 tax credit, regardless of the details, does nothing to address the issue that's holding most buyers back - the suspicion that prices are going to keep falling.
"As long as people are uncertain about what markets are going to do, this won't help much," said Williams. "It's not enough to change that."
The industry would like to make the tax credit stronger by making it available to all homebuyers, not just first-timers. And it's pushing to have the credit last through the end of the year, at least.
"By the time it's implemented," said Trupo, "there could be very few months left to act."
An earlier version of this story incorrectly stated that the tax credit for a home purchased in 2009 could only be taken off of 2009 taxes. However, homebuyers can choose to take the credit for 2008, according to the IRS. Even if they buy a home after they've filed their 2008 taxes, they can file an amended return.
Read the entire article for eligibility requirements. Remember it has to get through the Senate also.
NEW YORK (CNNMoney.com) -- If you're thinking of buying a home, there could be a big bonus for you in the economic stimulus bill that's now before Congress.
Among its many provisions is a $7,500 tax credit for first time home buyers. The House passed the $819 billion stimulus plan, including this tax credit, in a vote late Wednesday. The Senate may vote on its version of the bill some time next week.
Technically, the stimulus bill is actually changing the terms of the $7,500 tax credit that was issued as a part of the Housing Recovery Act, which Congress passed last summer. That legislation required that the tax credit be repaid over 15 years, making it more of a no-interest loan. Not surprisingly, the measure had little impact on the market. The stimulus bill now under consideration would make that tax credit a true credit that doesn't need to be repaid.
Many in the housing industry believe this credit could do a lot to jump start the moribund housing market.
"Our economists have studied the effect [of the credit] and they say there could be a 10% increase in home sales if it's implemented," said Mary Trupo, a spokeswoman for the National Association of Realtors. "It gives people who are sitting on the fence or who have inadequate funds for closing costs an incentive to act now."
A 10% increase would yield an extra half million sales this year.
Who qualifies
To be eligible, buyers cannot have owned a home for the past three years, and the new home has to be used as a primary residence. The credit phases out as income rises above $75,000 for singles and $150,000 for couples, and disappears entirely at $95,000 and $170,000, respectively.
Applying for it is easy, or at least as easy as doing your income taxes. Just claim it on your return. That's it. No other forms or papers have to be filed.
Both the Senate and the House versions of the new act remove the requirement that buyers repay the credit. The Senate bill applies retroactively to any purchase completed between January 1, 2009 and the end of August. The House version is also retroactive to the start of the year, and expires at the end of June. As long as buyers don't sell for at least 36 months, they keep the money.
And the credit is refundable, meaning that it can be claimed even if the amount of the credit earned exceeds the buyer's tax liability. So even if your total tax bill comes to just $5,000, you can still qualify for a full $7,500 refund.
The housing industry has been pushing this idea for many months, arguing that first-time homebuyers are the key to boosting home sales. First time buyers who purchase from existing homeowners free those sellers to trade up to bigger, better houses.
Buyers beware
But the credit has its drawbacks, according to Bob Williams, a spokesman for the Tax Policy Center, which gave it a mediocre C+ grade in its Tax Stimulus Report Card.
Williams argues that the credit is poorly targeted because it goes to every first-time buyer, not just the ones who wouldn't buy without it. So, it merely provides a windfall for many people who would have purchased anyway. (See correction, below).
And in the end, a $7,500 tax credit, regardless of the details, does nothing to address the issue that's holding most buyers back - the suspicion that prices are going to keep falling.
"As long as people are uncertain about what markets are going to do, this won't help much," said Williams. "It's not enough to change that."
The industry would like to make the tax credit stronger by making it available to all homebuyers, not just first-timers. And it's pushing to have the credit last through the end of the year, at least.
"By the time it's implemented," said Trupo, "there could be very few months left to act."
An earlier version of this story incorrectly stated that the tax credit for a home purchased in 2009 could only be taken off of 2009 taxes. However, homebuyers can choose to take the credit for 2008, according to the IRS. Even if they buy a home after they've filed their 2008 taxes, they can file an amended return.
Saturday, January 31, 2009
When Life Throws You A Curve.....
Happy to be finishing up this week!
Sunday morning, got up, got dressed, ate breakfast (finishing first week of diet), and got in to the car to go to Church. Car ran fine on Saturday but today the engine was idling rough and the brake pedal was hard and didn't stop quickly. Hmmm, maybe it just needed to warm up.
Have someone to cover my Open House in Aldan but needed to put out the signs after church and before I coach Jack's basketball game, can't make Sofia's because it is overlapping Jacks. Cars not running well still and I am starting to get really frustrated when the sign will not go into the frozen ground. Jack's team plays terribly and loses to a team they beat handily before. Smile still on my face because they know why they lost. Some lessons suck. Sofia's team wins, haven't lost yet, and she scores the majority of the points, wish I was there. Maybe Monday will be easier.
Monday......
I have two settlements today!!!! My car is still running like crap!!! Oh well, once I get payed I'll send it into Steve, my mechanic. Bit of a run around getting to settlement but relatively smooth.
Tomorrow will be better with my car in the shop and my bills payed.
Tuesday.......
Steve's way too busy to look at my car, bring it back tomorrow. Ugghhh. Supposed to snow tonight so I'll drop it off before I go home and get Stacy to pick me up.
Wednesday......
Snow Day!!!! Great for kids, bad for dad. House full of kids while the freezing rain comes down outside and turns all the snow to ice. Shoveling sucks but I get it done and get a ride into work around noon. Hopefully my car will be done soon. Cars done and all it was just a vaccuum hose from the power booster to the engine. Asked for an oil change too. Shouldn't cost too much, right? $273.00!!!!! Steve's guy Mike who is running the shop while Steve is playing golf in Florida. Not arguing now, talk to Steve when he comes back.
Thursday......
Stacy calls me from work, she starts at 7, and suggests I drive Jack and Sofia up to the middle school because of the ice. I tell her they'll be fine and send them off. Kate is getting ready and so am I when Jack comes bursting through the front door. Sofia fell!!! Another parent noticed their perdicament and gave them a ride back to the house. Sit her down and ice her up, she's in obvious pain. Send Jack back off to school with a note, he's now late. After taking pictures of the sidewalk where she fell, my dad's an attorney, and dropping off Kate at school we're off to the ER. Oh yeah, after calling Stacy and eating crow for my decision. Eight and an half hours later and an Xray, catscan, and splint we are heading home for dinner. Have to make an appointment with pediatric orthopedist at Chop tomorrow. Boy do I feel like shit.
Friday.....
Can't get an appointment til next week. Very distracted, distracted enough to run out of gas on my way to pick up Kate after her last basketball game, damn it was cold. Fingers way numb filling up the tank.
Saturday....
Today is my youngest, Quentin's, birthday. Somehow I'm still smiling. Life throws you curves, but what fun would it be if you were bored.
Sunday morning, got up, got dressed, ate breakfast (finishing first week of diet), and got in to the car to go to Church. Car ran fine on Saturday but today the engine was idling rough and the brake pedal was hard and didn't stop quickly. Hmmm, maybe it just needed to warm up.
Have someone to cover my Open House in Aldan but needed to put out the signs after church and before I coach Jack's basketball game, can't make Sofia's because it is overlapping Jacks. Cars not running well still and I am starting to get really frustrated when the sign will not go into the frozen ground. Jack's team plays terribly and loses to a team they beat handily before. Smile still on my face because they know why they lost. Some lessons suck. Sofia's team wins, haven't lost yet, and she scores the majority of the points, wish I was there. Maybe Monday will be easier.
Monday......
I have two settlements today!!!! My car is still running like crap!!! Oh well, once I get payed I'll send it into Steve, my mechanic. Bit of a run around getting to settlement but relatively smooth.
Tomorrow will be better with my car in the shop and my bills payed.
Tuesday.......
Steve's way too busy to look at my car, bring it back tomorrow. Ugghhh. Supposed to snow tonight so I'll drop it off before I go home and get Stacy to pick me up.
Wednesday......
Snow Day!!!! Great for kids, bad for dad. House full of kids while the freezing rain comes down outside and turns all the snow to ice. Shoveling sucks but I get it done and get a ride into work around noon. Hopefully my car will be done soon. Cars done and all it was just a vaccuum hose from the power booster to the engine. Asked for an oil change too. Shouldn't cost too much, right? $273.00!!!!! Steve's guy Mike who is running the shop while Steve is playing golf in Florida. Not arguing now, talk to Steve when he comes back.
Thursday......
Stacy calls me from work, she starts at 7, and suggests I drive Jack and Sofia up to the middle school because of the ice. I tell her they'll be fine and send them off. Kate is getting ready and so am I when Jack comes bursting through the front door. Sofia fell!!! Another parent noticed their perdicament and gave them a ride back to the house. Sit her down and ice her up, she's in obvious pain. Send Jack back off to school with a note, he's now late. After taking pictures of the sidewalk where she fell, my dad's an attorney, and dropping off Kate at school we're off to the ER. Oh yeah, after calling Stacy and eating crow for my decision. Eight and an half hours later and an Xray, catscan, and splint we are heading home for dinner. Have to make an appointment with pediatric orthopedist at Chop tomorrow. Boy do I feel like shit.
Friday.....
Can't get an appointment til next week. Very distracted, distracted enough to run out of gas on my way to pick up Kate after her last basketball game, damn it was cold. Fingers way numb filling up the tank.
Saturday....
Today is my youngest, Quentin's, birthday. Somehow I'm still smiling. Life throws you curves, but what fun would it be if you were bored.
Tuesday, January 27, 2009
Surprise?????
Just wanted to comment after reading this. Another Headline for people to read. Not that I don't want good news for my industry it's just that you are better off talking to a professional in your area. From November numbers there was no way but up. Still worth the read. Reinforces what I've been preaching, "If you have money Real Estate is a lot less risky than the Stock Market." Also, the smart ones are starting to snatch up some of these deals, if you can, do so!!!
Existing Home Sales in Surprise Jump
Sales of existing homes in December rose 6.5% from November. But prices continued to fall, down over 15% from last year.
By Catherine Clifford, CNNMoney.com staff writer
Last Updated: January 26, 2009: 12:30 PM ETNEW YORK (CNNMoney.com) -- The number of existing homes sold in December rose 6.5% from the previous month, according to a report released Monday, as bargain hunters took advantage of plummeting prices.
The National Association of Realtors said that home sales increased to a seasonally-adjusted, annualized rate of 4.74 million units. That's up from a revised pace of 4.45 million units sold in November and more than the rate of 4.4 million units projected by a consensus of industry analysts as reported by Briefing.com.
"We have some months to go before we are out of the woods on the housing front," said Robert Dye, senior economist at PNC financial services group. Especially considering "weak consumer confidence and ongoing rapid deterioration in labor markets."
Still, December's existing home sales are down 3.5% compared with December of 2007, when the seasonally-adjusted, annual sales rate was 4.91 million. Existing homes include single family homes, townhomes, condominiums and co-ops.
For all of 2008, there were 4,912,000 homes sold, which was the lowest volume since 1997, when there were 4,371,000 homes sold. Sales volume in 2008 was down 13.1% from the 5,652,000 existing homes sold in 2007.
Bargain hunters: Bargain prices are bringing buyers back into the market. The median existing home price was down 15.3% to $175,400 from December 2007, when the median price was $207,000. The median price measures where half of the homes sold for more and half sold for less.
"Americans love a bargain, and the housing market is no exception," said Mike Larson, real estate and interest rate analyst for Weiss Research in a written statement.
Thanks to the sales increase, the number of homes available on the market decreased 11.7% in December from the previous month, to 3.68 million. That represents a 9.3-month inventory supply at the current pace of sales, down from a 11.2-month supply in November.
"That's exactly what we need to see if the housing market is ever going to get back to a state of equilibrium," said Larson.
Home prices were pushed lower by the high volume of distressed sales, which accounted for 45% of December transactions according to the report.
"The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal, balanced conditions," said NAR chief economist Lawrence Yun in a written statement. He warned that the housing market is far from healthy. "Buyers will continue to have an edge over sellers for the foreseeable future."
Surge in the West: The number of homes sold nationwide was buoyed by a surge in the West, where the housing market has been hardest hit by a record number of foreclosures.
Existing home sales in the West surged 13.6% to an annual rate of 1.25 million in December, up 31.6% from a year ago. But the median price in the West was $213,100, down 31.5% from December 2007.
In the South, existing home sales increased 7.4% to an annual pace of 1.74 million in December, but that was still 11.2% lower than December a year ago. And sales in the Midwest increased 4% in December to an annual rate of 1.04 million, but were down 10.3% from the same period last year.
The Northeast saw sales edge 1.4% lower, to an annual pace of 720,000 in December, down 14.3% from December 2007.
In the months to come: Analysts said that the weakening job market would slow any recovery in housing.
On Monday morning, a slew of companies announced a massive wave of job cuts. Home Depot (HD, Fortune 500), the No. 1 home improvement retailer, announced it would eliminate 7,000 jobs, or 2% of its total workforce, while Caterpillar (CAT, Fortune 500) said it will cut 20,000 jobs.
"Unfortunately, we are seeing fast and furious [layoffs] now," said PNC's Robert Dye. "And that does add to the level of uncertainty and it does put workers and consumers on edge."
Mike Larson from Weiss Research echoed that sentiment. "It's hard to imagine a lasting turn in the housing market with thousands of layoffs being announced every few days," he said.
The Obama administration is now at work on an economic recovery plan, and Yun said that this will be critical to the revitalization of the housing industry.
"The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery," Yun said in a statement.
Existing Home Sales in Surprise Jump
Sales of existing homes in December rose 6.5% from November. But prices continued to fall, down over 15% from last year.
By Catherine Clifford, CNNMoney.com staff writer
Last Updated: January 26, 2009: 12:30 PM ETNEW YORK (CNNMoney.com) -- The number of existing homes sold in December rose 6.5% from the previous month, according to a report released Monday, as bargain hunters took advantage of plummeting prices.
The National Association of Realtors said that home sales increased to a seasonally-adjusted, annualized rate of 4.74 million units. That's up from a revised pace of 4.45 million units sold in November and more than the rate of 4.4 million units projected by a consensus of industry analysts as reported by Briefing.com.
"We have some months to go before we are out of the woods on the housing front," said Robert Dye, senior economist at PNC financial services group. Especially considering "weak consumer confidence and ongoing rapid deterioration in labor markets."
Still, December's existing home sales are down 3.5% compared with December of 2007, when the seasonally-adjusted, annual sales rate was 4.91 million. Existing homes include single family homes, townhomes, condominiums and co-ops.
For all of 2008, there were 4,912,000 homes sold, which was the lowest volume since 1997, when there were 4,371,000 homes sold. Sales volume in 2008 was down 13.1% from the 5,652,000 existing homes sold in 2007.
Bargain hunters: Bargain prices are bringing buyers back into the market. The median existing home price was down 15.3% to $175,400 from December 2007, when the median price was $207,000. The median price measures where half of the homes sold for more and half sold for less.
"Americans love a bargain, and the housing market is no exception," said Mike Larson, real estate and interest rate analyst for Weiss Research in a written statement.
Thanks to the sales increase, the number of homes available on the market decreased 11.7% in December from the previous month, to 3.68 million. That represents a 9.3-month inventory supply at the current pace of sales, down from a 11.2-month supply in November.
"That's exactly what we need to see if the housing market is ever going to get back to a state of equilibrium," said Larson.
Home prices were pushed lower by the high volume of distressed sales, which accounted for 45% of December transactions according to the report.
"The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal, balanced conditions," said NAR chief economist Lawrence Yun in a written statement. He warned that the housing market is far from healthy. "Buyers will continue to have an edge over sellers for the foreseeable future."
Surge in the West: The number of homes sold nationwide was buoyed by a surge in the West, where the housing market has been hardest hit by a record number of foreclosures.
Existing home sales in the West surged 13.6% to an annual rate of 1.25 million in December, up 31.6% from a year ago. But the median price in the West was $213,100, down 31.5% from December 2007.
In the South, existing home sales increased 7.4% to an annual pace of 1.74 million in December, but that was still 11.2% lower than December a year ago. And sales in the Midwest increased 4% in December to an annual rate of 1.04 million, but were down 10.3% from the same period last year.
The Northeast saw sales edge 1.4% lower, to an annual pace of 720,000 in December, down 14.3% from December 2007.
In the months to come: Analysts said that the weakening job market would slow any recovery in housing.
On Monday morning, a slew of companies announced a massive wave of job cuts. Home Depot (HD, Fortune 500), the No. 1 home improvement retailer, announced it would eliminate 7,000 jobs, or 2% of its total workforce, while Caterpillar (CAT, Fortune 500) said it will cut 20,000 jobs.
"Unfortunately, we are seeing fast and furious [layoffs] now," said PNC's Robert Dye. "And that does add to the level of uncertainty and it does put workers and consumers on edge."
Mike Larson from Weiss Research echoed that sentiment. "It's hard to imagine a lasting turn in the housing market with thousands of layoffs being announced every few days," he said.
The Obama administration is now at work on an economic recovery plan, and Yun said that this will be critical to the revitalization of the housing industry.
"The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery," Yun said in a statement.
Friday, January 23, 2009
Revisiting Recycling.
Haverford Township went single stream recycling on January 1st. Being a large family and feeling responsible we always recycled before but with a massive network of buckets and cans on my back porch. Seemed like lots of work. Was it worth it? I tend to think it was and marvel at the amount of time it took for it to make economic sense for most townships to understand.
Ten years ago when I still lived in Drexel Hill I remember reading an article about Recycling. While this article outlined the benefits of recycling it focussed on how it was costing townships too much money to actually implement a good recycling program. There were State and Federal subsidies that were available but they were not enough to offset the cost.
Fast forward to now. The county has passed on the cost of disposing solid waste to the townships, our taxes increase. Shortsitedness? No Doubt. Recycling to Trash in my house is at least 3 to 1 now that I see it before me. From what I understand there is a company with large sorters that separate the recylables and transport them to the proper facilities to be remade. NOT TO THE DUMP!!
Hmmmm, this company must employ people, these facilities that remake the "trash" must employ people. These products are produced here. How much money would we have saved if we ran business like it was 10 years into the future and not with the idea of a short term gain?!?!
Ten years ago when I still lived in Drexel Hill I remember reading an article about Recycling. While this article outlined the benefits of recycling it focussed on how it was costing townships too much money to actually implement a good recycling program. There were State and Federal subsidies that were available but they were not enough to offset the cost.
Fast forward to now. The county has passed on the cost of disposing solid waste to the townships, our taxes increase. Shortsitedness? No Doubt. Recycling to Trash in my house is at least 3 to 1 now that I see it before me. From what I understand there is a company with large sorters that separate the recylables and transport them to the proper facilities to be remade. NOT TO THE DUMP!!
Hmmmm, this company must employ people, these facilities that remake the "trash" must employ people. These products are produced here. How much money would we have saved if we ran business like it was 10 years into the future and not with the idea of a short term gain?!?!
Thursday, January 22, 2009
Happy Daunting New Year
Well, we're into a new year and I have had ample time to look at the numbers for the past year and ample time to think about them. There's good news and disturbing news ( won't call it bad as I am a half full kind of guy. The good news is people still live in houses and still need to either buy or sell them. The Market seems to be adjusting to the new conditions and those of you who try hard and think smart will do fine. The disturbing news is that with this economy and the uncertainty of peoples employment situations most people have an almost gloomy outlook.
Let me get off the beaten track of Real Estate (yay!) and talk about the economy and the future. There are some harsh realities out there right now and people are straight up afraid. Part of my mind can't even comprehend the ammount of miscue we lived under for the last decade plus. As new accounting methods and loose oversight brought about this DEBACLE, we stand here with our mouths agape and just wonder how we can move forward after taking so many steps back. Now is the time for the true innovaters and radical thought provokers to step forward. As a large number of our country has proclaimed their faith to a higher power as a way to keep their heads up I offer an idea that this same faith should be put in our children. With the vast amount of knowledge and information available at our fingertips we must inspire our youth to do great things. These great things cannot center around personal wealth, they must center around making a better place to live in and the wealth will follow. Instead of telling them that solar power or wind power would take decades to pay we must tell them that that is how long it will take us old dogs, you pups are smarter and better than us and could probably figure it out. Although we sit in what will turn out to be the most dificult time in our lives we must take solace in the fact that we WILL move forward. How? Not sure myself, yet. I am holding faith in the fact that now that some of the old models have failed this will inspire new models to be born and grow into something spectacular. Being a constant student of history I believe that as innovaters we move faster and faster, the only thing that tends to hold us back is fear and greed. Fear of something new, not safe and old. Greed in the fact that there is a large number of people who have not learned the word ENOUGH. That being said as we move forward into this new year let us not dwell on blame and divisiveness but embrace the new and unknown. Let us bridle the vast knowledge and the exhubrance of youth and inspire our children to great things. To borrow a theme from a movie, "Let's Pay it Forward!!"
Workin on the future!
Workin on the future!
California's median home price falls 38 percent
By TERENCE CHEA, Associated Press Writer Terence Chea, Associated Press Writer – Wed Jan 21, 8:38 pm ET
SAN FRANCISCO – The median home price in California plummeted 38 percent in December from a year earlier as low-cost foreclosures boosted sales but lowered property values, a real estate tracking firm said Wednesday.
The median price for California houses and condos dropped to $249,000 last month from $402,000 in December 2007, according to San Diego-based MDA DataQuick. The median price is the point where half the homes sold for more and half sold for less.
The California median home price is at the lowest point since February 2002, when it was $245,000. It marks a 49-percent decline from the peak of $484,000 in the spring of 2007.
An estimated 37,836 homes were sold in California last month, up 18 percent from November and 48 percent from December 2007, according to DataQuick.
The housing market is being driven by bargain hunters snapping up bank-owned foreclosure properties, which accounted for 58 percent of existing homes sold last month, up from 24 percent a year earlier.
"The processing of these distressed properties is almost reaching a frenzied level," said John Karevoll, a DataQuick analyst. "Many of the banks just want to get these properties off their books. People are flocking to buy these foreclosure properties."
Richard Green, director of the University of Southern California's Lusk Center for Real Estate, said the California housing market is being hammered by tight credit markets, expectations of further price declines, a rapidly deteriorating economy and rising unemployment.
"Until the economy stabilizes, it will be hard to see the housing market stabilize," Green said. "If you see the unemployment rate turn around, that's when you'll start to see housing prices bottom and start turning in the other direction. Until that happens, I'm pretty gloomy."
DataQuick also reported Wednesday that the median home price in the nine-county San Francisco Bay area fell 44 percent, from $587,500 in December 2007 to $330,000 last month. That's the lowest since March 2000, when it was $320,500, and marks a 50-percent decline since the peak of $665,000 in the summer of 2007.
A total of 6,889 houses and condos were sold in the Bay Area in December, up 20 percent from November and up 36 percent from December 2007, according to DataQuick.
Most of the Bay Area sales took place in the East Bay counties hit hardest by foreclosures. The median home price fell 50 percent to $252,000 in Contra Costa County, 37 percent to $338,000 in Alameda County and 42 percent to $213,500 in Solano County. By contrast, it dropped 16 percent to $616,500 in San Francisco.
Sales of more expensive homes have stalled as would-be homebuyers run into trouble securing mortgages.
The upper half of the Bay Area housing market won't recover until the market for "jumbo" loans for more than $417,000 recovers, Karevoll said. Such loans used to account for more than 60 percent of the region's real estate financing, but only made up 22 percent of loans last month.
On Monday, DataQuick reported that the median home price in Southern California fell nearly 35 percent, from $425,000 in December 2007 to $278,000 last month, DataQuick said. The median price for the six-county region peaked at $505,000 in mid-2007.
There were 19,926 homes sold in Southern California last month, up 19 percent from November. Foreclosures accounted for 58 percent of December sales.
"It's very difficult, if not impossible, to predict what's going to happen," Karevoll said. "It's hard to project when the operating instructions for the market are no longer valid."
By TERENCE CHEA, Associated Press Writer Terence Chea, Associated Press Writer – Wed Jan 21, 8:38 pm ET
SAN FRANCISCO – The median home price in California plummeted 38 percent in December from a year earlier as low-cost foreclosures boosted sales but lowered property values, a real estate tracking firm said Wednesday.
The median price for California houses and condos dropped to $249,000 last month from $402,000 in December 2007, according to San Diego-based MDA DataQuick. The median price is the point where half the homes sold for more and half sold for less.
The California median home price is at the lowest point since February 2002, when it was $245,000. It marks a 49-percent decline from the peak of $484,000 in the spring of 2007.
An estimated 37,836 homes were sold in California last month, up 18 percent from November and 48 percent from December 2007, according to DataQuick.
The housing market is being driven by bargain hunters snapping up bank-owned foreclosure properties, which accounted for 58 percent of existing homes sold last month, up from 24 percent a year earlier.
"The processing of these distressed properties is almost reaching a frenzied level," said John Karevoll, a DataQuick analyst. "Many of the banks just want to get these properties off their books. People are flocking to buy these foreclosure properties."
Richard Green, director of the University of Southern California's Lusk Center for Real Estate, said the California housing market is being hammered by tight credit markets, expectations of further price declines, a rapidly deteriorating economy and rising unemployment.
"Until the economy stabilizes, it will be hard to see the housing market stabilize," Green said. "If you see the unemployment rate turn around, that's when you'll start to see housing prices bottom and start turning in the other direction. Until that happens, I'm pretty gloomy."
DataQuick also reported Wednesday that the median home price in the nine-county San Francisco Bay area fell 44 percent, from $587,500 in December 2007 to $330,000 last month. That's the lowest since March 2000, when it was $320,500, and marks a 50-percent decline since the peak of $665,000 in the summer of 2007.
A total of 6,889 houses and condos were sold in the Bay Area in December, up 20 percent from November and up 36 percent from December 2007, according to DataQuick.
Most of the Bay Area sales took place in the East Bay counties hit hardest by foreclosures. The median home price fell 50 percent to $252,000 in Contra Costa County, 37 percent to $338,000 in Alameda County and 42 percent to $213,500 in Solano County. By contrast, it dropped 16 percent to $616,500 in San Francisco.
Sales of more expensive homes have stalled as would-be homebuyers run into trouble securing mortgages.
The upper half of the Bay Area housing market won't recover until the market for "jumbo" loans for more than $417,000 recovers, Karevoll said. Such loans used to account for more than 60 percent of the region's real estate financing, but only made up 22 percent of loans last month.
On Monday, DataQuick reported that the median home price in Southern California fell nearly 35 percent, from $425,000 in December 2007 to $278,000 last month, DataQuick said. The median price for the six-county region peaked at $505,000 in mid-2007.
There were 19,926 homes sold in Southern California last month, up 19 percent from November. Foreclosures accounted for 58 percent of December sales.
"It's very difficult, if not impossible, to predict what's going to happen," Karevoll said. "It's hard to project when the operating instructions for the market are no longer valid."
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