Existing Home Sales Climb To A 20-Month Record

According to the National Association of REALTORS®, the January 2012 Existing Home Sales showed 4.57 million units sold last month on a seasonally-adjusted, annualized basis -- a 4 percent increase as compared to December's revised figures.

An "existing home" is one that's been previously occupied and cannot be categorized as new construction.

Beyond the headline numbers, though, there was plenty about which for today's New York City home sellers to get excited. Demand for homes remains strong, foreshadowing higher home prices through 2012.
First, the national housing stock is at a 5-year low.

In January, the number of homes for sale nationwide slipped to 2.31 million, the smallest home inventory since February 2007, and a 21% decrease from just one year ago.

Falling home supply amid constant home demand leads home prices higher. At the current pace of sales, today's complete home inventory would "sell out" in 6.1 months.

Analysts say that a 6-month supply is a market in balance. Anything less is Bull Market territory.

Second, the National Association of REALTORS® says that one-third of all homes under contract "failed" last month. This means that many more buyers tried to buy, but couldn't for a number of reasons including mortgage denials; or, insurmountable home inspections issues; or, homes appraising for less than the contract price.
As contract failures subside, Existing Home Sales are expected to rise even faster.

And, lastly, first-time buyers continue to power the home resale market. In January, 33% of all sales were made to first-time buyers, up four points from last year. This statistic suggests that renters are moving into homeownership, an important component in a sustained housing market recovery.

Given high demand and shrinking supply, we should expect for Queens home prices to move upward in the future months. Thankfully, mortgage rates remain near all-time lows. Their are still good deals to be made. Don't wait, go get them.

Till next time

The New York Real Estate Nurse

Revamped HARP : Unlimited Loan-to-Value And Same Great Rates

Where is all the help for all the People?  For the People, by the Government, by the People. Right.

The government's new, revamped HARP program is 6 weeks from release. Homeowners in New York and nationwide are gearing up to refinance.

HARP is an acronym. It stands for Home Affordable Refinance Program. HARP is the government's loan product for "underwater homeowners". HARP makes current mortgage rates available to households which would otherwise be unable to refinance because the home lacks equity.

This is a big deal -- especially today. Mortgage rates are at an all-time low and millions of U.S. homeowners have been unable to take advantage. HARP aims to change that.

HARP originally launched in 2009. Its first iteration failed to reach a meaningful percentage of U.S. homeowners, however, because costs were high and loans were high-risk. With its re-release, the government has removed the hurdles to HARP, putting refinancing within reach for millions of U.S. households.

To qualify for HARP, homeowners must first meet 3 qualifying criteria.

First, their current mortgage must be backed Fannie Mae or Freddie Mac. FHA- and VA-backed loans are HARP-ineligible, as are jumbo loans and loans backed by portfolio lenders.

• To check if your loan if Fannie Mae-backed, click here.
• To check if your loan if Freddie Mac-backed, click here.

Second, the existing mortgage must have been securitized by Fannie Mae or Freddie Mac prior on, or before, May 31, 2009. If you bought your home or refinanced it after that date, you are HARP-ineligible.
There are no exceptions to this rule.

And, third, the existing mortgage must be accompanied by a strong repayment history. Mortgage payment must have been paid on-time for the last 6 months, at least, and there may not be more than one 30-day late payment in the last 12 months.

If these 3 qualifiers are met, HARP applicants should find the approval process straight-forward :

• Fixed rate mortgages allow unlimited loan-to-value
• The standard 7-year "waiting period" after a foreclosure is waived in full
• Except in rare cases, home appraisals aren't required 

Furthermore, HARP mortgage rates are expected to be on par with non-HARP rates, meaning that HARP homeowners in Queens will get the same rates and pay the same fees as everyone else. There's no "penalty" for using HARP.

The revamped HARP is expected to be generally available beginning Monday, March 19, 2012.
To get a head-start on HARP, check with your loan officer for the complete list of HARP eligibility requirements.

That's it, in a HOME SHELL. If you don't like it? Call Mr. Obama at Washington D.C. I don't have his phone number. You may want to reach out to your local Congressman. Just remember we the people bailed out Freddie and Fannie. That means us all.  Why can't more people get relief? Just saying.

Till next time

The New York Real Estate Nurse

Lock An Instant 13% Savings On Your Monthly Mortgage Payment

How low can Mortgage Rates go? Good question. With our ripening economy, the trends are forming a better outlook. Will Mr. Bernanke step in and buy Mortgage Backed Bonds? That's the real question!!! (?)

Rates are at all time lows. Help from the Fed will push them lower. If your a Buyer, lock your loan rate now.
Protect your Mortgage Payment.

Falling mortgage rates make owning a home more affordable. Mortgage rates are directly tied to monthly mortgage payment so as mortgage rates drop, so does the cost of home-ownership.

It's a money-saving time to buy a home in Queens, Manhattan and all across New York -- or to refinance one. Mortgage rates have never been this low in history.

According to Freddie Mac, last week, the average 30-year fixed rate mortgage fell to 3.87% nationwide for borrowers willing to pay an accompanying 0.8 discount points plus closing costs. 0.8 discount points is a one-time closing cost equal to 0.8 percent of your loan size, or $800 per $100,000 borrowed.

This represents an incredible value as compared to February of last year.

It was exactly one year ago that mortgage rates begin their long slide lower. On February 11, 2011, the 30-year fixed rate mortgage reached its peak for the year, reading 5.05% in Freddie Mac's nationwide survey. If you are among the many U.S. households that bought or refinanced a home around that time, you could choose to replace your current home loan with a new one and save close to 13% on your monthly mortgage payment.

13 percent saved on your mortgage is a noteworthy statistic.
Look at this 30-year fixed rate mortgage payment comparison over the last 12 months :

• February 2011 : $539.88 principal + interest per $100,000 borrowed
• February 2012 : $469.95 principal + interest per $100,000 borrowed

Because of falling mortgage rates, a homeowner with a $250,000 30-year fixed rate mortgage would save at least $175 per month just by refinancing into a new loan at today's mortgage rates. That's $2,100 in savings per year.

Even after accounting for discount points and closing costs, the "break-even point" on a mortgage like that can come relatively quickly.

We can't predict mortgage rates so there's no promise rates will stay like this forever. If you're planning to buy a home or refinance one, the best way to keep your monthly payments down is to lock your rate while rates are still low.

The market looks ripe for that now. Any Fed help will make it more affordable.

Till next time

The New York Real Estate Nurse

PROMOTE YOUR LISTING, REALTOR AT WORK.

FOR SALE 34-41 85 St.

Jackson Heights,  NY  11372 3200

$209,000

Co-Op			Rooms:	4.5
Unit#:	4N	Att	Bedrooms:	1
Develop: Carlton House.			Baths Full:	1
Cross St: 34 Ave			Baths Half:	0
Model: Carlton House			Baths Total:	1
Sec/Area: Hist. District			LSC:	NEW

ML#:	2464706	Owner:		Exit Realty Central  718-848-5900

Approx Year Built:	1947
New Const:	N  Und
Garage:	Und
Parking Spaces:	Parking:  Y
Parking Charges:	$100
Basement:	Full   Finished:
Taxes:	$0
Village Taxes:	$0
Total Taxes:	$0
Common Charges:
Maintenance:	$771.91
Deductable%:
Heating:
Management:	Incl
Insurance:	Incl
Sewer:	Incl
Electric:	Fee
Reserve:
Fees:
Other Fees:
Smoking:	Y
Pets:	N
Doorman:	Y

Construction:	Brick
Appearance:	Excellent
Kitchen Type:	Eff
Dining Room:	Other
W/W Carpet:	N
Wood Floors:	Y
Stove:	Y
Refrigerator:	Y
Washer:	N
Dryer:	N
Dishwasher:	Y
A/C:	2 #Zns:
# Fireplaces:	0
Fuel:	Gas
Heat:	Steam
Cable:	Y
Patio/Terrace:	N
Pool:	N
Tennis Court:	N
Adult Com:	N
Minimum Age:
Gated Property:

School District:	30
Community District 30
Waterfront:	N
Waterview:	N
Waterfront Desc:
Bulkhead:
Docking Rights:
Beach Rights:
#Floors In Building:	6
#Floors In Unit:	1
Unit On Floor#:	4
Elevator:	Y
Section:
Lot:
Block:
District:
Building:
Tax Unit#:
Approx Int SqFt:	832
Also For Rent:	N   Price:
Bylaws Attached:
Front Exposure:

1st Floor:	Foyer, Sunken Lr, Eff Kit With Dr, Full Bath, Lg Bedroom	MBR 1st Floor:	Y
2nd Floor:
Aux Rms:	Laundry
Amenities:	P/T Doorman, Garden

Handicap Access:	Y Basement Side Entrance, Ramp To Elevator	Supersedes ML#:

Finance Restrictions:	80% Financing	Pres Board/Man Agt:
Owner Financing:	N	Pres Board/Man Agt#:
Max Fincance%:	80	Flip Tax:

Remarks:	Sale May Be Subject To Term & Conditions Of An Offering Plan. Offers To Be Presented With Pre-Approval,Credit. 24Hr. Notice To Show. 20% Down Required.
Directions:	Located On Eastside Of 85th St Between 34th And 35th Ave. In Historic Distrct Of Jackson Heights.

Property Description:	The Largest 1Br Unit Available, Corner Unit. Spacious With Lg Windows Looking Out East Over Beautiful Historic Jackson Heights. You Get P/T Doorman,Fee Laundry,Fee Parking, Gardens To Plant. Conv. To Planes,Trains & Hywys. Numerous Neighborhood Shops,Restaurants,Houses Of Worship. Fun Place To Live.

Personal Property Exclusion:	None

Broker Open House Date:		Time:
Note:
Consumer Open House Date:		Time:
Note:

Listing Date:	2/1/2012	Listing Agent:	Ritchie, Robert 718-848-5900			Buyer Exclusions:	N
Exp Date:	7/31/2012	Co-List Agent:				Owner Financing:	N
Occupancy:	Vot	Status/Show#:	917-922-7781	Negotiate Direct:	N	Seller Agency Comp:	0
Original $:	$209,000	Code/Branch:	JORO 01	Short Sale:	N	Buyer Agency Comp:	9
Prior Listing $:		LockBox:	N	REO:	N	Broker Agency Comp:	9
						Renting Broker Comp:
Show Instr:	Call L/A 917-922-7781					Listing Broker Comp (For Rental):

THIS IS A REAL LISTING AND ITS FOR SALE. YOU CAN PURCHASE IT. JUST CALL THE LISTING AGENT. SEE THE NAME ABOVE?

Till next time

The New York Real Estate Nurse

Pending Home Sales Index Posts Second Best Month Since April 2010

After 3 consecutive months of growth, the housing market appears to have eased a bit in December. The trend remains flat over a longer period of time. We are undulating.

According to the National Association of REALTORS®, December's Pending Home Sales Index slipped 4 percent from the month prior. The index measures the number of homes under contract to sell nationwide, but not yet sold.

Despite falling below its benchmark "100 value", December's Pending Home Sales Index is the reading's second-highest value since April 2010 -- the last month of last year's home buyer tax credit program.

In other words, the housing market continues to show signs of improvement, propelled by low home prices and the cheapest mortgage rates of all-time.

Freddie Mac's mortgage rate survey put the 30-year fixed rate mortgage at an average of 3.96% in December -- a 75-basis point improvement from December 2010. This helps to make homes more affordable nationwide.

On a regional basis, December's Pending Home Sales Index varied :

• Northeast Region: -3.1 percent from November 2011
• Midwest Region : +4.0 percent from November 2011 
• South Region : -2.6 percent from November 2011
• West Region : -11.0 percent from November 2011

But even regional data is only so helpful. Like everything in real estate, data must be local to be relevant.

Throughout the West Region, for example, the U.S. region in which pending home sales fell the most, several states must have performed better than the regional average. And, undoubtedly, there were cities, towns, and neighborhoods that experienced marked market growth.

Unfortunately, the Pending Home Sales Index can't capture that data. Nor can it identify the markets in which home sales suffered. Let's wait for Case / Schiller to bring out the November score.

For today's Queens home buyers and sellers, therefore, it's important to understand your local market and the drivers of local activity. Reports like the Pending Home Sales Index can paint a broad picture U.S. housing but for data that matters to you, you'll want to look local.

For local real estate data, talk to an experienced real estate professional, like myself.

Till next time

The New York Real Estate Nurse

Foreclosure Filings Fall To 49-Month Low

Their are approximately 50 million mortgages. 10 million owe more than what their home is worth. Another 1.5 million mortgages are foreclosed. And not to complicate matters more, their are 2 million mortgages that have not been paid in the last 90 days. This is and will be compiled to the Shadow Inventory. The price killer we all fear.

Foreclosure filings are fewer these days, according to foreclosure-tracking firm RealtyTrac. Due to Robo-Signing difficulties, these numbers are skewed. We have to wait and see how things work out. The states have to work through litigation, law suits, and all things legal.

In December 2011, the number of foreclosure filings nationwide fell 9 percent from the month prior. Not since November 2007 has foreclosure activity been this sparse across the country.

Last month's foreclosure filings were down 20 percent from December 2010 with "foreclosure filing” defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession. As a result of a unexpectedly strong year-end, 2011's annual foreclosure rate was the lowest in 4 years.

One reason why the year may have closed so strongly is that Nevada, California, Michigan and Arizona -- four states typically associated with high rates of foreclosures -- each posted big drops in foreclosure filings between November and December, plus double-digit drops between December 2010 and December 2011.
 
In fact, among the country's top 10 states for foreclosure activity, nine showed an annual foreclosure filing reduction. Only Delaware worsened.

It’s also noteworthy that just 4 states accounted for half of last month's total foreclosure filings.

• California : 25.8 percent of all foreclosure filings
• Florida : 12.0 percent of all foreclosure filings
• Michigan : 6.4 percent of all foreclosure filings
• Illinois : 6.2 percent of all foreclosure filings

Foreclosures are heavily concentrated, in other words. By contrast, the last 1% of activity is spread across 14 states.

As a new york city home buyer -- first-timer or investor -- foreclosures can be a great way to find value.

According to the National Association of REALTORS®, distressed homes typically sell at "deep discounts" as compared to like, non-distressed homes. However, when you buy a foreclosure home from a bank, it's different from buying a home from a "person". Purchase contract negotiations are different and months may pass before your closing is approved.

If you're buying foreclosure, therefore, seek the help of a professional real estate agent. Real estate agents have experience working in the process-heavy world of foreclosures and can help you come out ahead.

BUYER BEWARE. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! THAT'S ALL I CAN SAY !!!!

Till next time

The New York Real Estate Nurse

Will Home Values Rise This Year?

Noooooooooooooooooo!!! Home sales based on median price will show a decline in 2012. This will be the national trend, there will be a location here and there that will see upside off their lows.

ALL MARKETS HAVE THE OPPORTUNITY TO COME OFF THEIR LOWS.

My crystal ball tells me their are to many headwinds in the countries macroeconomics to boost prices. Their are to many distressed properties on the market that nobody wants. When they are bought they will bring down comparable's with them.  The looming shadow inventory will have to be released at some point. Absorption of the units will take time.

Without the help of  government intervention, and the private sector having little incentive to get involved, at best we will see housing numbers remain the same this year. Still a good time to buy.

Will your home gain value over the next 12 months? Nobody can know for sure, but should recent housing trends continue undulating along the bottom, prices will be flat.

The housing economy has suffered since 2007, knocking home values down nearly 20% nationwide. And while some areas have fared better as compared to others but, in general, home values are down.

Mortgage rates are down, too, and that's good news for buyers in New York. The combination of low rates and low prices has led home affordability to an all-time high. As you'll hear in this 4-minute interview with NBC's The Today Show, carrying a mortgage costs 25% less per month as compared to just 3 years ago.

Some other notes from the interview include :

• There are more buyers out looking for homes today, which leads to more sales
• The housing market is expected to get gradually better, month-by-month, in 2012
• Foreclosures will continue to be a big part of the housing market

With housing supplies shrinking, buyers throughout New York may find their best "deals" today -- before the Spring Buying Season begins in February.

However, we can't forget that housing markets are local -- not national. Each town and neighborhood has its own market drivers and prices where you live may have already started to climb.

For accurate, up-to-date data on the housing market, talk with a local real estate agent.

My phone is ringing of the hook. Anybody remember those old phones?

Till next time

The New York Real Estate Nurse