Dec 18, 2013 | Housing Analysis
According to the National Association of Homebuilders/Wells Fargo Homebuilders Market Index for December, builder confidence recovered in with a reading of 58. This surpassed both expectations of 56 and last month’s reading of 54.
Analysts noted that builder confidence has steadied after the government shutdown. December’s reading was the highest in four months. Dave Crowe, NAHB chief economist, said that his organization was expecting a “gradual improvement in the housing recovery” in 2014.
Any reading above 50 indicates that more builders are confident about overall housing market conditions than not.
Builder Confidence – Highest Reading Since 2005
Pent-up demand for housing is driving housing markets in spite of higher mortgage rates. Three components of builder confidence used to calculate the overall reading also rose in December. Builder confidence in current home sales rose to 64 from a reading of 58 in November; this is the highest reading since 2005.
Confidence levels in housing markets over the next six months rose to 62 from last month’s reading of 60. Builder confidence also grew in the area of buyer foot traffic in new developments and gained three points to a reading of 44.
All of this is good news, but the NAHB said that a gap remains between higher home builder confidence and the rate of new home construction. A seasonal lull in home construction is not unusual especially in areas experiencing harsh weather.
More Jobs, Low Refinance Numbers Could Mean More Mortgages Available
MarketWatch analysts suggest that if the economy continues to add jobs “at a brisk pace” and mortgage lenders ease lending requirements next year, the demand for homes could further strengthen the U.S. housing market next year.
Low numbers of refinance mortgages in 2013 may cause some lenders to loosen mortgage credit requirements, which were tightened after the housing bubble burst.
Economic News scheduled for today may provide a broader picture of economic health and likely trends for 2015. The Federal Reserve’s Federal Open Market Committee will provide its expected statement after its meeting, and Fed Chairman Ben Bernanke will give his last press conference as Fed chair as well.
Any indication of plans to reduce the Fed’s current quantitative easing program could upset financial and mortgage markets, but most economic analysts don’t expect an announcement of tapering the Fed’s asset purchases before next year.
Data on November Housing Starts and Building Permits will also offer clues as to how housing markets and the general economy are doing.
Dec 17, 2013 | Around The Home
It’s coming up on Christmas time, which means that people are decorating their home with lights and tinsel. It also means that it’s time to pick a Holiday tree. If you’ve never had a real Holiday tree or you never seem to get it quite right, these tips and tricks can help you pick the perfect tree:
Buying Your Tree
- Measure where you’re going to place the tree in your home, from ceiling to floor. You’ll want your tree to be at least a foot shorter than the ceiling, so take a measuring tape with you when you shop for your tree.
- When measuring for height, adjust for the star, angel or topknot that you’ll be using; most can add as much as twelve inches to the height of your tree.
- Measure the opening of your tree stand, so you know how wide the base of the tree can be.
- The base of the tree should be straight and at least six inches long to fit nicely into your tree stand.
- Run your fingers along the needles of the tree you’re looking at, and give the tree a shake. Very few needles should fall off.
- For the best shape, full branches, rich color and good needle retention on trees, choose a Balsam fir, Douglas fir, Fraser fir, Noble fir or Scotch pine.
- Buy as soon as you can for the best quality, or wait longer for best price.
Taking Care Of Your Tree
- After you get it home, cut an inch off the base so your tree can take in water more easily. Make sure the cut is straight.
- Use a stand that holds at least one gallon of water.
- Make sure you water your tree often. This keeps the needles from drying, as well as keeping the fragrance strong. Check the water level every few hours.
- Don’t add anything to the water – no aspirin, soda water, bleach, etc. – to keep it fresh. According to the experts, lots of plain water is best.
Keep cheerful Holiday spirit alive by having the perfect Holiday tree in your home, one that’s lush and brightly decorated. Want a new home to decorate? Call your trusted real estate professional. Have a Happy Holiday!
Dec 16, 2013 | Mortgage Rates
Mortgage Debt Rises For First Time Since Recession
Last week was relatively quiet concerning scheduled housing-related news, but the Federal Reserve’s financial accounts report, released on Monday, indicated that mortgage debt in the U.S. had increased for the first time since the first quarter (Q1) of 2008.
Mortgage debt increased by a seasonally-adjusted annual rate of $87.4 billion, or 0.90 percent. Mortgage debt remains approximately 12.00 percent below pre-recession levels.
Increasing debt is not often considered good news, but in the case of mortgage debt in today’s economy, it suggests economic recovery in the form of higher home prices and fewer foreclosures.
Another instance of counter-intuitive economic results was released Tuesday. The Bureau of Labor Statistics (BLS) released its Job Openings and Labor Turnover Survey (JOLTS) report for October.
JOLTS indicated that 2.39 million workers quit their jobs in October. This was the highest number of jobs quit since 2008. While this may appear counter-productive to a growing economy, it indicates that workers are leaving their jobs for better positions.
Mortgage Rates Fall, Federal Budget Deficit Shrinks
On Wednesday the U.S. Treasury announced that November’s federal budget deficit had shrunk to -$135 billion from November 2012’s deficit reading of -$172 billion. This represents a year-over-year deficit decrease of 21 percent.
Freddie Mac’s Primary Mortgage Market Survey (PMMS) report provided good news as average mortgage rates fell last week. The average rate for a 30-year fixed rate mortgage fell from 4.46 percent to 4.42 percent. Discount points rose from the previous week’s reading of 0.50 percent to 0.70 percent.
15-year fixed rate mortgage rates fell from 3.47 percent to an average reading of 3.43 percent, with discount points rising from the prior week’s reading of 0.40 percent to 0.70 percent.
The average rate for a 5/1 adjustable rate mortgage dropped from 2.99 percent to 2.94 percent with discount points unchanged at 0.40 percent.
Lower mortgage rates are good news for home buyers facing higher home prices.
Weekly jobless claims rose last week. The previous week’s reading of 300,000 new jobless claims was short-lived as the reading for new jobless claims rose to 368,000 last week and surpassed a consensus of 335,000 new jobless claims.
Financial analysts cautioned that employment data can be volatile during the holidays, and noted that the four-week average of new unemployment claims rose by 6000 to 328,750.
What‘s Coming Up
There are several significant releases set for housing-related news. The NAHB housing market index, Housing Starts, and Building permits indicate how current builder confidence and new construction may impact the supply of available homes.
On Wednesday, the FOMC will issue its usual statement at the conclusion of its two-day meeting. Some analysts expect an announcement concerning the Fed’s quantitative easing policy; Outgoing Fed Chair Ben Bernanke is set to give a press conference after the FOMC statement.
In addition to the weekly jobless claims report and Freddie Mac’s PMMS, Reports on Existing Home Sales and Leading Economic Indicators will also be released.
Dec 13, 2013 | Around The Home
It’s that time of year again when the weather outside gets frightful but the holiday cheer is delightful. You’ve probably got a lot on your mind during these busy winter months, but make sure that you don’t neglect the roof of your home.
Taking care of your roof is an important part of home maintenance and you don’t want to suffer a leak or any other problem during the cold months.
So how can you make sure that Santa and his sleigh have a solid and well-maintained landing pad when they touch down at your house this year? Here are some tips that every homeowner should know:
Check Out Your Gutters
Your gutters are an important part of your roof, because they allow water to flow away from the roof surface before it causes rot and damage. During the winter, your gutters will be more likely to get clogged with fallen leaves, snow and ice and can get blocked if they are not cleared out.
Get yourself a ladder and a friend to hold it for you and clean any leaves, debris and dirt from the gutters. Flush the gutters out with a hose afterward to ensure they are clean. If your gutters have become damaged or leaky, you can use gutter sealant or fibreglass resin to patch up the hole.
Trim Back The Trees
If you have a lot of trees and vegetation overhanging above your roof, it’s a good idea to trim it back before the winter months. At the moment, it might not be touching your roof – but once it is weighted down with snow or blown around by the wind it might do some damage.
When hiring a tree trimming service, get a few different quotes from a range of contractors so that you can be sure that you are getting the right price.
Inspect Your Roof For Weak Spots
A roof inspection can save you from a lot of roof damage, which could get even more serious when the weather gets colder and wetter. Start by performing a visual inspection of the inside and outside of your roof.
Look around for any missing tiles and make sure that the gutters are allowing the water to drain freely from the roof. This can be done while walking around your property with binoculars.
If you spot something that looks suspicious, you can hire a professional roofer to take a closer look. They will be experienced and will know what to look for, so that they can find the weak spot and fit it right away. A roof inspection will cost you, but it is a lot cheaper than paying for a new roof!
These are just a few important maintenance tasks that you can perform in order to ensure that your roof is in tip top shape to welcome the winter season – and a sleigh pulled by eight tiny reindeer! For more handy tips and info about your home, contact your trusted real estate professional today.
Dec 12, 2013 | Around The Home
Few questions are more important this time of year than which Christmas tree you should buy for your home. There are some things to keep in mind when looking for the perfect Christmas tree.
Here are just a few:
Real Or Artificial Tree?
Real Christmas trees require some care; if you’re planning to travel this holiday season, you may not want a live tree. You must water the tree to make sure that it doesn’t lose its needles before Christmas day.
The live trees are not fire resistant, the dried out pine needles can get too hot from the lights and may burst into flame.
On the other hand, there isn’t any up-keep with an artificial Christmas tree, and many look quite realistic. The plastic Christmas trees have an added bonus of being flame retardant.
Then, there’s the convenience of not having to go out in the cold weather to pick the tree out.
For those of you who can’t imagine Christmas without the pine needle smell, you can buy air fresheners that mimic the smell of fresh cut pine. For some, an artificial tree is the best of both worlds.
How Big Is Too Much Tree?
Now that you’ve decided what kind of Christmas tree to buy, you have to find out how big a tree you can fit in your home. It could be that the only thing limiting the size of your Christmas tree is your budget; in that case, your decision is easy.
However, if you’re limited on space, you’ll need to decide the best place to put your tree first.
Try to think of how the area will “frame” your Christmas tree. Consider how much traffic goes by the area and whether there will be enough room for the presents to stay safe.
Break out the measuring tape so you don’t have to guess when you’re on the Christmas tree lot; trees look deceptively small on the lot. Or, if you opted for the fake Christmas tree, you’ll know exactly which box to pick out; just look for the right size.
Want to buy a home that has space for a bigger tree? I can help. Give your trusted real estate professional a call today.
