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August 13, 2018
June 13, 2016
Market Update
QUOTE OF THE WEEK... "How wonderful that we have met with a paradox. Now
we have some hope of making progress." --Niels Bohr, Danish physicist
INFO THAT HITS US WHERE WE LIVE ... The Nobel Prize winner quoted above would no doubt have been encouraged by the somewhat contradictory findings of Fannie Mae's latest survey. Their Home Purchase Sentiment Index (HPSI) hit an all-time high in May, as more people than ever said it would be a good time to sell their homes. Unfortunately, fewer of those consumers felt it was a good time to buy. This seeming paradox can be resolved by noting that home prices, nationally, continue to climb. This is appealing to sellers, but when they then become buyers, many are hampered by the slow wage growth that continues to plague the U.S. economy.
In fact, the HPSI revealed that only 18% of respondents reported their income was significantly higher than it was a year ago. Fannie Mae's chief economist pointed out, "The current low mortgage rate environment has helped...and fewer than half of consumers expect rates to go up in the next year." The CoreLogic Home Price Index posted a 6.2% annual increase in April, but projected the gain would slow to 5.3% in the year ahead. Buyers are still showing up, evidenced by the Mortgage Bankers Association report that purchase applications went up 12% for the week ending June 3. That includes an adjustment made for the Memorial Day holiday.
BUSINESS TIP OF THE WEEK... Take charge of your business by taking charge of your day. There will always be unexpected events, but set your priorities first thing, then make sure they're accomplished by EOD.
INFO THAT HITS US WHERE WE LIVE ... The Nobel Prize winner quoted above would no doubt have been encouraged by the somewhat contradictory findings of Fannie Mae's latest survey. Their Home Purchase Sentiment Index (HPSI) hit an all-time high in May, as more people than ever said it would be a good time to sell their homes. Unfortunately, fewer of those consumers felt it was a good time to buy. This seeming paradox can be resolved by noting that home prices, nationally, continue to climb. This is appealing to sellers, but when they then become buyers, many are hampered by the slow wage growth that continues to plague the U.S. economy.
In fact, the HPSI revealed that only 18% of respondents reported their income was significantly higher than it was a year ago. Fannie Mae's chief economist pointed out, "The current low mortgage rate environment has helped...and fewer than half of consumers expect rates to go up in the next year." The CoreLogic Home Price Index posted a 6.2% annual increase in April, but projected the gain would slow to 5.3% in the year ahead. Buyers are still showing up, evidenced by the Mortgage Bankers Association report that purchase applications went up 12% for the week ending June 3. That includes an adjustment made for the Memorial Day holiday.
BUSINESS TIP OF THE WEEK... Take charge of your business by taking charge of your day. There will always be unexpected events, but set your priorities first thing, then make sure they're accomplished by EOD.
June 6, 2016
Weekly Update
QUOTE OF THE WEEK... "Personally, I don't think there's intelligent life
on other planets. Why should other planets be any different from this
one?" --Bob Monkhouse, English comedian
INFO THAT HITS US WHERE WE LIVE ... Whether or not you see intelligent life in the housing market, at least there is life evident. People continue to buy homes and prices keep moving ahead. The Case-Shiller Home Price Index was up 0.1% in March, and is up 5.2% in the last year. That's a bigger annual gain than the 4.3% logged for the year ending March 2015. The index has been driven by some hot metros (Denver, Portland, Seattle), but also by the tight supply in markets across the country. The Case-Shiller Index Committee's managing director said, "The low inventory...means that would-be sellers seeking to trade up are having a hard time finding a new, larger home."
But he added, "This may be starting to change: starts of single family homes in February were the highest since November 2007. The single-family home share of total housing starts was...approaching the 75%-80% range seen before the housing crisis." The chief economist at an online real estate site observed, "Despite facing some broader economic headwinds, market demand remains healthy." This enthusiasm in many regions may entice more owners to bring their homes onto the market. One source of comprehensive housing data reported Q1 saw the highest rate of home flips in two years and the biggest profits since the end of 2005. There are values out there.
BUSINESS TIP OF THE WEEK... Building trust with your clients is the foundation of your success. And to build trust, being consistent is key.
INFO THAT HITS US WHERE WE LIVE ... Whether or not you see intelligent life in the housing market, at least there is life evident. People continue to buy homes and prices keep moving ahead. The Case-Shiller Home Price Index was up 0.1% in March, and is up 5.2% in the last year. That's a bigger annual gain than the 4.3% logged for the year ending March 2015. The index has been driven by some hot metros (Denver, Portland, Seattle), but also by the tight supply in markets across the country. The Case-Shiller Index Committee's managing director said, "The low inventory...means that would-be sellers seeking to trade up are having a hard time finding a new, larger home."
But he added, "This may be starting to change: starts of single family homes in February were the highest since November 2007. The single-family home share of total housing starts was...approaching the 75%-80% range seen before the housing crisis." The chief economist at an online real estate site observed, "Despite facing some broader economic headwinds, market demand remains healthy." This enthusiasm in many regions may entice more owners to bring their homes onto the market. One source of comprehensive housing data reported Q1 saw the highest rate of home flips in two years and the biggest profits since the end of 2005. There are values out there.
BUSINESS TIP OF THE WEEK... Building trust with your clients is the foundation of your success. And to build trust, being consistent is key.
May 31, 2016
Market Update
QUOTE OF THE WEEK... "Ask five economists and you'll get five different
answers--six if one went to Harvard." --Edgar R. Fiedler, American
economist
INFO THAT HITS US WHERE WE LIVE ... Last week you didn't need to consult even one economist to be able to evaluate the state of the housing market. You just had to read the reports. New Home Sales shot up 16.6% in April reaching a 619,000 unit annual rate, well above what the experts expected. This is the fastest pace we've seen in eight years. The U.S. Census Bureau's new home sales data is extremely volatile month to month, so it's important to look at the trend, which has stayed positive. In fact, sales are 23.8% ahead of where they were a year ago, clearly showing a strong climb back to normal for the new homes market.
On the existing homes front, we were treated to the latest National Association of Realtors (NAR) reading on contracts signed for the purchase of those homes. The NAR Pending Home Sales index zoomed up 5.1% for the month to hit a ten-year high, landing 4.6% above April a year ago. Pending home sales have now registered year-over-year gains for 20 months in a row. The NAR's chief economist opined, "the prospect of facing higher rents and mortgage rates down the road appears to be bringing more interested buyers into the market." Lending support to this view, the Mortgage Bankers Association reported purchase mortgage applications up 5% over the week before.
BUSINESS TIP OF THE WEEK... Always meet your clients' needs, but when the opportunity arises, do more than is required. The surest way to get ahead is to go the extra mile.
INFO THAT HITS US WHERE WE LIVE ... Last week you didn't need to consult even one economist to be able to evaluate the state of the housing market. You just had to read the reports. New Home Sales shot up 16.6% in April reaching a 619,000 unit annual rate, well above what the experts expected. This is the fastest pace we've seen in eight years. The U.S. Census Bureau's new home sales data is extremely volatile month to month, so it's important to look at the trend, which has stayed positive. In fact, sales are 23.8% ahead of where they were a year ago, clearly showing a strong climb back to normal for the new homes market.
On the existing homes front, we were treated to the latest National Association of Realtors (NAR) reading on contracts signed for the purchase of those homes. The NAR Pending Home Sales index zoomed up 5.1% for the month to hit a ten-year high, landing 4.6% above April a year ago. Pending home sales have now registered year-over-year gains for 20 months in a row. The NAR's chief economist opined, "the prospect of facing higher rents and mortgage rates down the road appears to be bringing more interested buyers into the market." Lending support to this view, the Mortgage Bankers Association reported purchase mortgage applications up 5% over the week before.
BUSINESS TIP OF THE WEEK... Always meet your clients' needs, but when the opportunity arises, do more than is required. The surest way to get ahead is to go the extra mile.
May 23, 2016
Weekly Update
QUOTE OF THE WEEK... "Every morning, I get up and look through the
'Forbes' list of the richest people in America. If I'm not there, I go to
work." --Robert Orben, American professional comedy writer
INFO THAT HITS US WHERE WE LIVE ... Plenty of home builders went to work last month, as Housing Starts shot up 6.6% in April to a 1.172 million unit annual rate. Some negative Nellies pointed out starts suffered a big decline in March, so April's number is still down 1.7% from a year ago. But that's actually all due to a slow-down in multi-family construction. Single-family starts are up 4.3% the past year. Likewise, new building permits for single-family units are up 8.4% versus a year ago, while overall permits were up 3.6% in April, to a 1.116 million annual rate. The experts say we need starts to get to 1.5 million units a year, so there's room for lots more recovery ahead.
There wasn't anything negative about the National Association of Realtors (NAR) report that Existing Home Sales rose in April for the second straight month, up 1.7%, to a 5.45 million unit annual rate, beating all forecasts. The NAR's chief economist sees momentum building for the spring housing market, noting "sales activity overall was at a healthy pace last month, as very low mortgage rates and modest seasonal inventory gains encouraged more households to search for and close on a home." But Freddie Mac's chief economist cautioned that mortgage rates could begin to change, given "the hawkish tone of Wednesday's Fed minutes release." Let's hope he's overreacting.
BUSINESS TIP OF THE WEEK... If networking events make you nervous, volunteer to lend a hand. When you have a role in the event, people talk to you, so you don't have to worry about how to break the ice.
INFO THAT HITS US WHERE WE LIVE ... Plenty of home builders went to work last month, as Housing Starts shot up 6.6% in April to a 1.172 million unit annual rate. Some negative Nellies pointed out starts suffered a big decline in March, so April's number is still down 1.7% from a year ago. But that's actually all due to a slow-down in multi-family construction. Single-family starts are up 4.3% the past year. Likewise, new building permits for single-family units are up 8.4% versus a year ago, while overall permits were up 3.6% in April, to a 1.116 million annual rate. The experts say we need starts to get to 1.5 million units a year, so there's room for lots more recovery ahead.
There wasn't anything negative about the National Association of Realtors (NAR) report that Existing Home Sales rose in April for the second straight month, up 1.7%, to a 5.45 million unit annual rate, beating all forecasts. The NAR's chief economist sees momentum building for the spring housing market, noting "sales activity overall was at a healthy pace last month, as very low mortgage rates and modest seasonal inventory gains encouraged more households to search for and close on a home." But Freddie Mac's chief economist cautioned that mortgage rates could begin to change, given "the hawkish tone of Wednesday's Fed minutes release." Let's hope he's overreacting.
BUSINESS TIP OF THE WEEK... If networking events make you nervous, volunteer to lend a hand. When you have a role in the event, people talk to you, so you don't have to worry about how to break the ice.
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