How unemployment has affected us in the USA

Take a look at this graphical chart and see how dramatic the change in unemployment had been in the last two years. Click here to view the chart!

Pending sales remain strong for Collin County property. The Dallas suburbs of Collin County Texas remain strong when compared to both the national numbers an other local Dallas Metroplex numbers. Richardson continues to lead the pack with a 31% pending ratio. This represents a 6% increase over the same month last yea. Plano had a 7% increase while Allen showed a whopping 11% increase. McKinney weighed in at a 9% increase and Frisco came in at 8%. These numbers show the general recovery of the local real estate market in the far north Dallas Metroplex. While some of the increase can be attributed to the first time homebuyer tax credits the market in general is in a recovery mode. Chart Key P.S. = pending sales N.L. = new listings List = total listings M.I. = months of inventory P.R. = Pending Ratio (pending sales/Listings) %ch = percentage change vs last year P.S. %ch N.L. %ch List %ch M.I. %ch P.R

Plano	193	29%	361	6%	999	-18%	4.3	6%	19.32%
Richardson	73	26%	122	12%	230	-31%	2.9	-23%	31.74%
Allen	85	29%	126	-2%	336	-28%	3.6	-14%	25.30%
McKinney	142	34%	246	0%	739	-31%	4.7	-24%	19.22%
Frisco	203	34%	320	-5%	1093	-26%	4.7	-22%	18.57%

Third Quarter Home Sales Surge

I just saw this article on Rismedia. It is very interesting.

^[1]RISMEDIA, November 16, 2009—Most states continued to experience rising existing-home sales in the third quarter 2009, with prices moderating in many metro areas, according to the latest survey by the National Association of Realtors®. Total state existing-home sales, including single-family and condo, increased 11.4% to a seasonally adjusted annual rate of 5.30 million units in the third quarter from 4.76 million units in the second quarter, and are now 5.9% above the 5.01 million-unit pace in the third quarter of 2008. Sales increased from the second quarter in 45 states and the District of Columbia; 28 states and D.C. saw double-digit gains. Year-over-year sales were higher in 32 states and D.C.

Lawrence Yun, NAR chief economist, said the tax credit is a significant factor. “We can’t underestimate just how powerful a catalyst the first-time home buyer tax credit has been for the housing sector,” he said. “It’s given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions. The buying conditions this year are the most favorable on record dating back to 1970, but the tax credit is allowing buyers to set aside any reservations about waiting for a better deal.”

During the third quarter, 123 out of 153 metropolitan statistical areas reported lower median existing single-family home prices in comparison with the third quarter of 2008, while 30 areas had price gains.

The national median existing single-family price was $177,900, which is 11.2% below the third quarter of 2008; the median is where half sold for more and half sold for less. Distressed sales- foreclosures and short sales- accounted for 30% of transactions in the third quarter, which continued to weigh down median home prices because they sell at a discount relative to traditional homes.

“The decline in the national median price has moderated recently, and a shrinking supply of unsold inventory suggests we are getting closer to price stabilization in many areas, but we need a steady stream of financially qualified buyers to further reduce inventory and get us to a self-sustaining market,” Yun said. “Foreclosures will continue to come on the market, but rising sales from the expanded tax credit should stabilize home prices by next spring and help to stem future foreclosures.”

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage rose to 5.16% in the third quarter from a record low 5.03% in the second quarter, but was dramatically lower than the 6.32% average rate in the third quarter of 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said he is encouraged by recent actions in Congress. “Extending and expanding the tax credit to more buyers through the middle of next year is the right medicine,” he said. “Congress understands the impact of housing on the economy, so consumers who aren’t able to complete a transaction before the end of this month now have a second chance but must have a contract in place by April 30, 2010.”

The biggest sales gain between the second and third quarters was in North Dakota, up 42.3%; followed by Rhode Island which rose 26.5%; and Pennsylvania, up 25.6%. The largest single-family home price increase in the third quarter was in the Cumberland area of Maryland and West Virginia at $122,100, up 19.2% from the third quarter of 2008. Next was the Davenport-Moline-Rock Island area of Iowa and Illinois, where the median price increased 14.3% to $115,600, followed by Oklahoma City, at $144,100, up 9.1% from a year ago.

“The wide range of market performance and reversals around the country, ranging from double-digit gains to double-digit losses in both sales and prices, underscores just how local real estate truly is,” Yun said. “The wide changes and mix of numbers also indicates a market in transition, hopefully to one that is becoming more balanced and stable.”

Median third-quarter metro area single-family home prices ranged from a very affordable $61,400 in the Saginaw-Saginaw Township North area of Michigan to $566,000 in the San Jose-Sunnyvale-Santa Clara area of California. The second most expensive area in the third quarter was San Francisco-Oakland-Fremont at $538,100; followed by the Anaheim-Santa Ana-Irvine area of California at $498,800.

Other affordable markets include the Youngstown-Warren-Boardman area of Ohio and Pennsylvania at $70,700, and Lansing-East Lansing, Mich., at $86,600.

In the condo sector, metro area condominium and cooperative prices- covering changes in 55 metro areas- showed the national median existing-condo price was $178,000 in the third quarter, down 15.4% from the third quarter of 2008. Four metros showed annual increases in the median condo price and 51 areas had declines.

The metros experiencing condo price gains were San Diego-Carlsbad-San Marcos, at $215,100, up 13.3%; followed by the Cincinnati-Middletown area, up 2.0% to $119,700; the Toledo, Ohio, area, where the median price of $130,400 rose 1.7% from the third quarter of 2008; and the Indianapolis area at $114,400, up 0.8%.

Metro area median existing-condo prices in the third quarter ranged from $67,600 in Las Vegas-Paradise, Nev., to $432,800 in San Francisco-Oakland-Fremont. The second most expensive reported condo market was New York-Wayne-White Plains at $297,500, followed by Boston-Cambridge-Quincy at $293,700. Other affordable condo markets include Reno-Sparks, Nev., at $81,300 in the third quarter, and Jacksonville, Fla., at $91,600.

Northeast

Regionally, existing-home sales in the Northeast surged 16.7% in the third quarter to a pace of 930,000 units and are 6.9% higher than a year ago. The median existing single-family home price in the Northeast declined 9.4% to $244,500 in the third quarter from the same quarter in 2008. The best price gain in the region was in Buffalo-Niagara Falls, N.Y., where the median price of $119,700 rose 4.8% from the third quarter of 2008; followed by Manchester-Nashua, N.H., at $237,600, up 2.6%; and the Pittsburgh area, where the median price rose 1.5 percent to $124,600.

Midwest

In the Midwest, existing-home sales jumped 13.2% in the third quarter to a pace of 1.20 million and are 5.2% above a year ago. The median existing single-family home price in the Midwest was down 5.5% to $150,200 in the third quarter from the same period in 2008. After Davenport-Moline-Rock Island, the next strongest metro price increase in the region was in Cedar Rapids, Iowa, where the median price of $145,700 was 7.6% higher than a year ago; followed by Bismarck, N.D., at $157,200, up 7.5%; and Ft. Wayne, Ind., where the median price rose 6.9 percent to $102,500.

South

In the South, existing-home sales rose 11.3% in the third quarter to an annual rate of 1.97 million and are 5.9% higher than the third quarter of 2008. The median existing single-family home price in the South was $160,000 in the third quarter, down 7.9% from a year earlier. After Cumberland and Oklahoma City, the next strongest price increase in the region was in Shreveport-Bossier City, La., at $152,300, up 8.6% from the third quarter of 2008; Jackson, Miss., at $141,200, up 4.6%; and Durham, N.C., where the median price rose 3.6% to $184,300.

West

Existing-home sales in the West increased 5.6% in the third quarter to an annual rate of 1.19 million and are 4.6% above a year ago. The median existing single-family home price in the West was $224,000 in the third quarter, which is 16.4% below the third quarter of 2008. The best metro price performance in the West was in Yakima, Wash., where the median price of $158,400 rose 2.7% from a year earlier; the Denver-Aurora area at $229,100, up 1.8%; and the Kennewick-Richland-Pasco area of Washington, where the median price rose 0.7% to $172,200.

For more information, visit www.realtor.org ^[2].

A Compromise Has Been Reached on Home Buyer Credit!

This just came in from Rismedia. This should help. RISMEDIA, October 29, 2009—(MCT/The Wall Street Journal)-The Senate has reached a compromise on extending and expanding the $8,000 tax credit for first-time home buyers, a boost the housing industry believes will help it pull out of its two-year-old downturn. While its passage remains uncertain, the agreement would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all homebuyers who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000, housing-industry sources said. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House. Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan are in full support of the Senate’s proposal to both extend and expand the first-time homebuyer tax credit and called on Congress to approve key housing measures that include the tax credit. "We welcome efforts taken by Congress to extend the First-Time Homebuyer Tax Credit for a limited period. This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide," said Secretaries Geithner and Donovan. "In extending the credit, we urge Congress to include strict measures to combat tax fraud and protect responsible homeowners.”

First Time Homebuyer Credits Will Likely Be Extended

It certainly appears that the government credits for first time homebuyers will be extended. The real question at this time seems to be in what form the credit will appear and for how long will they be extended. The following article comes from Dow Jones and came out yesterday evening. It seems this type of compromise is the most likely. By Jessica Holzer, Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- U.S. senators are nearing a deal on a measure to extend the first-time home buyer tax credit through next April and expand it to some buyers who already own a home. Under the deal, certain "step up" buyers who have lived in their current home for at least five years would also qualify for the tax credit, according to lobbyists close to the negotiations. The deal comes amid heavy housing industry pressure to extend the tax credit, which is set to expire Dec. 1 unless Congress acts. The measure, which proponents hope to offer as an amendment to legislation extending jobless benefits, could receive a Senate vote this week. Under the measure, the credit would run through April 30 of next year, though sales contracts in force by that date would be eligible as long as the deal closes within 60 days. The credit would amount to 10% of the sales price, with a maximum of $7,290. The current credit has a cap of $8,000. To qualify, first-time home buyers must make no more than $75,000 a year or $ 150,000 for couples. For step up borrowers, the income caps are $125,000 for individuals and $250,000 for couples. The measure aims to strike a middle ground between two Senate proposals. Sens. Christopher Dodd (D., Conn.) and Johnny Isakson (R., Ga.) had sought to extend the tax credit through June 30 of next year and open it to all home buyers. Meanwhile, Senate Majority Leader Harry Reid (D., Nev.) and Sen. Max Baucus ( D., Mont.) were pushing a four-month extension that would have gradually phased out over next year. It would have applied only to first-timers.

Collin County Real Estate continues to strengthen

August housing numbers for the Dallas suburbs in Collin County continue to show improvement over last year. Allen, Plano and Richardson pending numbers are all well into the 20's with Richardson topping the local charts at a whopping 38%. McKinney and Frisco lag slightly behind at about 17-18 but this can partially be explained by the number of new starts by builders. The pending ratios are an indication of business that will close in the near future. The numbers for all of the communities matched or beat the best pending numbers of the last 13 months. Recent newspaper articles point to the fact that sales are down across Collin County for the year. That much is true. The issue that I have with their findings is that they are not looking at the trends. My expectation is that by the end of 2009 we will see numbers that are comparable or exceed those of 2008 in terms of unit sales. Part of this will be fueled by the first time home-buyer tax credit. A good deal of credit will end up going to the collapse of the financial markets in late 2008. I will be absolutely amazed if we do not sell substantially more homes in the 4th quarter of 2009 than we did in 2008. The other key data that the folks at the Morning News are not looking at is the months of inventory. These numbers have been cut substantially and on the average are a half to full month lower than last year. This indicates a significant change in not only new home inventory but in re-sells as well. I certainly do not want to seem to bullish on the local housing market but we are seeing some positive signs in spite of the fact that consumers are not driving this market. This market is set up to move up quickly once that consumer engine heats up.

Housing in Plano and other suburbs rebounds

Sales of existing homes in July were down 14% from a year ago. That sounds like a negative number. Actually we are seeing that sales have stabilized and we expect that the sales for the rest of the year will actually be strong when compared to same months sales for 2008. Sales were up month over month in Frisco and McKinney. We look for an increase in sales for the remainder of the year based on two factors. 1) The first time home buyer credit will keep sales brisk into October. 2) Does anyone remember the stock market collapse of last fall. We experienced a severe drop in sales in November and December due to the stock market debacle. I believe we will see stronger month over month sales the remainder of this year. We also have a better job economy in Collin County than in other parts of the country. Collin county unemployment stands at about 7.6% compared to the 9.6 national average. Texas also was one of the top five states for decrease in first time claims for unemployment as reported yesterday. Things are looking better.