May 23, 2012
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Nashville, real estate | 352 chamberlin, 37209, bargers solutions, cottage, home buying, kenneth bargers, move in ready home, Nashville, pilkerton realtors, sylvan heights, tennessee |
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HOUSING AFFORDABILITY REACHES RECORD HIGHS
Article by: Melissa Dittmann Tracey, REALTOR® Magazine Daily News
Daily Real Estate News | Monday, May 21, 2012… For the median-income family, buying a home has never been more affordable, new surveys by the National Association of REALTORS® and National Association of Home Builders show.
Housing affordability reached a record high for the second-straight quarter in the first three months of this year, the National Association of Home Builders/Wells Fargo Housing Opportunity index shows. Nearly 78 percent of all new and existing homes sold in the first quarter this year were affordable to families earning the national median income of $65,000, according to the index.
NAR’s quarterly Housing Affordability Index also showed a record high in affordability in the first quarter. NAR first began keeping records on affordability in 1970.
According to NAR’s index, the median-income family earning under $61,000 could afford a home costing $325,000 — more than double the national median existing single-family home price of $158,100.
“The median monthly mortgage principal and interest payment for a median-priced home would take only 13.5 percent of gross income,” according to NAR’s affordability index.
Buyers Struggle to Take Advantage
However, while affordability remains high, many home buyers are still being shut out of the market and are unable to take advantage of the deals due to tight lending conditions, housing experts say.
“For those with good credit, we’ve never seen better housing affordability conditions or market opportunities than we see at present,” says Moe Veissi, NAR’s president. “Although home prices are stabilizing and sales are rising, some buyers still have to jump through a lot of hoops to convince a lender that they are creditworthy, even for a mortgage that would be well within their means. This is especially true for self-employed buyers.”
Indeed, Barry Rutenberg, NAHB’s chairman, echoes those comments, adding that “without this significant hurdle, the housing and economic recovery could be proceeding at a much stronger pace.”
Where Affordability Is the Highest
Some of the most affordable housing markets in the first quarter, according to the NAHB/Wells Fargo Index are:
Indianapolis-Carmel, Ind. (where 95.8 percent of the homes sold during the first quarter were affordable to households earning the area’s median family income of $66,900)
1. Dayton, Ohio
2. Lakeland-Winter Haven, Fla.
3. Modesto, Calif.
4. Grand Rapids-Wyoming, Mich. (tied for fifth place)
5. Buffalo-Niagara Falls, N.Y. (tied for fifth place)
Meanwhile, the least affordable housing market continued to be New York-White Plains-Wayne, N.Y.-N.J., a title which it has held for 16-straight quarters, according to the NAHB/Wells Fargo index. Only 31.5 percent of the homes sold in the first three months were affordable to those earning the median income in the area of $68,200.
Source: Melissa Dittmann Tracey, REALTOR® Magazine Daily News | Blog distribution provided by Kenneth Bargers and Bargers Solutions, member of Pilkerton Realtors, residential real estate services located in Nashville, Tennessee
May 22, 2012
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economy, real estate | 1st quarter, 2012, bargers solutions, blog, daily real estate news, housing affordability, housing affordability index, kenneth bargers, melissa dittman tracey, nahb, nar, Nashville, national association of realtors, pilkerton realtors, tennessee |
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POSITVE SIGNS ABOUND FOR HOUSING
Article by: Brian Summerfield, REALTOR® Magazine
Daily Real Estate News | Thursday, May 17, 2012… The first quarter of 2012 was the best first quarter for real estate in five years, and pending contracts suggest that the second quarter of 2012 will be the best second quarter in five years, NAR Chief Economist Lawrence Yun said this morning at the Residential Economic Update during the NAR Midyear Legislative Meetings & Trade Expo.
Moreover, he said the second half of this year could be even better than the first, in part because of continued increases in rental costs and record affordability of homes. “Renters are getting squeezed, and they don’t want to rent anymore,” Yun explained. “This could be the year we see the release of pent-up demand.”
Home prices have been skipping along the bottom for about a year now, Yun said, a trend that has drawn investors into the market. These investors have helped housing through a couple of difficult years and partly mitigated the dysfunctional mortgage market.
“Right now is the time to buy low,” he said. “Investors are coming in to take advantage. Second homes started to recover nicely last year because of investors.”
However, home values are poised for a rebound as more traditional buyers move back into the market, Yun said. In fact, this has already started to happen in areas such as Phoenix and Miami, which have seen year-over-year (March 2011 to March 2012) double-digit percentage increases in home prices.
As real estate improves, consumer psychology around home ownership will change, he added. Coupled with the recent — if relatively modest — job growth and stock market gains, conditions are right for a sustained housing recovery.
Future Challenges
Nonetheless, there are issues that could restrain a turnaround in housing. Mortgages are still too hard to come by, the shadow inventory — while declining — remains historically high, and price inflation is rising “above the Fed’s comfort level,” Yun said.
To address that last problem, the Federal Reserve will likely raise rates in 2013 and 2014. Yet Yun contends a modest rise in interest rates wouldn’t necessarily be a bad thing for the housing market. That’s because an increase in rates would cause financial institutions to focus their mortgage servicing departments on purchase loans instead of refis.
The biggest challenge, though, remains the murky political and regulatory environment, particularly the repeated threats from legislators and policymakers to alter or eliminate the mortgage interest deduction. Additionally, the country is racing toward a “fiscal cliff” on Jan. 1, 2013, the date by which a compromise federal budget must be approved. If this is delayed, there will be automatic government spending cuts, which would probably create a fallout effect in the financial markets.
U.S. Migration Patterns
In a presentation preceding Yun’s, Fed Economist Raven Molloy went over data that showed migration within the United States had fallen across practically all demographic categories since the 1980s. This has significant implications for real estate, as a decline in the number of people moving around within the country can translate into a decline in home-purchase activity.
There were no sharp moves downward in internal migration during the recession, which suggests the trend is not connected to the housing market or macro-economic cycles, Molloy said. If this was the case, migration would likely increase in the next few years as the job market improves and household formation picks up. Instead, it could remain flat or fall as the economy recovers.
In his presentation, Yun said this trend, which doesn’t have a clear source, is a problematic development.
“It’s troubling,” he said. “We want to have a very dynamic society where people can move up and trade up.”
Source: Brian Summerfield, REALTOR® Magazine; Daily Real Estate News (May 17, 2012) | Blog distribution provided by Kenneth Bargers and Bargers Solutions, member of Pilkerton Realtors, residential real estate services located in Nashville, Tennessee
May 18, 2012
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economy, real estate | bargers solutions, blog, brian summerfield, current housing market conditions, daily real estate news, first quarter 2012, home buying, home selling, housing inventory, kenneth bargers, Nashville, pilkerton realtors, positive signs abound for housing, realtor magazine, tennessee |
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Housing Affordability Reaches Records
Daily Real Estate News | Tuesday, May 15, 2012… Housing affordability conditions for all buyers reached a milestone in the first quarter, according to the National Association of REALTORS®.
NAR’s composite quarterly Housing Affordability Index rose to a record high of 205.9 in first quarter, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. This is the first time the quarterly index broke the 200 mark; recordkeeping began in 1970.
NAR President Moe Veissi said market conditions are optimal for home buyers. “For those with good credit, we’ve never seen better housing affordability conditions or market opportunities than we see at present,” he said. “Although home prices are stabilizing and sales are rising, some buyers still have to jump through a lot of hoops to convince a lender that they are creditworthy, even for a mortgage that would be well within their means. This is especially true for self-employed buyers.”
Veissi noted home sales would be much higher if lending standards would return to normal.
The index shows the median-income family, earning just under $61,000, could afford a home costing $325,500 in the first quarter, which is more than double the national median existing single-family home price of $158,100. The median monthly mortgage principal and interest payment for a median-priced home would take only 13.5 percent of gross income.
A companion index measuring the ability of first-time buyers to purchase a home also set a record, with the first-time buyer index reaching 135.8 in the first quarter.
Assumptions for the first-time buyer index include a lower income, at 65 percent of median family income, a starter home costing 85 percent of the median price, and a down payment of 10 percent. This index means the typical entry-level buyer could afford a home costing $182,500, which is well above the overall median price.
“It’s never been easy to buy a first home because of the cash required for down payment and closing costs, but conditions for first-time buyers who are able to get a mortgage have never been better,” Veissi explained.
Most first-time buyers choose a loan with a lower down payment, often an FHA-insured loan with 3.5 percent down, and some use the VA program with no down payment.
Both home prices and mortgage interest rates are expected to edge up modestly as the year progresses, but housing affordability will remain very favorable with the median-income household well positioned to afford a median-priced home. For all of 2012 the index is projected to set an annual record, averaging 191 for the year.
Source: National Association of Realtors (NAR) | Blog distribution provided by Kenneth Bargers and Bargers Solutions, member of Pilkerton Realtors, residential real estate services located in Nashville, Tennessee
May 15, 2012
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real estate | 2012, bargers solutions, blog, home buying, housing affordability reaches records, kenneth bargers, mortgage interest rates, mortgage loans, nar, Nashville, national association of realtors, pilkerton realtors, quarterly housing affordability index, rent versus buy, tennessee |
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GREATER NASHVILLE HOME SALES CONTINUE TO INCREASE
NASHVILLE, Tenn. (May 9, 2012), GNAR – There were 2,186 home closings reported for the month of April, according to figures provided by the Greater Nashville Association of REALTORS®. This represents an increase of 25 percent from the 1,747 closings reported for April 2011.
Year-to-date closings are also up compared to 2011 with 7,041. That is a 24.5 percent increase compared to the 5,655 closings reported through April 2011.
“Total sales are the best we’ve seen since June 2010, which was the initial deadline for the First Time Buyer Tax Credit,” said GNAR President Kendra Cooke. “While some of the increase can be attributed to normal seasonal trends, the high number of closings is a clear indication that the real estate market in this region is showing significant improvement. The continuation of historically low interest rates, increasing economic confidence and increasing rental rates are all factors having a positive impact on real estate sales.”
There were 2,436 sales pending at the end of the month, compared to the 1,909 pending sales at this time last year. The average number of days on the market for a single-family home was 88 days.
The median residential price for a single-family home during April was $165,120 and for a condominium it was $141,190. This compares with last year’s median residential and condominium prices of $159,070 and $148,000, respectively.
Inventory at the end of April was 19,622, down from 22,297 in 2011.
“Inventory is down, but with overall inventory at a 9-month supply and residential inventory at a very balanced 6.5-month supply. Right now, sellers will want to be sure their homes are well-prepared for showing. While market activity is increasing, buyers are very focused on properties they visit being clean and fixed-up if they are going to seriously consider making a purchase.” added Cooke.
The Greater Nashville Association of REALTORS® is one of Middle Tennessee’s largest professional trade associations and serves as the primary voice for Nashville-area property owners. REALTOR® is a registered trademark that may be used only by real estate professionals who are members of the National Association of Realtors and subscribe to its strict code of ethics.
Source: Greater Nashville Association of REALTORS® (May 9, 2012) | Blog distribution provided by Kenneth Bargers and Bargers Solutions, member of Pilkerton Realtors, residential real estate services located in Nashville, Tennessee
May 10, 2012
Posted by kbargers |
economy, Nashville, real estate | april 2012, bargers solutions, GNAR, greater nashville association of realtors, home buying, home sales rise, home selling, housing data for the greater nashville area, kenneth bargers, Nashville, pilkerton realtors, realtor, tennessee |
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May 10, 2012
Posted by kbargers |
Nashville, real estate | 352 chamberlin, 37209, centennial, Charlotte, cottage, home buying, investors, kenneth bargers, Nashville, pilkerton realtors, realtor, sylvan heights, tennessee, value trending neighborhood, vandy, west end |
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Supporting those that Support Others! Will your company be participating in this year’s annual UCP Casual Day 2012?
UCP’s Annual Casual Day 2012
A CELEBRATION OF TENNESSEE MUSIC
to benefit United Cerebral Palsy of Middle Tennessee
June 29, 2012 (or the date of your choice)
Casual Day. Casual Day is a unique and successful annual event mainly because all of the donations stay in Tennessee and are used to serve people with ALL disabilities who have no other resources. UCP builds wheelchair ramps across the entire state; provides recycled wheelchairs, walkers, bath aids, strollers, car seats, standers, etc.; provides home modifications (like widening doorways or raising countertops); offers educational seminars; hosts a free weekly recreation program; provides holiday food boxes for the most needy families; offers assistance for “Inclusive Summer Programs” for children.
Our Tennessee. Each year, a rendering is created that is unique to Tennessee and the artwork is dedicated for the use of UCP’s Casual Day. The artwork is normally used on the Casual Day T-shirt and a small poster. This year’s Casual Day theme is based on rare and valuable instruments which include a 1954 Fender Stratocaster, a 1960 Les Paul, a 1937 Martin D-28 and a 1939 Shurline 55s microphone once used by Elvis Presley!
How will your donation be used? Casual Day donations are used for the following: wheelchair ramps, home modifications, education, medical equipment, recreation, information and referral, summer activities and other programs.
Who does UCP help? People of all ages throughout Tennessee with: cerebral palsy, arthritis, spina bifida, diabetes, autism, strokes, brain injuries, heart disease, kidney diseases, epilepsy, muscular dystrophy, and a long list of other types of disabilities.
About UCP. United Cerebral Palsy’s mission is to advance the independence, productivity, and full citizenship of people with disabilities and to provide support to family members.
UCP serves individuals with all types of disabilities. Our expertise is generally in service to individuals with physical disabilities which affect mobility. UCP also serves as the area clearinghouse for information about the condition known as cerebral palsy. At present, approximately 40% of UCP consumers have cerebral palsy, the second largest lifetime disability in the U.S. (mental retardation is the largest). 60% of the people UCP serves have physical disabilities other than cerebral palsy. These include such conditions as spina bifida, M.S., disability resulting from head and spinal cord injury, ALS, amputations, strokes, and heart attacks, and many lesser known physical disabilities. Visit website
Company Participation. If your company has interest to participate in this worthy cause, I invite you to contact my friend and long time Director of Middle Tennessee’s United Cerebral Palsy, Ms. Diane Dietrich. Diane can be reached at (615) 242-4091 or diane_dietrich@ucpnashville.org.
Make a donation to United Cerebral Palsy and make a difference in someone’s life! Participating companies allow their employees to donate $5 or $20 and receive some great items that are donated from sponsors to go into the packets. The employees are allowed to where their T-shirt on Casual Day and this year’s date is dedicated on June 29, 2012.
Printable PDF: 2012 UCP Casual Day Flyer
May 8, 2012
Posted by kbargers |
charity, tennessee, Uncategorized | 2012 Casual Day, blog, celebration of tennessee music, charity, company participation, diane dietrich, june 2012, kenneth bargers, Nashville, tennessee, ucp event, united cerebral palsy of middle tennessee |
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Survey Shows More Reason to Buy Than Rent
Daily Real Estate News (Monday, May 07, 2012)… Thirty-three percent of Americans say they expect home prices to rise in the next 12 months, the highest level in more than a year, according to Fannie Mae’s March 2012 National Housing Survey of consumer attitudes about the housing market.
The number of people who say now is a good time to buy is also on the rise, increasing to 73 percent—also the highest level in more than a year. The percentage who said it’s a good time to sell a home also increased one point to 14 percent in March.
Meanwhile, more Americans expect rental prices to rise and are projecting an increase by 4.1 percent over the next year, the highest number recorded to date.
“Conditions are coming together to encourage people to want to buy homes,” says Doug Duncan, Fannie Mae’s chief economist. “Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that home ownership is more compelling house choice.”
Source: “Americans’ Expectations Align to Encourage Home Buying,” RISMedia (May 6, 2012); Daily Real Estate News (May 7, 2012) | Blog distribution provided by Kenneth Bargers and Bargers Solutions, member of Pilkerton Realtors, residential real estate services located in Nashville, Tennessee
May 7, 2012
Posted by kbargers |
economy, real estate | bargers solutions, benefits of home buying, blog, buy versus rent, daily real estate news, fannie mae national housing survey, home buying, housing market, kenneth bargers, march 2012, may 2012, Nashville, pilkerton realtors, tennessee |
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Home Buying Gets Another Boost in Affordability
Article by Daily Real Estate News (Friday, May 04, 2012)… For home buyers or refinancers, borrowing costs for home ownership just got a little cheaper as mortgage rates took another dip to new all-time record lows this week, Freddie Mac reports in its weekly mortgage market survey.
“Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week,” says Frank Nothaft, Freddie Mac’s chief economist.
Here’s a closer look at average rates for the week ending May 3:
- 30-year fixed-rate mortgages: averaged 3.84 percent, with an average 0.8 point, reaching a new historical low. The previous record for 30-year rates was 3.87 percent, which was set on Feb. 9 of this year. A year ago at this time, rates averaged 4.71 percent.
- 15-year fixed-rate mortgages: averaged 3.07 percent, with an average 0.7 point, another historical low. The previous record for 15-year rates was 3.11 percent set on April 12 this year. A year ago at this time, 15-year rates had averaged 3.89 percent.
- 5-year adjustable-rate mortgages: averaged 2.85 percent, with an average 0.7 point, holding the same as last week. Last year at this time, 5-year ARMs averaged 3.47 percent.
- 1-year ARMs: averaged 2.70 percent this week, with an average 0.6 point, also registering at a new all-time low. Last year at this time, 1-year ARMs averaged 3.14 percent.
Source: Freddie Mac; Daily Real Estate News 050412 | Blog distribution provided by Kenneth Bargers and Bargers Solutions, member of Pilkerton Realtors, residential real estate services located in Nashville, Tennessee
May 7, 2012
Posted by kbargers |
economy, real estate | afffordability, bargers solutions, blog, current mortgage rates, daily real estate news, freddie mac, home buying, kenneth bargers, may 2012, nar, Nashville, pilkerton realtors, tennessee |
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Survey: Moves for Job Relocations on the Rise
Daily Real Estate News | Wednesday, May 02, 2012… After a slowdown in corporate moves the past few years, more companies are planning to get their employees moving, according to a new survey.
Twenty-six percent of companies plan to relocate more workers this year than last year, according to the 2012 Corporate Relocation Survey, conducted by Atlas Van Lines.
The top places for corporate moves is the Northeast (42 percent), followed by the Midwest (37 percent), South (31 percent), and the West (26 percent).
The Atlas Van Lines survey also found that:
- 86% of companies plan to spend as much or more on relocation in 2012 than in 2011.
- More companies are also now offering relocating employees full reimbursement, not just lump sum or partial reimbursement.
- 52% of all relocations last year were for new hires.
- The most frequently moved employees in 2011 are employees aged 36-40.
Some Employees Decline to Move:
In 2011, 57 percent of companies say that employees declined a relocation. The top reasons that employees said they did not want to relocate:
- Housing and mortgage concerns: 71%
- Family issues/ties: 64%
- Personal reasons: 42%
Source: Daily Real Estate News (article Wednesday, May 02, 2012); Atlas Van Lines, 2012 Corporate Relocation Trends | Blog distribution provided by Kenneth Bargers and Bargers Solutions, member of Pilkerton Realtors, residential real estate services located in Nashville, Tennessee
May 3, 2012
Posted by kbargers |
real estate, relocation | 2012 corporate relocation survey, atlas van lines, bargers solutions, blog, current economic conditions, daily real estate news, employee transfers, home buying, home selling, kenneth bargers, Nashville, pilkerton realtors, relocation, tennessee |
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