Posts Tagged ‘sales volume’
Thursday, November 10th, 2011
Last week, Fannie Mae released their National Housing Survey for the third quarter of 2011. They survey the American public on a multitude of questions concerning today’s housing market. Each quarter, we like to pull out some of the findings we deem most interesting. Here they are for the most recent report:
Most Important Reasons to Buy a Home
The study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:
- It means having a good place to raise children and provide them with a good education
- You have a physical structure where you and your family feel safe
- It allows you to have more space for your family
- It gives you control of what you do with your living space (renovations and updates)
When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. There is no doubt that families must justify a home purchase from a financial point of view today. However, the reasons they actually buy are the same reasons our parents and grandparents purchased their home – to create a better lifestyle for their families.
The Home as an Investment
Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:
- 64% of the general population (and 69% of homeowners) believe that homeownership is a ‘safe’ investment.
- 55% believe that homeownership has more potential as an investment than any other traditional asset class.
- 68% think that now is a good time to buy a home
Rent vs. Buy
We are always interested in the difference people see in renting vs. owning.
- 63% of renters have aspirations to someday own their own home
- 70% of renters think that owning is superior to renting
- 96% of homeowners see homeownership as a positive experience (4% see it as a negative experience) while 83% of renters see renting as a positive experience (15% see it as a negative experience)
- 97% of homeowners live in a single family residence while 53% of renters live in a multi-unit building
Bottom Line
Even in these difficult times, Americans still realize the value of homeownership both from a financial and social standpoint.
Keep checking RuhlHomes.com for more important information on the housing market.
Provided by: KCM Blog
Tags: agents, buying, Buying a Home, caroline ruhl, first time buyers, home, home buyer programs, home search, illinois real estate, iowa real estate, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, Real Estate News, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, selling your home
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Tuesday, October 25th, 2011
This article was originally published in the Keeping Current Matters newsletter. For more statistics and current prices of owning a home please visit RuhlHomes.com.
Tags: agents, bettendorf rentals, burlington rentals, buying, Buying a Home, buying vs. renting, caroline ruhl, cedar rapids rentals, coralvilles rentals, davenport rentals, dubuque rentals, first time buyers, home prices, housing market, iowa city rentals, maquoketa rentals, moline rentals, mortgage rates, muscatine rentals, Quad Cities Real Estate, quad city rentals, Real Estate, realtors, rent prices, rental homes, renting vs. buying, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes, sales volume
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Tuesday, September 27th, 2011
Let’s face it, in these economically trying times going to a state that is conducive for conducting business is vitally important. If you are looking for work it does not make a great deal of sense going to a state that hinders a businesses ability to succeed.
Likewise, buying a house in a good business environment makes a lot more sense than doing so where businesses will be struggling. So if you are thinking of moving to a state that is favorable for business this list by CNBC is a very smart tool to use.
Virginia came in as the top state. With it’s pro-business state house and proximity to Washington DC, where growth in government spending has created it’s own jobs engine, Virginia is for business lovers. Texas is in second place, with southern states Georgia, North Carolina, and Colorado rounding out the top 5. The only northeast member of the list Massachusetts comes in 6th owing mainly to it’s educated workforce.
The remaining states on our top 10 list are heartland states; Minnesota, Utah, Iowa, and Nebraska. The worst state in the country is Rhode Island with Alaska not far behind.
So if you are starting a business, looking for a job, or interested in investing in real estate, check out this list of the …
Top 10 States for Business in America for 2011
- Virginia
- Texas
- North Carolina
- Georgia
- Colorado
- Massachusetts
- Minnesota
- Utah
- Iowa
- Nebraska
For More Information keep checking RuhlHomes.com
Originally Published by: The Real Estate Bloggers
Tags: Building, buying, Buying a Home, caroline ruhl, home, home search, housing market, Iowa, iowa city area, iowa real estate, iowa real estate communities, Iowa Real Estate Market, Iowa workforce, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, realtors, regional markets, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Market Share, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, Workforce in Iowa
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Thursday, September 1st, 2011
Last week, RealtyTrac released its Q2 2011 U.S. Foreclosure Sales Report. The report confirmed what we are hearing in the marketplace – banks are beginning to look more favorably on short sales as option to foreclosure.
The report dissected the sales of distressed properties in the second quarter of 2011. Here are several of their findings:
- Sales of homes that were in some stage of foreclosure or bank owned accounted for 31 percent of all U.S. residential sales in the second quarter of 2011, down from nearly 36 percent of all sales in the first quarter.
- A total of 102,407 pre-foreclosure homes (short sales) sold in the second quarter, an increase of 19 percent from the previous quarter.
- A total of 162,680 REO homes (foreclosures) sold in the second quarter, virtually unchanged from the first quarter.
- Short sales on average sold for a discount of 21 percentbelow the average sales price of non-foreclosure homes.
- REOs on average sold at a discount of nearly 40 percent below the average sales price of non-foreclosure homes.
This could be a great sign that banks are finally realizing the advantages of short sales over foreclosures.
Bloomberg.com quoted Rick Sharga, senior vice president of RealtyTrac, in an article covering the report:
“This is a glimmer of hope that lenders are getting more realistic. It’s a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers.”
Bottom Line
Banks are beginning to do more short sales. It is time for everyone involved to help in this endeavor. Tomorrow, we will have a short sale expert, Christopher Reale, blog on gaining the right mindset to do just that.
Tags: agents, buying, Buying a Home, caroline ruhl, first time buyers, foreclosure, foreclosures, home, housing market, illinois real estate, Illinois Real Estate Market, iowa real estate, Iowa Real Estate Market, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, quad city, quad city short sales, Real Estate, Real Estate News, Real Estate Sales Volume, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, short sale process, short sale v. foreclosure, short sales
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Wednesday, August 17th, 2011
Our markets continue to be shielded from the rest of the country’s harsh decline in home prices, with our markets seeing a distinct increase, especially in the Quad Cities and Dubuque.
Nationally home prices have fallen 17.50% in the last five years, but all of our markets’ home prices are up: 8.51% in Dubuque; 6.35% in the Quad Cities; 3.68% in Iowa City; and 2.73% in Cedar Rapids.
According to the Federal Housing Finance Agency, of the 309 MSA’s (Metropolitan Statistical Areas) ranked by home price appreciation, all of our markets in eastern Iowa ranked in the top 30% in the nation – Dubuque at 11th; Quad Cities at 30th; Cedar Rapids at 79th; and Iowa City at 92nd.
Analysts attribute national declines to the many foreclosures and short sales, as our markets have not been badly impacted as compared to the rest of the country. Local markets continue to provide a much more stable environment for purchasing homes and investing in real estate.
A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin. Caroline Ruhl is the President and owner of Ruhl&Ruhl REALTORS, and is the fourth generation of the Ruhl family to lead the residential brokerage and home services company. Headquartered in Davenport, Iowa, the company has 285 sales associates and 50 employees based in sales offices located in Bellevue, Bettendorf, Cedar Rapids, Clinton, Coralville, Davenport, DeWitt, Dubuque, Maquoketa, and Muscatine, in Iowa, and in Moline, Illinois. In addition to residential sales, Ruhl&Ruhl offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, property management and mortgage services through 1862 Mortgage and insurance services through the Nelson Ruhl Agency. For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com.
Tags: agents, buying, Buying a Home, caroline ruhl, first time buyers, home, home buyer programs, home search, housing market, Illinois Real Estate Market, iowa real estate, Iowa Real Estate Market, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, Real Estate Sales Volume, realtors, regional markets, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Market Share, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, selling, selling your home
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Thursday, July 14th, 2011
Making predictions can be the ‘kiss-of-death’ for a blog. Even if we get four out of five correct (80%), there are those in the industry who will kill us on the one we got wrong. We believe strongly that when making a real estate decision for you and your family you must look forward and take into consideration how the housing market may change.
For this reason, we are willing to take on the possible wrath of our counterparts by sticking out our necks and predicting these will be the major real estate news stories from now until the end of the year.
Interest Rates Rise
Many, including us, have been surprised that rates have not risen already. However, the next several months are going to see three distinct changes that will propel rates upward.
- As the government starts to leave the mortgage market, private industry will step in. Private industry demands a higher rate of return on their investments. Mortgages will be no different. Studies have shown that 30 year mortgage rates could increase by 1 to 3% over the current rate.
- In many higher priced markets, rolling back Conforming Loan Limits means that rates for the mortgages on these properties will resort back to the rates on private jumbo loans. The FHFA informed us that last year, the difference between mortgage rates for jumbo loans and jumbo-conforming mortgages has varied between about ½ and ¾ of a percentage point.
- As the economy gets better (and we believe it will), the pressure to keep rates low to stimulate growth will abate.
Some Loan Requirements Tighten but More Can Now Get a Loan
Lending institutions have already started to introduce stricter mortgage guidelines. Whether the Quality Residential Mortgage (QRM) requirements are instituted as originally proposed or eased somewhat, there is no doubt that guidelines will continue to tighten as we work through the year. However, we believe the private sector will again start introducing alternative mortgage financing but at a greater expense to the consumer. You WILL be able to get a mortgage. It will just cost you more.
Housing Sales Increase
Contracted sales have shown consistent improvement over the last six months and we feel this will continue and actually begin gaining even greater momentum. We believe there is a ‘pent-up’ buying demand caused by the volatility of the market over the last several years. When interest rates start to move upward and alternative financing becomes more available, these buyers will start to jump off the fence. We believe there will be a major upswing in sales over the next six months.
Distressed Properties Increase Markedly
More people are paying their mortgage on time and that is great news for housing in the long term. However, the numbers of distressed properties currently in the foreclosure process is still very swollen. These properties will begin coming to the market in the second half of the year as short sales and foreclosures. The numbers will be staggering in some areas.
Prices Continue to Soften in Most Markets
The current housing inventory for sale and the distressed properties about to come on the market will vastly outnumber the increased supply of purchasers we will see over the next six months. There will be more houses for sale then there will be buyers purchasing them. That oversupply will continue to put downward pressure on prices through the rest of this year and into 2012.
Ruhl&Ruhl has now stepped out and spoke up on what we think consumers will see in the housing market in the next six months. What headlines do you predict?
For more information on the housing market please visit RuhlHomes.com.
Provided by: KCM Blog
Tags: agents, buying, Buying a Home, caroline ruhl, first time buyers, home, home buyer programs, home search, housing market, housing market headlines, illinois real estate, Illinois Real Estate Market, interest rates, iowa real estate, Iowa Real Estate Market, mortgage rates, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, Real Estate News, Real Estate Sales Volume, realtors, regional housing market, regional markets, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, selling, selling your home
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Thursday, July 7th, 2011
We have reached the midway point of the year. Today, we want to look back over the first six months and give you what we believe were the five items which have had the biggest impact on the real estate industry so far this year.
The Government Wants Out of the Mortgage Business
From the original outline of the Dodd-Frank regulations to the talk of closing Fannie Mae and Freddie Mac to the proposed Quality Residential Mortgage (QRM) guidelines, the government has made it very clear that they want to dramatically limit their involvement in the mortgage industry. What will come of this? Will private industry step up and fill the void created? What will be the increased cost to the consumer? Only time will tell.
Despite Early Headlines, Sales are Increasing
Headlines earlier in the year announced the total collapse of the housing market. To those in the know, it was obvious that comparing sales numbers in the first four months of this year to the same period last year made absolutely no sense. The largest tax credit ever given to home buyers expired on April 30, 2010. Large numbers of transactions were dragged forward last year so buyers could take advantage of the credit. Pending home sales (transactions going into contract) on the other hand have done quite nicely and many institutions (ex. Fannie Mae, Freddie Mac, NAR and Moody’s Analytics) are projecting good sales numbers throughout the rest of the year.
Amid Warnings of a ‘Double-Dip’, Prices Began to Stabilize
Prices continued to retreat for the first few months of the year and brought the bears out. Some called for another major fall in prices (15-20%) and almost all recalculated their projections to show continued depreciation. Just as these new projections were made available, some pricing indices announced that values actually increased (though by a rather minimal percentage). Again, those with the best understanding of the market were quick to explain…
Foreclosures Were Delayed Longer Than Originally Projected
Distressed properties (foreclosures and short sales) have a major impact on the values of all properties in an area. Because of paperwork challenges, the flow of these properties to the market was virtually shut off. At the beginning of the year, most experts believed the banks would correct these challenges by the end of the first quarter. That didn’t happen and therefore many of these properties were delayed coming to the market. This is a major reason why prices seemed to recover: there were fewer discounted properties available for sale. Most now believe that the banks are within 60-90 days of releasing this inventory and those prices will again begin to soften.
Main Stream Media Begins to Announce “Now Is the Time to Buy!”
With prices and interest rates at historic lows and the chance that mortgages will become more costly as the private sector steps in, many in the main stream media are announcing that buying a home now makes sense. In the last 45 days, the Wall Street Journal, Forbes Magazine, National Public Radio (NPR) and CBS Money Watch have all ran articles calling for the readership to consider buying now!
Next week, we will share what we believe will be the top 5 stories in the second half of 2011.
Keep checking RuhlHomes.com for the most up to date and interesting information on the housing market.
Tags: agents, buying, Buying a Home, caroline ruhl, home, home search, housing market, illinois real estate, Illinois Real Estate Market, iowa real estate, Iowa Real Estate Market, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, selling your home
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Friday, June 24th, 2011
There has been much confusion as to where housing prices are headed. We have actually blogged on the issue recently. Today, we want to give our opinion on this subject for the short term. We believe sellers have a window of opportunity for the next 90-120 days in which to sell their homes for maximum price. We believe there will be increased downward pressure on home prices later this year and the first half of 2012.
Why renewed downward pressure?
Any item’s price is determined by ‘supply and demand’. In many parts of the country existing housing inventory is already high and actually increasing. In addition, an inventory of distressed properties (foreclosures and short sales) will be coming to market later this year. This inventory has been delayed for the last several months because of faulty paperwork by the banks when they originally attempted foreclosure proceedings on these homes.
Celia Chen, of Moody’s Analytics explains:
“Foreclosures are weighing on the outlook for U.S. house prices, and the slow resolution of issues surrounding the so-called robo-signing scandal is keeping distressed homes off the market”.
The New York Times also recently reported on this issue. They looked at the delays in certain states. As an example, this is what they found in New York:
“Last September, before the documentation crisis, nearly 1,500 New Yorkers lost their houses as a result of foreclosure, according to LPS. The average over the last six months: 286. That is far lower than at any point since the recession began.”
Banks are now correcting these errors.
There is evidence that the banks are getting their documentation in order and about to again increase their foreclosure repossessions. Housing Wire reported:
“Since major lenders delayed foreclosures to fix a broken process late last year, the amount of filings declined, but in May signs emerged the effect might be wearing off.”
They went on to quote RealtyTrac CEO James Saccacio:
“…lenders are somewhat unevenly pushing batches of bad loans through foreclosure as they overhaul their paperwork and documentation procedures and as they determine that some local markets are able to absorb more foreclosure inventory… Foreclosure processing delays continue to mask the true face of the foreclosure situation, although there were some clues in the May numbers of what lies behind that mask.”
What will this mean to home prices?
As this inventory comes to market, it will impact prices in two ways:
- It will provide discounted competition for buyers
- It will impact the appraisal values of all homes in the area
Again, we quote Celia Chen:
“It is quite possible that house prices will pick up slightly in the second or third quarter of this year, as foreclosure sales remain depressed while nondistress sales pick up…By the fourth quarter of this year, however, the distress share will rise, sending the house price index back down…
House prices will founder until early next year and start rising in earnest at the end of 2012.”
Bottom Line
There is a window of opportunity currently which sellers should take advantage of. Waiting until later this year or until next year will not guarantee a higher sales price. If anything, it probably guarantees the exact opposite.
Keep checking RuhlHomes.com for the most up to date information on the housing market.
Provided By: KCM Blog
Tags: agents, buying, Buying a Home, caroline ruhl, first time buyers, foreclosure, foreclosure proces, home, home buyer programs, housing market, illinois real estate, Illinois Real Estate Market, iowa real estate, Iowa Real Estate Market, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, Real Estate Sales Volume, realtors, regional markets, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, selling, selling your home, short sale, short sale process
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Tuesday, June 21st, 2011
As prices continue to soften, more and more homeowners will fall into a position of negative equity on their homes. This means that the balance on their mortgage is greater than the value of their home. The reason this is important is that people are more prone to strategically default on their mortgage when ‘underwater’.
What is a strategic default?
Let’s first define strategic default in simple terms. According to Wikipedia:
A strategic default is the decision by a borrower to stop making payments (i.e. default) on a debt despite having the financial ability to make the payments.
This is particularly associated with residential and commercial mortgages, in which case it usually occurs after a substantial drop in the house’s price such that the debt owed is (considerably) greater than the value of the property – the property negative equity or “underwater” – and is expected to remain so for the foreseeable future, such as following the bursting of a real estate bubble. Such borrowers are called “walkaways.”
This definition itself serves as the explanation as to why people will default.
How do Americans view strategic default?
In Fannie Mae‘s recent National Housing Survey, they shed some light on American’s thoughts on strategic default.
- The number of underwater homeowners who believe it is okay to default on your mortgage if you are under financial distress has almost doubled in the last twelve months (14% to 27%).
- 47% of people that are underwater and behind on their mortgage have considered strategic default.
- Those who know a strategic defaulter are more likely to have considered defaulting.
- 1 in 5 Americans knows a strategic defaulter
Bottom Line
As more people enter into negative equity, more will be tempted to ‘walk away’ from their mortgage obligations. If they do walk, that will increase the number of homes entering foreclosure.
Keep checking RuhlHomes.com for more information on the housing market.
Provided By: KCM Blog
Tags: 1862 Mortgage, agents, buying, Buying a Home, caroline ruhl, defaulting on a loan, first time buyers, foreclosure, foreclosure market, home, home buyer programs, home loan, home underwater, housing market, illinois real estate, Illinois Real Estate Market, iowa real estate, Iowa Real Estate Market, mortgage default, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, realtors, regional markets, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Market Share, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, strategic default
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Monday, June 6th, 2011
You have finally found the house of your dreams. It is priced right and is receiving a lot of attention from other buyers. You don’t want to miss this opportunity so you are ready to put in an offer with the real estate agent immediately. What can you do to guarantee your offer is the one accepted? Financially, offers can be broken down into three categories:
1.) An All-Cash Offer
Obviously, a cash purchase is always favored by any seller. In today’s real estate market, an all-cash offer is even more enticing. Last month, one in four real estate transactions were impacted by a low appraisal. An all-cash buyer eliminates the need for the bank appraisal.
2.) A Non-Contingency Offer
If you don’t have the cash reserves for an all-cash purchase, the next best thing would be to make a non-contingency offer. To do this you should be already pre-approved for a mortgage and have your current house already in contract. This gives the seller the confidence that you are already a qualified buyer who will be able to complete the purchase.
3.) A Contingency Offer
Some buyers start the process of looking for a new home before their current home is sold. This could be a big mistake. If you find the home you were hoping for (perfect for your family AND priced right), it will be very difficult to get your offer accepted because you are not actually qualified to buy.
Asking a seller to wait for your home to sell is somewhat unreasonable in today’s environment. One of the reasons you would want the home is because the seller priced the home at a value to sell it NOW. They want to know it is sold when they accept an offer. They normally will not even entertain a contingency offer.
Bottom Line
Unless you have the ability to purchase with cash, the best thing to do is to be pre-approved for a mortgage and have your current house already in contract before looking for the home of your dreams. That guarantees you will get the home you love at a price that makes sense.
1862 Mortgage can you help you with a free mortgage pre-approval, visit RuhlHomes.com/1862Mortgage and click on the Online Pre Approval application, your information will be sent to a trusted loan officer that will get in touch with you right away. You are also always able to get a free pre approval via phone by calling 866-441-1776.
Keep checking RuhlHomes.com for more information on the housing market.
Provided by: KCM Blog
Tags: accepting an offer, agents, buying, Buying a Home, caroline ruhl, cash offer, contingency, first time buyers, home, home buyer programs, home search, housing market, Illinois Real Estate Market, iowa real estate, Iowa Real Estate Market, pending, putting in an offer, quad cities, Quad Cities Real Estate, Quad Cities Real Estate Market, Real Estate, realtors, ruhl, Ruhl and Ruhl, ruhl&ruhl, Ruhl&Ruhl Realtors, RuhlHomes, sales volume, selling, selling your home
Posted in Tips & Hints | No Comments »
Last week, Fannie Mae released their National Housing Survey for the third quarter of 2011. They survey the American public on a multitude of questions concerning today’s housing market. Each quarter, we like to pull out some of the findings we deem most interesting. Here they are for the most recent report:
