Realty Reality: January 2009

Saturday, January 31, 2009

Tax-Free Help Available Nationwide

Nearly 12,000 free tax preparation sites will be open nationwide this year as the Internal Revenue Service continues to expand its partnerships with nonprofit and community organizations performing vital tax preparation services for low-income and elderly taxpayers.

The IRS Volunteer Income Tax Assistance (VITA) Program offers free tax help to people who earn less than $42,000. The Tax Counseling for the Elderly (TCE) Program offers free tax help to taxpayers who are 60 and older.

More Information

Source: IRS IR-2009-9

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Friday, January 30, 2009

For Many Investors, Year-End Forms to Arrive Later

Many investors will receive their year-end tax statements later than in past years, but these forms are likely to be more accurate, according to the Internal Revenue Service.

A new law, enacted last fall, changed the deadline from Jan. 31 to Feb. 15, when brokers, including brokerage firms, mutual fund companies and barter exchanges, must furnish year-end Forms 1099-B to their customers. Where a broker furnishes these forms by mail, this means that the forms must be mailed, not received by that date.

Because Feb. 15 falls on Sunday in 2009, and Monday, Feb. 16 is a federal holiday, the deadline is Feb. 17 this year. In addition, the IRS said earlier this month that for calendar-year 2008 reporting, the Feb. 17 deadline also applies to other tax information that brokers report to their customers, including such items as interest and dividends, on a combined year-end statement.

This change is designed to make it easier for brokers to provide investors with accurate year-end statements on stock sales and other transactions. Inaccurate year-end statements that have to be corrected later often force investors to file amended individual returns.

More Information

Source: IRS IR-2009-11

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Thursday, January 29, 2009

Doing Business In New Jersey, Pennsylvania and Delaware Valley

If you are currently doing business in New Jersey or Pennsylvania or want to start a business or expand you business into the Delaware Valley area, here are a few links to online resources you need to know about and use...

New Jersey State: NJ Business Portal; NJ Business Gateway Registry Services

Pennsylvania State: Doing Business in PA

Additional resources:
Delaware Valley Resource Center [Southern New Jersey] [Southeastern Pennsylvania]

Wednesday, January 28, 2009

Eight No-Cost or Low-Cost Ways to Improve Your Property

According to the National Association of Realtors (NAR), there are at least eight ways to improve the presentation of your property for sale that are low-cost or even no-cost.

1. Move It. Rearranging furniture can have a dramatic impact on the perceived openness of a room. You can also add or remove rugs, lamps, mirrors as needed to change the effect and mood of a room. Don't be afraid to experiment and get the opinions of others, especially your real estate professional.

2. Plant It. Arranging or rearranging plants can have a positive effect. Make sure that plants and their containers are in top condition.

3. Paint It. One of the easiest and cost-effective ways to have dramatic changes. Use current color schemes, with neutral colors in living/working areas. Ask yourself how you want an area to look and feel and choose accordingly.

4. Organize It. REMOVE CLUTTER! Add shelves and hooks where/when appropriate.

5. Hide It. Painting, wallpapering, coatings can help camouflage imperfections. (NOTE: Be careful to avoid misleading buyers if it effects the value of a home.)

6. Replace It. Replace worn handles, doornobs, old switch plates, faucets, sinks and out-of-date items that detract from the overall look of your property.

7. Light It. Changes in lighting significantly impacts the mood of areas. Can be used for highlighting section of room or objects in room.

8. Clean It. Make sure areas are spic-and-span, repair old grout, reseal natural stone, remove scratches on woodwork. Get down on your hands and needs and detail the floor. A little elbow grease adds a lot of appeal to a property.

Feel free to browse our online articles for more suggestions on how to improve your property as well as a variety of other information resources.

Source: Realtor Magazine

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Monday, January 26, 2009

Existing-Home Sales Show Strong Gain In December

Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West, according to the National Association of Realtors® (NAR).

Existing-home sales – including single-family, townhomes, condominiums and co-ops – jumped 6.5 percent to a seasonally adjusted annual rate1 of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5 percent below the 4.91 million-unit pace in December 2007.

For all of 2008 there were 4,912,000 existing-home sales, which was 13.1 percent below the 5,652,000 transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales.

Lawrence Yun, NAR chief economist, said home prices continue to fall significantly. “It appears some buyers are taking advantage of much lower home prices,” he said. “The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future.”

Total housing inventory at the end of December fell 11.7 percent to 3.68 million existing homes available for sale, which represents a 9.3-month supply2 at the current sales pace, down from a 11.2-month supply in November.

Yun said the market is underperforming and hurting the broader economy. “We’ve added 25 million people to our population over the past decade and housing affordability conditions are the best we’ve seen since 1973, but household formation is much lower than expected,” he said. “Consequently, there is a pent-up demand which could be unleashed with the right stimulus, including a non-repayable home buyer tax credit. The Obama administration and Congress need to move fast to stimulate a spring sales upturn which will help to stabilize home prices and set the foundation for a sustainable economic recovery.”

The national median existing-home price3 for all housing types was $175,400 in December, which is 15.3 percent below December 2007 when the median was $207,000. There remains a significant downward distortion in the current median from a large number of distress sales at discounted prices, currently 45 percent of transactions; the median is where half of the homes sold for more and half sold for less. For all of 2008, the median price was $198,600, down 9.3 percent from $219,000 in 2007.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said it’s an excellent time for first-time home buyers with good jobs. “The typical buyer plans to stay in their home for 10 years, which is the correct approach in today’s market,” he said. “With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who’ve been on the fence should take a closer look at today’s market.”

McMillan added that first-time buyers may want to consider an FHA loan, which offers downpayments of 3.5 percent on a safe 30-year fixed-rate mortgage.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.29 percent in December from 6.09 percent in November; the rate was 6.10 percent in December 2007. Last week, Freddie Mac reported the 30-year rate was 5.12 percent.

Single-family home sales rose 7.0 percent to a seasonally adjusted annual rate of 4.26 million in December from a level of 3.98 million in November, but are 1.4 percent below a 4.32 million-unit pace in December 2007. For all of 2008, single-family sales fell 11.9 percent to 4,349,000.

The median existing single-family home price was $174,700 in December, down 14.8 percent from a year ago. For all of 2008, the single-family median was $197,100, which is 9.5 percent below 2007.

Existing condominium and co-op sales increased 2.1 percent to a seasonally adjusted annual rate of 480,000 units in December from 470,000 in November, but are 18.4 percent below the 588,000-unit level a year ago. For all of 2008, condo sales dropped 21.0 percent to 563,000 units.

The median existing condo price4 was $181,400 in December, down 18.3 percent from December 2007. For all of 2008, the median condo price was $210,000, which is 7.2 percent below 2007.

Regionally, existing-home sales in the Northeast slipped 1.4 percent to an annual pace of 720,000 in December, and are 14.3 percent below December 2007. The median price in the Northeast was $235,000, which is 7.8 percent lower than a year ago.

Existing-home sales in the Midwest increased 4.0 percent in December to a level of 1.04 million but are 10.3 percent below a year ago. The median price in the Midwest was $140,800, down 11.4 percent from December 2007.

In the South, existing-home sales rose 7.4 percent to an annual pace of 1.74 million in December, but are 11.2 percent lower than December 2007. The median price in the South was $158,600, which is down 8.0 percent from a year ago.

Existing-home sales in the West jumped 13.6 percent to an annual rate of 1.25 million in December and are 31.6 percent higher than a year ago. The median price in the West was $213,100, down 31.5 percent from December 2007.

# # #

1The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings. This differs from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 to 90 percent of total home sales, are based on a much larger sample – more than 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982. Condos were tracked quarterly prior to 1999 when single-family homes accounted for more than nine out of 10 purchases.

3The only valid comparisons for median prices are with the same period a year earlier due to the seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if more data is received than was originally reported.

4Because there is a concentration of condos in high-cost metro areas, the national median condo price can be higher than the median single-family price. In a given market area, condos typically cost less than single-family homes.

Existing-home sales for January – including monthly revisions to sales rates for the past three years – will be released February 25. Each February, NAR Research incorporates a review of seasonal activity factors and fine-tunes historic data for the previous three years based on the most recent findings. Revisions will made to monthly seasonally adjusted annual sales rates for 2006 through 2008, as well as the inventory month's supply data. There will be no revisions to raw inventory or home prices aside from the normal prior month revisions.

The next Pending Home Sales Index & Forecast is scheduled for release February 3; release times are 10 a.m. EST. For more information, please visit: www.realtor.org/research/research/ehsdata.

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Tuesday, January 20, 2009

President Barack Obama Welcomed by Realtors®

The following is a statement by National Association of Realtors® President Charles McMillan:

“Today is truly an historic day for our country. On behalf of NAR’s 1.2 million Realtors®, we welcome the new president and his administration, and pledge to work with him to stabilize the U.S. housing market and set the economy on the road to recovery.

“President Obama has pledged to work with Congress to immediately implement aggressive policies to decrease the number of preventable foreclosures by helping to reduce mortgage payments for responsible homeowners. We welcome President Obama’s efforts on foreclosure prevention and agree that addressing rising foreclosures and strengthening existing home sales and housing initiatives are critical components to a housing and economic recovery.

“NAR will also continue to focus on policies that will help bring buyers back to the market to reduce inventory and stabilize home prices. This is the only way to successfully improve and sustain the housing market and the nation’s economy.

"The president has a tough job ahead of him with many hurdles. NAR looks forward to working with President Obama and his team, and to quickly move forward with meaningful legislation and policies to help make homeownership once again a part of the great American dream.”

Thursday, January 15, 2009

Many Home Buyers Need Higher Loan Limits, Upper-End Stalled

The drop in mortgage loan limits for conventional financing at the end of 2008 is hurting home sales and trade-up activity in higher price ranges across the country, according to the National Association of Realtors®(NAR).

The latest existing-home sales data shows transactions under $400,000 are 3 percent below a year ago. However, sales of homes priced at $750,000 or more have declined a whopping 47 percent.

Outside of FHA, Fannie Mae and Freddie Mac, mortgages that do not have government backing are still experiencing a credit crunch. Buyers who need jumbo mortgages must pay interest rates that are nearly 2 percentage points higher than conventional financing; as a result, the high-end market is not moving.

Lawrence Yun, NAR chief economist, said restoring higher mortgage loan limits is critical to this part of the market. “Buyers in higher price ranges are at a severe disadvantage because they have to pay higher interest rates,” he said. “Lower loan limits are having a pronounced impact on trade-up activity at the upper end of the market, which depends more on large downpayments to keep mortgage amounts below the maximums for conventional financing.”

While homes above $750,000 are considered luxurious in many areas, they are modestly sized homes in the midprice ranges of many high-cost markets. “However, the lower mortgage limits for conventional loans mean upper middle-class home buyers in much of the country, including many areas in the Midwest and South, also have to pay higher interest rates,” Yun said. “As a result, we are seeing a universal stalling of sales in higher price ranges across the country.”

To illustrate in dollar terms, if mortgage limits are permanently raised to $729,750, the maximum limit that expired at the end of December, the mortgage payment on such a loan would drop by $942 per month by lowering interest rates 2 percentage points. Over the life of a 30-year loan, the homeowner would save $338,000.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said all consumers should have access to today’s historically low mortgage interest rates. “It’s only fair that all hard-working, tax-paying, successful people who want to purchase a home have equal access to low interest rates regardless of where they live or where they want to buy,” he said.

“Every segment of the housing market needs a turnaround to spark an overall housing recovery, which will help the economy to begin to recover,” McMillan said.

Wednesday, January 14, 2009

Federal Reserve Beige Book January 2009 Report

Overall economic activity continued to weaken across almost all of the Federal Reserve Districts since the previous reporting period. Most Districts noted reduced or low activity across a wide range of industries, although a few Districts noted some exceptions in some sectors.

District reports indicate that retail sales were generally weak, particularly during the holiday season. A majority of Districts noted deep discounting during the holiday sales season. Vehicle sales were also weak or down overall in the Districts reporting on them. Manufacturing activity decreased in most Districts. Declines were noted in a wide range of manufacturing industries, with a few exceptions. Services sector activity generally declined across the Districts, with exceptions in some sectors of the Boston, Richmond, and Chicago Districts. Additionally, several Districts noted weaker conditions in transportation services and slow or decreased demand in tourism activity. Conditions in residential real estate markets continued to worsen in most Districts. Reduced home sales, lower prices, or decreases in construction activity were noted in many Districts. Commercial real estate markets deteriorated in most Districts, with weakening construction noted in several Districts. Overall lending activity declined in several Districts, with tight or tightening lending conditions reported in most Districts. Credit quality remained a concern in several Districts. Agricultural conditions were mixed in response to varying weather conditions across the Districts. Mining and energy production activity generally declined since the previous report.

Most Districts reported a general weakening of labor market conditions. Lower energy prices were noted in many of the Districts, and, except for the Richmond District, which mentioned higher prices for raw materials, most reporting Districts noted declining input prices. Wage pressures remained largely contained, and some Districts reported pay freezes or reductions in compensation.

In the Philadelphia (Third District) region,business conditions remained soft in December. Manufacturers, on balance, reported declines in shipments and new orders. Retailers indicated that sales were far below the level of a year ago, and motor vehicle dealers reported continued sluggishness in sales. Bank loan volume rose slightly in December, but credit quality continued to deteriorate. Residential real estate sales and construction remained on a declining trend. Commercial real estate investment and construction activity continued to be slow. Service sector activity generally declined during December. Business firms in the region reported decreases in input costs and output prices in December, and retailers made extensive markdowns for the holiday shopping period.

The outlook among Third District businesses is generally pessimistic. Manufacturers forecast decreases in shipments and orders during the next six months. Retailers expect a slow sales pace during the winter. Auto dealers do not expect much improvement in sales. Bankers anticipate slow loan growth during the year. Residential real estate agents and home builders expect sales to remain slow at least until mid-year and possibly longer. Contacts in commercial real estate expect leasing and construction activity to remain at low levels until overall economic conditions improve. Service sector firms expect activity in 2009 to be slower than in 2008.

Source Beige Book

Click here for the Federal Reserve January 2009 Beige Book [Beige Book Archives]

See related blog articles:
Federal Reserve Beige Book For Economic Conditions (What is the "Beige Book"?)
The Federal Reserve - Making Sense In Plain English

Effective Implementation Critical for Home Buyer Tax Credit Success

If all home buyers become eligible for a tax credit without a repayment feature, it could result in an additional 555,000 home sales – enough to meaningfully draw down excess housing inventory, according to the National Association of Realtors®(NAR).

An evaluation of options for a home buyer tax credit by NAR shows wide ranging implications and benefits. A full credit to all buyers means an additional 2.22 million households would meet the income requirements for purchasing a home, but only one in four of those households would actually make a purchase.1

Under the current $7,500 first-time home buyer tax credit, which must be repaid over 15 years, 264,000 households meet the purchase requirements. Using the same assumptions, with plans to hold their home for a median 10 years, it would mean only 66,000 additional sales.2

Lawrence Yun, NAR chief economist, said NAR is advocating a tax credit for any home purchase meeting qualifying underwriting standards. “A home buyer incentive is critical to help reduce housing inventory and stabilize home prices,” he said. “The bigger the incentive, the faster housing can help pull the economy out of recession. The cost to the Treasury would be far less than the additional costs of a prolonged recession with insufficient housing stimulus.”

Analysis of other options shows that if only first-time buyers are eligible and the repayment feature is dropped, it could mean an additional 202,000 home sales. If extended to all home buyers but the repayment feature is retained, the gain would be 181,000 home sales.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said a flexible approach to the tax credit would have added benefits. “A home buyer tax credit also should be allowed to be used as a part of downpayment. This would instantly add an equity cushion for homeowners – a vested financial interest provides the foundation for sustainable homeownership, which helps improve economic stability,” he said.

NAR estimates only 25 percent of newly eligible households would become homeowners, and does not capture the effect of increased trade-up buying activity. As such, these projections may understate the full impact of a home buyer tax credit.

# # #

1Projections assume a 5.5 percent mortgage interest rate; sales gains would be higher if interest rates remain below that level. A downpayment of 10 percent is assumed, with principle and interest payments not exceeding 25 percent of gross income.

2According to the 2008 NAR Profile of Home Buyers and Sellers, both first-time home buyers and repeat buyers expect to live in their home for a median of 10 years – the longer a home is held, the greater the benefit under repayment assumptions.

Sunday, January 11, 2009

Heating Your Home Efficiently

Regardless of what the weather brings this winter, heating your home efficiently is probably something on your mind. Keeping your home a comfortable temperature when the weather turns bad doesn’t have to be a financial drain. With a little bit of work, you can actually save a great deal on your heating bills:

Stopping Air Leaks
The first step to making your home more heat efficient is to identify air leaks. Common air leak sources such as recessed lights, doorframes, window frames, and electrical outlets can be a big drain of heat and money. You can check for air leaks yourself by walking through your home with a lit incense stick (horizontal smoke indicates a leak), or you can hire a technician for a more thorough inspection. Simple fixes like sealing around outlets and switches, caulking gaps in the framing, and plugging gaps surrounding pipes will typically result in noticeable savings.

Duct Problems
One of the most important systems in your home may be quietly wasting your energy dollars. Often overlooked, typical duct systems lose 25-40% of the heating or cooling energy put out by the central furnace, heat pump, or air conditioner. Common duct system problems include:
Leaky joints or visible holes in the duct surface Disconnected ducts that have fallen away from each other Inadequate or poorly finished duct work Un-insulated or poorly insulated ducts in attics and crawlspacesMost duct repairs should be made by a trained professional, especially those that will take place in unconditioned spaces. A qualified pro can also help you more accurately assess the duct problems that you have. If you decide to make minor duct repairs on your own, keep in mind that duct tape is usually only intended as a temporary fix. Silicone caulking or cement with mastic are better sealing options. Improving your duct system efficiency can cut your annual utility bills by as much as $300, and will improve the overall air quality in your home.

Keep your Home Insulated
Properly insulating your home is one of the most cost-effective ways to cut down on energy loss. Improving the insulation in your home can cut your heating and cooling costs by as much as 30%, and will create a more uniform, comfortable temperature in your home. Better insulation will also help decrease outdoor noise. Check the insulation in your attic, ceilings, exterior and basement walls, floors, and crawl spaces to see if they meet recommended standards for your area. The U.S. Dept. of Energy provides information on recommended insulation levels for each region. Typically the easiest and most cost-effective way to improve your home’s insulation is to add insulation to your attic.

Thermostat Solutions
That little box on the wall can be a tool for big energy savings. You can save up to 3 percent for every one degree that you lower the temperature in your home over a 24-hour period in winter. You can also save up to 10% annually in your heating and cooling bills by adjusting your thermostat down 10% to 15% for an 8-hour period each day. Turning the heat down while you sleep or while you’re away at work is a simple and logical energy efficiency solution. If the prospect of waking up to a chilly house doesn’t excite you, buy a programmable thermostat. They are inexpensive and adjust the temperature in your home based on schedules that you determine.

Ceiling Fans
While most people think of ceiling fans as a cooling solution, they can also help maintain a warm temperature in your home during winter. Running a ceiling fan in reverse circulates rising warm air back down to living areas. Consider ceiling fans for your home, particularly if you have rooms with high ceilings that seem to stay colder. Ceiling fans vary in price depending on things like material and size, but many are inexpensive and easy to operate.

The article is taken from one of our recent Newsletters that was e-mailed to all registered subscribers, via our RE/MAX of New Jersey web site.

Friday, January 09, 2009

Five Online Reasons A Home Buyer Needs An Experienced Agent

As an experienced real estate professional we provide value and savings to the home buyer, greatly minimize buyer's risk and enable a smoother, less stressful process.

Here are 5 common mistakes that buyers make when shopping for a home that will be avoided with the use of an expert agent. (Matthew Bandyk, January 6, 2009, usnews.com)

Click here for US News article . . .

See also my article: The Process of Buying A Home

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Thursday, January 08, 2009

Inside The House of the Future

Green technology, wireless connectivity, and less ostentation are just some of the newest home-building trends.

Amenities that appeal to buyers a decade or more after a house is built will help hold its value. Read this article for a list of some of the most important new design features and trends your buyers will request in the future. (Christopher Palmeri, January 6, 2009, BusinessWeek.com)

More Information . . .

Wednesday, January 07, 2009

Mortgages: What You Need To Know In 2009

Rates are at significant lows and it’s a great time to buy a home. Read this article containing tips for prospective home buyers. (Peter Coy, January 6, 2009, msnbc.com)

More Information . . .

Help for Financially Distressed Taxpayers for 2009 Tax Season

IRS Begins Tax Season 2009 with Steps to Help Financially Distressed Taxpayers; Promotes Credits, e-File Options.

WASHINGTON — The Internal Revenue Service(IRS) today kicked off the 2009 tax filing season by announcing a number of new steps to help financially distressed taxpayers maximize their refunds and speed payments while providing additional help to people struggling to meet their tax obligations.

IRS Commissioner Doug Shulman encouraged taxpayers to take advantage of several new tax credits and deductions this filing season and announced a major enhancement to the Free File program that will allow nearly all taxpayers to e-file for free and accelerate their refunds.

More information...

Source: IRS (IR-2009-2)

Tuesday, January 06, 2009

Economic Slump Weakens Pending Home Sales

After holding fairly stable for a year, pending home sales declined in the face of job losses and an eroding economy, according to the National Association of Realtors®(NAR).

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 4.0 percent to 82.3 from a downwardly revised reading of 85.7 in October, and is 5.3 percent below November 2007 when it was 86.9. The current index is the lowest since the series began in 2001.

Lawrence Yun, NAR chief economist, said a weakening was inevitable. “Mounting job losses and very weak consumer confidence deterred home buyers from signing contracts in November,” he said. “December’s housing market activity could be comparably lower due to ongoing problems in the economy, so a real estate-focused stimulus plan is urgently needed.”

Yun said the outlook will depend heavily on the stimulus package. “With a proper real-estate focused stimulus measure, home sales could rise more than expected, by more than 10 percent to 5.5 million in 2009, and easily begin to stabilize home prices in many parts of the country. Stable home prices will, in turn, lessen foreclosure pressures and lay the foundations for a solid economic recovery as the nation’s 75 million homeowners regain confidence,” he said.

The impact of mortgage interest rates declining to near 50-year lows in December is not reflected in current data.

The PHSI in the Northeast dropped 7.2 percent to 63.2 in November and is 14.6 percent below a year ago. In the Midwest the index fell 6.7 percent to 74.2 and is 10.1 percent below November 2007. The index in the South declined 2.2 percent to 85.3 in November and is 12.7 percent below a year ago. In the West, the index was down 2.4 percent to 101.2 but remains 19.3 percent higher than November 2007.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there can’t be an economic recovery without a focus on housing. “It’s crucial for Congress and the new administration to move quickly to remove impediments and offer home buyers the incentives they need to tap into today’s historic low mortgage interest rates,” he said.

“NAR advocates expanding a $7,500 tax credit to all home buyers and eliminating the repayment feature, and permanently raising loan limits to bring down interest rates for many buyers in high-cost areas. We also need to expedite short sales and unclog the mortgage pipeline,” McMillan said.

The 30-year fixed-rate mortgage should hold fairly steady through the first half of the year and rise slightly in the second half. NAR’s housing affordability index, which looks at the relationship between home prices, mortgage interest rates and family income, is on track to match a record high set in 1972.

“The unique housing affordability conditions in today’s market underscore the opportunity in giving consumers the necessary incentives to stimulate our economy through a housing recovery,” Yun said.

# # #

*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.

Existing-home sales for December will be released January 26; the next Pending Home Sales Index will be on February 3.

Visit my web site for real estate services and support: LawrenceYerkes.com [NJ/PA]

and visit Besthomes-NJ.com to find the latest New Jersey Real Estate property listings (Residential, Commercial, Multi-Family, Farm, Land).

Friday, January 02, 2009

NAR Housing and Economic Statistics

The National Association of REALTORS (NAR), compiles extensive data and conducts regular analysis and reporting of housing, commercial real estate and economic market conditions and trends.

While, as an industry promoter, they may have a vested interest in stressing a more positive, hopeful viewpoint for projections, indexes and trend analysis than may sometimes be warranted, their numbers are relatively accurate and up-to-date and they have an extensive historical database.

Those statistics provide a reasonably good frame of reference for evaluating current market conditions compared against past historical data.

That is why we regularly report their results in this blog.

For a directory of their housing and economic reports see:

NAR Housing and Economic Statistics (Note: some may require a fee to access)

NAR Commercial Real Estate Research

Thursday, January 01, 2009

Real Estate Cyber Tips - January 2009

CYBER MAGIC TRICKS

TRICK#1

Phone Call Butler!
Tired of paying big bucks for information? Tired of fumbling with pen and paper to write down a number? Those Google people never fail to amaze us. Now they have come up with an 800 number you can call and ask for any business in the country. They then dial it and connect to it for you. You can use it from a land line or cell phone and, once programmed into your cell phone, you can get connected with one push of a button. In addition to dialing for you, you can request by business category and get a map or a text message with more detail. Neat stuff – and oh yes – there is no cost for this service. Long live Google!
Click Here for This Cyber Trick

TRICK#2

Use Your Phone Number as Your E-mail Address!
How’d you like to use your phone number for your e-mail address? Next time someone asks for your e-mail address just give them your phone number and tell them "email me at my number." Emails sent to you at your "phone number e-mail address" will then be forwarded to the email address you register. This easy-to-remember address makes it convenient for folks. No more rustling for pen and paper, No more "D as in Donald, S as in Sam." No more hyphen, dot, dash etc" No confusion, no hassle. And – guess what – it’s on the house.
Click Here for This Cyber Trick

GREAT PLACES!

GREAT PLACE #1

Beat My Price!
Think you have a great price on that new TV (phone, sweater – whatever)? Swing on by this great place to see if any other merchant is offering the object of your attention at a lesser price. Real easy to use –just enter the URL of the product you are pursuing and up comes a report showing what other folks are selling this item for. Now you can remove any doubt that you got "the best price."
Click Here for This Great Place

GREAT PLACE #2

Music of Your choice - At Your Beck and Call!
How about having your favorite artist, song or type of music at your beck and call? This great place gives you that and more. Just type your choice into a simple Google type interface and you’re off and running listening to all of your favorites. And when you return, this neat place starts right up playing your last choice. The price is right. All of this great music is on the house.
Click Here for This Great Place

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Wishing You A Great New Year!

Wishing all of you ...

... and a Prosperous and Healthy 2009!

We are thankful and feel blessed that, despite it's many challenges, we have survived 2008.

We now look forward in 2009 as we have made many significant adjustments for the changing market. We are in the process of implementing many exciting enhancements to continue expanding our effective market coverage and increasing our ability to provide the best service to you!

We're we are excited about the benefits these changes will provide in 2009!

Come along with us!

Realty Reality