Chesapeake Real Estate: 1st Time Home Buyers--TIME TO ACT

Act Now

to 

Save 

That winter weather is long gone from Hampton Roads!!  Spring has sprung on the meterological calendar and is showing itself in warmer temps in late March.  April will be much of the same.

Thus:  NOW IS THE TIME TO ACT!!!

Savvy sellers and home buyers that have purchased two or more homes are very aware of the need to act now.

Renters that have been aching to stop handing landlords money that they never seen benefit from(other than a foof over their heads) have a prime opportunity.

Prices are up a bit:

But not excessively for the 1st time Home Buyer.  Typically, as a 1st time buyer, the home will be in the lower price ranges which in Chesapeake is in the under $300,000 price range.  Another consideration is the 1st time Home Buyer seeks payments equal or less than rent.  Thus, a second reason this price range is the primary

range for such buyers.

A key reason for the 1st Time Home Buyer(or any buyer) to act now is interest rates.   The rates remain historically low...in fact very historically low.  I had a first time home buyer close on a house last week with a 3.5% rate.  That is less than 1/2 of the historical average mortgage rate of almost 7.5%.

Here is a peak at where some of the top think tanks on interest rates believe rates will go in 2015:

As one can see, now is the time to buy a home in Chesapeake or any where in Hampton Roads!!

Advantageous home prices and low interest rates almost guarantees any renter that they can become an owner and pay less than the rent they were paying.

And all that noise about banks not lending????  All it is noise.  See the rapid improvement in Mortgage Lending below:

So what are you waiting for????

Homes for Sale - 3016 Camelot Blvd, Chesapeake, VA

Amazing new listing in Camelot.  Priced to Sell

Remodeled throughout with stunning Laminate and Tile Floors and New Carpet.

Huge Kitchen and Master Suite with all the upgrades will make everyone happy.

Add New HVAC, Architectural Roof, Windows and there is nothing to do

Amazing: Interest Rates Since 2009

You may have missed this chart in yesterday's blog.  I just had to pull it out. 

Do you see how the interest rates have fallen steadily, with a few modest interruptions from 5.25% range in 2009 to 3.35% as of 
December 2012.

Though we have seen a modest increase in interest rates, doesn't this make you wonder why you or anyone needing, thinking about, hoping for a new place wouldn't have been out in the past 18 months grabbing rates under 4%????  

Those 5% rates are in anyway bad but 4% and under for this long??

It is truly time to act or to miss out!!!

Interest Rates Pressure Will Cost YOU!

 In the news and in prior posts, you have had to got the sense that interest rates were trending up and down in a fairly narrow 3% to 3.5% range.

Yet, rates have risen to over 3.75% in the past week.  The impact of higher rates can scare a buyer.   Yet, it is more a matter of losing out of historical great rates rather than making it bad to buy a home.  

The chart below expresses the monthly payment change(P& I only) as rates increase.   Please study!

I am sure you will move quickly!

Move today

The Great Reports Keep Coming In

Once again, we have a very up beat report on the Real Estate Market.  All factors are pointing up:  Builder Sentiment, Barclay's 8% improvement in Home Sales in 2013, Mortgage Rates staying low.

Without doubt, the noted pressure on interest rates could dampen 8% growth.  Yet, as noted, the "cheap" house is a thing in the past as values are increasing.

Keeping you updated on the market! For the week of December 24, 2012 MARKET RECAP The numbers were a little sluggish, but the outlook continues to improve. We're talking about the new-home market, where housing starts eased 3% to 861,000 units on an annualized basis in November compared to October. The good news is that permits rose 3.6% to 899,000 units. The up trend in permits bodes well for robust housing activity early in the new year. Not surprisingly, home-builder sentiment has been rising with the new-home market. Home builders are reporting the best industry conditions since early 2007. Improving conditions, in turn, have lifted the NAHB/Wells Fargo Home Builders Sentiment Index to 47 for December – the eighth-consecutive monthly increase. The sentiment index's breakeven point is 50, so once the index hits 51 more builders believe the outlook for the industry is positive instead of negative. The index hasn't been over 50 in nearly eight years, and it has been as low as eight as recently as early 2009. The fact home-builder sentiment remains below 50 is a reminder of how deep and how penetrating the housing bust was, and how long the slog has been to climb our way back to normalcy. The good news for both the housing industry and the overall economy is that there is plenty of upside left in the recovery. The average rate of starts over the past 45 years has been roughly 1.5 million units on an annualized basis. We still have a long way to go before we reach that average rate. But could the mortgage market derail the recovery? We ask because over the past two weeks concerns have risen over rising lending rates. The Mortgage Bankers Association reported purchase applications were down for the week of December 14. The MBA points to rising mortgage rates as the culprit. To be sure, rates were up for most mortgage products. What's more, the yield on the 10-year Treasury note has continued to rise; this, despite the Federal Reserve expanding monetary efforts to lower rates. We mentioned in last week's commentary that the Fed is a key player in maintaining low interest rates, but it's not an omniscient player. The Fed has intervened to an unprecedented extent in the mortgage market, but that doesn't mean market participants won't work to thwart the Fed's efforts. A growing number of participants are worried about price inflation. Economic Indicator Release Date and Time Consensus Estimate Analysis Mortgage Applications Wed., Dec. 26, 7:00 am, ET None Important. Purchase applications slowed on rising rates, but the long-term trend remains positive. New Home Sales (November) Thurs., Dec. 27, 10:00 am, ET 384,000 (Annualized) Important. Sales are expected to resume an upward trajectory after regressing in October. Consumer Confidence Index (December) Thurs., Dec. 27, 10:00 am, ET 69 Index Important. Confidence is steady and firm, with improving home-buying plans an important positive. Pending Home Sales Index (November) Fri., Dec. 28, 10:00 am, ET 102 Index Important. Recent index gains are raising expectations for positive economic contributions from the housing sector. A Very Merry Outlook   A housing-analysis report issued by the financial services firm Barclays received considerable media attention this past week; principally because the report offered a very favorable outlook on housing. Barclays sees home sales increasing 8% in 2013. It also sees housing starts for the first quarter of 2013 expanding to 944,000 units on an annualized basis before expanding to 973,000 units in the second quarter. Barclays also expects home prices to rise and mortgage rates to remain low through 2013. We generally agree with Barclays' assessment (though mortgage rates holding today's levels is the weak link). We have a bullish outlook on housing for 2013, much like we had for 2012. There is a downside to this bullish outlook, though. As prices rise and more distressed inventory is removed from the market, the home affordability index will fall. In fact, recent NAR data show the index is already moving lower, as the CNBC/NAR graph below reveals. For the past six months, we've been warning that the most affordable, best-value deals are quickly evaporating. We see that trend continuing through 2013. What's more, we see the market tilting in favor of sellers. Therefore, we offer this caveat: for buyers who continue to wait, the cost of waiting will very likely rise.

FED does it again

A very interesting "Mortgage Matters.." this week from Jim Belote.
The FED is pumping in even more money(millions) into purchasing treasury notes and mortgage backed securities with newly printed money.  Yes, newly printed money...making your dollars worth less..possibly, as noted below, pushing inflation higher.  I have to be honest the noted 2% inflation planned for next year pushed 2.5% due to FED action is nothing to lose sleep over.  BUT the long term affect of 'loose money' policy can be steep devaluation of dollar(translated:  INFLATION).

You will note below that the FED's effort was to reduce mortgage rates to continue the housing recovering.  Yet bonds yeilds went up rather than down thus not helping lower mortgage rates.  Though not tied directly tied to these bonds, mortgage rates do track along bond yields due to investor interest in both.

Still the best time to buy a home with home prices trending up and rates still low....don't miss out.  2013 could be a barnburner!

Keeping you updated on the market! For the week of  December 17, 2012 MARKET RECAP Housing has been subdued the past couple weeks and will likely remain subdued through the remainder of the year. The good news is what's been reported on housing has been mostly positive. The trend continues this week. The Mortgage Bankers Association reports that purchase applications continue to trend higher, rising 1.0% in the December 7 week. This marks the fifth-consecutive volume increase and is a positive indicator for home sales as we head into the new year. News on the mortgage market has picked up where housing has left off. Federal Reserve Chairman Ben Bernanke announced on Wednesday that the Fed will not only continue purchasing $40 billion in mortgage-backed securities (MBSs) each month, it will also purchase an additional $45 billion in long-term U.S. Treasury securities. Both securities will be pay for with newly minted money. The Fed's goal is to lower already low mortgage lending rates. The theory is that even lower lending rates will accelerate the housing recovery, thus accelerating the economic recovery. An accelerating economic recovery, in turn, will spur additional job growth. For this reason, the Fed said it will continue to keep interest rates low until the unemployment rate drops to 6.5%. (The unemployment rate is currently 7.7%.) The Fed's strategy, which creates higher demand for MBSs and U.S. Treasury securities, helps hold mortgage lending rates low. The relationship is inverse: when demand rises for these securities, their price rises and their yield falls. The graph below illustrates the relationship between a $1,000 10-year note with an initial coupon payment of 6%, which means the note pays $60 in interest annually. When the market rate falls after the note is issued, the note's price rises. A higher price produces a yield that calibrates the lower market rate of interest with the coupon rate. Mortgage lending rates are tethered to yields on MBSs, which are tethered to U.S. Treasury security yields. In short, by purchasing both Treasury securities and MBSs, the Fed helps keep mortgage lending rates low. That said, a strange thing happened after the Fed announced it wanted to lower mortgage lending rates even further: The yield on the 10-year Treasury note actually increased (and has been increasing since last week). The 10-year note is a benchmark for the 30-year fixed-rate mortgage. So what's going on? The Fed isn't the only player in the mortgage market; the Fed isn't omnipotent. Outside market forces are also an important variable. The risk of price inflation rises with the Fed pumping more money into the financial system. In fact, the Fed itself raised its annual price-inflation target to 2.5% from 2.0%. If price inflation rises, mortgage lending rates will be pressured to follow. The point we want to emphasis is not to take for granted that mortgage lending rates will fall meaningfully lower. The Fed is implementing a strategy, not offering a guarantee.   Economic  Indicator Release  Date and Time Consensus  Estimate Analysis Home Builders' Index (December) Tues., Dec. 18, 10:00 am, ET 45 Index Important. Housing will become a more important variable in economic growth for 2013. Mortgage Applications Wed., Dec. 19, 7:00 am, ET None Important. Purchase applications continue to gain momentum and point to strong sales entering 2013. Housing Starts (November) Wed., Dec. 19, 8:30 am, ET 900,000 (Annualized) Important. Housing is gaining momentum, which is good news for job creation. Gross Domestic Product (3rd Quarter 2012) Thurs., Dec. 20, 8:30 am, ET 2.8% (Annualized Growth) Important. Growth is expected to be revised higher, but recent indicators point to lower 4 th quarter growth. Existing Home Sales (November) Thurs., Dec. 20, 10:00 am, ET 4.9 Million (Annualized) Important.Sales are trending higher despite supply issues in many local markets.   The Risk of Unintended Consequences We are obviously the beneficiaries of the Federal Reserve's push for lower mortgage lending rates, but its unprecedented foray into mortgage lending isn't without risk. The Fed's debt purchases have ballooned its balance sheet to $2.87 trillion in debt assets from $869 billion a few years ago. Because of the Fed's commitment to purchase $85 billion in additional debt each month, its balance sheet will expand to $4 trillion by the end of 2013. The Fed's expanded balance sheet is cause for concern. The larger the balance sheet, the riskier the Fed's exit strategy becomes. The prospect of rising interest rates means the Fed risks significant losses (because of the inverse relationship we discuss above). What's more, should the Fed attempt to wind down its portfolio of debt too rapidly, it will roil the Treasury and mortgage-debt markets, thus sending mortgage lending rates higher. We want to reiterate what we've been reiterating for the past few months: Housing prices are on the rise, while mortgage lending rates remain near historical lows. Housing prices will continue to rise, but there is no guarantee mortgage rates will continue to fall. In short, the benefits of waiting to borrow and buy simply aren't commensurate with the risk of waiting.

Another Voice-CNN Update on Housing

Home prices: Biggest rise in more than 2 years

By Chris Isidore @CNNMoney November 27, 2012: 10:07 AM ET

Home prices are up for the 2nd straight quarter, the biggest year-over-year increase in more than two years.

NEW YORK (CNNMoney) -- In another sign of a housing market rebound, home prices posted the biggest percentage gain in more than two years in the third quarter, according to the closely followed S&P/Case-Shiller index.

The 3.6% increase from a year earlier is more than three times the rise in the previous quarter and was the biggest jump in prices since the second quarter of 2010. But that 2010 rise was much more of a temporary blip caused by a homebuyer's tax credit of up to $8,000 on homes purchased in late 2009 and early 2010.

This latest rise comes as the housing market has shown numerous other signs of recovery in recent months. The rebound is spurred by a combination of record low mortgage rates, an improving jobs market and a drop in foreclosures to a five-year low, reducing the supply of distressed homes available. There is also a tighter supply of both new and previously owned homes on the market.

The improvement in housing market fundamentals have helped to lift the pace of both home sales and home building.

Dean Baker, the co-director of the Center for Economic and Policy Research who was one of the earliest economists to warn about the housing bubble and the trouble that lay ahead, said this recovery in the housing market should lead to some sustained housing price increases in the coming years.

"I've been an optimist as of late," he said. "Some think it'll get back to bubble prices and that's crazy. But we'll probably do better than inflation for the next few years, and people who have been underwater on their mortgage will get out from that, and build some equity."

The latest rise in the Case-Shiller index was the second straight quarter of year-over-year improvement, while the monthly annual reading has climbed for four months in a row, with six straight month-over-month increases.

"With six months of consistently rising home prices, it is safe to say that we are now in the midst of a recovery in the housing market," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.

The increases are widespread, with only two of the 20 cities tracked by index -- Chicago and New York -- showing modest price declines from a year earlier. The biggest rise was in Phoenix, one of the cities hardest hit when the housing bubble burst. Prices there in September were 20.4% higher than a year ago.

"Home price gains are becoming more widespread across cities, and some of the largest rebounds have been in areas that were most heavily affected during the initial housing slump," said Cooper Howes, an economist with Barclays Capital. "We expect this trend to persist into next year as part of a broad-based housing recovery that includes starts, sales and prices"

Home prices are now back to where they were in early 2003, before the housing bubble inflated over the next three years before bursting. Even with the recent gain, the national index is down 28.6% from the peak level reached the first quarter of 2006.

 

New Home Sales--Remember Local Market Counts

Well...the news can't always be gangbusters.

But don't be too disappointed about New Homes missing the national consensus on housing starts.  No doubt the Housing Market is dictated by the local market.

In Hampton Roads, new home neighborhoods are starting to pop up and are seeing good activity.   In the past week, I had two buyers looking at new homes neighborhoods in Chesapeake and Virginia Beach.  

It was fascinating to see the activity the new home sites were experiencing.  With lots available in present releases still be limited to 10 or fewer, the buyers seemed to want to jump to get preferred lot before that lot was gone.

Kind reminds of The Eagle's song, Hotel California, with that line "We haven't had that spirit here since nineteen sixty nine".  Though it has not been since 1969, this attitude in buyers has been not seen for a few years.

Jim is so right...it is all about the rates right now.  These historic rates won't be here forever.  So sitting on the sidelines is not the way to play the game right now. 

Keeping you updated on the market! For the week of December 3, 2012 MARKET RECAP The news was disappointing, but not terribly so. We are referring to the dip in new-homes sales for October. The Commerce Department reports sales came in at an annual rate of 368,000 units last month, which was 17,000 shy of the consensus estimate for 385,000 units. Pricing was also a minor disappointment. The median price for a new home dipped 4.2% to $237,000. This marked the second-consecutive month of price weakness. Disappointing, yes, but hardly a cause for concern. Year over year, new-home prices are up 5.7%. Given the scant supply of homes, we don't see a backsliding trend developing. The number of new homes for sale is still only 147,000, representing a 4.8-month supply at the current sales pace. The longer-term perspective is another reason to remain optimistic. New-home sales have averaged 361,000 per month on an annual-rate basis through October. In other words, sales are on pace to increase 18% this year. What's more, we have plenty of room left to run. Even with the double-digit sales increase, 2012 will be the third-lowest sales year since the Census Bureau began tracking new home sales in 1963. It's also worth remembering that this year's average sales rate is still below the 375,000 average rate of sales in 2009. Most estimates we've seen (which are likely conservative) expect new-home sales to double within the next couple years. This would put the annual sales pace closer to historical norms, which is around 1 million sales on an annualized rate. Though new-homes sales disappointed in October, the trend in overall pricing – new and existing homes – remains strong. Most private data providers show prices increasing in more markets. This past week, Case-Shiller's home price index showed prices rose 0.4% in the 20 cities it follows. This was the sixth-constrictive month of price gains, with gains sweeping across all 20 cities. The trend in purchase applications is also encouraging. Rising applications point to rising home sales. Rates continue to make new historical lows (albeit by a couple basis points) each week. Low rates contribute to a high-affordability index. Low mortgage lending rates are an important variable in the home-purchase equation, but they are not the overriding variable. The above chart shows brisk sales even with lending rates 300 basis points higher than they are today. In other words, low lending rates have done about all they can do to stimulate sales. At this point, the key variables for a sustained housing recovery are economic growth and more credit-worthy borrowers having access to credit. Economic Indicator Release Date and Time Consensus Estimate Analysis Construction Spending (October) Mon., Dec. 3, 10:00 am, ET 0.4% (Increase) Important. Rising residential real estate construction is spurring overall economic growth. Mortgage Applications Wed., Dec. 5, 7:00 am, ET None Important. Purchase applications continue to point to stronger home sales. Unemployment Situation (November) Fri., Dec. 7, 8:30 am, ET Unemployment Rate: 8.0% Payrolls: 25,000 (Increase) Very Important.Financial markets are looking for a sustained trend in job creation growth. Consumer Credit (October) Fri., Dec. 7, 3:00 pm, ET $12 Billion (Increase) Moderately Important. Expanding credit use reflects higher consumer confidence. An Ode to Diversity When people contemplate what went wrong in the housing bubble, they frequently point to lending: subprime loans, interest-only loans, negative amortization loans, and securitization were the helium that inflated the bubble. That's not really true, nor fair. These products have been around for years and had served the borrowing public well. The problem was really the misguided belief that an asset – housing in this case – can only rise. The chief problem today, and a primary impediment to the housing recovery, is excessive regulation, which is limiting choice. A recent report from FBR Capital Markets points to a regulatory environment that is “plain vanilla” in that it favors the 30-year fixed-rate loan above all others. Now, there is nothing wrong with the standard fixed-rate mortgage products, but other mortgage products have their place. Indeed, you could argue that taking an interest-only loan to purchase a Phoenix-based home late in 2011 was a savvy business move; the buyer would have tied up little of his own capital to purchase a bargain-basement asset that has since appreciated strongly. Many regulators and even more mortgage-industry participants have called for the need for more private mortgage investors to enter the market. For that to occur, though, these investors need the freedom to offer products that will satisfy a wider swath of borrowers needs, while also enabling them to earn a profit. We think 2013 will become the year of diversity: that is, a more diverse, heterogeneous mortgage lending market with more private investors. We say that because economic growth impacts regulation, and we see economic growth in 2013. Generally, the higher the growth, the more accommodating the regulators. We look forward to a strong 2013, and a stronger, more flexible mortgage lending market. If

I couldn't agree any more with Jim's summary of the Real Estate Market.  IF boiled down, there are four main points:

1. Home prices are increase

2. New Home and Resale inventory shortage will be with

       us for awhile(local markets will vary on degree of  

       shortage!)

3. Interest Rates are pressured to rise...but from 3.25%, 

       what could we expect.

4. Continue actions in the financial market seems to favor

       keeping only but the best buyers out of the market.

       Yet, efforts are a foot to help qualified buyers to get

        into the market.

If you read the points above or the whole article below and don't get a strong sense that it is time to act, please read it all again more slowly!!!

No time like the present!

Keeping you updated on the market! For the week of  August 20, 2012 MARKET RECAP It looks like a new trend is developing in the second half of 2012: upping the home-price outlook. Last week, we mentioned that Zelman & Associates raised its home-price forecast for 2012. This week, it's Bank of America's turn. At the start of the year, analysts at Bank of America predicted home prices would rise a mere 0.5 percent for 2012. Today, these same analysts believe national home prices will post a 2-percent gain, followed by another 2-percent gain in 2013, which is up from their original estimate for a 0.3-percent gain. We weren't surprise to see Bank of America raise its price expectations. We also weren't surprised by its rationale. Bank of America cited many of the same variables we've cited over the past year: a shift toward shorts sales among creditors, a decreased flow of foreclosures, a reduction in supply. Increased demand also helps, which when coupled with decreased supply leads to the inevitable – higher prices. Home builders have also held supply in check. Starts, especially on single-family units, remain at lows that are below those seen during the 1981-1982 recession. Home builders still have a long way to go before they hit the long-term annual average, but they've been ramping up production over the past year. Housing starts came in at 746,000 annualized units in July, which is down 1.1 percent from June. It's important, though, to keep an eye on the big picture. In that context, starts are up 21.5 percent year-over-year. It appears starts will continue to gain momentum, considering permits rose 6.8 percent to 812,000 annualized units in July. Increased new-home inventory won't materially change today's low inventory levels. In other words, home prices – new and existing – should continue to gain traction across the country. (Of course, all markets are local and the degree of traction will vary among markets.) As for the overhang of shadow inventory, the longer it remains in the shadows, the less likely it will be inventory. Houses, we often forget, are depreciating assets if they are insufficiently maintained. Houses can, and do, go away. We actually lose over 300,000 housing units annually through neglect, fire, or natural disasters. In short, we still see persistent price gains for much of the country. Speaking of prices, the price of most mortgages rose this past week. This actually marks the third-consecutive week where mortgage lending rates rose. Granted, we are talking about a couple basis points in some instances, but it's still a trend. An improving economic outlook (which raises loan demand) was the most repeated explanation for rising lending rates. Retail sales are trending higher, and increased sales reflect rising consumer confidence. Increased home-building activity is also bolstering the outlook for the economy. So where are rates going? The 10-year U.S. Treasury note is a useful proxy for gauging mortgage lending rates, and it's been trending higher over the past month. So we don't expect a pull-back in rates this week. In fact, we wouldn't be surprised to see a fourth-consecutive week of rate increases. Economic Indicator Release Date and Time Consensus Estimate Analysis Mortgage Applications Wed., Aug. 22, 7:00 am, et None Important. Recent purchase activity points to a reduction in sales growth heading into fall. Existing Home Sales (July) Wed., Aug. 22, 10:00 am, et 4.5 Million (Annualized) Important. Sales have flattened in recent months over economic-growth concerns. New Home Sales (July) Thurs., Aug 23, 10:00 am, et 370,000 (Annualized) Important. Rising new home sales and construction spending should help lift the economic outlook. FHFA Home Price Index (June) Thurs., Aug 23, 10:00 am, et 0.5% (Increase) Moderately Important. The index will further confirm the upward trend in home prices. The Last Hold Out One of our frequent laments over the past year has been the lack of diversity in the mortgage lending market. Fannie Mae, Freddie Mac, and the FHA back more than 90 percent of all new loans today, up from a third five years ago. Unfortunately, the level of diversity might not be rising soon. Housingwire.com reports that regulators are pushing for lenders who offer high-risk mortgages to hire certified, licensed appraisers to conduct interior property inspections. (A high-risk mortgage is defined as one secured by a home with an interest rate above a certain threshold.) What's more, if a seller acquires this high-risk property for a lower price within six-months, an additional appraisal must be supplied at no cost to the consumer. Basically, the regulators' proposal would raise the cost of higher-risk loans, which means there will be fewer of these loans. In turn, higher costs could make lenders even more risk averse, which would further shrink the pool of potential home buyers. At this point, we think it makes financial and economic sense for lenders to venture further out on the risk scale. We understand the concerns, given the number of loans that went sour a few years ago. But today, there are simply too many potential borrowers relegated to the sidelines because of excessive risk aversion and its accompanying regulatory costs. Prudent and thoughtful lending doesn't mean eschewing risky lending, it means approaching risky lending with intelligent underwriting procedures. I

An Improving Real Estate Market...Missing out???

The Market is improving!!!

              The Market is Improving!!!!

                           THE MARKET IS IMPROVING!!

The news continues to be very positive for the housing industry.  Though, not yet robust and completely healthy,

the Real Estate Market is on the uptick.

Lack of inventory in many markets is pressuring prices.  Jim notes below that it is due to investors snatching properties off to convert to rentals thus keeping homes off the market. It may also be due to sellers not yet knowing now is the time 

to act while the competition is low.  In Hampton Roads, we are roughly 30% lower in inventory than we were in 2011.

With buyer activity beginning to tick up(low low interest rates and pent up demand), we could see complaints about no inventory to meet demand.  As each Real Estate market is really a local market, this will vary throughout the country.

I know I have seen my homes selling in less than 30 days in the past three months or so.   Even homes in the higher price ranges are seeing improved activity...could see a couple of contract this week on these homes!!

Read below and consider...is it time for you to dive in???

It is an awesome time to buy or sell!!!

Keeping you updated on the market! For the week of  August 13, 2012 MARKET RECAP The foreclosure data continue to trend positively. RealtyTrac reports foreclosure filings declined 3 percent month-over-month in July and are down 10% year-over—year. We are not surprised by the downward trend in foreclosures; it's simply more remunerative for banks to seek other alternatives than taking back a house. RealtyTrac reports that short sales, on average, sell for $25,000 more than an REO property. Banks are no doubt being helped by the persistent uptrend in prices. On that front, CoreLogic reports national prices rose 2.5 percent year-over-year in June, and 6 percent in the second quarter of 2012 compared to the first quarter. Supply is a main price driver: there simply isn't enough supply to meet growing demand, particularly in the starter and low-price segments. Investor demand is impacting supply. Given the strong rental demand in many markets, investors are buying homes and turning them into rentals instead of flipping them; thus keeping the properties off the market. As for new-home supply, builders only recently began to ramp up construction. New-home inventory is at levels unseen in decades. (Keep in mind; decades ago there were also fewer people.) More demand and less supply can only lead to one outcome – higher prices. At the beginning of the year, few pundits were expecting prices to rise in 2012. Today, many have changed their tune. Zelman & Associates, a real estate research firm, for one, recently revised its forecast, predicting prices will rise 5 percent nationally in 2012. At the beginning of the year, Zelman's forecast a 1-percent decline. Negative equity remains a problem in many markets, and that's also helping to keep supply low. But as prices move higher, more of these properties will turn positive. An even stronger price trend will, in turn, draw more buyers and more sellers into the market. That means more overall transaction activity, which means rising mortgage purchase demand. As for rates on current mortgage demand, they moved up this past week. Most products saw a three or four basis-point increase. Given the trend in 10-year Treasury yields, we don't expect to see a pullback. Over the past two weeks, the yield on the 10-year Treasury note has increased nearly 30 basis points. This suggests that investors are becoming less risk averse, pulling money out of Treasuries and putting that money into riskier investments: Over the same two-week period, the S&P 500 stock index is up over 6 percent. Yes, the Federal Reserve has stated that it's determined to hold long-term lending rates low for the next two years, but don't assume the Fed can automatically achieve its goal. Markets are dynamic forces, and if more investors sell bonds in favor of other investments, yields on Treasury securities will continue to rise. That means mortgage lending rates will rise too. Economic Indicator Release Date and Time Consensus Estimate Analysis Producer Price Index (July) Tues., Aug. 14, 8:30 am, et All Goods: 0.2% (Increase) Core: 0.2% (Increase) Moderately Important. Lower energy prices are keeping producer price inflation in check. Mortgage Applications Wed., Aug. 15, 7:00 am, et None Important. Purchase activity remains flat, which points to flat home sales for the month. Home Builder Index (August) Wed., Aug. 15, 8:30 am, et 36 Index Important. Sentiment is approaching a five-year high, which bodes well for the sector's outlook. Housing Starts (July) Thurs., Aug 16, 8:30 am, et 765,000 (Annualized) Important. Rising residential construction is helping to stimulate economic growth. Don't Expect Perfection The problem with vetting national numbers is that local markets rarely reflect the national numbers. This causes problems, mostly due to false or unrealistic expectations if the local numbers don't gel with the national numbers. The fact is there is never a perfect time to buy or sell a home. Only in hindsight do we realize that our timing was good, or maybe not so good. That said, it's important not to be paralyzed by the fear of not selling at the top or buying at the bottom or financing at rock-bottom rates. There are still pundits (most notably Fiserv) who think falling home prices are in our future. Unfortunately, that expectation gets reported at the national level and is interpreted to mean prices in most markets will fall. This isn't the case, but it tends to attenuate activity through fear. We are keen to emphasize that markets are local. But even in local markets that are rising, there will always be concerns about prices backsliding or the economy tanking. The key is to always factor in where we are in a historical context. Looking at the big picture removes some of the worry and places a long-term investment like residential real estate in the proper perspective. It also increases the likelihood of making a profitable purchase or sale.