Positive Real Estate News - Vol 4, Issue 1 - January 20, 2011

8/7/2019 Positive Real Estate News - Vol 4, Issue 1 - January 20, 2011

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January 20, 2011 Vol. 4, Issue 1

What are real estate professionals saying to homebuyers and sellers about current market

conditions? The successful brokers and sales associates are talking about the strengths that exist inthe market. Below are positive angles that appeared recently in the media and underscore why it is

a good time to buy real estate.

NAR: Existing Home Sales Rise 12% in DecemberSales of U.S. previously owned homes jumped more than forecast in December as buyers tried to

lock in low mortgage rates before the economic recovery pushed borrowing up further. Purchases

of existing houses, which are tabulated when a contract closes, increased 12% to a 5.28 millionannual rate, the most since May, figures from the National Association of Realtors showed today in

Washington.

Sales have been recovering steadily from depressed levels, Aaron Smith, a senior economist atMoodys Analytics Inc. in West Chester, Pennsylvania, said before the report. A better economic

backdrop should boost confidence and push potential homebuyers off the sidelines.

-- Sales of U.S. Existing Homes Jumped 12% in December to Seven-Month High,by Shobhana Chandra,Bloomberg, Jan. 20, 2010.

Home Building Permits Rise 16.7%

Permits for housing construction soared in December, while initial construction of homes declined,the government reported. The number of permits for future housing construction surged to a

seasonally adjusted annual rate of 635,000 last month, up 16.7% from the revised rate of 544,000in November, the Commerce Department said.

That was the biggest monthly rise since June 2008 and leaves the total number of permitsat the highest level since last March.

The reading was much higher than expected, with economists surveyed by Briefing.comlooking for 560,000 permits.

Last month didn't look so hot for construction, but the future looks a lot better,said Mike Larson,

a housing industry analyst for Weiss Research.We're seeing confidence creeping back into themarket and while we're not ready to go nuts building yet, with jobs starting to improve I thinkthat's going to be a catalyst to get construction going.

-- Home building permits soar 17%,by Blake Ellis, CNNMoney, Jan. 19, 2010.

Economists Look for Housing Market Improvement in 2011The housing industry is poised to gain strength this year, economic forecasts and new data

released Wednesday show. One cause for optimism: Building permits for new single-family homes

rose 5.5% last month, the third consecutive monthly increase and the strongest showing sinceMarch, the Commerce Department said.The key is job creation, says Lawrence Yun, chiefeconomist with the National Association of Realtors. When more people are working, and earninghigher incomes, home buying increases. IHS expects the economy to add 2.5 million jobs this year

and 2.7 million next year.

-- Economists: Housing Industry Looking Much Brighter in 2011,by Julie Schmit, USA Today, Jan. 20, 2010.
http://www.bloomberg.com/news/2011-01-20/existing-u-s-home-sales-jump-to-seven-month-high-as-buyers-lock-in-rates.htmlhttp://www.bloomberg.com/news/2011-01-20/existing-u-s-home-sales-jump-to-seven-month-high-as-buyers-lock-in-rates.htmlhttp://www.bloomberg.com/news/2011-01-20/existing-u-s-home-sales-jump-to-seven-month-high-as-buyers-lock-in-rates.htmlhttp://money.cnn.com/2011/01/19/news/economy/housing_starts/index.htmhttp://money.cnn.com/2011/01/19/news/economy/housing_starts/index.htmhttp://money.cnn.com/2011/01/19/news/economy/housing_starts/index.htmhttp://www.usatoday.com/money/economy/housing/2011-01-19-housing-starts_N.htmhttp://www.usatoday.com/money/economy/housing/2011-01-19-housing-starts_N.htmhttp://www.usatoday.com/money/economy/housing/2011-01-19-housing-starts_N.htmhttp://www.usatoday.com/money/economy/housing/2011-01-19-housing-starts_N.htmhttp://money.cnn.com/2011/01/19/news/economy/housing_starts/index.htmhttp://www.bloomberg.com/news/2011-01-20/existing-u-s-home-sales-jump-to-seven-month-high-as-buyers-lock-in-rates.html


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Gallup Poll: Majority Say Now is a Good Time to Buy a HouseNow is a good time to buy a house, a majority of those asked said in a recent Gallup poll. The new

poll shows that 67% of respondents think it's a buyer's market despite more than 1 million

foreclosures last year and tight credit.

Because both the U.S. housing finance system and, most likely, the structure of the housing

market are likely to change significantly during the years ahead, it may at best be a good timeforAmericans to buy a home as a place to live,said Dennis Jacobe, chief economist for Gallup.

-- Poll: Majority Say Now is a Good Time to Buy a House,by Vicki Needham, The Hill, Jan. 17, 2010.

Freddie Mac: Rising Mortgage Rates Will Not Stop a Housing Recovery

Although home sales may not improve as much as expected in 2011 because of rising mortgagerates, Freddie Mac Chief Economist Frank Nothaft still estimates a 10% increase from last year as

housing and the overall economy pushes through to recovery. In his economic outlook for 2011,

Nothaft predicts home sales will reach an annual rate of 5.7 million by the fourth quarter.

"More robust growth of jobs and incomes should offset much of the impact of the rise in

(mortgage) rates, and help make 2011 a year of recovery for the housing market, as well as theeconomy overall," Nothaft said.

-- Freddie Mac Says Rising Mortgage Rates Won't Stop The Housing Recovery In 2011,by John Prior,

Housing Wire, Jan. 12, 2010.

NAHB: Gradual Improvement in Housing in 2011

Housing will see gradual improvements in activity this year as the nations economy and jobmarket continue to move to higher ground, establishing momentum that will produce more

considerable gains in 2012, according to economists who appeared at the National Association ofHome Builders (NAHB) International Builders Show in Orlando.

This years spring selling season will be better than last years, said NAHB Chief Economist David

Crowe, with job growth providing a stronger stimulus in the housing market than last years tax

credits for home buyers.

-- Housing Moving To Higher Ground In 2011,RISMedia, Jan. 19, 2010.

NAR and Fannie Mae Release New Housing Industry Forecasts

The most recent industry forecasts released in January by the National Association of Realtors(NAR) and Fannie Mae show a steady improvement in the housing market.

NAR forecastsa 7.8% increase in existing home sales in 2011, followed by a 4.3% increase in

2012. They forecast a 0.6% increase in existing home prices in 2011, and a 2.4% increase in

2012.Fannie Mae forecastsa 3.6% increase in existing home sales in 2011, followed by a 9.8%

increase in 2012 and a 3.2% increase in 2013. They forecast flat existing home prices in 2011,

followed by a 2.9% increase in 2012, and a 5.5% increase in 2013.

Regional Update: News from Markets around the Nation

New York Metropolitan AreaHome sales in metropolitan New York, battered by the high

unemployment rate, will bounce back in 2011 and rise 8% compared to

last year, one housing expert predicted. This sneak preview cameyesterday from the nation's largest real estate group, the National

Association of Realtors, whose more than 1.2 million members saw arise in contracts signed in December -- the fifth straight month of gains.

-- Housing Surprise,by Paul Tharp, NY Post, Jan. 13, 2011.
http://thehill.com/blogs/on-the-money/801-economy/138325-poll-majority-say-now-is-a-good-time-to-buy-a-househttp://thehill.com/blogs/on-the-money/801-economy/138325-poll-majority-say-now-is-a-good-time-to-buy-a-househttp://thehill.com/blogs/on-the-money/801-economy/138325-poll-majority-say-now-is-a-good-time-to-buy-a-househttp://www.housingwire.com/2011/01/12/freddie-mac-says-rising-mortgage-rates-wont-stop-the-housing-recovery-in-2011http://www.housingwire.com/2011/01/12/freddie-mac-says-rising-mortgage-rates-wont-stop-the-housing-recovery-in-2011http://www.housingwire.com/2011/01/12/freddie-mac-says-rising-mortgage-rates-wont-stop-the-housing-recovery-in-2011http://rismedia.com/2011-01-17/housing-moving-to-higher-ground-in-2011/http://rismedia.com/2011-01-17/housing-moving-to-higher-ground-in-2011/http://rismedia.com/2011-01-17/housing-moving-to-higher-ground-in-2011/http://www.realtor.org/wps/wcm/connect/e4b0f0004539d51fa7f6bf0d0dd423ff/research_forecast_0111.pdf?MOD=AJPERES&CACHEID=e4b0f0004539d51fa7f6bf0d0dd423ffhttp://www.realtor.org/wps/wcm/connect/e4b0f0004539d51fa7f6bf0d0dd423ff/research_forecast_0111.pdf?MOD=AJPERES&CACHEID=e4b0f0004539d51fa7f6bf0d0dd423ffhttp://www.fanniemae.com/media/pdf/economics/2011/Housing_Forecast_012011.pdf;jsessionid=Q1DTSLMU3UWLXJ2FQSHSFGIhttp://www.fanniemae.com/media/pdf/economics/2011/Housing_Forecast_012011.pdf;jsessionid=Q1DTSLMU3UWLXJ2FQSHSFGIhttp://www.nypost.com/p/news/business/housing_surprise_TkQOG2zPGZHUYJAzkqpAeI#ixzz1BWNaV8kYhttp://www.nypost.com/p/news/business/housing_surprise_TkQOG2zPGZHUYJAzkqpAeI#ixzz1BWNaV8kYhttp://www.nypost.com/p/news/business/housing_surprise_TkQOG2zPGZHUYJAzkqpAeI#ixzz1BWNaV8kYhttp://www.nypost.com/p/news/business/housing_surprise_TkQOG2zPGZHUYJAzkqpAeI#ixzz1BWNaV8kYhttp://www.fanniemae.com/media/pdf/economics/2011/Housing_Forecast_012011.pdf;jsessionid=Q1DTSLMU3UWLXJ2FQSHSFGIhttp://www.realtor.org/wps/wcm/connect/e4b0f0004539d51fa7f6bf0d0dd423ff/research_forecast_0111.pdf?MOD=AJPERES&CACHEID=e4b0f0004539d51fa7f6bf0d0dd423ffhttp://rismedia.com/2011-01-17/housing-moving-to-higher-ground-in-2011/http://www.housingwire.com/2011/01/12/freddie-mac-says-rising-mortgage-rates-wont-stop-the-housing-recovery-in-2011http://thehill.com/blogs/on-the-money/801-economy/138325-poll-majority-say-now-is-a-good-time-to-buy-a-house


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Myrtle Beach, S.C.The Grand Strand (Myrtle Beach, S.C. area) real estate market improved overall in 2010, and local

experts say that 2011 should bring greater stability. Real estate sales were up significantly in 2010

and price declines slowed, the first real positive signs that the local real estate market was turningthe corner from the collapse.

What we saw in 2010 was the beginning of coming out of the real slow market that we had,saidan area broker. Although our market didn't take off in any huge numbers, the trend is upwards.

-- Myrtle Beach Area Home Sales Look Up,by Adva Saldinger, The Sun News, Jan. 12, 2011.
http://www.thesunnews.com/2011/01/12/1916088/strand-home-sales-look-up.htmlhttp://www.thesunnews.com/2011/01/12/1916088/strand-home-sales-look-up.htmlhttp://www.thesunnews.com/2011/01/12/1916088/strand-home-sales-look-up.htmlhttp://www.thesunnews.com/2011/01/12/1916088/strand-home-sales-look-up.html

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Positive Real Estate News - Vol 4, Issue 1 - January 20, 2011