June 2007

Keeping You Current
Helping our clients understand this crazy market

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4/2007

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Somewhat confusing data?
April –

New home sales up 16% Existing home sales down 2.6%
Remember: New home sales are reported on signing of the contract. Existing sales are reported at closing. New home sales are less than 15% of the total housing market and are not adjusted for cancellations.

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4/25/2007

House Prices Slide as Property Glut Grows; Buyers Gain Bargaining Power In Busy Spring Selling Season “Tighter credit and a growing glut of properties are depressing an already weak U.S. housing market, wrecking the industry's hopes for an early rebound. That leaves buyers in a strong position to negotiate for bargains during the spring home-shopping season, the busiest time of the year for housing sales.”

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A Closer Look Regionally Here's what happened across the region with home sales:

5/15/2007

Northeast: existing-home sales rose 1.2 percent to an annual pace of 1.13 million units in the first quarter from the same period a year ago. The biggest gain in the region was in New Jersey, where sales rose 7.6 percent from the fourth quarter of 2006, followed by New York state, up 7.4 percent, and Massachusetts with a 3.9 percent increase. The median Northeastern resale single-family home price was $268,900 in the first quarter, down 2.5 percent from the first quarter of 2006.

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A Closer Look Regionally Here's what happened across the region with home sales:

5/15/2007

Midwest: total existing-home sales fell 6.1 percent to a 1.49 millionunit annual level in the first quarter compared with a year earlier. The largest sales increase in the region was in Iowa, where sales rose 8.2 percent from the fourth quarter of 2006, followed by North Dakota, which rose 4.7 percent from a year ago, and Indiana, up 2.9 percent. The median existing single-family home price in the Midwest was $154,600, down 2.8 percent from the first quarter of 2006.

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A Closer Look Regionally Here's what happened across the region with home sales:

5/15/2007

South: total existing-home sales were at an annual rate of 2.51 million units in the first quarter, down 7.3 percent from the first quarter of 2006. After the District of Columbia, the next strongest increase in the South was in Arkansas, up 8.8 percent from a year ago, followed by Kentucky, which rose 3.9 percent, and Texas, up 2.7 percent. The median existing single-family home price in the South was $177,800 in the first quarter, which is 0.6 percent below a year earlier.

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A Closer Look Regionally Here's what happened across the region with home sales:

5/15/2007

West: the existing-home sales pace of 1.28 million units fell 11.9 percent from the first quarter of 2006. After Wyoming, the best performance in the region was in Colorado where sales rose 0.8 percent from a year earlier. The median existing single-family home price in the West was $336,200 in the first quarter, down 1.8 percent from a year ago.

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4/23/2007

Foreclosure continues to be a serious concern for many U.S. home owners.
Indeed, according to a recent survey from Yahoo Real Estate and Harris Interactive, 22 percent of home owners are at least somewhat concerned about the possibility of foreclosure due to their inability to meet monthly mortgage payments.

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More than 430,000 U.S. foreclosure filings were reported in the first three months of 2007. 4/23/2007 RealtyTrac estimates that more than half of the first-quarter foreclosure activity was from subprime loans. However, it’s not just low-end homes that are affected, said James J. Saccacio, CEO. “We’re seeing a rising percentage of foreclosures with an estimated market value of more than $750,000.”

Fo

losed rec

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States with the most foreclosures
State

5/1/2007

1. California 2. Florida 3. Texas 4. Michigan 5. Ohio 6. Georgia 7. Illinois 8. Colorado 9. New Jersey 10. New York
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5/15/2007

The Center for Responsible Lending estimates that 2.2 million American households have lost or will lose their homes as monthly payments rise on high-risk mortgages in the next few years.

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Housing Still a Drag on Economy Through 2007
5/21/2007

A survey of 48 economists conducted by the National Association for Business Economics also concluded that housing market troubles will last through the end of the year.

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Stocks vs. real estate
4/20/2007
A new study by Jack Clark Francis, a finance and economics professor at Baruch College in New York City, and Yale's Roger G. Ibbotson compared the annual returns of real estate from 1978 to 2004 compared with those of stocks. The results?

Investment

Return

Housing Commercial Property The S&P

8.6% 9.5% 13.4%

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5/2007

http://www.realtor.org/research.nsf/pa ges/presentations_use
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5/15/2007

The supply of houses and condominiums available for sale continues to grow quickly in much of the U.S., reflecting weak sales. The number of homes listed for sale at the end of April was up seven percent from March, according to data compiled by ZipRealty Inc.

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The increase was above the seasonal norm. Over the past 22 years, home inventories nationwide have increased an 5/15/2007 average of 4.5 percent in April from March, according to Credit Suisse Group. Spring is the busiest time of year for home shopping, as families with children try to get settled ahead of the next school year.

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Most Overpriced Markets
5/1/2007 San Diego Miami Sacramento, Calif. San Francisco Washington, D.C. Honolulu New Jersey Los Angeles Boston San Jose, Calif.

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5/8/2007

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4/25/2007

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May 2007

Falling... Nassau/Suffolk, New York

12-month forecast: - 6% Median home price: $483,000 Five year price change: 76.3% Worst one-year decline: 6.6% Year of worst decline: '88-'89

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Area

Average SP

% Depreciation

Fort Lauderdale Phoenix Nassau/Suffolk Miami Las Vegas

$325,000 $271,000 $483,000 $335,000 $325,000

-5.5% -5.5% -6.0% -8.8% -8.8%

http://money.cnn.com/ 2007/04/09/real_estate/ forecast.moneymag/index.htm
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How do we differentiate ourselves?

“The agent who knows all the numbers, and can explain them, will be seen as the professional.”
I hope July will bring better news ! Happy 4th , Madeleine

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