Pending Home Sales Rise

The National Association of Realtors released pending home sales data from July this morning.  Pending sales increased 5.2 percent over the previous month.  Most analysts had predicted that pending sales would drop by just over 1 percent.  Lawrence Yun, the Chief Economic for NAR, cautioned that despite the good news, recovery will take time. "Home sales will remain soft in the months ahead, but improved affordability should help with a recovery...For those who bought at or near the peak several years ago, particularly in markets experiencing big bupbbles, it may take over a decade to fully recover lost equity."

Affordabilty is the combined impact of home priced and interest rates (currently below 4.5% on a 30-yr fixed).

Read the full NAR release here.

Here's an article from Forbes, discussing the news.

American Dream Report

Trulia.com and Harris Interactive recently released a report titled "The American Dream," that discussed consumer sentiment regarding homeownership.  Some highlights from the report:

• 19% of those surveyed have a more negative view of homeownership than they did 6 months ago, compared with 23% who have a more positive view


• In 1950, the average home was 983 square feet; in 2004, this increased to 2,349 square feet.  In the future, most builders say they plan on building smaller, less expensive homes.


• 72% of those surveyed stated that owning a home was part of their American dream

If you would like a copy of the full report, send me an e-mail at johnblom@hasson.com.

Is NAR Counter-productive?

A friend of mine (hat tip to Luke) e-mailed me this blog post and asked my opinion.  Basically, the blogger argued that the National Association of Realtors (NAR) consistenly optimistic take on the housing market is counter-productive, in that it makes it more difficult for realtors to get sellers to set a reasonable listing price for their home.  It's an interesting idea, so I thought I would put in my two-cents :

1. I don't think that NAR's statements have created an overly optimistic market.  Many of the sellers I have talked to recognize that we are still in a difficult market, and that it is going to take awhile to recover.  Sure, there are a few that believe their home is worth more than it probably is, but I think this has as much to do with the rapid increase in prices during the housing boom that conditioned people to think a certain way about home values.


2. As the other blogger states, NAR is an advocacy group for realtors, so it should not come as a surprise that they tend to emphasize positive news in the real estate market.  Consumers should consider where information is coming from when making such an important decision as buying/selling a home.

If you are considering buying or selling a home, I recommend looking at what NAR is saying about the market, but also looking at the Wall Street Journal or the NY Times, as well as the Columbian or Oregonian to get a couple different perspectives.  If you have specific questions, call me.  For some people, now is not the right time to make a move.  If I think you should wait a year or two (or five), I will tell you.  I would rather be honest with you and earn your trust (and hopefully your business whenever the time is right), then try and talk you into a bad decision.

National Existing Home Sales Reports - July

The national sales report came out this week...not great news, but pretty close to what was expected:

Bad News: Sales of existing homes dropped 27.2 percent to the lowest level in over a decade.  Inventory also increased.  Anyone who has money in the stock market saw the effects of this when the report was released.

Good News: Home prices continued to increase

The sharp decline of home sales in July was in large part to the expiring tax credit.  Many people who planned to buy a home this year purchased in the spring to tax advantage of the First Time Homebuyer/Move-up Buyer Tax Credit.  In the Vancouver area, annual sales for 2010 are still higher than 2009.  Overall, this year should still be a much better year than last.  However, the housing market will not truly begin to recover until unemployment numbers drop.

Open House -- Sat and Sun 1 to 4 PM

Classic home in the desirable Lakeview Estates Neighborhood. New island kitchen features beautiful craftsmanship and unparalleled style. Marble floors in the living and dining areas give a feeling of luxury. Master bedroom and a den on the main floor lets you do most of your living on the main. The loft upstairs would make a great library, work-out space, or second office. Two more bedrooms and a full bath upstairs are perfect for children or guests.

1919 NW 87th Circle

3 bedroom/2.5 bathrooms
2,716 square feet
$384,000

Call or text 360-977-8329 for more details

Home Sales Increased in April...

...but will likely decrease in May and June. From Bloomberg Business Week:

Link to full article

June 2 (Bloomberg) -- The number of contracts to buy previously owned homes climbed in April as Americans took advantage of the last month of a tax credit.

A plunge in mortgage applications signals sales will soften in subsequent months following the April 30 deadline to sign contracts and obtain as much as $8,000 in government assistance. Any sustained recovery in housing hinges on maintaining stability in financial markets and gains in employment in the wake of the European debt crisis.

Where Buyers Found Their Home

If you are thinking about selling your home, you want to advertise it where buyers are looking, right? According to the National Association of Realtors, 40% of buyers found the home they eventually purchased on the internet. The next most common source was the real estate agent. When you list your home with me, I put your home on two hundred different websites nationwide, including Realtor.com and Zillow.com, the two most popular real estate sites in the US.

Give me a call to find out more about the tools I use to market and sell your home as quickly as possible and for the best possible price.

John Blom
johnblom@johnlscott.com
(360) 977-8329