The Kallhoff Team

Friday, October 11, 2013

And the Largest Real Estate Franchiser Is...

DAILY REAL ESTATE NEWS | FRIDAY, OCTOBER 11, 2013

RE/MAX nabbed the title as largest real estate franchisor in the U.S., according to the 2013 Franchise Times Top 200 Franchise Systems rankings.

RE/MAX also came in No. 14 as the largest U.S.-based franchise in any industry in worldwide sales volume, the report found. Franchise Times evaluated 500 U.S.-based franchises’ 2012 sales volumes. Seven residential real estate brands were included in the report.

RE/MAX made headlines last week, raising $225 million in an initial public offering. It has boosted its global sales by about 10 percent -- or $681 million -- from 2011 to 2012, which helped the franchise to jump two spots from its ranking last year, the report notes.

Here is how the real estate franchises stacked up in the 2013 Franchise Times report:

1. RE/MAX
Worldwide sales volume, 2012: $7.4 billion
No. of franchised offices in U.S.: 3,314
Ranking by global sales volume: 14

2. Coldwell Banker
Worldwide sales volume, 2012: $4.5 billion
No. of franchised offices in U.S.: 2,446
Ranking by global sales volume: 26

3. Century 21 Real Estate
Worldwide sales volume, 2012: $4 billion
No. of franchised offices in U.S.: 2,500
Ranking by global sales volume: 28

4. Keller Williams Realty
Worldwide sales volume, 2012: $3.2 billion
No. of franchised offices in U.S.: 647
Ranking by global sales volume: 36

5. Prudential Real Estate
Worldwide sales volume, 2012: $2.7 billion
No. of franchised offices in U.S.: 1,400
Ranking by global sales volume: 45

6. Sotheby’s International Realty
Worldwide sales volume, 2012: $1.2 billion
No. of franchised offices in U.S.: 403
Ranking by global sales volume: 79

7. ERA Real Estate
Worldwide sales volume, 2012: $613 million
No. of franchised offices in U.S.: 571
Ranking by global sales volume: 113

View REALTOR® Magazine’s 2013 Franchise Report to see how 32 different real estate franchise brands stack up.

Source: “Re/Max retains top global real estate franchisor spot,” Inman News (Oct. 9, 2013)

http://realtormag.realtor.org/daily-news/2013/10/11/and-largest-real-estate-franchisor http://www.rebeccasellsaz.com/

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Thursday, October 10, 2013

Why it Might Be Cheaper to Buy Now

DAILY REAL ESTATE NEWS | THURSDAY, OCTOBER 10, 2013

Mortgage rates are nearing the 5 percent mark, prompting many home buyers to rush to take advantage of rates while they’re still low.

“Most people agree it is only a matter of time before rates hit 5 percent,” Peter Grabel, a mortgage loan originator at Luxury Mortgage Corp. in Stamford, Conn., told realtor.com®. “The housing market has clearly turned the corner in most areas. I think a year from now, people will look back and realize that this was a great buying opportunity.”

Some forecasts show rates could edge even higher to 5.5 percent or even 6 percent in 2014. The Federal Reserve has announced that it will soon start tapering its $85 billion monthly bond-purchasing program, which is expected to send mortgage rates rising from recent record lows.

Currently, 30-year fixed-rate mortgages are averaging 4.2 percent, according to Freddie Mac.

In a recent blog post, realtor.com® illustrates the effect of rising mortgage rates on buyers’ pocketbooks:

Example: A buyer gets a 30-year fixed-rate mortgage at a 5 percent interest rate on a $300,000 loan.
Monthly payment: $1,610.46
Total payment: $579,569.69
Total interest: $279,769.69
Example: A buyer gets a 30-year fixed-rate mortgage at 6 percent interest rate on a $300,000 loan.
Monthly payment = $1,798.65
Total payment = $647,515.44
Total interest = $347,515.44

The buyer with a 6 percent interest rate would pay about $67,746 more over the life of a loan than the buyer who was able to get an interest rate at 5 percent.

Source: “Buy a Home Now or Pay More Later?” realtor.com® (Oct. 8, 2013)

http://realtormag.realtor.org/daily-news/2013/10/10/why-it-might-be-cheaper-buy-now

http://www.rebeccasellsaz.com/

Wednesday, October 9, 2013

5 States with High Foreclosures

DAILY REAL ESTATE NEWS | WEDNESDAY, OCTOBER 09, 2013

Foreclosures have fallen by double-digit percentages nationwide, but in a few pockets, foreclosures still remain problematic.

In five states alone, foreclosures accounted for nearly half of all completed foreclosures nationwide. According to CoreLogic’s latest foreclosure report, the following five states had the highest number of foreclosures for the 12 months ending in August:

Florida: 111,000
Michigan: 60,000
California: 58,000
Texas: 43,000
Georgia: 40,000

The following five states had the highest foreclosure inventory as percentage of all homes with a mortgage:

Florida: 7.9%
New Jersey: 6.2%
New York: 4.9%
Maine: 4%
Connecticut: 3.9%

Meanwhile, these five states had the lowest number of completed foreclosures in the past 12 months:

District of Columbia: 94
North Dakota: 463
Hawaii: 492
West Virginia: 501
Wyoming: 723

Source: CoreLogic

http://realtormag.realtor.org/daily-news/2013/10/09/5-states-high-foreclosures

http://www.rebeccasellsaz.com/

Tuesday, October 8, 2013

Survey: Gov’t Shutdown Deflating Housing Optimism

DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 08, 2013

Though Americans have expressed optimism about the housing recovery over the last few months, their feel-good attitudes took a turn for the worse in the run-up to the government shutdown, Fannie Mae reports in its latest National Housing Survey.

"Our September National Housing Survey results show that the improvements in consumer housing attitudes witnessed in recent months softened ahead of the government shutdown," says Doug Duncan, Fannie Mae's senior vice president and chief economist. "Americans' awareness of policy uncertainty leading up to the October 1st shutdown, and the pending debt-ceiling debate, appears to have grown as indicated by an apparent cautionary holding pattern in overall consumer housing and personal finance sentiment."

The percentage of Americans who say they believe home prices will increase over the next 12 months fell from 55 percent in August to 52 percent in September. And 63 percent say they believe mortgage rates will keep rising, and all-time high for the survey and an uptick from 60 percent in August.

Still, 72 percent say it’s a good time to buy a house, and 38 percent say it’s a good time to sell, according to the survey.

Source: “Housing Market Optimism Tempered by Shutdown,” Mortgage News Daily (Oct. 7, 2013)

http://realtormag.realtor.org/daily-news/2013/10/08/survey-gov-t-shutdown-deflating-housing-optimism

http://www.rebeccasellsaz.com/

Monday, October 7, 2013

NAHB Says Housing Will Strengthen in 2014

DAILY REAL ESTATE NEWS | MONDAY, OCTOBER 07, 2013

Despite many headwinds, the housing recovery is expected to pick up in the next year.

“The cards are in play for a decent and fairly strong recovery in 2014 and particularly in 2015,” says David Crowe, chief economist for the National Association of Home Builders. "From the standpoint of GDP growth, housing has been a plus, growing at two, three, and four times the rate of the rest of the economy in recent quarters."

Crowe made the statements during the Fall 2013 Construction Forecast webinar, hosted by NAHB last week. He noted that a double-digit increase in home prices over the past year has helped spur a housing rebound. But Crowe warned that the steep price increases won't last forever.

"We expect to see price increases moderate in the next few years as we see additional inventory on the market and investors back away as the bargains disappear," Crowe said.

The growth in household formations is a bright spot aiding the recovery, economists noted during the webinar. During the recession, household formation growth was delayed as young professionals moved back home with their parents or doubled up with roommates.

During the height of the housing boom, the U.S. was producing 1.4 million additional households each year. However, during the recession, that figure dropped to 500,000 per year. Today, the figure has risen to 700,000.

Still, plenty of challenges remain to the housing recovery, economists note.

"Credit conditions are much tighter now, builders are increasingly facing labor shortages, lot supplies are tight, building material prices are rising, and inaccurate appraisals are hurting home sales." Crowe said. "You can't charge more than you can get an appraisal for. Even though we are seeing price increases in labor, land, and materials, 36 percent of builders recently said they had lost at least one sale over appraisals coming in below the cost of production."

NAHB made some of the following projections in housing starts:

Housing starts in 2013 are projected to reach 924,000—up 18 percent from last year.
Single-family housing starts are expected to rise 17 percent this year and an additional 31 percent next year. NAHB projects that single-family production will surpass the 1 million mark in 2015.
Multifamily starts are expected to rise 20 percent in 2013 and another 10 percent in 2014. Crowe characterized that as a “normal level” of multifamily production.

Source: National Association of Home Builders

http://realtormag.realtor.org/daily-news/2013/10/07/nahb-predicts-stronger-housing-market-in-2014

http://www.rebeccasellsaz.com/

Friday, October 4, 2013

Gov’t Shutdown Pushes Mortgage Rates Down

DAILY REAL ESTATE NEWS | FRIDAY, OCTOBER 04, 2013

As a result of the federal government shutdown and declining consumer confidence, fixed mortgage rates fell for the third consecutive week, Freddie Mac reports, ending at their lowest averages in nearly four months.

Retreating interest rates are generally good news for home buyers, however, the University of Michigan reports that overall consumer sentiment is at its lowest since April.

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 3:

30-year fixed-rate mortgages: averaged 4.22 percent, with an average 0.7 point, dropping from last week’s 4.32 percent average. Last year at this time, 30-year rates averaged 3.36 percent.
15-year fixed-rate mortgages: averaged 3.29 percent, with an average 0.7 point, dropping from last week’s 3.37 percent average. Last year at this time, 15-year rates averaged 2.69 percent.
5-year hybrid adjustable-rate mortgages: averaged 3.03 percent, with an average 0.6 point, dropping from last week’s 3.07 percent average. Last year at this time, 5-year ARMs averaged 2.72 percent.
1-year ARMs: averaged 2.63 percent, with an average 0.4 point, holding the same as last week. A year ago at this time, 1-year ARMs averaged 2.57 percent.

The shutdown is having some impact on federal housing and mortgage programs. The Federal Housing Administration's Office of Single Family Housing is endorsing new loans, however, the IRS is closed and has suspended the processing of all forms, including requests for tax return transcripts. Lenders often require such documentation from mortgage applicants, but some are adopting revised policies during the shutdown that will allow for processing and closings with income verification to follow. Fannie Mae and Freddie Mac have also adopted relaxed provisions on loans requiring a Form 4506T, allowing closings that are subject to tax transcript verification before the GSEs purchase the loans.

A recent Bloomberg survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1 percentage points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer. IHS Inc. estimates that the shutdown is costing the U.S. roughly $300 million per day in lost output.

Source: NAR, Freddie Mac

http://realtormag.realtor.org/daily-news/2013/10/04/gov-t-shutdown-pushes-mortgage-rates-down

http://www.rebeccasellsaz.com/

Thursday, October 3, 2013

Will Hottest Housing Markets Cool in 2014?

DAILY REAL ESTATE NEWS | THURSDAY, OCTOBER 03, 2013

The housing markets that have seen some of the biggest rises in home prices will finish the year strong — then the home-appreciation rates will likely start to cool in 2014, one company predicts.

According to Veros, a predictive technology software company, the top five housing markets seeing appreciation of more than 10 percent this year are Los Angeles, San Diego, San Francisco, San Jose, Calif., and Phoenix. In San Francisco, home prices are expected to rise more than 15 percent this year.

But Eric Fox, Veros' vice president of statistic and economic modeling, said in a webinar sponsored by HousingWire that he expects the pace of price appreciation to slow next year. He projects that the growth of the top five markets will likely slow to around 5 percent in appreciation as those markets work through their supply issues. He says affordability will likely remain high in those markets for the next two years.

Source: “Veros warns housing hot spots won't stay as hot,” HousingWire (Oct. 2, 2013)

http://realtormag.realtor.org/daily-news/2013/10/03/will-hottest-housing-markets-cool-in-2014

http://www.rebeccasellsaz.com/

The Kallhoff Team

Friday, October 11, 2013

And the Largest Real Estate Franchiser Is...

Thursday, October 10, 2013

Why it Might Be Cheaper to Buy Now

Wednesday, October 9, 2013

5 States with High Foreclosures

Tuesday, October 8, 2013

Survey: Gov’t Shutdown Deflating Housing Optimism

Monday, October 7, 2013

NAHB Says Housing Will Strengthen in 2014

Friday, October 4, 2013

Gov’t Shutdown Pushes Mortgage Rates Down

Thursday, October 3, 2013

Will Hottest Housing Markets Cool in 2014?

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