Malisa Spivey & Damon Crelia

Big Rebound in Existing-Home Sales Shows First-Time Buyer Momentum

Print Article

RISMEDIA, October 26, 2009-Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®. Existing-home sales-including single-family, townhomes, condominiums and co-ops-jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2% higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007.

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. "Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home," he said. "We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery."

Even with the improvement, Yun said the market is underperforming. "Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet," he said. "We're getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history."

Early information from a large annual consumer study to be released November 13, the 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows that first-time home buyers accounted for more than 45% of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29% of transactions in September.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said affordability conditions remain historically high. "Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970, but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market," he said. "Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average," McMillan said.

Total housing inventory at the end of September fell 7.5% to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0% below a year ago.

"The current housing supply is the lowest we've seen in two and a half years," Yun said. "If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06% in September from 5.19% in August; the rate was 6.04% in September 2008. The national median existing-home price for all housing types was $174,900 in September, which is 8.5% lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

Single-family home sales rose 9.4% to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7% above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which is 8.1% below a year ago. Existing condominium and co-op sales jumped 9.7% to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7% above the 561,000-unit pace a year ago. The median existing condo price was $175,100 in September, down 11.7% from September 2008.

Northeast
Regionally, existing-home sales in the Northeast increased 4.4% to an annual level of 950,000 in September, and are 11.8% higher than September 2008. The median price in the Northeast was $234,700, down 7.0% from a year ago.

Midwest
Existing-home sales in the Midwest jumped 9.6% in September to a pace of 1.25 million and are 7.8% above a year ago. The median price in the Midwest was $147,600, which is 1.0% below September 2008.

South
In the South, existing-home sales rose 9.0% to an annual level of 2.06 million in September and are 10.8% higher than September 2008. The median price in the South was $153,500, down 7.6% from a year ago.

West
Existing-home sales in the West surged 13.0% to an annual rate of 1.30 million in September and are 5.7% above a year ago. The median price in the West was $219,000, which is 15.0% below September 2008.

For more information, visit www.realtor.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Read more: http://rismedia.com/2009-10-25/big-rebound-in-existing-home-sales-shows-first-time-buyer-momentum/#ixzz0ViSz3IKk

Here is a wonderful list of things to do in Waco for Halloween, thanks to Kendra for typing this up! Never say you have nothing to do, because all of these activities provide something for you and the family. Get out there and support your community and most of all have fun!

List of Halloween Events and Fall Festivals in the Waco Area

Now until October 31, 2009-Kaska Family Farm Corn Maze & Pumpkin Patch

•· Bring your family and friends out to the farm for some good, clean, farmin' fun for all ages. Choose a pumpkin, get lost in our corn maze, pick flowers, ride the hayride and after dark, enjoy our haunted trail, if you're brave enough! Children's activities, Concessions, restroom facilities and free parking. Visit our website for more info!

•· $7 per person, children 3 and under are free!

•· www.kaskafamilyfarm.com

Saturday, October 24, 2009-Bledsoe Miller Fall Festival

•· 10 a.m. to 2 p.m. at Bledsoe-Miller Recreation Center, 300 MLK Blvd.

•· This is an annual program the entire family will enjoy! All ages can participate in games, crafts and food.

•· $2.00 per person

•· Contact: 254-750-8684 or www.waco-texas.com

Saturday, October 24, 2009-Safe and Spooky Community Carnival

•· 1:00-5:00pm at Waco Convention Center

•· Join the Museum and local safety and wellness organizations for a FREE Community Carnival including trick-or-treating, games, storytelling, and more! Children may dress in costumes and are encouraged to bring bags for candy and prizes.

•· FREE!

•· www.texasranger.org or call 750-8631

Sunday, October 25, 2009-Pumpkin Event at Art Center Waco

•· 3:00-6:00pm at Art Center of Waco (1300 College Drive near MCC)

•· Come enjoy apple bobbing, pumpkin carving, various games, hot dogs & drinks for sale, a pumpkin auction & a costume contest, fun for all ages!

•· FREE & open to the Public.

•· www.artcenterwaco.org/fallfestival.htm

Thursday, October 29, 2009-Halloween Carnival at Dewey Recreation Center

•· 6:00-8:00 pm at Dewey Recreation Center

•· Children are invited to join a safe, fun-filled Halloween carnival with games, candy, and a costume contest.

•· $3 per child & all ages welcome

•· Contact: 254-750-8677

Thursday, October 29, 2009-Halloween at the Pavilion

•· Come in your best Halloween costume and join the festivities at the South Waco pavilion. Prozes for best costume.

•· 6:00-7:30pm at South Waco Recreation Center

•· FREE!

•· Contact: 254-750-8650

List of Halloween Events and Fall Festivals in the Waco Area (continued)

Friday, October 30, 2009-"Halloween" Story Time

•· 10:30 am at South Waco Library, 2737 S. 18th Street at.

•· FREE story time for children ages 3-6 years old

•· For more information contact: 254-750-5942

Saturday, October 31-Central Texas Marketplace's Trunk or Treat

•· 4:00-6:00 pm-located near Panera Bread

•· Fun & Games - Spooky Inflatables

•· Costume Contest at 5:00

•· www.shopctm.com

Saturday, October 31, 2009-Trick or Treat in the Gallery

•· 5:00-8:00 pm

•· Come & see the art work and get candy and greetings from the Staff of Art Center Waco!

•· www.artcenterwaco.org/fallfestival.htm

Saturday, October 31, 2009-Zoo Boo at Cameron Park,

•· 6:00-8:00 pm

•· Adults-$7, Kids 4-12-$5, Kids 3& under-free

•· www.cameronparkzoo.com/zooparty.html

Saturday, October 31, 2009-Hewitt's 14^th Annual Children's Halloween Party

•· 6:30-8:00 pm at Hewitt Park Pavilion

•· Hot dogs, pizza, cookies, games, and costume contest

•· For children 12 & under

•· http://www.cityofhewitt.com/DocumentView.aspx?DID=173

Change Your Mindset and Thrive In 2010

(by Kendra Zadnik)

To create more business, it is not as important that you take lots of actions, but that you have identified the right actions to take. To position yourself to thrive in 2010, here are three powerful distinctions. Make some shifts in these areas and see results!

Connecting VS. Impressing

If your marketing materials and your approach in meeting new clients is to impress them with your knowledge and experience, you may be seen as one of those scary, pushy salespeople. If you show a true interest in the other person's needs and problems, you will begin to connect and build trust. The old style of marketing and promotion focused on the agent rather than the client. The new style is relationship-based. The consumer is looking for someone to trust, for someone who will listen to them and discover their needs.

We have conversations often with coaching clients who believe they need to get better at their closing skills to increase their effectiveness. Most of the time, we find they are working too hard at proving how great they are and are turning off clients because they are failing to connect. Stop working so hard and relax and just listen and connect with the potential client. It will become easier and more effective. You will get better results from listening for your clients needs and providing the services that will fill those needs.

Abundance VS. Scarcity

The mindset that business is limited and there is not enough can lead an agent to working with every potential client or prospect that comes their way. Some of this business may not be the highest and best use of your time. Stop working with the jerks. Life is too short. Stop working with people who have needs you are not qualified to help them with, such as those who want a commercial property, land, or a neighborhood outside your normal service area. Let go of these and refer them to another agent who is qualified to help them...it will be the highest dollar per hour you'll make in 2010 and the client will be better served. Stop working with buyers that are not going to buy and sellers that are going to waste your marketing dollars and cause you grief.

The scarcity mindset will cause you to make decisions that will waste your precious time. Believe that there is plenty of business for you and get choosy about working with those who fit your target market, skills and way of doing business. The universe reflects back to you the most dominant thoughts you have. Are your daily thoughts supporting the vision you have for 2010? If not, the consciousness of what thoughts you are putting out there is the first step to changing those negative thought patterns.

Fun VS. Hard Work

Don't you find it more enjoyable to do business with a relaxed, fun, loving person instead of a harried over-worked person? Taking care of yourself is a basic need if you are going to serve your clients impeccably in 2010. Take at least one day off (that means like on vacation-you don't take calls on your cell phone; someone else is covering things) every week. Schedule your 2010 vacations now. Take three-day weekends over the course of the year. If you work yourself to exhaustion regularly, you will burn out. What's more, your focus is impacted and you just don't get things done as effectively.

This distinction is also about your mindset. Do you love the real estate industry? Is your real estate practice a reflection of your values and what is really important to you? Those people who have an integrity and alignment with their core values, love what they do and have fun with it. It is not about survival and selling every day, it is about service and offering themselves to make a difference with someone else. If you aren't in that place, do some thinking about what mindset you need to shift in 2010. You'll get into the flow and find it all gets much easier.

These shifts can be scary too, because they are based on faith. Look around, though, and you'll see there are people who are connecting, having fun and have an abundantly prosperous business. If they can do it, you can do it too! You too can thrive in 2010!

What are you going to do different in 2010? Come Monday to Power Lunch to discuss more skill building tools to help you have a fantastic 2010.

Well the numbers are in and surprisingly not bad at all! A lot of Realtors will tell you that 2006 was their best year, just ask and then look at the numbers, the average sales price of a home has increased since then. If you would like to look at all the numbers or for a specific area, please visit www.mymarketreports.com

The above numbers were taken from the Waco MLS and are strictly based on residential sales only. These numbers are deemed accurate but not reliable.

Alright, Christmas is fast approaching and I am soliciting ideas for simple but heartfelt ideas for homemade gifts for past and current clients. We have done something homemade for the last 4 years and want to continue in the tradition, but we need some ideas to help the juices start flowing.

One year we made a dry erase boards, the next year we baked; cookies, chocolate covered pretzels and peanut clustes, another year we made lace christmas ornaments with the year embroidered in it, and last year we baked again. We NEED some ideas, so if all of our Active Rain Associates could help, we would gladly take the suggestions.

Thank you so much in advance for your participation. The winning idea will be sent a $50.00 Gift Certificate and hopefully tell everyone else on Active Rain that they won, free money for an idea.