Keeping Current Matters
building a home for real estate information™UPDATE! BLOG HAS MOVED!
To whom it may concern:
The Steve Harney blog has been kidnapped and transported to the KCMblog.com.
Thank you for your understanding and cooperation. Your real estate information will be waiting there.
-The KCM Crew
Happy Thanksgiving
I hope everyone enjoys a safe and joyous holiday.
My friend Mike Staver is a great speaker and business coach. He recently shared a point that I believe applies to this time of the year.
“If you were sitting with 10 other people and everyone threw their problems on the table, there would be a good chance that you would be more than willing to take yours back.”
Or as my pop used to say:
“I complained of having no shoes until I met a man with no feet.”
Let’s be thankful for what we have!!!
Steve
Pricing – what actually is happening?
Today’s Talking Point 11/25/09
The Federal Housing Finance Agency (FHFA) just came out with their 3rd Quarter Pricing Report (which covers the previous four quarters). If you go to the bottom of the home page, they have an interactive map where you can see how prices have changed in your state over the last year.
The Case Shiller report was also released this week. The headlines talk about prices rising. Let’s make sure we know the story behind the headlines:
The 10-City Composite is off 8.5% from September 2008.
The 20-City Composite is off 9.4% from September 2008.
The headlines report the month-over-month change in prices. Actually, prices have fallen almost 10% in the last year.
Here is a graph showing Case Shiller prices from Calculated Risk:
With the tax credit for homebuyers and the limited release of distressed properties by the banks, the lower price inventory is being sold off. That is why there has been a slight increase in national prices on a month-to-month basis over the last several months.
Actual prices are NOT going up. Once the ‘shadow’ REO inventory is released, months supply will surge and prices will take another dip.
Today’s Talking Point 11/24/2009
Existing Sales Skyrocket 10.1% !!
NAR released their Existing Sales Report yesterday. The key points:
Sales
Existing-home sales – including single-family, townhomes, condominiums and co-ops – surged 10.1 percent over last month’s numbers and is 23.5 percent above the level in October 2008.
Inventory Read the rest of this entry »
Today’s Talking Point 11/23/09
Fear of Double Dip in Housing –
Home Starts Tumble and Mortgage Delinquencies Rise, Casting Cloud Over Recovery
That was the front page headline last Thursday in the Wall Street Journal. The article discussed what we have been addressing for several months now. The article highlighted a growing problem in housing – the number of mortgages which are now delinquent has more than doubled in the last year.
About 3.4% of U.S. households — or about 1.9 million homeowners — are 120 days or more overdue on their payments, but not yet in foreclosure, according to LPS Applied Analytics, a research firm in Denver. That is up from 1.5% a year earlier.
A study by Laurie Goodman of Amherst Securities Group reported that homes which are 90+ days delinquent have a 99.2% chance of going to foreclosure. Whether they come to the market as an REO or a ‘short sale’, they will have a devastating impact on prices.
Here is a chart from Calculated Risk showing the increases in delinquencies (click to enlarge):
When we price our listings today, we must realize that this growing ‘shadow industry’ of homes will be released unto the market over the next few months. Let’s be great counselors to our sellers and make sure they price their homes to sell before this inventory is released.
Wall Street Journal says: BUY NOW!!
Here are the major points of a post on Market Watch (part of the Wall Street Journal digital network)
Tips for buyers
Interested in buying a home and claiming the home-buyer tax credit? Below are five tips:
1. Don’t procrastinate
Get searching now. Getting an early start will give you a better chance of finding the right house before the credit deadline. Read the rest of this entry »
Today’s Talking Point 11/20/09
Move.com survey results:
Just more than 12% of potential home buyers surveyed plan to purchase a home as an investment property compared with less than 6% who said the same seven months ago. Read the rest of this entry »
Today’s Talking Point 11/19/09
Short Sale Forms
We have often mentioned how important it is to understand the ‘short sale’ process going into 2010. In order to help, I have included two forms that should be in every package going to the bank.
1. Carry Cost Analysis
This document analyzes and compares the various costs associated with a short sale transaction versus allowing a property to go into foreclosure. Although not required, this can be very useful in reinforcing the accuracy of the offers submitted to the bank.
2. Income and Expenses Schedule Read the rest of this entry »
Today’s Talking Point 11/18/09
This blog is dedicated to getting important information into real estate professionals’ hands in a timely matter.
However, today, I want to take a step back and reflect on our mission. We are responsible for rejuvenating a housing industry that has been decimated by a litany of bad decisions over the last few years. The task in front of us is daunting and the road to recovery is steep.
Yet, as I travel the country, Read the rest of this entry »
Today’s Talking Point 11/17/09
More observations from the NAR Conference:
Quotes:
“You are creating your digital legacy.”
Eric Bryn speaking about creating your online brand.
“The true measure of success in the speaking industry is longevity.”
Steve Murray giving me great counsel.
“Home sales will increase 15 percent and REALTOR® income will be up 20 percent in 2010.”
NAR Chief Economist Lawrence Yun
Strangest Things to Happen:
Seeing Eric Bryn wearing his KCM pin as an earring…. Read the rest of this entry »
Keeping Current Matters 