Where is the affordable housing in the United States?
The recently released National Association of Home Builders/Wells Fargo Housing Opportunity Index says that Indianapolis, Indiana has earned "...the title of most affordable major U.S. housing market in the third quarter of 2006...just under 86 percent of homes sold in the third quarter were affordable to families earning the median household income of $65,100.
The median sales price of all homes sold in the metro area during that time was $122,000 – up slightly from $120,000 in the previous quarter." And, the lease affordable?
Welcome to California! The report says that "...Los Angeles-Long Beach-Glendale, Calif. ... was the nation’s least affordable major housing market for an eighth consecutive quarter. There, only 1.8 percent of new and existing homes sold during the third quarter were affordable to those earning the area’s median family income of $56,200. The median sales price of all homes sold in the area during the period was $523,000."
Thursday, November 30, 2006
Housing's Current Star: The Rental Market
Sales of condos might be off, but the market for rental apartments “remains solidly in the expansion phase of the real estate cycle,” according to a survey of apartment market conditions published by the National Multi Housing Council, an association representing the interest of large apartment firms in the United States.
The quarterly survey showed improving supply-to-demand ratios, with 55 percent of senior executives of apartment-related firms reporting tighter conditions. Rising, too, in most markets, according to the survey, are occupancy rates and rents.The most recent Multifamily Stock Index released by National Association of Home Builders also set an all time high. The MFSI, which tracks the stocks of 24 publicly traded firms including 20 Real Estate Investment Trusts principally involved in owning, developing, and managing multifamily housing, showed a year-over-year gain of 30 percent.
Looking ahead, the demand for apartments should remain strong as long as employment keeps rising, says Mark Obrinsky, NMHC’s chief economist. Additionally, he says, “Although the slowdown in the condo market has had some impact on the investment demand for apartment properties, in every other respect the apartment industry seems to be firing on all cylinders.”
Motivations to RentCost, maintenance-free living, and flexibility were cited by current renters as the most common reasons for renting rather than owning, according to a recent survey conducted by Apartments.com. More than 23 percent of current renters surveyed said they chose to rent for financial decisions. Nineteen percent indicated that relocation flexibility and the lack of a long-term commitment was the primary reason.For those who choose to rent, apartment selection hinges on specific available amenities and community features according to the Apartments.com survey.
Most desirable are:
In-unit washers and dryers
Air conditioning
Acceptance of pets
Ample parking
The quarterly survey showed improving supply-to-demand ratios, with 55 percent of senior executives of apartment-related firms reporting tighter conditions. Rising, too, in most markets, according to the survey, are occupancy rates and rents.The most recent Multifamily Stock Index released by National Association of Home Builders also set an all time high. The MFSI, which tracks the stocks of 24 publicly traded firms including 20 Real Estate Investment Trusts principally involved in owning, developing, and managing multifamily housing, showed a year-over-year gain of 30 percent.
Looking ahead, the demand for apartments should remain strong as long as employment keeps rising, says Mark Obrinsky, NMHC’s chief economist. Additionally, he says, “Although the slowdown in the condo market has had some impact on the investment demand for apartment properties, in every other respect the apartment industry seems to be firing on all cylinders.”
Motivations to RentCost, maintenance-free living, and flexibility were cited by current renters as the most common reasons for renting rather than owning, according to a recent survey conducted by Apartments.com. More than 23 percent of current renters surveyed said they chose to rent for financial decisions. Nineteen percent indicated that relocation flexibility and the lack of a long-term commitment was the primary reason.For those who choose to rent, apartment selection hinges on specific available amenities and community features according to the Apartments.com survey.
Most desirable are:
In-unit washers and dryers
Air conditioning
Acceptance of pets
Ample parking
Monday, November 20, 2006
Friday, November 17, 2006
Free annual credit report
Just a reminder that you are entitled to receive a free annual credit report. And, there's only one site that you should be using: www.annualcreditreport.com
You can get a FREE Credit Report! That's right. Under the federal Fair Credit Report Act (FCRA), each of us can request one free copy of our credit report every 12 months. The program started in the western states in December 1, 2004, and is being phased in over nine months throughout the United States to all Americans.
I think you should get a copy of your credit report and review it for accuracy. Inaccurate information could effect you in may ways, including your ability to obtain a loan for your home purchase, and will help you guard against identity theft.
To order you free credit report, the three nationwide consumer reporting companies (Equifax, Experian and TransUnion) have set up one website, tollfree telephone number and mailing address for you to use. The toll free number is 1-877-322-8228 and the website is www.annualcreditreport.com. You can also complete the Annual Credit Report Request Form (available at www.ftc.gov/credit) and send it to: Annual Credit Report Request Service, P.O. Box 105281, Altanta, Georgia 30348-5281.
Be Careful! Do Not Be Tricked Into Using Other Companies Or Services!
You can get a FREE Credit Report! That's right. Under the federal Fair Credit Report Act (FCRA), each of us can request one free copy of our credit report every 12 months. The program started in the western states in December 1, 2004, and is being phased in over nine months throughout the United States to all Americans.
I think you should get a copy of your credit report and review it for accuracy. Inaccurate information could effect you in may ways, including your ability to obtain a loan for your home purchase, and will help you guard against identity theft.
To order you free credit report, the three nationwide consumer reporting companies (Equifax, Experian and TransUnion) have set up one website, tollfree telephone number and mailing address for you to use. The toll free number is 1-877-322-8228 and the website is www.annualcreditreport.com. You can also complete the Annual Credit Report Request Form (available at www.ftc.gov/credit) and send it to: Annual Credit Report Request Service, P.O. Box 105281, Altanta, Georgia 30348-5281.
Be Careful! Do Not Be Tricked Into Using Other Companies Or Services!
Thursday, November 16, 2006
Why list in the winter?
- "In good winter weather people are still shopping for homes and those looking are more serious buyers."
- "Fewer homes are listed in the wintertime so there is less competition for your home."
"Many corporate transfers happen at the beginning of the calendar year and your home can be marketed to this niche." - "While your home is decorated for the holidays its festive look may entice someone to make an offer."
- "You will be ahead of the spring influx of listings."
Before you offer your home for sale, ask David For A FREE Copy of
"11 Deadly Mistakes Sellers Make When Selling Their Home"
This list was complied by industry insiders and it might surprise you - even shock you. But it is information you Must have before you offer your home for sale. We will be happy to mail or fax it to you at no charge or obligation.
Call David Rigney at 1-800-731-1162 ext 4409 or e-mail at david.rigney@remax.net
Housing Market Expected to 'Coast' into 2007 with Modest Price Gains
Following a correction in home sales and prices in 2006, existing-home sales are expected to "coast" at roughly the same level next year, although there will be some additional decline in the new-home market, according to a forecast released Saturday at the National Association of Realtors(R) Conference & Expo in New Orleans.
Overall home price gains will be modest, said David Lereah, NAR's chief economist, and sellers are adjusting to the market transition. "Home sellers are becoming realistic about current market conditions and are now offering more competitive pricing, in addition to some incentives or concessions -- especially to help first-time buyers," he said.
"Given the huge gains in home values during the housing boom, and this year's rise in housing inventory, overall price gains this year and next will be modest," Lereah said. Even with temporary declines in some months, the national median existing- home price should increase 1.9 percent for all of 2006 to $223,700, then another 1.7 percent next year to $227,500. The median new-home price is expected to drop 1.1 percent to $238,400 this year before rising 1.3 percent in 2007 to $241,400.
The unemployment rate for 2006 is likely to average 4.6 percent, edging-up to 4.7 percent next year. Inflation, as measured by the Consumer Price Index, is forecast at 3.4 percent this year and 2.3 percent in 2007, while growth in the U.S. gross domestic product is expected to be 3.3 percent in 2006 and 2.7 percent next year. Inflation-adjusted disposable personal income should grow 3.3 percent this year and 3.5 percent in 2007.
Overall home price gains will be modest, said David Lereah, NAR's chief economist, and sellers are adjusting to the market transition. "Home sellers are becoming realistic about current market conditions and are now offering more competitive pricing, in addition to some incentives or concessions -- especially to help first-time buyers," he said.
"Given the huge gains in home values during the housing boom, and this year's rise in housing inventory, overall price gains this year and next will be modest," Lereah said. Even with temporary declines in some months, the national median existing- home price should increase 1.9 percent for all of 2006 to $223,700, then another 1.7 percent next year to $227,500. The median new-home price is expected to drop 1.1 percent to $238,400 this year before rising 1.3 percent in 2007 to $241,400.
The unemployment rate for 2006 is likely to average 4.6 percent, edging-up to 4.7 percent next year. Inflation, as measured by the Consumer Price Index, is forecast at 3.4 percent this year and 2.3 percent in 2007, while growth in the U.S. gross domestic product is expected to be 3.3 percent in 2006 and 2.7 percent next year. Inflation-adjusted disposable personal income should grow 3.3 percent this year and 3.5 percent in 2007.
Rates Fall and Mortgage Applications Rise
The Mortgage Bankers Association (MBA) has released its Weekly Mortgage Applications Survey for the week ending November 10. The week was a shortened one in observance of Veteran’s Day. The Market Composite Index, a measure of mortgage loan application volume, was 647.5, an increase of 4.3 percent on a seasonally adjusted basis from 620.9 one week earlier. On an unadjusted basis, the Index decreased 7.6 percent compared with the previous week and was down 0.1 percent compared with the same week one year earlier.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.15 percent from 6.24 percent, with points decreasing to 0.98 from 1.08 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The 30-year rate is at its lowest since January 2006.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.85 percent from 5.96 percent, with points increasing to 1.00 from 0.97 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs decreased to 5.87 percent from 5.89, with points decreasing to 0.78 from 0.8 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.15 percent from 6.24 percent, with points decreasing to 0.98 from 1.08 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The 30-year rate is at its lowest since January 2006.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.85 percent from 5.96 percent, with points increasing to 1.00 from 0.97 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs decreased to 5.87 percent from 5.89, with points decreasing to 0.78 from 0.8 (including the origination fee) for 80 percent LTV loans.
Tuesday, November 07, 2006
THE BEST TIME TO BUY IS NOW
MORTGAGE INTEREST RATES ARE CLOSE TO 40-YEAR LOWS.
- The average 30-year fixed rate mortgage
rate remains near 40-year lows. Currently
at 6.4%, this is more than an entire percentage
point below 2000 levels. - Low interest rates allow a substantially
larger population of Americans to own
their own homes. - n For example, with a $250,000 mortgage,
a rise in interest rates from 6.5% to 7.5%
means an additional $2000 in annual
payments. This may boost currently
available homes out of financial reach for
potential buyers. Today’s low rates offer
a unique opportunity for buyers.
INVENTORY IS ONCE AGAIN ON THE DECLINE.
- In recent months, there has been a record inventory of nearly four million homes on the market. However, total housing inventory levels fell 2.4% at the end of September to 3.75 million existing homes available for sale. As inventory continues to decline, the selection of homes will once again become limited. For prospective buyers, there may never be a better time to buy a home than right now.
- Taking advantage of the variety of homes available on the market today allows buyers the unique opportunity to find the home of their dreams.
- Expanded selection combined with low interest rates offer buyers an opportunity that may never be available again in their lifetime.
REAL ESTATE REMAINS THE BEST INVESTMENT AVAILABLE.
- The average home purchased five years ago has appreciated 49%.
Even with the recent 2.2% decline in the median home price, this
still equates to a more than 45% return on investment for the average
homeowner. Media reports of a vast market decline are deceiving,
and consumers will benefit from purchasing a home now before
prices begin to rise once again. - According to Forbes magazine (using U.S. Department of Housing and
Urban Development statistics), U.S. real estate sale prices increased
more than 56% from the beginning of 1999 to the end of 2004.
The S&P 500 index dipped nearly 6% during that same period. - While year-to-year fluctuations are normal, real estate remains one
of the best performing and consistent long-term investments.
Median existing U.S. home sale prices have increased on average
6.5% each year from 1972 through 2005, and 88.5% over the last
10 years combined. For consumers looking for long-term and
stable growth rates, real estate is still their number one choice.
IAR "watch list" for the fall Veto Session
One week after the election, the Illinois General Assembly begins its annual fall session, Nov. 14-16 and 28-30. The legislature will consider gubernatorial vetoes of legislation from the spring session as well as unresolved and new issues such as whether residential electric rates will be allowed to increase, an increase in the state’s minimum wage and a statewide smoking ban.
- Override of HB 5377 Rent Control/Mobile Homes
- Legislation to extend the Cook County Assessment Cap
- Rewrite of the Appraiser License Law
- Homeowners Associations (SB 2772)
- Condominium Advisory Council (HB 5334 and SB 1216)
- Mobile Home Park Water Supply Systems and Hydrants (HB 4342)
SLOWER THAN EXPECTED ECONOMIC GROWTH PUSHES MORTGAGE RATES LOWER, REVERSING TREND OF THE LAST TWO WEEKS
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 6.31 percent with an average 0.4 point for the week ending November 2, 2006, down from last week when it averaged 6.40 percent. Last year at this time, the 30-year FRM averaged 6.31 percent.
The 15-year FRM this week averaged 6.02 percent with an average 0.4 point, down from last week when it averaged 6.10 percent. A year ago, the 15-year FRM averaged 5.85 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.05 percent this week, with an average 0.5 point, down from last week when it averaged 6.14 percent. A year ago, the five-year ARM averaged 5.76 percent.
One-year Treasury-indexed ARMs averaged 5.53 percent this week with an average 0.6 point, down from last week when it averaged 5.60 percent. At this time last year, the one-year ARM averaged 5.09 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Lower than expected third quarter Gross Domestic Product (GDP) figures helped to put a damper on rising rates this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "With mortgage rates down this week, we may see a spurt of refinancing by those who want to get out of ARMs that are scheduled to reset in the next year while interest rates are still comparatively low.
"We are also seeing a higher number of homeowners who are taking cash out of their homes for home improvement or other needs rather than opting for a prime rate home equity loan now that the prime rate is over 8 percent."Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than four million renters in America. -->
Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than four million renters in America.
The 15-year FRM this week averaged 6.02 percent with an average 0.4 point, down from last week when it averaged 6.10 percent. A year ago, the 15-year FRM averaged 5.85 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.05 percent this week, with an average 0.5 point, down from last week when it averaged 6.14 percent. A year ago, the five-year ARM averaged 5.76 percent.
One-year Treasury-indexed ARMs averaged 5.53 percent this week with an average 0.6 point, down from last week when it averaged 5.60 percent. At this time last year, the one-year ARM averaged 5.09 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Lower than expected third quarter Gross Domestic Product (GDP) figures helped to put a damper on rising rates this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "With mortgage rates down this week, we may see a spurt of refinancing by those who want to get out of ARMs that are scheduled to reset in the next year while interest rates are still comparatively low.
"We are also seeing a higher number of homeowners who are taking cash out of their homes for home improvement or other needs rather than opting for a prime rate home equity loan now that the prime rate is over 8 percent."Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than four million renters in America. -->
Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than four million renters in America.