Market Update-Financial (Interest Rates and Employment)

From the Desk of Bob Klorer:

 

The surprising employment report sent the equity markets into an immediate rally mode yesterday morning with mortgage rates increasing with the data.
 
By days end…the equity markets gave up most of its gains and the bond market stabilized around a very key support level of 3.50% for the 10 year note.
 
Was yesterday’s jobs report an anomaly or a sign of things to come?   If we start getting further indicators that the employment picture is improving we could see the FED start to take action much more quickly in terms of needing to raise rates even though inflation still seems not to be an issue!
 
Even with the volatile trading activity for the week 30 year fixed rates continue to average between 4.875 and 5.00% with no points.
 
Have a great weekend!
 
We will break down the employment report this coming week.

Published in: on December 6, 2009 at 09:09  Leave a Comment  
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Market Update-Greater Cincinnati MLS

New Listings 144  
Back on Market 34  
Price Increases 4  
Price Reductions 111  
Pendings 77  
Solds 56  
Expireds 44  
Inactives 43  

The weekly numbers bounced around slightly this week, not only from volume but from avg.

New listings: 144

Avg LP: $164,587

Pendings: 77

Avg LP: $143,782-

Solds: 56

Avg SP:$168,206-

Our Hot Spots for action today was- Mason with 5 and West Chester with 3

Also with news from the lending world today courtesy of Nick Perino Attorney at Law

Despite what you may have heard, on January 1st everyone must use the new Good Faith Estimate mortgage disclosures and the new HUD-1 settlement statements.  This has not been delayed.

This will affect home buyers, lenders, Realtors and title agencies. Basically anyone involved in real estate is affected. The new disclosures will not allow lenders or brokers to “low ball” the estimated fees and then inflate charges at the closing. There will be zero tolerance for increasing some of the lender’s fees.

Title companies will not be allowed to show an increase greater than 10% above the estimate.

HUD spokesman Brian Sullivan told Realty Times that all consumers making loan applications on or after January 1 must receive the new forms at application and at closing. They are allowed to be a little lenient on violations for the first four months due to the fact that some items are clear-as-mud.

Overall, I find the new HUDs to be a little easier to follow, so hopefully closings will go smoothly and quickly.
 

This is very good research to know. We will report feedback as the market place starts to practice with these new guidelines.

Published in: on December 5, 2009 at 16:00  Leave a Comment  
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Market Update-Greater Cincinnati MLS & short sale changes

New Listings 151  
Back on Market 18  
Price Increases 5  
Price Reductions 101  
Pendings 72  
Solds 52  
Expireds 60  
Inactives 30  

We had our first HFN meeting today and in that meeting this blog was discussed. It was asked that the stats for solds be added to the evalution of the daily blog. So lets add that stat

Solds: 52

Avg SP: $165,615

New Listings: 151

Avg LP: $143,478

Pendings: 72

Avg LP:  $119,547

The AVG LP on the pendings today is low compared to weeks past, this could be an example of the type of property and type of buyer showing activity in the market place here in early December.

Today’s Hot Spots for pending activity- West Chester and Hillsboro with 4 each, Colerain Township 3. I can also verify that 14 of the 72 pendings today are distressed bank owned properties.

Also with positive news, there are changing requirement for short sale procedures that can help sellers and buyers close on short sale contracts with less hassle and quicker response times. Read that article here Short Sale changes

Published in: on December 4, 2009 at 16:14  Leave a Comment  
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Market Update-Greater Cincinnati MLS

New Listings 131  
Back on Market 52  
Price Increases 20  
Price Reductions 150  
Pendings 70  
Solds 142  
Expireds 395  
Inactives 50  

First the stats

131 New Listings:

Avg LP: $172,200

70 Pendings:

Avg LP: $142,912

And because was had a HIGH WATER mark on expireds today, 395, lets examine the numbers there.

Avg LP: $248,882- DOM 179

Thats a much higher LP number for expired then I expected however it does explain why they expired. Those are 6 month listings contracts for the 248k home and they could not be moved. Six months ago, June, we had a spike in listing activity with sellers hoping for a ripple effect from the 1st time home buyer summer traffic. Summer traffic can be slower than most sellers expect. Fall months 09 showed a steady climb from last years sales volume during the same timetable. However today 395 homes had listing contracts expire.

Those clients need our help at HFN. The next 60 days are critical for our Real Estate business. We have been tuning up our LGA’s this week and continuing that focus from now until summer ’10.

 -HFN

Published in: on December 2, 2009 at 16:47  Leave a Comment  
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Marker Update-Greater Cincinnati MLS (Weekend Review)

New Listings 139  
Back on Market 26  
Price Increases 5  
Price Reductions 143  
Pendings 81  
Solds 132  
Expireds 40  
Inactives 106  

As many thought that Nov 30 was the tax credit deadline, we experienced 132 closings most of which may have been Friday, and some today, including one for myself. 81 pendings over the weekend also is a support of what may be expected moving into December. We will continue to monitor that action.

139 New Listings lets review the stats on those:

Avg list price $176,645

Median list price- $141,200

These numbers are important to buyers and sellers moving into this coming winter market place.

Hot Spots for pendings today are Batavia Township and Hyde Park with 5 ea.  I think it may be important to survey the numbers for pending prices too, therefore they look like this:

Avg Pending List Price- $154,877

Median Pending List Price- $114,950

As we continue to evaluate the avg price for both new listings and pending activity we can start to see what is moving is about $21,000 less than what is being re-listed. Numbers for sellers that are very important to recognize.

Published in: on December 1, 2009 at 15:44  Leave a Comment  
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Market Upate- Tax Credit FAQ’s

The complexity of new home buyer tax credits leaves potential buyers with many questions. Here are answers to some of the most confusing:

  1. How does a current home owner qualify for the $6,500 credit?
    Buyers must have lived in their homes for at least five out of the last eight years. The home they buy must become their primary     residence, but buyers don’t have to sell their previous home. They can use the previous home as a rental or a second home and still claim the credit.
  2. Does the new home have to be more expensive than the one the buyer currently owns?
    No. It is fine to use it to downsize. If the property sells for more than $800,000, the buyers don’t qualify.
  3. Can buyers who are building a new home claim the credit?
    Yes, although the contract must be in place by April 30 and the buyer must move in by Jul    y 1.
  4. Can buyers claim the credit if they purchase a home from a relative?
    No. The legislation prohibits taxpayers from claiming the credit if the sale is between “related parties,” including parent,     grandparent, child, or grandchild

Source: USA Today

Published in: on December 1, 2009 at 15:28  Leave a Comment  
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