H.3567 (Rice), legislation increasing the cigarette tax, is currently pending the Senate calendar awaiting second reading. On Tuesday, the Senate Finance Committee amended and reported favorably on H.3567 (Rice), increasing the cigarette tax. As amended, the bill increases the cigarette tax by 50 cents per pack, generating approximately $159 million in new revenue. Funds will go to expand certain components of the Medicaid program. SCR supports using the additional revenue raised from a cigarette for a related purpose, like healthcare. Other bills of interest pending the calendar are: S.428 (Hayes), enacting the SC Water Withdrawal and Permitting, Use and Reporting Act; S.80 (Knotts), relating to real property and trespassing; and H.3451 (Cotty), allowing for electronic deed recording.
The Conference Committee on S.392 (Ritchie), illegal immigration reform, met this week focusing on language relating to regulation of private employers, preemption and cause of action. The Committee is expected to meet again next week. The Senate Finance Committee debated, amended and approved the FY 2008-09 state budget on Monday at 1:00 pm. The House passed the budget bills the week March 10, 2008.
www.843Realtor.com
Saturday, April 5, 2008
Friday, April 4, 2008
Existing Home Sales Rise In February
Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate (1) of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”
The national median existing-home price (2) for all housing types was $195,900 in February, down 8.2 percent from a year earlier when the median was $213,500. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively fewer sales in higher priced markets.
Home prices within metropolitan areas are more telling. The most recent data shows roughly half of the metro areas in the U.S. with price increases, with healthy gains in markets such as Oklahoma City and Trenton, N.J. “In other areas such as Sacramento, a rapid price decline has induced buyers to come into the market and sales are now rising,” Yun said. “The relationship between home prices, interest rates and income has improved to the point where buyers are more serious about making offers.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92 percent in February from 5.76 percent in January; the rate was 6.29 percent in February 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said that negotiation and knowledge are even more important in the current market. “Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home’s value,” he said. “Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both buyers and sellers, today as much as ever.”
Total housing inventory fell 3.0 percent at the end of February to 4.03 million existing homes available for sale, which represents a 9.6-month supply (3) at the current sales pace, down from a 10.2-month supply in January.
Single-family home sales increased 2.8 percent to a seasonally adjusted annual rate of 4.47 million in February from an upwardly revised 4.35 million in January, but are 22.9 percent below 5.80 million-unit level a year ago. The median existing single-family home price was $193,900 in February, down 8.7 percent from February 2007.
Existing condominium and co-op sales rose 3.7 percent to a seasonally adjusted annual rate of 560,000 units in February from a downwardly revised 540,000 in January, and are 29.7 percent below the 797,000-unit pace in February 2007. The median existing condo price (4) was $211,700 in February, which is 4.9 percent lower than a year ago.
Regionally, existing-home sales in the Northeast jumped 11.3 percent to an annual pace of 890,000 in February, but are 26.4 percent below February 2007. The median price in the Northeast was $264,800, up 0.4 percent from a year ago.
Existing-home sales in the Midwest rose 2.5 percent in February to a level of 1.24 million but are 19.5 percent below a year ago. The median price in the Midwest was $143,900, which is 7.1 percent lower than February 2007.
In the South, existing-home sales increased 2.1 percent to an annual rate of 1.99 million in February but are 22.0 percent below February 2007. The median price in the South was $163,400, down 8.6 percent from a year ago.
Existing-home sales in the West slipped 1.1 percent to an annual rate of 920,000 in February, and are 29.2 percent below a year ago. The median price in the West was $290,400, down 13.4 percent from February 2007.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
# # #
(1) The 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 percent of total home sales, are based on a much larger sample – nearly 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
(2) The 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 geographic 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.
(3) Total 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 (e.g., condos were 9.5 percent of transactions in 1998, 8.5 percent in 1990 and only 6.1 percent in 1982).
(4) Because 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 March will be released April 22. The next Forecast / Pending Home Sales Index is scheduled for April 8.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate (1) of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”
The national median existing-home price (2) for all housing types was $195,900 in February, down 8.2 percent from a year earlier when the median was $213,500. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively fewer sales in higher priced markets.
Home prices within metropolitan areas are more telling. The most recent data shows roughly half of the metro areas in the U.S. with price increases, with healthy gains in markets such as Oklahoma City and Trenton, N.J. “In other areas such as Sacramento, a rapid price decline has induced buyers to come into the market and sales are now rising,” Yun said. “The relationship between home prices, interest rates and income has improved to the point where buyers are more serious about making offers.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92 percent in February from 5.76 percent in January; the rate was 6.29 percent in February 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said that negotiation and knowledge are even more important in the current market. “Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home’s value,” he said. “Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both buyers and sellers, today as much as ever.”
Total housing inventory fell 3.0 percent at the end of February to 4.03 million existing homes available for sale, which represents a 9.6-month supply (3) at the current sales pace, down from a 10.2-month supply in January.
Single-family home sales increased 2.8 percent to a seasonally adjusted annual rate of 4.47 million in February from an upwardly revised 4.35 million in January, but are 22.9 percent below 5.80 million-unit level a year ago. The median existing single-family home price was $193,900 in February, down 8.7 percent from February 2007.
Existing condominium and co-op sales rose 3.7 percent to a seasonally adjusted annual rate of 560,000 units in February from a downwardly revised 540,000 in January, and are 29.7 percent below the 797,000-unit pace in February 2007. The median existing condo price (4) was $211,700 in February, which is 4.9 percent lower than a year ago.
Regionally, existing-home sales in the Northeast jumped 11.3 percent to an annual pace of 890,000 in February, but are 26.4 percent below February 2007. The median price in the Northeast was $264,800, up 0.4 percent from a year ago.
Existing-home sales in the Midwest rose 2.5 percent in February to a level of 1.24 million but are 19.5 percent below a year ago. The median price in the Midwest was $143,900, which is 7.1 percent lower than February 2007.
In the South, existing-home sales increased 2.1 percent to an annual rate of 1.99 million in February but are 22.0 percent below February 2007. The median price in the South was $163,400, down 8.6 percent from a year ago.
Existing-home sales in the West slipped 1.1 percent to an annual rate of 920,000 in February, and are 29.2 percent below a year ago. The median price in the West was $290,400, down 13.4 percent from February 2007.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
# # #
(1) The 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 percent of total home sales, are based on a much larger sample – nearly 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.
(2) The 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 geographic 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.
(3) Total 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 (e.g., condos were 9.5 percent of transactions in 1998, 8.5 percent in 1990 and only 6.1 percent in 1982).
(4) Because 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 March will be released April 22. The next Forecast / Pending Home Sales Index is scheduled for April 8.
Thursday, April 3, 2008
10 Tips to do before selling your home
Here are some basic pointers from the Accredited Home-Staging Specialist (AHS) course from RealtyU that will get most home sellers headed in the right direction; changing their “lived in homes” into “houses for sale.”
1. De-Clutter - This one is simple. De-clutter everywhere; inside and outside. If it’s taking up space it is a potential candidate to be thrown out. The sellers need to make that all important mental conversion from “home to live in” to “house for sale.” Personal “things” are a big distraction as you want the buyers to be able to visualize their own belonging in the house.
2. Repair - Buyers want everything working so don’t disappoint them - dripping faucets, broken windows, leaking roofs, damaged walls and doors, etc, beg the question in the buyer’s mind … What else is broken or doesn’t work?
3. Lots of Light - The last thing home buyers want to see is a dark home with all of the doors and windows covered. Let the light in and open some windows to let in some fresh air. Room de-odorizers leave the impression of covering something up as does a window with the blinds drawn.
4. Clean Windows - Buyers want to know and see the view they will have from every room - don’t make them look through dirty windows. If they don’t the impression of a great view is literally going “out the window.”
5. Kitchen and Bathrooms - Two of the most important rooms. They must be spotless and first class. Just cleaning up isn’t going to be good enough - you need to “deep clean” all counters, floors, cabinets and all the fixtures in the bathrooms. In the bathrooms consider new fixtures or countertops and perhaps redoing the shower and tub enclosures.
If new fixtures are not in the budget you may want to consider having them refinished. Think about having all the tile steam cleaned and make sure all grout is free from grease and dirt.
6. Odors - Absolute deal killers are cigarette or pet odors. If this is a problem - have the drapes, carpets and furniture professionally cleaned and “no smoking” in the house. Also, cooking odors are not a good thing. The best bet - fresh air. Often a little lemon oil mixed with water in a spray bottle “lightly used” will add just a bit of freshness without overpowering the house.
7. Paint - A fresh coat of paint on the outside or inside is an excellent way of freshening up your home. Be sure they use neutral colors and avoid accent painting - they are only guessing what the buyer likes. This can be done by the home sellers but in most cases they should use a professional painter. It’s always a bigger job than they think.
8. Yard Work - Deal with overgrown bushes, shrubs and trees. Everything in the yard needs to be trimmed, watered, manicured and “living.” Remove everything lying around the yard including sports equipment, boats, trailers, toys, etc. You may also add some color by placing some annuals in planters in the back as well as in the front. Curb appeal makes that all important “first impression.”
9. Furniture - The bottom line … less is best. If it’s old, worn or dated they should put it in storage. They need to remember they are setting a stage and the actor needs to be the house - not their furniture.
10. Hardwood Floors - Hardwood floors can be a huge plus for buyers unless they look like a 20 year old basketball court. It may be a great investment to have them all refinished - and suggest to them it’s not a simple weekend project.
1. De-Clutter - This one is simple. De-clutter everywhere; inside and outside. If it’s taking up space it is a potential candidate to be thrown out. The sellers need to make that all important mental conversion from “home to live in” to “house for sale.” Personal “things” are a big distraction as you want the buyers to be able to visualize their own belonging in the house.
2. Repair - Buyers want everything working so don’t disappoint them - dripping faucets, broken windows, leaking roofs, damaged walls and doors, etc, beg the question in the buyer’s mind … What else is broken or doesn’t work?
3. Lots of Light - The last thing home buyers want to see is a dark home with all of the doors and windows covered. Let the light in and open some windows to let in some fresh air. Room de-odorizers leave the impression of covering something up as does a window with the blinds drawn.
4. Clean Windows - Buyers want to know and see the view they will have from every room - don’t make them look through dirty windows. If they don’t the impression of a great view is literally going “out the window.”
5. Kitchen and Bathrooms - Two of the most important rooms. They must be spotless and first class. Just cleaning up isn’t going to be good enough - you need to “deep clean” all counters, floors, cabinets and all the fixtures in the bathrooms. In the bathrooms consider new fixtures or countertops and perhaps redoing the shower and tub enclosures.
If new fixtures are not in the budget you may want to consider having them refinished. Think about having all the tile steam cleaned and make sure all grout is free from grease and dirt.
6. Odors - Absolute deal killers are cigarette or pet odors. If this is a problem - have the drapes, carpets and furniture professionally cleaned and “no smoking” in the house. Also, cooking odors are not a good thing. The best bet - fresh air. Often a little lemon oil mixed with water in a spray bottle “lightly used” will add just a bit of freshness without overpowering the house.
7. Paint - A fresh coat of paint on the outside or inside is an excellent way of freshening up your home. Be sure they use neutral colors and avoid accent painting - they are only guessing what the buyer likes. This can be done by the home sellers but in most cases they should use a professional painter. It’s always a bigger job than they think.
8. Yard Work - Deal with overgrown bushes, shrubs and trees. Everything in the yard needs to be trimmed, watered, manicured and “living.” Remove everything lying around the yard including sports equipment, boats, trailers, toys, etc. You may also add some color by placing some annuals in planters in the back as well as in the front. Curb appeal makes that all important “first impression.”
9. Furniture - The bottom line … less is best. If it’s old, worn or dated they should put it in storage. They need to remember they are setting a stage and the actor needs to be the house - not their furniture.
10. Hardwood Floors - Hardwood floors can be a huge plus for buyers unless they look like a 20 year old basketball court. It may be a great investment to have them all refinished - and suggest to them it’s not a simple weekend project.
Wednesday, April 2, 2008
Special 5.875% Loans for South Carolina Teachers
SC State Housing Authority is excited to announce our 2008 PALMETTO HERO PROGRAM. The Hero selected for the 2008 initiative is “Teachers”. The Borrower must have his or her South Carolina Teachers Certification and currently teach or have a contract to begin teaching within 60 days of closing on the home. He/she must live and teach in South Carolina. The borrower(s) must meet State Housings First-Time homebuyer requirements. The program has a reduced mortgage interest rate and down payment assistance available. The program will be limited to $20 million. Loans are on a first come first serve basis and borrowers must have an accepted sales contract on a home prior to reserving funds. All State Housing loan policies and procedures will be in affect for this program. See our program guides and manual for specific loan details.
INTEREST RATE - Interest rate will be 5.875
DOWN PAYMENT ASSISTANCE
Tier I - $5,000 Repayable Down Payment Assistance.
$5,000 Repayable Loan has an interest rate of 0% and payments will begin the third anniversary of the first payment on the first mortgage. The payment on the maximum assistance amount of $5,000.00
will be $83.33 per month for 5 years.
Tier I I - $7,000 Forgivable Down Payment Assistance
$7,000 Forgivable Loan requires the borrower to live in the purchased property for five years in order for the loan to be forgiven. The loan must be repaid if the Borrower(s) fails to remain in the property for a minimum of 60 months. (20% of the loan amount is forgiven each year)
www.843Realtor.com
INTEREST RATE - Interest rate will be 5.875
DOWN PAYMENT ASSISTANCE
Tier I - $5,000 Repayable Down Payment Assistance.
$5,000 Repayable Loan has an interest rate of 0% and payments will begin the third anniversary of the first payment on the first mortgage. The payment on the maximum assistance amount of $5,000.00
will be $83.33 per month for 5 years.
Tier I I - $7,000 Forgivable Down Payment Assistance
$7,000 Forgivable Loan requires the borrower to live in the purchased property for five years in order for the loan to be forgiven. The loan must be repaid if the Borrower(s) fails to remain in the property for a minimum of 60 months. (20% of the loan amount is forgiven each year)
www.843Realtor.com
Tuesday, April 1, 2008
investors bet that the worst of the nation's credit struggles has been felt
Wall Street began the second quarter with a big rally Tuesday as investors rushed back into stocks, optimistic that the worst of the credit crisis has passed and that the economy is faring better than expected. The Dow Jones industrials surged nearly 400 points, and all the major indexes were up more than 3 percent.
Financial stocks were among the big winners after Lehman Brothers Holdings Inc. and Switzerland's UBS AG issued new shares to help bolster their balance sheets. With that upbeat news and a fresh quarter ahead of them, investors appear quite willing to make some bets that the worst of the damage from the nation's credit struggles has been felt. Moreover, the banks' moves buttressed the view that financial services companies are taking aggressive action to improve their capital bases and stave off the potential of a collapse similar to Bear Stearns Cos.
Analysts believe there must be a recovery in bank and brokerages to lead major stock indexes higher. Some of the biggest financial players had their sharpest moves of the year Tuesday -- Citigroup Inc. shot up 11 percent, JPMorgan Chase & Co. rose 9 percent, and Lehman surged 18 percent.
"Investors have a difficult time making decisions about the stock market if they don't have confidence in major financial institutions, so there's been a lot of sideline cash," said Richard Cripps, chief market strategist for Stifel Nicolaus. "The extreme conditions that we've seen here over the past few months has been missing that confidence ... but that appears to be changing, and we're seeing the response."
Meanwhile, Wall Street got another boost when the Institute for Supply Management said its March index of national manufacturing activity rose to a reading of 48.6 -- indicating a contraction, but a slower one than in February and tamer than many analysts had predicted. Government data on construction spending for February also came in better than expected.
The Dow rose 391.47, or 3.19 percent, to 12,654.47. It marked the eighth-biggest point gain ever for the Dow, and the third time in two weeks it came close to or surpassed 400 points.
Broader stock indicators also gained sharply. The Standard & Poor's 500 index rose 47.48, or 3.59 percent, to 1,370.18 -- the index's best start to a second quarter since 1938. And, the Nasdaq composite index rose 83.65, or 3.67 percent, to 2,362.75.
The advance was in contrast to a lackluster session on Monday, where stocks managed a moderate gain in the final session of a dismal first quarter. Major indexes ended the first three months of 2008 with massive losses, marking the worst period since the third quarter of 2002 when Wall Street was approaching the lowest point of a protracted bear market.
Renewed enthusiasm that the credit crisis might be waning was also felt in the Treasury market, where government securities fell as investors withdrew money to take bets on stocks. The 10-year Treasury note's yield, which moves opposite its price, rose to 3.55 percent from 3.43 percent late Monday. The yield edged up to 3.56 percent in after-hours trading.
Financial stocks were among the big winners after Lehman Brothers Holdings Inc. and Switzerland's UBS AG issued new shares to help bolster their balance sheets. With that upbeat news and a fresh quarter ahead of them, investors appear quite willing to make some bets that the worst of the damage from the nation's credit struggles has been felt. Moreover, the banks' moves buttressed the view that financial services companies are taking aggressive action to improve their capital bases and stave off the potential of a collapse similar to Bear Stearns Cos.
Analysts believe there must be a recovery in bank and brokerages to lead major stock indexes higher. Some of the biggest financial players had their sharpest moves of the year Tuesday -- Citigroup Inc. shot up 11 percent, JPMorgan Chase & Co. rose 9 percent, and Lehman surged 18 percent.
"Investors have a difficult time making decisions about the stock market if they don't have confidence in major financial institutions, so there's been a lot of sideline cash," said Richard Cripps, chief market strategist for Stifel Nicolaus. "The extreme conditions that we've seen here over the past few months has been missing that confidence ... but that appears to be changing, and we're seeing the response."
Meanwhile, Wall Street got another boost when the Institute for Supply Management said its March index of national manufacturing activity rose to a reading of 48.6 -- indicating a contraction, but a slower one than in February and tamer than many analysts had predicted. Government data on construction spending for February also came in better than expected.
The Dow rose 391.47, or 3.19 percent, to 12,654.47. It marked the eighth-biggest point gain ever for the Dow, and the third time in two weeks it came close to or surpassed 400 points.
Broader stock indicators also gained sharply. The Standard & Poor's 500 index rose 47.48, or 3.59 percent, to 1,370.18 -- the index's best start to a second quarter since 1938. And, the Nasdaq composite index rose 83.65, or 3.67 percent, to 2,362.75.
The advance was in contrast to a lackluster session on Monday, where stocks managed a moderate gain in the final session of a dismal first quarter. Major indexes ended the first three months of 2008 with massive losses, marking the worst period since the third quarter of 2002 when Wall Street was approaching the lowest point of a protracted bear market.
Renewed enthusiasm that the credit crisis might be waning was also felt in the Treasury market, where government securities fell as investors withdrew money to take bets on stocks. The 10-year Treasury note's yield, which moves opposite its price, rose to 3.55 percent from 3.43 percent late Monday. The yield edged up to 3.56 percent in after-hours trading.
2nd home sales still strong
The combined total of vacation- and investment-home sales declined with the overall market in 2007, but still accounted for 33% of all existing- and new-home sales, which is close to historic norms, according to the National Association of Realtors®.
The market share of homes purchased for investment last year was 21%, down from 22% in 2006, while another 12% were vacation homes, compared with a 14% market share in 2006. The total share of second homes declined from 36% of transactions in 2006.
NAR’s annual Investment and Vacation Home Buyers Survey shows vacation-home sales dropped 30.6% to 740,000 in 2007 from a record 1.07 million in 2006, while investment-home sales fell 18.1% to 1.35 million last year from 1.65 million in 2006. At the same time, primary residence sales declined 10.0% to 4.34 million in 2007 from 4.82 million in 2006.
Lawrence Yun, NAR chief economist, said the findings suggest different cycles for each of the sectors over the past two years.
“Investment-home sales declined sharply in 2006 as speculators disappeared, leaving the market to serious buyers, with the pattern continuing in 2007,” he said. “Vacation-home sales rose to a new record in 2006 because there was a pent-up demand from buyers who couldn’t find a property as a result of tight supplies in preceding years.”
The overall sales decline in 2007 resulted from a combination of factors.
“Certainly, second homes are discretionary purchases and there is a natural tendency to pull back from big-ticket items in periods of uncertainty,” Yun said. “The other factor is the disruption in the mortgage market, with a significant tightening of credit during the second half of 2007. Some buyers simply adopted a wait-and-see attitude.”
Yun said lifestyle factors and strong demographics remain positive for the vacation home market. “Investment considerations are secondary for vacation-home buyers, so there is some dormant underlying demand,” he said. “A peak of population is moving through the prime years for buying recreational property. It is welcoming to see investment sales returning to pre-boom sales activity.”
The median price of a vacation home was $195,000 in 2007, down 2.5% from $200,000 in 2006. The typical investment property cost $150,000 last year, unchanged from 2006.
Fifty-nine percent of vacation homes purchased in 2007 were detached single-family homes, 29% condos, 7% townhouses or row houses, and 5% other. In 2006, single family homes accounted for 67% of vacation-home sales, while condos were 21%.
There were no significant changes in investment housing types. Sixty-one percent of investment homes purchased in 2007 were detached single-family homes, 20% condos, 11% townhouses or row houses, and 8% other. Twenty-eight percent of vacation-home buyers paid cash for their property, as did 35% of investment buyers.
Sixty-five percent of vacation home buyers and 71% of investment home buyers purchased existing homes, while the remainder purchased new homes.
The typical vacation-home buyer in 2007 was 46 years old, had a median household income of $99,100, and purchased a property that was a median of 287 miles from their primary residence.
In listing the reasons for purchasing a vacation home, 84% of buyers wanted to use the home for vacation or as a family retreat; 30% to use as a primary residence in the future; 26% to diversify investments; 25% to rent to others; 16% for the tax benefits; 14% for use by a family member, friend or relative; and 6% because they had extra money to spend.
Last year, 19% of vacation homes were purchased in the Northeast, 16% in the Midwest, 41% in the South and 24% in the West. In terms of location, 30% of vacation homes were purchased in rural areas, 20% in resorts, 20% in a suburb and 14% in an urban area or central city.
Investment-home buyers last year had a median age of 42, earned an income of $92,900, and bought a home that was relatively close to their primary residence - a median distance of 27 miles.
When asked about the most important reasons for their purchase of an investment home, 51% said to provide rental income; 39% to diversify investments; 21% to use for vacations or as a family retreat; 16% for use by a family member, friend or relative; 11% for tax benefits; 10% to use as a primary residence in the future; and 4% because they had extra money to spend.
Twenty-three percent of investment properties purchased in 2007 were in the Northeast, 19% in the Midwest, 38% in the South and 21% in the West.
Thirty-nine percent of investment homes were purchased in a suburb and another 20% in an urban or central city area, 21% in a small town, 15% in a rural area, and 5% in a resort area.
Vacation-home buyers plan to keep their property for a median of 10 years; 38% plan to keep their vacation home for 11 years or more. Investment buyers plan to hold their property for a median of four years, with 29% planning to keep for six years or more. However, 10% of investment buyers plan to sell in one year or less.
Eight in 10 second-home buyers consider it a good time to invest in real estate, compared with 59% of primary residence buyers. Forty-four percent of vacation-home buyers and 57% of investment buyers said they were likely to purchase another property within two years.
NAR’s 2007 Investment and Vacation Home Buyers Survey, conducted in March 2008, includes answers from 1,965 usable responses. The survey controlled for age and income, based on information from the larger 2007 National Association of Realtors® Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents.
The market share of homes purchased for investment last year was 21%, down from 22% in 2006, while another 12% were vacation homes, compared with a 14% market share in 2006. The total share of second homes declined from 36% of transactions in 2006.
NAR’s annual Investment and Vacation Home Buyers Survey shows vacation-home sales dropped 30.6% to 740,000 in 2007 from a record 1.07 million in 2006, while investment-home sales fell 18.1% to 1.35 million last year from 1.65 million in 2006. At the same time, primary residence sales declined 10.0% to 4.34 million in 2007 from 4.82 million in 2006.
Lawrence Yun, NAR chief economist, said the findings suggest different cycles for each of the sectors over the past two years.
“Investment-home sales declined sharply in 2006 as speculators disappeared, leaving the market to serious buyers, with the pattern continuing in 2007,” he said. “Vacation-home sales rose to a new record in 2006 because there was a pent-up demand from buyers who couldn’t find a property as a result of tight supplies in preceding years.”
The overall sales decline in 2007 resulted from a combination of factors.
“Certainly, second homes are discretionary purchases and there is a natural tendency to pull back from big-ticket items in periods of uncertainty,” Yun said. “The other factor is the disruption in the mortgage market, with a significant tightening of credit during the second half of 2007. Some buyers simply adopted a wait-and-see attitude.”
Yun said lifestyle factors and strong demographics remain positive for the vacation home market. “Investment considerations are secondary for vacation-home buyers, so there is some dormant underlying demand,” he said. “A peak of population is moving through the prime years for buying recreational property. It is welcoming to see investment sales returning to pre-boom sales activity.”
The median price of a vacation home was $195,000 in 2007, down 2.5% from $200,000 in 2006. The typical investment property cost $150,000 last year, unchanged from 2006.
Fifty-nine percent of vacation homes purchased in 2007 were detached single-family homes, 29% condos, 7% townhouses or row houses, and 5% other. In 2006, single family homes accounted for 67% of vacation-home sales, while condos were 21%.
There were no significant changes in investment housing types. Sixty-one percent of investment homes purchased in 2007 were detached single-family homes, 20% condos, 11% townhouses or row houses, and 8% other. Twenty-eight percent of vacation-home buyers paid cash for their property, as did 35% of investment buyers.
Sixty-five percent of vacation home buyers and 71% of investment home buyers purchased existing homes, while the remainder purchased new homes.
The typical vacation-home buyer in 2007 was 46 years old, had a median household income of $99,100, and purchased a property that was a median of 287 miles from their primary residence.
In listing the reasons for purchasing a vacation home, 84% of buyers wanted to use the home for vacation or as a family retreat; 30% to use as a primary residence in the future; 26% to diversify investments; 25% to rent to others; 16% for the tax benefits; 14% for use by a family member, friend or relative; and 6% because they had extra money to spend.
Last year, 19% of vacation homes were purchased in the Northeast, 16% in the Midwest, 41% in the South and 24% in the West. In terms of location, 30% of vacation homes were purchased in rural areas, 20% in resorts, 20% in a suburb and 14% in an urban area or central city.
Investment-home buyers last year had a median age of 42, earned an income of $92,900, and bought a home that was relatively close to their primary residence - a median distance of 27 miles.
When asked about the most important reasons for their purchase of an investment home, 51% said to provide rental income; 39% to diversify investments; 21% to use for vacations or as a family retreat; 16% for use by a family member, friend or relative; 11% for tax benefits; 10% to use as a primary residence in the future; and 4% because they had extra money to spend.
Twenty-three percent of investment properties purchased in 2007 were in the Northeast, 19% in the Midwest, 38% in the South and 21% in the West.
Thirty-nine percent of investment homes were purchased in a suburb and another 20% in an urban or central city area, 21% in a small town, 15% in a rural area, and 5% in a resort area.
Vacation-home buyers plan to keep their property for a median of 10 years; 38% plan to keep their vacation home for 11 years or more. Investment buyers plan to hold their property for a median of four years, with 29% planning to keep for six years or more. However, 10% of investment buyers plan to sell in one year or less.
Eight in 10 second-home buyers consider it a good time to invest in real estate, compared with 59% of primary residence buyers. Forty-four percent of vacation-home buyers and 57% of investment buyers said they were likely to purchase another property within two years.
NAR’s 2007 Investment and Vacation Home Buyers Survey, conducted in March 2008, includes answers from 1,965 usable responses. The survey controlled for age and income, based on information from the larger 2007 National Association of Realtors® Profile of Home Buyers and Sellers, to limit any biases in the characteristics of respondents.
Monday, March 31, 2008
March Consumer confidence
Consumer confidence plummeted to a five-year low in March, according to a report released Tuesday, as Americans gloomily surveyed an economic landscape blighted by soaring energy costs, rising inflation, sinking home values and a downturn in the job market.
The Conference Board, a New York-based industry group, said its consumer confidence index dived to 64.5 in March, down dramatically from February’s 76.4 and significantly short of the 73.5 reading that many economists had been anticipating.
The March confidence report, which suggests household spending will drop sharply in coming months, is “very grim news indeed,” said High Frequency Economics’ Ian Shepherdson. “This is one of the most alarming economic reports we have seen in this cycle so far.”
The Conference Board numbers, said Merrill Lynch economist David Rosenberg, “suggest that consumers are on the verge of the worst downturn since the 1970s.” The Federal Reserve’s interest rate cuts and pending tax rebates from the U.S. government “are proving no match for rocketing pump prices, intensifying real estate deflation, the worst financial crisis in decades and a deteriorating economic and employment backdrop,” he said.
Consumer sentiment is an important indicator because it provides a key clue about future economic activity. When jittery consumers begin to cut back on discretionary spending, demand for goods and services weakens across the economy. The Conference Board’s index is also considered to be a particularly nuanced and reliable indicator of conditions in the U.S. job market, and experts scrutinize it for indications about future employment movements.
The index hit its lowest level since March 2003, when Americans were unsettled by the U.S.-led invasion of Iraq. Except for that transient weakness five years ago, the index hasn’t been as low as it was this month since 1993.
Experts said Tuesday’s unexpectedly weak confidence report, while understandable in view of the recent drumbeat of negative financial news, offers more evidence that the U.S. economy probably can’t avoid a recession, if it hasn’t already entered one.
“If confidence stays at this level or moves even lower, real consumer spending and economic growth will slow even more, perhaps sharply,” predicted Steven Wood of Insight Economics.
The Conference Board’s survey asks consumers to assess the economy two ways, through a “present conditions” segment and a forward-looking “expectations” segment.
Historically, people tend to take a more relaxed view of their present circumstances and to worry more about conditions in the coming six months.
Those dynamics were evident in the March data, but because of deepening fears about the economy, both elements of the survey came in worse than expected.
The present situation reading led the decline, dropping 14.2 points in March, to 89.2 from February’s 104.0. A year ago, the reading stood at 138.5.
The “expectations” measure dropped from 58.0 to 47.9, its lowest reading since 1973, when it signaled the coming of the punishing recession of 1974.
“Yes, weaker than in the last four downturns,” BMO Capital Markets analyst Sal Guatieri said of the latest expectations number. “Ouch!”
Consumer confidence, he said, is “now buried deep in recession territory” and it is now “only a matter of time before personal consumption follows suit,” to the detriment of the U.S. economy.
Because there was a hefty jump in the number of consumers who reported that jobs are “hard to get,” a number of economists concluded that the March unemployment rate, due for release in less than two weeks, will rise to 5.0% from 4.8%.
It’s not surprising that consumers are uneasy, noted Joel Naroff, head of the economic consulting firm that bears his name. After all, he said, the daily news is a “constant reminder that the economy is in trouble,” with “payrolls being cut, financial firms failing, housing prices falling at record rates and the Fed trying to do anything and everything to keep conditions from spiraling out of hand.”
As it looks for evidence that the economy is bottoming out, he said, the Federal Reserve “is not likely to find this report helpful.”
The Conference Board, a New York-based industry group, said its consumer confidence index dived to 64.5 in March, down dramatically from February’s 76.4 and significantly short of the 73.5 reading that many economists had been anticipating.
The March confidence report, which suggests household spending will drop sharply in coming months, is “very grim news indeed,” said High Frequency Economics’ Ian Shepherdson. “This is one of the most alarming economic reports we have seen in this cycle so far.”
The Conference Board numbers, said Merrill Lynch economist David Rosenberg, “suggest that consumers are on the verge of the worst downturn since the 1970s.” The Federal Reserve’s interest rate cuts and pending tax rebates from the U.S. government “are proving no match for rocketing pump prices, intensifying real estate deflation, the worst financial crisis in decades and a deteriorating economic and employment backdrop,” he said.
Consumer sentiment is an important indicator because it provides a key clue about future economic activity. When jittery consumers begin to cut back on discretionary spending, demand for goods and services weakens across the economy. The Conference Board’s index is also considered to be a particularly nuanced and reliable indicator of conditions in the U.S. job market, and experts scrutinize it for indications about future employment movements.
The index hit its lowest level since March 2003, when Americans were unsettled by the U.S.-led invasion of Iraq. Except for that transient weakness five years ago, the index hasn’t been as low as it was this month since 1993.
Experts said Tuesday’s unexpectedly weak confidence report, while understandable in view of the recent drumbeat of negative financial news, offers more evidence that the U.S. economy probably can’t avoid a recession, if it hasn’t already entered one.
“If confidence stays at this level or moves even lower, real consumer spending and economic growth will slow even more, perhaps sharply,” predicted Steven Wood of Insight Economics.
The Conference Board’s survey asks consumers to assess the economy two ways, through a “present conditions” segment and a forward-looking “expectations” segment.
Historically, people tend to take a more relaxed view of their present circumstances and to worry more about conditions in the coming six months.
Those dynamics were evident in the March data, but because of deepening fears about the economy, both elements of the survey came in worse than expected.
The present situation reading led the decline, dropping 14.2 points in March, to 89.2 from February’s 104.0. A year ago, the reading stood at 138.5.
The “expectations” measure dropped from 58.0 to 47.9, its lowest reading since 1973, when it signaled the coming of the punishing recession of 1974.
“Yes, weaker than in the last four downturns,” BMO Capital Markets analyst Sal Guatieri said of the latest expectations number. “Ouch!”
Consumer confidence, he said, is “now buried deep in recession territory” and it is now “only a matter of time before personal consumption follows suit,” to the detriment of the U.S. economy.
Because there was a hefty jump in the number of consumers who reported that jobs are “hard to get,” a number of economists concluded that the March unemployment rate, due for release in less than two weeks, will rise to 5.0% from 4.8%.
It’s not surprising that consumers are uneasy, noted Joel Naroff, head of the economic consulting firm that bears his name. After all, he said, the daily news is a “constant reminder that the economy is in trouble,” with “payrolls being cut, financial firms failing, housing prices falling at record rates and the Fed trying to do anything and everything to keep conditions from spiraling out of hand.”
As it looks for evidence that the economy is bottoming out, he said, the Federal Reserve “is not likely to find this report helpful.”
Sunday, March 30, 2008
CCU Pro Day attracts 9 NFL teams
Last year, Coastal Carolina's Pro Day featured Tyler Thigpen and Quinton Teal and drew a handful of people to watch four NFL teams put the duo through drills. This year's Pro Day had 9 NFL teams and over a dozen scouts and coaches to watch Jerome Simpson and Mike Tolbert. Simpson had a stellar workout at the NFL Scouting Combine in Indianapolis. He was only supposed to run pass routes, but at the last moment decided to do the vertical jump. Simpson leaped 41 1/2 inches, nearly four inches better than his mark at the combine. Simpson did not run the 40 yard dash as he stood on his excellent times in indianapolis. Conway native and Citadel QB Duran Lawson threw passes during the pass drills at Brooks Stadium. After dropping passes early on in the workout, Simpson delivered a number of sprawling acrobatic catches that drew applause from the onlookers. Cincinnati Bengals wide receivers coach Mike Sheppard conducted Simpson's receiving drills.
Fullback Mike Tolbert was looking to take advantage of the increased exposure with so many teams watching Simpson and did 24 reps at 225 pounds in the weight room in addition to a 4.7 time in the 40 yard dash. Tolbert hopes to get a late round call in the draft. If he is not drafted, Tolbert is expected to get an undrafted free agent deal and will try and make it to the NFL the same way that Quinton Teal did.
NFL Teams at Coastal Carolina Pro Day
Baltimore Ravens, Buffalo Bills, Cincinnati Bengals, Green Bay Packers, Indianapolis Colts, New Orleans Saints, New York Jets, Saint Louis Rams, San Diego Chargers
Fullback Mike Tolbert was looking to take advantage of the increased exposure with so many teams watching Simpson and did 24 reps at 225 pounds in the weight room in addition to a 4.7 time in the 40 yard dash. Tolbert hopes to get a late round call in the draft. If he is not drafted, Tolbert is expected to get an undrafted free agent deal and will try and make it to the NFL the same way that Quinton Teal did.
NFL Teams at Coastal Carolina Pro Day
Baltimore Ravens, Buffalo Bills, Cincinnati Bengals, Green Bay Packers, Indianapolis Colts, New Orleans Saints, New York Jets, Saint Louis Rams, San Diego Chargers
"Discovery Day" at Coastal Carolina University
Parents and students had the chance to get an up close and personal look at Coastal Carolina University Saturday.
The campus hosted a special "Discovery Day" with programs for prospective students and parents, where they were given campus tours and information on admissions.
The vice president of enrollment services says the events like the one Saturday, give prospective students first-hand knowledge from their peers.
"When you have a student that's interested in coming to a college, they find it very rewarding and an enriching experience to be able to talk to students on the campus themselves," said Judy Vogt, Vice President for Enrollment Services.
Another Discovery Day will be held on the 12h of April.
The campus hosted a special "Discovery Day" with programs for prospective students and parents, where they were given campus tours and information on admissions.
The vice president of enrollment services says the events like the one Saturday, give prospective students first-hand knowledge from their peers.
"When you have a student that's interested in coming to a college, they find it very rewarding and an enriching experience to be able to talk to students on the campus themselves," said Judy Vogt, Vice President for Enrollment Services.
Another Discovery Day will be held on the 12h of April.
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