Contracts to Buy U.S. Homes Near 19-Month High: Economy

January 26, 2012, 12:51 AM EST

By Alex Kowalski

(Updates with Federal Reserve decision in fifth and sixth paragraphs.)

Jan. 25 (Bloomberg) — The number of Americans signing contracts to buy previously owned homes in December held near a 19-month high, showing the stabilization in the market that began in late 2011 will extend into the new year.

The index of pending home sales decreased 3.5 percent last month after jumping a combined 18 percent in October and November, figures from the National Association of Realtors showed today in Washington. It was the best back-to-back reading since a buyer tax credit boosted demand in early 2010.

“We’ve had a clear turn toward positive momentum in the housing market,” Aaron Smith, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, and the third most accurate forecaster of pending home sales. “Lower unemployment and higher confidence, coupled with record low mortgage rates, are coalescing to spur increased buying.”

The ability of the market to sustain gains in the absence of government incentives may mean housing has stopped weighing on growth. President Barack Obama yesterday proposed a plan aimed at reducing monthly mortgage payments, which would help combat a drop in home prices that Federal Reserve policy makers say is impeding the world’s largest economy.

Central bankers said today that they’ll keep their benchmark interest rate low until at least late 2014 to help stoke the economy.

Fed Statement

“While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated,” the Fed said in its statement. “Household spending has continued to advance, but growth in business fixed investment has slowed, and the housing sector remains depressed.”

The decrease in pending sales exceeded the median forecast of 40 economists surveyed by Bloomberg News that projected a 1 percent decline. Estimates ranged from a drop of 8.1 percent to an increase of 7 percent.

Sales increased 4.4 percent from December 2010.

Stocks declined as forecasts at Boeing Co. and Yahoo! Inc. trailed expectations. The Standard & Poor’s 500 Index fell 0.1 percent to 1,313.4 at 11:35 a.m. in New York. The S&P Supercomposite Homebuilding Index rose 1 percent.

Elsewhere today, the U.K. economy shrank 0.2 percent in the fourth quarter as factories reduced production and services stagnated, leaving Britain on the brink of another recession, data from the Office for National Statistics showed in London.

Japan Deficit

In Asia, Japan posted its first annual trade gap since 1980 as nuclear plant shutdowns following last year’s earthquake prompted companies to import energy. A third straight monthly deficit in December capped an annual shortfall of 2.49 trillion yen ($32 billion), the finance ministry in Tokyo said.

Another report today showed U.S. home prices rose 1 percent in November from the prior month, the biggest increase in six years, according to the Federal Housing Finance Agency. Nonetheless, values were down 1.8 percent over the past 12 months as foreclosures held back a recovery.

Among other recent housing figures, purchases of previously owned homes climbed 5 percent in December to a 4.61 million annual rate, the highest level since January 2011, the NAR reported last week.

Also in December, builders broke ground on 470,000 single- family houses at an annual rate, the most since April 2010, according to figures from the Commerce Department.

Economy Improving

“The economy is beginning to firm up,” Douglas Yearley Jr., chief executive officer of Toll Brothers Inc., said in a Jan. 11 interview with Bloomberg Television. “We see more people coming out to buy. The affordability has never been better.”

Three of four regions of the U.S. showed a decrease in contract signings from a month earlier, led by an 11 percent slump in the West. Pending sales also fell in the Northeast and South.

The report showed an index level for pending home sales of 96.6 on a seasonally adjusted basis, down from 100.1 in November. It was the highest two months since March and April 2010. A reading of 100 is consistent with the average level of contract activity in 2001 and coincides with “historically healthy” home-buying traffic, according to the NAR.

At the end of 2009, the Obama administration extended a tax credit for first-time buyers through April 2010 and expanded it to include some current owners. The government incentive, worth as much as $8,000, helped bolster sales of previously owned homes before they dropped off in the middle of 2010, at one point touching the lowest level in at least a decade.

Leading Indicator

Economists consider pending home sales a leading indicator because they track contract signings. Existing homes sales are tabulated when a contract closes, usually a month or two later.

Faster job creation may help push more people into the market for homeownership. The economy added 200,000 jobs in December, and the unemployment rate declined to an almost three- year low of 8.5 percent, Labor Department figures showed earlier this month.

Homebuyers are also enjoying cheaper borrowing costs. The average rate of a 30-year fixed mortgage fell to a record-low 3.88 percent as of Jan. 19, according to data by Freddie Mac.

Lower rates combined with prices that have slumped for four out of the five past years are making homes increasingly affordable. The median price of a previously-owned home declined to $166,100 in 2011, the lowest annual average since $165,000 in 2002, NAR data show.

More Affordable

The agents group’s affordability index was at 194.5 in November, second only to the prior month’s level as the highest on record. A reading of 100 means a household earning the median income can afford a median-priced home at current lending rates.

“Housing affordability conditions are too good to pass up,” NAR chief economist Lawrence Yun said in a statement accompanying the release. “Our hope is lending conditions will gradually improve with sustained increases in closed existing- home sales.”

President Obama is proposing a plan to help reduce monthly mortgage payments. The program will give “every responsible homeowner the chance to save about $3,000 a year on their mortgage by refinancing at historically low interest rates,” Obama said during last night’s State of the Union address. “No more red tape. No more runaround from the banks.”

Obama Plan

Costs would be covered by a fee on financial companies with more than $50 billion in assets, according to two senior administration officials who briefed reporters on the plan. Obama said “a small fee on the largest financial institutions will ensure that it won’t add to the deficit.”

The proposal follows Federal Reserve Chairman Ben Bernanke’s call for lawmakers and the Obama administration to offer more aid for housing. The Fed, which is holding short-term borrowing costs near zero and buying government-backed mortgage bonds, said in a paper sent to Congress this month that a previous Obama administration effort to make refinancing easier had failed to go far enough.

The central bank will issue its latest forecasts for the economy and interest rates later today.

–With assistance from Kristy Scheuble in Washington. Editors: Vince Golle, Carlos Torres

To contact the reporter on this story: Alex Kowalski in Washington at akowalski13@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

 

 

 

                              

 

 

 

 

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HUD List 2011 revised.rtf Download this file

Updated HUD Home list Augusta, GA –1/27/2012
Great buys and incentives!

Thank you! from the desk of..... Christine Keller Associate Broker & Office Manager Century 21 Jeff Keller Realty 2448 Lumpkin Road Augusta, Ga 30906 Cell Phone 706-589-2003 Toll Free 800-423-1292 email custserv@century21jk.com agent website www.21homes.net Company Website www.century21jk.com Visit my inventory of Visual Tours! How much is your home worth? Search for a HUD home & Ask me about Incentives! Follow me on Twitter: c21keller

Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, GA 30906
706.796.0106
custserv@century21jk.com

Visit our website  www.century21jk.com
Ask us about HUD homes and Bank Foreclosures
Be our Friend on Facebook!

Thank you! from the desk of..... Christine Keller Associate Broker & Office Manager Century 21 Jeff Keller Realty 2448 Lumpkin Road Augusta, Ga 30906 Cell Phone 706-589-2003 Toll Free 800-423-1292 email custserv@century21jk.com agent website www.21homes.net Company Website www.century21jk.com Visit my inventory of Visual Tours! How much is your home worth? Search for a HUD home & Ask me about Incentives! Follow me on Twitter: c21keller

——– Original Message ——–

Subject:	HUD Lists
Date:	Wed, 25 Jan 2012 14:20:19 -0500
From:	Christine Keller <info@century21jk.com>
Reply-To:	<info@century21jk.com>
Organization:	Century 21 Jeff Keller Realty
To:	‘Andrew Keller’ <andrew.keller@century21.com>, ‘CHRISTINE KELLER’ <CUSTSERV@CENTURY21JK.COM>, ‘Darlene Kelley’ <darlene1512003@yahoo.com>, ‘Dave Myer’ <david.myer@century21.com>, ‘Denard Brown’ <deno21@bellsouth.net>, ‘Donald McNeese’ <DAMY1946@yahoo.com>, ‘Elsie Thompson’ <elsie.thompson@century21.com>, ‘Fay Anderson’ <fay.anderson@century21.com>, ‘James Montgomery’ <jem919@hotmail.com>, ‘Jeff Keller III’ <bigkell99@aol.com>, ‘Jessica Newman’ <jessica.newman97@gmail.com>, ‘Juan Echavez’ <juan.echavez@century21.com>, ‘Kathy Boykin’ <boykinkat@yahoo.com>, ‘Larry Coursey’ <larry.coursey@century21.com>, ‘Lee Kitchen’ <kenneth.kitchen@century21.com>, ‘Linda Evans’ <levansc21@yahoo.com>, ‘Lou Hein’ <louhein@hotmail.com>, ‘Mary Ann Wilson’ <toots.82@hotmail.com>, ‘Mary Williams’ <ac21mwilliams@comcast.net>, ‘Michael Peeples’ <mmpeeples@knology.net>, ‘Pat Embry’ <pbembry@comcast.net>, ‘Purvis Huggins’ <phugginsrealtor@yahoo.com>, ‘Sandra Howard’ <ahome4u@comcast.net>, ‘Starlett Cancer’ <s.cancer435@comcast.net>, ‘Susan Keller-Lorick’ <susan.lorick@century21.com>, ‘Suze Klein’ <suze.klein@rocketmail.com>, ‘Tori Reed’ <tori@century21.com>, ‘Tracey McClam’ <twister6112@hotmail.com>, ‘Valerie Booker’ <valerie.booker@century21.com>

<<…>> <<…>> <<…>>

Thank you,

Customer Service Department:
Tori Reed
Alanna Scott
Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, GA 30906
706.796.0106 office
info@century21jk.com

Christine Keller, Associate Broker
Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, GA 30906
706.589.2003 cell
custserv@century21jk.com

Visit our website  www.century21jk.com
Ask us about HUD homes and Bank Foreclosures
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VA List Doc 1.doc Download this file

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(Shutterstock.com)

(MoneyWatch) 

It’s only January, but already the latest real estate news indicate that the housing market is looking up.

CoreLogic’s latest MarketPulse report, released Wednesday, suggests 2012 could be the year of the housing turnaround. Improved unemployment figures, low mortgage interest rates and inexpensive homes could be just the kick the housing market needs to begin a recovery.

Home sales are expected to rise between 2 and 5 percent year-over-year, according to Freddie Mac’s U.S. Economic and Housing Market Outlook survey, also released Wednesday. That’s not as much – or as quickly – as some people would like to see, but at least it didn’t forecast home prices to fall further than they already have.

Foreclosures hit lowest level since 2007
FHA extends waiver to help resell foreclose homes
Freddie Mac offers a break to unemployed homeowners

This optimistic outlook is due largely to all the good economic news we’re hearing about the end of 2011: Existing home sales increased in November, while the inventory of unsold homes decreased to a six-to-seven month supply. Nearly 80 percent of American households believe now is a great time to buy, and if that optimism translates to sales, the inventory could dwindle even further.

It’s not just buyers who are feeling good about the 2012 real estate market. Homebuilder confidence is the highest it’s been since 2007, due once again to the economic news we’re hearing about the latter part of 2011.

Housing starts began to climb last year, rising to around 600,000 in 2011 from 587,000 in 2010. The latest National Association of Homebuilders (NAHB) index rose four points from December 2011, reaching 25 on the 100-point scale. The optimal score is 50 and, while we’re not there yet, we could be on our way: According to the NAHB, confidence has risen four months in a row, with the latest uptick measured across each region.

“Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets, and this has helped to move the confidence gauge up from near-historic lows in the first half of 2011,” said NAHB Chief Economist David Crowe. Crowe knows many builders are still cautious due to tightened credit markets and the threat of more foreclosures, but “homebuilders are still more optimistic about sales over the next six months than they have been since September 2009.”

While buyers and homebuilders feel a sense of optimism, sellers are on a different level altogether. Only 7.6 percent of sellers believe now is a good time to sell, which is not surprising considering the number of those sellers trying to unload homes that are now worth less than they paid for them. According to CoreLogic’s latest home price index, home prices nationwide fell 4.3 percent year-over-year in November.

If there’s a bright side to sellers’ gloomy outlooks it could be the rise in remodeling activity: BuildFax’s latest index rose for the 25th straight month, exceeding the levels reached during the home-equity withdrawal boom of 2004-2006.

Instead of selling their homes at a reduced rate, those would-be sellers who can afford to stay in their homes are putting money back into them. “Residential remodeling in 2011 grew substantially above 2010 rates and remained strong through the end of the year,” according to Joe Emison, vice president of research and development at BuildFax.

CoreLogic’s chief economist, Mark Fleming, notes that “most housing statistics moved sideways in the latter part of 2011.” This isn’t the best news, but we’re at a point with the real estate market where it’s far from the worst.

If foreclosure rates don’t skyrocket and prices remain steady through the beginning of 2012, this might be the year things start to turn around.

© 2012 CBS Interactive Inc.. All Rights Reserved.

Ilyce Glink

>> View all articles

Ilyce R. Glink is an award-winning, nationally syndicated columnist, best-selling book author, and radio talk show host who also hosts “Expert Real Estate Tips,” a Internet video show. She owns and operates several websites including ThinkGlink.com, ExpertRealEstateTips.net, LawProblems.com, and HouseTask.com, as well as Think Glink Publishing LLC, a privately held company that provides consulting services as well as editorial content and video for companies and non-profit organizations. An in-demand speaker, she appears frequently on CNN, CNBC, NPR, and in local media outlets across the country.

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HUD List 2011 revised.rtf Download this file

Augusta, GA HUD resales updates 1.20.2012

Thank you! from the desk of..... Christine Keller Associate Broker & Office Manager Century 21 Jeff Keller Realty 2448 Lumpkin Road Augusta, Ga 30906 Cell Phone 706-589-2003 Toll Free 800-423-1292 email custserv@century21jk.com agent website www.21homes.net Company Website www.century21jk.com Visit my inventory of Visual Tours! How much is your home worth? Search for a HUD home & Ask me about Incentives! Follow me on Twitter: c21keller

——– Original Message ——–

Subject:	HUD List
Date:	Fri, 20 Jan 2012 16:50:29 -0500
From:	Christine Keller <info@century21jk.com>
Reply-To:	<info@century21jk.com>
Organization:	Century 21 Jeff Keller Realty
To:	Christine Keller <info@century21jk.com>

<<…>>
Thank you,

Customer Service Department:
Tori Reed
Alanna Scott
Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, GA 30906
706.796.0106 office
info@century21jk.com

Christine Keller, Associate Broker
Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, GA 30906
706.589.2003 cell
custserv@century21jk.com

Visit our website  www.century21jk.com
Ask us about HUD homes and Bank Foreclosures
Be our Friend on Facebook!

Thank you! from the desk of..... Christine Keller Associate Broker & Office Manager Century 21 Jeff Keller Realty 2448 Lumpkin Road Augusta, Ga 30906 Cell Phone 706-589-2003 Toll Free 800-423-1292 email custserv@century21jk.com agent website www.21homes.net Company Website www.century21jk.com Visit my inventory of Visual Tours! How much is your home worth? Search for a HUD home & Ask me about Incentives! Follow me on Twitter: c21keller

Visit our website  www.century21jk.com
Ask us about HUD homes and Bank Foreclosures
Be our Friend on Facebook!

VA List Doc 1.doc Download this file

HUD List 2011 revised.rtf Download this file

SC HUD LIST.doc Download this file

HUD List 2011 revised.rtf Download this file

Updated HUD list Augusta GA 1/16/2012

Thank you! from the desk of..... Christine Keller Associate Broker & Office Manager Century 21 Jeff Keller Realty 2448 Lumpkin Road Augusta, Ga 30906 Cell Phone 706-589-2003 Toll Free 800-423-1292 email custserv@century21jk.com agent website www.21homes.net Company Website www.century21jk.com Visit my inventory of Visual Tours! How much is your home worth? Search for a HUD home & Ask me about Incentives! Follow me on Twitter: c21keller

——– Original Message ——–

Subject:	HUD list
Date:	Mon, 16 Jan 2012 14:05:01 -0500
From:	Christine Keller <info@century21jk.com>
Reply-To:	<info@century21jk.com>
Organization:	Century 21 Jeff Keller Realty
To:	Christine Keller <info@century21jk.com>

<<…>>
Thank you,

Customer Service Department:
Tori Reed
Alanna Scott
Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, GA 30906
706.796.0106 office
info@century21jk.com

Christine Keller, Associate Broker
Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, GA 30906
706.589.2003 cell
custserv@century21jk.com

Visit our website  www.century21jk.com
Ask us about HUD homes and Bank Foreclosures
Be our Friend on Facebook!

Thank you!
from the desk of…..

Christine Keller
Associate Broker& Office Manager

Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, Ga 30906
Cell Phone 706-589-2003
Toll Free 800-423-1292
email custserv@century21jk.com
agent website www.21homes.net
Company Website www.century21jk.com
Visit my inventory of Visual Tours!
How much is your home worth?
Search for a HUD home& Ask me about Incentives!
Follow me on Twitter: c21keller

VA List Doc 1.doc Download this file

HUD List 2011 revised.rtf Download this file

SC HUD LIST.doc Download this file

HUD List 2011 revised.rtf Download this file

Happy New Year! Here is your HUD list for Friday 12/30

Thank you! from the desk of..... Christine Keller Associate Broker & Office Manager Century 21 Jeff Keller Realty 2448 Lumpkin Road Augusta, Ga 30906 Cell Phone 706-589-2003 Toll Free 800-423-1292 email custserv@century21jk.com agent website www.21homes.net Company Website www.century21jk.com Visit my inventory of Visual Tours! How much is your home worth? Search for a HUD home & Ask me about Incentives! Follow me on Twitter: c21keller

——– Original Message ——–

Subject:	Happy New Year! Here is your HUD list for Friday 12/30
Date:	Fri, 30 Dec 2011 16:01:04 -0500
From:	Christine Keller <info@century21jk.com>
Reply-To:	<info@century21jk.com>
Organization:	Century 21 Jeff Keller Realty
To:	Christine Keller <info@century21jk.com>

Happy New Year!

<<…>>

Thank you,

Customer Service Department:
Tori Reed
Alanna Scott
Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, GA 30906
706.796.0106 office
info@century21jk.com

Christine Keller, Associate Broker
Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, GA 30906
706.589.2003 cell
custserv@century21jk.com

Visit our website  www.century21jk.com
Ask us about HUD homes and Bank Foreclosures
Be our Friend on Facebook!

Thank you! from the desk of..... Christine Keller Associate Broker & Office Manager Century 21 Jeff Keller Realty 2448 Lumpkin Road Augusta, Ga 30906 Cell Phone 706-589-2003 Toll Free 800-423-1292 email custserv@century21jk.com agent website www.21homes.net Company Website www.century21jk.com Visit my inventory of Visual Tours! How much is your home worth? Search for a HUD home & Ask me about Incentives! Follow me on Twitter: c21keller

——– Original Message ——–

Subject:	HUD Lists
Date:	Wed, 21 Dec 2011 13:33:47 -0500
From:	Christine Keller <info@century21jk.com>
Reply-To:	<info@century21jk.com>
Organization:	Century 21 Jeff Keller Realty
To:	‘Andrew Keller’ <andrew.keller@century21.com>, ‘CHRISTINE KELLER’ <CUSTSERV@CENTURY21JK.COM>, ‘Darlene Kelley’ <darlene1512003@yahoo.com>, ‘Dave Myer’ <david.myer@century21.com>, ‘Denard Brown’ <deno21@bellsouth.net>, ‘Donald McNeese’ <DAMY1946@yahoo.com>, ‘Elsie Thompson’ <elsie.thompson@century21.com>, ‘Fay Anderson’ <fay.anderson@century21.com>, ‘James Montgomery’ <jem919@hotmail.com>, ‘Jeff Keller III’ <bigkell99@aol.com>, ‘Jessica Newman’ <jessica.newman97@gmail.com>, ‘Juan Echavez’ <juan.echavez@century21.com>, ‘Kathy Boykin’ <boykinkat@yahoo.com>, ‘Larry Coursey’ <larry.coursey@century21.com>, ‘Lee Kitchen’ <kenneth.kitchen@century21.com>, ‘Linda Evans’ <levansc21@yahoo.com>, ‘Lou Hein’ <louhein@hotmail.com>, ‘Mary Ann Wilson’ <toots.82@hotmail.com>, ‘Mary Williams’ <ac21mwilliams@comcast.net>, ‘Michael Peeples’ <mmpeeples@knology.net>, ‘Pat Embry’ <pbembry@comcast.net>, ‘Purvis Huggins’ <phugginsrealtor@yahoo.com>, ‘Sandra Howard’ <ahome4u@comcast.net>, ‘Starlett Cancer’ <s.cancer435@comcast.net>, ‘Susan Keller-Lorick’ <susan.lorick@century21.com>, ‘Suze Klein’ <suze.klein@rocketmail.com>, ‘Tori Reed’ <tori@century21.com>, ‘Tracey McClam’ <twister6112@hotmail.com>, ‘Valerie Booker’ <valerie.booker@century21.com>

<<…>> <<…>> <<…>>

Thank you,

Customer Service Department:
Tori Reed
Alanna Scott
Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, GA 30906
706.796.0106 office
info@century21jk.com

Christine Keller, Associate Broker
Century 21 Jeff Keller Realty
2448 Lumpkin Road
Augusta, GA 30906
706.589.2003 cell
custserv@century21jk.com

Visit our website  www.century21jk.com
Ask us about HUD homes and Bank Foreclosures
Be our Friend on Facebook!

VA List Doc 1.doc Download this file

HUD List 2011 revised.rtf Download this file

SC HUD LIST.doc Download this file