March National Housing Trend Report

by Team Member 4. May 2015 09:45

The realtor.com March National Housing Trend Report shows that inventory in Kansas City has increased 2.7 percent month over month and decreased 12.8 percent year over year. In March 2015, homes spent approximately 67 days on the market, which was a decrease of 33 percent both month over month and year over year. Median prices rose to $178,000, an increase of 4.1 percent month over month and 15.6 percent year over year. WE CAN GET YOUR HOME LISTED AND SOLD QUICKLY! Need a great agentjQuery152009523531165905297_1430747125186 Email or call me and allow my team to get your home SOLD the 1st time! barbandtrice@greaterkcrealty.net | 913.232.9252 


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The First Greater Kansas City Realty Baby!

by pilchercreative 3. February 2015 08:16

Below is a picture of the first Greater Kansas City Realty Baby! Ana, the mother, has been with our company for about 4 years. Born 11/7/14, weight was 7.12oz and length 20 inches. 

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Home Buying in Six Steps

by Team Member 7. October 2014 09:49

The home-buying process can seem daunting to potential homebuyers, but a qualified real estate professional who understands the entire process can help ease many of these worries. Be prepared with these useful tips - http://buff.ly/1x9dWtL

 

 

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Taking the Long View on Recovery

by Team Member 21. July 2014 16:21

JULY 2014 | BY LAWRENCE YUN

No industry is more cyclical than the housing sector. Changes in job growth and mortgage rates can have a big impact on whether home sales rise or fall. Today, after two years of solid growth, home sales appear to be hitting a soft spot. But that doesn’t necessarily mean the recovery is over.

Compared with previous cycles, hitting a soft spot only two years into a recovery is unusual. That’s because the country’s steady population growth typically boosts demand for home sales after a  downturn. We saw this in the three housing recoveries since 1970. These recoveries were multiyear phenomena of seven, five, and 14 years (the boom).

This time, the expansion seems to be sputtering after only two years. Why? It doesn’t appear to be a lack of demand. We’ve seen a build-up of potential buyers from the creation of 2.4 million jobs over the past 12 months, as well as continuing low interest rates (4.2 percent as of early summer), and the pent-up demand from young adults living at home longer or doubling up with friends.

The difference between this and previous recoveries is on the supply side. There simply isn’t enough inventory to keep the market growing. Just to keep pace with the growing U.S. population, we would need to see about 1.5 million housing starts a year, but since the downturn, we’ve seen the construction of new homes at levels well below half that.

Fortunately, we’re starting to see more homes being listed for sale. March and April inventory levels were higher this year compared with last year, and homebuilders are increasing their activity.

To be sure, the affordability side continues to face pressure. Home prices have been rising throughout the recovery, and credit standards remain tight. But there’s good news on both fronts. As more homes come on the market, the pressure on prices should moderate, and we expect future price gains to be in line with income growth. And we see signs lenders could dial down credit standards to more normal levels, in part because of the strong performance of mortgages originated in the last few years.

Therefore, all in all, a multiyear housing market recovery is still in the works if we discount the modest slowdown for this year.

SOURCE: http://realtormag.realtor.org/news-and-commentary/economy/article/2014/07/taking-long-view-recovery#sf3767236

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Existing-Home Sales Heat Up in May, Inventory Levels Continue to Improve

by Team Member 23. June 2014 17:13

Media Contact: Adam DeSanctis / 202-383-1178 / Email

WASHINGTON (June 23, 2014) – Existing-home sales rose strongly in May and inventory gains continued to help moderate price growth, according to the National Association of Realtors®. All four regions of the country experienced sales gains compared to a month earlier.

Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 4.9 percent to a seasonally adjusted annual rate of 4.89 million in May from an upwardly-revised 4.66 million in April, but remain 5.0 percent below the 5.15 million-unit level in May 2013. The 4.9 percent month-over-month gain in May was the highest monthly rise since August 2011 (5.5 percent).

Lawrence Yun, NAR chief economist, said current sales activity is rebounding after the lackluster first quarter. “Home buyers are benefiting from slower price growth due to the much-needed, rising inventory levels seen since the beginning of the year,” he said. “Moreover, sales were helped by the improving job market and the temporary but slight decline in mortgage rates.” 

Total housing inventory2 at the end of May climbed 2.2 percent to 2.28 million existing homes available for sale, which represents a 5.6-month supply at the current sales pace, down slightly from 5.7 months in April. Unsold inventory is 6.0 percent higher than a year ago, when there were 2.15 million existing homes available for sale.

The median existing-home price3 for all housing types in May was $213,400, which is 5.1 percent above May 2013. “Rising inventory bodes well for slower price growth and greater affordability, but the amount of homes for sale is still modestly below a balanced market. Therefore, new home construction is still needed to keep prices and housing supply healthy in the long run,” Yun added.  

Earlier this month, NAR reported new home construction activity is currently insufficient in most of the U.S., and some states could face persistent housing shortages and affordability issues unless housing starts increase to match up with local job creation.

Distressed homes4 – foreclosures and short sales – accounted for 11 percent of May sales, down from 18 percent in May 2013. Eight percent of May sales were foreclosures and three percent were short sales. Foreclosures sold for an average discount of 18 percent below market value in May, while short sales were discounted 11 percent.

The percent share of first-time buyers continued to underperform, representing less than one- third of all buyers at 27 percent in May, down from 29 percent in April; they were 29 percent in April 2013.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage dropped to 4.19 percent in May from 4.34 percent in April, and is the lowest since June 2013 (4.07 percent).

NAR President Steve Brown, co-owner of Irongate, Inc., Realtors® in Dayton, Ohio, said housing fundamentals are showing slight improvement in markets across the country. “Many potential buyers were left on the sidelines beginning last summer as affordability declined amidst rising home prices and interest rates,” he said. “The temporary pause in rising interest rates and more homes for sale is good news – especially for first-time home buyers – who likely have a better chance in upcoming months to make a competitive offer that’s in return accepted by the seller.”

The median time on market for all homes was 47 days in May, down from 48 days in April; it was 41 days on market in May 2013. Short sales were on the market for a median of 125 days in May, while foreclosures typically sold in 57 days and non-distressed homes took 44 days. Forty-one percent of homes sold in May were on the market for less than a month.

All-cash sales comprised 32 percent of transactions in May, unchanged from last month and down from 33 percent in May 2013. Individual investors, who account for many cash sales, purchased 16 percent of homes in May, down from 18 percent in April; they were 18 percent in May 2013. Sixty-eight percent of investors paid cash in May.

Single-family home sales rose 5.7 percent to a seasonally adjusted annual rate of 4.30 million in May from 4.07 million in April, but remain 5.7 percent below the 4.56 million pace a year ago. The median existing single-family home price was $213,600 in May, up 4.9 percent from May 2013.

Existing condominium and co-op sales remained unchanged in May from April (as well as May 2013) at an annual rate of 590,000 units. The median existing condo price was $212,300 in May, which is 6.6 percent higher than a year ago.

Regionally, existing-home sales in the Northeast rose 3.3 percent to an annual rate of 620,000 in May, but are 3.1 percent below a year ago. The median price in the Northeast was $256,700, down 0.9 percent from May 2013.

In the Midwest, existing-home sales jumped 8.7 percent to an annual rate of 1.13 million in May, but are still 7.4 percent below May 2013. The median price in the Midwest was $165,900, up 4.0 percent from a year ago.

Existing-home sales in the South increased 5.7 percent to an annual level of 2.05 million in May, but are down 0.5 percent from May 2013. The median price in the South was $184,800, up 4.4 percent from a year ago.

Existing-home sales in the West rose 0.9 percent to an annual rate of 1.09 million in May, and are 11.4 percent below a year ago. The median price in the West was $297,500, which is 8.4 percent above May 2013.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

NOTE:  For local information, please contact the local association of Realtors® for data from local multiple listing services. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.

1Existing-home sales, which include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR rebenchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.

Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90 percent of total home sales, are based on a much larger data sample – about 40 percent of multiple listing service data each month – and typically are not subject to large prior-month revisions.

The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.

Single-family data collection began monthly in 1968, while condo data collection began quarterly in 1981; the series were combined in 1999 when monthly collection of condo data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historic comparisons for total home sales prior to 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condos.

2Total inventory and month’s supply data are available back through 1999, while single-family inventory and month’s supply are available back to 1982 (prior to 1999, single- family sales accounted for more than 90 percent of transactions and condos were measured only on a quarterly basis).

3The median price is where half sold for more and half sold for less; medians are more typical of market conditions than average prices, which are skewed higher by a relatively small share of upper-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort median price data. Year-ago median and mean prices sometimes are revised in an automated process if additional data is received.

The national median condo/co-op price often is higher than the median single-family home price because condos are concentrated in higher-cost housing markets. However, in a given area, single- family homes typically sell for more than condos as seen in NAR’s quarterly metro area price reports.

4Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors are from a monthly survey for the NAR’s Realtors® Confidence Index, posted at Realtor.org.

Realtor.com®, NAR’s listing site, posts metro area median listing price and inventory data at: www.realtor.com/data-portal/Real-Estate-Statistics.aspx.

The Pending Home Sales Index for May will be released June 30, and existing-home sales for June is scheduled for July 22; release times are 10:00 a.m. EDT.

SOURCE: http://www.realtor.org/news-releases/2014/06/existing-home-sales-heat-up-in-may-inventory-levels-continue-to-improve#sf3402872

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Home Sales Struggle, But Improvement Seen

by Team Member 19. May 2014 13:24

DAILY REAL ESTATE NEWS | FRIDAY, MAY 16, 2014

 

Two years into the economic recovery, residential home sales are struggling. But because of demographic and other trends, long-term growth prospects remain good, NAR Chief Economist Lawrence Yun said Thursday at the REALTOR® Party Convention & Trade Expo.

At the Residential Economic Issues & Trends Forum, Yun forecast 4.9 million existing-home sales this year, a roughly 3 percent drop from last year and a signal that the recovery in home sales that started two years ago is flagging.

Weakness in the broader economy is part of the problem. Economic growth turned negative in the first quarter of 2014, by about a percentage point, in part because severe winter weather hampered consumption. The rest of the year should be better, Yun said, but growth will remain tepid: only about 2.1 percent rather than the 3 percent that analysts would like to see.

Home sales were hit by the cold weather, too, although a portion of the stalled activity is expected to return now that the weather is improving.

The more fundamental problem is the continuing tough time households face getting financing and the lack of inventory, which is hurting affordability by keeping prices rising at a time when interest rates are going up as well.

Yun is forecasting a national median home price of $209,000 for this year, up from $197,000, and an average rate of 4.7 percent for a 30-year, fixed-rate loan. The rate remains historically low, but the days of an accommodative Federal Reserve interest-rate policy are ending and the rate could get close to 6 percent next year.

What’s needed is a ramp up in new-home starts to about 1.7 million a year, the historical average, from about 1.1 million now, Yun said. Until there’s more inventory, sales volume will remain low and prices will keep rising.

To get more starts, community banks—the traditional sources of credit for small builders—need to pick up their lending. Although there are lagging signs that lending might be poised to head up, uncertainty over banking regulations enacted after the financial crisis is contributing to the status quo.

For the long term, the picture is much brighter, because there is a lot of pent-up demand from young adults who can’t overcome income and financing hurdles to buy and increasing interest from international buyers who want to purchase in the United States. As the broader economic recovery strengthens, with the creation of more and better-paying jobs, the gap between the country’s growing population and flat-lining home sales will narrow.

For 2015, Yun is forecasting 5.2 million existing-home sales, 710,000 new-home sales, up from 510,000 this year, and a home-sale dollar-volume increase of 11 percent from the year before.

Looking further ahead, as the global population nears the 9 billion mark at the beginning of the next decade, destination cities including New York, San Francisco, Washington, Boston, Chicago, San Diego, Dallas, and Miami, among others, will see ever-increasing home values as global buyers stoke demand.

—Robert Freedman, REALTOR® Magazine

SOURCE: http://realtormag.realtor.org/daily-news/2014/05/16/home-sales-struggle-improvement-seen#sf2963413#sf2964457


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The Internet Has Not Changed What Defines A Great REALTOR®

by Team Member 23. April 2014 20:10

Last night I was alerted by Laurie Davis to a post on Motley Fool titled, Will Real Estate Agents Be Necessary In The Future.

The article featured an interview with Spencer Rascoff, CEO of Zillow. He was being asked to explain why Zillow had decided to work with real estate agents instead of attempting to replace them as he had done with HotWire. He correctly outlined the critical difference between the travel transaction and the real estate transaction and went on to describe why he felt there would always be a real estate agent involved.

There will always be a real estate agent in the transaction because, for most consumers, it’s just too important and too expensive and too infrequent and complex to screw up, so they need an agent.

Now, what is changing though — and Zillow is undoubtedly accelerating the change — is what type of agent can be successful in 2014. It’s quite different than the type of agent that was successful before the Internet.

Today, a good agent has to be an expert negotiator. They have to be a great marketer. They have to have deep local expertise. They have to be a transactional guide to a client.

Whereas, before the Internet, a great agent just had to be an information gatekeeper; someone who had access to the secret database that you and I didn’t have access to. Those days are long gone. Now we have access to all the same information as a real estate agent because of mobile devices and the Internet, so the role of the agent is changing.

I have a fundamental disagreement with the statement, “before the internet, agreat agent just had to be an information gatekeeper.” Spencer is a bright guy, likely brighter than I am and decidedly more successful. So, I don’t actually think he believes what, for me, is an obviously incorrect statement. My bet is that if Spencer were pressed, he’d agree that being a GREAT agent has never had anything to do with gatekeeping.

My Pre-Internet Experience With A Great REALTOR®

In 1984, I purchased my first house. This, of course, was long before we all received “access to all the same information as a real estate agent.” And, as a result I was forced to find an agent before I could really even begin searching for my house. But access that information was certainly not all I expected from my agent. In fact, the notion that I would spit out some criteria and they would give me back a list of houses wasn’t even a part of my thinking at the time. I now know that this is what I should expect from a search engine, but at the time, I would never have imagined that would be the value of a great agent.

I’ve told this story many times from the stage, but I’ve never written about it before. I had a truly great first experience with a REALTOR®. She came to my apartment to meet me and discuss what I was looking for in a home. I told her I wanted a single family home. I wanted a one story house, with two bedrooms, and a basement. And I discussed my budget with her at length. She gave me a strong sense of confidence that she understood my desire and my limitations.

My pre-internet agent was far from being a simple gatekeeper to information.

The following day I receive a phone call from my agent and she began to tell me about a few homes, but the one she really wanted me to see was a duplex in Speedway, Indiana. I had not considered either a duplex or Speedway and I objected to going to look at it. She then explained that I would really enjoy the neighborhood, that it was close to my work and that the wood floors would match my Mission Oak furniture. I collected Mission Oak furniture at the time and she made note of that while she was at my apartment, but I thought nothing of it. She then went on to say that the renter had a two year lease, were very nice and that rent would more than pay for the mortgage, even though the price was slightly out of the range I had told her I could afford.

Reluctantly, I went to visit the home, met the renter, saw the wood floors and made an offer the following day. My agent in 1984, far from being a simple gatekeeper to information, was listening to my needs, had unique local knowledge, handled the entire negotiation for me, keeping in mind my specific financial goals, and held my hand through the entire transaction, teaching me along the way. It is by far the best real estate purchase I have ever made. And she was the best agent I’ve ever worked with inside a real estate transaction.

The Internet Has Not Changed What Defines A Great REALTOR®

If anything, what the Internet has really done is time-shift the point at which a great agent gets called upon to display their real value. If I had Zillow or Trulia or realtor.com at my disposal in 1984, I might never have seen that home. I would have pre-filtered my search and taken a list of homes I wanted to see to a real estate agent. I might have even expected them to simply “unlock the doors” for me. But I would have been making a huge mistake. The same would be true now.

What I have personally witnessed over my years of working in and around the real estate space, is that the most productive, highest earning agents in the majority of offices have operated their businesses with little to no regard for the shiny objects offered at technology focused real estate conferences. They are not early adopters, but they are not afraid of to use proven technology either.  And they have paid little attention to the warnings of their impending disintermediation at the hands of third parties. They can do this because they know that their success has never been directly associated with the tools at their disposal. Their success has always been predicated on their ability to do the very things Spencer says must change to make them great agents today.

Those skills have always been what has differentiated a simply average agent from a GREAT agent. Zillow (and  I’d argue, Trulia and realtor.com)  has certainly played a role in accelerating the change in the way consumers interface with the real estate transaction at various points, but they have not played a role in accelerating any truly meaningful change in what defines a great agent in 2014.

Or what made an agent great in 1984.

SOURCE: http://www.jeffturner.info/the-internet-has-not-changed-what-defines-a-great-realtor/?utm_content=buffer11f42&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer&sf2607083=1

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