Category Archives: Pound Ridge

Rising Mortgage Rates to Test Housing Market’s Strength | Pound Ridge Homes

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The housing market could be in for a bumpy ride as mortgage rates climb.

Home buyers and sellers heading into the busy summer season have been eyeing mortgage rates wondering how long the good times can last.

The national housing market has been gaining strength in recent years as prices rose rapidly in many areas. In the first quarter, 51 metro areas posted double-digit percentage price gains, according to the National Association of Realtors. But economists say that momentum may not outlast higher rates, depending a lot on location.

For five years, mortgage rates have hovered around 50-year lows, a situation most economists believe will start to reverse if the Federal Reserve begins to raise interest rates later this year. Rates on 30-year conventional mortgages averaged 4% for the week ended Thursday, according to mortgage giant Freddie Mac. Until a few weeks ago, mortgage rates had been below 4% since November.

The Fed doesn’t have direct control over mortgage rates or any other long-term rates, which fluctuate based on perceptions about the economy and inflation. But when the central bank raises short-term rates, other rates move accordingly over time. Mortgage rates typically track yields on 10-year Treasury notes.

 

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http://www.wsj.com/articles/rising-mortgage-rates-to-test-housing-markets-strength-1434913633

 

Living Large in Small Spaces | #PoundRidge #RealEstate

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Five hundred square feet might not sound like much, but as rents clearly show, in some markets that’s a coveted amount of real estate. In other places, it’s plenty of space to rest your head and grab a bite after a day in the woods or on the water. And in many areas, it’s the right size for a reasonable mortgage.

Here’s how it looks to live in 500 or fewer square feet around the country:

Lahaina, HI

3543 Lower Honoapiilani Rd #D206, Lahaina, HI
For sale: $365,500
Size: 454 square feet

Lahaina, HI

This studio offers rich living on a budget in Maui — complete with the use of two pools, two clubhouses, two Jacuzzis and two putting greens, all surrounded by lush landscaping.

See more listings in Lahaina.

Boston, MA

12 Melrose St APT 3, Boston, MA
For sale: $379,000
Size: 415 square feet

Boston MA

Just steps from Boston Common, this 1-bedroom, 1-bath home has hardwood floors, a sunny kitchen and a private deck.

View more homes for sale in Boston, MA.

Semora, NC

186 Munday Oakley Rd, Semora, NC
For sale: $380,000
Size: 500 square feet

Semora, NC

More than 200 feet of lakeshore and a two-slip boat dock come with this cottage near the North Carolina-Virginia border. The home’s large windows offer views of the lake and 1-acre lot.

See more homes on the market in Semora, NC.

Crawford, CO

38618 Fruitland Mesa Rd, Crawford, CO
For sale: $329,000
Size: 468 square feet

Crawford, CO

The great wide open beckons to whoever sleeps in this 468-square-foot cabin on the edge of a canyon between Aspen and Telluride. Situated on 40 acres amid mountains and valleys, the home features an aspen tongue-and-groove ceiling, built-in bookcases and electricity from charged batteries. There’s no bathroom, but a quaint outhouse was just built.

Check out more homes listed in Crawford, CO.

Mortgage Rates at 3.87% | Pound Ridge #Realtor

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Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving higher amid positive housing data and pushing fixed mortgage rates to their highest level of the year.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.87 percent with an average 0.6 point for the week ending May 28, 2015, up from last week when it averaged 3.84 percent. A year ago at this time, the 30-year FRM averaged 4.12 percent.
  • 15-year FRM this week averaged 3.11 percent with an average 0.5 point, up from last week when it averaged 3.05 percent. A year ago at this time, the 15-year FRM averaged 3.21 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.90 percent this week with an average 0.5 point, up from last week when it averaged 2.88 percent. A year ago, the 5-year ARM averaged 2.96 percent.
  • 1-year Treasury-indexed ARM averaged 2.50 percent this week with an average 0.3 point, down from last week when it averaged 2.51 percent. At this time last year, the 1-year ARM averaged 2.41 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for theRegional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes
Attributed to Len Kiefer, deputy chief economist, Freddie Mac.

“Mortgage rates rose to the highest level in 2015 following positive housing market data. New home sales surged 6.8 percent to an annual pace of 517,000 units in April. Althoughexisting home sales slipped 3.3 percent to a seasonally-adjusted pace of 5.04 million units, sales are up 6.1 percent on a year-over-year basis. The S&P/Case-Shiller 20-city home price index also posted a solid gain of 5 percent over the 12-months ending in March 2015.”

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

Too Many Listings, Too Much Time | Pound Ridge Real Estate

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A new study scheduled to be published by the Journal of Housing Economics found that agents who take on too many listings sell them for about 3 percent less and it takes 129 percent longer to sell than agents with modest listing inventories.

The study looked at whether agents have an incentive to take on too many listings—at least from the point of view of their clients. Additional listings may represent additional broker commissions, but they also place greater claims on the broker’s time and energy, which in turn can have adverse sales performance consequences for their clients.

The dilution of agent effort and agency costs by very large numbers of listings adversely affects home prices and liquidity, concluded the study by economists Xun Bian, Bennie D. Waller, Geoffrey K. Turnbull, Scott A. Wentland.

‘It is clear from the results that there is a relationship between agent inventory and sales outcomes that sellers care most about: selling price and time on market. Greater agent inventory is associated with a slightly lower price and a significantly higher time on market,” wrote the authors.

While the adverse impact on price is modest, the effect of agent inventory on liquidity is substantial, the study found. The study found that adding 9 additional listings increases time on market by14%. A richer inventory measure taking into account distance-weighted overlapping listings yields a 26% effect on liquidity.

The study also compared sales of agent-owned homes versus homes owned by clients and found that agents generally sell their homes for approximately 1.6% more than client properties. Inventory competition increases the time on market by 26% for clients, but only 12% for agents. In sum, agent-owned homes still take longer to sell with additional inventory but not as long as client properties. This supports the theory that the inventory effect is driven primarily by agent incentives.

 

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http://www.realestateeconomywatch.com/2015/05/

Slow but Steady Climb Back to Normal | Pound Ridge Real Estate

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Local economies continue to move toward economic and housing normality according to the NAHB/First American Leading Markets Index. The national index moved one percentage point to .91 in the first quarter of 2015 and 4 percentage points from the same quarter last year.

The index measures proximity to normal through three elementary indicators of economic and housing stability: the level of single-family housing permits, home prices and employment as compared to the last period of normality for each. A value of one means that indicator has returned to normal. The three are averaged for a single measure. More than 350 metropolitan areas are scored in this fashion.

In the first quarter of 2015, 68 markets or metropolitan areas had an index value of one or greater, an increase of 7 markets in one year. The increase is heavily driven by the increase in metro areas employment index. The number of markets back to or above normal in employment levels increased from 30 to 56 over the year. The number of markets returning to house price levels last seen in the early aughts has remained high at 95% of all metros measured. The slowest indicator to return to normal has been single-family permits as only 7% of the listed metros are issuing as many or more permits compared to the early aughts.

The markets leading in recovery are leading in employment and vice versa. Strong employment growth leads to the need for more homes and the markets showing the greatest improvement are in strong employment markets, primarily in energy production and refining. Half of the 68 metros with an index value of one or above are in the oil/energy belt in the middle of the country.

Note: The publicly available data used to compute the LMI reflects the updated boundaries and list of Metropolitan Statistical Areas made by the Office of Management and Budget (OMB) as a result of the 2010 Decennial Census. The historic data used for comparison were also updated to reflect post-2010 geography.

 

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http://eyeonhousing.org/2015/05/

Remodelers Remain Confident About Improving Market | Pound Ridge Real Estate

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NAHB’s Remodeling Market Index (RMI) was 57 in the first quarter of 2015, off the historic high point of 60 at the end of 2014, but still above the key break-even point of 50. The RMI and each of its components lies on a scale of 0 to 100, where a number above 50 indicates that more remodelers report the market has improved than report it has gotten worse.

RMI 15Q1 chart

The overall RMI averages ratings of current remodeling conditions with indicators of future activity.  Overall, current market conditions declined two points to 58, although smaller jobs continued to show strength: the maintenance and repair component of the RMI increased four points to 64—an all time high since the inception of the survey in 2001.

The index of future market indicators also declined, from 60 to 55, in the first quarter.  All four of its subcomponents—calls for bids, amount of work committed for the next three months, backlog of jobs and appointments for proposals—declined but remained significantly above 50.

RMI 15Q1 table

The indices above 50 mean that remodelers on balance remain positive about the improving market.  The declines off fourth quarter peaks mean the positive outlook is not quite as widespread as it was at the end of last year.  A shortage of labor in key trades is one factor restraining remodelers’ optimism.  Another may be the harsh weather that struck many parts of the country during the first quarter of 2015, although this would have necessitated repairs and tended to have a positive effect on the RMI’s maintenance and repair component.

 

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http://eyeonhousing.org/2015/04/rmi-edges-down-but-remodelers-remain-confident-about-improving-market/

Buy a Sleek William Georgis-Designed Home in the Hamptons | Pound Ridge Real Estate

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Location: Water Mill, New York
Price: $14,000,000
This contemporary home in Southhampton was designed byAD100 architect and art world favorite William Georgis, who is known for imbuing his residences with eye-catching accents and bold fixtures. In this 4,000-square-foot spread, the living room has a double-height glass wall and a ceiling-mounted fireplace, while outside there’s a small heated pool and a yard landscaped with wildflowers and bamboo stands by garden designer Paula Hayes. Built for the real estate mogul and art collector Aby Rosen, thisrectangular home with an ivy-covered front elevation comes with a boat dock, a detached one-bedroom guesthouse, a workout studio, a built-in barbecue, and four bedrooms with views of the water. Previously a $400,000 whole-summer rental, the one-acre property is now on the market asking $14,000,000.

 

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http://curbed.com/archives/2015/04/07/william-georgis-home-water-mill-hamptons-for-sale.php?utm_campaign=issue-36187&utm_medium=email&utm_source=Curbed%27s+House+of+the+Day

Existing home sales slightly rebound after last month’s plummet | Pound Ridge Homes

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Existing-home sales slightly ticked back up 1.2% in February after last month’s plummet, but tight inventory levels pushed price growth to its fastest pace in a year, theNational Association of Realtors said.

Lawrence Yun, NAR chief economist, said although February sales showed modest improvement, there’s been some stagnation in the market in recent months.

“Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels,” he said. “Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before rates rise.”

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 1.2% to a seasonally adjusted annual rate of 4.88 million in February from 4.82 million in January. Sales are 4.7% higher than a year ago and above year-over-year totals for the fifth consecutive month.

This is not too far off Zillow’s (Z) forecast that the seasonal adjusted annual rate would rise 1.3% to 4.88 million in February.

The median existing-home price for all housing types in February was $202,600, which is 7.5% above February 2014. This marks the 36th consecutive month of year-over-year price gains and the largest since last February with it was 8.8%.

In addition, total housing inventory at the end of February increased 1.6% to 1.89 million existing homes available for sale, but remains 0.5% below a year ago (1.90 million). For the second straight month, unsold inventory is at a 4.6-month supply at the current sales pace.

The percent share of first-time buyers barely increased, growing to 29% in February from 28% in January, marking the first increase since November 2014. First-time buyers represented 28% of all buyers in February 2014.

All-cash sales were 26% of transactions in February, down from 27% in January and down considerably from a year ago when it was 35%.

Individual investors, who account for many cash sales, purchased 14% of homes in February, down from 17% last month and 21% in February 2014. Sixty-seven percent of investors paid cash in February.

Distressed sales, foreclosures and short sales, were 11% of sales in February, unchanged for the third consecutive month and down from 16% a year ago. Eight percent of February sales were foreclosures and 3% were short sales. Foreclosures sold for an average discount of 17% below market value in February (15% in January), while short sales were discounted 15% (12% in January).

 

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Existing home sales slightly rebound after last monthÕ plummet