The government price index issued by the Federal Housing Finance Agency, which uses Fannie Mae and Freddie Mac loan data on home purchases, showed that prices were roughly steady nationally from the third to fourth quarters of 2011, slipping only 0.1 percent.

Housing affordability conditions improved in most metropolitan areas from existing-home prices and record-low mortgage interest rates in the fourth quarter of 2011, with rising sales and lower inventory creating more balanced conditions.

The great news is thus far it looks like demand is strengthening just as many knew it would as jobs and incomes started to rise again.  Americans still prefer to own over renting.  Even those who aren’t able to get into ownership now will want to as soon as they can.  Hard to believe now that everyone knows housing is a bargain at these prices and these mortgage rates, right?  Now is the time.

Call and let us help.  Doug & Kathie  (248) 909-9511

Average mortgage rates went up this week as the housing market ended 2011 on a high note, according to Freddie Mac's weekly survey of rates.

The 30-year fixed-rate mortgage averaged 3.98% for the week ending Jan. 26, reversing its previous three-week trend of setting all-time record lows. Still, this marks the eighth consecutive week the 30-year fixed-rate mortgage has remained below 4%.

Last week it averaged 3.88% and last year at this time it was at 4.8%.

New Home Sales Drop 2.2% in December as 2011 Hits Record Low

New single-family home sales fell 2.2% to an annual rate of 307,000 in December from 314,000 a month earlier, according to the Commerce Department.

The seasonally adjusted rate, dropped 7.3% from 331,000 a year earlier. The preliminary estimate for actual new homes sold in 2011 came in at 302,000, 6.2% below 323,000 sold in 2010. Annual sales marked a new low since at least 1963, the start of Commerce Department records.

For some perspective, builders sold 1.28 million new homes in 2005.

Foreclosures for Sale: 34% Off

Foreclosure homes sold for 34 percent less than the average price of a non-distressed home during the third quarter of 2011, according to new data released by RealtyTrac recently.

The average sales price of homes in the process of foreclosure or bank-owned was $165,322 over the July-to-September period last year.

RealtyTrac says third parties purchased a total of 221,536 residential properties classified as foreclosures or REO during the third quarter of 2011, representing just 20 percent of all residential sales during that timeframe.

Confidence has bounced back to levels last seen during the summer (July 2011, 59.2). Consumers’ assessment of current conditions finally improved, after six months of steady declines. Consumers’ apprehension regarding the short-term outlook for business conditions, jobs and income prospects eased considerably. Consumers appear to be entering the holiday season in better spirits.

Consumers’ appraisal of present-day conditions improved in November. Those stating business conditions are “good” increased to 13.3 percent from 11.2 percent, while those stating business conditions are “bad” declined to 38.2 percent from 43.7 percent. Consumers’ appraisal of the labor market was also more upbeat. Those claiming jobs are “plentiful” increased to 5.8 percent from 3.6 percent, while those saying jobs are “hard to get” decreased to 42.1 percent from 46.9 percent.

Consumers’ outlook for the job market also improved. Those expecting more jobs in the months ahead rose to 12.9 percent from 10.8 percent, while those expecting fewer jobs decreased to 24.1 percent from 27.6 percent. The proportion of consumers anticipating an increase in their incomes rose to 14.9 percent from 11.1 percent.

Consumers’ short-term outlook, which had declined last month, was less negative in November. The proportion of consumers anticipating business conditions to improve over the next six months increased to 13.6 percent from 10.2 percent, while those anticipating business conditions will worsen declined to 15.8 percent from 21.3 percent.

The most common problem we see at this time of year is caused when homeowners forget to remove garden hoses from exterior faucets and to turn off the water supply inside the house. Once this is done you need to open the outside faucet and allow the water to drain. If you can’t shut off the water inside the home you need to stop by the hardware store and pick up an insulated cover for each outside faucet.

You can find them on line at Aubuchon Hardware.

 If you’re thinking this is not the "BEST" you are right. Sales generally peak in March and April of the year. But the Winter holidays are not the slowest time of the year. Normally, August is the slowest month!  So what does all this mean to you if you’re trying to sell a home?

It means that if you are truly interested in selling your home there is never a reason to leave your home off the market. A very successful Realtor friend of mine always has her best month in December. Why? Because she works to make it happen and anyone looking at this time of the year is REALLY sincere about buying.

What does this mean to you if you’re thinking of taking your home off the market for the Holiday?

DON’T

1. There is less competition for buyers.

2. Winter prospects are more serious buyers.

3. Your home looks better during the holidays.

4. One of the highest percentages if “the listing sold” to “listing taken” occurs during this time of year.

5. Exceptionally LOW interest rates.

6. You may receive more money for your home now because you have less competition.

7. Throughout the holiday season, you may restrict showings during your personal family events.

8. Buyers have more time to look at homes during the holidays, especially during vacations.

9. January is traditionally the biggest transfer month and you must be on the market to capture that market.

10. By selling now you can have a delayed closing or extended occupancy until the beginning of the following year if you want it.

11. When you sell during the winter you have an opportunity to buy during the spring, when many homes are on the market.

12. You may have fewer actual showings, but more qualified and motivated prospects.

13. Corporate transfers, who need to buy a home now, can’t wait until spring.

A few Cider Mills that readily come to mind are the Franklin Cider Mill 7450 Franklin Road, Franklin MI (about 6 Miles from the Birmingham Bloomfield area); Yates Cider Mill 1990 E. Avon Road, Rochester (about 10 Miles from the Birmingham Bloomfield area); Paint Creek Cider Mill, 4480 Orion Road, Rochester ; and Parmenters Cider Mill, 714 Baseline Road, Northville. We will probably take a nice Sunday drive to the Cider Mill this weekend with our granddaughter, Kelley, and our two dachshunds, Penny Candy and Ziggy. We cherish these family times together and being able to enjoy the outdoors. We’re looking forward to the hot donuts, apple cider and fresh apples. Click here to see other Michigan Cider Mills. 

 Living in Michigan with its four seasons is wonderful.  If you or someone you know is thinking of making a move, please give us a call or visit our website for information on area listings in the greater Oakland County area.

1. More expensive mortgages
2. Higher fees
3. Higher interest rates
4. Larger down payments
5. Fewer lenders to choose from

“Buyers shouldn’t rush in – but there’s no reason in most markets to delay waiting for something better to come along – it probably won’t,” says Barry Zigas, director of housing policy at the Consumer Federation of America.

Ready to Move Up?

The environment in today’s market is a great time to be a buyer.

1. Interest rates are still at historical lows
2. The job market is improving
3. Affordability is near generational highs

For those with growing families and steady jobs now is the time to “move up”.

The future would include a housing-finance system that would create a partnership for both the public and private sectors. Some changes include:

1. The government’s role would be smaller
2. Underwriting standards would be tighter
3. Borrowers would be required to hold larger amounts of equity in their homes.

For a long time a 20% down mortgage was the gold standard and things went well.  Why is it necessary to increase this number to 30%?

The proposal offered some steps to help attract private capital into the mortgage market, including:

1. A reduction in the maximum loan sizes that Fannie and Freddie can purchase
2. Gradual increases in the fees the mortgage companies charge lenders.

Both of those steps are designed to force lenders and investors to buy loans without government backing, but they will also raise borrowing costs for millions of Americans and weigh on the nation’s home-building industry.

This figure represents completed transactions that are single family homes, townhomes, condominiums or co-ops. These existing-home sales increased to 2.7% to a seasonally adjusted annual rate of 5.36 million in January. This is the first time in seven months that sales activity was higher than a year earlier.

Lawrence Yun, NAR chief economist, said, “The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence. The extremely favorable housing affordability conditions are a big factor, but buyers have been constrained by unnecessarily tight credit. As a result, there are abnormally high levels of all-cash purchases, along with rising investor activity.” Yun believes that the improvement is good but could be better.

By the Numbers

Investors accounted for:
23% of purchases in January
20% in December
17% in January 2010

All-cash sales:
32% in January
29% in December
26% in January 2010.

“Increases in all-cash transactions, the investor market share and distressed home sales all go hand-in-hand. With tight credit standards, it’s not surprising to see so much activity where cash is king and investors are taking advantage of conditions to purchase undervalued homes,” Yun said.

The national median existing-home price for all housing types was $158,800 in January, down 3.7 percent from January 2010.

Distressed homes market share:
37% in January 2011
36% in December 2010
38% in January 2010

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said the median price is being dampened by unusual market factors. “Unprecedented levels of all-cash purchases, primarily of distressed homes sold at deep discounts, undoubtedly pulls the median price downward,” Phipps said. “Given the levels of inventory we see today, we believe that traditional homes in good condition have held their value.”

The national average commitment rate for a 30-year, conventional, fixed-rate mortgage:
4.76% in January 2011
4.71% in December 2010
5.03% in January 2010
(Source: Freddie Mac)

The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries

To that end, we urge homeowners to ask their Representative to support H.Res.25, a bipartisan resolution offered by Representative Gary Miller and five original bipartisan cosponsors. It affirms the importance of the mortgage interest deduction (MID). The resolution expresses the sense of Congress that the MID should not be cut back, but rather that current law should be retained. To restrict current law in any way would undermine progress in the still-fragile housing recovery.

The nation cannot emerge from its current economic distress unless and until the housing crisis has abated. Congress must do everything in its power to shore up consumer confidence in housing by reaffirming its support for the tax benefits that support housing. The worth and value of the MID must be preserved.

People buy homes to satisfy many social, family and personal goals. The tax system facilitates achievement of those goals. The tax system supports homeownership by making it more affordable. Nonetheless, over the past year, some pundits have questioned the role of homeownership in American culture. Some have even gone so far as to say that the nation should reduce its commitment to homeownership.

Those pundits are wrong. No single investment contributes more to family wealth and community stability than the purchase of a home. Similarly, nearly every State in the Union—and a majority of Congressional districts—has at least one community where second homes are the foundation of local economies. To change the tax benefits associated with any housing investments, particularly in today’s economy, would be devastating to communities across the Nation.

Please join Rep. Gary Miller and send a message to your Representatives in Congress that you support a strong and stable housing market and that you support the current MID rules.

The recession is an opportunity, often by fire, for REALTORS to sink or swim. With the many changes in the economy, regulations and lending – It is critical that you have a professional who is up on these changes and has a mastermind group of experts around them in all the specialized areas.

Several top sales professionals have reported their best year ever without the benefit of distressed property sales.

Are we working harder?
Absolutely, more than ever before.
Are we working smarter and tapping into every technological advantage?
For sure!

The difference between these real estate leaders and others seems to be:

a) an intense focus on the business basics
b) a focus on the marketplace and customers
c) an absolute unwillingness to accept anything but results.

These are the principles that the Whitehouse Team lives by.

Good things to remember as we move into a recovery year in 2011.

HOUSING TRENDS

The rising interest rates and first time home buyers are currently driving the housing market. Rising mortgage rates helped push homebuyers into the market place.

Builder confidence in the market for newly built, single-family homes remained flat in December.

Artists Boost Home Prices in Desolate Downtowns

Can low-income artists really revive dying downtown real estate?
The answer in three Detroit zip codes is “yes.”
Click here to read the report!

Tax Deduction for Mortgage Interest Could be on the Chopping Block

It’s been around since 1913, but its time may be up. The leaders in government believe such a change would generate billions of dollars in federal revenue that could be used to cut the deficit while inflicting little pain on most middle-class homeowners.  (How can you raise Billions and not inflict pain on the homeowner? – we are keeping close tabs on this!)

FORECLOSURES & SHORT SALES

Skitish lenders are denying some short sales, citing price concerns, many lenders are opting to foreclose rather than do a short sale. It is important to have a professional navigate those waters for you to make sure that this does not happen. We are there for you.

Senate Bill 77 provides for much needed Principal Residence status and tax relief to purchasers of bank-owned properties after the May 1st filing deadline. This legislation has become particularly important since foreclosures, which are non-principal residences, have flooded Michigan’s real estate market in recent years. The current situation prices buyers out of homes by forcing them to qualify for a mortgage at the higher tax rate. Those buyers looking to purchase foreclosed properties are consequently stuck with a significant tax burden for the remainder of the year despite making that new purchase their principal residence. This bill would alleviate that burden by allowing a buyer to immediately make a foreclosed property their principal residence.

The MAR Public Policy staff met with legislators on this bill until the very last hours of the 2010 session to express the importance of making this tax-friendly legislation a priority. We are pleased that legislators on both sides of the aisle supported the passage of this bill, which gives homebuyers significant tax relief when purchasing a foreclosed property.

Your Real Estate Professionals,
Kathie & Doug

Bank Fraud in Short Sales – There have been reports of banks demanding a kick-back from the short sale transaction.

And listen here to an actual Short Sale Supervisor talking to an agent about fraudulent kickbacks.

If you see this activity, please report it immediately to your state Attorney General.

We can also assit with your short sale transaction at Strategic Solutions and Settlements.

Jump in mortgage rates, but they are still low – Demand for mortgages fell and interest rates have risen this week as the Mortgage Bankers Association released the results of their weekly mortgage applications survey. There is still a lot of uncertainty about what impact the Fed’s QE2 (Quantitative Easing, Part 2) program will have on the financial markets. 30 year rates are up about a quarter point.

List price cut in 48% of homes - Almost half the houses on the market had a price reduction in October, according to ZipRealty. Detroit-Livonia-Warren was at 23%, Phoenix was the worst with a reduction in 56% of listings, and Denver was the best with a reduction in only 34%. One could wonder if this is an indication how realistic sellers and/or agents are about prices in these markets.

It doesn’t pay to remodel? - Good story by Les Christie at CNN about the possible return on investment from remodeling. There are a lot of real estate investors in the market who would disagree with these numbers! If you read through the data, you see it’s based on survey results, not actual concrete data. — CNN Story

Your real estate professionals,
Kathie & Doug

Sales of newly built, single-family homes rose 6.6 percent in September to a seasonally adjusted annual rate of 307,000 units, their best pace since June, according to data released by the U.S. Commerce Department today.

SEVERAL LARGE HOME BUILDERS DOING WELL

Seven large homebuilders (1000 or more closings) have sold more homes so far in 2010 than they did a year earlier. They are Villages of Lake Sumter, MI Homes, Highland Homes LTD, Perry Homes, Richmond American, NVR and DR Horton, according to Housing IntelligencePro.

HOMEOWNERS LOWER THEIR DEBT

In the third quarter of 2010, 33 percent of homeowners who refinanced their first-lien home mortgage lowered their principal balance by paying-in additional money at the closing table. This is the second highest “cash-in” share since Freddie Mac began keeping records on refinancing patterns in 1985.

NICE TO HEAR SOME GOOD NEWS

Two reasons homes in Birmingham Michigan fail to sell!

EXPOSURE & PRICE

Did anyone see your home on the internet and if they did see it was it positioned to make them want to move forward and visit the property in person? The price is critical but first they have to see the home when they are searching for what is available for sale. So lets discuss that first.

Start with the understanding that 85 – 90% of all buyers go to the internet to find what they are looking for today. Next to understand is that Google in the most popular of all the search engines when it comes to finding what you are looking to find. That being said you can see how important it is to be well located or positioned on Google if you want the vast majority of potential buyers to actually see your property. We did some research and found that buyer are using some very common Search terms when looking for homes in our area. Those terms are listed below and you can go to Google and insert the search terms or simply click on any search term below and you will be linked to the Google search results for that term.

On the results page you will see “Sponsored Links”. These are people paying by click to be listed on the top. It does not mean that they earned that position it only means they are willing to pay more than the next person in order to show up in  ”Sponsored Links”.  MOST viewer will bypass Sponsored Links and go the “Organic” listing links. These are the people that earned the position they hold. The most current analysis I’ve read indicates that the first position under organic links get over 40% of all the clicks. The second position get around 11%. If these number hold true you can clearly see the importance of great web site positioning when it comes to getting your home found on the internet.

When you click on any of these links notice that the same website comes up in the first few organic position every time. If you were looking to get a home sold in Birmingham, Michigan wouldn’t you think that having your home marketed on such a web site could be very important. With over four million homes on the internet it becomes critical that your homes gets FOUND and great website positioning is the answer.

PRICING IS ALSO CRITICAL……

Not all sellers understand that their asking price is the ultimate determination of whether they will sell their property or not. Not only does the asking price affect if you’ll sell, but when and for how much. The longer it takes you to get to the correct fair market value asking price, the greater your Days On Market are and the more of a negative stigma buyers will have of your property. This can translate into lower offers and ultimately, a lower selling price.

Sure, how well your agent markets the property matters. But even the best agent in the world can’t fool today’s buyer and a good buyer’s agent. Today’s buyer has access to way too much information and data to overpay for a property. And a good buyer’s agent will provide comps and their personal expertise to even the most uniformed buyer so that they don’t make a bad decision and overpay for a property.

It all boils down to finding the right Realtor who does two things:

Makes sure that your home is found by the buyers

Makes sure it’s a Win-Win deal

New single-family U.S. home sales fell by an unexpectedly steep 8.5 percent in March and the median sales prices compared to a year ago dropped by the largest amount since 1970, a government report released this week showed. The pace of sales slowed to an annual rate of 526,000 last month, the weakest rate since October 1991, the Commerce Department said.

This may sound bad but it truly is not what it appears. If you look at the fact that builders have been building fewer new homes for some time it should not come as a surprise that they are selling fewer. You can’t sell something that doesn’t exist!

Dan Green from The Mortgage Reports wrote a much more detailed article which is available on his website

REAL Trends, the nation’s leading source of trends and analysis on the residential real estate services industry, is launching a new report on the housing market, the REAL Trends Housing Market Report. This new report tracks actual housing sales from real estate brokerage firms from every state in the nation and compares current month activity with the same month one year earlier. The total sales base being tracked represents over 35 percent of all reported housing sales completed by brokerage firms and will be reported each month. 

Last night both of my children (both in their 30′s) were headed home for the holiday and I was sitting here writing this blog with my wife/partner sitting next to me on the couch. Reflecting on last night and the interesting day we have had today I can truly say it doesn’t get much better.

Today, we deep fried a turkey for the first time.  While this may sound simple, safely deep frying a turkey (i.e. not starting an oil fire or blowing up the garage) involved a 6′ ladder, 5 gallons of peanut oil, a homemade pulley system, 3 men and a dog (Kathie and my daughter happily watched from inside in front of the fireplace).  The clear key to success is careful planning and simple common sense and, I’m happy to report, we all enjoyed a wonderfully moist, flavorful turkey (and as my daughter exclaimed in shock, not at all greasy!).  

Even though Michigan has had a difficult economy this year and the TV chefs have grossly overestimated the time needed to deep fry a turkey, we have tons to say thanks for!

For the dinner I’ve just finished, for the family I’ve shared the meal with and for every soldier who has ever served our country and for those serving today I am truly thankful!

Bless each and every one of you and may you also enjoy a blessed Thanksgiving.

This FREE seminar will update homeowners on the most current information available to help protect their most valuable asset.

Attendees can register by calling the Birmingham Bloomfield Chamber at (248) 644-1700 or visiting www.bbccc.com.

One of the featured guests will be

Phil Seaver of Philip R. Seaver Title Company discussing:

Short sale procedures and tax implications

Foreclosure time frames – legalities and realities

Purchasing foreclosure homes – legalities and lack of warranties