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Existing Home Sales Rise In February | WASHINGTON, March 24, 2008 - Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®. Existing-home sales - including single-family, townhomes, condominiums and co-ops - rose 2.9 percent to a seasonally adjusted annual rate (1) of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September. Lawrence Yun, NAR chief economist, said the gain is encouraging. "We're not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing," he said. "Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year." The national median existing-home price (2) for all housing types was $195,900 in February, down 8.2 percent from a year earlier when the median was $213,500. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively fewer sales in higher priced markets. Home prices within metropolitan areas are more telling. The most recent data shows roughly half of the metro areas in the U.S. with price increases, with healthy gains in markets such as Oklahoma City and Trenton, N.J. "In other areas such as Sacramento, a rapid price decline has induced buyers to come into the market and sales are now rising," Yun said. "The relationship between home prices, interest rates and income has improved to the point where buyers are more serious about making offers." According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92 percent in February from 5.76 percent in January; the rate was 6.29 percent in February 2007. NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said that negotiation and knowledge are even more important in the current market. "Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home's value," he said. "Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both buyers and sellers, today as much as ever." Total housing inventory fell 3.0 percent at the end of February to 4.03 million existing homes available for sale, which represents a 9.6-month supply (3) at the current sales pace, down from a 10.2-month supply in January. Single-family home sales increased 2.8 percent to a seasonally adjusted annual rate of 4.47 million in February from an upwardly revised 4.35 million in January, but are 22.9 percent below 5.80 million-unit level a year ago. The median existing single-family home price was $193,900 in February, down 8.7 percent from February 2007. Existing condominium and co-op sales rose 3.7 percent to a seasonally adjusted annual rate of 560,000 units in February from a downwardly revised 540,000 in January, and are 29.7 percent below the 797,000-unit pace in February 2007. The median existing condo price (4) was $211,700 in February, which is 4.9 percent lower than a year ago. |
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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 6.26 percent with an average 0.4 point for the week ending November 1, 2007, down from last week when it averaged 6.33 percent. Last year at this time, the 30-year FRM averaged 6.31 percent. The 30-year FRM has not been this low since the week ending May 17, 2007, when it averaged 6.21 percent. The 15-year FRM this week averaged 5.91 percent with an average 0.4 point, down from last week when it averaged 5.99 percent. A year ago, the 15-year FRM averaged 6.02 percent. The 15-year FRM has not been this low since the week ending May 10, 2007, when it averaged 5.87 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.98 percent this week, with an average 0.4 point, down from last week when it averaged 6.03 percent. A year ago, the 5-year ARM averaged 6.05 percent. The 5-year ARM has not been this low since the week ending May 17, 2007, when it averaged 5.92 percent. One-year Treasury-indexed ARMs averaged 5.57 percent this week with an average 0.6 point, down from last week when it averaged 5.66 percent. At this time last year, the 1-year ARM averaged 5.53 percent. The 1-year ARM has not been this low since the week ending May 31, 2007, when it averaged 5.57 percent. "October's consumer confidence fell to its lowest level since October 2005 as mortgage rates continued to decline this week to their lowest level in almost six months," said Frank Nothaft, Freddie Mac vice president and chief economist. "Continued market concerns about weaker economic growth and further declines in the housing market have kept mortgage rates low over the last few weeks." "Although the third quarter gain in real gross domestic product (GDP) of 3.9 percent was stronger than market forecasts, the housing market has subtracted from GDP growth over the past twenty-one months ending in September. In its most recent policy announcement, the Federal Open Market Committee (FOMC) noted that the rate of expansion in the economy will most likely slow in the near term, due in part to a reflection of the intensity of the housing correction." Published: November 2, 2007
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- Selection, selection, selection. There are just under 3,000 resale homes on the market in Alachua county(Gainesville FL). Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped below 600 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.
- No Bidding Wars. In 2005 we had one client that made an offer on ten homes. They lost the first nine to the 'feeding frenzy' that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.
- You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 85%. A seller will not be insulted if you 'make them an offer they can't refuse'.
- Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.
- Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2005 many buyers waived these contingencies in order gain an advantage with multiple offers.
- There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines. R.L. Brown estimates that builders have thousands of specs ready for immediate occupancy.
- Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
- Few, if any investors. It is estimated that one third of all sales in 2005 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.
- Location, location, location. Today's buyers can find homes closer to work. In the past buyers flocked to the rural areas in order to find affordable homes. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines, and relatives.
- Real Financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back in business. It's a great time to buy real estate!
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Freddie Mac Weekly Survery Finds Mortgage Rates Mixed
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 6.40 percent with an average 0.5 point for the week ending October 18, 2007, unchanged from last week when it averaged 6.40 percent. Last year at this time, the 30-year FRM averaged 6.36 percent. The 15-year FRM this week averaged 6.08 percent with an average 0.6 point, up from last week when it averaged 6.06 percent. A year ago, the 15-year FRM averaged 6.06 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.11 percent this week, with an average 0.5 point, down slightly from last week when it averaged 6.12 percent. A year ago, the 5-year ARM averaged 6.11 percent. One-year Treasury-indexed ARMs averaged 5.76 percent this week with an average 0.6 point, up from last week when it averaged 5.73 percent. At this time last year, the 1-year ARM averaged 5.57 percent. "Both economic indicators and mortgage rates came in mixed this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "While retail sales were stronger in September, consumer confidence fell below market expectations in October. Moreover, both the core consumer price index and producer prices for September remained contained." "In his October 15th speech, Fed Chairman Bernanke suggested housing would be a 'significant drag' on the economy going into the next year. Indeed, inventories of unsold homes remained exceptionally high. And October's homebuilder confidence fell to the lowest level since 1985, when record keeping began." Published: October 19, 2007
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Consumers Remain Confused About Mortgages
by Broderick PerkinsConsumers are confused, concerned and craving more regulatory protection when it comes to home loans. Nearly half of mortgage consumers who hold adjustable rate mortgages (ARMs) aren't very informed about their mortgage terms, 40 percent of high-income borrowers say the next interest rate adjustment could break the household budget and 77 percent want more government regulation for mortgage lending. Peter D. Hart Research Associates, on behalf of the AFL-CIO, recently surveyed 500 homeowners with ARMs and found homeowners are grappling with a host of issues impacting their loans. The "Homeowners Confused, Worried About ARMs" study has findings similar to those in Bankrate, Inc.'s "Mortgage Ignorance Rampant" study conducted earlier this year. Mortgages continue to confound. As in the Bankrate study, key findings in the AFL-CIO-commissioned study include evidence that ARM holders lack vital information about their loan and how it can affect the household budget. - Nearly half, 49 percent, say they aren't very informed about their mortgage's terms and conditions.
- One in five, 18 percent, does not know their current interest rate.
- Most, 73 percent, don't have a clue how much their monthly mortgage payment will increase the next time their rate rises.
- Nearly half, 47 percent, don't know what factors determine the amount of their rate adjustment and only 20 percent correctly answered how their rate is determined.
- Fifty-six percent do not recall their lender telling them how much they would be paying with their rate resets.
The AFL-CIO study also found that many ARM holders foresee financial problems down the not-too-distant road. - Households with incomes of $50,000 or less start off behind the eight ball with higher-than-average rates on their loans -- 57 percent have rates in excess of 6 percent, compared with 39 percent of borrowers with incomes of more than $50,000.
- Thirty-seven percent of higher-income borrowers say it is likely they will have to cut back on items such as groceries and gasoline once their rate increases. The same is true for 80 percent of lower-income borrowers.
- Also, 36 percent of lower-income borrowers may have to postpone a major health procedure, 38 percent will have to postpone college or other education, 37 percent say they may face foreclosure and 18 percent say they will have to give up health insurance because of monthly mortgage payment increases.
"What we have here is a tale of two communities," said AFL-CIO President John J. Sweeney. "The trap door between the American Dream and the American Nightmare for these homeowners is the ARM adjustment. This survey shows that many homeowners simply are not prepared for the steep rise in mortgage payments that this market inflicts on ARM holders," Sweeney added. Many homeowners continue to enjoy introductory rates, indicating current market conditions are just the tip of the proverbial iceberg. Broker borrowers are less likely to feel informed about the conditions of their loans than bank customers, 45 to 61 percent. They are also more likely to say they do not know where to turn should there be a problem paying the mortgage, 42 percent to 31 percent. They are more than twice as likely to have an interest rate of 8 percent or higher, 24 percent to 10 percent. Also, broker borrowers are more likely to have been late making a payment, 28 percent to 16 percent and to have maxed-out credit cards, 25 percent to 18 percent. Coinciding with the release of the study, the AFL-CIO's Union Privilege benefits provider for union families, announced a "Save My Home Hotline", 1-866-490-5361, to offer free, around-the-clock advice from U.S. Department of Housing and Urban Development-certified counselors. Face-to-face counseling is also available. The AFL-CIO also sponsors a trust to assist union members with financial hardship due to disability or unemployment. "Nearly four out of 10 homeowners in the poll say they wouldn’t know who to turn to for help if they had difficulty paying their mortgage," said Leslie Tolf, president of Union Privilege. "Unions are at the forefront of closing that gap," she added. Published: October 17, 2007
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• 1,331 sq. ft., 2 bath, 3 bdrm single story
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MLS®
#61668
$149,995
White Springs, Hamilton County
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Come and see this brand new home in the town of White Springs. Home features a split plan complete with a very large kitchen and dinning area. All this on a half acre of land with city utilities. Bring your buyers and make an offer today.
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• single story
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MLS®
#61298
$85,000
Fort White, Lake City
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Come and view this beautiful pasture land with scattered trees. Parcel is located in southern Columbia county. Property has a slight roll and can be used for a home or a mobile home. Come view and make and offer today.
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• single story
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MLS®
#61297
$59,995
Columbia County, Florida
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Come and see this beautifuly wooded parcel located between Lake City and Fort White. This parcel comes complete with well and septic in place. Property contains a varity of hardwoods and larger trees. Mobile homes are allow come and make and offer today.
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• 1,787 sq. ft., 2 bath, 3 bdrm single story
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MLS®
#283009
$229,900
Columbia County, Florida
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Come and see this beautiful all brick home on over half and acre in Fort White FL. This home features an open floor plan and is in like new condition and has been very well maintained. Home is a split plan and features a large great room and a stunning master suite and huge tiled shower. Home also comes with a home generator and transfer switch already installed. Come and view this home today.
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• 1,563 sq. ft., 2 bath, 4 bdrm single story
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MLS®
#280179
$167,500
Cedar Grove, Gainesville
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Come and see this well kept home in the sought after Cedar Grove neighborhood. (Located within walking distance of the new Wal-Mart supercenter). Home is located on a culdesac and near the new neighborhood park to be. This seller is motivated so come and make an offer today.
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• 2,028 sq. ft., 2 bath, 3 bdrm 2 story "Townhouse"
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MLS®
#281657
$259,900
Fletchers Mill Charleston Park, Gainesville
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Come and view the barely lived in townhome in Charleston Park. Home comes complete with all appliances including washer and dryer. Seller is very motivated so bring all offers.
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• 1,100 sq. ft., 1 bath, 3 bdrm ranch
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MLS®
#281836
$133,999
Lynwood Park, Alachua
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Come and see this brick home on Alachua. This home sits on a nice wooded lot near the town REC center and the downtown area. Home also has a wood burning fireplace. Home needs a little TLC but would be perfect for almost anyone. Come and view and make an offer as seller is motivated. Home is being sold in AS IS condition.
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• 2,208 sq. ft., 3 bath, 3 bdrm single story
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MLS®
#282182
$349,000
Forest Plantation, Lake City
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Come and view this beautiful home located in Columbia County. This home is located in one of Lake Cities most sought after upscale subdivisions. Home is loaded with custom upgrades such as maple cabinets, plumbing fixtures, light fixtures and very well done landscaping package including a waterfall pond. Home also features two master suites complete with access to the back screened porch. This home is imaculate and is a must see to appriciate. Please call and schedule an appointment to view today.
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