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Keeping Current Matters

Wednesday, December 31, 2008

Realtors® Push for 4.5 Percent Interest Rate Buy-Down

federal mortgage interest buy-down program would help spark the housing market, the National Association of Realtors® said in a letter sent today to James B. Lockhart, chairman of the Oversight Board of the Federal Housing Finance Agency. NAR seeks a 4.5 percent mortgage interest rate buy-down program financed through the U.S. Treasury Department’s Troubled Asset Relief Program.

In the letter to FHFA, NAR shared three potential implementation procedures for a federal buy-down plan:

TARP would fund the payment of points at the individual level.
The Federal Home Loan Banks would raise funds by selling below-market-rate bonds to the Treasury Department for them to make the 4.5 percent interest rates available to lenders.
Fannie Mae and Freddie Mac would purchase mortgages at the 4.5 percent interest rate but pay lenders the market rate.
“The buy-down program would complement other initiatives and help stabilize, stimulate and revitalize the housing market,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “We must address the foreclosure crisis and increase housing demand. Lower interest rates and foreclosure mitigation are two sides of the same coin. Together they represent the key ingredients to stabilizing the housing market and preserving communities and homeownership.”

NAR has calculated that a 1 percentage-point decrease in mortgage rates would result in an additional 500,000 home sales.

In addition to suggesting that TARP assets be used to buy-down mortgage interest rates, NAR has recommended other principles that would help create long-term stability by ensuring that safe and affordable mortgages are available throughout the nation:

The higher loan limits passed in the economic stimulus bill earlier this year should be made permanent.
The federal government should ensure sufficient capital to support mortgage lending in every type of market.
The temporary $7,500 tax credit for first-time home buyers should be extended to all home buyers and the repayment requirement eliminated.
Source: National Association of REALTORS Press Release

www.NancyMAlexander.com

Home sales Decline Nationally in Economic Uncertainty

Existing-home sales weakened against a backdrop of an eroding economy, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – fell 8.6 percent to a seasonally adjusted annual rate¹ of 4.49 million units in November from a downwardly revised level of 4.91 million in October, and are 10.6 percent below the 5.02 million-unit pace in November 2007.

Lawrence Yun, NAR chief economist, expected a decline. “The quickly deteriorating conditions in the job market, stock market, and consumer confidence in October and November have knocked down home sales to another level. We hope the home sales impact from the stock market crash turns out to be short-lived, as was the case in 1987 and 2001,” he said.

“It is, therefore, imperative to provide incentives for homebuyers to get back into the market. It also depends on how effectively Congress and the new administration can help facilitate the short sales process and unclog the mortgage pipeline – impediments remain for some buyers with good credit,” Yun said.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.09 percent in November from 6.20 percent in October; the rate was 6.21 percent in November 2007. Last week, Freddie Mac reported the 30-year rate fell to 5.19 percent – the lowest on record since the series began in 1971.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said it’s crucial to enact sufficient housing stimulus to spark an economic recovery. “We need more than low interest rates to encourage enough buyers to enter the market and meaningfully draw down inventory, which would stabilize home prices – that, in turn, would help the economy to recover,” he said.

“We should extend the first-time buyer tax credit to all homebuyers and eliminate the repayment feature, and make permanent the higher loan limits that are vital in high-cost markets – the faster we do this, the faster housing and the economy can recover,” McMillan said.

McMillan said NAR is grateful that the Treasury, the Federal Housing Finance Agency and the Federal Reserve have been working to bring interest rates down on most mortgages to historic lows.

Total housing inventory at the end of November rose 0.1 percent to 4.20 million existing homes available for sale, which represents an 11.2-month supply² at the current sales pace, up from a 10.3-month supply in October.

Despite an overall softening in sales, there has been a solid trend of rising activity in California, Nevada, Arizona and Florida markets. “Sales are rising only in areas with large numbers of distressed properties as bargain hunters take advantage of discounted home prices,” Yun said.

The national median existing-home price³ for all housing types was $181,300 in November, down 13.2 percent from November 2007 when the median was $208,800. There remains a significant downward distortion in the current price from a large number of distress sales at discounted prices; the median is where half of the homes sold for more and half sold for less.

Yun cautioned that there will be negative consequences if housing stimulus is delayed. “Falling home prices would lead to faster contraction in consumer spending and further deterioration in bank balance sheets. More importantly, falling home values would lead to higher loan defaults, including those recently modified distressed mortgages.”

Single-family home sales fell 8.0 percent to a seasonally adjusted annual rate of 4.02 million in November from a level of 4.37 million in October, and are 8.8 percent below a 4.41 million-unit pace a year ago. The median existing single-family home price was $180,800 in November, down 12.8 percent from November 2007.

Existing condominium and co-op sales dropped 13.0 percent to a seasonally adjusted annual rate of 470,000 units in November from 540,000 in October, and are 23.1 percent below the 611,000-unit pace in November 2007. The median existing condo price4 was $185,400 in November, down 15.5 percent from a year ago.

Regionally, existing-home sales in the Northeast dropped 12.0 percent to an annual pace of 730,000 in November, and are 18.0 percent lower than a year ago. The median price in the Northeast was $257,700, down 0.1percent from November 2007.

Existing-home sales in the Midwest fell 7.4 percent in November to a pace of 1.00 million and are 16.0 percent below November 2007. The median price in the Midwest was $142,400, down 11.2 percent from a year ago.

In the South, existing-home sales dropped 10.9 percent to an annual pace of 1.64 million in November, and are 17.6 percent below a year ago. The median price in the South was $154,500, which is 10.6 percent lower than November 2007.

Existing-home sales in the West declined 4.3 percent to an annual rate of 1.12 million in November but are 17.9 percent higher than November 2007. The median price in the West was $242,500, down 25.5 percent from a year ago.

Source: National Association of REALTORS News Release

www.NancyMAlexander.com

Saturday, December 20, 2008

Avalon Sales Activity December 2008

Avalon Sales Activity December 2008

There are now 212 single family homes on the market in Avalon ranging in price from 549,000 for a 2 bedroom,one bath home at 667 22nd street,up to $12,900,000 for a Bayberry Drive home “The Marble House.”

There are currently four single family homes Under Contract in Avalon so far in December.
215 53rd street listed at $910,000
568 22nd street listed at $1,675,000
6600 Ocean Drive
2888 Ocean Drive


Four home have Sold and Settled so far in December
635 7th street listed at $1,190,000 SOLD 12/13/2008 for $1,120,000 after 304 days on the market.
594 24th street listed at $1,395,000 Sold 12/11/2008 for $1,200,000 after 213 days on the market.
56 W. 13th street listed at $1,390,000 and SOLD 12/19/2008 for $1,300,000 after 128 days on the market.
308 76th street listed at $1,995,000 and SOLD 12/4/2008 for $1,925,000 after 254 days on the market

The SOLD price analysis for 2008 shows 84% list to Sold price and average of 312 days on the market.


Are you considering a move? If you need a summer rental ,if you have a property that you would like to list,or if you are thinking of buying or selling a home, in Stone Harbor or Avalon,please visit the address for Luxury Real Estate at www.StoneHarborRealtor.com. I'd love to be your Realtor.
It would be my pleasure to help you with your Real Estate needs.Call me ...I Love To talk Real Estate!

www.NancyMAlexander.com
It would be my pleasure to help you with your Real Estate needs.Call me ...I Love To talk Real Estate!

www.NancyMAlexander.com

Stone Harbor Sales Statistics December 2008

Stone Harbor Sales Statistics December 2008

Right now there are 111 single family homes on the market ranging in price from $529,000 for a Weber Court home up to $5,995,000 for a beach front home at 100 115th street.
One home is Under Contract (356 89th street) listed at $990,000 and this has been on the market for 434 days.

Nothing has SOLD and settled in Stone Harbor to date in December.
In 2008 Stone Harbor listed to SOLD ratio was 84% with an average of 303 days on the market.


Are you considering a move? If you need a summer rental ,if you have a property that you would like to list,or if you are thinking of buying or selling a home, in Stone Harbor or Avalon,please visit the address for Luxury Real Estate at www.StoneHarborRealtor.com. I'd love to be your Realtor.
It would be my pleasure to help you with your Real Estate needs.Call me ...I Love To talk Real Estate!

www.NancyMAlexander.com
It would be my pleasure to help you with your Real Estate needs.Call me ...I Love To talk Real Estate!

www.NancyMAlexander.com

Tuesday, December 16, 2008

Stone Harbor & Avalon November 2008 Sale Activity

Stone Harbor Sales November 2008

There are now 108 single family homes on the market ranging in price from $529,000 for a one bedroom Weber Court house ,up to $5,995,000 for a 5 bedroom,4 bath beach front home at 115th street.

Four single family homes SOLD in November
35 Weber Court listed at $495,000 and SOLD for $447,000 after 395 days on the market.

10911 Sunset Drive listed at $1,775,000 and SOLD 12/21/08 for $1,600,000 after 86 days on the market.
8519 Third Avenue a bay front home listed at $2,300,000 and Sold for $1,750,000 after 207 days on the market.
119 90th street listed at $2,895,000 and SOLD for $2,675,000 after 732 days on the market.
There is one home now Under Contract at 356 89th street.

Compare Sales in Stone Harbor January 1 to November 10 2007 VS 2008

In 2007 there were 57 single family homes Sold to date with average list price of $2,151,380, and average SOLD price of $1,988,305

In 2008 to date there have been 43 single family homes SOLD in Stone Harbor with average list price of $2,246,288,and average SOLD price of $2,017,642

Avalon Sales November 2008-

There are now 21 single family homes on the sale market in Avalon.These range in price from $549,000 for a two bedroom home at 667 22nd street up to a whopping $12,00,000 for a four bedroom,five bath Bayberry Drive home on a 100x110 lot

There are now four single family homes Under Contract in Avalon
215 53rd street listed at $910,000
56 W.13th street listed at $1,390,000
568 22nd street listed at $1,695,000
6600 Ocean Drive listed at $1,989,000.

Four homes SOLD and went to settlement in Avalon in November.
1471 Ocean Drive listed at $699,000 and SOLD for $650,000 after 483 days on the market.
237 52nd street listed and SOLD for $985,000 after 57 days on the market.
138 21st street listed at $1,645,000 and Sold for $1,425,000 after 139 days on the market.
133 23rd street listed at $1,695,000 and SOLD for $1,600,000 after 642 days on the market.

Are you considering a move? If you need a summer rental ,if you have a property that you would like to list,or if you are thinking of buying or selling a home, in Stone Harbor or Avalon, please visit my website www.StoneHarborRealtor.com. I'd love to be your Realtor.
It would be my pleasure to help you with your Real Estate needs.Call me ...I Love To talk Real Estate! 800.708.5792

www.NancyMAlexander.com
It would be my pleasure to help you with your Real Estate needs.Call me ...I Love To talk Real Estate! 800.708.5792

www.NancyMAlexander.com