This Week in Real Estate: June 29, 2015

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Good Morning!

The headliner This Week in Real Estate were the strong sales numbers reported in May for both new and existing homes. We are definitely in the middle of the strongest selling season we have experienced in the past six or seven years. Below are a few of the highlights from the final full week of June that influence our business:

* Sales of Existing U.S. Homes Reach Their Highest Level Since 2009. More first-time homebuyers took the plunge in May, helping catapult U.S. sales of previously owned properties to their highest level since 2009. Closings on existing houses rose 5.1 percent to a 5.35 million annualized rate. First-time buyers accounted for 32 percent of purchases during the month, matching the highest share since September 2012. Excluding November 2009, when demand was bolstered by the expiration of a federal government first-time homebuyer tax credit, sales last month were the strongest in more than eight years. Full story… http://www.bloomberg.com/news/articles/2015-06-22/sales-of-existing-u-s-homes-rose-in-may-to-highest-since-2009

* Sales of New U.S. Homes Rise to Highest Level in Seven Years. Purchase of new homes in the U.S. rose in May to the highest level in seven years, signaling the industry is gaining momentum heading toward the second half of the year. Sales climbed 2.2 percent to a 546,000 annualized pace, exceeding all forecasts in a Bloomberg survey of economists and the most since February 2008, Commerce Department data showed Tuesday in Washington. May 2015 sales were an astounding 19.5 percent higher than in May 2014. While housing starts declined 11.1 percent in May to a 1.04 million annualized rate, that followed a revised 1.17 million pace in April to cap the best back-to-back readings since late 2007. Permits for future projects rose to the highest level in almost eight years. Full story… http://www.bloomberg.com/news/articles/2015-06-23/sales-of-new-u-s-homes-increase-to-highest-level-in-seven-years

* OCC: Mortgage Performance Better in 1Q15. The performance of first-lien mortgages serviced by eight national banks improved during the first quarter of 2015, according to the Office of the Comptroller of the Currency’s quarterly report on mortgage performance. The OCC Mortgage Metrics Report, First Quarter 2015, showed 94.2% of mortgages included in this report were current and performing at the end of the quarter, compared with 93.1% a year earlier. The percentage of mortgages that were 30 to 59 days past due was 1.9% of the portfolio, a 7.0% decrease from a year earlier. Seriously delinquent mortgages made up 2.6% of the portfolio, a 16.4% decrease from a year earlier.
Full story… http://www.housingwire.com/articles/34312-occ-mortgage-performance-better-in-1q15

* FNC Index: April Prices Post Largest Seasonal Gain Since 2005. The latest FNC Residential Price Index (RPI) shows U.S. home prices climbed rapidly since March, as strong sales and limited inventory relative to demand continue to be the key narratives highlighting the spring housing market countrywide. April’s gain marks the largest March-to-April increase since spring 2005. Full story… http://www.fncresidentialpriceindex.com/ViewFile.aspx?ref=pr_95

Have a productive week!

Jason


This Week in Real Estate: June 22, 2015

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Good Morning!

From a practitioner’s standpoint the best news This Week in Real Estate is the CFPB’s proposal to delay the effective date of TRID to October 1. There continues to be a lot of positive momentum as we move through our peak selling season. Below are a few of the highlights from the third week of June that influence our business:

* Builder Confidence Hits Yearly High in June. Builder confidence in the market for newly built, single family homes in June rose five points to a level of 59 on the NAHB/Wells Fargo Housing Market Index (HMI) released Monday. This is the highest reading since September 2014. Two of the HMI’s component indices reached the highest levels in nearly a decade. “The HMI indices measuring current and future sales expectations are at their highest levels since the last quarter of 2005, indicating a growing optimism among builders that housing will continue to strengthen in the months ahead,” said NAHB Chief Economist David Crowe.  Full story… http://nahbnow.com/2015/06/builder-confidence-hits-yearly-high-in-june/?utm_source=newsletter&utm_medium=email&utm_campaign=mmb0615

* Aggregate Market Value of Housing Nearing 4th Quarter 2006 Peak. The aggregate market value of owner-occupied housing hit its high point in the last part of 2006, reaching a high-water mark of $22.5 trillion. Aggregate market value fell from that point until the fourth quarter of 2011, when it reached $16.1 trillion. Homeowner equity fell by $6.2 trillion to just 40% of aggregate value, as home values declined at the same time the amount of outstanding mortgage debt barely changed. By first quarter of 2015, the total market value of housing recovered to $21.1 trillion, 6% below the peak valuation. Full story… http://www.housingwire.com/articles/34245-aggregate-market-value-of-housing-nearing-4q06-peak

* CFPB Proposes to Delay TRID Date to October 1. The Consumer Financial Protection Bureau announced on Wednesday a proposal to delay the effective date of the TILA-RESPA Integrated Disclosure (TRID) rule until October 1. It was originally set to go into effect on August 1. These new forms consolidate the TILA-RESPA forms and are meant to give consumers more time to review the total costs of their mortgage. The Loan Estimate is due to consumers three days after they apply for a loan, and the Closing Disclosure is due to them three days before closing. The public will have an opportunity to comment on this proposal and a final decision is expected shortly thereafter.
Full story… http://www.housingwire.com/articles/34226-cfpb-moves-trid-effective-date-to-oct-1

Have a productive week!

Jason

 

 


This Week in Real Estate: May 11, 2015

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Happy Mother’s Day!

This Week in Real Estate rental rates continue to climb making buying more attractive. Will the April jobs report answer the question of when the Feds will increase interest rates: June or September? ​Below are a few of the highlights from the first full week of May that influence our business:

* ​​More Consumers Positive on Housing, But Not Quite Ready to Leave the Sidelines. The spring and summer home buying season has gotten off to a stronger start, reflected in some of the improvement in consumer housing sentiment,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. The share of consumers who intend to own rather than rent their next home rebounded after a two-month slide. Meanwhile, home price growth expectations strengthened to the strongest pace since last October. “sWhen we consider both the continued caution of consumers and the positive start to the year, we believe that these results support our expectations that 2015 will be a year of modest growth in housing activity,” Duncan said. Full story… http://www.fanniemae.com/portal/about-us/media/corporate-news/2015/6248.html

* 4 Percent of All U.S. Single Family Home Sales in First Quarter Were Flips. According to RealtyTrac’s Q1 2015 U.S. Home Flipping Report, 17,309 single family homes were flipped – sold as part of an arms-length sale for the second time within a 12-month period – in the first quarter, 4.0 percent of all single family home sales during the quarter. The average gross profit for completed flips in the first quarter was $72,450, up from $65,290 in the previous quarter and up from $61,684 in the first quarter of 2014 to the highest level going back to the first quarter of 2011, the earliest where data is available. “The strong returns for home flippers in the first quarter demonstrates that there is still a need in this recovering real estate market for move-in ready homes rehabbed to more modern tastes, particularly given the dearth of new homes being built,” said Daren Blomquist, vice president at RealtyTrac. The challenge for flippers in 2015 will be finding inventory to flip. Full story… http://www.realtytrac.com/news/real-estate-investing/q1-2015-u-s-home-flipping-report/​

* The Cost of Renting vs. Buying? If you are renting and think you can’t afford a home… THINK AGAIN! Renting will cost you 30.1% of your income compared to buying a median home at 15.3% of your income. Full story… http://www.keepingcurrentmatters.com/2015/05/08/do-you-know-the-cost-of-renting-vs-buying-infographic/

* April Jobs Report Comes in Below Expectations. Employers added 223,000 jobs in April according to the Bureau of Labor Statistics, below consensus expectations of 228,000. This pushed the three month average below replacement levels, and based on Federal Reserve comments before, means employment probably won’t be pulling forward expectations for a rate hike. “The strengthening in overall hiring is in line with our forecast for a moderate rebound in economic activity, though not quite the bounce-back we saw a year ago, as the economy is facing more than just transitory headwinds. With today’s report, we are comfortable with our call for a September liftoff in the fed funds rate.” Full story…
http://www.housingwire.com/articles/33829-april-jobs-report-comes-in-below-expectations

* Housing Regulator Extends Mortgage Modification Programs Through 2016. The director of the Federal Housing Finance Agency, which regulates mortgage-finance companies Fannie Mae and Freddie Mac said that the companies would extend for another year the deadline to participate in a pair of programs meant to help struggling borrowers. Fannie and Freddie had been set to stop allowing modifications under the programs at the end of the year, but both will participate in the Home Affordable Modification Program (HAMP) and Home Affordable Refinance Program (HARP) through December 2016. FHFA Director Melvin Watt said that the FHFA wouldn’t extend Fannie’s and Freddie’s participation in HAMP again, and that he didn’t expect for there to be another extension of HARP after 2016. Full story…
http://blogs.wsj.com/developments/2015/05/08/housing-regulator-extends-mortgage-modification-programs-through-2016/?mod=WSJ_Real+Estate_BLOGSDEVELOPMENTSFEED&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fdevelopments%2Ffeed+%28WSJ.com%3A+Developments+Blog%29

Have a productive week!

Jason


The Berkshire Hathaway HomeServices Northwest Real Estate companies in Portland and Seattle merge, creating a regional powerhouse

We couldn’t be more pleased to announce our merger with our Berkshire Hathaway HomeServices sister-company to the north!

Jason Waugh

Jason Waugh, President & CEO

Portland’s CEO, Jason Waugh, has assumed the role of president and CEO of the combined companies, and Mike Gain, CEO of the Seattle group, has been named Chairman Emeritus. He will play an integral role in our company’s focus on acquisition and expansion strategies and opportunities in the Pacific Northwest.

The merger brings us to over 725 real estate professionals serving residential and commercial clients in the Seattle and Portland metropolitan areas, as well as Central Oregon, the Yamhill County wine region and Oregon’s coastal communities.

“This merger creates a regional powerhouse within the Pacific Northwest,” says Waugh. “We are combining two organization, each with immensely talented agents, sales managers and employees and a shared commitment to delivering an exceptional real estate experience into a company that will be unmatched in our ability to serve the real estate needs of new and existing clients.”

If you are interested in joining our company, click here to learn how we help our brokers build careers with a foundation of exceptional service. Email careers@bhhsnw.com for a confidential meeting or to learn more.


Prudential Northwest Properties Recognizes Top Real Estate Brokers and Wins Gibraltar Circle Award

With great pride, we recognize our brokers for providing exemplary client service and achievement in 2012…

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Peggy Hoag, Prudential Northwest Properties’ 2012 Top Broker

“I’m very proud of our team,” says Jason Waugh, President and CEO of Prudential Northwest Properties. “The quality of our people and their commitment to their profession is what sets us apart in the marketplace. It’s an honor to acknowledge their success.”

The 2012 Top Broker award goes to The Peggy Hoag Group of the West Portland branch office. Peggy Hoag earned Prudential Real Estate’s Chairman’s Circle – Diamond status, ranking in the top one-half of one percent in the 47,000 member nationwide network. She also achieved PREA 100 status, ranking in the top 100 individuals or teams in the network.

See all of our award winners and read more here…


Prudential Northwest Properties Joins HomeServices of America

We’re thrilled to be the newest member of HomeServices of America, Inc., a Berkshire Hathaway affiliate. What does this mean for Prudential Northwest Properties? It means the best just got better!

By joining forces with HomeServices, we are unmatched in our ability to serve the needs of our real estate professionals and the thousands of home buyers and sellers that put their faith in us. Our name stays the same. Our leadership stays the same; and it’s a win-win for all involved. It’s a great day for Prudential Northwest Properties!

HomeServices of America family

To learn more about HomeServices, please visit their website at www.HomeServices.com.


Kudos to Jason Waugh, Forty Under 40 Award Winner!

Jason Waugh

Jason Waugh, Prudential Northwest Properties President & COO

Congratulations to Prudential Northwest Properties President Jason Waugh, a 2012 recipient of the Portland Business Journal’s Forty Under 40 Award!

Jason joins a short list of local business leaders under the age of 40 who are being recognized for their impressive accomplishments, community involvement and professional success. He will be honored at a special awards luncheon next month.

Jason, we’re very proud of you. Congratulations on this well-deserved honor.

Click here for the complete list of award winners.


©2016 BHH Affiliates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc. Equal Housing Opportunity.