Home Sales Are Up Again

A month-over-month dip in home sales last month caused real estate watchers to ponder—gasp—a potential cooling of the market. But on Thursday the National Association of Realtors® reported that sales are up again.

Existing-home sales—completed sales of single-family homes, townhomes, condominiums, and co-ops—rose 4.7% from August to September, reaching 5.55 million. That’s the 12th consecutive month to see year-over-year growth, and the second-highest peak since February 2007, when sales totaled 5.79 million.

The median existing-home price for all housing types was $221,900 in September, 6.1% more than September 2014. This is the 43rd consecutive month that we’ve had year-over-year gains. Single-family home sales increased 5.3%, with a median price of $223,500, while condo and co-op sales remained unchanged, with a median existing-condo price of $209,200.

All-cash sales rose, too: They represented 24% of transactions in September, up from 22% in August. Short sales stayed on the market for an average of 135 days, but short sales and foreclosures are still down from a year ago—7% now and 10% then.

Why the reversal on sales in general? These are seasonally adjusted numbers, so they don’t reflect the typical fall slowdown. August sales, however, were affected by the stock market dips that shook buyers’ confidence.

Please, Mr. P

   “Sales are impacted by major stock market declines, since at least one in five buyers funds at least a portion of their purchase with stock or retirement funds,” said realtor.com® chief economist Jonathan Smoke. “But barring stock corrections that reflect real economic downturns—which we are not experiencing—homes sales typically return to the prior trend after stock values stabilize.”

But not all numbers were up: Inventory decreased 2.6% and is 3.1% lower than a year go. There’s a 4.8-month supply of unsold housing—in August, it was 5.1 months.

Maybe it’s counterintuitive—how can there be more sales when there’s less inventory?

It’s all that pent-up demand. Unfortunately for first-time buyers, all that competition has driven house prices up; you’re more likely to buy a home if you already have one.

“First-time buyers fell to 29% of sales in September after climbing to their highest share of the year in August (32%),” according to the NAR. “A year ago, first-time buyers represented 29% of all buyers.”

That’s the biggest surprise, Smoke said, but “despite that decline, we estimate from the monthly sales data this year that first-time buyers have been responsible for 45% of the growth in sales over last year.”

Whether the rise in existing-home sales continues depends on one thing: jobs. The 6% rise in prices is just about double the pace of wages. We need more, and better-paying, employment to keep sales up. That’s complicated by the fact that most future job growth is rooted in the relatively low-paying service sector. Sales may be up, but we’ll need inventory to rise with them.

Regional breakdown

Northeast: September existing-home sales rose 8.6% to an annual rate of 760,000, 11.8% above a year ago. The Northeastern median price was $256,500, 4% above September 2014.

Midwest: September existing-home sales rose 2.3% to an annual rate of 1.31 million, 12% above a year ago. The Midwestern median price was $174,400, 5.4% above September 2014.

South: September existing-home sales rose 3.8% to an annual rate of 2.21 million, 5.7% above a year ago. The Southern median price was $191,500, 6.2% above September 2014.

West: September existing-home sales rose 6.7% to an annual rate of 1.27 million, 9.5% above a year ago. The Western median price was $318,100, 8% above September 2014.

By
Lisa Davis  Realtor.com

This week in real estate

 

	Solid domestic consumer demand helped 3rd quarter GDP estimates to increase 1.5%. Strong economic news can lead to higher rates.

	As expected, the Fed did not raise policy rates at this month's FOMC meeting. However, the statement contained language making a hike in December possible.

	The four-week average for jobless claims is the lowest since 1973. A strong labor market helps strengthen the economy and could lead to higher rates.

	New home sales fell in September after two straight months of gains. However, the drop is seen as temporary, and demand for housing remains strong.

	In fact, the homeownership rate rose between July and September, the first rise after 7 quarterly declines. Buyers under 35 years old had the highest increase.

	First time homebuyers are depending less on gift funds for down payments. More young buyers are using personal savings for down payments and closing costs.

St. Louis Arch celebrates 50 years

The Gateway Arch in St. Louis is 630 feet tall - 63 stories - and tthe span between the legs is 630 feet wide at the base.

It is made out of concrete and steel.

Browse this timeline of benchmark moments that make up the inspiring story behind the tallest man-made national monument – the Gateway Arch.

1933 | Civic leader Luther Ely Smith conceived the idea for the memorial as a way to help revitalize the riverfront and stimulate the economy.

1934 | The Jefferson National Expansion Memorial Association [JNEMA] was chartered.

1935 | JNEM was created through a Presidential proclamation and became a unit of the National Park Service.

1947 | An architectural competition was held to decide the design of the memorial.

1948 | Architect Eero Saarinen’s design of a stainless steel Arch won the contest.

1958–1961 | Saarinen perfected his design.

1959 | On June 23, 1959, St. Louis celebrated with a groundbreaking for the memorial.

1961 | Excavations for the foundations began.

1962 | The Bi-State Development Agency was asked to finance the $2 million tram system that would take visitors to and from the top of the Arch. They did so by selling revenue bonds, which allowed trams to open in 1967.

1963 | Construction began on February 12, 1963.

1963 | Work was delayed due to a strike by hoisting and operating engineers. Later, construction on the south leg was delayed because of problems achieving the proper tension in the interior sections.

1965 | The final section was placed and the Arch was completed on October 28, 1965.

1966 | The Building and Construction Trades Council unanimously voted to stop work on the visitor center over issues of hiring contractors not affiliated with the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO). This controversy was initiated when an African-American plumbing company was hired in an effort to meet federal equal opportunity requirements. Later, a temporary injunction was filed that required union workers to return to work.

1967 | The Visitor Center opened to the public and visitors took their first ride on the north trams.

1976 | The Museum of Westward Expansion opened to the public.

1981 | Landscaping was completed.

1991 | The underground visitor center was augmented with a 70mm giant-screen theatre, as well as exhibits throughout the tram load zones.

1998 | The north and south tram load zones were extensively renovated to create additional space for museum displays. The three-story atrium was altered by the infill of the concrete flooring slab, removal of the concrete guard walls and installation of carpeting over the terrazzo flooring.

2001 | Permanent floodlights were installed to light the Arch exterior.

2003 | The Grand Staircase was completed.

2009 | CityArchRiver hosted a design competition for renovations to the Arch grounds.

2015 | St. Louis celebrates the 50th Anniversary of the completion of the Arch.

TRID - how does it affect your closing on your home?

Loan Estimate: 3 Days after application, 7+ Days before Closing
Lists estimated loan costs and terms. Saturdays do NOT count.

*If Required* Revised Loan Estimate: 1+ Days before Closing Disclosure, 4+ Days before Closing
Details any revised loan costs and terms if there is a significant change. Saturdays do NOT count.

Closing Disclosure: 3+ Days before Closing
Confirms final loan costs and terms. Saturdays DO count.

Examples of significant changes that could trigger a Revised Loan Estimate include (but are not limited to) setting the rate lock or making any change to the loan type or loan amount.

These disclosures and their required timing exist for your clients' protection. We assure you we will do what we can to get your clients to the closing table on time. If you have questions about the forms or the timetable, please ask. I am here to help.

 

David Sharp
MiMutual Mortgage
Loan Officer
NMLS# 280482
(314) 862-0123 x 4360
dsharp@mimutual.com

www.mimutual.info/dsharp

Buyers seeking multi family homes

According to several news articles, there is a dramatic spike in the real estate world, and

it’s not for the traditional. More and more potential homeowners and renters are seeking

out multi-family residences rather than single family. In fact, World Property Journal

reports the rise was 29.4% in multi-family properties and single family properties declined

by .9%.

Today’s generation has an affinity to seek living quarters in and around the city rather than

in a suburban neighborhood, and would much rather rent than buy according to the

reports of Christine Jordan Sexton at Realtor.org.

What are the benefits of renting the multi-family verses owning the single family?

Less worry over maintenance: yard work, appliance fixing, structural malfunctions are just

a few of the up sides to renting, that’s the land lords job to maintain and fix. Whereas with

owning your own property, the responsibility to fix things lands with you.

Living inside the city in a multi-family means less of a work commute and easy pedestrian

access to entertainment and take-out for the young who are not ready to settle down. It

also means easy access to hospital or emergency care.

However, there is no investment in renting as there is in owning. The hundreds of dollars

wasted every month in rent go into the pockets of the landlord, so when you decide to

move there’s nothing there for you. Owing your home means equity; a sold investment

even for a fluctuating market like real estate is always a better option.

To more information in this trend check out the full articles here at:

http://www.realtor.org/articles/the-rise-of-multifamily-housing-multiple-family-

residences-are-dominating-new-construction

http://www.worldpropertyjournal.com/real-estate-news/united-states/new-home-

construction-july-2015-housing-starts-us-department-of-housing-and-urban-

development-new-home-construction-nahb-david-crowe-9234.phpB

Getting your home ready for photos

According to the National Association of Realtors, well over 90% of home buyers look on the

internet for homes. So, setting the stage in photos and making sure they are of good quality is

an important point in selling your home.
Think of the photos you see in magazines like Better Homes and Gardens. The displays of

photos in these magazines have simple style with clear horizontal surfaces with just a few

decorative items placed sparsely. As you see that image in your mind, now look around your

home to find what needs to be done. Less “stuff” in the photos will make the rooms look bigger.

Clear all unnecessary objects from the kitchen countertops, especially bright colored items.

Don’t forget the paper towels, soap dispenser, hand towels. Clear family photos, children’s

drawings and magnets from the refrigerator, and stacks of “out of reach” items from the top.

In the bathrooms, clear objects such as cosmetics and soap dispensers. Tip: group daily

toiletries in Rubbermaid containers for each family member so you can move them to a closet.

This will also help with showings.

Remove personal photos, flowers and statues from walls, mantles and tabletops. Remove

small mirrors to minimize flash reflections. Keep rooms neat and organize toys, magazines, and

books. Remove any blankets off furniture.

Check all bulbs and replace any that are burned out because a burned out bulb will likely be

noticed in the photo. Also, with the new types of bulbs it is sometimes hard to gauge light output

so do not use mismatched bulbs and make sure they are not too bright. Research shows that

buyers feel that lighting adds “warmth” to the photographs.

If you are not able to be present at the photo session, turn on all lights or at least those that

have switches that might be hard to find and turn off all ceiling fans because they might be

blurred in the photos but leave the ceiling fan lights on.

Make sure that pet bedding, bowels and cages are out of the open areas. MLS rules prohibit

showing pets in the photos, so please cage or remove them from the premises on the day of the

photo session.

That first photo of the front exterior shot is perhaps the most important shot out of the whole

series of photos. It’s the primary photo that a buyer looking at their search results online may

use to decide whether to click or not to click to open and see the details of your home. So, take

a walk around the perimeter, remove any trash containers and other items like hoses. Also, tell

your agent when the sun hits the front of your home (morning or afternoon) so the pictures can

be taken with minimal shadows.

The photographer cannot take the responsibility for moving your personal items. It is up to you

to get your home ready. Remember that the photos will be displayed on the Internet on multiple

websites, so remove everything that you do not want the public to see.

Changes to HUD - what it means for closings

Currently, the HUD-1 Settlement Statement can be presented to the buyer on the day of closing and any changes to the statement can take place during the loan closing.  Gone are the days of making last minute changes to loans.

The new TILA-RESPA Integrated Disclosure (TRID) rule establishes new forms, which are replacing the standard disclosure forms known as the Good Faith Estimate, Truth in Lending and HUD-1.

These two forms will be joined by a new three day waiting period to close, whereby all contracts and forms must be filled out and correct three days before the close date. Should an amendment or change need to be made, a new three day period kicks in further pushing back the close date.

With these new documents and rules coming soon, we at least have two months to get use to the new system and adjust our current way of thinking for closing.