Single-Family Housing Starts Powers Ahead

May 17, 2012 RE/MAX of Greensboro No comments

Housing StartsThe new construction housing market continues to improve.

One day after the National Association of Homebuilders reported a 5-year high in homebuilder confidence, the U.S. Census Bureau reports that single-family housing starts rose 2 percent for the second straight month last month.

In April, on a seasonally-adjusted, annualized basis, the government reports 492,000 single-family housing starts. A “housing start” is a home on which ground has broken.

In addition, March’s single-family housing starts were revised higher. What was previously reported as a three percent loss was re-measured and changed to a 0.2% gain.

The April tally marks a six percent increase over the one-year moving average and, along with the March revision, suggests that the springtime housing market may have just been seasonal.

In March, a number of reports suggested a housing retreat :

Since then, though, low mortgage rates and affordable home prices appear to have sustained the new construction market, which now appears poised for a strong 2012.

As one mark of proof, active buyers of newly-built homes in Greensboro and nationwide are scheduling “model home” showings at the fastest pace since 2007. The burst of foot traffic high has builders upping their sales expectations for the next 6 months.

A scenario like this would normally lead new home prices higher, but the pressure for prices to rise may be offset by the amount of new home supply coming online.

In addition to a rise in Housing Starts, the Census Bureau also reports that, in April, the number of Building Permits for single-family homes rose 2 percent to move to its second-highest level since March 2010 — the month preceding the end of the 2010 federal Home buyer tax credit.

86 percent of homes break ground within one month of permit issuance.

It’s unclear whether housing is on a steady path higher, but there’s a growing body of evidence that suggests the market bottom has already passed.

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Homebuilder Confidence Moves To 5-Year High

May 16, 2012 RE/MAX of Greensboro No comments

NAHB HMI Homebuilder Confidence is on the rise once again.

After a brief dip in April, the National Association of Homebuilders reports that the Housing Market Index rose 5 points in May to 29. The increase marks the sharpest climb in homebuilder confidence on a month-to-month basis in 10 years, and raises the index to a 5-year high.

The Housing Market Index is scored from 1-100. Readings above 50 indicate favorable conditions in the single-family new home market overall. Readings below 50 indicate poor conditions.

The HMI has not been above 50 since April 2006.

The Housing Market Index itself is a composite reading as opposed to a straight-up homebuilder survey. The published HMI figure is a compilation of the results of three specific questionnaires sent to NAHB members monthly.

The survey questions are basic :

  1. How are market conditions for the sale of new homes today?
  2. How are market conditions for the sale of new homes in 6 months?
  3. How is prospective buyer foot traffic?

This month, builders are reporting strong improvement across all three surveyed areas. Current home sales are up 5 points; sales expectations for the next six months are up 3 points; and buyer foot traffic is up 5 points to its highest point since 2007.

With mortgage rates low and home prices suppressed, the market for new homes is gaining momentum, a conclusion supported by the New Home Sales report which shows rising sales volume and a shrinking new home inventory nationwide.

The basics of supply-and-demand portend higher new home prices later this year — a potentially bad development for buyers of new homes in North Carolina and nationwide. With demand for new homes rising, builders may be less likely to make sale price concessions or to offer “upgrade packages” to buyers of new homes.

If you’re shopping for new construction in or around Greensboro , therefore, consider moving up your time frame. Home affordability is high today. It may not be tomorrow.

Housing Analysis , ,

RE/MAX Agents Outsell the Competition

May 15, 2012 RE/MAX of Greensboro No comments

RE/MAX Agents Outsell the CompetitionRE/MAX agents continue to be the most productive real estate professionals – by a wide margin.

In the annual REAL Trends 500 study – an independent ranking of the Top 500 U.S. brokerages – RE/MAX Sales Associates averaged 15.1 transaction sides last year. That figure was twice as high as the collective average of all agents in the study who are not affiliated with RE/MAX (7 transaction sides).

It was also twice as high as the averages posted by national competitors such as Coldwell Banker (7.2), Century 21 (6.9) and Keller Williams (6.9).

In fact, when the 500 brokerages were ranked by per-agent transaction sides – the most meaningful measure of productivity – RE/MAX claimed the top 18 spots and a dominant 44 of the Top 50.

Overall, 116 RE/MAX brokerages made the rankings; no competitor had more. And RE/MAX also led all national franchises in total sales volume per agent with $3 million, 60 percent more than the average of all other agents in the survey.

The survey results were yet another reminder that RE/MAX Sales Associates outsell the competition year after year.

“Since 1997 it’s been true that nobody sells more real estate than RE/MAX. Some may brag about their numbers, but quality and performance are what consumers look for,” says RE/MAX CEO Margaret Kelly. “RE/MAX agents are performing well at a critical time when housing is starting to improve, making them the best choice to help homebuyers and sellers in today’s market.”

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Home Affordability Getting A Springtime Boost From Greece

May 15, 2012 RE/MAX of Greensboro No comments

Greece affects U.S. mortgage ratesHome affordability is receiving a boost from across the Atlantic Ocean this spring.

For the third time in as many years, a weakening Eurozone is pushing May mortgage rates to new lows throughout North Carolina and nationwide.

The story centers in Greece and begins in 2010.

2 years ago, it was uncovered that successive Greece governments had purposefully misreported the nation-state’s economic statistics in order to meet European Union standards. The fraudulent data had permitted Greek governments to spend beyond their means while hiding deficits from EU auditors.

The realization that Greece was heavy in debt with little means to repay its creditors resulted in a massive bailout from the IMF and the rest of the Eurozone nations. The terms for Greece said that, in order to receive its €110 billion aid package, Greece would be required to enact strict spending controls.

This is known as “austerity” and the deal was met with outrage by the Greek public. There’s been general social unrest ever since and, on May 6 of this year, Greece held a special “early election” to elect all 300 members to its legislature.

No party won majority in the elections.

7 different groups garnered seats in the parliament last week with anti-austerity groups faring well. It’s spurred concern that Greece will end its bid for fiscal restraint, and that Greece may choose to leave the 17-nation Eurozone.

The uncertainty surrounding Greece is helping U.S. mortgage rates to make new lows. As concerns mount for the future of Greece — and the Eurozone, in general — global investors seek safer markets for their money.

The U.S. mortgage-backed bond market is one such market.

With the implied backing of the U.S. government, mortgage-backed bonds are viewed as nearly risk-less and investors clamor for safety of principal during uncertain times. The boost in demand drives bond prices up and bond yields down, resulting in lower mortgage rates for home buyers and refinancing households of Greensboro.

So long as Greece struggles to form its government and flirts with a sovereign debt default, mortgage rates should continue to face downward pressure. U.S. rates may not fall week after week, but analysts expect any rise in rates to be muted.

Mortgage Rates , ,

How To Seal A Granite Countertop

May 14, 2012 RE/MAX of Greensboro No comments

Seal granite countertopsAmong Greensboro homeowners, granite countertops remain a popular kitchen and bathroom finishing choice. Granite boasts a combination of natural beauty and durability that’s unmatched among most commercial options.

But different from many other countertops choices, granite is a natural material; mined from the Earth. It is porous and highly absorbent.

To protect the granite in your home, therefore, and to ensure its quality over time, you’ll want to seal your countertops at least once annually. A proper granite sealing will prevent stains and damage that can ruin your countertops’ appearances.

Sealing your granite countertops is a simple job, but one that requires a little bit elbow grease.

First, you should make sure your granite is actually ready to be re-sealed. To do this, soak a white cotton cloth in water and leave it on the corner of your countertop for a 10 minutes.  Lift the towel and check whether the area under the towel is discolored, or dark. This will indicate that your granite is absorbing liquid and needs sealing.

If the area is not disclored, your granite is already sufficiently sealed.

If your countertops do need to be sealed, here’s how to do it :

  1. With a spray cleaner, wipe down the entire surface and allow to dry
  2. Using a clean white rag, apply granite sealer to the surface uniformly
  3. Allow 30 minutes for the granite to absorb the sealer, or longer
  4. When dry, re-apply a second coat of sealer

Depending on the thickness and quality of your home’s granite, it may need to dry overnight so allow yourself the proper time to finish the job.

Once sealed, use preventative maintenance to keep your granite countertops looking great. Place coasters under beverages, hot plates under dishes and clean up spills immediately.

A well-cared for granite countertop will last for years.

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