Game Plan Real Estate in the News Key Economic Numbers Sales Volume & Inventory Sales Prices Forecast

Real Estate in the News

Home Prices Sink Further Declines Reported in All 28 Major Metro Areas Wall Street Journal Jan U.S. Home Prices Keep Weakening as Nine Cities Reach New Lows According to the S&P/Case Shiller Home Price Indices Standard and Poor’s Press Release Jan Louisville Foreclosures up again in 2010 courier-journal.com Jan 2011 Boom’s Home Ownership Gains Lost Wall Street Journal Jan 2011 Price Drop Points to Likely Double Dip in Housing Market cnbc.com Jan. 2011

Market Highlights Rates

Market Highlights Sales Volume

How to Calculate Months of Inventory Find number of active listings in a competitive price range, say $ 300,000-$500,000, say 44. Find the annual sales volume in the subject market, of similar priced units, say 30 units. Divide the annual figure by 12 to get monthly average, to get 2.5 sales per month 44 actives 2.5 s/p/m 17.6 m/inventory

Market Highlights Days on Market

Market Highlights Sales Prices

Glen Oaks Sold Comments ABSOLUTELY FABULOUS! HUGE PRICE REDUCTION Two houses for the price of one. HURRY...PRICE REDUCED $60,000. Major Price reduction INCREDIBLE NEW PRICE REDUCTION

Hillcrest MLS Sold new in June of 2006 for $723,000 which was under appraised value then. (List $619,000). OVER $95,000, PRICE REDUCTION!! LOOKING FOR A GREAT VALUE (List $529,000). GREAT VALUE. SOLD NEW IN 2007 for $619,000!! (List $ 518,300).

MLS Comments Re: Pricing WOW!!!Sellers have Lowered the price!!! Instant Equity according to most recent appraisal. Seller decided to LOWER THE PRICE immediately for a quicker sale. Do NOT miss at this NEWLY SLASHED price of $264, was $318,800. Huge Price reduction on this new listing !

Market Highlights Forecasting

Peering into 2011: Five Features of Next Year’s Housing and Mortgage Markets. (Source Freddie Mac Dec Economic Outlook) Here are five features that will likely characterize the 2011housing and mortgage markets: Low Mortgage Rates. By November, fixed-rate mortgage rates had drifted down to their lowest level since the early 1950s. This laid the foundation for a substantial refinance boom, with refinance accounting for four out of every five single-family loan applications. With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0 percent to 0.25 percent for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market. While some rise in fixed rates is expected, 30-year fixed-rate loans are likely to remain below 5 percent throughout the year, and initial rates on 5/1 hybrid ARMs will likely remain below 4 percent in 2011.

Homebuyer Affordability. The three main ingredients that affect buyer affordability are mortgage rates, house prices, and income. With the first two at or near cyclic lows, buyer affordability is at the highest level in decades. The National Association of Realtors’ Affordability Index for the third quarter reported one of the most affordable buying markets since the inception of the index in 1971.

Fewer Mortgage Originations. More sales in 2011 generally mean more purchase money originations, and that should be a feature of next year’s market. However, refinance activity will likely dwindle. Lower Delinquency Rates. Single-family mortgage delinquency rates remain extraordinarily high but have begun to decline in the aggregate Look for the seriously delinquent rate in the overall market to gradually decline further during 2011, reflecting employment gains and family income growth, additional loan modifications and other foreclosure alternatives, and the transition of foreclosed homes to REO. SOURCE: FREDDIE MAC 2010 Economic Outlook

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