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Single-Family Housing Starts Powers Ahead

May 17, 2012 By Leave a Comment

Housing StartsThe new construction housing market continues to improve.

One day after the National Association of Homebuilders reported a 5-year high in homebuilder confidence, the U.S. Census Bureau reports that single-family housing starts rose 2 percent for the second straight month last month.

In April, on a seasonally-adjusted, annualized basis, the government reports 492,000 single-family housing starts. A “housing start” is a home on which ground has broken.

In addition, March’s single-family housing starts were revised higher. What was previously reported as a three percent loss was re-measured and changed to a 0.2% gain.

The April tally marks a six percent increase over the one-year moving average and, along with the March revision, suggests that the springtime housing market may have just been seasonal. 

In March, a number of reports suggested a housing retreat :

Since then, though, low mortgage rates and affordable home prices appear to have sustained the new construction market, which now appears poised for a strong 2012. 

As one mark of proof, active buyers of newly-built homes in Lakewood Ranch and nationwide are scheduling “model home” showings at the fastest pace since 2007. The burst of foot traffic high has builders upping their sales expectations for the next 6 months.

A scenario like this would normally lead new home prices higher, but the pressure for prices to rise may be offset by the amount of new home supply coming online.

In addition to a rise in Housing Starts, the Census Bureau also reports that, in April, the number of Building Permits for single-family homes rose 2 percent to move to its second-highest level since March 2010 — the month preceding the end of the 2010 federal Home buyer tax credit.

86 percent of homes break ground within one month of permit issuance.

It’s unclear whether housing is on a steady path higher, but there’s a growing body of evidence that suggests the market bottom has already passed.

Filed Under: Buying, Market Statistics, Mortgages, News, Real Estate Tips, Selling Tagged With: , ,

Homebuilder Confidence Moves To 5-Year High

May 16, 2012 By Leave a Comment

NAHB HMI Homebuilder Confidence is on the rise once again.

After a brief dip in April, the National Association of Homebuilders reports that the Housing Market Index rose 5 points in May to 29. The increase marks the sharpest climb in homebuilder confidence on a month-to-month basis in 10 years, and raises the index to a 5-year high.

The Housing Market Index is scored from 1-100. Readings above 50 indicate favorable conditions in the single-family new home market overall. Readings below 50 indicate poor conditions.

The HMI has not been above 50 since April 2006.

The Housing Market Index itself is a composite reading as opposed to a straight-up homebuilder survey. The published HMI figure is a compilation of the results of three specific questionnaires sent to NAHB members monthly.

The survey questions are basic :

  1. How are market conditions for the sale of new homes today?
  2. How are market conditions for the sale of new homes in 6 months?
  3. How is prospective buyer foot traffic?

This month, builders are reporting strong improvement across all three surveyed areas. Current home sales are up 5 points; sales expectations for the next six months are up 3 points; and buyer foot traffic is up 5 points to its highest point since 2007.

With mortgage rates low and home prices suppressed, the market for new homes is gaining momentum, a conclusion supported by the New Home Sales report which shows rising sales volume and a shrinking new home inventory nationwide.

The basics of supply-and-demand portend higher new home prices later this year — a potentially bad development for buyers of new homes in Florida and nationwide. With demand for new homes rising, builders may be less likely to make sale price concessions or to offer “upgrade packages” to buyers of new homes.

If you’re shopping for new construction in or around Lakewood Ranch , therefore, consider moving up your time frame. Home affordability is high today. It may not be tomorrow.

Filed Under: Buying, Market Statistics, Mortgages, News, Real Estate Tips, Selling Tagged With: , ,

How To Seal A Granite Countertop

May 14, 2012 By Leave a Comment

Seal granite countertopsAmong Lakewood Ranch homeowners, granite countertops remain a popular kitchen and bathroom finishing choice. Granite boasts a combination of natural beauty and durability that’s unmatched among most commercial options.

But different from many other countertops choices, granite is a natural material; mined from the Earth. It is porous and highly absorbent.

To protect the granite in your home, therefore, and to ensure its quality over time, you’ll want to seal your countertops at least once annually. A proper granite sealing will prevent stains and damage that can ruin your countertops’ appearances.

Sealing your granite countertops is a simple job, but one that requires a little bit elbow grease.

First, you should make sure your granite is actually ready to be re-sealed. To do this, soak a white cotton cloth in water and leave it on the corner of your countertop for a 10 minutes.  Lift the towel and check whether the area under the towel is discolored, or dark. This will indicate that your granite is absorbing liquid and needs sealing.

If the area is not disclored, your granite is already sufficiently sealed.

If your countertops do need to be sealed, here’s how to do it :

  1. With a spray cleaner, wipe down the entire surface and allow to dry
  2. Using a clean white rag, apply granite sealer to the surface uniformly
  3. Allow 30 minutes for the granite to absorb the sealer, or longer
  4. When dry, re-apply a second coat of sealer

Depending on the thickness and quality of your home’s granite, it may need to dry overnight so allow yourself the proper time to finish the job.

Once sealed, use preventative maintenance to keep your granite countertops looking great. Place coasters under beverages, hot plates under dishes and clean up spills immediately.

A well-cared for granite countertop will last for years.

Filed Under: News, Real Estate Tips Tagged With: , ,

8-Fold Increase In “Improving Markets” Since September

May 10, 2012 By Leave a Comment

Improving Markets IndexThe economic recovery continues nationwide, but the recovery’s an uneven one.

Some metropolitan areas are faring very well this year, posting measurable gains in both employment and housing. Other metropolitan areas, by contrast, are struggling.

To help identify those markets in which growth is occurring, the National Association of Homebuilders created the Improving Market Index, a metric analyzing three separate, independently-collected data series “indicative of improving economic health”.

The IMI’s three collected data series are :

  1. Employment Growth (as published by the Bureau of Labor Statistics)
  2. Home Price Growth (as published by Freddie Mac)
  3. Single-Family Housing Growth (as published by the Census Bureau)

A metropolitan area is considered to be “improving” if all three indicators show growth at least six months after the respective area’s most recent trough, or “bottoming out”.

In May, there are exactly 100 U.S. markets that qualify for the NAHB’s Improving Market Index, down from 101 last month but higher by more than 800% from the reading in September 2011, the index’s inaugural release.

17 areas were added to the Improving Market Index list this month including Phoenix, Arizona; Ann Arbor, Michigan; and Bend, Oregon. 18 areas were removed from the May IMI.

83 metropolitan areas remained from April.

There is little actionable information in the Improving Markets Index but the report does a good job of highlighting how “real estate markets” can’t be summarized on a national level and remain relevant to everyday home buyers and sellers across Florida and nationwide. For example, Fort Collins, Colorado is listed as an Improving Market. However, Greeley, Colorado — located just 30 miles away — was just downgraded from the same list. 

Home values and economies vary by region, by state, by city, by neighborhood, and even by street.

The complete Improving Markets Index can be viewed at the NAHB website but for the best read of what’s happening in your neighborhood, talk to a local real estate agent.

Filed Under: Buying, Market Statistics, Real Estate Tips, Selling Tagged With: , ,

Small Repairs That Can Raise Your Sales Price

May 7, 2012 By Leave a Comment

Leaky faucet

If you’re actively preparing to list your home for sale, resist the temptation to make major home improvements. Nationwide, home improvement projects recoup just 58 cents on the dollar, says Remodeling Magazine.

Rather, for a better return on your time and money, focus on the minor projects instead. It’s the smaller projects in Lakewood Ranch that tend to have a bigger, long-term payoff.

So, how do you determine which projects are the “smaller ones”? It’s obvious when you think like a buyer.

Consider : Home buyers don’t always notice when your home is in working order. In fact, they expect it to be that way. What they do notice, however, is when things are “broken”. When a buyer sees torn screens in your windows or burnt out light bulbs, it makes him wonder what else in the home has not been cared for.

This is one reason why — especially during warmer months — it’s sensible to hire an exterminator prior to selling your home. If a prospective buyer uncovers bugs in your bathroom, it can leave a lasting, negative impression — one that won’t likely lead to a purchase contrast.

So, with “small repairs” in mind, here are 5 simple projects that you can tackle in a weekend, and that will help your home show better. Each is low-cost and high-impact:

  1. Repair or remove torn screen doors
  2. Fix all leaky faucets and toilets
  3. Touch up holes and cracks in paint, interior and exterior
  4. Apply a lubricant to squeaky doors and cabinets
  5. Get “clutter” into storage and physically out of the way

In addition, you’ll want to pull weeds from your yard, seed any bare spots you find, and lay down fresh mulch, where appropriate.

You won’t need to spend big bucks to get your home ready for sale but the time spent on repairs will have a pay-off in the end. Homes that show better often sell much faster, and at higher prices.

Filed Under: Buying, Real Estate Tips, Selling Tagged With: , ,

Home Values Start The Year Strong

May 2, 2012 By Leave a Comment

HPI 2007-2012

Home prices started the year on an upswing. 

According to the Federal Home Finance Agency’s Home Price Index, home prices rose by a seasonally-adjusted 0.3 percent between January and February 2012. The index is up 0.4% over the past year, offering a counter-story to the Case-Shiller Index’s assertion that home values are sinking.

Last week, Standard & Poor’s Case-Shiller Index said home values had dropped more than 3 percent in the prior 12 months. 

As a home buyer or seller in Lakewood Ranch , data showing “rising home values” or “falling home values” may be of interest to you, but we can’t forget that most home valuation trackers — including both the government’s Home Price Index and the private sector Case-Shiller Index — have a severe, built-in flaw.

Both used “aged” data. Today, the calendar reads May. Yet, we’re still discussing February’s housing data.

Data that is two-plus months old is of little value to everyday buyers and sellers wanting to know the “right now” of housing. And, even then, characterizing the data as “two-plus months old” may be a stretch. This is because the home values used in the Home Price index and the Case-Shiller Index are collected from actual transactions, but at the time of closing.

Considering that most purchases require 45-60 days to close, we can know that when we look at the Home Price Index and Case-Shiller Index reports for February, what we’re really seeing is a snapshot of the housing market as it existed two-plus month plus 60 days ago.

Data that’s 5 months old is of little relevance to today’s buyers and sellers. Today’s market is driven by today’s economics.

The Home Price Index is a useful gauge for economists and law-makers. It highlights long-term trends in housing which can be helpful in allocating resources to a particular project or policy. For home buyers and seller throughout Florida , though, it’s much less useful. Real-time data is what matters to you.

For that, talk to a real estate professional.

Filed Under: Buying, Real Estate Tips, Selling Tagged With: , ,

How To Clean Your Outdoor Gas Grill In Less Than 30 Minutes

April 30, 2012 By Leave a Comment

Keep a clean grillRegardless of your Lakewood Ranch Homes situation, outdoor gas grill cooking can be a four-season endeavor. Just remember to keep your grill clean.

According to Weber’s annual GrillWatch Survey, less than 40% of grill owners clean their equipment with any bit of frequency, and 6 percent admit they’ve never cleaned their grill at all.

There are three main reasons to keep a clean grill. The first is that a clean, well-maintained grill will have a longer useful life than a dirty, sloppy one. Grills can be expensive and it’s often less costly to maintain them than to replace them.

The second reason to keep a clean grill is for sanitary reasons. Over time — especially when exposed to the elements — a grill’s finish can deteriorate and/or retained cooked foodstuffs. This can create a breeding ground for germs and disease.

And, lastly, a clean grill helps cooked foods taste better.

So, whether you’ve cleaned your equipment recently or never at all, it’s always a good time to freshen up your grill. Here’s how to do it, quickly :

  1. Remove the grates. Soak them in soapy water. Scrub foodstuffs using a wire brush. Allow to dry.
  2. Remove loose debris from bottom of grill.
  3. Using soapy solution, scrub grill’s surfaces, grill pans, and grease trays. Don’t forget the lid.
  4. Clean outside of grill with mild soap solution, treating rust areas with cooking oil.
  5. Look for broken, cracked or faulty equipment, specifically burners and ignitors. Replace as necessary.

Then, as a last step, re-assemble your grill and turn its burners to high for 10 minutes. This will burn off excess water in the grill and help to sanitize it.

Cleaning a gas grill is a 20-30 minute process. The results, however, are long-lasting.

 

Here are some great homes for entertaining and grilling!

Filed Under: News, Real Estate Tips Tagged With: , ,

A Simple Explanation Of The Federal Reserve Statement (April 25, 2012)

April 25, 2012 By Leave a Comment

Putting the FOMC statement in plain EnglishThe Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent Wednesday.

For the fifth consecutive month, the Fed Funds Rate vote was nearly unanimous. Just one FOMC member, Richmond Federal Reserve President Jeffrey Lacker, dissented in the 9-1 vote.

The Fed Funds Rate has been near zero percent since December 2008. It is expected to remain near-zero through 2014, at least.

In its press release, the Federal Reserve noted that the U.S. economy has been “expanding moderately” since the FOMC’s last meeting in March. Beyond the next few quarters, the Fed expects growth to “pick up gradually”.

This key phrase will likely be repeated by the press. It suggests that the economy is no longer contracting; instead moving along a path of slow, consistent expansion.

In addition, the Fed acknowledged that “strains in global financial markets” continue to pose “significant downside risks” to long-term U.S. economic outlook. This is in reference to the sovereign debt concerns of Greece, Spain and Italy, and the potential for a broader European economic slowdown.

The Fed’s statement included the following notes :

  1. The housing sector remains “depressed”
  2. Labor conditions have “improved in recent months”
  3. Household spending has “continued to advance”

Also, with respect to inflation, the Fed said that the higher oil and gasoline prices from earlier this year will affect inflation “only temporarily”, and that inflation rates will return to stable levels soon.

At its meeting, the Federal Reserve neither introduced new economic stimulus, nor discontinued existing market programs. The Fed re-affirmed its intentions to hold the Fed Funds Rate at “exceptionally low” levels through late-2014, and to buy mortgage-backed bonds in the open market.

Immediately following the FOMC’s statement, mortgage markets improved slightly, pressuring mortgage rates lower in Sarasota and nationwide.

The FOMC’s next scheduled meeting is a two-day event slated for June 19-20, 2012.

Filed Under: Buying, Market Statistics, Mortgages, News, Real Estate Tips, Selling Tagged With: , ,

New Home Sales Revised Higher In February; Slip 7% In March

April 25, 2012 By Leave a Comment

New Home Sales 2011-2012Sales of new homes ticked lower in March, unexpectedly.

Based on Census Bureau data, the number of new, single-family homes sold in March slipped 7 percent from February — the largest one-month drop in more than a year.

On a seasonally-adjusted, annualized basis, buyers in Florida and nationwide purchased 328,000 newly-built homes last month. The decrease in sales from February to March can be attributed, in part, though, to a massive upward revision in February’s figures.

Last month, the Census Bureau had reported 313,000 new home sales in February on a seasonally-adjusted, annualized basis. This month, those sales were re-measured to be 353,000 — an increase of 13 percent.

January’s sales were revised higher, too.

The long-term trend in the market for new homes remains “up”. This is no more apparent than when we look at the available new home inventory.

At the close of March, just 144,000 new homes were available for purchase, down 2,000 from the month prior and representing the most sparse new home housing supply since at least 1993, the year that the Census Bureau starting tracking such data.

At the current pace of sales, the new home housing stock would be sold out in 5.3 months. A six-month supply is believed to represent a market in balance.

For new home buyers in Lakewood Ranch , March’s New Home Sales report does not represent a housing market pull-back. It may represent opportunity, however.

From October 2011 to February 2012, housing data was uniformly strong. Home sales were higher, home supplies were lower, and confidence was rising. In March, it was the reverse. This is normal because growth is rarely linear.

In any market, it’s a few steps forward and a single step back, and housing is likely showing a similar pattern. With mortgage rates still low and builder confidence down, it’s a terrific time to shop new construction.

There are deals to be found for buyers who seek them out.

Filed Under: Buying, Community News, Mortgages, News, Real Estate Tips, Selling Tagged With: , ,

The Fed Starts A 2-Day Meeting Today. Make A Strategy.

April 24, 2012 By Leave a Comment

Fed Funds Rate vs Mortgage Rates 1990-2012

The Federal Open Market Committee begins a 2-day meeting today in the nation’s capitol. It’s the group’s third of 8 scheduled meetings this year. Mortgage rates are expected to change upon the Fed’s adjournment.

Led by Chairman Ben Bernanke, the FOMC is a 12-person, Federal Reserve sub-committee. The FOMC is the group within the Fed which votes on U.S. monetary policy. “Making monetary policy” can mean a lot of things, and the action for which the FOMC is most well-known is its setting of the Fed Funds Funds.

The Fed Funds Rate is the overnight interest rate at which banks borrow money from each other. It’s one of many interest rates set by the Fed.

However, one series of interest rates not set by the Fed is mortgage rates. Instead, mortgage rates are based on the prices of mortgage-backed bonds and bonds are bought and sold on Wall Street.

There is little historical correlation between the Fed Funds Rate and the common, 30-year fixed rate mortgage rate.

As the chart at top shows, since 1990, the Fed Funds Rate and the 30-year fixed rate mortgage rate have followed different paths. Sometimes, they’ve moved in the same direction. Sometimes, they’ve moved in opposite directions.

They’ve been separated by as much as 5.29 percent at times, and have been as near to each other as 0.52 percent.

Today, that spread is roughly 3.65 percent. It’s expected to change beginning 12:30 PM ET Wednesday. That’s when the FOMC will adjourn from its meeting and release its public statement to the markets.

The FOMC is expected to announce no change in the Fed Funds Rate, holding the benchmark rate within in its current target range of 0.000-0.250%. However, how mortgage rates in and around Bradenton respond will depend on the verbiage of the FOMC statement.

In general, if the Fed acknowledges that the U.S. economy as in expansion; growing from job growth and consumer spending, mortgage rates are expected to rise. If the Fed shows concern about domestic and global economic growth, mortgage rates are expected to fall.

Any time that mortgage markets are expected to move, a safe play is to stop shopping your rate and start locking it. Today may be one of those times.

 

If you are interested in seeing what Lakewood Ranch Real Estate is for sale, the list below is for you!

Filed Under: Buying, Market Statistics, Mortgages, News, Real Estate Tips, Selling Tagged With: , ,
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