Rising Sales in Most States, and Rising Prices in Many Metros (at Last!)

Rising Sales in Most States, and Rising Prices in Many Metros (at Last!)

by NAR Research Staff



There was good news for most states in the 4th quarter of 2009. Existing-home sales rose from the 3rd to 4th quarter in 48 states and the District of Columbia. In fact, 32 states experienced double-digit quarterly gains. On a year-over-year basis, resales were higher in 49 states and the District, with all but three posting double-digit annual increases.



According to the latest quarterly statistics released by NAR Research, total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate of 6.03 million in the fourth quarter - up from 5.29 million in the third quarter. Existing-home sales rose 27.2 percent from their 4th quarter 2008 pace of 4.74 million units. As a further sign of housing market stability, distressed properties accounted for 32 percent of fourth quarter transactions; that is down from



37 percent a year earlier.



Metropolitan Area Home Prices

There was some good news on the home price front as well. In the fourth quarter, 67 out of 151 metropolitan statistical areas boasted higher median existing single-family home prices compared with prices registered in the fourth quarter of 2008. In the third quarter only 30 MSAs showed annual price increases. Sixteen metros experienced double-digit increases. On a national basis, the news was not quite as good. The national median existing single-family home price was $172,900, 4.1 percent below the price registered in the fourth quarter of 2008. But on the positive front, that was the smallest price decline in over two years. It should be noted that the most recent monthly price data showed a broad stabilization in home prices.



In the condo sector, metro area condominium and cooperative prices - covering changes in 54 metro areas - showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8 percent from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier. In the third quarter only four metros experienced annual price gains.



Regional Differences

All four regions of the country saw rising home sales. Existing-home sales in the Northeast rose 11.1 percent from the 3rd quarter to 1.03 million units; Northeast resales were 33.6 percent higher than a year ago. The median existing single-family home price in the Northeast declined 5.6 percent to $234,900 in the fourth quarter from the same quarter in 2008, but with widely varying conditions. Markets with lower median prices that have avoided wide swings, such as Buffalo, are generally showing consistent price gains. And even some of the higher cost areas such as Nassau-Suffolk (NY) and Boston (MA) are exhibiting signs of stabilization.



In the Midwest, existing-home sales jumped 14.5 percent (on a quarter to quarter basis) to a pace of 1.38 million units and were 29.9 percent above a year ago. The median existing single-family home price in the region rose 1.1 percent from a year ago to $141,100. In fact, the Midwest accounted for the majority of metro areas experiencing double-digit price gains.



Existing-home sales in the South increased 13.8 percent from the 3rd to the 4th quarter of 2009 to an annual rate of 2.23 million units; resales in the region were 28.2 percent higher than in the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4 percent from a year earlier.



The West experienced a 16.2 percent increase in existing-home sales, posting an annual rate of 1.38 million units. On a year-over-year basis, resales in the region were up 18.2 percent. The median existing single-family home price in the West did decline 8.9 percent from a year ago (to $227,200), but many metros showed price gains.



Behind the Numbers

What's driving the rising home sales and stabilizing prices? The dominant factor is the home buyer tax credit. Buyers are responding to the program, and that - combined with record low mortgage interest rates - are attracting purchasers to the market.



One cautionary issue down the road will face buyers. They will need to accelerate their buying plans if they want to qualify for the tax credit. While repeat buyers do not have to sell their existing home, all buyers must occupy the property they purchase as a primary residence in order to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.



Near-term market conditions will remain favorable. While interest rates are expected to trend up later this year, affordability continues at healthy levels. In general, housing market conditions are good - home prices are steadying and inventory, while drawing down, continues to be plentiful offering potential buyers a variety of options.



For the latest statistics on existing-home sales by state and median home prices by metropolitan area, visit






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Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
http://www.grhomelink.com/
Email: jeff@grhomelink.com
Email: malinda@grhomelink.com

January, 2009 vs. January, 2010...Things are Improving!!!

“On a Positive Note”


Dear Friends,

I hope that you find the first edition of my monthly newsletter to be very beneficial. The information provided will include an update on the Grand Rapids real estate market, as well as current homebuyer incentives. I am excited to provide this “positive” information to you, while always welcoming your feedback. With that said, “The Grand Rapids real estate market is recovering!”

During the month of January, 2009, 363 homes sold in Kent and Ottawa counties for an average sale price of $105,387.00. Average days on the market were 88 days. Total inventory of listed homes was 5,657. This past January’s (2010) numbers were more exciting; 384 homes sold for an average sale price of $122,782.00. Average days on the market fell to 84 days. Total inventory of homes listed was 4,518.

This is truly wonderful news for our local economy!

Please remember, the up to $8,000 tax credit for 1st time homebuyers has been extended to contracts dated on or before 4/30/10. This is money directly in your pocket, and you can receive the credit within weeks of closing.

A new feature of the tax credit allows anyone purchasing a primary residence to receive a credit of $6,500. You do not need to be a 1st time buyer. That’s right, if you have owned a home for 5 of the last 8 years as a primary residence and purchase another primary residence, you will receive up to $6,500 within weeks of closing. You may have sold your home previously; rent it, sell it, or keep it and still qualify for this program. As with any government program there is some fine print which I am very familiar with and would be more than happy to discuss with you.

Interest rates are great! Rates are at historic lows, but are expected to increase this spring as the Fed eases out of the mortgage backed securities market. There are still zero and low down payment programs available. Now is the time to make your move!

Thank you again for your business and referrals. If there is ever anything that I can do to assist you or anyone you know, please don’t hesitate to contact me. Referrals of Listing or Buyer clients directly from friends and past customers are the heartbeat of my business! Simply give me a call with their name and I will do the rest.



**Information provided by the Grand Rapids Association of Realtors/Equal Housing Opportunity. If you have a brokerage relationship with another agency, this is not intended as a solicitation. All information deemed reliable but not guaranteed.


Call us with all of your Real Estate Needs! 616.366.5240
Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website: http://www.grhomelink.com/
Email: jeff@grhomelink.com
Email: malinda@grhomelink.com

GREAT GRANDVILLE FIND FOR UNDER $100,000.00

Call us with all of your Real Estate Needs! 616.366.5240
Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

Happy Holidays!

Wyoming Market Report November 2009

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Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

Grandville Market Report November 2009

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Call us with all of your Real Estate Needs! 616.366.5240

Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

East Grand Rapids Market Report November 2009

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Call us with all of your Real Estate Needs! 616.366.5240

Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

Cascade Market Report November 2009

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Call us with all of your Real Estate Needs! 616.366.5240

Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

Byron Center Market Report 2009

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Call us with all of your Real Estate Needs! 616.366.5240

Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

Kentwood Market Report November 2009

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Call us with all of your Real Estate Needs! 616.366.5240

Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

Caledonia Market Report November 2009

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Call us with all of your Real Estate Needs! 616.366.5240

Have a Wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

Grand Rapids November 2009 Market Review

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Call us with all of your Real Estate Needs! 616.366.5240

Have a Wonderful Day!

The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

Grand Rapids Area Market Report November 2009

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Call us with all of your Real Estate Needs! 616.366.5240

Have a wonderful Day!
The Northouse Team ~ Five Star Real Estate
Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

Rockford November 2009 Market Report

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Call us with all of your Real Estate Needs! 616.366.5240

Have a wonderful Day!

The Northouse Team ~ Five Star Real Estate

Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

Home Equity Lines Back Again!

Daily Real Estate News

December 15, 2009

Banks Again Offering Home Equity Lines

Now might be a good time for homeowners who still have plenty if equity in their home to tap into it.
Lenders are again writing home equity lines of credit, says MortgageBot, which processes real estate loans.
Homeowners with more than 20 percent of equity in their homes may find the HELOC a better source of emergency cash than a credit card as long as they don’t exhaust their equity.

Source: CNNMoney.com, Linda Stern (12/14/2009)

http://www.realtor.org/

Call us with all of your Real Estate Needs! 616.366.5240

Have a wonderful Day!
The Northouse Team ~ Five Star Real Estate

Jeff Northouse ~ Malinda Root
GR Homelink Website
Email Jeff
Email Malinda

Your Homes Winter Checklist

November is here, and winter’s cold winds are just around the corner. Is your home ready? Fall, what little is left of it, is a good time to prepare for the cold weather while outside projects are still tolerable. Below are a few items you might want to add to your own personal winterization checklist:

1. Seal around the sewer vent pipe(s) in both the basement and the attic to keep your heated air inside.

2. Replace missing storm windows and/or install plastic film to block the outside drafts. Also, check to see that your weather stripping is in good shape surrounding your exterior doors.

3. Check windows to make sure they are tightly latched and the seal is free from debris.

4. Remember to close you fire damper after the chestnut’s are roasted.

5. Cover wall-mounted air conditioners with plastic film or an air-tight cover. Remove or cover window units, knowing that removal is the best choice whenever possible.

6. Install missing weather stripping around doors and caulk around window frames, but do not caulk them shut in case of emergency.

7. Remove garden hoses. Shut down and drain all outdoor faucets that may freeze, or you can have special "frost free" silcocks installed. A frost-free silcock makes it possible to use the faucet all winter since the turn-off portion of the valve is located inside the house. Make sure your underground sprinklers have been winterized properly.

8. Install a code-approved "ice-dam barrier" where ice may collect on your roof, or in your gutters. There are plenty of do-it-yourself solutions that can be installed according to your local codes, and plugged it into an approved outdoor G.F.C.I. electrical outlet. This is one thing you will never regret doing.

9. Seal any (small to big) cracks in your driveway and/or walkway before they become giant cracks in the spring. If you decide to leave the cracks exposed, water will happily make them it’s winter home. During the winter’s cold days, the water will freeze and expand. On warmer days it will melt and contract. This process will repeat all winter and before you know it, spring comes and your concrete will be “cracking up” at you! There are plenty of approved crack fillers at your local hardware for just about every type of surface you can think of.

10. A few more straggling reminders: Appropriate storage of your outdoor furniture. A change of air filters. Checking and/or or installing sump pumps in your basement, and a cleaning of your gutters and drains..

For most people, your home is the biggest investment you will make in your life. Be sure to invest the proper time and energy protecting it. Do it and your home will spend its life time protecting you and your family!

 

Have a wonderful Day!

The Northouse Team ~ Five Star Real Estate

Jeff Northouse ~ Malinda Root

GR Homelink Website

Email Jeff

Email Malinda

Last Minute Halloween Snacks!

HAPPY HALLOWEEN! We hope this beautiful fall day finds everyone well. Can you believe it is that time of year already? Just in case any of you are anything like me and find yourself scrambling for last minutes ideas for fun Halloween snacks that will be sure to please the kids, young and old alike, I found a great link that has a whole slew of fun, quick (some of them), and easy spooky snacks.  - MR

Family Fun Halloween Snacks

Fall at the Northouses' ~ Happy Trick or Treating!

Avoid These 10 Common Mistakes When Buying Property

Avoid These 10 Common Mistakes When Buying Property

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REALTOR® Magazine-Daily News-Global Housing Prices Increase

REALTOR® Magazine-Daily News-Global Housing Prices Increase

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FROM:The National Association of Realtors®, “The Voice for Real Estate,”

Record Streak Continues for Pending Home Sales


Washington, October 01, 2009

Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in August, rose 6.4 percent to 103.8 from a reading of 97.6 in July, and is 12.4 percent above August 2008 when it was 92.4. The index is at the highest level since March 2007 when it was 104.5.

Lawrence Yun, NAR chief economist, said not all contracts are turning into closed sales within an expected timeframe. “The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules,” he said. “No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month.”

The Pending Home Sales Index in the Northeast jumped 8.2 percent to 85.3 in August and is 12.0 percent higher than August 2008. In the Midwest the index rose 3.1 percent to 90.8 in August and is 7.6 percent above a year ago. In the South, pending home sales increased 0.8 percent to an index of 104.6 and is 8.2 percent above August 2008. In the West the index surged 16.0 percent to 130.5 and is 22.3 percent above a year ago.

“There is likely to be some double counting over a span of several months because some buyers whose contracts were cancelled have found another home and signed a new contract to buy,” Yun explained. “Perhaps the real question is how many transactions are being delayed in the pipeline, and how many are being cancelled? Without historic precedents, it’s challenging to assess.”

Yun also noted that the data sample coverage for pending sales is smaller than the measurement for closed existing-home sales, so the two series will never match one for one.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said first-time buyers need to act now. “Potential first-time buyers must make a contract offer very soon to have a reasonable chance of qualifying for the tax credit,” he said. “Congress needs to extend and expand this program because it’s stimulating the economy and reducing inventory close to price stabilization points.”

McMillan said a sizable number of homebuyers already in the pipeline could be let down because of the tight deadline. “We know there is a pent-up demand because sales are below normal levels for the size of our population. The faster we absorb excess inventory, the sooner we’ll turn the corner on home prices, prevent additional families from becoming upside-down in their mortgages, and give Wall Street the confidence to extend credit to other sectors,” he said. “Each home sale pumps an additional $63,000 into the economy through related goods and services, so the benefits of extending and expanding the tax credit far outweigh the costs.”

Yun said the forecast for home sales and prices depends very much on whether a tax credit is extended. “All we can say for certain is sales will decline when the tax credit expires because we are not yet on a self-sustaining recovery path. It also raises a risk of a double-dip recession,” he said. “Extending and expanding the tax credit is the best tool in our arsenal to encourage financially qualified buyers to stimulate the economy and help reduce the budget deficit.”

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.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.