Is an ARM right for you? The ARM (Adjustable Rate Mortgage) has gotten a lot of bad press lately. But with the built-in safety features, it can be a fantastic product for the right buyer. With the current rate at 3.875%, a 1% annual cap, and a 5% lifetime cap, this could be the opportunity you've been waiting for! Call me for details.
The following groups are available to help at-risk homeowners:
· HUD at (800) 569-4287, (877) 483-1515, or www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm
· HOPE NOW, a cooperative effort of HUD mortgage counselors and lenders to assist homeowners: (888) 995-HOPE or www.hopenow.com
· NeighborWorks America: www.nw.org/network/home.asp
· Federal mortgage modification and refinancing programs: www.makinghomeaffordable.gov
· The Controller of the Currency's consumer information site for banking-related questions: www.helpwithmybank.gov
· OCC Customer Assistance Group: www.occ.gov/customer.htm
· Federal Trade Commission: www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm
· Federal Reserve Board: www.federalreserve.gov/pubs/foreclosurescamtips/default.htm
The great news here is seeing California recovering as they were the first to decline.
EXISTING-HOME SALES RISE IN FEBRUARY
WASHINGTON (March 23, 2009) - Existing-home sales increased in February, reversing losses in January. Even so, sales activity remains relatively soft, reflecting additional layoffs and buyers waiting for housing provisions in the economic stimulus package to take effect, according to the National Association of Realtors®.
Existing-home sales - including single-family, townhomes, condominiums and co-ops - rose 5.1 percent to a seasonally adjusted annual rate1 of 4.72 million units in February from a pace of 4.49 million units in January, but are 4.6 percent below the 4.95 million-unit level in February 2008. Seasonal adjustment factors are more volatile in winter months, but sales rates over the past few months show dampened sales activity.
Lawrence Yun, NAR chief economist, said first-time buyers accounted for half of all home sales last month, with activity concentrated in lower price ranges. "Because entry level buyers are shopping for bargains, distressed sales accounted for 40 to 45 percent of transactions in February," he said. "Our analysis shows that distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the overall median price."
The national median existing-home price2 for all housing types was $165,400 in February, down 15.5 percent from a year ago when the median was $195,800 and conditions were close to normal; the median is where half of the homes sold for more and half sold for less. "Given the downward distortion in price comparisons due to distressed sales, it's important for owners to keep in mind that this doesn't equate to a similar loss of value for traditional homes in good condition," Yun explained.
Yun said a recovery in the West is much stronger than expected. "Strong sales gains in the West are led by California, where the median listing price is beginning to rise for the first time in three years," he said.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said home shopping activity has picked up with housing affordability at a record high. "The number of buyers looking for homes rose 5 percent in February, and also was 5 percent above a year ago," he said. "It appears most of the increase in buyer traffic occurred in the latter part of the month after the $8,000 first-time buyer tax credit was put in place. At the same time, mortgage purchase applications have risen, so we expect to see sales picking up around late spring."
McMillan noted that more potential buyers are learning about the tax credit, just as the traditional spring home-buying season begins. "In this changing market, smart buyers and sellers consult with Realtors® who can advise them about current conditions in their area, and counsel them on the best way to move forward," he said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage edged up to 5.13 percent in February from a record low 5.05 percent in January; the rate was 5.92 percent in February 2008. Last month's average mortgage rate was the second lowest since data collection began in 1971. Last week the rate further declined to 4.98 percent.
Total housing inventory at the end of February rose 5.2 percent to 3.80 million existing homes available for sale, which represents a 9.7-month supply3 at the current sales pace, unchanged from January. In the six months prior to February, the total number of homes for sale had steadily declined from a record level last July.
Single-family home sales rose 4.4 percent to a seasonally adjusted annual rate of 4.23 million in February from a level of 4.05 million in January, but are 3.6 percent below the 4.39 million-unit pace in February 2008. The median existing single-family home price was $164,600 in February, down 15.0 percent from a year ago.
Existing condominium and co-op sales increased 11.4 percent to a seasonally adjusted annual rate of 490,000 units in February from 440,000 units in January, but are 13.1 percent lower than the 564,000-unit pace a year ago. The median existing condo price4 was $172,200 in February, which is 18.7 percent lower than February 2008.
Regionally, existing-home sales in the Northeast jumped 15.6 percent to an annual pace of 740,000 in February, but are 14.9 percent below February 2008. The median price in the Northeast was $251,200, down 4.8 percent from a year ago.
Existing-home sales in the Midwest increased 1.0 percent in February to a pace of 1.04 million but are 14.0 percent lower than a year ago. The median price in the Midwest was $131,000, which is 7.8 percent below February 2008.
In the South, existing-home sales rose 6.1 percent to an annual pace of 1.74 million in February but are 11.2 percent below February 2008. The median price in the South was $146,700, down 10.0 percent from a year ago.
Existing-home sales in the West increased 2.6 percent to an annual rate of 1.20 million in February and remain 30.4 percent higher than a year ago. The median price in the West was $204,600, which is 30.3 percent below February 2008.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
# # #
NOTE: References to performance in states or metro areas are from unpublished raw data used to analyze regional trends; please contact your local association of Realtors® for more information.
1The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau's series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample - more than 40 percent of multiple listing service data each month - and typically are not subject to large prior-month revisions.
Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.
2The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.
3Total inventory and month's supply data are available back through 1999, while single-family inventory and month's supply are available back to 1982.
4Because there is a concentration of condos in high-cost metro areas, the national median condo price generally is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.
Existing-home sales for March will be released April 23. The next Pending Home Sales Index & Forecast is scheduled for April 1; release times are 10 a.m. EDT.
The Greater Washington Economic Conference took place January 13th. Stephen S. Fuller, Ph.D., a Dwight Schar Faculty Chair, University Professor and Director of the Center for Regional Analysis, School of Public Policy at George Mason University, presented his prognosis on the state of the Greater Washington economy and the near term outlook for 2009.
Dr. Fuller says "The payroll job loss is likely to go deeper and longer - perhaps 18 to 20 months. There are currently 13 million unemployed, and many of these people will stay unemployed because the new jobs will have different qualifications than those for the people getting laid off. He predicted oil will still be below $80 per barrel in 2011. Normally there are 5 million house sales per year (it got up to 7 million a few years ago), and we are currently around 4.5 million now. Consumer spending will be a negative 1% in 2009 vs the normal 2.5% growth per year.
The Washington economy will have a 1.5% growth in GDP vs the negative nationally due the presence of the federal government. Where Detroit has autos; LA, films; Houston, oil; a third of our economy is directly tied into the feds, and that component is rising. Federal spending here will total some $135 billion in 2009. Federal procurement dollars have tripled over the last 10 years with much of the corresponding job growth going to Northern VA.
Job growth has averaged 46,500 per year since 1991 with some recent years as follows:
Washington is double the national job growth rate in professional and business services which have an annual salary of $75,000. Due to the region's wealth, our retail trade job growth is 3 times the national average, and other services (such as daycare, etc.) twice. Steve sees the spread between our unemployment rate and the national rate (now 3%) perhaps growing to a 4% spread.
He thinks our economy will begin to rebound the second half of 2009 with a total net new job growth of 230,300 for the region over the next 5 years as follows:
Of these new jobs, Northern VA will have 125,900 and Suburban MD, 66,000.
Needless to say, we are very fortunate to be living and working in this area for a number of reasons. Let us hope we can take advantage of the opportunities that may be more evident and attainable here than in many other markets.
Estimates suggest that the Washington, D.C. area will be flooded with more than four million visitors for the January 20th inauguration of President-Elect Barack Obama. And yet the number of hotel rooms sits at just 80,000, with many already sold out. That's why Long & Foster Real Estate, Inc. has set up a special site (www.january20.us) to help you find appropriate lodging for the night, weekend, or week of the inauguration. Whether you plan to attend the parade, a ball, the swearing-in ceremony, or any other inaugural festivity, you can do so from the comfort of a well-appointed rental with easy access to the center of activity. A variety of residences, including houses, townhouses, apartments, and condos, are available in a number of surrounding regions and states. Use this site to find one that meets your needs or contact me directly for assistance - jan.brito@longandfoster.com
Owners: Enroll your property in a program specifically created for the 2009 Inauguration with the expertise and support of Washington's leading REALTORS®, Long & Foster.
We provide:
Licensed in MD, VA, DC. Certified Residential Specialist. Accredited REO Agent. I work with buyers, sellers, and investors. Based in Montgomery County.
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