Posts
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.
May 18, 2016
5 tactics for effective prospect follow-up
How
we get prospects has changed, but how we follow up has not. It’s easier to
close someone you know, a “prospect,” than a stranger, a “lead.” You turn
leads into prospects by following up. Here’s how.
|
May 16, 2016
Weekly Update
QUOTE OF THE WEEK... "The way to get started is to quit talking and begin
doing." --Walt Disney, American entrepreneur and animation pioneer
INFO THAT HITS US WHERE WE LIVE ... There's always lots to talk about in the housing market, but happily what more people have begun doing is actually buying homes. The National Association of Realtors (NAR) reported existing home sales saw their best first quarter in almost a decade. The NAR chief economist painted this picture: "In spite of deficient supply levels, stock market volatility and the paltry economic growth seen so far this year, the housing market did show resilience and had its best first quarter of existing sales since 2007." For single-family homes and condos, that was a 5.29 million unit annual rate--4.8% higher than a year ago.
Seeing this excellent Q1 performance, an NAR economic forecast forum predicted existing home sales would post their best year in the last ten, finishing 2016 at a 5.40 million annual pace. They expect median existing home price gains to moderate from 6.8% in 2015 to 4% to 5% this year. A major real estate information firm's report on Q1 loan originations showed purchase mortgages up 3% and home equity lines of credit up 10%, versus a year ago. Oddly in this low rate environment, refinance originations dropped, but the firm's senior VP pointed out, "the purchase loan market continued the pattern of slow-and-steady growth that it has been following the past two years."
BUSINESS TIP OF THE WEEK... In every endeavor, always choose to succeed. People are successful for many different reasons, but they all share this one: they chose to succeed.
INFO THAT HITS US WHERE WE LIVE ... There's always lots to talk about in the housing market, but happily what more people have begun doing is actually buying homes. The National Association of Realtors (NAR) reported existing home sales saw their best first quarter in almost a decade. The NAR chief economist painted this picture: "In spite of deficient supply levels, stock market volatility and the paltry economic growth seen so far this year, the housing market did show resilience and had its best first quarter of existing sales since 2007." For single-family homes and condos, that was a 5.29 million unit annual rate--4.8% higher than a year ago.
Seeing this excellent Q1 performance, an NAR economic forecast forum predicted existing home sales would post their best year in the last ten, finishing 2016 at a 5.40 million annual pace. They expect median existing home price gains to moderate from 6.8% in 2015 to 4% to 5% this year. A major real estate information firm's report on Q1 loan originations showed purchase mortgages up 3% and home equity lines of credit up 10%, versus a year ago. Oddly in this low rate environment, refinance originations dropped, but the firm's senior VP pointed out, "the purchase loan market continued the pattern of slow-and-steady growth that it has been following the past two years."
BUSINESS TIP OF THE WEEK... In every endeavor, always choose to succeed. People are successful for many different reasons, but they all share this one: they chose to succeed.
May 9, 2016
Market Update
QUOTE OF THE WEEK... "Rule No. 1: Never lose money. Rule No. 2: Never
forget Rule No. 1." --Warren Buffett, American business magnate,
investor and philanthropist
INFO THAT HITS US WHERE WE LIVE ... The weekend before last, Mr. Buffett spoke at his company's annual meeting and the "Oracle of Omaha" asserted that the housing market is on stable footing. He said the likelihood of another crisis brought on by falling home prices is "very low." "I don't see a nationwide bubble in real estate right now at all. In Omaha and other parts of the country, people are not paying bubble prices for real estate." A leading real estate information firm agrees. They reported home prices were up 6.7% year-over-year in March and the firm forecasts that prices will come in 5.3% ahead, year-over-year, in March 2017.
In other words, home price appreciation has been steady over the last year and the trend isn't likely to change any time soon. It doesn't hurt that mortgage rates have remained attractive. Freddie Mac's chief economist said that last week "...the 30-year mortgage rate drifted down to...just three basis points above the low for the year." He added: "Since the start of February, mortgage rates have varied within a narrow range providing an extended period for house hunters to take advantage of historically low rates." One listing site reports homes are indeed selling faster, with 66.6% on the market after 30 days, a 1.2% drop from a year ago.
BUSINESS TIP OF THE WEEK... Change is inevitable but people can be flexible. So instead of fighting change, work it to your advantage and see what amazing things can happen.
INFO THAT HITS US WHERE WE LIVE ... The weekend before last, Mr. Buffett spoke at his company's annual meeting and the "Oracle of Omaha" asserted that the housing market is on stable footing. He said the likelihood of another crisis brought on by falling home prices is "very low." "I don't see a nationwide bubble in real estate right now at all. In Omaha and other parts of the country, people are not paying bubble prices for real estate." A leading real estate information firm agrees. They reported home prices were up 6.7% year-over-year in March and the firm forecasts that prices will come in 5.3% ahead, year-over-year, in March 2017.
In other words, home price appreciation has been steady over the last year and the trend isn't likely to change any time soon. It doesn't hurt that mortgage rates have remained attractive. Freddie Mac's chief economist said that last week "...the 30-year mortgage rate drifted down to...just three basis points above the low for the year." He added: "Since the start of February, mortgage rates have varied within a narrow range providing an extended period for house hunters to take advantage of historically low rates." One listing site reports homes are indeed selling faster, with 66.6% on the market after 30 days, a 1.2% drop from a year ago.
BUSINESS TIP OF THE WEEK... Change is inevitable but people can be flexible. So instead of fighting change, work it to your advantage and see what amazing things can happen.
May 2, 2016
Market Update
QUOTE OF THE WEEK... "From there to here, and here to there, funny things
are everywhere." --Dr. Seuss (Theodor Seuss Geisel), American writer
and illustrator
INFO THAT HITS US WHERE WE LIVE ... Funny things certainly are occurring everywhere in the housing market. Last week began with the news that New Home Sales dipped 1.5% in March. But sales were up in the Midwest and the South, level in the Northeast, only slipped in the West, and overall, new single-family home sales are up 5.4% over a year ago. Plus, this report doesn't count sales of multifamily units: urban condos, for example. Monthly data of course is volatile, so we have to look at the trend and that stays positive. Jobs and wages are picking up, if ever so slowly, and that's putting a new home within the reach of more people.
The National Association of Realtors (NAR) Pending Home Sales index shot up in March to its highest level in seven months. This measure of contracts signed on existing homes gained for the second month in a row. The NAR's chief economist felt this signals a solid beginning to the spring buying season: "Despite supply deficiencies in plenty of areas, contract activity was fairly strong in a majority of markets in March." And the trend here is terrific. Pending home sales have grown year-over-year 19 months in a row. It was especially nice to see strength in the Northeast and the Midwest. Finally, the Case-Shiller home price index is up 5.4% from a year ago.
BUSINESS TIP OF THE WEEK... Perfectionism is a liability. The time it takes to get every detail perfect slows you down. Focus on doing the high-priority, high-impact items right, then just get the rest of the job done.
INFO THAT HITS US WHERE WE LIVE ... Funny things certainly are occurring everywhere in the housing market. Last week began with the news that New Home Sales dipped 1.5% in March. But sales were up in the Midwest and the South, level in the Northeast, only slipped in the West, and overall, new single-family home sales are up 5.4% over a year ago. Plus, this report doesn't count sales of multifamily units: urban condos, for example. Monthly data of course is volatile, so we have to look at the trend and that stays positive. Jobs and wages are picking up, if ever so slowly, and that's putting a new home within the reach of more people.
The National Association of Realtors (NAR) Pending Home Sales index shot up in March to its highest level in seven months. This measure of contracts signed on existing homes gained for the second month in a row. The NAR's chief economist felt this signals a solid beginning to the spring buying season: "Despite supply deficiencies in plenty of areas, contract activity was fairly strong in a majority of markets in March." And the trend here is terrific. Pending home sales have grown year-over-year 19 months in a row. It was especially nice to see strength in the Northeast and the Midwest. Finally, the Case-Shiller home price index is up 5.4% from a year ago.
BUSINESS TIP OF THE WEEK... Perfectionism is a liability. The time it takes to get every detail perfect slows you down. Focus on doing the high-priority, high-impact items right, then just get the rest of the job done.
April 25, 2016
Market Update
QUOTE OF THE WEEK... "Only the mediocre are always at their best."
--Jean Giraudoux, French dramatist
INFO THAT HITS US WHERE WE LIVE ... Housing starts certainly were not at their best in March, dropping 8.8% for the month, to a 1.089 million annual rate. But you could hardly call their performance mediocre in the past year, as starts are up a solid 14.2% during that time. Single family starts are even stronger, up 22.6% versus a year ago, and the 12-month moving average of overall starts is at its highest level since 2008. New building permits likewise weren't at their best in March, dipping 7.7% overall, to a 1.086 million annual rate. Yet single-family building permits are 13.2% ahead of where they were a year ago.
The National Association of Home Builders (NAHB) confidence index, at 58 in April, showed the majority of builders see favorable market conditions. Existing home sales did well in March, up 5.1%, to a 5.33 million annual rate. The months' supply rose to 4.5 months, due to a 5.9% increase in inventories. Still, supply remains tight and demand is getting stronger, as existing homes were on the market an average of only 47 days in March, down from 59 days in February. A real estate information company reported sellers in March saw an average 17% gain over their original purchase price, the highest increase since December 2007.
BUSINESS TIP OF THE WEEK... Let your two ears and one mouth remind you to listen twice as often as you speak. Clients want to be heard--and understood. Make sure of that by paraphrasing their words back to them.
INFO THAT HITS US WHERE WE LIVE ... Housing starts certainly were not at their best in March, dropping 8.8% for the month, to a 1.089 million annual rate. But you could hardly call their performance mediocre in the past year, as starts are up a solid 14.2% during that time. Single family starts are even stronger, up 22.6% versus a year ago, and the 12-month moving average of overall starts is at its highest level since 2008. New building permits likewise weren't at their best in March, dipping 7.7% overall, to a 1.086 million annual rate. Yet single-family building permits are 13.2% ahead of where they were a year ago.
The National Association of Home Builders (NAHB) confidence index, at 58 in April, showed the majority of builders see favorable market conditions. Existing home sales did well in March, up 5.1%, to a 5.33 million annual rate. The months' supply rose to 4.5 months, due to a 5.9% increase in inventories. Still, supply remains tight and demand is getting stronger, as existing homes were on the market an average of only 47 days in March, down from 59 days in February. A real estate information company reported sellers in March saw an average 17% gain over their original purchase price, the highest increase since December 2007.
BUSINESS TIP OF THE WEEK... Let your two ears and one mouth remind you to listen twice as often as you speak. Clients want to be heard--and understood. Make sure of that by paraphrasing their words back to them.
April 18, 2016
Market Update
QUOTE OF THE WEEK... "Visits always give pleasure--if not the arrival,
the departure." --Portuguese proverb
INFO THAT HITS US WHERE WE LIVE ... Last week, we were visited by some housing market reports that clearly gave pleasure on arrival. The Mortgage Bankers Association (MBA) told us purchase applications jumped 8% from the week before, to their highest level since last October, and their second highest level in six years. That MBA Weekly Applications Survey for the week ending April 8 also reported refinance applications were up 11% from the prior week, reaching their highest level since February. This was all helped no doubt by national average fixed mortgage rates continuing to come in near historical lows.
The MBA's March Builder Applications Survey showed mortgage applications for new home purchases went up 17% month-over-month, as new single-family home sales hit an estimated annual rate of 574,000 units. Another index reported the annualized rate of potential existing home sales hit 5.8 million in March, a 90.9% gain from their December 2008 low point, but still 9.7% below their July 2005 pre-recession peak. These national trends are encouraging, as a rising tide eventually lifts all boats, but real estate is local. The Fed's Beige Book did report construction and real estate activity expanding nationally, though the results were mixed across the 12 Fed districts.
BUSINESS TIP OF THE WEEK... Respond quickly to prospect inquiries. A recent study showed the odds of connecting with a lead are 100 times higher if contacted within five minutes of making an inquiry, than if contacted within 30 minutes.
INFO THAT HITS US WHERE WE LIVE ... Last week, we were visited by some housing market reports that clearly gave pleasure on arrival. The Mortgage Bankers Association (MBA) told us purchase applications jumped 8% from the week before, to their highest level since last October, and their second highest level in six years. That MBA Weekly Applications Survey for the week ending April 8 also reported refinance applications were up 11% from the prior week, reaching their highest level since February. This was all helped no doubt by national average fixed mortgage rates continuing to come in near historical lows.
The MBA's March Builder Applications Survey showed mortgage applications for new home purchases went up 17% month-over-month, as new single-family home sales hit an estimated annual rate of 574,000 units. Another index reported the annualized rate of potential existing home sales hit 5.8 million in March, a 90.9% gain from their December 2008 low point, but still 9.7% below their July 2005 pre-recession peak. These national trends are encouraging, as a rising tide eventually lifts all boats, but real estate is local. The Fed's Beige Book did report construction and real estate activity expanding nationally, though the results were mixed across the 12 Fed districts.
BUSINESS TIP OF THE WEEK... Respond quickly to prospect inquiries. A recent study showed the odds of connecting with a lead are 100 times higher if contacted within five minutes of making an inquiry, than if contacted within 30 minutes.
April 11, 2016
Weekly Update
QUOTE OF THE WEEK... "I'll give you a definite maybe." --Samuel
Goldwyn, American film producer
INFO THAT HITS US WHERE WE LIVE ... The above 'Goldwynism' is an appropriate answer to the question, "Will the U.S. housing market ever recover to the levels it once enjoyed?" Thankfully, we do keep seeing signs of progress. Supply is a challenge in many markets, so it was encouraging that Freddie Mac's March 2016 monthly outlook projected single-family and multifamily housing starts will go up by 200,000 units this year, hitting 1.3 million units. They expect home price appreciation to slow from 6% in 2015 to 4.8% this year, which should be enough to encourage sellers, while still keeping homes affordable for a good many buyers.
Low mortgage rates also help, and Fed chair Janet Yellen recently said they'll proceed "cautiously" with hiking interest rates. But buyers aren't taking any chances, as appraisal volume shot up 20.1% last week! One of the three major credit bureaus reported that a whopping $1.82 trillion in first mortgages were originated in 2015, a 42.9% jump over 2014's $1.27 trillion total. There were also 7.71 million new first mortgages originated in 2015, a healthy 31.6% more than the 5.86 million originated in 2014. Their chief economist averred, "While low interest rates are helping, continued gains in employment and consumer confidence are key."
BUSINESS TIP OF THE WEEK... Make sure all your communications are targeted to the goals of your audience, relevant to their needs, and focused on the unique value you deliver.
INFO THAT HITS US WHERE WE LIVE ... The above 'Goldwynism' is an appropriate answer to the question, "Will the U.S. housing market ever recover to the levels it once enjoyed?" Thankfully, we do keep seeing signs of progress. Supply is a challenge in many markets, so it was encouraging that Freddie Mac's March 2016 monthly outlook projected single-family and multifamily housing starts will go up by 200,000 units this year, hitting 1.3 million units. They expect home price appreciation to slow from 6% in 2015 to 4.8% this year, which should be enough to encourage sellers, while still keeping homes affordable for a good many buyers.
Low mortgage rates also help, and Fed chair Janet Yellen recently said they'll proceed "cautiously" with hiking interest rates. But buyers aren't taking any chances, as appraisal volume shot up 20.1% last week! One of the three major credit bureaus reported that a whopping $1.82 trillion in first mortgages were originated in 2015, a 42.9% jump over 2014's $1.27 trillion total. There were also 7.71 million new first mortgages originated in 2015, a healthy 31.6% more than the 5.86 million originated in 2014. Their chief economist averred, "While low interest rates are helping, continued gains in employment and consumer confidence are key."
BUSINESS TIP OF THE WEEK... Make sure all your communications are targeted to the goals of your audience, relevant to their needs, and focused on the unique value you deliver.
April 7, 2016
Crazy Busy? Slow Down
It’s
only April. We haven’t even hit our busiest season yet, but we are already
feeling it. The storm has been building the last few weeks. Suddenly, we are
all swamped. I look around our office and instead of light hearted banter and
laughter, heads are down, fingers are typing away, and people are rushing in
and out the door. It’s like a newsroom right before deadline.
Does this sound like you? If so, I
have two words for you: Slow Down.
I know that sounds crazy. How can we
slow down if we have a million things to do?
I remember sitting at a conference
waiting for the keynote speaker to begin. He walked up on stage with his hands
on his hips, started pacing, asked the sound technician for microphone help,
paced some more, acted irritated with his clicker for the big screen, and
started appearing very stressed. My blood pressure was starting rise. My heart
was beating faster. I was sitting forty rows back and I could feel his
frustration all through me. Suddenly, he looked at us, relaxed his body and
started laughing. He was messing with us! He wanted us to see how easy it was
for our mood to change based on his.
When you are stressed out and
feeling rushed, what are you portraying to your clients? When you are meeting
with them to write an offer, are you focusing on the fact that this is a huge
financial decision and they have a million questions swirling through their
head, or are you viewing it as one more task to complete before the next?
Slow down.
The purchase agreement is the most
important document we write in this profession. Think about it: Our income is
based off this one paper making it all the way through the process. The whole
deal is based off this document. Properly filling it out, explaining it, and
making sure the buyer’s needs are met is the most important step for a smooth
transaction. If you aren’t truly present during the writing of this, you
will suffer and so will your client.Slow down.
But how?
Schedule your day. Give yourself an extra hour between clients in case one decides
to write an offer after their showings. Add an extra half hour to your listing
appointments in case you run over due to questions or issues.
If you don’t write an offer, or you don’t use that half hour, then
use that time to get some paperwork done or return phone calls. So much of our
stress comes from racing from here to there always feeling late and stretched
for time. If you bank time in advance for what could happen, then you won’t
feel the need to rush now and apologize later.
Write it down. When I start feeling stressed, it’s because I have a million
things on my mind and they are piling up one after another before I have time
to even finish one task. When this happens, I pull out a piece of paper and write
everything down as it comes at me. Once I have it on paper, I find that not
only am I no longer feeling distracted and burdened by having to remember every
single thing, but my task list no longer feels insurmountable when I see it
written down. “Purge the brain” is what I tell my colleagues. It helps.
Refer. Refer. Refer. If you are completely overwhelmed where you can’t possibly fit one
more thing in, then why do you still try? You (should) have very capable
colleagues who will happily take on a new client and pay you a referral fee.
And if you are honest with yourself, deep down you know that ultimately the
best thing for that client is to be with someone who has the time to meet their
needs, and that someone isn’t you right now.
Slow down.
It’s easy to get buried in
paperwork. It’s tough being pulled in a million directions all at once. It’s
not uncommon to feel piled on, trampled on and beaten down. But your clients
need to feel that you have everything under control. Help them walk the
shoreline while you’re fighting the riptides. It’s your job. Slow down.
Amy Gilpin 
Associate Broker, Manager, ABR.
Fourteen years of helping clients. Six years of helping agents. All for this crazy thing we call real estate.
Production Realty 517-879-4141 Jackson, MI Amy@ProductionRealty.com
The post Crazy Busy? Slow
Down appeared first on National Real Estate Post.
Associate Broker, Manager, ABR.Fourteen years of helping clients. Six years of helping agents. All for this crazy thing we call real estate.
Production Realty 517-879-4141 Jackson, MI Amy@ProductionRealty.com
March 31, 2016
FREE 3 Hour CE Class April 12th
Cathy McDaniel 
"Selling the New Home Concept to Today's Buyers"
3 Hour CE Class
3 Hour CE Class
In house hunting today, buyer will need to consider their selection pros and cons objectively, as well as emotionally and think about the compromises they are willing to make. The more logically they approach buying the house of choice, the more they are going to love living in it.
With so many possibilities, deciding whether to buy an existing home or buy a brand new one is often daunting. Construction knowledge isn’t mandatory for building a new house, as you can hire qualified individuals to do it for you. Buying an existing house isn’t as straightforward as it may seem, though, and you may find that either option is more involved than you expected. With a better understanding of what lies ahead, your buyer can decide with more confidence
Buying a house brings up different issues. Let’s discuss the pros and cons and the buying process in purchasing a new home versus an existing home.
Isn’t it great to have options? At the end of the day, it really comes down to a buyer’s lifestyle and what is most important to them.
March 28, 2016
Market Update
QUOTE OF THE WEEK... "If at first you don't succeed, blame your
parents." --Marcelene Cox, American writer
INFO THAT HITS US WHERE WE LIVE ... People were certainly looking at where to place the blame for February's 7.1% drop in Existing Home Sales, to a 5.08 million annual rate. Winter storms in the Northeast did slow down contract signings in January, which lowered February closings. More importantly, housing data can be volatile, month to month. So thank goodness the broader trend in Existing Home Sales keeps going up. The past six months have seen an average 5.27 million annual rate, increasing to 5.33 million the last three months, with sales up 2.2% over last year. Supply is tight, but new homes are going up at the fastest pace since 2007.
Best of all, people are buying those new homes. February saw New Home Sales move up 2.0% for the month, to a 512,000 annual rate, the fourth increase in the last five months. Analysts are putting this to employment gains and a pickup in wage growth, making buying a home within the reach of more people. Buyers have shifted slightly to newly built condos, which aren't counted in the New Home Sales report. The inventory of new single-family homes grew by 4,000 in the month, but is still very low by historical standards. Finally, the FHFA index of homes bought with conforming mortgages was up 0.5% in January and up 6.0% versus a year ago.
BUSINESS TIP OF THE WEEK... Grow your network strategically. Decide who you want to meet and why. Then determine how you're going to do it, and what you'll say when you first meet them.
INFO THAT HITS US WHERE WE LIVE ... People were certainly looking at where to place the blame for February's 7.1% drop in Existing Home Sales, to a 5.08 million annual rate. Winter storms in the Northeast did slow down contract signings in January, which lowered February closings. More importantly, housing data can be volatile, month to month. So thank goodness the broader trend in Existing Home Sales keeps going up. The past six months have seen an average 5.27 million annual rate, increasing to 5.33 million the last three months, with sales up 2.2% over last year. Supply is tight, but new homes are going up at the fastest pace since 2007.
Best of all, people are buying those new homes. February saw New Home Sales move up 2.0% for the month, to a 512,000 annual rate, the fourth increase in the last five months. Analysts are putting this to employment gains and a pickup in wage growth, making buying a home within the reach of more people. Buyers have shifted slightly to newly built condos, which aren't counted in the New Home Sales report. The inventory of new single-family homes grew by 4,000 in the month, but is still very low by historical standards. Finally, the FHFA index of homes bought with conforming mortgages was up 0.5% in January and up 6.0% versus a year ago.
BUSINESS TIP OF THE WEEK... Grow your network strategically. Decide who you want to meet and why. Then determine how you're going to do it, and what you'll say when you first meet them.
March 21, 2016
Market Update for Josh Shelton and Friends
QUOTE OF THE WEEK... "The most efficient labor-saving device is still
money." --Franklin P. Jones, American journalist
INFO THAT HITS US WHERE WE LIVE ... Fortunately, last week we got evidence there's more money to be made in the housing market, as Housing Starts zoomed ahead 5.2% in February. That puts them at a 1.178 million unit annual rate, up an impressive 30.9% from a year ago. Single-family starts remain strong, up 37.0% in the past year, reaching their highest level since 2007. Multi-family starts haven't done too badly either, up 18.7% in the last year, with the number of multi-family units under construction at their highest level since the early 1970s. New Building Permits did dip 3.1% in February, although single-family permits are still a healthy 16.8% above a year ago.
The experts say starts should ultimately get to around 1.5 million units per year, so with permits and starts both at the 1.1 million level, there's clearly lots more recovery ahead. The National Association of Home Builders confidence index stayed at 58 in March, indicating more survey respondents are reporting good market conditions. Confidence is in the air, as four out of five current homeowners and individuals making over $50,000 believe now is a good time to buy a home. This is from the National Association of Realtors Housing Opportunities and Market Experience (HOME) survey. Equally encouraging, 56% of survey participants feel now is a good time to sell.
BUSINESS TIP OF THE WEEK... When a challenge appears, don't let the fear of failure cause you to seek ways to avoid it. To overcome a challenge, you first have to meet it head on.
INFO THAT HITS US WHERE WE LIVE ... Fortunately, last week we got evidence there's more money to be made in the housing market, as Housing Starts zoomed ahead 5.2% in February. That puts them at a 1.178 million unit annual rate, up an impressive 30.9% from a year ago. Single-family starts remain strong, up 37.0% in the past year, reaching their highest level since 2007. Multi-family starts haven't done too badly either, up 18.7% in the last year, with the number of multi-family units under construction at their highest level since the early 1970s. New Building Permits did dip 3.1% in February, although single-family permits are still a healthy 16.8% above a year ago.
The experts say starts should ultimately get to around 1.5 million units per year, so with permits and starts both at the 1.1 million level, there's clearly lots more recovery ahead. The National Association of Home Builders confidence index stayed at 58 in March, indicating more survey respondents are reporting good market conditions. Confidence is in the air, as four out of five current homeowners and individuals making over $50,000 believe now is a good time to buy a home. This is from the National Association of Realtors Housing Opportunities and Market Experience (HOME) survey. Equally encouraging, 56% of survey participants feel now is a good time to sell.
BUSINESS TIP OF THE WEEK... When a challenge appears, don't let the fear of failure cause you to seek ways to avoid it. To overcome a challenge, you first have to meet it head on.
March 14, 2016
Market Update
QUOTE OF THE WEEK... "People who think they know everything are a great
annoyance to those of us who do." --Isaac Asimov, American author and
biochemistry professor
INFO THAT HITS US WHERE WE LIVE ... Those who think they know everything about millennials in the housing market may have been surprised by some of the facts revealed in the Home Buyer and Seller Generational Trends report from the National Association of Realtors. The 2016 edition, just released, noted more millennials (defined as age 35 and younger) are buying homes in the suburbs than in urban centers. Millennials also made up the largest share of recent home buyers--35%--for the third year in a row! Millennials don't even have the biggest student debt balances, trailing both Gen X and younger boomer buyers, the latter no doubt still paying for their kids' schooling.
Some interesting data also came from the Mortgage Bankers Association (MBA) Builder Application Survey. To kick off the spring buying season, purchase mortgage applications for new homes shot up 24% in February. New single-family home sales, according to MBA estimates, ran at a seasonally adjusted annual rate of 544,000 units for the month, almost a 12% jump over February 2015. Purchase mortgage applications for all homes rose 4% for the week ending March 4, to their highest level since January. Fannie Mae's National Housing Survey reported that 63% of respondents believe it's a good time to buy a home. Now you know everything too.
BUSINESS TIP OF THE WEEK... There is absolutely no value in comparing yourself to others. Everyone's business grows differently. Why? Because everyone's different. Just keep doing your best.
INFO THAT HITS US WHERE WE LIVE ... Those who think they know everything about millennials in the housing market may have been surprised by some of the facts revealed in the Home Buyer and Seller Generational Trends report from the National Association of Realtors. The 2016 edition, just released, noted more millennials (defined as age 35 and younger) are buying homes in the suburbs than in urban centers. Millennials also made up the largest share of recent home buyers--35%--for the third year in a row! Millennials don't even have the biggest student debt balances, trailing both Gen X and younger boomer buyers, the latter no doubt still paying for their kids' schooling.
Some interesting data also came from the Mortgage Bankers Association (MBA) Builder Application Survey. To kick off the spring buying season, purchase mortgage applications for new homes shot up 24% in February. New single-family home sales, according to MBA estimates, ran at a seasonally adjusted annual rate of 544,000 units for the month, almost a 12% jump over February 2015. Purchase mortgage applications for all homes rose 4% for the week ending March 4, to their highest level since January. Fannie Mae's National Housing Survey reported that 63% of respondents believe it's a good time to buy a home. Now you know everything too.
BUSINESS TIP OF THE WEEK... There is absolutely no value in comparing yourself to others. Everyone's business grows differently. Why? Because everyone's different. Just keep doing your best.
March 7, 2016
Weekly Update
QUOTE OF THE WEEK... "The rule is, jam tomorrow and jam yesterday--but
never jam today." --Lewis Carroll, English writer and mathematician
INFO THAT HITS US WHERE WE LIVE ... What the White Queen offered Alice seems similar to what the media often gives us in their coverage of the housing market. The headlines blared that Pending Home Sales dropped 2.5% in January. This index of contracts signed on existing homes is a forward-looking indicator of those sales, so the media typically reported that rising prices and low inventories continue to impede housing growth. As usual, a deeper look into the facts shows otherwise. First, the decline was made larger because December's number was revised upward. A good thing. Also ignored was the fact Pending Home sales are UP 1.4% from a year ago. Oh.
The National Association of Realtors chief economist felt, "some buyers could be waiting for a hike in listings come springtime." That very well may happen as rising home prices entice more homeowners to sell. Then let's look at how existing home sales began this year, considerably higher than their start in 2015, even with 8.2% annual price gains. Also, home prices aren't too high and inventories aren't too low for the flippers. A major real estate information company reported the number of homes flipped in 2015 was the highest in almost ten years, with the market share of flips scoring its first annual increase in four years. They define a flip as a home that's bought and sold again within 12 months.
BUSINESS TIP OF THE WEEK... A key to business success is simply being a good listener. The better you listen to your customers, the more you can do for them. The more you do for them, the more they'll do for you.
INFO THAT HITS US WHERE WE LIVE ... What the White Queen offered Alice seems similar to what the media often gives us in their coverage of the housing market. The headlines blared that Pending Home Sales dropped 2.5% in January. This index of contracts signed on existing homes is a forward-looking indicator of those sales, so the media typically reported that rising prices and low inventories continue to impede housing growth. As usual, a deeper look into the facts shows otherwise. First, the decline was made larger because December's number was revised upward. A good thing. Also ignored was the fact Pending Home sales are UP 1.4% from a year ago. Oh.
The National Association of Realtors chief economist felt, "some buyers could be waiting for a hike in listings come springtime." That very well may happen as rising home prices entice more homeowners to sell. Then let's look at how existing home sales began this year, considerably higher than their start in 2015, even with 8.2% annual price gains. Also, home prices aren't too high and inventories aren't too low for the flippers. A major real estate information company reported the number of homes flipped in 2015 was the highest in almost ten years, with the market share of flips scoring its first annual increase in four years. They define a flip as a home that's bought and sold again within 12 months.
BUSINESS TIP OF THE WEEK... A key to business success is simply being a good listener. The better you listen to your customers, the more you can do for them. The more you do for them, the more they'll do for you.
February 29, 2016
Market Update
QUOTE OF THE WEEK... "Leap, and the net will appear." --John
Burroughs, American writer and naturalist
INFO THAT HITS US WHERE WE LIVE ... After four years, it's Leap Day once again and some would say it will take a leap of faith to feel good about the market for new homes after last week's dismal report. In January, New Home Sales unexpectedly dropped 9.2%, settling at a 494,000 unit annual rate. This puts them a bit below where they were a year ago. However, one must remember that home sales numbers are volatile month to month, so it's important to look at the trend over time. That continues to be positive, with new home sales closing out 2015 in surprisingly strong fashion. Inventory remains low, although it increased last month to its highest level since October 2009.
It didn't take any leap of faith to feel good about the market for existing homes. After their sharp December rebound, Existing Home Sales kept moving up in January, registering their second fastest sales pace since February 2007. And yes, that was before the economic downturn. Existing Home Sales gained 0.4% last month, putting them at a 5.47 million unit annual rate--11% ahead of where they were a year ago. The November number was down, but that was caused by the new federal TRID regulations, which lengthen the closing process, pushing those sales into December. Many analysts feel the January number is once again a true measure of sales activity and, hey, it's good!
BUSINESS TIP OF THE WEEK... Never lose confidence. Success comes from believing in yourself--from knowing that if you don't give up, you'll eventually succeed.
INFO THAT HITS US WHERE WE LIVE ... After four years, it's Leap Day once again and some would say it will take a leap of faith to feel good about the market for new homes after last week's dismal report. In January, New Home Sales unexpectedly dropped 9.2%, settling at a 494,000 unit annual rate. This puts them a bit below where they were a year ago. However, one must remember that home sales numbers are volatile month to month, so it's important to look at the trend over time. That continues to be positive, with new home sales closing out 2015 in surprisingly strong fashion. Inventory remains low, although it increased last month to its highest level since October 2009.
It didn't take any leap of faith to feel good about the market for existing homes. After their sharp December rebound, Existing Home Sales kept moving up in January, registering their second fastest sales pace since February 2007. And yes, that was before the economic downturn. Existing Home Sales gained 0.4% last month, putting them at a 5.47 million unit annual rate--11% ahead of where they were a year ago. The November number was down, but that was caused by the new federal TRID regulations, which lengthen the closing process, pushing those sales into December. Many analysts feel the January number is once again a true measure of sales activity and, hey, it's good!
BUSINESS TIP OF THE WEEK... Never lose confidence. Success comes from believing in yourself--from knowing that if you don't give up, you'll eventually succeed.
February 16, 2016
Weekly Update
QUOTE OF THE WEEK... "I don't have a bank account because I don't know my
mother's maiden name." --Paula Poundstone, American comedian
INFO THAT HITS US WHERE WE LIVE ... Plenty of people last week were banking on getting a mortgage at today's fine rates, as mortgage applications shot up 12% compared to the previous week, according to the Mortgage Bankers Association (MBA). Their report showed most of the gain came from a new wave of home owners refinancing to latch onto the dropping rates. But the MBA said purchase applications were up too, evidence that home buyers are also taking advantage of the current rate environment. The unadjusted MBA Purchase Index was up 7% over the prior week and is now 25% above where it was the same week a year ago.
The MBA Builder Application Survey delivered more good news. Mortgage applications for new home purchases shot up 14% in January, a nice rebound from December's dip in new home purchases. The average loan size for new homes dropped off a little versus December, but the MBA estimates there were 38,000 new homes sold in January, an 11.8% jump for the month. Based on their data, the MBA estimates new single-family home sales hit a seasonally adjusted annual rate of just under 500,000 units in January. Finally, the National Association of Realtors Metro Home Price report said an average of 89% of measured metro areas experienced home price gains in 2015.
BUSINESS TIP OF THE WEEK... Dream big but set goals. Successful people are overreachers, but they're also disciplined goal setters. Don't let your big vision for the future distract you from hitting the near-term goals that will get you there.
INFO THAT HITS US WHERE WE LIVE ... Plenty of people last week were banking on getting a mortgage at today's fine rates, as mortgage applications shot up 12% compared to the previous week, according to the Mortgage Bankers Association (MBA). Their report showed most of the gain came from a new wave of home owners refinancing to latch onto the dropping rates. But the MBA said purchase applications were up too, evidence that home buyers are also taking advantage of the current rate environment. The unadjusted MBA Purchase Index was up 7% over the prior week and is now 25% above where it was the same week a year ago.
The MBA Builder Application Survey delivered more good news. Mortgage applications for new home purchases shot up 14% in January, a nice rebound from December's dip in new home purchases. The average loan size for new homes dropped off a little versus December, but the MBA estimates there were 38,000 new homes sold in January, an 11.8% jump for the month. Based on their data, the MBA estimates new single-family home sales hit a seasonally adjusted annual rate of just under 500,000 units in January. Finally, the National Association of Realtors Metro Home Price report said an average of 89% of measured metro areas experienced home price gains in 2015.
BUSINESS TIP OF THE WEEK... Dream big but set goals. Successful people are overreachers, but they're also disciplined goal setters. Don't let your big vision for the future distract you from hitting the near-term goals that will get you there.
Subscribe to:
Posts (Atom)