Thursday, June 26, 2014

New-Home Sales Surge Nearly 19%

DAILY REAL ESTATE NEWS | WEDNESDAY, JUNE 25, 2014
After a sluggish start to 2014, new-home sales posted a strong rebound in May. Sales of newly built single-family homes soared to the highest rate since May 2008, jumping 18.6 percent last month, according to data released Tuesday by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The Good News Has Been Building
"This increase is a welcome sign after a slow start to 2014," says David Crowe, chief economist of the National Association of Home Builders. "As job creation continues, we can expect further release of pent-up demand and continued gradual growth in the housing recovery."
Across the country, regions posted big gains in new-home sales, with the Northeast leading the pack. Sales of new-homes jumped 54.5 percent in the Northeast, 34 percent in the West, 14.2 percent in the South, and 1.4 percent in the Midwest.
Inventory levels mostly stayed flat, as builders continue to be cautious about overbuilding. The inventory of new homes for sale held steady at 189,000 units in May, representing a 4.5-month supply at the current sales pace.



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Tuesday, June 24, 2014

First-Timers: Take a Class, Save on Your Loan

DAILY REAL ESTATE NEWS | MONDAY, JUNE 23, 2014
The Federal Housing Administration will be ending its public comment period  in mid-August on a proposed program that would allow first-time home buyers to get a discounted mortgage if they enroll in housing counseling classes.
The program, called Homeowners Armed with Knowledge (HAWK), was announced last month by the FHA as way to curtail home buyers' mortgage insurance premium costs. FHA is operating under the assumption that the more borrowers understand about home ownership, the less likely they are to default on their loans, thereby decreasing their lending risk.
To be eligible for the discount, borrowers must take several courses before and after closing. FHA says consumers could save an average of $325 a year or nearly $10,000 over the life of the loan.
“It may not seem like it, but $10,000 is a lot of savings for a $30,000-a-year household,” says Kimber White, state government affairs chairman for the Florida Association of Mortgage Professionals. “It can make the difference between qualifying or not qualifying to buy a home.”
The courses will be taught by agencies approved by the U.S. Department of Housing and Urban Development. FHA hopes that borrowers will be able to apply for the program by the end of the year.



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10 States Ready for the New Economy

DAILY REAL ESTATE NEWS | MONDAY, JUNE 23, 2014
Which states are poised to fare the best in the “new economy?” According to the Information Technology and Innovation Foundation (ITIF), the “new economy” is marked by “globalization, technological innovation, and entrepreneurial development.” And often, booming economies lead to booming housing markets.
Find out how Fannie Mae seesthe "new normal" for the housing industry.
To determine a state's potential success in the new economy, ITIF used 25 indicators among five categories (knowledge jobs, globalization, economic dynamism, the digital economy, and innovation capacity). The following 10 states were at the top of ITIF’s list:
  1. Massachusetts
  2. Delaware
  3. California
  4. Washington
  5. Maryland
  6. Colorado
  7. Virginia
  8. Connecticut
  9. Utah
  10. New Jersey
Source: “The Best and Worst States for the New Economy,” Forbes.com (June 17, 2014)



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Friday, June 20, 2014

6 Housing Markets Surged to All-Time Highs

DAILY REAL ESTATE NEWS | FRIDAY, JUNE 20, 2014
The housing market is bouncing back strong in some areas of the country. In fact, some markets have soared to new record highs.
For example, home prices in Jefferson County, Ky., were 63 percent higher in March 2014 than they were in 2007, according to an analysis by 24/7 Wall St., using RealtyTrac housing data.
Middle America tends to have most of the counties that have fared the best post-housing crisis, mostly because home prices there did not fall as great or fluctuate as much as some other markets during the housing bubble. But these markets now soaring to new highs need to make sure they don’t outpace salary growth, says Daren Blomquist, vice president at RealtyTrac. When home prices start to outpace incomes, there is cause for concern, Blomquist says. According to RealtyTrac and 24/7 Wall St.’s analysis, homes in half of the counties that have appreciated the most were valued at more than four times the estimated median household income for 2014.
The following are the counties that have recovered the most since the housing crisis, according to 24/7 Wall St.
Current home price trends:
1. Jefferson County, Ky.
Home price percent change compared to 2007-2008: 63.1%
Average price (as of March 2014): $160,000
2. Delaware County, Pa.
Home price percent change compared to 2007-2008: 54.9%
Average price: $295,000
3. Buchanan County, Mo.
Home price percent change compared to 2007-2008: 41.1%
Average price: $139,450
4. Marion County, Ind.
Home price percent change compared to 2007-2008: 39.4%
Average price: $116,000
5. Henderson County, Texas
Home price percent change compared to 2007-2008: 30.2%
Average price: $192,500
6. Johnson County, Iowa
Home price percent change compared to 2007-2008: 25.5%
Average price: $192,000
Source: “Eight Housing Markets at All-Time Highs,” 24/7 Wall St. (June 17, 2014)




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15 Healthiest Counties for Children

DAILY REAL ESTATE NEWS | THURSDAY, JUNE 19, 2014
The Northeast has some of the healthiest areas for kids in the U.S., according to a new study that evaluates health data of children across the country.
Stay Healthy
In conjunction with U.S. News & World Report, the University of Wisconsin Population Health Institute and the Robert Wood Johnson Foundation recently released the 2014-2105 rankings of America’s 50 Healthiest Counties for Kids. The groups conducted a county-level assessment of health and environmental factors that affect the well-being of children younger than 18. The factors they weighed in their rankings included items like fewer low-birth-weight babies and infant deaths, as well as the number of children with health insurance, the air quality, and access to medical care in a county.
The following are the top 15 counties that landed on this year’s Healthiest Counties for Kids:
  1. Marian County, Calif.
  2. Norfolk County, Mass.
  3. Hunterdon County, N.J.
  4. Chittenden County, Vt.
  5. Nassau County, N.Y.
  6. San Francisco County, Calif.
  7. Middlesex County, Mass.
  8. Somerset County, N.J.
  9. Morris County, N.J.
  10. Bergen County, N.J.
  11. San Mateo County, Calif.
  12. Hampshire County, Mass.
  13. Howard County, Md.
  14. Ozaukee County, Wis.
  15. Westchester County, N.Y.
Source: “America’s 50 Healthiest Counties for Kids,” U.S. News & World Report (June 16, 2014)



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Tuesday, June 17, 2014

Selling AZ With Rebecca : You Don't Need That Much of a Down Payment

Selling AZ With Rebecca : You Don't Need That Much of a Down Payment: DAILY REAL ESTATE NEWS | TUESDAY, JUNE 17, 2014 Many consumers are overestimating  the down payment they need in order to purchase a ho...
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You Don't Need That Much of a Down Payment

DAILY REAL ESTATE NEWS | TUESDAY, JUNE 17, 2014
Many consumers are overestimating  the down payment they need in order to purchase a home, according to Christina Boyle, vice president and head of single-family sales at Freddie Mac.
Consumers believe they need 11 percent to 15 percent in order for lenders to approve them for a loan, according to a survey of renters and non-home-owners conducted by Zelman & Associates in New York. Thirty-nine percent say they need at least 15 percent of the purchase price in order to qualify for financing. Only 28 percent of respondents say they would even qualify for a mortgage.
But in reality, home buyers often can qualify for a conforming, conventional mortgage with a down payment of as little as 5 percent — and sometimes even 3 percent — Boyle writes. Between 2009 and 2013, Freddie Mac’s purchases of mortgages with down payments of less than 10 percent more than quadrupled. So far in 2014, more than one in five borrowers who took out conforming, conventional mortgages put down 10 percent or less.
“Letting more consumers know how down payments are determined could bring more qualified borrowers off the sidelines,” Boyle writes. “Depending on their credit history and other factors, many borrowers can expect to make a down payment of about 5 percent or 10 percent.” However, Boyle notes that any borrower who puts down less than 20 percent will be required to buy mortgage insurance.
Boyle says that buyers should also be encouraged by the abundant down-payment assistance programs that exist to help break into home ownership. Every state in the U.S., as well as many cities and counties, offer down-payment assistance programs for qualified borrowers, such as the American Dream Downpayment Initiative and HOME Investment Partnerships Program.
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