Daily Archives: May 27, 2012
Sales of previously owned homes rise 3.4% in April | Armonk NY Homes
Realtors® Confidence Index: Residential Market Recovery Continues | Pound Ridge NY Realtor
The recent Realtors® Confidence Index survey shows that the residential real estate markets continue to recover. Respondents continued to note problems associated with real estate transactions:
- Obtaining a mortgage continues to be difficult for individuals with lower credit scores or individuals with non-standard credit characteristics, e.g., self-employed.
- Bargain hunters and low-price bids continue.
- The short sale process continues to be slow and frustrating.
- Pricing continues to be a challenge.
- The appraisal process continues to be a problem.
However, fewer respondents noted major problems than had previously been the case. In contrast, a growing number of respondents indicated a growing number of cases of multiple offers, fewer seller concessions, low inventories, and some increase in buyer interest. Many respondents noted that correctly priced properties sell quickly.
The graph for “Total Home Sales” on a twelve month roll (i.e., total sales for the current and previous 11 months reported monthly) shows a market achieving stability from a sales viewpoint, with modest improvement expected based on continued economic and employment expansion. This is consistent with the survey conclusions.
The media has discussed home prices in detail for the last four years. The graph “Prices By Month” indicates that home prices have been headed towards stability. NAR’s forecast is for the attainment of stable prices this year.
The available data indicate continued expansion in residential real estate markets. Like all forecasts, this conclusion is subject to market risks affecting the outlook:
Potentially Negative News
- The Economic Recovery is slow and weaker than normal: Unexpected and unfavorable economic news (i.e., a European bond default, an additional run-up in gas prices) could have a negative impact on the recovery.
- Credit standards imposed by financial institutions in making a mortgage are reported as excessively stringent.
- Job gains are well below normal.
- Consumer Confidence is lower than would otherwise be expected.
Potentially Positive News
- Falling Inventories of homes for sale.
- Stabilization of Distressed Sales in the neighborhood of 30 to 35 percent.
- Home Affordability: Low interest rates and attractive prices continue to facilitate home purchases.
- Demographics: Sales are at a level of approximately 10 years ago, but the population has increased significantly.
The economic recovery is clearly weaker than the historical norm, but appears to be proceeding. Realtor® confidence and price expectations are higher than was the case a few months ago, rising rental rates have favorable implications for home sales, and time on market continues to decrease. Prices and interest rates continue to be lower than has been the case in the past. These are the reasons that we continue to view the outlook as favorable for home purchases.
Given that the typical homeowner will occupy a house for approximately 8 years and that home ownership is basically a lifestyle decision, one can make a very good case that this is a good time to buy a house, remembering that staying within a reasonable budget and acceptable mortgage is important. Additional information on a variety of topics related to current residential market conditions may be found at http://www.realtor.org/reports/realtors-confidence-index.
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Bedford NY Real Estate for Sale | New Home Sales
In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses new home sales.
- Continuing good news regarding the housing market as new home sales rose in 3.3 percent in April from the prior month and up 9.9 percent from one year ago. The improvement is roughly in line with yesterday’s figure on existing homes.
- The latest median price of newly sold homes was $235,700, which is an increase of 4.9 percent from one year ago. New homes nearly always sell at a higher price than existing homes. But the gap has opened wider in recent years as many existing homes, particularly the foreclosed properties, were selling below the replacement cost. That could also imply faster price recovery in the future for existing homes.
- There are two key differences between new and existing home sales. First, new home sales are not closings but are new contract signings. There is no official figure on closed sales of new homes, but one would expect that all the newly built ones will eventually sell at some point despite short-term contract fallouts. Second, new homes comprise a very small market share. Normally, new homes would make up about 15 percent of total home sales. In recent years, new homes have made up only 5 to 8 percent of all home sales.
- New home sales are likely to rise 25 percent this year and another 20 to 30 percent jump next year. Inventory levels are very thin. Housing starts suffered much more than the existing homes market and new home sales are now primed for a stronger recovery. Unfortunately, the larger builders are likely beneficiaries at the expense of small builders because of very restrictive lending for construction loans to smaller-sized homebuilders, while the big builders can tap Wall Street funds. Larger banks getting bigger and larger builders getting bigger at the expense of smaller players may be the unintended result of the Dodd-Frank bill.
Unemployment Insurance Claims | Bedford Hills Realtor
In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses unemployment insurance claims.
- Employment conditions continue to improve in May based on the initial unemployment insurance claims data released today by the Department of Labor.
- 370,000 initial claims for unemployment insurance were filed for the week ending May 19 under the regular state programs; this is lower than the 372,000 claims (revised) filed the previous week and last year’s 424,000 initial claims. The number of initial claims has been trending down since 2009 when initial claims hit a peak of about 600,000.
- The insured unemployed, or those who have continuing insurance claims, is also down to 3.26 million from the previous week’s 3.29 million.
- The decline in insurance claims means that the economy is not shedding as many jobs, which means greater job stability for more people; with income stability, households can look to making longer-term investments such as purchasing a home.
- Partly based on this trend, NAR expects about 2 million net new jobs to be added to the economy in 2012.
FHA Condo Lending in a New Paradigm | North Salem Real Estate
FHA rules on lending for condos have been in the news recently. The rules that govern which apartment buildings the agency can offer lending at are blamed for limiting demand in the condo market and even driving down prices.
The FHA’s rules restrict the FHA from lending in complexes where:
- More than 50% of the units are not owner occupied
- More than 25% of a complex’s square footage is for commercial use
- 15% of the units are 30 days late or more on their HOA dues Continue reading
2012 Commercial Member Profile Highlights | Mount Kisco Real Estate
The Commercial Member Profile was released on Wednesday, May 23rd.
- The Profile showed increased transaction sides among members to 7 in 2011 from 5 in 2010.
- Members reported increased transaction sales volume of $2,010,500 among members who performed sales activity in 2011.
- The typical dollar value of a sales transaction was $414,300 and the typical square feet was 9,600 for commercial members in 2011.
- For more information on the Commercial Member Profile and to read the press release, click here.
Steps to Marketing Success in Facebook and Twitter | Cross River NY Realtor
In the advent of the internet and social media, the size, reach and variety of information has intensified to a level that has made the planet practically borderless. In fact, if I log into my Facebook account right now, I will see a number of marketing- and product-related content packaged in a Facebook-friendly way. And from time to time, I would see that some of these posts have actually generated some “buzz” brought about by a considerable number of views, likes, shares and comments. In a nutshell, this is what many call today as social media marketing.
And if I were to market a certain brand or service though Facebook and Twitter, here’s what I would do:
1. Understand Online Marketing Mechanics.
Marketing done online makes a very big difference. I find that in terms of effectiveness, techniques and market base, “online marketing” has more variety and has a bigger potential. I’ve encountered and to some extent, learned some techniques like web site and social media marketing, link building and outsource link building, search engine optimization (SEO) and online advertising.
The definition and procedure of such terms are easily available online. But before diving into these strategies, the very first step you should take is to create a quality web site or blog that will provide all the necessary information for your brand. If you don’t have one yet, then make one. This main site will be the place on which people can have the awareness, desire or commitment for your product or service. And with the help of Facebook and Twitter, I believe that more and more people can get lured in and interested with what you are offering.2. Know the Facebook and Twitter Sensation.
“Facebook” and “Twitter” are arguably the top two social media sites today with over a billion registered users combined. The chances that your target market and prospective customers are logged into these sites are very high. So, if you’re hoping to draw prospective customers and funnel them into your product’s main information page, I suggest that you register in both of these social media giants. Both of these online portals are social communities wherein users can communicate and interact in a number of ways (tweeting, liking, sharing, commenting, etc). In effect, your brand, as a community member, is not a passive receiver and humanized in a way that it can directly build relationships with its prospective customers.
Having my fair share of time in Facebook, I am certain that it will allow you, the marketer, to introduce your brand publicly but on a more personal and less formal level. These web sites form a vast information network that has the potential to reach an audience that no traditional marketing scheme ca n. Both offer a variety of functions that allows you to market your brand, thus, increasing the odds of luring users to your brand’s official site or blog. Plus, both media sites are free, simple, user-friendly and linkable to each other.
3. Customize, Customize, Customize.
This is what I consider as one of the most crucial steps in social media marketing. Facebook and Twitter allow you to customize and personalize your account in so many ways, and as a marketer, you must do so in a way that best suits your brand and appeals to its target public. So never stop exploring the sites’ features and functions until you are familiar with all of them. Then, start customizing. And if you’re not satisfied, customize some more.
There is no limit in doing this so take advantage of it. A Facebook “wall” or a Twitter page can be customized in terms of content preferences, applications and widgets, appearance, and interactivity, among others. For instance, you can incorporate with these sites your brand’s main page in a way that if one enjoyed the site’s content, he/she can easily share, like, or tweet it to his/her own personal network, allowing this person to market the brand for you.
4. Communicate with a “viral effect” in mind.
What you tell your audience must be so appealing, so helpful, so entertaining, so unusual, or so hard-to-find, that they would like to share the same message (text, photo, video, or link) with their friends (Facebook) and/or followers (Twitter). In this way, your brand gains independent and third-party endorsements while attracting more prospective customers in the process. In Facebook, a “message can become viral” if even only user initially “likes,” “shares,” or comments on the content you provided.
Any of these actions will immediately make the message visible to another user’s group of friends who can then share it with more people within their list of friends. In Twitter, this kind of sharing is done through “re-tweeting.” As mentioned in one of Lynda.com’s “webinars”, a study shows that tweets that are more likely to get re-tweeted are those that:
a. are written in headline format
b. give valuable knowledge such as breaking news, tutorials/how-to’s, free stuff and hard-to-find resources
c. call to action such as “Vote for” or “Help out”
d. include “please RT”5. Interact and engage with your audience.
As an online user who’s been the object of countless marketing spiels and advertisements, I find that my interest or desire for a brand is directly related to the personality and “responsiveness” of the person sharing such promotions.
So, as a site administrator to any of your brand’s page, be as accommodating, as approachable and as interactive as possible. Courteously respond to any customer’s query, comment or suggestion. Show genuine interest as you communicate with them. In most cases, how you deal with them –by what you say and do –affects how they perceive and respond to your brand in general.
6. Upload and Update for smooth and high-volume transactions.
For me, it’s always beneficial to stumble upon fresh content every know and then, so long as they are of relevance and quality. So keep providing useful information to your social media audience for this indicates your active involvement and sincerity towards them.
Aside from product-related content, your knowledge about Facebook, Twitter and other online marketing trends must be updated as well. This will guide you in adjusting your strategy and execution and thus, help you produce better marketing results.
After all, it won’t hurt that through Facebook and Twitter, more people might know who you are and what you could offer. As writer-poet Oscar Wilde’s saying goes, “The only thing worse than being talked about is not being talked about.”
South Salem NY Real Estate | Inventories Reverse Course
The housing inventory rose slightly in April, which is unusual in the middle of the spring sales season. The uptick may be the result of rising seller confidence and it should ease concerns that the super tight inventory levels of the last six months have dampened sales by limiting buyer options.
Yesterday the National Association of Realtors reported the total housing inventory at the end of April increased 9.5 percent from the previous month to 2.54 million existing homes for sale, from 2.32 million homes in March. At the current sales rate, the April 2012 inventory represents a 6.6-month supply which is up from a 6.2-month supply in March, but much improved from the 9.1-month supply of 3.2 million homes a year ago. NAR reported 28 percent of April 2012 sales were distressed sales, defined as foreclosures and short sales sold at deep discounts. This level was down from 29 percent in March and 37 percent a year ago. The median sales price of existing homes rose to $177,400 in April 2012, up 10.1 percent from the same period a year ago.
Other reports confirm that inventories are moving up slightly. Realtor.com’s inventory increased 2.04 percent from last month, but is still down 18.85 percent from a year ago. HousingTracker’s weekly survey of 54 markets reports a 0.1 percent uptick as of May 21, but inventories are down 21 percent on the year. The lowest housing inventory level ever seen on Housing Tracker was 853,607 in January.
In Realtor.com’s database, the markets with the fastest growing inventories on a monthly basis in April were Iowa City, Iowa (11.39 percent); Boulder-Longmont, Colorado (10.65 percent); Trenton, New Jersey (10.62 percent); Washington, DC (9.9 percent); Columbia, MO (9.06 percent); Rochester, NY (7.84 percent); Boston, MA (7.73 percent); Fort Collins-Loveland, Colorado (7.53 percent); Austin-San Marcos, Texas (7.41 percent); Cincinnati, Ohio (7.38 percent). All except Trenton and Cincinnati had increases in their year-over-year median list prices in April.
Katonah Real Estate | First-time Buyers Rebound
First-time buyers are driving expectations that a recovery has begun. Their numbers and market share are growing despite financing roadblocks and competition with investors for entry-level homes.
The first-time buyer market share is holding its own. First-timers representing 35 percent of purchasers in April, up from 33 percent in March and 30 percent in December but below the 50 percent share during the height of the first-time buyer tax credit in 2010. Sales of entry level homes under $100,000 have risen to 23 percent of all home sales in April, up from 15 percent in 2010-2011.
Difficulties getting financing have plagued first-timers. Stricter lending standards established following the subprime meltdown in 2006, including higher down payments, have made it more difficult for younger buyer. In fact, indications are that this year conditions are getting tougher for borrowers, not easier. Lenders actually closed a smaller percentage of purchase mortgage applications in April than they did in March, according to the latest Ellie Mae Origination Report. A survey by Inside Mortgage Finance found that the share of home purchases that were financed in March fell to 65.7 percent from 68.1 percent a year ago and 74.5 percent in March 2010.
Many first-time buyers have turned to FHA financing, which requires a lower down payment than conventional financing. FHA market share has increased steadily from 24 percent of all mortgages in September to 28 percent in April. The median FICO score for FHA purchase loans closed in April was 701, according to Ellie Mae.
In a Move, Inc. survey last fall of potential buyers who plan to buy in the next two years, 55 percent said they lack the money for a down payment and /or closing costs and another 34.5 percent were concerned about their ability to get credit.










Marketing done online makes a very big difference. I find that in terms of effectiveness, techniques and market base, “online marketing” has more variety and has a bigger potential. I’ve encountered and to some extent, learned some techniques like web site and social media marketing, link building and 
What you tell your audience must be so appealing, so helpful, so entertaining, so unusual, or so hard-to-find, that they would like to share the same message (text, photo, video, or link) with their friends (Facebook) and/or followers (Twitter). In this way, your brand gains independent and third-party endorsements while attracting more prospective customers in the process. In Facebook, a “message can become viral” if even only user initially “likes,” “shares,” or comments on the content you provided.