Weekly Housing Market Update

QUOTE OF THE WEEK… “Success is often just an idea away.” –Frank Tyger, American cartoonist, columnist, and humorist

INFO THAT HITS US WHERE WE LIVE… One idea that could lead to some success is to let people know that home prices and home sales both posted strong annual growth in the third quarter, according to the National Association of Realtors (NAR). The national median existing single-family home price was UP 7.6% versus a year ago, the best year-over-year quarterly price boost since Q1 of 2006 when prices were up 9.4%. And existing home sales were UP 10.3% over Q3 last year, to a 4.68 million annual rate. 

The NAR’s chief economist said rising prices and tight inventory indicate the housing recovery is settling in. He added, “We expect fairly normal appreciation patterns in 2013, but there is a risk of price acceleration if builders are unable to meet the needs of our growing population and household formation.” The Mortgage Bankers Association forecasts purchase loan originations will be UP 16% next year.They expect this will come from growth in new home sales, modest home price gains, and more financed, owner-occupied sales. 

BUSINESS TIP OF THE WEEK… John D. Rockefeller said, “A friendship founded on business is better than a business founded on friendship.” Keep this in mind when seeking to develop rapport with prospects and partners.

>> Review of Last Week

POST-ELECTION PLUNGE… Following the re-election of Barack Obama as President,the Dow and S&P 500 suffered their worst weekly losses since June. It was the Dow’s third straight losing week, while the tech-heavy Nasdaq ended down for the fifth week in a row. With the “no change” election (Democrats still control the Senate, Republicans the House), investors remain uncertain about Washington’s ability to deal with the “fiscal cliff”: the $607 billion in automatic tax hikes and government spending cuts which start in January unless lawmakers come to a deficit-cutting deal .

Before the election, the ISM Non-Manufacturing Index came in with a decline for October, but remained in expansion territory above 50. Thursday, the trade deficit for September was much smaller than expected, at $41.5 billion, with export growth nicely outpacing the gain for imports. The big positive surprise came Friday when the University of Michigan Consumer Sentiment Index rose to its highest level in more than five years and stocks avoided posting a third losing day.

For the week, the Dow ended down 2.1%, to 12815; the S&P 500 was down 2.4%, to1380; and the Nasdaq was down 2.6%, to 2905. 

Bonds were helped by the two-day stock swoon, but as equities recovered a bit on Friday, the buying interest in bonds subsided. The FNMA 3.5% bond we watch ended the week up a modest .05 to $106.22. National average mortgage rates continued to hover near their record lows of the past six weeks in Freddie Mac’s Primary Mortgage Market Survey. The Mortgage Bankers Association purchase loandemand index was up 1% for the week, to its highest level since June. 

DID YOU KNOW?… Monetary policy is the regulation of the money supply and interest rates by the Fed to control inflation and stabilize currency. By impacting the cost of money, the central bank can affect the amount of money spent by consumers and businesses.

>> This Week’s Forecast

RETAIL, INFLATON, MANUFACTURING… No economic reports on Veteran’s Day Monday, but then four days of key readings. October Retail Sales should show the consumer a lot quieter on the spending front. Inflation is expected to remain tame, with both wholesale PPI producer prices and CPI consumer prices well under control for October.Image

Colorado Home Sales

 

About Jeff Hansen, Realtor in Colorado

Search for homes here; www.jeffhansen.remax.com for FREE. Licensed Real Estate broker with RE/MAX Professionals at 10135 W. San Juan Way, Littleton, Colorado 80127. I have been a Realtor Since 1992 and provide Free Real Estate Advice Realtor in Littleton, Colorado and the Metro Denver Area, A Real Estate investment company focusing on the buyers and sellers of homes, also including fix and flips and rental properties, Listings and all sales of realty. (303)794-4530 Disclaimer I will not receive any compensation or take on any liability because of any conversation on this or any related web page w/o any written brokerage agreement. And there will be no relationship actual or implied because of any conversation on this or similar pages. No written agreement, therefore. AND Differ from state to state, so check your state's rules.
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