Archive for April, 2009
Huge Drop In New Home Inventory Hints at Market Stabilization
Posted By Matt Hermes on April 25th, 2009
I was looking at one of my favorite blogs this morning (www.positiveeconomicnews.com) and came across this great article on the housing market that I needed to share. The original article was written for Reuters.com.
The supply of unsold new U.S. homes plummeted in March in the biggest drop in more than 45 years, government data showed on Friday, offering hope the distressed housing market is stabilizing.
A separate report on durable goods orders showed weakness persists in manufacturing, and possibly the economy as a whole, but analysts seized on the 5.2 percent drop in housing inventory as a bright spot.
“Housing is probably forming a bottom, because even the supply of homes, the inventories, declined,” said Asha Bangalore, an economist with Northern Trust in Chicago. “I think the housing market is stabilizing.”
As they work on decreasing supply, builders also appear to be holding off on adding new homes. A separate Commerce Department report showed applications for permits to build new homes were off 8.5 percent in March from February and 44.6 percent from March 2008.
That seemed to be the key factor in the reduction in inventories, as buyers have not snatched up increasingly affordable homes despite the median new home price dropping to $201,400 from $208,700. The Commerce Department said March sales slipped 0.6 percent.
But February sales were much stronger than originally thought. The report showed they rose 8.2 percent, compared with the 4.7 percent gain previously registered.
A revision to the March sales numbers will be released next month.
Inventory levels have plunged a record 33.7 percent since March 2008, and the supply of homes available for sale shrank to 10.7 months’ worth in March from February’s 11.2 months.
“What we are seeing on a moving average basis is a gradual improvement from very low numbers in new home sales,” said Kurt Karl, chief U.S. economist for Swiss Re in New York. “It’s not taking off like a rocket, but it’s not looking to be heading south either.”
The March drop brought home sales to a 356,000 annual pace. Analysts polled by Reuters had forecast sales at a much slower 340,000.
U.S. equity indices extended their gains after the report was released, while U.S. Treasury debt prices fell. But strong earnings reports from major corporations and the release of a Federal Reserve white paper on criteria for banks’ “stress tests” dominated U.S. markets.
Analysts polled by Reuters expected the drop to be a much steeper 1.5 percent.
Gwinnett County Home Sales Report
Posted By Matt Hermes on April 24th, 2009
In a effort to provide timely and relative information on Gwinnett County home sales, I have provided this information for you as it was taken from the Gwinnett County Tax Commission website.
I was very surprised to see how drastic the change has been in the last year or so.
The number of homes sales is almost half of what it was last year and pricing has dropped considerably. What does this mean to you as a seller or buyer?
If you are buying a home, do not wait, especially if you are a first time buyer. Pricing will never be better and with the low interest rates and the First Time Home Buyer credit available now is the time to get off the fence. Do not wait.
As a Seller, you need to realize that price and condition are key. Price the home too high and you will sit on the market for a very long time. Price it properly and get it sold and you are now able to take advantage of the low prices on your new home. Yes, you will take a “hit” on the sale but you can more than make up for it if you are purchasing another home.
Statistics for Gwinnett County 2008 vs. 2009 Single Family Residence
Time # of Sales Median Sale Price
Feb 2009 368 $168,051
Feb 2008 693 $185,700
Jan 2009 455 $170,000
Jan 2008 826 $189,000
Hamilton Mill Homes Sales Report For April 2009
Posted By Matt Hermes on April 24th, 2009
While the current real estate market continues to struggle, we at Diamond Dwellings are starting to see a marked improvement in the local market and are optimistic that the upward trend in home sales, pending sales and pricing.
Over the past six weeks or so we have been EXTREMELY busy and buyers are out there, and they are making offers. Price and condition are key.
Overall, the state of Georgia is still struggling with one of the highest foreclosure rates in the country however, the market is turning and we will make it out of the current economic conditions.
Hamilton Mill is not immune to foreclosure and the Gwinnett County Tax Commissioner website states there are currently 12 homes in pending foreclosure. I am sure there are more to come so hang on.
For the year 2009 there have been a total of 15 homes sold.
Same time period in 2008 there were 21 homes sold.
Current Pending Sales for 2009: 10
Highest Sale Price in 2009: $620,000 – Sold by Diamond Dwellings Realty.
Lowest Sale Price in 2009: $185,000
Current Inventory of Homes on market: 116
Highest Asking Price: 1,250,000
Lowest Asking Price: $140,000 Foreclosure
Median Asking Price: $387,904.00
Do you need additional information or want to get a free, no obligation as to the current market? Give me a call or drop me note. There has never been a better time to buy.
Gwinnett County Home Sales Report
Posted By Matt Hermes on April 24th, 2009
In a effort to provide timely and relative information on Gwinnett County home sales, I have provided this information for you as it was taken from the Gwinnett County Tax Commission website.
I was very surprised to see how drastic the change has been in the last year or so.
The number of homes sales is almost half of what it was last year and pricing has dropped considerably. What does this mean to you as a seller or buyer?
If you are buying a home, do not wait, especially if you are a first time buyer. Pricing will never be better and with the low interest rates and the First Time Home Buyer credit available now is the time to get off the fence. Do not wait.
As a Seller, you need to realize that price and condition are key. Price the home too high and you will sit on the market for a very long time. Price it properly and get it sold and you are now able to take advantage of the low prices on your new home. Yes, you will take a “hit” on the sale but you can more than make up for it if you are purchasing another home.
Statistics for Gwinnett County 2008 vs. 2009 Single Family Residence
Time # of Sales Median Sale Price
Feb 2009 368 $168,051
Feb 2008 693 $185,700
Jan 2009 455 $170,000
Jan 2008 826 $189,000
Window of Opportunity
Posted By Jason on April 22nd, 2009
In recent months, I have been talking to you about the “window of opportunity” when it comes to mortgage lending. As I type this post, rates are within a half a point of the lowest rates in country’s history. If you have been sitting on the fence waiting for 4% interest rates, here are a few items to be mindful of:
1) I have reviewed key components of Obama’s Stimulus Package – and nothing in the plan guarantees 4% mortgage interest rates the media keeps talking about. In fact, as Fed Chairman Ben Bernacke alluded in his March 15th “60 Minutes” interview, the Fed’s long term plan is to raise rates as the economy shows signs of recovery.
2) Lenders are continuing to tighten guidelines, which means:
a) Credit scores needed to qualify have increased significantly in the last 30 days. I expect this trend to continue.
b) Many lenders are asking borrowers for larger down payments than in recent years. Fortunately, Signature Lending Group is still offering programs with as little as 3.5% down on FHA loans.
Again, my message here is that we are very likely entering the late stages of our “window of opportunity”. If you or someone you know are wondering if the time is right to purchase a new home or refinance an existing one, please call me immediately. I promise to give you the straight answers that will help you make the most of these chaotic economic times.
Chuck Walden, President
Signature Lending Group, Inc
678-387-5580
