With real estate agents being independent contractors and fiercely loyal to their respective brand the vote quickly garnished huge attention. It went viral through various social media networks, blogs and emails encouraging agents to vote.
In the end an astonishing 11,355 agents voted, casting just over 390,000 votes for 33 different real estate franchise brands making this — according to knowledge — the largest survey of its kind in the industry. The survey required real estate professionals to vote for a franchise on a scale from 0 – 5; starting from “Never heard of the brand” all the way up to “Excellent brand.” The brand’s scores in all categories were taken into consideration to determine the overall rankings. In the end there was a significant difference in the vote count between most of the top 10, thereby solidifying the placement of the brands.
Although another survey can produce different results and rankings, we are confident that this is a very good reflection of the real estate brokerage industry’s current opinion and awareness of the franchise brands that serve them.
The Top 10 real estate franchises, most recognized by the real estate industry as quality national brands are:
Keller Williams Realty
Coldwell Banker Real Estate
RE/MAX International
Century 21 Real Estate
Prudential Real Estate
Sotheby’s International Realty
EXIT Realty
ERA Real Estate
Weichert Real Estate Affiliates
Better Homes & Gardens Real Estate
The franchises that made it to the Top 5 were to be expected and are also the five largest real estate franchises in the country. The Top 5 also comfortably attracted more votes than the second five on the list, strongly pointing to the industry’s own internal belief that these are the top five franchise brands that agents would like to work for.
Keller Williams Realty’s surprising #1 ranking was most likely due to the strong, above average online and social media presence of their agents and the fact that during 2009 KW surpassed RE/MAX in agent count according to a widely published REAL Trends survey..
The 103-year old Coldwell Banker franchise has been the beneficiary of many NRT, Inc. acquisitions that have allowed the brand to remain at the forefront of many agents in a positive way. RE/MAX with their powerful consumer portal has also enjoyed the highest profile on national television of all the brands, thereby probably contributing to their high ranking.
Tuesday, December 15, 2009
Reasons To Sell Your Home During The Holidays
12 DAYS OF CHRISTMAS MEANS 12 TERRIFIC REASONS TO SELL YOUR HOME DURING THE HOLIDAYS!!! OR… 8 DAYS OF CHANNUKAH PROVIDE 8 REASONS TO SELL YOUR HOME DURING THE HOLIDAYS!!!
READ OUR IDEAS HERE
1. People LOOKING NOW are great buyers – they are more focused if they are looking now!!
2. Less inventory while others gear down means less competition for your home now!
3. Lots of people wait until January so why should you? Be first and Be done!
4. Houses show beautifully when decorated for the Holidays!
5. Emotional holiday buyers want your beautiful home and are more likely to pay your price!
6. Some buyers have time off work and can look now!
7. Some people must buy before the end of the year for tax - or other - reasons!
8. January is new jobs month. Catch those transferees now!
9. You can schedule around your family needs during the holidays and buyers will understand.
10. If you sell now, you can delay closing or extended occupancy until early next year!
11. If you sell now, you will be ready to buy right away with a non-contingent offer! Sell high and buy low!
12. And isn’t that the best reason to have a HAPPY HOLIDAY!??
From our family at Keller Williams Gold Coast to Yours, May we Wish you a
HAPPY HOLIDAY AND A GLORIOUS NEW YEAR!
READ OUR IDEAS HERE
1. People LOOKING NOW are great buyers – they are more focused if they are looking now!!
2. Less inventory while others gear down means less competition for your home now!
3. Lots of people wait until January so why should you? Be first and Be done!
4. Houses show beautifully when decorated for the Holidays!
5. Emotional holiday buyers want your beautiful home and are more likely to pay your price!
6. Some buyers have time off work and can look now!
7. Some people must buy before the end of the year for tax - or other - reasons!
8. January is new jobs month. Catch those transferees now!
9. You can schedule around your family needs during the holidays and buyers will understand.
10. If you sell now, you can delay closing or extended occupancy until early next year!
11. If you sell now, you will be ready to buy right away with a non-contingent offer! Sell high and buy low!
12. And isn’t that the best reason to have a HAPPY HOLIDAY!??
From our family at Keller Williams Gold Coast to Yours, May we Wish you a
HAPPY HOLIDAY AND A GLORIOUS NEW YEAR!
Thursday, December 10, 2009
Tricia Fox Group Sells Chicago
Look for the Tricia Fox Group advertisement appearing in the January issue of Chicago Social!
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Wednesday, December 2, 2009
First Time Buyer Event at the New Park Monroe
Thursday December 3rd, Park Monroe, the Tricia Fox Group of KW Luxury Homes and Guarantee Mortgage are hosting a First Time Buyer event at the newly opened Park Monroe Penthouse Room at 65 East Monroe from 5-7:30. Guests will enjoy cocktails and appetizers and a real estate discussion followed by a tour of several hand-picked Developer Units The new condominium project offers spectacular views and unique roof top amenities, perched high above the 55 East Monroe office building.
Tricia Fox states, "This is a unique opportunity to talk real estate and view the New Park Monroe. Andrew Surma from Guarantee Mortgage will discuss first time or repeat buyer incentives and the current market conditions. 2009 has produced the Tricia Fox Group's second best year in real estate sales. Interestingly, our group results mirror the Gold Coast area stats - most of our sales were either Luxury Category over $1.2m or First Time Buyer category, under $500k. Tax incentives, lower interest rates and good old-fashioned great pricing favor the latter New Buyer Category. Why the surge in executive luxury sales? An educated guess is our buyers seem to want a nice place to live and enjoy and are moving away from the financial corrections of 2008."
The next Fox Group informational seminar will be on December 16th at 5:30 at the new Trump International Condominiums. The Fox Group has sold in excess of $42m at Trump this year. There will be informative discussions from financial industry expert Justin Cozart and Realtor Tricia Fox relevant to the luxury market place, followed by holiday wine and appetizers and a tour of available Trump Residences. Justin Cozart states, "2009 is the year to get a great deal in real estate, from negotiated prices of inventory to outstanding interest rates".
Interested parties for either event can RSVP to attend by contacting marygeorge@triciafoxgroup.com or call 312-981-5361.
Tricia Fox states, "This is a unique opportunity to talk real estate and view the New Park Monroe. Andrew Surma from Guarantee Mortgage will discuss first time or repeat buyer incentives and the current market conditions. 2009 has produced the Tricia Fox Group's second best year in real estate sales. Interestingly, our group results mirror the Gold Coast area stats - most of our sales were either Luxury Category over $1.2m or First Time Buyer category, under $500k. Tax incentives, lower interest rates and good old-fashioned great pricing favor the latter New Buyer Category. Why the surge in executive luxury sales? An educated guess is our buyers seem to want a nice place to live and enjoy and are moving away from the financial corrections of 2008."
The next Fox Group informational seminar will be on December 16th at 5:30 at the new Trump International Condominiums. The Fox Group has sold in excess of $42m at Trump this year. There will be informative discussions from financial industry expert Justin Cozart and Realtor Tricia Fox relevant to the luxury market place, followed by holiday wine and appetizers and a tour of available Trump Residences. Justin Cozart states, "2009 is the year to get a great deal in real estate, from negotiated prices of inventory to outstanding interest rates".
Interested parties for either event can RSVP to attend by contacting marygeorge@triciafoxgroup.com or call 312-981-5361.
Wednesday, November 25, 2009
Keller Williams Luxury Homes by Keller Williams entered the Chicago real estate market as a division of Keller Williams Realty, the third-largest and only profitable real estate firm in the United States. The Keller Williams Luxury Homes division has provided the resources and opportunity to luxury real estate agents and their clients to expose their business to an international marketplace in a seamless and cohesive fashion. KW Luxury Homes is honored to be named Chicago’s favorite luxury home real estate company by the Chicagoland real estate community.
NOMINEES:
Prudential Rubloff Properties
Sudler Sotheby’s International Realty
Friday, November 20, 2009
Trump International Hotel & Tower were honored by the Chicago Architecture Foundation
Donald Trump's Trump International Hotel & Tower and Kirkland & Ellis LLP's 300 North LaSalle were honored by the Chicago Architecture Foundation on Thursday at the group's annual Patron of the Year awards luncheon.
The coveted honors, given to those who commission buildings, are among the few awards handed out in town that are kept a secret until they're announced from the stage.
This year was no different, as attendees made off-the-cuff bets as to who would win.
The afternoon affair sponsored by Stein Ray & Harris LLP was held at the University Club just off Michigan Avenue and featured a number of high-profile guests, including Michael McCaskey, chairman of the board of the Chicago Bears, and Sunny Fischer, executive director of the Richard H. Driehaus Foundation.
The two served on the jury led by famed architect Stanley Tigerman, who drew a crowd of visitors around his table in his first public appearance since being hospitalized for heart-bypass surgery.
"It's good to be out of there," said Mr. Tigerman, whose recent work includes the Holocaust Museum in Skokie.
Other projects honored were the Charles H. Shaw Technology & Learning Center and Richard J. Klarchek Information Commons in the institutional category and the Chicago Cultural Center: Preston Bradley Hall Dome Restoration and Chicago Main Branch Riverwalk in the government category.
Copyright © 2009 Crain Communications, Inc. Posted by Shia K.
The coveted honors, given to those who commission buildings, are among the few awards handed out in town that are kept a secret until they're announced from the stage.
This year was no different, as attendees made off-the-cuff bets as to who would win.
The afternoon affair sponsored by Stein Ray & Harris LLP was held at the University Club just off Michigan Avenue and featured a number of high-profile guests, including Michael McCaskey, chairman of the board of the Chicago Bears, and Sunny Fischer, executive director of the Richard H. Driehaus Foundation.
The two served on the jury led by famed architect Stanley Tigerman, who drew a crowd of visitors around his table in his first public appearance since being hospitalized for heart-bypass surgery.
"It's good to be out of there," said Mr. Tigerman, whose recent work includes the Holocaust Museum in Skokie.
Other projects honored were the Charles H. Shaw Technology & Learning Center and Richard J. Klarchek Information Commons in the institutional category and the Chicago Cultural Center: Preston Bradley Hall Dome Restoration and Chicago Main Branch Riverwalk in the government category.
Copyright © 2009 Crain Communications, Inc. Posted by Shia K.
Wednesday, November 18, 2009
2 Trump Hotel Unit Owners Face Foreclosure
(Crain’s) — Donald Trump’s ritzy new downtown hotel is attracting guests no property owner wants to see: foreclosure lawyers.
In another bad sign for the New York developer, lenders have filed foreclosure suits on two condominium-hotel units in his 92-story Chicago skyscraper, which has been clobbered by the condo bust and the worst hotel market in decades.
The investors who bought the two units from the developer last year are trying to sell them at steep discounts through so-called short sales, or for less than the debt owed on the units. One hotel room is on the market for less than half of what it sold for in March 2008.
Foreclosures and short sales have become routine in the current real estate market, and two lawsuits don’t represent a trend. But they rarely happen so quickly at high-end projects like the Trump International Hotel & Tower, which just opened last year.
The cases also raise questions about how low condo-hotel prices in the riverside project can go. And one broker with listings in the building expects more foreclosure suits in the future.
“No question about it,” says Andrew Glatz, president of Chicago-based brokerage Crown Heights Realty. “There will be a flood of them.”
Mr. Glatz is trying to sell a condo-hotel unit on the 20th floor for $379,000, less than the $493,589 loan balance on the unit. The owner bought the room from a Trump affiliate for $664,000 in February 2008. Wells Fargo Bank N.A. last month filed to foreclose on the unit.
Wells Fargo has also sued to foreclose on a unit on the 24th floor with an original mortgage of $712,000. The unit is on the market for $389,900, 56% less than the $895,000 Trump sold it for in March 2008. Wells Fargo would have to approve both sales if the investors can’t repay the loans in full but want to be released from the mortgages.
Mr. Trump says the two suits and potential short sales say nothing about the project at 401 N. Wabash Ave., which includes 486 residential condos and 339 hotel units. The development is “doing very nicely,” he says, and foreclosure suits in new condo developments are “common all over the place,” not just in his building.
Still, Mr. Trump ran into major loan problems of his own last year, when he and a lending syndicate led by Deutsche Bank Trust Co. Americas sued each other over a past-due $640-million construction loan. The two sides signed a truce in March, and Jason Greenblatt, general counsel and executive vice-president of the Trump Organization, says he expects to reach a more formal settlement in the coming weeks.
That would be good news for the project, which has struggled with slow sales amid the depressed condo market. Sales of residential condos are stuck at 365 units, or 75% of the total, and haven’t really budged in three years, according to Appraisal Research Counselors, a Chicago-based consulting firm that tracks the downtown condo market.
Investors can also buy hotel suites in the building, like they would a residential condo, with the option to occupy the units or have them rented out. But condo-hotel sales stalled out a few years ago and are currently stuck at 191 units, according to Appraisal Research. Though a hot concept during the boom, the condo-hotel has been a tough sell during the bust. Skeptics say hotel units are a bad investment structured in a way to benefit the hotel developer, not the owners.
In a lawsuit filed in September, a Trump condo-hotel investor alleged that the company formed to develop the project broke earlier promises over the hotel units, deciding, for instance, to keep profits from the hotel’s ballroom and meeting space after stating earlier that the money would go to the hotel unit owners. Mr. Greenblatt says he can’t comment on the complaint because hasn’t seen it.
A group of four condo-hotel investors filed a virtually identical suit against the project in 2008 that “was resolved to everyone’s satisfaction,” says Shelly Kulwin, an attorney for the investors in both suits. Terms of the settlement are confidential, he says.
The market for hotel units is especially thin these days because many lenders, leery of the risks, won’t finance purchases of them. And the hotel market is in a deep slump, driving down occupancies and room rates at many hotels. Declining room revenues would make it tough for many owners to cover the mortgage payment, property taxes and assessments.
Unless an investor can buy a unit at a steep discount, owning a hotel suite “absolutely doesn’t make sense in today’s market,” says Mr. Glatz, the broker. “Right now, people have to feed them on a monthly basis and they’re losing money.”
While acknowledging the difficult hotel market, Mr. Trump says his hotel is doing well and has managed to keep its occupancy high. He declines to disclose the hotel’s occupancy or average daily room rates, but Mr. Glatz says the hotel has slashed rates to fill rooms.
Where the hotel market goes from here will be a key factor determining the future value of the Trump condo-hotel suites. But some units in the building could be poised for a big fall based on estimated values of comparable properties; the recent sale of a minority stake in the Peninsula Chicago, one of the city’s most expensive hotels, valued the property at $460,177 a unit, well below the $1-million-plus Trump received for some of his hotel units.
Distress could play a role, too. While two short sales aren’t likely to depress values of other units in the building, a higher number could, says Gail Lissner, vice-president of Appraisal Research, the consulting firm.
“I think it’s all about the quantity,” she says.
By Alby Gallun, Nov. 18, 2009
The condo hotels are a separate company from the residential units which continue to sell well. Maybe Trump should buy them back and just run this as a hotel like Elysian is doing? The hotel is beautiful and is has a high occupancy - and having a hotel instead of hotel condos would solve the problem of difficult financing for those beautiful residential homes at Trump!
In another bad sign for the New York developer, lenders have filed foreclosure suits on two condominium-hotel units in his 92-story Chicago skyscraper, which has been clobbered by the condo bust and the worst hotel market in decades.
The investors who bought the two units from the developer last year are trying to sell them at steep discounts through so-called short sales, or for less than the debt owed on the units. One hotel room is on the market for less than half of what it sold for in March 2008.
Foreclosures and short sales have become routine in the current real estate market, and two lawsuits don’t represent a trend. But they rarely happen so quickly at high-end projects like the Trump International Hotel & Tower, which just opened last year.
The cases also raise questions about how low condo-hotel prices in the riverside project can go. And one broker with listings in the building expects more foreclosure suits in the future.
“No question about it,” says Andrew Glatz, president of Chicago-based brokerage Crown Heights Realty. “There will be a flood of them.”
Mr. Glatz is trying to sell a condo-hotel unit on the 20th floor for $379,000, less than the $493,589 loan balance on the unit. The owner bought the room from a Trump affiliate for $664,000 in February 2008. Wells Fargo Bank N.A. last month filed to foreclose on the unit.
Wells Fargo has also sued to foreclose on a unit on the 24th floor with an original mortgage of $712,000. The unit is on the market for $389,900, 56% less than the $895,000 Trump sold it for in March 2008. Wells Fargo would have to approve both sales if the investors can’t repay the loans in full but want to be released from the mortgages.
Mr. Trump says the two suits and potential short sales say nothing about the project at 401 N. Wabash Ave., which includes 486 residential condos and 339 hotel units. The development is “doing very nicely,” he says, and foreclosure suits in new condo developments are “common all over the place,” not just in his building.
Still, Mr. Trump ran into major loan problems of his own last year, when he and a lending syndicate led by Deutsche Bank Trust Co. Americas sued each other over a past-due $640-million construction loan. The two sides signed a truce in March, and Jason Greenblatt, general counsel and executive vice-president of the Trump Organization, says he expects to reach a more formal settlement in the coming weeks.
That would be good news for the project, which has struggled with slow sales amid the depressed condo market. Sales of residential condos are stuck at 365 units, or 75% of the total, and haven’t really budged in three years, according to Appraisal Research Counselors, a Chicago-based consulting firm that tracks the downtown condo market.
Investors can also buy hotel suites in the building, like they would a residential condo, with the option to occupy the units or have them rented out. But condo-hotel sales stalled out a few years ago and are currently stuck at 191 units, according to Appraisal Research. Though a hot concept during the boom, the condo-hotel has been a tough sell during the bust. Skeptics say hotel units are a bad investment structured in a way to benefit the hotel developer, not the owners.
In a lawsuit filed in September, a Trump condo-hotel investor alleged that the company formed to develop the project broke earlier promises over the hotel units, deciding, for instance, to keep profits from the hotel’s ballroom and meeting space after stating earlier that the money would go to the hotel unit owners. Mr. Greenblatt says he can’t comment on the complaint because hasn’t seen it.
A group of four condo-hotel investors filed a virtually identical suit against the project in 2008 that “was resolved to everyone’s satisfaction,” says Shelly Kulwin, an attorney for the investors in both suits. Terms of the settlement are confidential, he says.
The market for hotel units is especially thin these days because many lenders, leery of the risks, won’t finance purchases of them. And the hotel market is in a deep slump, driving down occupancies and room rates at many hotels. Declining room revenues would make it tough for many owners to cover the mortgage payment, property taxes and assessments.
Unless an investor can buy a unit at a steep discount, owning a hotel suite “absolutely doesn’t make sense in today’s market,” says Mr. Glatz, the broker. “Right now, people have to feed them on a monthly basis and they’re losing money.”
While acknowledging the difficult hotel market, Mr. Trump says his hotel is doing well and has managed to keep its occupancy high. He declines to disclose the hotel’s occupancy or average daily room rates, but Mr. Glatz says the hotel has slashed rates to fill rooms.
Where the hotel market goes from here will be a key factor determining the future value of the Trump condo-hotel suites. But some units in the building could be poised for a big fall based on estimated values of comparable properties; the recent sale of a minority stake in the Peninsula Chicago, one of the city’s most expensive hotels, valued the property at $460,177 a unit, well below the $1-million-plus Trump received for some of his hotel units.
Distress could play a role, too. While two short sales aren’t likely to depress values of other units in the building, a higher number could, says Gail Lissner, vice-president of Appraisal Research, the consulting firm.
“I think it’s all about the quantity,” she says.
By Alby Gallun, Nov. 18, 2009
The condo hotels are a separate company from the residential units which continue to sell well. Maybe Trump should buy them back and just run this as a hotel like Elysian is doing? The hotel is beautiful and is has a high occupancy - and having a hotel instead of hotel condos would solve the problem of difficult financing for those beautiful residential homes at Trump!
Tuesday, November 17, 2009
Far From Shore
This is written by one of my best child-hood friends from Rugby Row in Madison, Wisconsin. I've known Marge since she was 3 and this is a true story of what happened to one of her sons just a few years ago in California. Riveting!
Far From Shore: A Mother's Memoir of a Shark Attack
Available on Amazon
Please visit our website
Far From Shore: A Mother's Memoir of a Shark Attack
Available on Amazon
Please visit our website
Tuesday, November 10, 2009
Trolley Tour of New Construction
Trolley Brunch Tour
Join us for a city tour of select New Construction Buildings.
Enjoy some food and drinks, and talk real estate!
* What: A trolley tour of some of our fine New Construction properties
* Where: Meet at the offices at 676 N Michigan, on Huron, next to the Omni Hotel
* When: Sunday, November 15th from 11:00 a.m. to 1:00 p.m.
* RSVP: triciafox@triciafoxgroup.com or (312) 446-7373
RSVP is mandatory as seating is limited.
Please provide us with your name and the name of your guest.
Tour Schedule
1. 10 E Delaware
2. Walton on the Park
3. Aqua
4. 65 E Monroe
5. The Legacy
Click here for more information or to RSVP
Join us for a city tour of select New Construction Buildings.
Enjoy some food and drinks, and talk real estate!
* What: A trolley tour of some of our fine New Construction properties
* Where: Meet at the offices at 676 N Michigan, on Huron, next to the Omni Hotel
* When: Sunday, November 15th from 11:00 a.m. to 1:00 p.m.
* RSVP: triciafox@triciafoxgroup.com or (312) 446-7373
RSVP is mandatory as seating is limited.
Please provide us with your name and the name of your guest.
Tour Schedule
1. 10 E Delaware
2. Walton on the Park
3. Aqua
4. 65 E Monroe
5. The Legacy
Click here for more information or to RSVP
Credit buoys sellers' hopes
When Congress voted overwhelmingly Thursday to expand the first-time homebuyer tax credit to include repeat buyers, it brought a ray of hope to segments of the Triangle housing market that have not had much to cheer about of late.
The bill, which awaits President Barack Obama's signature, adds a credit worth up to $6,500 for repeat buyers who have lived in their houses at least five years. The legislation also significantly raises the annual income limits required to be eligible to qualify for the tax credits.
The number of people eligible for the new credit is large, and real estate agents hope it will increase sales of houses that are priced beyond the reach of most first-time buyers.
Laurie Kelly, whose North Raleigh house is on the market for $430,000, is optimistic that the new credit will help her both sell her house and buy one in Virginia.
Kelly's husband recently started a new job in Washington, and the family's house has been for sale since the summer.
The Triangle housing market has a glut of houses priced above $400,000.
"We have a beautiful home," she said. "We just have so much other beautiful competition."
The offers Kelly has gotten have been contingent on the buyers selling their existing homes. Kelly hopes the $6,500 tax credit will help those people sell, which in turn will benefit her.
"It's just a domino effect," she said.
Most people who have taken advantage of the first-time homebuyer tax credit in the Triangle bought houses priced below $300,000, which has greatly reduced the inventory of houses at those price points.
About 1.42 million U.S. taxpayers have qualified for the credit through August, including nearly 45,000 in North Carolina, according to the Internal Revenue Service.
Real-estate agents in the Triangle and across the country had grown increasingly nervous about what might happen if the tax credit were allowed to expire Nov. 30.
In the Triangle, the credit was thought to be the main reason that house sales bottomed out this fall. The number of houses sold during September in Durham, Johnston, Orange and Wake counties was 1,595 - up a half percent from the same period a year ago, Triangle Multiple Listing Services data show.
It was the first year-over-year increase in any month since 2007.
Stacey P. Anfindsen, a Cary appraiser who analyzes MLS data for Triangle real estate agents, said he's doubtful the higher priced homes will receive the same boost from the repeat buyer tax credit.
"There are more people with $50,000 jobs than $200,000 jobs," he said. "If you try creating buyers in the $400,000 and up price range you're really just going back to what we were doing before."
Among the causes of the meltdown in the housing sector were the lax lending standards applied to homebuyers. Anfindsen agrees lenders have stopped making risky loans, but he said the $6,500 tax credit may be small when compared to the decline in personal savings and home values experienced by many.
April, June deadlines
The repeat buyer tax credit is already getting the attention of people who have been casually looking to move into a new home but were not in any hurry. The bill passed by Congress requires that first-time and repeat buyers put homes under contract by April 30 and close by June 30.
Chris Shelton, 32, has been considering selling his North Raleigh townhouse and buying a larger single-family house. Shelton works as a mortgage banker for SunTrust, and he said many of his clients are in the same boat as he is.
"If they were looking now they're really going to want to buy," he said. "It would allow you to knock $6,500 off the price knowing that you're able to get that tax money back."
In voting to extend and expand the first-time homebuyer tax credit, policy makers agreed with the real estate industry that removing the incentive would endanger the housing market's fledging recovery.
"You have a combination right now of the real-estate community not only very pleased but breathing a big sigh of relief," said Ross Rhudy, general manager of Ammons Pittman GMAC Real Estate in Raleigh. "If there's going to be any real recovery in the housing market this was a crucial piece to it."
The question now is when the housing market will reach the stage when such incentives are considered no longer necessary.
Michael Walden, an N.C. State University economist, said that question is increasingly being asked about a number of different government programs that have been launched over the past 18 months to help stabilize the economy.
"The argument for this [program] would be this recession is a residential housing-induced recession and we have to get the residential housing market back on track in order to solidify this emerging economic recovery," Walden said. "You could make the argument that although it's costing us money in the short run, if it is getting us out of the recession quicker it's worth it."
BY DAVID BRACKEN - STAFF WRITER, NewsObserver
The bill, which awaits President Barack Obama's signature, adds a credit worth up to $6,500 for repeat buyers who have lived in their houses at least five years. The legislation also significantly raises the annual income limits required to be eligible to qualify for the tax credits.
The number of people eligible for the new credit is large, and real estate agents hope it will increase sales of houses that are priced beyond the reach of most first-time buyers.
Laurie Kelly, whose North Raleigh house is on the market for $430,000, is optimistic that the new credit will help her both sell her house and buy one in Virginia.
Kelly's husband recently started a new job in Washington, and the family's house has been for sale since the summer.
The Triangle housing market has a glut of houses priced above $400,000.
"We have a beautiful home," she said. "We just have so much other beautiful competition."
The offers Kelly has gotten have been contingent on the buyers selling their existing homes. Kelly hopes the $6,500 tax credit will help those people sell, which in turn will benefit her.
"It's just a domino effect," she said.
Most people who have taken advantage of the first-time homebuyer tax credit in the Triangle bought houses priced below $300,000, which has greatly reduced the inventory of houses at those price points.
About 1.42 million U.S. taxpayers have qualified for the credit through August, including nearly 45,000 in North Carolina, according to the Internal Revenue Service.
Real-estate agents in the Triangle and across the country had grown increasingly nervous about what might happen if the tax credit were allowed to expire Nov. 30.
In the Triangle, the credit was thought to be the main reason that house sales bottomed out this fall. The number of houses sold during September in Durham, Johnston, Orange and Wake counties was 1,595 - up a half percent from the same period a year ago, Triangle Multiple Listing Services data show.
It was the first year-over-year increase in any month since 2007.
Stacey P. Anfindsen, a Cary appraiser who analyzes MLS data for Triangle real estate agents, said he's doubtful the higher priced homes will receive the same boost from the repeat buyer tax credit.
"There are more people with $50,000 jobs than $200,000 jobs," he said. "If you try creating buyers in the $400,000 and up price range you're really just going back to what we were doing before."
Among the causes of the meltdown in the housing sector were the lax lending standards applied to homebuyers. Anfindsen agrees lenders have stopped making risky loans, but he said the $6,500 tax credit may be small when compared to the decline in personal savings and home values experienced by many.
April, June deadlines
The repeat buyer tax credit is already getting the attention of people who have been casually looking to move into a new home but were not in any hurry. The bill passed by Congress requires that first-time and repeat buyers put homes under contract by April 30 and close by June 30.
Chris Shelton, 32, has been considering selling his North Raleigh townhouse and buying a larger single-family house. Shelton works as a mortgage banker for SunTrust, and he said many of his clients are in the same boat as he is.
"If they were looking now they're really going to want to buy," he said. "It would allow you to knock $6,500 off the price knowing that you're able to get that tax money back."
In voting to extend and expand the first-time homebuyer tax credit, policy makers agreed with the real estate industry that removing the incentive would endanger the housing market's fledging recovery.
"You have a combination right now of the real-estate community not only very pleased but breathing a big sigh of relief," said Ross Rhudy, general manager of Ammons Pittman GMAC Real Estate in Raleigh. "If there's going to be any real recovery in the housing market this was a crucial piece to it."
The question now is when the housing market will reach the stage when such incentives are considered no longer necessary.
Michael Walden, an N.C. State University economist, said that question is increasingly being asked about a number of different government programs that have been launched over the past 18 months to help stabilize the economy.
"The argument for this [program] would be this recession is a residential housing-induced recession and we have to get the residential housing market back on track in order to solidify this emerging economic recovery," Walden said. "You could make the argument that although it's costing us money in the short run, if it is getting us out of the recession quicker it's worth it."
BY DAVID BRACKEN - STAFF WRITER, NewsObserver
KELLER WILLIAMS WINS CHICAGO CITY-WIDE LUXURY REAL ESTATE AWARD.
Chicago upstart Keller Williams International Realty has sneaked up from nowhere to win the 2009 FAVORITE LUXURY REAL ESTATE SERVICES CITYWIDE AWARD from Chicago Agents’ Choice Awards. Just 11 years in the Chicago real estate market, the local Keller Williams Region now boasts 14 offices and about 600 agents.
While relatively new to Chicago’s Gold Coast, Keller Williams Realty has just surpassed Remax and Prudential as the THIRD LARGEST real estate company in the United States with 72,431 Agents, 683 Offices, $66Billion in Revenue, and $27m in Profit Share. Keller Williams keeps a low profile and sells, services and closes business by utilizing a new model of entrepreneurial agent production. Keller Williams Gold Coast Managing Broker Craig Hogan says, “Successful Real Estate business today is not business as usual. The old dynamics don’t work. We need to target market, meet the clients, surpass in service, and earn our keep. No one works like an owner and at KW we are all owners! We are now the 3rd largest company in U.S. and the only major franchise to show growth this year!”
According to two of the industry’s most comprehensive annual surveys, Keller Williams Realty brokerages continue to defy the pervasive downturn in the industry by growing and expanding. RISMedia’s Power Broker Report and REAL Trends’ REAL Trends 500 rank the largest residential real estate brokerages in the U.S. based on transaction sides and sales volume. This year, Keller Williams Realty had more brokerages on both lists than any other real estate brand.
In the REAL Trends 500 report, Keller Williams Realty dominated, with its offices comprising more than a quarter of the entire list. Of all the major brands represented in the report, Keller Williams was the only company to boast growth in both number of agents added to its ranks and in total transactions closed.
Within RISMedia’s Power Broker Report, Keller Williams Realty again had the largest majority on the list – accounting for 35 percent of all the brokerages listed. The report also ranked Keller Williams Realty #1 in number of agents and total closed transactions.
“These results prove what we already knew – Keller Williams Realty is experiencing the next phase of our growth during this shift,” said Mark Willis, CEO of Keller Williams Realty, Inc. “Our agents and offices are capitalizing on the opportunities presented in today’s market and powering forward.”
“Two years ago, when the market began to shift, we mobilized to make sure our people would have the training, support and technology to tackle the market and they have truly blown us away with their accomplishments,” he added.
“When we do what we do best – coach and train our associates to higher levels of personal productivity and profitability – growth takes care of itself,” said Mary Tennant, president and COO of Keller Williams Realty, Inc. “Keller Williams Realty, the franchise company, didn’t rank on these lists – our people did.”
“We’re confident we’re in businesses with some of the most talented and focused individuals in the industry and we are so proud of all they’ve achieved,” added Willis.
And being Chicago’s Agent Choice Awards Winner this year is quite an achievement for this little engine that could.
About Keller Williams Realty Inc.:
Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 683 offices and 72,431 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty.
While relatively new to Chicago’s Gold Coast, Keller Williams Realty has just surpassed Remax and Prudential as the THIRD LARGEST real estate company in the United States with 72,431 Agents, 683 Offices, $66Billion in Revenue, and $27m in Profit Share. Keller Williams keeps a low profile and sells, services and closes business by utilizing a new model of entrepreneurial agent production. Keller Williams Gold Coast Managing Broker Craig Hogan says, “Successful Real Estate business today is not business as usual. The old dynamics don’t work. We need to target market, meet the clients, surpass in service, and earn our keep. No one works like an owner and at KW we are all owners! We are now the 3rd largest company in U.S. and the only major franchise to show growth this year!”
According to two of the industry’s most comprehensive annual surveys, Keller Williams Realty brokerages continue to defy the pervasive downturn in the industry by growing and expanding. RISMedia’s Power Broker Report and REAL Trends’ REAL Trends 500 rank the largest residential real estate brokerages in the U.S. based on transaction sides and sales volume. This year, Keller Williams Realty had more brokerages on both lists than any other real estate brand.
In the REAL Trends 500 report, Keller Williams Realty dominated, with its offices comprising more than a quarter of the entire list. Of all the major brands represented in the report, Keller Williams was the only company to boast growth in both number of agents added to its ranks and in total transactions closed.
Within RISMedia’s Power Broker Report, Keller Williams Realty again had the largest majority on the list – accounting for 35 percent of all the brokerages listed. The report also ranked Keller Williams Realty #1 in number of agents and total closed transactions.
“These results prove what we already knew – Keller Williams Realty is experiencing the next phase of our growth during this shift,” said Mark Willis, CEO of Keller Williams Realty, Inc. “Our agents and offices are capitalizing on the opportunities presented in today’s market and powering forward.”
“Two years ago, when the market began to shift, we mobilized to make sure our people would have the training, support and technology to tackle the market and they have truly blown us away with their accomplishments,” he added.
“When we do what we do best – coach and train our associates to higher levels of personal productivity and profitability – growth takes care of itself,” said Mary Tennant, president and COO of Keller Williams Realty, Inc. “Keller Williams Realty, the franchise company, didn’t rank on these lists – our people did.”
“We’re confident we’re in businesses with some of the most talented and focused individuals in the industry and we are so proud of all they’ve achieved,” added Willis.
And being Chicago’s Agent Choice Awards Winner this year is quite an achievement for this little engine that could.
About Keller Williams Realty Inc.:
Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 683 offices and 72,431 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty.
Thursday, November 5, 2009
Fed Sees No Need to Raise Interest Rates Soon
The Federal Reserve signaled on Wednesday it was not close to raising interest rates, saying that the economy remained weak even though the recession appeared to be over.
The central bank said it would keep its benchmark interest rate at virtually zero, and it made no change to its longstanding mantra that economic conditions were likely to warrant “exceptionally low” rates for “an extended period.”
For practical purposes, analysts said, policy makers are still at least six months away from tightening monetary policy.
“Economic activity has continued to pick up,” the central bank said in a statement after its two-day policy meeting. But policy makers quickly cautioned consumer spending would be sluggish, businesses were still cutting back and economic growth would be “weak for a time.”
Despite speculation that the Fed might hint about raising interest rates in order to head off future inflation, it was unclear on Wednesday whether policy makers even discussed a change in the wording of their guidance.
Policy makers did elaborate on the economic indicators they will be watching most closely. Those will be the level of “resource utilization,” which primarily means the unemployment rate, the trend in inflation, and the stability of inflation expectations.
The government estimated last week that the nation’s economy grew at an annual pace of 3.5 percent in the third quarter, its first quarterly expansion in a year. But much of that activity stemmed from temporary stimulus measures like the home buyers’ tax credit and the “cash for clunkers” program.
The Fed chairman, Ben S. Bernanke, has cautioned that the recovery was fragile and that unemployment would remain high through the end of next year. The average forecast of Fed policy makers anticipates that the jobless rate, now 9.8 percent, will peak above 10 percent next year and remain well above 9 percent until some time in 2011.
Within the central bank, officials have begun debating when they should start signaling a rollback of its rescue measures. But while some of the Fed’s more hawkish policy makers have publicly suggested it might soon be time for tighter policy, Mr. Bernanke and other officials have made it clear they thought unemployment and slow growth were still the main economic threats.
The central bank did make a tiny reduction in its effort to prop up the mortgage market. It said it would buy slightly fewer bonds issued by agencies that guarantee home loans — $175 billion, rather than $200 billion it originally expected. But it said the change stemmed from a shortage of such securities. The Fed made no change to its much bigger program to buy $1.25 trillion worth of mortgage-backed securities by the end of next March.
“The one consistent theme with all the Fed speakers is that they’re not going to raise rates any time soon,” said Drew Matus, a senior economist at Bank of America-Merrill Lynch. “That is the one consistent theme that gets hammered home time and again.”
Beyond saying that “economic conditions” would continue to warrant “exceptionally low” rates, policy makers said those conditions included “low rates of resource utilization,” “subdued inflation trends” and “stable inflation expectations.”
Fed officials face competing challenges as they try to get monetary policy back to normal over the next several years. They need to make a judgment about timing — tightening too early could send the economy back into a downturn, as happened during the late 1930s; waiting too long would set the stage for inflation.
But policy makers also want to avoid jolting financial markets, which will require them to communicate their plans in advance. They are also grappling with novel questions about their exit strategy. In their statement on Wednesday, Fed officials made it clear they were still seeing little risk of higher inflation, adding that “substantial resource slack” — a euphemism for high unemployment and unused factory capacity — would keep inflation “subdued.”
The Fed’s preferred measure of inflation, which excludes prices of food and energy, has climbed by less than 1.5 percent over the last year, well within Mr. Bernanke’s unofficial comfort range of 1 to 2 percent.
The overnight Federal funds rate, the interest rate that banks charge for lending their reserves to each other, has been held between zero and 0.25 percent since last December.
In addition, the Fed has tried to pump up financial markets and the economy by more than doubling the size of its balance sheet, creating more than $1 trillion in new money for its emergency credit programs and to drive down long-term interest rates by buying Treasury bonds and mortgage-backed securities.
Fed officials have already cut back some of their emergency loan programs and stopped buying Treasury bonds, and they have said they would soon stop buying mortgage securities.
To tighten monetary policy, Fed officials will have to raise interest rates and start cutting the size of its balance sheet by selling the securities it has acquired.
By EDMUND L. ANDREWS
Published: November 4, 2009, New York Times
The central bank said it would keep its benchmark interest rate at virtually zero, and it made no change to its longstanding mantra that economic conditions were likely to warrant “exceptionally low” rates for “an extended period.”
For practical purposes, analysts said, policy makers are still at least six months away from tightening monetary policy.
“Economic activity has continued to pick up,” the central bank said in a statement after its two-day policy meeting. But policy makers quickly cautioned consumer spending would be sluggish, businesses were still cutting back and economic growth would be “weak for a time.”
Despite speculation that the Fed might hint about raising interest rates in order to head off future inflation, it was unclear on Wednesday whether policy makers even discussed a change in the wording of their guidance.
Policy makers did elaborate on the economic indicators they will be watching most closely. Those will be the level of “resource utilization,” which primarily means the unemployment rate, the trend in inflation, and the stability of inflation expectations.
The government estimated last week that the nation’s economy grew at an annual pace of 3.5 percent in the third quarter, its first quarterly expansion in a year. But much of that activity stemmed from temporary stimulus measures like the home buyers’ tax credit and the “cash for clunkers” program.
The Fed chairman, Ben S. Bernanke, has cautioned that the recovery was fragile and that unemployment would remain high through the end of next year. The average forecast of Fed policy makers anticipates that the jobless rate, now 9.8 percent, will peak above 10 percent next year and remain well above 9 percent until some time in 2011.
Within the central bank, officials have begun debating when they should start signaling a rollback of its rescue measures. But while some of the Fed’s more hawkish policy makers have publicly suggested it might soon be time for tighter policy, Mr. Bernanke and other officials have made it clear they thought unemployment and slow growth were still the main economic threats.
The central bank did make a tiny reduction in its effort to prop up the mortgage market. It said it would buy slightly fewer bonds issued by agencies that guarantee home loans — $175 billion, rather than $200 billion it originally expected. But it said the change stemmed from a shortage of such securities. The Fed made no change to its much bigger program to buy $1.25 trillion worth of mortgage-backed securities by the end of next March.
“The one consistent theme with all the Fed speakers is that they’re not going to raise rates any time soon,” said Drew Matus, a senior economist at Bank of America-Merrill Lynch. “That is the one consistent theme that gets hammered home time and again.”
Beyond saying that “economic conditions” would continue to warrant “exceptionally low” rates, policy makers said those conditions included “low rates of resource utilization,” “subdued inflation trends” and “stable inflation expectations.”
Fed officials face competing challenges as they try to get monetary policy back to normal over the next several years. They need to make a judgment about timing — tightening too early could send the economy back into a downturn, as happened during the late 1930s; waiting too long would set the stage for inflation.
But policy makers also want to avoid jolting financial markets, which will require them to communicate their plans in advance. They are also grappling with novel questions about their exit strategy. In their statement on Wednesday, Fed officials made it clear they were still seeing little risk of higher inflation, adding that “substantial resource slack” — a euphemism for high unemployment and unused factory capacity — would keep inflation “subdued.”
The Fed’s preferred measure of inflation, which excludes prices of food and energy, has climbed by less than 1.5 percent over the last year, well within Mr. Bernanke’s unofficial comfort range of 1 to 2 percent.
The overnight Federal funds rate, the interest rate that banks charge for lending their reserves to each other, has been held between zero and 0.25 percent since last December.
In addition, the Fed has tried to pump up financial markets and the economy by more than doubling the size of its balance sheet, creating more than $1 trillion in new money for its emergency credit programs and to drive down long-term interest rates by buying Treasury bonds and mortgage-backed securities.
Fed officials have already cut back some of their emergency loan programs and stopped buying Treasury bonds, and they have said they would soon stop buying mortgage securities.
To tighten monetary policy, Fed officials will have to raise interest rates and start cutting the size of its balance sheet by selling the securities it has acquired.
By EDMUND L. ANDREWS
Published: November 4, 2009, New York Times
Thursday, October 29, 2009
First Time Home Buyer Tax Credit Extended
Good news! It appears that Senate Democrats have recognized the tremendous value of the First Time Homebuyers Tax Credit and that it will be renewed soon. At this time, it is believed that the credit will allow anyone purchasing (even if the property is not closed) a home by April 30, 2010 to participate and receive the full credit available. The credit will be continued (but reduced by 2% each 90 days) through the end of 2010! The credit will be slightly lessened, but it will be renewed and this extension should allow the market to continue to recover into and through next summer’s selling season. Of course, there’s always the possibility that it could be renewed at that time, as well.
Here’s the text of the story as reported in Bloomberg News today:
Senate Banking Committee Chairman Chris Dodd (D-Conn.) says Senate Democrats have agreed to extend the first-time home buyer tax credit. The latest version extends the program to home sales signed — not closed — by April 30. Purchasers would have another 60 days to close the sale. The credit will also be expanded to include so-called step-up buyers who have lived in their current home for at least five years.
The credit would be cut slightly to a $7,290 cap. Income eligibility for first-time home buyers would stay the same, but it would rise for step-up buyers to $125,000 for individuals and $250,000 for couples.
Source: Bloomberg News, Dawn Kopecki and Ryan Donmoyer (10/27/2009)
Here’s the text of the story as reported in Bloomberg News today:
Senate Banking Committee Chairman Chris Dodd (D-Conn.) says Senate Democrats have agreed to extend the first-time home buyer tax credit. The latest version extends the program to home sales signed — not closed — by April 30. Purchasers would have another 60 days to close the sale. The credit will also be expanded to include so-called step-up buyers who have lived in their current home for at least five years.
The credit would be cut slightly to a $7,290 cap. Income eligibility for first-time home buyers would stay the same, but it would rise for step-up buyers to $125,000 for individuals and $250,000 for couples.
Source: Bloomberg News, Dawn Kopecki and Ryan Donmoyer (10/27/2009)
Monday, October 26, 2009
Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum
October 26, 2009
Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®. Existing-home sales–including single-family, townhomes, condominiums and co-ops–jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2% higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.
Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”
Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”
Early information from a large annual consumer study to be released November 13, the 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows that first-time home buyers accounted for more than 45% of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29% of transactions in September.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said affordability conditions remain historically high. “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970, but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” he said. “Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average,” McMillan said.
Total housing inventory at the end of September fell 7.5% to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0% below a year ago.
“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06% in September from 5.19% in August; the rate was 6.04% in September 2008. The national median existing-home price for all housing types was $174,900 in September, which is 8.5% lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.
Single-family home sales rose 9.4% to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7% above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which is 8.1% below a year ago. Existing condominium and co-op sales jumped 9.7% to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7% above the 561,000-unit pace a year ago. The median existing condo price was $175,100 in September, down 11.7% from September 2008.
Northeast
Regionally, existing-home sales in the Northeast increased 4.4% to an annual level of 950,000 in September, and are 11.8% higher than September 2008. The median price in the Northeast was $234,700, down 7.0% from a year ago.
Midwest
Existing-home sales in the Midwest jumped 9.6% in September to a pace of 1.25 million and are 7.8% above a year ago. The median price in the Midwest was $147,600, which is 1.0% below September 2008.
South
In the South, existing-home sales rose 9.0% to an annual level of 2.06 million in September and are 10.8% higher than September 2008. The median price in the South was $153,500, down 7.6% from a year ago.
West
Existing-home sales in the West surged 13.0% to an annual rate of 1.30 million in September and are 5.7% above a year ago. The median price in the West was $219,000, which is 15.0% below September 2008.
Read more: http://rismedia.com/2009-10-25/big-rebound-in-existing-home-sales-shows-first-time-buyer-momentum/#ixzz0V3VvWcJG
Written by: RISMEDIA, rismedia.com
Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®. Existing-home sales–including single-family, townhomes, condominiums and co-ops–jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2% higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.
Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. “Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home,” he said. “We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery.”
Even with the improvement, Yun said the market is underperforming. “Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet,” he said. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history.”
Early information from a large annual consumer study to be released November 13, the 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows that first-time home buyers accounted for more than 45% of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29% of transactions in September.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said affordability conditions remain historically high. “Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970, but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market,” he said. “Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average,” McMillan said.
Total housing inventory at the end of September fell 7.5% to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0% below a year ago.
“The current housing supply is the lowest we’ve seen in two and a half years,” Yun said. “If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06% in September from 5.19% in August; the rate was 6.04% in September 2008. The national median existing-home price for all housing types was $174,900 in September, which is 8.5% lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.
Single-family home sales rose 9.4% to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7% above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which is 8.1% below a year ago. Existing condominium and co-op sales jumped 9.7% to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7% above the 561,000-unit pace a year ago. The median existing condo price was $175,100 in September, down 11.7% from September 2008.
Northeast
Regionally, existing-home sales in the Northeast increased 4.4% to an annual level of 950,000 in September, and are 11.8% higher than September 2008. The median price in the Northeast was $234,700, down 7.0% from a year ago.
Midwest
Existing-home sales in the Midwest jumped 9.6% in September to a pace of 1.25 million and are 7.8% above a year ago. The median price in the Midwest was $147,600, which is 1.0% below September 2008.
South
In the South, existing-home sales rose 9.0% to an annual level of 2.06 million in September and are 10.8% higher than September 2008. The median price in the South was $153,500, down 7.6% from a year ago.
West
Existing-home sales in the West surged 13.0% to an annual rate of 1.30 million in September and are 5.7% above a year ago. The median price in the West was $219,000, which is 15.0% below September 2008.
Read more: http://rismedia.com/2009-10-25/big-rebound-in-existing-home-sales-shows-first-time-buyer-momentum/#ixzz0V3VvWcJG
Written by: RISMEDIA, rismedia.com
Monday, October 12, 2009
Fed Chairman Gives Feedback
"LISTEN TO WHAT THE MAN SAID." And those aren't just the words from Paul McCartney's hit song of the same title...they're also words of advice for anyone who's considering buying a home or refinancing. Last week, Federal Reserve Chairman Ben Bernanke said that as the economy heals, the Fed will be very vigilant to protect against inflation. While inflation is not a problem at present...it will most certainly become a problem down the road. So why does this matter if you are considering purchasing or refinancing? Because inflation is the arch-enemy of Bonds and home loan rates, and just the knowledge of it coming has been causing both Bonds and home loan rates to worsen in recent days. Along with the fear of inflation, the Fed's purchasing program of Mortgage Backed Securities is already slowing down, with the end of their buying in sight - and the reduced demand for these Bonds is also driving home loan rates higher. Bottom line: home loan rates are already on the rise, and we won't likely see these low historic levels again. Interest rates are still very near historic lows - George Washington couldn't have gotten a better interest rate - and the opportunity these low rates present is huge for homebuyers or people looking to refinance. If we haven't talked recently about your own home loan situation - or if you have a friend, family member, neighbor or coworker who needs advice - please call or send me an email. There's no time to waste. On the topic of inflation - Gold has been on a tear higher of late, reaching a record high of $1048 an ounce. Remember that Gold is seen as a "safe harbor" or hedge against a falling Dollar and inflation - as Gold is not likely to lose much value in periods of rising prices. Again, fears of future inflation are pervasive, particularly in light of the massive economic stimulus that has been injected into the US economy...and inflation will drive home loan rates higher. The latest spike in Gold is more likely attributable to the Dollar's recent decline, but both factors are somewhat at play. Also last week, the Initial Jobless Claims Report came in better than expected. According to the report, 521,000 new applications for unemployment benefits were received. That number was lower than the 540,000 that were expected, and marked the fewest number of new claims since the first week in January. However, that good news must be tempered by a look at the big picture...the reality is that despite a better-than-expected number, more than half a million people per week are still applying for new unemployment benefits. That's a sign that the labor market is still very weak. In fact, just last week former Fed Chairman Alan Greenspan also commented that he sees unemployment rising beyond 10%. IN LIGHT OF THE ONGOING WEAK LABOR MARKET, NOW MAY BE A GOOD TIME TO MAKE SURE YOU'RE DOING EVERYTHING YOU CAN TO BE AS PROFICIENT - AND EFFICIENT - AT YOUR JOB AS POSSIBLE. TAKE A LOOK AT THIE MORTGAGE MARKET GUIDE VIEW ARTICLE BELOW FOR HELPFUL INFORMATION ABOUT A BETTER WAY TO EVALUATE YOURSELF AND MAKE IMPROVEMENTS WHERE NECESSARY. |
Forecast for the Week |
Despite the Bond market being closed on Monday in observance of Columbus Day, the Stock market will be open, and the week ahead has plenty of market-moving economic reports on tap. On Wednesday, the Retail Sales Report will be released. This is the most-timely indicator of broad consumer spending patterns, so the markets will be watching to see if it comes in near expectations. Thursday brings us inflation news when the Consumer Price Index (CPI) is reported. After Bernanke's comment last week about the Fed protecting against inflation, the markets will be watching this report closely. On Friday, the Preliminary Consumer Sentiment Index will be reported. This survey is conducted by the University of Michigan and measures consumer attitudes regarding present and future economic conditions. The index rose at the end of September, so the markets will be watching to see if that boost in confidence continued into this month's preliminary report. In addition to the important economic reports described above, industry experts and traders will be paying close attention to the release of the Meeting Minutes from the Fed's most recent Open Market Committee meeting. Once again, any talks about future inflation could move the markets - particularly after Bernanke's comments last week. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see from the chart below, Mortgage Bonds were unable to close above a tough technical ceiling of resistance last week and were ultimately pushed lower, causing home loan rates to rise. |
The Mortgage Market View... |
Know Thyself: Here's An Easy Way To Get Constructive Feedback That May Save Your Job In These Tough Times By Marty Nemko, Contributing Columnist, Kiplinger.com For years, I've been pushing my clients to get a 360-degree evaluation -- that is, asking their boss, co-workers and supervisees for anonymous feedback on their work. I've also suggested using a 360-degree evaluation as a fast track to personal growth, getting feedback from friends, relatives and romantic partner(s). But to be candid, few of my clients have responded to my exhortations and -- hypocrisy alert -- neither had I. An easy evaluation Because I want to practice what I preach and because -- especially as I get older -- I want to do everything I can to avoid becoming stagnant, I decided to get a 360-degree evaluation. A new Web site, Checkster.com, makes it easy to get anonymous, work-related feedback. I did a five-minute self-evaluation at the site and then entered the e-mail addresses of eight people from whom I wanted feedback (you can choose from three to eight). They included my six most recent career-coaching clients, plus my editors at Kiplinger.com and U.S. News & World Report. Checkster.com sent each person an e-mail inviting him or her to give me feedback anonymously, using the five-minute questionnaire. They were given a week to reply. Five of my six clients responded; neither of my bosses did. Hmmph. (Once three or more people responded, I was notified of who did and didn't respond but was not told which questionnaire corresponded to which person.) What I learned My evaluations confirmed a number of positive aspects about me, which I'll refrain from recounting to prevent suspicious readers from thinking that I devised this column as an opportunity to toot my own horn. On the negative side, I got a few useful nuggets:
I'm not sure I'll act much on the last one. I know that I can't solve all my clients' psychological problems, and perhaps I should consider referring a few more to therapy. But too often I've seen therapy actually make clients worse. Yes, therapy patients may gain insight into the causes of their problems, but their life is often no better for it. Yet frequently, in just a few minutes, I'm able to help a client identify irrational beliefs and even the childhood roots of those beliefs that have kept the client stuck. Clients are then able to move forward and implement their action plan. How to react The way I responded to the last client's feedback illustrates an important principle. Some people feel the need to act on all feedback, while others reflexively reject all criticism. The sweet spot is to consider feedback and then accept or reject it on its merits. I understand that you may still be reluctant to do a 360-degree evaluation. You could get bad news or criticism in a tough-to-improve-on area -- for example, being told you're "too intense" or you often "don't get it." But it's worth the risk. A 360-degree evaluation is arguably the most potent way to become a better professional and usually a better person. And, especially in this lousy economy, it could even save your job. (See A Career Survival Kit for more tips.) Still unwilling? Here's a second-best solution: Do a self-SWOT. Write down your strengths, weaknesses, opportunities and threats. Now what, if anything, do you want to do differently? More of? Less of? Marty Nemko is a career coach and author of Cool Careers for Dummies. Reprinted with permission. All Contents © 2009 The Kiplinger Washington Editors. www.kiplinger.com |
The Week's Economic Indicator Calendar |
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise. |
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Thursday, October 8, 2009
Pelosi says homebuyer credit may be extended
The first time homebuyer tax credit may be extended, and even expanded, according to House Speaker Nancy Pelosi.
The $8,000 credit is set to expire Dec. 1.
“Yes, there is under consideration whether we extend the first time homeowners credit,” Pelosi said at a news conference Thursday. “And the question is, would that be just first time homeowners or would you open it up to other purchasers of homes.”
The tax credit has been among incentives fueling a rise in housing sales this year. The National Association of Realtors, which last month called on Congress to extend the credit, says it has brought 1.2 million new buyers into the market.
The NAR estimates 350,000 of those buyers would not have purchased a home without the credit.
Several lawmakers, including U.S. Sen. Benjamin L. Cardin, D-Md., have called for a six month extension of the credit.
An estimated 40 percent of all homebuyers in 2009 are eligible for the credit.
Washington Business Journal - by Jeff Clabaugh Staff Reporter
Monday, October 5, 2009
You've Got 15 More Days To Use The First-Time Home Buyer Tax Credit
The government’s First-Time Home Buyer Tax Credit program expires November 30, 2009 — a scant 60 days from today.
Considering it can take up to 60 days to close on a home, first-time buyers have 2 weeks at most to find a home.
Buyers not under contract by October 15 have little chance of meeting the November 30 deadline and, therefore, little chance of claiming the tax credit.
This is especially true for purchases involving short sales and foreclosures.
Congress passed the First-Time Homebuyer Tax Credit program as part of the 2009 economic stimulus plan. IRS Form 5405 outlines the program criteria which include the following stipulations:
- Buyer may not have owned a “main home” in the past 36 months
- The home may not be purchased from a parent, spouse, or child
- Adjusted gross income for the household must be below $95,000 for single tax filers and $170,000 for joint tax filers
The credit is capped at $8,000 or 10% of the purchase price, whichever is less. And don’t forget — the First-Time Home Buyer Tax Credit is a true tax credit. It’s not a deduction.
This means that a tax filer who claims the full $8,000 and whose “normal” tax liability is $5,000 would receive $3,000 cash from the US Treasury when their tax return is processed by the IRS.
If you can’t close by November 30, 2009, though, you can’t claim the credit.
The clock is ticking. If you’re planning to use the First-Time Home Buyer Tax Credit, the time to act is now.
Posted: Thursday, October 1, 2009www.brokeragentsocial.com
Friday, October 2, 2009
Monday, September 28, 2009
Mortgage Rates Remain Low, Increasing Affordability
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.04 percent with an average 0.6 point for the week ending September 24, 2009, unchanged from last week when it averaged 5.04 percent. Last year at this time, the 30-year FRM averaged 6.09 percent.
The 15-year FRM this week averaged 4.46 percent with an average 0.6 point, down from last week when it averaged 4.47 percent. A year ago at this time, the 15-year FRM averaged 5.77 percent. This is the lowest the 15-year FRM has been since Freddie Mac started tracking it in 1991.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.51 percent this week, with an average 0.5 point, unchanged from last week when it averaged 4.51 percent. A year ago, the 5-year ARM averaged 6.02 percent.
The one-year Treasury-indexed ARM averaged 4.52 percent this week with an average 0.6 point, down from last week when it averaged 4.58 percent. At this time last year, the 1-year ARM averaged 5.03 percent.
"Mortgage rates held relatively steady at three-month lows this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. Correspondingly, the Mortgage Bankers Association reported that mortgage applications jumped 12.8 percent over the week of September 18th to the strongest pace since late May, boosted by refinancing activity."
"In its September 23rd policy statement, the Federal Reserve (Fed) indicated that it plans to keep its benchmark interest rate exceptionally low for an extended period. This will likely benefit consumers who opt for ARMs, because they are typically tied to shorter-term interest rates. The Fed also noted that activity in the economy and housing market has picked up and financial markets have improved.”
Published: September 25, 2009
Realtytimes.com
Tuesday, September 22, 2009
Real Estate Outlook: Recession is Over
Now it's official. The chairman of the Federal Reserve Board himself has said it publicly that it looks like the recession is over.
Here comes the recovery.
But there was a big footnote in Bernanke's speech on the economy last week in Washington: Don't look for a dramatic recovery.
It'll be more like a slow moving, plodding sort of improvement where the economy inches toward expansion. But there'll be no sudden, splashy return to economic boomtime anytime soon.
Bernanke's point about the end of the recession was underscored by a 2.7 percent jump in retail sales for the month of August, according to the Commerce Department.
That's an important indicator because the key to pumping up the economy again is to get consumers spending, and that appears to be happening. Not just for auto sales, which got a big boost in August from the government's "cash for clunkers" program, but also for other key categories, like food and clothing purchases, department store retail, entertainment and restaurant spending, sporting goods.
They were all up for the month, after having been mainly down for well over a year.
One reason for the pick-up in consumer spending: People feel more confident about the direction of the economy in the months ahead. They see the stock market up, so their retirement funds and 401 K plans are bouncing back.
They see home values stabilizing or growing in most areas, so their equity is beginning to increase again.
The one big negative -- and it's definitely a drag for housing -- is the unemployment rate, which Mr. Bernanke said won't be coming down fast, even with the end of the recession.
Nonetheless, the vast majority of Americans who do have jobs have seen their real wages rise this year, up five percent. That's the largest annual gain in fifty years.
All of this is feeding into the housing sector in key markets, such as southern California, where August sales were up 11 percent compared with the year before, according to MDA DataQuick. Even prices are rising slightly.
In the combined markets of Los Angeles, San Diego, Orange County, San Bernadino-Riverside and Ventura, the median price of homes sold gained 2.6 percent in August, which is very encouraging for one of the hardest-hit boom-to-bust areas of the country.
Meanwhile, the mortgage market continues to be exceptionally positive for housing sales and values: 30 year fixed rates averaged just above 5 percent last week, according to the Mortgage Bankers Association, and 15 year loans averaged 4.4 percent.
Published: September 22, 2009
by Kenneth R. Harney
RealtyTimes.com
Monday, September 21, 2009
Washington Report: Tax Credit Changes
The first major change to the $8,000 home buyers tax credit began moving through Congress last week, giving hope to real estate and building groups pushing for extension of the entire program before it expires Nov. 30.
House Ways and Means Committee chairman, Congressman Charles Rangel, a New York Democrat, combined several smaller bills into the “Service Members Home Ownership Act of 2009” late last week, with a floor vote expected this week.
The bill is intended to correct a flaw in the original tax credit legislation: By requiring buyers to occupy and own their first home for 36 months to fully qualify for the credit, the program creates serious problems when military, Foreign Service and intelligence agency personnel are transferred overseas.
During their absence, they are not occupants of their houses, and sometimes have to rent them out or sell. Any of these events make them ineligible to retain the $8,000 credit under current law. Ineligible buyers must then repay the credit to the IRS.
Oregon Congressman Earl Blumenauer, sponsor of one of the bills consolidated into Rangel's, said “it is absurd that thousands of Americans serving our country, away from friends and family ... must choose between their service work and home ownership.”
The Ways and Means committee's bill would waive the repayment requirement when a service member must sell a home within the 36 month period because of a transfer to a new duty station or overseas, and would count service-related absences toward the 36 month requirement.
Another provision in the bill would extend the $8,000 credit for another year for personnel who may have missed out on claiming the credit because they thought they wouldn't qualify due to an overseas posting.
The credit for these individuals would be extended to November 30, 2010 from November 30, 2009, provided the served outside the U.S. for at least 90 days during calendar year 2009.
The bill, which has bipartisan support, could be sent to the Senate for action as early as next week, Congressional sources told Realty Times.
More important for the housing market overall, however, is the precedent set by the bill's extension of the credit for an extra year. It's not a far leap from that position to a general extension of the entire $8,000 credit program to the same date.
The National Association of Realtors, National Association of Home Builders and the Mortgage Bankers Association jointly sponsored an ad campaign last week aimed at convincing Congress to give the credit program another year.
Realty Times will keep you on top of this fast-moving issue as it develops.
Published: September 21, 2009
by Kenneth R. Harney
Realty Times- Washington Report
Thursday, September 17, 2009
Homebuyer Tax Credit
The IRS has just reported that since it’s inception 1.4 million people have used the Homebuyer Tax Credit. That’s an extremely popular program! Please remind your buyers that the credit is due to expire at the end of November. Have a great week!
Friday, September 4, 2009
Whose Brand Matters?
2008–2009 Comparative Performances Among Brokerages on the REAL Trends 500 Report
| Company | Change in Total # of Sides | Change in Total # of Offices | Change in Total # of Agents |
| Keller Williams | +6% | +35% | +19% |
| RE/MAX | -24% | -23% | -25% |
| Century 21 | -34% | -39% | -45% |
| Coldwell Banker | -32% | -18% | -25% |
| Prudential | -26% | -18% | -16% |
| ERA | -39% | -14% | -27% |
| Realty Executives | -32% | -35% | -32% |
| GMAC | -31% | -9% | -21% |
Source: REAL Trends 2009
Among brokerages that made the REAL Trends 500, Keller Williams brokers have the largest share of the market of transaction sides. Keller Williams Realty is the only major real estate company on the 2009 REAL Trends 500 Report with brokerages that reported increases in the total number of sides, offices, and agents between 2008 and 2009.
Broker Representation by Transaction Sides
· Keller Williams Realty - 26%
· RE/MAX - 24%
· Coldwell Banker - 10%
· Prudential - 7%
· Century 21 - 4%
· Realogy - 3%
· ERA - 2%
· Realty Executives - 1%
· GMAC - 1%
· All Independents
· Combined - 22%
Source: REAL Trends 2009
What Sets Keller Williams Realty Apart
A philosophy of putting the agent first translates into a supportive culture and market-leading education, training, coaching, and technology that provides agents with an edge in the marketplace. Evidence that Keller Williams Realty is gaining ground during one of the most pronounced market corrections in history underscores the models upon which the company was founded. To an increasing degree, agents are realizing the importance of promoting their own brand, rather than the brand of their company. It is the enterprising agents within Keller Williams Realty who are driving the growth by drawing in a steady stream of new talent.
In a recent blog post, Mark Zawaideh, an associate who recently joined Keller Williams Realty’s Northville Market Center outside of Detroit, noted what it means to his business to be able to build his own brand. “I am a salesman, and it’s my job to be an expert at marketing to my clients, right? So how can you honestly say you’re an expert at marketing your clients’ properties if you can’t even market yourself? So a couple of years ago, I decided to create the MARK Z brand. My clients all love the signs because you can’t help but notice them. This creates more exposure for my clients and in turn more exposure for me. It’s a win-win for everybody. I thought it was great exposure (for my former broker). They didn’t agree, and in November of last year, said the signs must come down! I was devastated. They said it looks like it’s my own company and not a part of the franchise … I wanted a company that would stand behind me and my success, and not try to interfere with it … It’s not my duty to brand the company I work for, since last time I checked, we are independent contractors. And when was the last time someone called your company and said, “I want to list with your company; I just need you to send out an agent.” It doesn’t happen.
Conclusion
In every market, real estate agents have a wide range of companies with which they can join forces. An industry that is as diverse and dynamic as residential real estate allows for a wide range of approaches and business models. It is up to individual agents to determine the models and perspectives that fit with their own objectives and then to move forward in building their careers. As the recent shifts in market share indicate, however, the trend is clearly toward an agent centric culture and an environment that encourages and educates individual agents to build their own brands. Noted industry experts are reinforcing this trend.
According to Jeremy Conaway, president and CEO of RECON Intelligence Services, Inc., Traverse City, Michigan, a leading source of strategic ideas for the real estate industry: Within the industry there is a race on to capture the hearts and minds of this new marketplace. Many of yesterday’s greatest drivers are entering five-year-old cars that are powered by conventional engines. Time will demonstrate that these entries will simply not work in this new environment. The Keller Williams systems entry is powered by a ‘Porsche’ level quality engine that is in its tenth or eleventh iteration. It has been engineered for today’s marketplace, and if driven correctly, will perform to the highest profitability and productivity standards. Very few industry participants have the human, financial, or intellectual resources to engage in this level of engineering. It’s that simple.
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