Kenneth Bargers Blog

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It’s Snowing in Nashville, Tennessee…

January 29, 2010 Posted by | photography, tennessee | , , , , | Leave a Comment

LOL Friday: Married Couple – what I meant to say was….

January 29, 2010 Posted by | humor | , , , , | Leave a Comment

The 10 Most Undervalued Housing Markets

Nationwide, only 87 markets are in the overvalued category, according to a newly released 2010 report compiled by IHS Global Insight and PNC Financial Services.

That means 242 of the 299 largest U.S. housing markets are selling for prices that even bankers think are less than fair market value. The judgment is based on a comparison of median home prices, local interest rates, population densities and income, plus historic premiums or discounts.

Here are the 10 most undervalued areas, according to the study: 

  1. Las Vegas, -41.4 percent
  2. Vero Beach, Fla., -39.8 percent
  3. Merced, Calif., -37.7 percent
  4. Cape Coral, Fla., -36.8 percent
  5. Houma, La., -34.6 percent
  6. Port St. Lucie, Fla., -33.3 percent
  7. Warren, Mich., -32.3 percent
  8. Vallejo, Calif., -31.9 percent
  9. Modesto, Calif. -31.8 percent
  10. Stockton, Calif., -31.8 percent

Source: CNNMoney, Les Christie (01/27/2010)

January 28, 2010 Posted by | economy, real estate | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment

Open House This Sunday in Echo Subdivision of Franklin, Tennessee

Please view listing information sheet for details!

January 27, 2010 Posted by | open house, real estate | , , , , , , , , , , , , , | Leave a Comment

Ten Inexpensive Ways to Wow Buyers

Now is the time for home owners contemplating a spring sale to spruce up their properties in anticipation of what Mike Larson of Weiss Research calls a potentially vibrant home-selling season. “If you have been beating your head against a wall, this is going to feel a lot better,” he jokes.

    Here are 10 cheap ways to make a property more attractive to shoppers.

1. Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
2. Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
3. Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
4. Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
5. Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
6. Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
7. Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits.
8. Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
9. Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
10. Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.

Source: U.S. News & World Report, Luke Mullins (01/21/2010)

January 27, 2010 Posted by | home maintenance, real estate | , , , , , , , , , , , , , , | Leave a Comment

Market Comment for the Week of January 25th

MARKET COMMENT  Mortgage bond prices rose last week pushing mortgage interest rates lower. The bond market rallied following crumbling stocks as the DOW fell 213 points Thursday. Weekly jobless claims came in higher than expected causing unemployment fears to cast a shadow over the state of the economy. In a consumer based economy it is difficult for people to spend money without a job. The producer price index was mixed as the headline figure was higher than expected but the core was lower than expected. For the week interest rates fell by about 1/4 of a discount point.

The Fed meeting Wednesday will be the most important event this week. The Treasury will continue the record auctions with 2-year notes on Tuesday, 5-year notes on Wednesday, and 7-year notes on Thursday. If foreign demand remains decent rates should hold near current levels. However, a drop in foreign demand will likely cause rates to head higher.

LOOKING AHEAD

Economic
Indicator		 Release
Date and Time		 Consensus
Estimate		 Analysis
Existing Home Sales Monday,
Jan. 25,
10:00 am, et		 Down 8.3% Low importance. An indication of mortgage credit demand. A significant decrease may lead to lower rates.
Consumer Confidence Tuesday,
Jan. 26,
10:00 am, et		 52.9 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
New Home Sales Wednesday,
Jan. 27,
10:00 am, et		 Up 1.9% Important. An indication of economic strength and credit demand. A decrease may lead to lower rates.
Fed Meeting Adjourns Wednesday,
Jan. 27,
2:15 pm, et		 No rate adjustment Important. Few expect the Fed to change rates, but some volatility may surround the adjournment of this meeting.
Durable Goods Orders Thursday,
Jan. 28,
8:30 am, et		 Up 2.0% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
Q4 Advance GDP Friday,
Jan. 29,
8:30 am, et		 Up 4.5% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
Q4 Employment Cost Index Friday,
Jan. 29,
8:30 am, et		 Up 0.4% Very important. A measure of wage inflation. Weakness may lead to lower rates.
U of Michigan Consumer Sentiment Friday,
Jan. 29,
10:00 am, et		 73.0 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

FED FOCUS  The United States central bank, the Federal Reserve, coordinates the borrowing and lending activities of federally chartered banks. The principal reason the Federal Reserve was created was to reduce severe financial crises. One way of accomplishing this goal is to control the amount of money that flows through the economy. By manipulating the US money supply, the Fed influences inflation, unemployment, and the level of US economic activity. The Fed has a variety of tools that it uses to control the money supply, but its chief policy tool is the manipulation of short-term interest rates.

All eyes will be focused on the Federal Open Market Committee meeting Wednesday. No rate changes are expected. However, many analysts and traders believe rate hikes are on the horizon. Futures contracts show traders are pricing in a 77% chance the Fed will raise rates by November. Others argue those positions will be wrong because the economy isn’t strong enough for the Fed to change rates.

A cautious approach to float/lock decisions is prudent heading into the Fed meeting this week. Be prepared for potential market volatility.

Source:  Courtesy of Todd Kabel, US Bank, Nashville, Tennessee

January 25, 2010 Posted by | economy, real estate | , , , , , , , , , , , , , , , , , , | Leave a Comment

Tax Credit Encourages Buyers to Shop Early

The homebuying season is starting early this year, thanks to the expanded first-time and move-up homebuyer tax credit.

Typically, the busiest time for home shopping starts in March and continues through May, but this year buyers who want to take advantage of the tax credits have to have a signed contract by April 30 and close the deal by June 30.

That is getting people off the couch.

“The tax credit will absolutely have an effect,” says Pete Flint, CEO of residential real estate search engine Trulia.com. “It is going to shift demand from the later part of the year to the first part. January and February will be very strong. The next three months, there will be a surge in demand.”

Source: USA Today, Stephanie Armour (01/20/2010)

January 22, 2010 Posted by | real estate | , , , , , , , , , , , , , , , | Leave a Comment

Mortgage Applications Up as Rates Slip

Mortgage application volume increased 9.1 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association. 

On an unadjusted basis, the index rose 10.4 percent, but was down 52.3 percent compared with the same week a year ago.

Much of the decline compared to the previous year pertained to refinances. The unadjusted purchases index increased 9.8 percent compared to the previous week and was down 19.1 percent from a year ago.

Interest rates decreased last week: 

  • 30-year fixed-rate mortgages decreased to 5.00 percent from 5.13 percent.
  • 15-year fixed-rate mortgages decreased to 4.33 percent from 4.45 percent.
  • 1-year ARMs decreased to 6.72 percent from 6.83 percent.

Source: Mortgage Bankers Association (01/20/2010)

January 21, 2010 Posted by | real estate | , , , , , , , , , , , , , | Leave a Comment

Increase Appeal by Adding a Little Green

Eco-friendly homes are hot these days, and one way to make a property more saleable is to add a little green.

Real estate Web site HomeGain asked about 1,000 real estate practitioners to recommend low-cost green improvements. Here are some of their suggestions:

  • Plant native trees and plants
  • Replace air filters
  • Weather-strip and caulk doors and windows
  • Install programmable thermostats
  • Install low-flow showerheads
  • Install CFL or LED lights
  • Repaint with low VOC (volatile organic compound) paint

Source: USA Today (01/14/2010)

January 20, 2010 Posted by | home maintenance, real estate | , , , , , , , , , , , , , , , , , , , , | Leave a Comment

Market Comment for Week of January 18th…

MARKET COMMENT

Mortgage bond prices rose last week pushing mortgage interest rates lower. The bond market rallied nicely Tuesday following moves by China to curb growth. Oil prices fell almost immediately providing a much-needed reprieve following the recent run up in prices tied to severe cold weather across the US. The consumer price index data showed tame inflation, which also helped rates improve.

For the week interest rates fell by about 1/2 of a discount point.

The inflation data Wednesday will be the most important economic release this week. Signs of stronger than expected inflation would not be good for mortgage interest rates. The bond market is closed Monday in honor of the Martin Luther King holiday. Interest rates may be volatile Tuesday as trading resumes following the extended holiday weekend.

LOOKING AHEAD

Economic
Indicator		 Release
Date and Time		 Consensus
Estimate		 Analysis
Producer Price Index Wednesday,
Jan. 20,
8:30 am, et		 Unchanged,
Core up 0.2%		 Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates.
Housing Starts Wednesday,
Jan. 20,
8:30 am, et		 Up 1.0% Important. A measure of housing sector strength. Weakness may lead to lower rates.
Weekly Jobless Claims Thursday,
Jan. 21,
8:30 am, et		 445k Moderately Important. An indication of employment. Higher figures may result in lower rates.
Leading Economic Indicators Thursday,
Jan. 21,
8:30 am, et		 Up 0.5% Important. An indication of future economic activity. Weakness may lead to lower rates.
Philadelphia Fed Survey Thursday,
Jan. 21,
8:30 am, et		 18.2 Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.

LEI

The index of leading economic indicators (LEI) is a weighted average of eleven economic variables that “lead” the business cycle. It is constructed for forecasting future aggregate economic activity. The eleven variables that make up the LEI measure workers’ hours, initial unemployment claims, new factory orders, vendor performance, contracts and orders for plant and equipment, new housing permits, changes in unfilled orders, prices of raw materials, stock prices, money supply and consumer expectations.

Each of the variables that comprise the index has a tendency to predict (or lead) economic activity. For example, new orders for manufactured goods, new orders for plant and equipment, and new building permits are all direct measures of the amount of future production being planned for the economy.

Analysts monitor the LEI in an effort to predict future economic growth. When the LEI report is up, mortgage market participants expect credit demand to increase and inflationary pressures to build. Thus, when the LEI report is rising, interest rates tend to rise as well.

The LEI report is a valuable forecasting device that correctly predicts most economic turning points. The percentage change in the LEI is reported monthly and is an indication of the activity that will occur within the next three to six months. The LEI tends to turn down before peaks in the business cycle. Continuous declines are generally accepted as evidence that a recession continues.

Nine of the eleven components that make up this index are known before the release of the report, so the index is easy for economists to predict. Thus, although this is important predictive data for market participants, surprises are not common with the release of this data.

Source: Courtesy of Todd Kabel, US Bank, Nashville TN

January 18, 2010 Posted by | economy, real estate | , , , , , , , , , , , , , , , , , , | Leave a Comment

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