Spring 2012 Homes Sales Expected To Set Records

Great News for housing…FINALLY!

Home sales in the U.S. probably climbed in January to the highest level since May 2010, adding to evidence the housing market is regaining its footing, economists said reports this week will show.
Combined purchases of new and existing houses rose to a 4.97 million annual rate from 4.92 million in December, according to the median forecast in a Bloomberg News survey. Claims for jobless benefits held near the lowest level since 2008, bolstering consumer confidence, other reports may show.

A strengthening job market, combined with record affordability driven by the drop in home prices and mortgage rates, will probably keep underpinning demand. Nonetheless, the Federal Reserve and Obama administration are striving to find ways to lend the industry additional assistance amid concern that mounting foreclosures will continue to hinder the recovery.

“Home sales have bottomed, and from here on, we should see a moderate pickup,” said Yelena Shulyatyeva, an economist at BNP Paribas in New York. “Hiring is improving slowly, so that’s helping.” More policy efforts are needed as “we still can’t rely on housing to recover on its own,” she said.

The National Association of Realtors will release data on existinghouse sales on Feb. 22. Purchases increased 0.9 percent to a 4.65 million annual rate, following a 4.61 million pace in December, according to the Bloomberg survey median.

Sales of new homes climbed to a 315,000 annual rate from 307,000 the prior month, the survey median showed. The report is due from the Commerce Department on Feb. 24. Last year marked a record low for the industry in data going back to 1963, as builders sold 302,000 homes, down 6.2 percent from 2010.

More Homebuilding

Reports last week indicated housing is on the mend. Builders broke ground on more homes than forecast in January, helped by warmer weather, and construction permits also advanced. The National Association of Home Builders/Wells Fargo index of builder confidence climbed in February to the highest level since May 2007.

Beazer Homes USA Inc. (BZH) reported that orders jumped 36 percent in the final three months of 2011 from a year earlier, and closings on new houses surged more than 60 percent. The Atlanta-based builder said it expects to sell more properties this year than last.

“While our visibility into the economic conditions for the remainder of the year is limited, I believe that we will benefit from a gradually improving housing market,” Allan Merrill, chief executive officer, said on an earnings call on Feb. 2.

Build Shares

Investors also are upbeat about prospects. The Standard & Poor’s SupercompositeHomebuilding Index (S15HOME) has advanced 21 percent since the end of last year, outpacing an 8.2 percent gain in the broader S&P 500.

Policy makers are working to help distressed homeowners. The top five mortgage lenders this month reached a $25 billion settlement with 49 states and the U.S. government over the use of faulty paperwork in foreclosures.

Fed Chairman Ben S. Bernanke said the central bank’s efforts to spur growth are being blunted by impediments to mortgage lending, and called for more steps to heal the housing industry.

“The economic recovery has been disappointing in part because U.S. housing markets remain out of balance,” Bernanke told homebuilders on Feb. 10 in Orlando, Florida. “We need to continue to develop and implement policies that will help the housing sector get back on its feet.”

One asset has been the improvement in employment. The jobless rate fell in January to a three-year low of 8.3 percent, and payrolls rose by 243,000 workers.

Fewer Firings

Firings are also waning, Labor Department figures may show on Feb. 23. Initial joblessclaims rose last week to 355,000 after reaching a four-year low the prior week, according to the median forecast in the Bloomberg survey.

Greater affordability is also supporting home demand. The National Association of Realtors’measure of whether households earning the median income can afford a median-priced house at current interest rates reached a record in the last three months of 2011.

Among other reports this week, the Thomson Reuters/University of Michigan final index of consumer sentiment rose to 72.8 in February from a preliminary reading of 72.5, economists in the Bloomberg survey predicted. The data will be released Feb. 24.

Bloomberg Survey

==============================================================
                        Release    Period    Prior     Median
Indicator                 Date               Value    Forecast
==============================================================
Exist Homes Mlns          2/22      Jan.      4.61      4.65
Exist Homes MOM%          2/22      Jan.      5.0%      0.9%
Initial Claims ,000’s     2/23     18-Feb     348       355
U of Mich Conf. Index     2/24     Feb. F     72.5      72.8
New Home Sales ,000’s     2/24      Jan.      307       315
New Home Sales MOM%       2/24      Jan.     -2.2%      2.6%
==============================================================

Source: Bloomberg http://www.crackerjackagent.com/blogs/1787/167/spring-2012-homes-sales-expected

Evansville Real Estate News Letter for February 2012

Market Watch

January 2012 closed volume was the best January our market had seen in four years. Closed sales in January 2009 through 2012 have been; 197, 198, 220 and 241. Although January is typically the slowest month of the year for real estate closings this 9.5% increase in 2012 following the 11.1% increase in 2011 suggests that our market is showing steady improvement. Our local figures mirror the nation which also had a bump in January volume.

Although resale home sales are off to a good start new home construction is still slow. Just a little over 300,000 new homes were built nationwide last year. Prior to the financial crisis new home construction had not been less than 1 million units for 15 consecutive years. This slowdown will also improve. The short explanation is that there is too much supply and too little demand. There are currently about 1 ¾ million vacant homes in the U.S. Until the number of vacant homes declines there is not enough demand to warrant significant new home construction. A normal number would be in the 1 ¼ million range. The good news is that the number of vacant homes continues to decline. I believe we are 12-18 months from getting back to normal levels. In the meantime I expect continued but gradual improvement the real estate market.

Recently our MLS (multiple listing service) became a BLC (broker listing cooperative). The reason for this change is that national aggregators of real estate information have, in many cases, hijacked the term MLS. REALTOR organizations did not trademark the term decades ago and it is now too late. By switching to a BLC we will be better able to assure the public that our information is both complete and accurate. Many national companies advertise and solicit leads through their websites. They offer valuation data and show homes for sale. Unfortunately their data is almost always incomplete and frequently inaccurate. The best way to get accurate, complete real estate information is to contact me or go to FCTuckerEmge.com or TuckerMobile.com I can help you with any real estate information you need and you can be sure the information is complete and accurate.

You can reach me by phone at 812-499-9234 or by email at Rolando@RolandoTrentini.com

Should It Be a New or Pre-Owned Home?

January’s typical Evansville homebuyer assumes that buying a pre-owned residence saves money. Period. And in fact, most often that is true. Buyers rightly expect that pre-owned houses are more affordable than comparable new homes for sale. But what about the buyer who can qualify for a slightly higher mortgage? Would it be a better idea for them to also consider new homes for sale rather than to simply fixate on the immediate cash savings that go along with buying an older property?

The fact is, there are both benefits and drawbacks that deserve looking at no matter which choice you wind up making.

One practical advantage to buying new homes for saleis that you know that you and your family will be living in a house built to conform to the latest standards in materials and construction. Evansville building codes are continually adopting advances in energy efficiency and materials sustainability. They automatically reflect the community’s experience with construction techniques: what works and what doesn’t; what lasts longest; what’s safe. With contractors and inspectors both working the insure that new homes for sale are built to code; the result is an extra dose of peace of mind when it comes to the durability you can expect in a new home.

Another advantage to buying a newly built house is the pleasure and convenience of living in a home with brand new features. No time-consuming and costly remodeling will be needed to obtain the extra pride of ownership that go with a sparkling new kitchen and bathrooms boasting the latest fixtures. And it’s often the case that newly-built homes for sale better reflect today’s lifestyle patterns. Twenty-first century floor plans apportion space in ways that agree with most people’s living preferences, so new homes for sale in today’s market are more likely to accommodate modern entertainment systems (just as they frequently leave less space for gigantic dining room tables).

In contrast, one disadvantage to purchasing some of the new homes for sale can be a tradeoff in lot size. Though not always the case, older developments sometimes reflect an earlier era which accommodated smaller populations featuring less crowded landscapes.

Of course it’s your budget that will largely determine which combination of neighborhood and new or pre-owned home that will make the best fit for you and your family. The wisdom of planning carefully before investing hard-earned money in any property goes without saying. Since you are looking forward to many years of occupancy in either a pre-existing or new home for sale, I hope you will contact me for a consultation. I know the area and can help you sort out the choices that are available right now. You can call me at 812-499-9234 or you can email me at Rolando@RolandoTrentini.com

Why Purchase Title Insurance

A real estate purchase is one of the best investments you can make — so be certain to protect your land ownership against possible title problems that can hinder the transfer and marketability of your real property. These problems are defects and occur before the date of the policy and remain undisclosed until sometime later. Even the most thorough search of the public records cannot reveal some the "hidden" hazards.

A one-time premium will safeguard your property from actual loss and defense costs (unless specifically excluded), up to the policy amount, resulting from any risk covered by your policy. A mortgage policy protects only your lender against tide defects. Purchasing an owner's policy of tide insurance will protect your interests. Title insurance covers tide defects such as:

1. Forged deeds, mortgages, releases of mortgages and other instruments.

2. False impersonation of the true owner of the land or of his consort.

3. Instruments executed under fabricated or expired power of attorney (death).

4. Deeds apparently valid but actually delivered after death of grantor or grantee, or withoutconsent of the grantor.

5. Deeds by persons of unsound mind.

6. Deeds by minors.

7. Deeds not properly delivered.

8. Deeds that appear to convey title but are really mortgages.

9. Outstanding prescriptive rights not of record and not disclosed by survey.

10. Descriptions apparently, but not actually, adequate.

11. Duress in execution of instruments.

12. Defective acknowledgment due to lack of authority of notary. (Acknowledgement takenbefore commission or after expiration of commission)

13. Deed or property recited to be separate property of grantor, which is in fact, community or
joint property.

14. Deed from bigamous couple. (Prior existing marriage in another jurisdiction)

15. Undisclosed divorce of spouse who conveys as sole heir of deceased consort.

16. Undisclosed heirs.

17. Misinterpretation of wills, deeds and other instruments.

18. Birth or adoption of children after date of will.

19. Children living at date of will but not mentioned therein.

20. Discovery of will of apparent intestate.

21. Discovery of later will after probate of first will.

22. Administration of estate and probate of wills of persons absent but not deceased.

23. Conveyance by heir, devisee or survivor of a joint estate who murdered the decedent.

24. Deed from trustee of purported business trust, which is in fact, a partnership or joint stock
association.

25. Deed of executor under non-intervention will when order of solvency has been fraudulently
procured or entered.

26. Deeds to or from corporations before incorporation or after surrender, or forfeiture, ofcharter.

27. Claims of creditors against property conveyed by heirs/devisees within prescribed periodafter owner's death.

28. Mistakes in recording legal documents. For example, incorrect indexing, errors intranscribing and failure to preserve original instrument.

29. Record easement, but erroneous ancient location of pipe or sewer line, which does notfollow route of granted easements.

30. Special assessments where they become liens upon passage of resolution and beforerecordation or commencement of improvements for which assessed.

31. Want of jurisdiction of person in judicial proceedings.

32. Failure to include necessary parties in judicial proceedings.

33. Federal estate and gift tax liens.

34. State inheritance and gift tax liens.

35. Errors in tax records. For example, listing payment against wrong property.

36. Ineffective waiver of tax liens by tax or other governing authorities repudiated later bysuccessors.

37. Corporation franchise taxes as lien on all corporate assets, notice of which does not have to
be recorded in the local recording office.

38. Erroneous reports furnished by tax officials, but not binding on municipality.

39. Tax homestead exemptions set aside as fraudulently claims.

40. Lack of capacity of foreign personal representatives and trustees to act.

41. Deeds from nonexistent entities.

42. Interests arising by deeds to fictitious characters to conceal illegal activities on the premises.

43. Deed in lieu of foreclosure set aside as being given under duress.

44. Ultra vires deed given under falsified corporate resolution.

45. Conveyances and proceedings affecting right of servicemen protected by the Soldiers and
Sailors Civil Relief Act.

46. Federal condemnation without filing of notice. Federal law does not require filing of noticeof taking in local recording office.

47. Break in chain of title beyond period of examination or public records where running ofadverse possession statue has been suspended. True owners are incompetent, absent orincarcerated or the sovereign holds title.

48. Deed from record owner of land where he has sold property to another purchaser onunrecorded land contract and the purchaser has taken possession of premises.

49. Void conveyances in violations of public policy: payment on gambling debt, payment forcontract to commit crime or conveyance made in restraint of trade

Home sales point to continued 'stabilization' period

Home sales in the Evansville area were up nearly 15 percent in the third quarter of 2011, compared to the same period last year, with Gibson County the only county in a four-county Southwestern Indiana metro area showing a slight decline.

At the same time, Gibson County led the way with a sharp increase in median home prices, an apparent result of near-back-to-normal operations at Toyota Motor Manufacturing Indiana near Princeton.

Median prices also rose in Vanderburgh and Warrick counties. The median increase in the four-county area was more than 10 percent better than in the July-September period last year, with a decline reported only in Posey County.

Still, the developments last quarter are part of a year where home sales in Vanderburgh and the three surrounding Hoosier counties together are lagging behind those in the first nine months of 2010. But average home prices for the year to date are up. Sales so far this year are 4.8 percent behind last year, but the average sale price is up 4.6 percent and the median sales price is up 3.1 percent.

The new quarterly statistics are "part of a period of stabilization we've seen over the past two years" in local residential sales, said Bob S. Reid, president of Appraisal Consultants Inc. of Evansville, which compiled the data. "Property values are holding, and sales are steady also," he said. The period from 2007 through most of 2009 saw a substantial decline.

Read more here: Evansville Courier-News

Source: http://www.americantowns.com/in/evansville/news/home-sales-point-to-continued-039-stabilization-039-period-7209434

Market Watch News Letter for September 2011

2011 continues to be a year of distinctly different halves. For the first five months of this year local sales, in units, compared to last year were down almost 13%. For the past 3 months the same comparison shows that unit sales are up over 12%. I believe that by year end we will have sold slightly more units than we did in 2010 and I’m positive that the dollar amount of sales volume will be significantly higher than last year; perhaps close to 10% higher.

The supply of homes for sale on the market has also been more stable and more in balance. For the 10 months starting last July there was an average of just over 10 months supply, with a high of over 13 months supply. Since May we have averaged just under 8 months supply with a high of less than 9 months.

I recently read an article in Inman News discussing the 10 markets nationwide that have fared both best and worst in housing price recovery over the past 5 years. The markets studied are all larger than our area, but not surprisingly when I compare our local data to the national figures we are very well. The worst areas consisted of 6 markets in California, two in Florida plus Phoenix and Las Vegas. The decline in prices ranged from 67% to 56%. The best markets were less concentrated and ranged from a 17% increase to a .6% increase. The study was based on July prices only. Locally our average July price was up 1.9% from July of 2006, which would have ranked us in the top ten nationally. While I don’t place a great deal of confidence in some of the national studies I see, I do have a lot of confidence in our market and I’m happy I live in the Midwest. I expect the remainder of this calendar year to stay relatively consistent for our local real estate market, even in light of some disturbing national economic trends.

We are pleased to report that for the month of September we have added 3 new listings. Our listing inventory is low compared to years past. This is good for our sellers. From our side we certainly would like this number to increase. We are kindly asking you to keep an ear out for any information you can pass on to us when you hear that someone in your circle of friends is interested to sell their home.

Please let me know if I can help or any of your friends price their current home or look for your next home. You can always find me at FCTuckerEmge.com or TuckerMobile.com, and keep in mind weekly area open houses are now posted at TuckerOpenHouses.com starting Thursday of every week.

A Monthly Newsletter from TheTrentiniTeam with F.C.TuckerEmge Realtors

a happy home

Did you know that a typical U.S. home emits more carbon dioxide than two average cars? Or that the average U.S. household spends $1,900 per year on utility bills? Earth Day is just around the corner, and serves as a great reminder to consider new ways to become more eco-friendly. Below, tips for your home that will benefit the earth and your wallet.

 

Start with heating and cooling

Heating and cooling systems drain more energy dollars than any other system in your home. Consider programmable thermostats, upgrades to current equipment, regular replacement of filters, and drawing the shades on your windows to save energy use and cost.

 

Address leaks

Check the insulation in your attic, ceilings, basement walls, floors and crawl spaces to increase the comfort of your home while reducing heating and cooling needs.

Watch your watts

Changes to your lighting are one of the most immediate ways to reduce energy costs. Use energy-efficient bulbs and consider occupancy sensors, dimmers and timers for high-use areas such as the kitchen, living room and outside.

 

Monitor appliance consumption

Shop for new appliances with two price tags in mind: the initial cost of the appliance itself, and what it will cost you to operate that machine over its lifetime.

 

Want to start conserving but don’t know where to start? Here’s a simple guide to the steps you should take to maximize energy and cost savings.

 1.            Find out which appliances or areas of your home use the most energy. This can be done with your utility company, or you can do an audit yourself.

 2.            Compare your current energy costs with your

areas of greatest energy loss. Determine your energy efficiency investment solution and how long it will take to pay off in the long term.

 3.            Weigh factors such as “How long will I be in my home,” “Does the work require a contractor?” and “What is my budget and how much do I have for maintenance and repair?” before developing

a plan.

 Learn more about smart energy conservation by visiting http://www.energysavers.gov/

WARRANTY WISDOM

Home service agreements give you the assurance that there is someone to help at any time with problems on covered items. A HomeTrust home service agreement gives you the protection you need against breakdowns of covered appliances and major systems such as plumbing, heating, electrical and air conditioning.

Americans Confident In Recovery Of Real Estate Market

The majority of America’s potential home buyers and sellers—68%—believe that the real estate market and property values will recover in the next year or two, according to a survey released today by Prudential Real Estate and Relocation Services, Inc., a Prudential Financial, Inc. [NYSE:PRU] company.
That’s way up from last April, when only 47% of people who answered a similar survey thought home prices would recover that fast. Despite the market volatility of the past few years, 86% of Americans believe real estate is a good investment.
The Prudential Real Estate Outlook Survey reveals that six in 10 respondents are more interested in buying real estate (58%) and are optimistic about buying given the momentum of the economic recovery (59%).
It also shows that although the price of many Americans’ homes declined during the recession, 89% recognize they can also buy a new house at a lower price.
“A key takeaway from the survey is although consumers recognize that it is a good time to buy, they are concerned about their ability to sell their homes. This is one of the reasons the market is still struggling to recover,” said James Mallozzi, chief executive officer of Prudential Real Estate and Relocation Services, Inc.
For those on the fence about buying, uncertainty about selling an existing home (77%), concern about getting a fair price for the home (67%), and emotions (58%) are holding them back.
Despite the tough market, 78% of Americans who sold a home were satisfied with the sale. Of these, 32% were very satisfied with the final price of their home and 46% were grateful they were able to sell given market conditions. A relatively small number, 22%, were disappointed or resentful about the price they received for their home.
Source: Prudential Real Estate and Relocation Services, Inc

Read more: http://www.houselogic.com/news/articles/americans-confident-recovery-real-estate-market/#ixzz1GQ2CqDfH