Sunteți pe pagina 1din 7

Real Estate Digest

9 North Adams Road Rockville, MD 20850 (240) 425-0008 www.michaelstitle.com September 2012 Volume 38 Number 9

Up, Up and Away: Housing Market Poised for Takeoff


The housing market has turnedfinally.
ith nearly all major indexes of house prices bending up, the Wall Street Journal has declared the housing slump officially over, nearly seven years after the housing bubble burst. The new Journal survey of real estate forecasters found 44 believe the housing market has reached its bottom; only three do not. We finally see rising home prices, S&Ps David Blitzer said in late June, when

Aprils figures showed the first monthly increase in the slow-moving S&P/CaseShiller house-price data after seven months of declines. In the latest reporting month, nearly 10 percent more existing homes were sold than a year earlier, many purchased by investors who plan to rent them for now and sell them later, an important sign of an inflection point. In something of a surprise, the inventory of existing homes for sale

has fallen close to the normal level of six months worth, despite all the foreclosed homes that lenders own. The fraction of homes that are vacant is at its lowest level since 2006. The reduced inventory of unsold homes
continued on next page

September 2012 is key, says Mark Fleming, chief economist at CoreLogic, a housing data-analysis firm. For the past couple of years, house prices have risen in the spring and then slumped; the declining supply of houses for sale is reason to believe that wont happen again this year, he says. Builders began work on 26 percent more single-family homes in summer 2012 than the depressed levels of 2011. The stock of unsold newly built homes is back to 2005 levels. In each of the past four quarters, housing construction has added to economic growth. In the first quarter, it accounted for 0.4 percentage points of the meager 1.9 percent growth rate. Even with the overall economy slowing, Wells Fargo Securities economists said, cautiously, in a note to clients, the budding recovery in the housing market appears to be gradually gaining momentum. Housing is still far from healthy, despite the Federal Reserves efforts to resuscitate it by helping to push mortgage rates to extraordinary lows: in late summer, average rates for a 30-year fixed-rate mortgage were hovering around 3.5 percent. Singlefamily housing starts, though up, remain 60 percent below the 2002 pre-bubble pace. Americans equity in homes is $2 trillion, or 25 percent less than it was in 2002 and half what it was at the peak. Still, the upturn in housing is a milestone, a particularly welcome one amid a distressing dearth of jobs. For some time, housing has been one of the biggest causes of economic weakness. It has now barely moved to the plus side. A little tail wind is a lot better than a headwind, says economist Chip Case, the Case in Case-Shiller.

Volume 38 Number 9

TRENDS

Relocation Forecast Is Up
In yet another sign of global economic recovery, Cartus Corporation reports 57 percent of multinational companies expect to increase the number of employees they relocate this year and next. The survey polled 122 multinationals, asking whether they anticipated moving more workers. The survey found that 57 percent would increase the number of moves, 37 percent said the number would be about the same, and 6 percent anticipated a decrease. Our global trends survey uncovered two key issues behind the anticipated increase in corporate relocation activity: A need for companies to support their planned expansion into emerging markets; and a need to fill the void in available local talent in those markets, said Matt Spinolo, executive vice president of Cartus. Surprisingly, the survey found the top reason employees accept job transfers (cited by 90 percent) is career development over attractive compensation. Survey respondents ranked compensation a distant second on the list, at 35 percent.

Four out of Five Renters Want to Buy


Eighty-two percent of non-homeowners plan to buy a home and are willing to make sacrifices in their daily living to make that goal a reality, according to a poll by Century 21 Real Estate.
continued on next page

September 2012 Half of those polled said they would cut back on dining out, 49 percent said they would cut back on shopping for non-essential items and 47 percent said they would give up luxuries in order to be financially able to purchase a home. A key obstacle to buying a first home, however, is the down payment and qualifying for a loan. The poll found that 45 percent of those responding said they did not believe they could qualify for a loan or have sufficient funds for a down payment. And a new poll by the Trulia real estate data company suggests consumers are perhaps overly optimistic about the trend toward higher home prices over the past several months, with 58 percent believing values will return to boom-year highs within the next 10 years. The company also said Americans are again looking for large homes to buy. It said 27 percent of those polled would like a home with more than 2,600 square feet and that 11 percent would like a home with more than 3,000 square feet.

Volume 38 Number 9

On its website, the EIA has an exhaustive table showing home energy use based on housing type, year of construction, size of homes, number of household members, family income and other factors.

MARKETS

Immigration Will Be Driving Force Behind Market Growth


The nations immigrant population will drive homeownership in the coming years but growth in home sales will be limited because more people will be in a single household. University of Southern Californias Lusk Center for Real Estate reports that housing demand will increase almost everywhere in the country as immigrants spread out from central cities, but household formation could decline. NAR confirms the numbers and reports the value of U.S. residential properties sold to non-U.S. buyers increased to $82.5 billion in the past 12 months, compared to $66.4 billion in the 12 months before that. The trade association said the sales were evenly split between non-resident foreigners and recent immigrants. NAR said international sales were driven by low prices, a good inventory and the increased buying power of foreigners because of currency exchange rates. International buyers bought homes throughout the country but just four states Florida, California, Texas and Arizona accounted for 51 percent of the purchases. Florida has been the fastest-growing destination of choice, accounting for 26 percent
continued on next page

Bigger Homes, More TVs Adding to U.S. Energy Bills


The U.S. Energy Information Administration (EIA) has released a study showing that energy expenditures by American households were up an average of 11.8 percent per year from 2005 to 2009, from $1,180 per year to $2,024. The agency suggested expenditures were higher because of larger homes, more electronics that were larger in size (such as televisions), and an increase in the number of appliances per household significantly because the number of refrigerators had doubled in many households.

September 2012 of foreign purchases. California was second with 11 percent, and Texas and Arizona accounted for 7 percent each. NAR said about 45 percent of purchases were for properties under $250,000.

Volume 38 Number 9

Death of Spouse, Drop in Income Spur Older Americans to Become Renters


A recent study by the Employee Benefits Research Institute found that, although most older Americans live in houses they own, the percentage transitioning to rental housing increases with age. The study found that at age 50, 3 percent of Americans transition from home ownership to renting. That figure bottoms out to 1.6 percent at age 65, when more than 80 percent of Americans live in houses they own. After age 85, however, the transition to rental housing begins to increase again, with 4.7 percent of individuals living in rental housing at age 90. The death of a spouse led the causes of transitioning from owning to renting, followed by a drop in household income. The study also found that singles and couples have very different rates of ownership, but those rates dont change much with age. Singles have an ownership rate of about 60 percent, while about 90 percent of couples own their homes.

who are touring homes and the number actually making offers. It its first data release, the Real-Time Demand Pulse found the number of offers made by its clients in the past four weeks declined 3 percent compared to the previous four weeks, but the number of clients touring homes increased by two percent. Compared to last year, the number of offers was down eight percent and the number of tours down three percent. This report reflects data collected from client activity in 18 markets around the country. According to CEO Glenn Kelman, the Pulse can project sales volume without waiting 30 45 days for a sale to close, or an additional 15 30 days for it to be recorded as a public record.

Green Homes Building Market Share


In another indication that green is a growing niche in real estate, the U.S. Green Building Council (USGBC) has announced that more than 20,000 homes across the country have earned the LEED-Home certificationand about 79,000 more are in the certification pipeline. The Council also announced that about 51 percent of the green homes are in the affordable price range. This milestone is evidence that the residential market is increasingly recognizing the LEED certification, said Nate Kredich, vice president of residential market development, USGBC.

INDUSTRY

Redfin Unveils New Housing Index


The online brokerage Redfin has released a new industry index focusing on the number of consumers
continued on next page

September 2012

Volume 38 Number 9

MORTGAGES

NAR Urges Congress on Qualifying Mortgage Rule


The National Association of Realtors is again urging Washington to develop a broadly defined Qualifying Mortgage (QM) regulation that would allow as many creditworthy homebuyers as possible to benefit from lower interest rates. The regulation would ensure that lenders only make loans to borrowers who have the ability to repay. If the QM regulation is too narrowly defined, it could threaten the housing and economic recovery by denying creditworthy borrowers access to safe, quality loan products, said NARs 2012 Vice President and Liaison to Government Affairs Scott Louser. Louser said current underwriting standards already are tight and are contributing to the slow housing market recovery. NAR believes that an unnecessarily narrow QM definition that covers only a modest proportion of loan products and underwriting standards, and serves only a small proportion of borrowers, would undermine prospects for a full housing recovery and threaten the redevelopment of a sound mortgage market.

they consume content. Whether it is Facebook, Twitter, LinkedIn or your own real estate blog, following a few basic best practices will keep old school habits from making their way into your online marketing efforts. 1 Stay Compliant. Always remember to stay in compliance with your states advertising laws, the Code of Ethics and Fair Housing Laws. Using the Internet to market your business also means you will need to keep your website up to date and in compliance. According to the NAR, 88 percent of home buyers searched for their new home online before enlisting the services of an agent. Ensure that you are easy to find and your credibility is supported by membership in local and national associations. 2 Define Your Audience. Who are you trying to reach? In real estate, one size does not fit all. Make sure you understand the needs of your audience and what drives their decisions. Take this knowledge and create a streamlined look and feel across your blog, website and social media channels. 3 Get to the Point. Keep your message short and sweet. Consumers are hungry for news, but are short on time. Give them what they need in short sound bites. What are the key takeaways you want to get across? Put those in bullet or list format so they are simple to scan and read on the go. 4 Be Unique. There are very few new topics in real estate today. What there is, though, is your unique perspective on existing topics. In order to set yourself apart, you must position yourself as an expert and thought leader. Determine what your niche is and then focus on establishing your personal brand as a specialist within that field. 5 Be Intriguing. What can you tell consumers that will keep them coming back for more? Whether it is market statistics,
continued on next page

AGENTS CORNER

Seven Online Best Practices


We are living in a hyper-connected world. From blogs to Twitter, todays consumers know that they have the power to choose how and when

September 2012 personal observations or tips to navigate the purchase process, offering your visitors, followers and fans the information they need in a topical and engaging way will keep them coming back time and again! 6 Be Transparent. The word has been overused and overhyped, but transparency is still extremely vital when building your online reputation. It is imperative that consumers feel as though who you are online is consistent with whom they meet offline. 7 Monitor, monitor, monitor. There is a multitude of monitoring tools available to help you track and monitor the appearance of your name and company on a daily basis within a variety of media channels. By using these tools, you will be able to see what people are saying about you. Above all else, be very aware of what you are posting. Remember, in our busy online world, what happens in Vegas, now ends up on YouTube.

Volume 38 Number 9

ment and closing costs. Buyers also havent forgotten about moving and possible home repair costs in setting up a savings plan for a home purchase. Y Buyers have their credit in shape: Home buyers know their FICO score and know how it can impact the mortgage rate they get. Y Buyers know what they can afford: Home buyers are already pre-qualified for a mortgage so they know how much they can afford, what types of loans they can qualify for, and set a comfortable monthly mortgage payment goal. Y Buyers are not making other major purchases: Big-ticket purchases, like a car, should be put off until after they buy a home. Potential buyers ready to go know that its best to keep their cash reserves high to prove to lenders they can take on mortgage debt.

Four Signs Buyers Are Really Ready


You have prospects who contact you expressing an interest in purchasing a home, but how do you know if theyre really serious or able to purchase a home? MRIS, a large multiple listing service serving the Mid-Atlantic region, asked its real estate member network for some of the best signs for understanding whether potential buyers are really ready for the task of taking on home ownership. Heres what they found: Y Buyers are increasing their savings: MRIS suggests home buyers save enough money for six months of mortgage payments and at least 3.5 percent of the purchase price for a down paycontinued on next page

9 North Adams Road Rockville, MD 20850 (240) 425-0008 www.michaelstitle.com

SmartsPro
MARKETING

The information presented and conclusions stated in this newsletter are based solely upon our best judgement and analysis of information sources. It is not guaranteed information and is not necessarily a complete statement of all available data. Web site citations are current at time of publication but subject to change. This material may not be quoted or reproduced in any form, including copy machines or any electronic storage or transmission medium, in whole or in part, without permission from the publisher. A special edition of Real Estate Digest is available for real estate agents specializing in commercial property or high-end residential, and for mortgage brokers. Please call 866762-7879 to order your personalized copies today.

All rights reserved. 2012 SmartsPro Marketing PO Box 276 Ashland, Oregon, 97520 http://smartspublishing.com/real-estate-digest/ 866-762-7879

S-ar putea să vă placă și