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9 North Adams Road Rockville, MD 20850 (240) 425-0008 www.michaelstitle.com September 2012 Volume 38 Number 9
Aprils figures showed the first monthly increase in the slow-moving S&P/CaseShiller house-price data after seven months of declines. In the latest reporting month, nearly 10 percent more existing homes were sold than a year earlier, many purchased by investors who plan to rent them for now and sell them later, an important sign of an inflection point. In something of a surprise, the inventory of existing homes for sale
has fallen close to the normal level of six months worth, despite all the foreclosed homes that lenders own. The fraction of homes that are vacant is at its lowest level since 2006. The reduced inventory of unsold homes
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September 2012 is key, says Mark Fleming, chief economist at CoreLogic, a housing data-analysis firm. For the past couple of years, house prices have risen in the spring and then slumped; the declining supply of houses for sale is reason to believe that wont happen again this year, he says. Builders began work on 26 percent more single-family homes in summer 2012 than the depressed levels of 2011. The stock of unsold newly built homes is back to 2005 levels. In each of the past four quarters, housing construction has added to economic growth. In the first quarter, it accounted for 0.4 percentage points of the meager 1.9 percent growth rate. Even with the overall economy slowing, Wells Fargo Securities economists said, cautiously, in a note to clients, the budding recovery in the housing market appears to be gradually gaining momentum. Housing is still far from healthy, despite the Federal Reserves efforts to resuscitate it by helping to push mortgage rates to extraordinary lows: in late summer, average rates for a 30-year fixed-rate mortgage were hovering around 3.5 percent. Singlefamily housing starts, though up, remain 60 percent below the 2002 pre-bubble pace. Americans equity in homes is $2 trillion, or 25 percent less than it was in 2002 and half what it was at the peak. Still, the upturn in housing is a milestone, a particularly welcome one amid a distressing dearth of jobs. For some time, housing has been one of the biggest causes of economic weakness. It has now barely moved to the plus side. A little tail wind is a lot better than a headwind, says economist Chip Case, the Case in Case-Shiller.
Volume 38 Number 9
TRENDS
Relocation Forecast Is Up
In yet another sign of global economic recovery, Cartus Corporation reports 57 percent of multinational companies expect to increase the number of employees they relocate this year and next. The survey polled 122 multinationals, asking whether they anticipated moving more workers. The survey found that 57 percent would increase the number of moves, 37 percent said the number would be about the same, and 6 percent anticipated a decrease. Our global trends survey uncovered two key issues behind the anticipated increase in corporate relocation activity: A need for companies to support their planned expansion into emerging markets; and a need to fill the void in available local talent in those markets, said Matt Spinolo, executive vice president of Cartus. Surprisingly, the survey found the top reason employees accept job transfers (cited by 90 percent) is career development over attractive compensation. Survey respondents ranked compensation a distant second on the list, at 35 percent.
September 2012 Half of those polled said they would cut back on dining out, 49 percent said they would cut back on shopping for non-essential items and 47 percent said they would give up luxuries in order to be financially able to purchase a home. A key obstacle to buying a first home, however, is the down payment and qualifying for a loan. The poll found that 45 percent of those responding said they did not believe they could qualify for a loan or have sufficient funds for a down payment. And a new poll by the Trulia real estate data company suggests consumers are perhaps overly optimistic about the trend toward higher home prices over the past several months, with 58 percent believing values will return to boom-year highs within the next 10 years. The company also said Americans are again looking for large homes to buy. It said 27 percent of those polled would like a home with more than 2,600 square feet and that 11 percent would like a home with more than 3,000 square feet.
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On its website, the EIA has an exhaustive table showing home energy use based on housing type, year of construction, size of homes, number of household members, family income and other factors.
MARKETS
September 2012 of foreign purchases. California was second with 11 percent, and Texas and Arizona accounted for 7 percent each. NAR said about 45 percent of purchases were for properties under $250,000.
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who are touring homes and the number actually making offers. It its first data release, the Real-Time Demand Pulse found the number of offers made by its clients in the past four weeks declined 3 percent compared to the previous four weeks, but the number of clients touring homes increased by two percent. Compared to last year, the number of offers was down eight percent and the number of tours down three percent. This report reflects data collected from client activity in 18 markets around the country. According to CEO Glenn Kelman, the Pulse can project sales volume without waiting 30 45 days for a sale to close, or an additional 15 30 days for it to be recorded as a public record.
INDUSTRY
September 2012
Volume 38 Number 9
MORTGAGES
they consume content. Whether it is Facebook, Twitter, LinkedIn or your own real estate blog, following a few basic best practices will keep old school habits from making their way into your online marketing efforts. 1 Stay Compliant. Always remember to stay in compliance with your states advertising laws, the Code of Ethics and Fair Housing Laws. Using the Internet to market your business also means you will need to keep your website up to date and in compliance. According to the NAR, 88 percent of home buyers searched for their new home online before enlisting the services of an agent. Ensure that you are easy to find and your credibility is supported by membership in local and national associations. 2 Define Your Audience. Who are you trying to reach? In real estate, one size does not fit all. Make sure you understand the needs of your audience and what drives their decisions. Take this knowledge and create a streamlined look and feel across your blog, website and social media channels. 3 Get to the Point. Keep your message short and sweet. Consumers are hungry for news, but are short on time. Give them what they need in short sound bites. What are the key takeaways you want to get across? Put those in bullet or list format so they are simple to scan and read on the go. 4 Be Unique. There are very few new topics in real estate today. What there is, though, is your unique perspective on existing topics. In order to set yourself apart, you must position yourself as an expert and thought leader. Determine what your niche is and then focus on establishing your personal brand as a specialist within that field. 5 Be Intriguing. What can you tell consumers that will keep them coming back for more? Whether it is market statistics,
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AGENTS CORNER
September 2012 personal observations or tips to navigate the purchase process, offering your visitors, followers and fans the information they need in a topical and engaging way will keep them coming back time and again! 6 Be Transparent. The word has been overused and overhyped, but transparency is still extremely vital when building your online reputation. It is imperative that consumers feel as though who you are online is consistent with whom they meet offline. 7 Monitor, monitor, monitor. There is a multitude of monitoring tools available to help you track and monitor the appearance of your name and company on a daily basis within a variety of media channels. By using these tools, you will be able to see what people are saying about you. Above all else, be very aware of what you are posting. Remember, in our busy online world, what happens in Vegas, now ends up on YouTube.
Volume 38 Number 9
ment and closing costs. Buyers also havent forgotten about moving and possible home repair costs in setting up a savings plan for a home purchase. Y Buyers have their credit in shape: Home buyers know their FICO score and know how it can impact the mortgage rate they get. Y Buyers know what they can afford: Home buyers are already pre-qualified for a mortgage so they know how much they can afford, what types of loans they can qualify for, and set a comfortable monthly mortgage payment goal. Y Buyers are not making other major purchases: Big-ticket purchases, like a car, should be put off until after they buy a home. Potential buyers ready to go know that its best to keep their cash reserves high to prove to lenders they can take on mortgage debt.
SmartsPro
MARKETING
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