Archive for March 2011
Real Estate Web Site Traffic Jumps 27%
Traffic to real estate Web sites increased 27 percent in February–the highest level since the first half of 2009. A bigger appetite for rentals has mostly driven the increase in real estate site traffic, according to a webinar by Experian Hitwise, in which it released its search tracking data.
The Web sites boasting the largest year-over-year increases in traffic were devoted to rental or rent-to-own listings, says Heather Dougherty, research director at Hitwise.
Also, traffic coming from social networks to real estate sites increased 61 percent year-over-year in February. Traffic to real estate sites from Facebook increasing 42 percent alone. Social networks now account for 4 percent of the overall traffic to real estate Web sites, Dougherty notes. The largest year-over-year increases in social media traffic last month were Yahoo! Real Estate, Trulia, Zillow, and Realtor.com.
The following are the 10 most popular search terms on real estate sites in the last year, according to Hitwise:
1. “rent to own homes”
2. “rent to own”
3. “foreclosure”
4. “for rent by owner”
5. “puerto rico real estate”
6. “houses for rent in orlando”
7. “apartments for rent in michigan”
8. “low income apartments”
9. “houses for rent by owner”
10. “reverse mortgage”
Source: “Rental Interest Drives Real Estate Search Traffic,” Inman News (March 25, 2011); Blog distribution provided by Kenneth Bargers and Bargers Solutions residential real estate services located in Nashville, Tennessee
Written by kbargers
March 25, 2011 at 3:13 pm
Posted in real estate
Tagged with bargers solutions, blog, experian hitwise, facebook, february 2011, heather dougherty, home buying, home selling, housing, increased internet traffic, inman news, internet traffic for real estate, kenneth bargers, march 2011, Nashville, real estate websites, realtor.com, rent to own, rentals, residential real estate services, survey, tennessee, trulia, yahoo real estate, zillow
Market Comment for Week of March 21, 2011…
MARKET COMMENT Mortgage bond prices rose last week helping mortgage interest rates improve. Flight to safety buying of US debt instruments helped rates improve as the Japanese stock market struggled. Oil prices eased a bit early in the week. However, clashes in Saudi Arabia Thursday sent prices back above $100/barrel. Core inflation readings remained relatively in check however the headline figures exceeded expectations. The Fed’s recent statement noted “short-term” increases in food and energy prices but indicated the spikes are not expected to spill over to the core. Despite the mixed data mortgage bonds ended the week better by about 1/4 of a discount point.
The weekly jobless data and Treasury auction will receive a lot of attention this week amid continued global economic uncertainty.
LOOKING AHEAD
• Existing Home Sales; March 21; Consensus Estimate Down 6%, 5.05M; Low importance. An indication of mortgage credit demand. Significant weakness may lead to lower rates.
• New Home Sales; March 23; Consensus Estimate Unchanged, 288k; Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
• Weekly Jobless Claims; March 24; Consensus Estimate 384k; Important. An indication of employment. Higher claims may result in lower rates.
• Durable Goods Orders; March 24; Consensus Estimate Up 0.8%; Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
• 10YR TIPS Treasury Note Auction; March 24; Important. $11 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
• Q4 GDP 3rd estimate; March 25; Consensus Estimate 2.9%; Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
• U of Michigan Consumer Sentiment; March 25; Consensus Estimate 68; Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
EXISTING HOME SALES The National Association of Realtors releases existing home sales data near the end of each month. The data is derived from a sampling of MLS data across the nation. The release shows the current sales rate for existing single-family, coops, and condos. A national figure and 4 regional figures are provided. The NAR Chief Economist indicated in February the current methodology used to calculate the benchmarks will be revised in the near future. There is no timetable for the revision.
The housing market is a critical component of the US economy. A house is usually one of the largest assets a consumer owns. Housing usually leads market recoveries. Unfortunately the housing industry remains in transition as the effects of massive foreclosures still weigh heavily. Most analysts agree that the housing market will remain wobbly for some time. The important thing to remember is that housing is a “local” issue. The maxim about housing being strongly tied to “location, location, location” still holds true. The overall housing market shows signs of trouble while there are areas that don’t follow the overall trend.
While the data usually isn’t a big market mover it still has the potential to result in some market volatility. The release usually includes remarks from the Chief Economist regarding prices, inventory, and interest rates.
Source: Todd Kabel, F&M Mortgage; Blog distribution provided by Kenneth Bargers and Bargers Solutions residential real estate services located in Nashville, Tennessee
Written by kbargers
March 21, 2011 at 10:18 am
Posted in economy, real estate
Tagged with bargers solutions, current market conditions, economic report, existing home sales, f&m mortgage, housing market, kenneth bargers, march 2011, market comment, mortgage bond prices, mortgage interest rates, Nashville, new home construction, new home sales, real estate agent, realtor, residential real estate services, tennessee, todd kabel, treasury auctions, us debt
Special Price Incentive for Sunday’s Open House in Barnes Crossing!
Written by kbargers
March 17, 2011 at 9:44 am
Posted in Nashville, open house, real estate, tennessee
Tagged with 1708 red jacket drive, antioch, bargers solutions, barnes crossing, condo, home buying, home selling, kenneth bargers, march 2011, middle tennessee, Nashville, open house, prudential woodmont realty, real estate agent, realtor, sunday, tennessee, townhome
Beautiful Center Hill Lake Property for All Seasons!
Written by kbargers
March 17, 2011 at 9:38 am
Posted in real estate, tennessee
Tagged with tennessee, Nashville, Brentwood, kenneth bargers, home for sale, prudential woodmont realty, bargers solutions, middle tennessee, home buying, realtor, residential real estate, vacation home, lake home, Smithville, Center Hill Lake, retreat, real estate agent, investment home
Survey: Buyers, Sellers Optimistic About Housing
Nearly 70 percent of buyers and sellers say they believe the housing market and property values will recover in the next year or two, according to a new survey by Prudential Real Estate and Relocation Services Inc.
What’s more, 86 percent of the more than 1,000 buyers and sellers surveyed believe real estate is still a good investment despite the souring market conditions in many areas the past few years.
Those surveyed said they also are ready to buy: Six in 10 respondents say they are more interested in buying real estate and 59 percent say they are optimistic about buying now with recent momentum from the economic recovery. They also believe they can get a better deal now because of lower prices.
But many survey respondents said that buying a home relies on them being able to sell their existing home. About 67 percent respondent said they are concerned about getting a fair price for their existing home.
“This survey clearly demonstrates that Americans continue to be optimistic about the real estate market and believe that home prices will rise,” says James Mallozzi, chief executive officer of Prudential Real Estate and Relocation Services. “A key take away from the survey is although consumers recognize that it is a good time to buy, they are concerned about their ability to sell their homes. This is one of the reasons the market is still struggling to recover.”
Source: “Americans Confident in Recovery of Real Estate Market,” RISMedia (March 14, 2011); Blog distribution provided by Kenneth Bargers and Bargers Solutions residential real estate services located in Nashville, Tennessee
Written by kbargers
March 15, 2011 at 8:43 am
Posted in economy, real estate, surveys
Tagged with bargers solutions, blog, current market conditions, home buying, home selling, housing market, james mallozzi, kenneth bargers, march 2011, Nashville, optimism, prudential real estate and relocation services, real estate agent, realtor, residential real estate services, rismedia, survey, tennessee
Market Comment for Week of March 14, 2011…
MARKET COMMENT Mortgage bond prices rose last week helping mortgage interest rates improve. The US Treasury auctions generally showed decent foreign demand for US debt instruments. Oil prices fluctuated which continued to cause market volatility. Weekly jobless claims came in higher than expected which sent mortgage interest rates lower as stocks struggled. Retail sales came in as expected while the inflation component of the Michigan consumer sentiment survey shocked to the upside. Despite the mixed data mortgage bonds ended the week better by about 1/2 of a discount point.
The Fed meeting Tuesday will take center stage this week and set the tone for the days ahead. The inflation data that follows has the real potential to cause mortgage interest rate volatility.
LOOKING AHEAD
- Fed Meeting Adjourns; March 15; Consensus Estimate No rate change; Important. Few expect a rate change, but some volatility may surround the adjournment of the meeting.
- Housing Starts; March 16; Consensus Estimate 550k; Important. A measure of housing sector strength. Weakness may lead to lower rates.
- Producer Price Index; March 16; Consensus Estimate Up 0.6%, Core up 0.2%; Important. An indication of inflationary pressures at the producer level. Lower figures may lead to lower rates.
- Weekly Jobless Claims; March 17; Consensus Estimate 380k; Important. An indication of employment. Higher claims may result in lower rates.
- Consumer Price Index; March 17; Consensus Estimate Up 0.4%, Core up 0.1%; Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
- Industrial Production; March 17; Consensus Estimate Up 0.6%; Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
- Capacity Utilization; March 17; Consensus Estimate 76%; Important. A figure above 85% is viewed as inflationary. Weakness may lead to lower rates.
- Leading Economic Indicators; March 17; Consensus Estimate Up 0.4%; Important. An indication of future economic activity. A smaller increase may lead to lower rates.
- Philadelphia Fed Survey; March 17; Consensus Estimate 35; Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
PRODUCER PRICE INDEX The producer price index is a measure of prices at the producer level and is important because it is the first inflation report to be released each month. Investors are typically able to gain an initial indication of inflationary pressures from the release. If producer prices are increasing, there is a tendency for producers to pass the increases on to consumers in the form of higher priced goods. It is important to note that the PPI is only a measure of goods, while the consumer price index is a measure of goods and services. It is possible for the price of goods to remain stable, while the price of services increases. In this scenario PPI would do little to warn of a change in inflationary pressures, while the CPI report would provide an indication of the inflationary effects of the service component. This distinction between the two reports shows why most analysts view the CPI as a more accurate indicator of inflation. Nevertheless, market participants still gain valuable insight into potential volatility in the financial markets from the PPI release. Be cautious heading into the inflation data this week.
Source: Todd Kabel, F&M Mortgage; Blog distribution provided by Kenneth Bargers and Bargers Solutions residential real estate services located in Nashville, Tennessee
Written by kbargers
March 14, 2011 at 2:08 pm
Posted in economy, real estate
Tagged with bargers solutions, blog, capacity utilization, consumer price index, cpi, current market conditions, f&m mortgage, housing starts, industrial production, kenneth bargers, leading economic indicators, market comment, mortgage bond prices, mortgage interest rates, Nashville, philadelphia fed survey, ppi, producer price index, real estate agent, realtor, tennessee, todd kabel, us treasury auctions, weekly jobless claims
Mortgage Purchase Activity at Highest of Year
Mortgage applications for purchases rose to their highest level of the year last week, the Mortgage Bankers Association reports. Purchase applications for mortgages increased 12.5 percent from one week earlier, and on an unadjusted basis, purchase application activity is the highest since last May.
“An improving job market is beginning to pave the way for an improving housing market,” says Michael Fratantoni, MBA’s vice president of research and economics. “Additionally, mortgage interest rates remained below 5 percent for a second week, maintaining affordability for buyers and leading to an increase in refinance applications.”
Refinancings also were on the rise last week, increasing 17.2 percent from one week prior. It was the highest the Refinance Index had been in over a month.
Overall, mortgage applications increased 15.5 percent on a seasonally adjusted basis for the week ending March 4, compared to one week prior, according to MBA.
Source: “Mortgage Applications Increase in Latest MBA Weekly Survey,” Mortgage Bankers Association (March 9, 2011); Blog distribution provided by Kenneth Bargers and Bargers Solutions residential real estate services located in Nashville, Tennessee
Written by kbargers
March 10, 2011 at 8:08 am
Posted in economy, real estate
Tagged with bargers solutions, blog, current market conditions, home buying, kenneth bargers, march 2011, michael fratantoni, mortgage activity, mortgage applications, mortgage bankers association, Nashville, purchase applications, refinance applications, residential real estate services, tennessee
Top 5 (and more) Thriving Second-Home Markets
Home prices in second home markets are on the rebound, climbing more than 10 percent last year in some places, Barron’s online reports.
Barron’s recently released a list of its top picks for second-home markets that are likely to see a big rebound in sales and price soon.
- Sea Island, Ga.: Located along Georgia’s coastline, this market saw prices plunge by a third last year, but its housing market is on the mend with sales volume picking up and prices expected to soon follow. Median Home Price 2009: $3.3 million; Median Home Price 2010: $2.3 million
- Maui, Hawaii: Following two years of a decrease in sales, Maui home sales are starting to picking up, particularly in the towns of Wailea and Makena, which have had sales volumes increase 35 percent last year. Median 2009: $1.5 million; Median 2010: $1.7 million
- Hamptons, N.Y.: Prices in this popular second-home destination, which can fluctuate largely depending on what’s happening on Wall Street, are steadying and sales are starting to increase. Median 2009: $1.5 million; Median 2010: $1.6 million
- Aspen, Colo.: The Aspen market is more affordable than during its peak in 2008, but deals aren’t expected to last much longer. For example, in Red Mountain, sales volume doubled last year and prices rose 14 percent. Median 2009: $9.5 million; Median 2010: $10.8 million
- Martha’s Vineyard, Mass.: This second-home market has become a popular international destination, and modest summer homes quickly are being replaced by luxury mansions. Median 2009: $1.34 million; Median 2010: $1.35 million
View Barron’s full list of Top 15 best second home markets.
Source: “Best Places for Second Homes,” Barron’s Online (March 7, 2011); Blog distribution provided by Kenneth Bargers and Bargers Solutions residential real estate services located in Nashville, Tennessee
Written by kbargers
March 9, 2011 at 7:45 am
Posted in real estate
Tagged with aspen, bargers solutions, barron's, best places, blog, hamptons, kenneth bargers, martha's vineyard, maui, Nashville, real estate agent, realtor, rebound, residential real estate services, sea island, second home markets, tennessee, top picks, vacation homes
Popular Kitchen Remodeling Trends
Remodeling kitchen trends are creating stylish kitchens with cleaner lines, built-in dining, and pops of color, according to a recent article in RISMedia.
Here are some recent trends in kitchens across the country.
- Built-in dining areas. Eat-in kitchens are in high demand as more remodelers are opting for extensions in counters that resemble a table, either in lower or higher height to the countertop. The counter extension is different than bar seating because diners can sit around the edge and face one another, and not just sit in a row. The counter extension saves space, offers an extra buffet service, and more kitchen storage, says Deanna Carleton of Kitchen Design Group.
- Dressing up the kitchen with lighting. An affordable way to upgrade a kitchen is just by switching out the lights, designers say. For example, hand-blown glass shades on pendant lights, contemporary drum shades, and chandeliers can quickly update a kitchen. Layers of light continue to be popular, such as with a ceiling lighting fixture combined with under-counter lighting as well as ambient lights behind a glass-front door, designers say. LED under-counter lighting and LED recessed ceiling lights are also popular.
- Pops of color. Neutral colors in the kitchen is the safe preference, but more kitchens are adding bolder pops of color–such as in persimmon or pomegranate–to spice up the kitchen. Colored knobs, kitchen accessories, and even appliances are bringing in these pops of color. Designers say pops of color can also be brought in by the fabric choice in kitchen window seats, the upholstered seats, or window valances.
- Striving for simplistic luxury. Clean lines and transitional designs are “in” while ornate Tuscan and French country kitchen styles are falling out of favor in the kitchen. Betty Nairn of Cabinet-S-Top in Granger Township, Ohio, says “simplistic luxury” is the kitchen trend nowadays.
Source: “8 Areas to Pay Attention to When Updating Your Kitchen,” RISMedia (March 5, 2011); Blog distribution provided by Kenneth Bargers and Bargers Solutions residential real estate services located in Nashville, Tennessee
Written by kbargers
March 9, 2011 at 7:33 am
Posted in home remodel, real estate
Tagged with bargers solutions, blog, kenneth bargers, kitchen remodel, kitchen update, Nashville, real estate agent, realtor, residential real estate services, rismedia, tennessee, trends
Market Comment for Week of March 28, 2011…
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MARKET COMMENT Mortgage bond prices fell last week pushing mortgage interest rates higher. Stocks generally showed strength throughout the week, which didn’t help mortgage bonds. Reports of Japan stabilizing their nuclear facilities resulted in a reversal of the earlier flight to quality buying of US debt. New home sales data came in weaker than expected which helped rates bounce back a bit mid-week. Unfortunately Fed Official Plosser’s comments Friday afternoon sent bonds falling and rates higher. Plosser indicated monetary policy will soon need to reverse course and that the preferred exit strategy would raise rates and reduce the Fed’s balance sheet concurrently. Mortgage bonds ended the week worse by about 3/4 of a discount point.
The Treasury will auction 2-year notes on Monday, 5-year notes on Tuesday, and 7-year notes on Wednesday.
LOOKING AHEAD
INCOME & OUTLAYS The personal income and outlays release is a monthly report issued by the Bureau of Economic Analysis (BEA). The data is important because it is thought to provide a solid indication of future consumer demand. The personal income component is primarily a measure of wages and salaries. The outlays component is primarily a measure of spending on goods and services. Together the figures provide analysts valuable insight into consumer economic standing and consumption.
The prior release showed an increase in wages and salaries. Some of that was attributed to a cut in the payroll tax. If that trend reverses future weakness could adversely affect consumer spending and the entire US economy. Decreased or stagnant wages coupled with tighter borrowing restrictions make it difficult for consumers to spend money. It is important to note that no single economic indicator can consistently predict the future of the economy. However, the personal income and outlays report is a closely watched release. The consumer remains a vital component of the US economy.
The release this week has the potential to move the financial markets. Now is a good time to take advantage of mortgage interest rates at their current levels to avoid market volatility.
Source: Todd Kabel, F&M Mortgage; Blog distribution provided by Kenneth Bargers and Bargers Solutions residential real estate services located in Nashville, Tennessee
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Written by kbargers
March 28, 2011 at 6:30 am
Posted in economy
Tagged with adp employment, bargers solutions, blog, bureau of economic analysis, consumer confidence, current market conditions, economic report, employment, f&m mortgage, factory orders, ism index, japan, kenneth bargers, march 2011, market comment, mortgage bond prices, mortgage interest rates, Nashville, pce core inflation, personal income and outlays, residential real estate services, stocks, tennessee, todd kabel, treasury auction, us debt, weekly jobless claims