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Montgomery Real Estate Blog
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Displaying blog entries 1831-1840 of 1998
Government Bailout In Layman's Terms
3. Will the government be able to work with the troubled assets (loans) it buys enough to resell them at a profit, or will this "bail out" cost the taxpayer a bundle and be a drag on the economy for decades?
Mortgage Market in Review
Week of September 22, 2008 Volume 15, Issue 39
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Market Comment
Mortgage bond prices rose last week applying a slight downward pressure on mortgage rates. Trading in the financial markets remained in disarray. The Dow Jones index moved more than 400 points, both up and down, several times during the week. Rates fell sharply early in the week as traders fled stocks for the safety of bonds. This money flow reversed Thursday afternoon after rumors of a massive government intervention into the financial markets surfaced.
For the week, interest rates on government and conventional loans fell by about 1/8 of a discount point.
Durable goods orders and new home sales data will be the most important events this week. The mortgage interest rate market remains volatile as US Government officials strive to bring liquidity to the financial markets.
Looking Ahead
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Economic
Indicator
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Release
Date and Time
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Consensus
Estimate
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Analysis
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Existing Home Sales
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Wednesday, Sept. 24,
10:00 am, et
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Down 1.4%
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Low importance. An indication of mortgage credit demand. A significant decrease may lead to lower rates.
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Durable Goods Orders
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Thursday, Sept. 25,
8:30 am, et
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Down 1.3%
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Important. An indication of the demand for “big ticket” items. A larger than expected decrease may lead to lower rates.
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New Home Sales
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Thursday, Sept. 25,
10:00 am, et
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Up 0.5%
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Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
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Q2 GDP final revision
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Friday, Sept. 26,
8:30 am, et
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Up 3.4%
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Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
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U of Michigan Consumer Sentiment
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Friday, Sept. 26,
10:00 am, et
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None
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Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
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Durable Goods Orders Durable goods orders are generally believed to be a precursor of activity in the manufacturing sector because manufacturing must have an order before considering an increase in production. Conversely, a decrease in orders eventually causes production to be scaled back; otherwise the manufacturer accumulates inventories, which must be financed.
Unfortunately, durable goods orders data has many drawbacks. The first problem with the orders data is that they are extremely volatile. The volatility of the data usually is attributed to the civilian aircraft and defense components of the figure. For example, if Boeing has a big order for one of its jumbo jets, the civilian aircraft category can change by $3-4 billion. The same scenario is evident when an aircraft carrier is ordered, surges in the defense category result. Keep this in mind with the current economic environment. Many sectors of the economy continue to struggle, but defense spending remains robust.
Since the data is very volatile and difficult to forecast, there is quite often a huge disparity between the actual release and the initial projections. If the durable goods report is much stronger than expected, look for mortgage interest rates to push higher. If favorable, the data may help interest rates remain steady or even push lower.
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Montgomery Real Estate Podcast - Sept 2008
Montgomery Real Estate For Sale: 120 N Capital Pkwy
MLS 257860
Montgomery real Estate For Sale: 3124 Woodley Terrace
MLS 255546
Montgomery Real Estate: Prices Too Good To Be True
The practice of mixing pre-foreclosure properties with listings of for-sale properties by major listings sites like Yahoo Real Estate and Trulia is misleading to consumers and damages the credibility of the sites that allow it, according to a company that's in the business of supplying similar information itself.
Brad Geisen, founder and CEO of Foreclosures.com, singled out Yahoo Real Estate and Trulia -- which have partnerships with Foreclosure.com's rival, RealtyTrac -- as sites that are presenting pre-foreclosure data to consumers in a potentially confusing way.
Property searches conducted by Inman News show both sites provide information that could help consumers understand that the pre-foreclosure properties are not "listings," and that the dollar figures displayed with each are not asking prices. But there does appear to be potential for confusion.
Checking "foreclosures" under "listing type" and entering a maximum value of $100,000 in the "price" field, a Yahoo Real Estate search for properties in Hermosa Beach, Calif., turned up seven properties, accompanied by dollar figures ranging from $4,712 to $100,000. According to Yahoo, the median asking price for 34 homes on the market in Hermosa Beach is $1.29 million.
But click on any of the properties for more details, and you are given a "property description" that reveals -- for the first time -- that the dollar figures associated with each property in the search results is not the asking price. Although "price" was specified in the query, the numbers may represent "estimated loan balance" or another figure related to the borrower's indebtedness.
The moral of the story here is two-fold; first, be sure to always read the fine print and don’t trust everything you see on the Internet and, second, always consult with an experienced Realtor who can help you determine the legitimate value of a property and assist you in finding the home of your dreams.
If you are ready to learn more about Montgomery real estate, please call me at 732-775-2774 or visit HatTeam.com.
How To Sell Your Montgomery Home NOW!
Montgomery Home For Sale: 1122 Lawrence Street
Midtown Montgomery Real Estate Sales Statistics - July 2008
Existing-home sales rose from the first quarter in 13 states, largely from buyers responding to discounted home prices, according to the latest quarterly survey by the National Association of Realtors®. Nearly one-quarter of metropolitan areas showed rising home prices in the second quarter from a year ago, with greatly mixed conditions continuing around the country.
In Midtown Montgomery, pending sales decreased 18% in June 2008, compared against June 2007. Likewise, the number of sold listings dropped 21%. The average sales price decreased 9% to $131,446, and homes remained on the market for an average of 7 fewer days this June.
Midtown
Montgomery |
Pending
Sales |
Sold
Listings |
Average
Market Times |
Average
Sales Price |
July 2008
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38
|
37
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104
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$142,820
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July 2007
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72
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56
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133
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$149,412
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Montgomery Real Estate Podcast-August 2008
The Montgomery Real Estate Podcast
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Also read:
Montgomery Real Estate: Short Sale Tips
Montgomery AL Real Estate Podcast
Montgomery AL Real Estate Podcast
Displaying blog entries 1831-1840 of 1998