Momentum Slows as Pending Home Sales Drop

Pending home sales down 1.4%

Month over month, contracts to purchase existing homes declined 1.4%, the second month-over-month drop in three months. The year-over-year trend, however, is in its fourteenth month of consecutive gains — demonstrated by the 80 metropolitan areas that made this month’s “Improving Markets Index,” which is compiled by the National Association of Homebuilders and First American.

Limited listings may be behind the decline

The chief economist of the National Association of Realtors (NAR), Lawrence Yun, commented that “buyer interest remains strong but fewer home listings mean fewer contract signing opportunities.” Single-family homes on the market in June went down 3% from their levels in May and a whopping 24% from June of last year, the biggest year-over-year decrease in more than 30 years. Slow processing of distressed properties along with homeowners unwilling to sell their home when the current value is so much less than what they paid are the primary causes.

Supply and demand pressures helping stabilize the market

As inventories go down, the low home prices and record-breaking low mortgage rates continue to drive demand, which means that many listings — those priced appropriately for the current market condition — are receiving multiple offers, allowing sellers more choice picking a buyer and the terms of the sale.

Via Realty Times and Greenwich Post and NAHB.

Short Sale Success: Key is to Change Our Mindset!

In any business discipline, having the proper mindset is the key to a successful business venture. This holds true in the Real Estate industry. Now more than ever, having the proper “Short Sale Mindset” is a key ingredient to a successful short sale transaction. In order to have the proper” Short Sale Mindset” we need to ask ourselves:

What are the parties involved thinking?

During our nationwide educational seminars regarding the short sale process, we have found the following mindsets to permeate the industry:

• Listing Agents - The short sale process is too lengthy. It is impossible to deal with the short selling banks.
• Buyers – The short sale process takes too long. We want an answer from the short selling bank ASAP. Why should I wait to purchase a short sale when I can purchase a non- distressed asset?
• Sellers - What is the point? I am just going to let the bank foreclose.
• Banks – Their mindset changes all the time!

Click on the link below and continue reading this article.

Short Sale Success: Key is to Change Our Mondset!

Three months of record low rates come to an end

Average rate for 30-year fixed up to 3.55%

The last week in July saw the average rate for a 30-year fixed drop to a historic low of 3.49 percent. Last week, Freddie Mac reported that the average rate had edged up to 3.55 percent — still significantly lower than August a year ago, when the average rate was 4.39 percent.

Year-over-year average rates still significantly lower

For the week ending, Freddie Mac reported these average rates:

• 30-year fixed-rate mortgages—
  • last week: average 3.55 percent
  • prior week: average of 3.49 percent
  • same time last year: 4.39 percent
• 15-year fixed-rate mortgages —
  • last week: average 2.83 percent
  • prior week: average of 2.80 percent
  • same time last year: 3.54 percent
• 5-year adjustable-rate mortgages —
  • last week: average 2.75 percent
  • prior week: average of 2.74 percent
  • same time last year: 3.18 percent
• 1-year ARMs —
  •  last week: average 2.70 percent
  • prior week: average of 2.71 percent
  • same time last year: 3.02 percent

Better than expected job numbers for July help push rates

July saw 163,000 jobs added, which was better than expected than the 100,000 jobs experts had anticipated. The first quarter of 2012 averaged 226,000 jobs per month — a rate that fell off sharply in the second quarter. From April to June, an average of just 75,000 jobs were added each month. Although the national unemployment rate rose from 8.2 percent to 8.3 percent, the job market numbers were enough to spark activity in the stock market and provide a gentle nudge to mortgage rates.