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Showing posts with label pending home sales. Show all posts
Showing posts with label pending home sales. Show all posts

August 30, 2011

Short-Term Bumps, Long-Term Jumps

Hi Folks,

   Welcome Back, and I join you on this special day (it's my son's 5th birthday, and ice cream cake with the inevitable sugar rush might render me comatose by tonight). But it is a fun day !

   Back to Real Estate (what you came here for!)

   Obviously, Home Sales and Home Prices are critical to the Real Estate market, and we had a couple of figures released this week that we'd like to discuss with you today, coincidentally Pending Home Sales and Standard & Poors/Case-Shiller Home Prices.

   Per the National Association of Realtors®, or NAR, the Pending Home Sales Index was Down 1.3% in from June to July of this year, but it was Up 14.4% from July 2010 to July 2011. The NAR reports that all regions showed monthly declines, with the West showing the "highest level of sales contract activity", with a 3.6% increase from June-July of this year, and an amazing 20.6% from July 2010.

   As for Home Prices, the Standard and Poors/Case-Shiller Home Price Index reported that nationally, Home Prices Went Up 3.6% from Q1 to Q2 of this year, but dropped 5.9% From Q2 of 2010 to Q2 of 2011, and they added that, Nationally, "home prices are back to their early 2003 levels".

   David M. Blitzer, Chairman of the Index Committee at Standard & Poors Indices, stated that shifts in pricing amongst different regions suggests that, "we are back to regional housing markets, rather than a national housing market where everything rose and fell together."

   Lawrence Yun, NAR chief economist, said that the market can move into a "healthy expansion", with a return to normalcy in mortgage underwriting standards. As the Pending Home Sales Index is a "forward-looking indicator based on contract signings", and the data reflects contracts but not closings, Yun also made a point to say that "not all sales contracts are leading to closed existing-home sales", and says that "other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and streamlining the short sales process.”

   On a positive note, Yun says that “The underlying factors for improving sales are developing", and points to "rising rents, record high affordability conditions and investors buying real estate as a future inflation hedge", but reiterates that it is "now a question of lending standards", along with consumers "having the necessary confidence to enter the market.”

   Here is my 2-cent opinion: I like to look at changes over the long-haul, i.e., from the same time 2010 vs the same time 2011. With that thought in mind, we jumped 14.4% in Pending Home Sales but Home Prices (Index of Prices) dropped 5.9%. Just as the title of this post suggests; Short-Term Bumps, Long-Term Jumps...!

   What are your opinions on these new figures? What does it mean to you?

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Have a Great Week, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #HomeSales #HomePrices #RealEstate #shortsales #CaseShiller #NAR #mortgageunderwriting

July 28, 2011

Lengthy Short Sale Process a Painful Reality

Hi Folks,
   How is everyone today?

   The National Association of Realtors (NAR) just released their "Pending Home Sales Index" (PHSI) for June, which reflects "When the contract has been signed", but, "the transaction has not closed". The figures came in at 2.4% above May, and 19.8% above June 2010, with the biggest increases from May to June were in the South and the West,

   Now, if you were not aware, the PHSI is a "forward-looking indicator", which assumes about 2 months between the contract signing and the closing. The question this raises in my mind is the following; what about the lead time for short sales from contract to closing? These have been trending longer, and according to a recent story, "Short sales are among the most arduous real estate transactions, often taking six months or more to close -- if they get done at all".

   In the story written by Greta Guest for the Detroit Free Press, and titled, "Shortsales, longwaits: Buyers and sellers find process frustrating", Guest cites an agent in Oxford, Michigan, who worked on a short sale that stretched eight months. Michelle Chappell, an agent with Real Living John Burt Realty in Oxford, said that after the process which she called "heart-wrenching" for her buyers, she said, "This was the last one I sold. I said no more. I won't do it.". Chappell reflects a growing number of Realtors that are avoiding short sales because they can be so difficult, writes Guest (she aptly uses the term, "Short sale shy")

   Why such a long process?

   "Homes with more than one mortgage and mortgage insurance tend to take the longest", said Ellen Mahoney, president of Complete Title Services' loss mitigation division in Birmingham, Mich, writes Guest. She adds that a "growing reason short sale deals fall through or take longer" is because of mortgage insurance" purchased after the homeowner closes on the deal and the loan is later sold to other lenders and investors.".

   Other factors also contribute to the lengthy process, but ultimately, as Guest writes, "These kinds of delays mean buyers walk away because of the time and frustration involved."

   What do you think would trim down the time? Perhaps a standardized process (like the one the Government has tried to implement without success to this point, yet)?

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Have a Great Weekend, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #shortsales #lossmitigation #mortgageinsurance #realtor

April 29, 2011

The Bearer of Good Economic News?

Hi Folks,

   Glad to have you with us, and even happier to report some positive news in Housing Market !

   This week, the National Association of Realtors released their Pending Home Sales Index, and with these numbers, we see that March had another increase in pending home sales ("The data reflects contracts but not closings, which normally occur with a lag time of one or two months.", says the National Association of Realtors). Overall the indicator rose 5.1% from February, but was down 11.4% from March of 2010.

   Keep up the good work. Real Estate is still an incredible investment, and when done properly and ethically, it stokes the progress and expansion of our towns, neighborhoods, and affects all of our lives.

Comments? Suggestions? Please share with us.

Have a Great Weekend, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

March 30, 2011

Home Sales Up, Home Prices Down

Hi Folks,

   Glad to have you back.

   It was a mixed week in terms of the Housing Market, but at this point, we'll take a mixed week vs an abysmal week!

   The good news first; The Pending Home Sales Index For February was released by the National Association or Realtors, or NAR (and "reflects contracts and not closings, which normally occur with a lag time of one or two months). The numbers showed a rise of 2.1% from January (but a drop of 8.2% from February 2010).

   The "other" news, as we will call it, came from S&P, and the S&P/Case-Shiller Home Price Indices for March. This is a case of when the title tells the story; "Home Prices Off to a Dismal Start in 2011". In summary, their large 20-city composite showed a 3.1% drop from January 2010 to January 2011, with San Diego and Washington D.C.as the only two markets to record "positive year-over-year changes".

   What to make of these numbers. If I said I knew, I'd be lying. We have a comment submitted to us by Paul Gabrail, co-founder of Select Investment Group, a Cleveland, Ohio real estate investment firm, who says that, "there aren't enough positives in the housing numbers to outweigh the anchors holding values down, which include oversupply of recent years' new construction, the oncoming supply of foreclosed homes that have been held back since October by banks, and the unemployment and income numbers that we are experiencing. Bottom line, housing values still have further to drop."

   Construction numbers come out on Friday, so maybe we'll get a clearer picture of where things are headed as we approach mid-year.

Have a Great Week, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

March 4, 2011

Happy Blog Birthday And Some New Housing Numbers

Hi All,

   As the month of March has arrived, we are glad to be celebrating our 1-Year Blog Anniversary. We started the Blog as a source of information regarding our Rent to Own website, and it has blossomed into a machine that keeps pumping out info on the Real Estate Market, Housing and Economic Numbers, Rent to Own, along with experts and professionals providing their invaluable info, comments, and opinions. Thanks for sticking with us, and remember, our Blog can be delivered directly to your E-mail as soon as we post (See the right hand side for subscription options - yes, it's free, and you will NOT be on a mailing list - it is only a subscription to receive the Blog posts, we promise!).

   In the spirit of keeping the information machine running, Pending Home Sales and Construction numbers were released this week, and we would like to take a look at them together with you today.

   Pending Homes Sales dropped 2.8% from December 2010 to January 2011, and is down 1.5% from January 2010 to January 2011. It is interesting to point out that the numbers are 20.6% above the "cyclical low last June", according to the National Association of Realtors®.

   In terms of Construction numbers as a whole, they dropped 0.7% from December 2011 to January 2011, and also dropped from January 2010 to January 2011, to the tune of almost 6%. Private Construction dropped from December 2010 to January 2011, with Nonresidential Construction dropping almost 7% during that period. Another interesting point here is that Residential Construction increased by 5.3% over December 2010. Public Construction was up 0.1% from December 2010 to January 2011, with Highway Construction dropping 0.7% during that period, while Educational Construction increased 1.7%.

   Does a decrease in Highway Construction, coupled with an increase in Educational Construction indicate a stronger emphasis on building more schools vs. building more infrastructure, or is it just an aberration? What are your thoughts?

   Thank you again for being a part of our Blog and a part of our family !

Have a Great Weekend, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

November 3, 2010

Construction, IHOP, and FSBO

Good Afternoon,
   I hope this week has been kind to you, so far. Well, I have been asked offline to not discuss the fact that my birthday was Halloween, so there...I did not mention my birthday was Halloween (Yay!)

   Construction numbers were released this week, and it is in line with our post from Friday ("Not-So-Spooky Housing Numbers"). Specifically, construction spending during September was above the revised August estimate, however, when comparing September 2009 to September 2010, there was more than a 10% drop.

   I don't know about you folks out there, but I am amazed at the amount of white-washed windows and "Out Of Business" signs. It can be frightening, especially when it affects stores and businesses that you have been patronizing for years. Waldbaums, which is a major grocery supermarket here in the Northeast, has just closed a store nearby. I had to do a double-take when I saw it's huge windows white-washed with an "Out of Business" sign. On the flip-side, we have a brand new IHOP (International House of Pancakes) being built here. Does the need for pancakes outweigh the need for basic food and groceries. Makes me wonder, but I'm a big fan of chocolate flapjacks !

   The next numbers that are coming out will be the Pending Home Sales Index on Friday the 5th.

   In closing, I wanted to let you know that our post titled, "Top 5 Concerns When Selling a Home FSBO", has become one of our most popular posts of all time. I can honestly say that I'm glad we posted it for you, and please make sure you pass the link (http://blogging.lease2buy.com/2010/10/top-5-concerns-when-selling-home-fsbo.html) to all of your friends so they can also thank you for the wealth of information in that post. If you can kindly Link to it, Tweet it, Facebook it, Digg it, Buzz it, etc,...that would be wonderful !

Have a Great Week, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com/
HomeRun Homes Website http://www.lease2buy.com/

October 4, 2010

Homes Sales Up, and Addressing a Reader Question

Hi Folks,
   Hope you had a nice fall weekend.

   Hot off the Press: The National Association of Realtors (NAR) just released the latest data showing that "Home Sales are Up". Per the Realtor.org website, the Pending Home Sales Index rose 4.3 percent from July, "but is 20.1 percent below August 2009".

   Now, just to make you aware of what this really means; The data reflects the sales contracts (not the physical closings), so the buyer(s) still need to be approved for financing, however, that is a different index.

   Look, many moons ago when I was in the stock market, there was a saying that, "The Trend is Your Friend". I'm sticking by that!

   A few of our readers who have Ads on our site have asked how they can upgrade their Ad(s) to the top of the page ("TOP SPOT"). For example, if you have a home listed on the Florida Rent to Own Homes page, it is listed alphabetically by city. If you want the Ad to also appear on the top of the page in it's own box with extra images and space, you can log into your Control Panel (http://www.lease2buy.com/login.php), click "View Ads", and then you can select the Upgrade/Feature option.

   For those of you who like to "Go Big" from the start, you can skip all of that and create your Ad and upgrade it to the top of the state page ("TOP SPOT") via these links:

If you are Looking for a Rent to Own Home, create your "TOP SPOT" Ad here: http://www.lease2buy.com/top_homeswanted.php

If you are Selling a Rent to Own Home, create your "TOP SPOT" Ad here: http://www.lease2buy.com/top_homesavailable.php

   Please remember that due to the size of the upgraded Ad, we can only offer one per state page (so it is extremely limited, as you can imagine).

Have a Great Week, and Happy Rent-to-Owning !!

August 4, 2010

Construction and Home Sales Down...Is the Sky Falling?

Hi Everyone,

   Thanks for the overwhelming response to our post on Monday, and by a landslide, you have told us that you want to hear more about Real Estate Investing and the hottest markets. We hear you and we listen to you. Later on this week, we will be doing a piece on this very subject. Thank you, and we hope you enjoy all of your HomeRun Homes/Lease2Buy.com goodies that you received for your input. Enjoy !

   We had some housing numbers come out on Monday and Tuesday. The first set of numbers, pertaining to construction spending, showed these numbers slightly above the revised May estimate, however, 7.9% below the June 2009 Estimate. It's a huge difference, and we are all seeing it happen (or "not" happen).

   Pending home sales were released yesterday, and these also came down as well (in comparison with the Spring when the tax credit was applicable for home buyers).

   With all of these gloomy numbers, there are some gems out there. As mentioned earlier, we will discuss these real estate investing markets in our next post.

   The sky is not falling. Don't feed into that hype or it will take longer to recover. Keep your head up and keep your mind in the game.

Have a Great Day, and Happy Rent-to-Owning !