Realtors Report Surge in Contract Signings in May

The National Association of Realtors’ leading indicator of future home sales rebounded in May after an unexpected downdraft in April.


The Realtors reported Wednesday that its pending sales index jumped nearly 6% in May back to 101.1, the same level in March and the highest this year.


NAR's pending sales index is based on signed contracts, which usually translate into actual sales in a month or two.


Overall, the PSI is up over 13.3% from a year ago.


“The latest increase in home contract signings marks 13 consecutive months of year-over-year gains,” NAR chief economist Lawrence Yun said.


“Actual closings for existing-home sales have been notably higher since the beginning of the year and we’re on track to see a 9% to 10% improvement in total sales for 2012,” he added.


NAR economists are forecasting that existing home sales will total 4.66 million by yearend, up from 4.26 million in 2011.




They also expect the national median existing-home price to rise 3% this year and another 5.7% in 2013.


Give me a call if you want more information or just want to chat about how we can help you. 615-777-4663 or just shoot me an email at george.margrave@migonline.com

Outlook for a Housing Market Recovery

 Home prices may well find a bottom this year, and stronger sales should pave the way for a pickup in single-family construction over the course of 2012.

That’s the assessment made by Harvard University’s Joint Center for Housing Studies (JCHS) in its recently released “State of the Nation’s Housing” report. The report - which has been released since 1988 - is an essential resource for both public policy makers and private decision makers in the housing industry.

The bottom line of the report is that - after several false starts - there is reason to believe that 2012 will mark the beginning of a true housing market recovery.

 

However, employment growth remains a key factor, providing the stimulus for stronger household growth and bringing relief to some distressed homeowners. And, if the broader economy weakens in the short-term, the housing rebound could again stall.

 

Here are just some of the findings in the report:

 

• The monthly mortgage payment for the typical home currently compares more favorably to rents than at any time since the early 1970s.
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• By the first quarter of 2012, existing home sales were 5.2 percent above year-earlier levels, with single-family sales up 6.3 percent.
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• Sales of newly constructed homes in the first quarter of 2012 stood 16.7 percent above year-earlier levels.
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• The inventory of existing homes for sale shrank by some 23 percent in 2011, reducing the supply in the first quarter of 2012 to its lowest level since 2006.
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• Single-family permitting, a leading indicator of starts, was also up 16.9 percent in the first quarter of 2012.

The complete report provides a current assessment of:

 

• The state of the housing market and the foreclosure crisis
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• The economic and demographic trends driving housing demand
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• The state of mortgage finance
•  
• Ongoing housing affordability challenges

 

You can download the full report from the JCHS’s website. You can also download a convenient handout of Key Housing Industry Facts from the website.

 

 

 

~~Mortgage Market Guide

 

 

 

New FHA Streamline Loans...worth the wait!

FHA has finally done something good. There are lots of folks that bought their homes in the 2000 to May 31, 2009 timeframe that have not been candidates for refinancing. The reasons are usually one of these.


1 The new FHA MIPs made the numbers much worse than they should have been.

2. They owed more than their home was worth

FHA addressed this by announcing that for any person who has an existing FHA loan that was endorsed before May 31, 2009, the streamline FHA MIP will be .55 monthly and .01 up front. This is much lower than people buying a new home today with current MIPS.

So the numbers are going to be drastically better. The catch is that if you want to add closing cost to the loan , the home has to appraise for enough to do that. But if it won’t, then we can build the cost into the rate and do lender paid closing cost with no appraisal.

It is a win win for everybody.

Basically the only qualifying factor is that you have income, a minimum 640 credit score and no mortgage payments over 30 days late in the last 12 months.

Give me a call, 615-777-4663, shoot me an email george.margrave@migonline.com or refer someone you know looking to refinance. Look at the numbers. It will be worth it.

CRACKING THE CODE: DUTY TO DISCLOSE

Do you know your disclosure responsibility? In a recent case, a Hawaii court found that a “Frog Addendum” alerted a buyer to the potential issue of tree frog din. Interestingly, in Brinkwood Land Equities Ltd. v. Hilo Brokers Ltd., the court also determined the broker had no duty to disclose that the surrounding neighborhood was allegedly frequented by drug dealers and prostitutes.


Article 5 of the Code of Ethics says REALTORS® shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties. This could apply to many different areas- for example, frogs. For more on disclosure and article 5, click here.


~~GNAR

Remember, if you want more information or would like to chat, let me know.  I can be reached at 615-777-4663 or via email at george.margrave@migonline.com