According to the January Case-Schiller Index, values are down 3.1% from last year, retreating to the same levels from Summer 2003. As a buyer or seller in today's market, though, don't read too much into it. The Case-Shiller Index is far too flawed to be the final word in housing.
Tuesday, April 26, 2011
The Real Estate Geeks – January 2011 Case-Shiller Index : Weak And Flawed
The Real Estate Geeks - Pending Home Sales Rebound; Suggest Brighter Spring For Housing
On a seasonally-adjusted basis, the Pending Home Sales Index rose 2 percent last month, according to the National Association of REALTORS®. A "pending home sale" is defined as a home under contract to sell, but not yet closed.
February's Pending Home Sales Index rebound breaks a 2-month losing streak, and reverses the recent downward momentum in housing. Both Existing Home Sales and New Home Sales volume showed a sizable loss last month.
For buyers and sellers of real estate , the Pending Home Sales Index is of particular import. It's one of the few forward-looking indicators in housing, and February's data suggests a stronger spring season than was the winter.
Region-by-region, Pending Home Sales data varied:
- Northeast Region: -10.9%
- Midwest Region : +4.0%
- South Region : +2.7%
- West Region : +7.0%
3 of 4 regions showed marked improvement, which is good for housing. In the fourth -- New England -- it's likely that inclement weather hampered results.
February was colder-than-normal and the month capped a record-breaking snowfall season for the region. Anecdotally, fewer homes are sold in the cold-and-snow of winter and it's likely that the weather affected local housing markets.
Looking to March and April, therefore, we should expect Existing Home Sales data to rebound. This is because 80% of "pending" homes close within 60 days, and because improving weather should release pent-up demand for housing.
More sales plus higher home demand tends to lead home prices higher. If you're in the market for a new home, consider that your best negotiation leverage comes in a weak market. As the seasons turn, your leverage looks poised to slip.
The best time to buy this year may be right now.
Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today For more current real estate market information just visit our website at http:www.TheRealEstateGeeksTv.com
If you or someone you know is facing foreclosure here's tons of FREE information that will be very useful - http:www.Help4Ca.com until Till Next Time
Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks
Sunday, April 17, 2011
The Real Estate Geeks Water Conservation Tips For Your Home And Garden
According to the EPA, the average U.S. household spends close to $500 each year on water and sewage bills. But by making just a few small changes, that figure could drop by as much as $170 annually. It's all in how you use your water.
In this 4-minute video from Lowe's, you'll learn basic water conservation techniques that you can immediately put to work..
Some examples:
- Don't rinse food from dishes before putting them in a dishwasher. Scrape the dishes instead.
- When brushing your teeth or shaving, turn off the water at the sink.
- Use a rain barrel to capture rain, then use the rain to water plants and shrubs.
There's a host of tips in the video but the recurring theme is that you should never "leave water running". This is because water at home is "treated" water and the amount of energy required to treat 5 minutes' worth of water from a faucet is equivalent to the amount of energy required to run a 60-watt light bulb for 14 hours.
That's a lot of energy.
Water is a precious resource, and it can be expensive, too. Therefore, help the environment and your budget at the same time -- practice water conservation at home.
Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today For more current real estate market information just visit our website at http:www.TheRealEstateGeeksTv.com
If you or someone you know is facing foreclosure here's tons of FREE information that will be very useful - http:www.Help4Ca.com until Till Next Time
Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks
Friday, April 15, 2011
The Real Estate Geeks - 15-Year Fixed Rate Mortgages Look Cheap Compared To Comparable 30-Year Fixeds
It's a great time for buyers and homeowners to look at the 15-year fixed rate mortgage.
According to Freddie Mac's weekly Primary Mortgage Market Survey, the relative "discount" of a 15-year fixed rate loan as compared to a comparable 30-year product is the largest in recorded history. The interest rate spread between the two benchmark products is now 0.77%, nearly double the recent, 5-year average of 0.44%.
Despite its lower rates, however, homeowners that opt for a 15-year fixed mortgage should be prepared for higher monthly payments. This is because the principal balance of a 15-year fixed is repaid in half as many years as with a 30-year amortizing product.
The payment increase is 41% higher at today's rates. If you can manage that, though, you'll reap dramatic interest payments savings over time. For each $100,000 borrowed at today's market interest rates, your mortgage interest costs on a conforming 15-year term mortgage will be lower by $56,000 versus an identically-structured 30-year term. The more you borrow, the more you save.
That said, not everyone should use the 15-year product.
One reason you may want to avoid 15-year products is because the higher payments may lead to financial stress. Unless your monthly income far exceeds your monthly debts, choosing a 30-year product may feel safer for you.
Another reason is that, with less mortgage interest paid, 15-year mortgages don't allow for as many mortgage interest tax deductions. This can have tax implications to you each year. Or, maybe you prefer to have your home leveraged, investing "spare dollars" in stocks and bonds.
These are all legitimate cases to stick with a 30-year term, but if you've ever explored the idea of using a 15-year fixed rate mortgage for your home, today, the math is in your favor. Talk to your loan officer before the rates start rising.
Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today For more current real estate market information just visit our website at http:www.TheRealEstateGeeksTv.com
If you or someone you know is facing foreclosure here's tons of FREE information that will be very useful - http:www.Help4Ca.com until Till Next Time
Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks
The Real Estate Geeks - New Home Sales Fall To All-Time, Recorded Low. Maybe.
Sales of newly-built homes plunged 17 percent to an seasonally-adjusted, annualized 250,000 units in February, and the supply of new homes rose to 8.9 months in February -- a 1.5 month jump from January.
It's the lowest New Home Sales reading in recorded history, according to the Census Bureau, and the third straight report to signal that home values may be slow to rise nationwide this season.
Earlier this week, the National Association of REALTORS® reported Existing Home Sales down 10 percent from February, and the Federal Home Finance Agency said home values slipped 0.3 percent between December and January.
The media has picked up on the trend, too.
- No Spring In Housing's Step (WSJ)
- Is Housing Really In Recovery (CNBC)
- Experts See Weak Recovery (UPI)
There's two interesting angles here. First, the one that's largely neglected in the stories online.
Although New Home Sales read -17% last month, the data's Margin of Error read ±19%. This means that, once additional homes are added to February's New Home Sales tally, it's possible that the reading actually rose 2%.
Because the Margin of Error exceeds the measured reading, February's New Home Sales figures are of "zero confidence". The Census Bureau even says as much in its report.
Or, if the initial reading is accurate, a second story emerges. Namely, how an increase in home supply may help this season's buyers to negotiate better prices for a home, and upgrades from a builder.
There's often more to a real estate story than its headline and February's New Home Sales proves it.
Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today For more current real estate market information just visit our website at http:www.TheRealEstateGeeksTv.com
If you or someone you know is facing foreclosure here's tons of FREE information that will be very useful - http:www.Help4Ca.com until Till Next Time
Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks
Wednesday, April 13, 2011
The Real Estate Geeks - New Home Sales Fall To All-Time, Recorded Low. Maybe
Sales of newly-built homes plunged 17 percent to an seasonally-adjusted, annualized 250,000 units in February, and the supply of new homes rose to 8.9 months in February -- a 1.5 month jump from January.
It's the lowest New Home Sales reading in recorded history, according to the Census Bureau, and the third straight report to signal that home values may be slow to rise nationwide this season.
Earlier this week, the National Association of REALTORS® reported Existing Home Sales down 10 percent from February, and the Federal Home Finance Agency said home values slipped 0.3 percent between December and January.
The media has picked up on the trend, too.
- No Spring In Housing's Step (WSJ)
- Is Housing Really In Recovery (CNBC)
- Experts See Weak Recovery (UPI)
There's two interesting angles here. First, the one that's largely neglected in the stories online.
Although New Home Sales read -17% last month, the data's Margin of Error read ±19%. This means that, once additional homes are added to February's New Home Sales tally, it's possible that the reading actually rose 2%.
Because the Margin of Error exceeds the measured reading, February's New Home Sales figures are of "zero confidence". The Census Bureau even says as much in its report.
Or, if the initial reading is accurate, a second story emerges. Namely, how an increase in home supply may help this season's buyers to negotiate better prices for a home, and upgrades from a builder.
There's often more to a real estate story than its headline and February's New Home Sales proves it.
Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today For more current real estate market information just visit our website at http:www.TheRealEstateGeeksTv.com
If you or someone you know is facing foreclosure here's tons of FREE information that will be very useful - http:www.Help4Ca.com until Till Next Time
Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks
Monday, April 11, 2011
The Real Estate Geeks - 10 U.S. Cities With The Steepest Rent Increases (2010)
Home sales data is easing so far in this calendar year. Home resales and new construction have dropped to multi-month lows and, in many cities, home supplies are rising. One housing sector that's not slowing, however, is rentals.
The rental market is booming.
As reported by the Wall Street Journal, the average apartment vacancy rate is 6.6% nationwide, down from 8.0% last year. In addition, the number of occupied apartments rose by more during Q4 2010 than during any comparable period of the last 10 years.
It's a major reason why rents are up 2.3%.
Some areas, however, fared worse than others. This study of rent increases as published on MSNBC, for example, lists the 10 U.S. cities in which rents increased the most last year. And they may not be the cities you'd expect.
In order:
- Greenville, SC (+11.2%; $669 average monthly rent)
- Chattanooga, TN (+10.4%; $726 average monthly rent)
- Savannah, GA (+8.4%; $866 average monthly rent)
- Portland, OR (+8.1%; $875 average monthly rent)
- San Jose, CA (+8.0%; $1,716 average monthly rent)
- Nashville, TN (+8.0%; $786 average monthly rent)
- Tacoma, WA (+8.0%; $900 average monthly rent)
- Denver, CO (+7.5%; $873 average monthly rent)
- Washington, DC (+7.4%; $1,473 average monthly rent)
- Raleigh, NC (+7.4%; $785 average monthly rent)
Big cities New York (#18), San Francisco (#19), and Chicago (#24) showed modest gains, by comparison.
Not everyone across California wants to be a homeowner, but renters are facing a squeeze. With mortgage rates historically low and home values slow to recover, in many cities, the cost-benefit analysis is shifting toward buying.
Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today For more current real estate market information just visit our website at http:www.TheRealEstateGeeksTv.com
If you or someone you know is facing foreclosure here's tons of FREE information that will be very useful - http:www.Help4Ca.com until Till Next Time
Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks
Saturday, April 9, 2011
The Real Estate Geeks - Existing Home Sales Unexpectedly Drop In February
Existing Home Sales fell 10 percent last month, according to a report from the National Association of REALTORS®.
On an annual basis, 4.88 million homes were sold in February -- the first time annualized home resales dropped below 5,000,000 since November 2010.
An "existing home" is one that's not considered new construction.
And it's not just sales volume that's down. Home inventory is higher, too. At the current pace of sales, the number of months needed to sell the complete home resale inventory rose by 1.1 months, to 8.6 months nationally.
It's the biggest one-month jump in supply since July 2010 -- the month after last year's federal home buyer tax credit program expired.
The data is somewhat unexpected, too. NAR's Pending Home Sales report is a reliable predictor for the housing market and, based on recent findings, home sales were projected to climb in February. It's unclear why they didn't.
Regardless, the February sales data reveals an interesting breakdown by buyer-type. Notably, the percentage of first-time home buyers in the market grew by more than any other segment.
- First-time home buyers : 34% of all sales, +5% from January
- Repeat buyers : 47% of all sales, -1% from January
- Real estate investors : 19% of all sales, -4% from January
Cash buyers represented 33 percent of all sales, up 1 tick from the month prior.
For home buyers, February's Existing Home Sales data suggests more home supply and lower home prices this spring. However, rising mortgage rates could eliminate the monthly savings attributed to falling home values.
To get the most from your mortgage-buying dollar, lock while rates are low.
Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today For more current real estate market information just visit our website at http:www.TheRealEstateGeeksTv.com
If you or someone you know is facing foreclosure here's tons of FREE information that will be very useful - http:www.Help4Ca.com until Till Next Time
Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks
The Real Estate Geeks - Get That Last Drop Of Ketchup (And Other Household Money-Stretchers)
According to Consumer Reports, Americans waste as much as 25% of the products they purchase. From food to pharmaceuticals, pesky packaging is making it hard for consumers to use "the last drop" of the things they buy and, as such, products are thrown out prematurely.
It doesn't have to be that way. Using household tools and basic steps, you, too, can make less waste and stretch your household dollar. This 5-minute interview on NBC's The Today Show shows you how.
For example, you'll learn:
- How to get the last bit of ketchup from the jar (without adding water)
- How to get the last bit of hair gel from the plastic bottle
- How to get the last bit of body lotion from the bottom of the "pump" jar
Furthermore, you'll learn how to rescue over-ripe bananas.
The less you waste at home, the more money you'll save in the bank. Watch the video, take notes, and start making less waste.
Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today For more current real estate market information just visit our website at http:www.TheRealEstateGeeksTv.com
If you or someone you know is facing foreclosure here's tons of FREE information that will be very useful - http:www.Help4Ca.com until Till Next Time
Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks
Sunday, April 3, 2011
The Real Estate Geeks on Good News For Sellers -- Housing Starts Plummet In February
Single-family housing starts plunged unexpectedly last month. Nationwide, starts fell 12 percent from the month prior; and 29 percent from February of last year.
February's figures represents the worst 1-month drop in housing starts since May 2010 -- the month that followed the expiration of last year's federal home buyer tax credit -- and puts single-family housing starts at a 24-month low.
In addition, single-family Building Permits plunged last month, too, shedding 9 percent from January. A building permit is a local government's certification and approval to begin home construction.
Housing permits are an excellent forward-indicator for the housing market. This is because 93 percent of homes start construction within 60 days of permit-issuance. Fewer permits, therefore, directly reduces the number of new homes coming to market in the coming months.
For home buyers looking at new construction or existing homes, this news should create a sense of urgency.
Home prices are based on supply and demand and overall home supply looks headed for a fall. Plus, with mortgage rates retreating and homebuilders projecting higher sales this summer, buyers may face rising home prices before long.
Sellers look poised to regain negotiation leverage.
For now, though, home affordability remains high with properties inexpensive and mortgage rates still low, historically. If you plan to buy a home in 2011, the February 2011 Housing Starts data may be reason to move up your time frame.
With home supplies dropping, prices are likely to rise.
Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today For more current real estate market information just visit our website at http:www.TheRealEstateGeeksTv.com
If you or someone you know is facing foreclosure here's tons of FREE information that will be very useful - http:www.Help4Ca.com until Till Next Time
Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks
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