Wall Street Journal - Latest Home Price Data Is Good News for Buyers
I think this may be one of the best articles recently written on why it is the best time to buy real estate. Full of facts, not fiction - a must read for buyers who have been waiting, waiting, waiting. To read the article in full click here.
Great news in the real estate world. According to NAR, pending home sales are up in the 4 regions they track. Here is the article for your review. Pending Homes Sales
(October 1, 2009 Release)
Highlights
• The pending home sales index rose 6.4 percent in August to 103.8, compared to 97.6 in July. • The pending home sales index rose 12.3 percent from a year ago. • All four regions reported increases: the West, Northeast, Midwest and South posted increases of 16.0 percent, 8.3 percent, 3.1 percent and 0.8 percent, respectively.
Pending Home Sales Index
Aug 09
July 09
3 mo Avg
1 year ago
United States
103.8
97.6
98.7
92.4
% change
6.4
3.2
12.3
Northeast
85.3
78.8
80.3
75.3
% change
8.3
-3.0
13.3
Midwest
90.8
88.1
89.1
81.5
% change
3.1
-2.0
11.4
South
104.6
103.8
99.5
92.6
% change
0.8
3.1
13.0
West
130.5
112.5
103.5
93.8
% change
16.0
12.1
39.1
Source: National Association of Realtors; index is seasonally adjusted
Analysis
The index of pending home sales reported by the National Association of Realtors, climbed 6.4 percent in August compared to the previous month. The surge in sales contracts on existing homes in August was the highest monthly pace of contracts this year; and also was the seventh consecutive monthly gain in the index. The pending sales index is now 12.4 percent above the index registered in August 2008. The large jump in the index exceeded economists’ expectations as represented by a panel of analysts surveyed by Briefing.com that had a forecast of a 1 percent rise in the index.
Pending home sales are contract signings, not closings, and thus considered a leading indicator of existing home sales which are closings. The ramp up in home sales contracts over the past several months can be partially attributed to the $8,000 first-time homebuyer tax credit which is set to expire November 30. It is likely that a meaningful number of first-time buyers are hurrying to sign contract to purchase homes before the $8,000 tax credit expires at the end of next month.
Last week, the NAR reported in another report that existing home sales in August fell 2.7 percent from the previous month which brings into question the accuracy of the pending home sales index as a reliable indicator of future home sales. Many economists agree that the fallout rate-the rate at which contract signings never reach the closing stage-has increased markedly in recent months and probably explains the discrepancy between contracts and closings. Some of the households that sign a sales contract may not be able to obtain a mortgage to close the deal due to stricter credit underwriting standards. The NAR also cites that there continues to be problems in the new appraisal rules which are making it difficult for some deals to satisfy the loan-to-value ratios required by underwriters.
Nevertheless, the surge in pending sales contract volume in recent months indicates that buyers are coming back to the home buying marketplace. They are signing contracts, but not all of them actually close. The favorable news in the pending home sales report bodes well for future existing home sales activity. Combined with other recent favorable housing reports over the past several months, strengthens the notion that the housing sector is firmly on a recovery trajectory, at least from a sales perspective.
I don't know if any other Realtors are experiencing this or not but all of a sudden I have buyers looking at property, both investment property condos and villas in the resort areas around Charleston) and residential property...this for families that are moving to the area on a permanent basis.
Not only that, I am experiencing a lot of activity on some of my well priced listings. Guess I may have just answered my own question.
This past Thursday the Post and Courier ran a story on Charleston Home sales. The gist of the story is what we all know and folks are experiencing throughout the country. Homes sales are down, along with home prices. But, there is a silver lining in the article that is slowly emerging. As the prices drop, real estate becomes relatively more affordable, which translates in to more sales. To read the article, just click here.
Below is an interesting article on the Housing Industry and one bit of good news admist all the doom and gloom of late.
Lampert Puts Money On Housing Rebound Stakes Being Taken In Battered Builders, Lenders and Retailer
By GARY MCWILLIAMSJune 12, 2008; Page C4
Billionaire hedge-fund manager Edward S. Lampert is placing new bets on a U.S. housing recovery, buying stakes in beaten-up home builders, mortgage lenders and a home-improvement retailer.
Mr. Lampert's ESL Investments Inc., which owns half of department-store giant Sears Holdings Corp. and 40% of car retailer AutoNation Inc., has previously focused with mixed success on retail and bank stocks.
Recently, the Greenwich, Conn., hedge fund, which controls investments it valued at about $11.6 billion in its most recent government financial report, began picking up shares in hard-hit housing-related stocks. ESL acquired small stakes in U.S. home builders Centex Corp. and KB Home, according to its latest Securities and Exchange Commission filings. At recent prices, the stakes in the two home builders are valued at $10.4 million and $10.8 million, respectively. ESL also is tip-toeing into mortgage origination and servicing, acquiring about four million shares of CIT Group Inc., a struggling subprime home and commercial lender, as well as 1.4 million shares of PHH Corp., a mortgage originator and mortgage-service company. The shares are valued currently at about $35.5 million and $25.2 million, respectively. ESL spokesman Steve Lipin declined to comment on the investments.
Mr. Lampert's purchases come as some analysts think the housing market's decline may be nearing an end.
In another bet on a housing turnaround, Mr. Lampert this spring increased his stake in Atlanta-based home-improvement retailer Home Depot Inc. ESL now holds about 22.7 million shares valued at $590 million, up from 16.7 million shares last year.
Well, last week Mark and I quietly slipped out of town and headed to Sanibel for some R & R. For as slow as most of 2006 & 2007 were, 2008 started out with a bang, and I was as busy as I could have desired. (Of course, it helped that on the long days, Mark would have the hot tub running, a cool beverage for me and the grill sizzling when I finally got home. He is the best!)
There was a big increase in showing appointments on many of my listings. I am hoping this translates into actual offers. Even the local paper has been more positive on the housing market in the Charleston Tri-County area, while the national media continues to focus on the doom and gloom of some areas of the country...not giving any attention to the bright spots. But as we know, bad news sells.
Back to Sanibel. Home of glorious sunsets, shells and peaceful times. I finished reading Atonement, something I wanted to do before I saw the movie. We have read some "fun" books by a local Sanibel resident, Randy Wayne White, and have loved recognizing some of the local characters and landmarks in his books.
Tomorrow we head home and plunge back into the thick of things, including preparations for my Dad's 80th birthday party and his parachute jump! Yes, a parachute jump. More on that, with pictures, after the fact.
Jonathan Clements of the Wall Street Journal did an informative personal finance video on measuring return on investment with real estate. Although the formulas aren't foolproof, his thoughts are valid and interesting.
About Betty Poore's Charleston Coast, SC Real Estate Website: The www.charlestoncoasthomefinder.com web site provides Charleston, Seabrook Island, Kiawah Island, Folly Beach, James Island, Sullivans Island, Isle of Palms, Dewees Island, Daniel Island, Mount Pleasant and the Charleston Coast, South Carolina real estate information and resources to guide homeowners, homebuyers and real estate investors through the process of selling and buying a house, condo or other realty property in the Charleston Coast area. Betty Poore Sometimes spelled as Bettye, Betti, Bettie, Bety, Beti, Betie, Poor, Pore, Porre, Pour, or Poure has services to help you get the best value for your Charleston Coast home and this website offers home buyers and home sellers a superior comparative market analysis (CMA), a way to view real estate and MLS IDX listings including virtual tours, prepare your home for sale, and more. Investors looking for real estate investment properties to invest in need look no farther. Anyone selling a home, buying a home or seeking housing can learn more about our realty services, and will appreciate working with a Charleston Coast REALTOR who knows the area so well. Through trusted partners, we also provide real estate and financial services to consumers looking for houses for sale or selling their home in Charleston Coast, SC, such as mortgages, credit history, new homes, foreclosures and other services. If you've already tried to go the for sale by owner (FSBO) route and find you are needing a partner who you can trust in the sale of your most precious asset, Betty Poore can take care of your special needs. It really doesn't matter if you spell it REALTOR, Realator or Realter, realty, realety or reality, real estate or realestate, Betty speaks your language.
