Today's Featured Town Is
DERRY NH 03038
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Tuesday, March 29, 2011
Monday, March 28, 2011
Monday Market Update!
Keeping You Updated On The Market
For The Week Of
March 28, 2011
Market Recap
Bearish pundits – those chatterers who seek notoriety by accentuating the negative – had reason to strut this past week because the news on housing was, for the most part, to their liking.Existing sales for February fell 10 percent to an annual rate of 4.88 million units. Supply could be a concern going forward. The inventory of existing homes for sale rose 3.5 percent to 3.48 million units, 8.6 months of supply at the current sales rate and a 14.6 percent increase over January's 7.5 months.
Supply issues raise pricing issues. On that front, the median sales price of existing homes fell 1.1 percent in February to $156,100, while the average price dropped 1.4 percent to $203,000. Year-over-year, the decline for the median price is deepening, at minus 5.2 percent, but holding steady at minus 2.7 percent for the average price.
New home sales tumbled 16.9 percent in February to an annual rate of 250,000 units, which was a mild shock, considering the consensus estimate was expecting 295,000 units. Fewer sales mean more inventory. Supply rose to 8.9 months at the current sales rate. As for prices, the median price fell 13.9 percent to $202,100, a drop that sweeps the year-over-year rate into the negative column at minus 8.9 percent.
Following the off-putting news on home sales, it was only natural that a few analysts were willing to fan the pessimistic flames. MacroMarkets lead the charge, stating that a double-dip in housing could arrive this year. "Overall, the sentiment among our expert panel regarding the U.S. housing market outlook continues to deteriorate," said Robert Shiller, co-founder of MacroMarkets. "Now they are expecting only a weak recovery, and even that is not until 2013."
Now is as good a time as any to take a cynical shot at “expert” panels. Let's not forget that the experts were wildly off the mark on new and existing home sales for February. Why did so few ignore the obvious – the weather? Sales were actually flat in the West and the South. Sales in the Northeast declined 57 percent and 27 percent in the Midwest – two regions hit particularly hard by cold and snow.
February's data were a downer, but we expect to see improvement in March based on the developing upward trend in purchase applications. Lower mortgage rates, which have eased by 25 basis points over the past four weeks, have stimulated interest. And let's not overlook an improving economy. Fewer Americans are claiming unemployment benefits. Since July, the four-week moving average has dropped from 500,000 to 380,000. This trend will boost expectations for accelerating payroll and economic growth. That's good news for housing's outlook.
Economic Indicator | Release Date and Time | Consensus Estimate | Analysis |
Personal Income & Outlays (February) | Mon., March 28, 8:30 am, et | Income: 0.5% (Increase) Outlays: 0.5% (Increase) | Moderately Important. Real income is growing, while spending is more reflective of price inflation. |
Pending Home Sales Index (February) | Mon., March 28, 10:00 am, et | 2.0% (Decrease) | Important. Inclement weather is expected to weigh on the index. |
Case-Shiller Home Price Index (January) | Tues., March 29, 9:00 am, et | 0.4% (Decrease) | Moderately Important. A decrease in national prices is likely based on pricing data from other sources. |
Consumer Confidence (March) | Tues., March 29, 10:00 am, et | 64.5 Index | Moderately Important. Confidence is expected to ease, but remains in a positive trend. |
Mortgage Applications | Wed., March 30, 7:00 am, et | None | Important. Month-to-month strength hints at more home buying heading into spring. |
Employment Situation (March) | Fri., April 1, 8:30 am, et | Unemployment Rate: 8.9% Job Growth: 200,000 | Very Important. The trend in unemployment claims suggest strong job growth for February. |
Construction Spending (February) | Fri., April 1, 10:00 am, et | 0.9% (Increase) | Important. Nonresidential and public outlays are offsetting weakness in residential outlays. |
Mortgage Rates or Home Prices?
It can be an incapacitating conundrum: weighing interest-rate movement rates against home-price movements. The trade-off can be difficult to analyze, especially for borrowers who mistakenly believe rates have always been low and will always remain so. Of course, many neophyte homebuyers are thinking along a similar line; that is, home prices are low and will stay low.The analysis is actually straightforward, if placed in a historical context. Both mortgage rates and home prices are much closer to being at, or near, a bottom than a top when comparing today's market to markets past. Of course, it is entirely possible that a buyer could sign a contract, lock in the loan rate, then go home and read that national home prices and mortgage rates have dropped.
Market tops and bottoms are impossible to predict. The best we can do is to estimate where we are based on long-term trends and similar past economic circumstances. From this perspective, there is really no trade off. Both home prices and mortgage rates are low, so there is no conundrum and there is no reason to put off buying a home for anyone staying put for at least five years.
Friday, March 25, 2011
Friday's Featured Listing!
26 Caldwell Lane
Merrimack, NH 03054
$275,000
Merrimack NH real estate. Meticulously maintained home in desirable Parker Village Community. Fantastic upgrades of central air conditioning, hardwood, tile and Berber carpet flooring. The Crown, picture frame and chair rail molding add to the comfort and delight of this welcoming home. Plus enjoy wonderful features such as 1st floor master bedroom with bath, 1st floor laundry, relaxing living room with cathedral ceilings and gas fireplace w blowers, large kitchen and inviting 4 season porch with slider to deck and large back yard.
For More Information Visit
Or Call
603-471-0872
Thursday, March 24, 2011
Thursday Tips For Homeowners!
10 Tips to Give Your Kitchen a Low-Cost Facelift
Kitchen remodels can be among the most expensive home improvement projects, but you don’t have to spend a fortune to whip up your meals in style. Here are nine inexpensive ways to cook up some extra storage, style, and function in your kitchen.
The new laminate countertops
Kitchen remodels can be among the most expensive home improvement projects, but you don’t have to spend a fortune to whip up your meals in style. Here are nine inexpensive ways to cook up some extra storage, style, and function in your kitchen.
The new laminate countertops
Forget everything you thought you knew about laminate. These countertops from Formica mimic the look of granite without the hefty price tag.
Credit: Formica Corporation
Pull-out perfection
Image: ShelfGenie® Glide-Out™ Shelving Solutions
The flexible faucet
Image: Kohler
Credit: Siro Designs
A touch of whimsy
For a quick, inexpensive way to add creative accents to your kitchen, replace the knobs, pulls, and hinges on your cabinets. There’s a limitless array of options, and you can finish the job in a weekend.
Credit: Siro Designs
Credit: Siro Designs
The hook-up
Credit: Siro Designs
Shine a light
New heights in storage
Over the door, add some more
The great divide
Hang gliding
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