June 2011 Market Update The U.S. housing market continues its gradual and uneven progress, despite the expiration of the home buyer tax credit. The remarkable rebound in housing activities from the initial drop following the end of the home buyer tax credit this past July adds to the belief that the risk of a double-dip downturn in housing may be disappearing. As the housing market continues to work through the excess supply overhang, a result from the glut of foreclosed properties which is keeping home prices below their long-term trend growth, economists anticipate mortgage rates at or above 6% by the end of 2012 and expect buying activity to continue its upward momentum. Supporting this view is the rising concern about inflationary pressures sparked by political unrest in the Middle East. While surging gas and food prices could prove transitory and pose no major threats, these price increases may weigh down consumer spending, which accounts for two thirds of the economy. While, the Federal Reserve is committed to making necessary policy changes to address such risks. Meanwhile, core price gains, excluding food and fuel, were modest in April, offering some relief to consumers. As the economy improves, stimulus efforts by the government and the Fed is expected to gradually wind down, which typically spurs rising interest rates to keep inflation in check. Meanwhile, buyers continue to benefit from historically favorable buying conditions and sellers are encouraged by increased market stability. Home Sales in millions The number of homes home sales in April were down 12.9% compared to the same time last year when the impact of the tax credit was at its peak. Sales were relatively stable compared to the previous month: less than a 1% decline. NAR Chief Economist Lawrence Yun states that “given great affordability conditions and job creation, home sales should be stronger” and cites unnecessarily tight credit for limiting sales. Gradual but uneven improvement is expected to continue. In fact, home sales have increased six of the past nine months. Home Price in thousands Home prices rebounded 2.4% in April with median home prices rising to $163,700. This is 5% below the year-ago level and continues to keep the median price close to 2002 levels. Three out of eight homes sold during April, or 37% of sales, were distressed properties, which typically sell at a 10%–20% discount. This is down 3% from March. Investors represented 20% of sales, and all-cash buyers were 31% of sales in April, down from a record high of 35% in March. Prices and mortgage rates remain favorable for buyers for the spring selling season. Inventory- Month's Supply in months The supply of homes measured in months on the market, if sales continue at their current pace, inched up during April compared to March. Inventory levels remained 26% below the peak of 12.5 months in July and only 11% above April of 2010 when the tax credit was in full swing. Source: National Association of Realtors Interest Rates Rates have reached a new record low after steadily declining throughout May, primarily due to uncertainty in the global and domestic economies. Rates are still expected to follow an upward trend as the year progresses. As overall economic activity gets back on track, rates will likely rise to keep inflation in check. This window of opportunity for buyers to lock in these historically low interest rates may not remain open much longer. This Month's Video Topics For Home Owners, Buyers & Sellers Following in the footsteps of its counterpart Fannie Mae, Freddie Mac is offering a summer sales promotion for buyers who purchase a home from its inventory of foreclosures or HomeSteps properties. Since banks typically sell foreclosures “as-is” without incentives, warranties, or repairs, this incentive could help buyers view a HomePath property more like a traditional sale, and less like a distressed property, during their search process. For offers received by July 31 that close by September 30, Freddie Mac is offering: 3.5% in closing costs to buyers $1,200 bonus to buyer agents This is on top of the incentives already being offered: A two year HomeProtect Home Warranty Up to 30% savings on new appliances Note that this program comes with a few eligibility requirements, which includes the home must be a single-family, owner-occupied, financed dwelling used solely for residential purposes.

Realogy posts $237 million Q1 loss

Just released by Inman News:

Realogy posts $237 million Q1 loss

Debt expenses outweigh improved operating income

BY INMAN NEWS, WEDNESDAY, MAY 4, 2011.

Inman News™

Real estate brokerage and franchise giant Realogy Corp. reported a $237 million first-quarter loss today, as interest expenses on the company's massive debt outweighed improvements in operating income.

Realogy reported that excluding the costs of recent debt restructuring, its operating income -- earnings before interest, taxes, depreciation and amortization, or EBITDA -- rose 14 percent from a year ago, to $25 million.

The biggest components of Realogy's loss were interest expenses on its $7.3 billion debt (which totaled $179 million), followed by depreciation and amortization expenses of $46 million. Realogy reported that it took a $36 million loss on the early extinguishment of debt in its restructuring.

Revenue for the quarter was up 1 percent from a year ago, to $831 million.

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Most of that revenue came from 740 company-owned real estate brokerage offices, whose 43,000 sales agents generated $587 million in revenue, down 2 percent from a year ago.

Realogy's company-owned brokerages, which are operated by NRT under the Coldwell Banker, ERA, Corcoran Group and Sotheby's International Realty brand names, posted a cumulative $37 million loss for the quarter.

Real estate franchise services Realogy provides to independently owned franchisees and NRT brokerages generated considerably less revenue than the company-owned offices' operations -- $118 million -- but were Realogy's most profitable business segment, producing $62 million in earnings for the quarter.

The $118 million in revenue generated by franchise services includes $44 million in intercompany royalties and $45 million in marketing fees paid by company-owned real estate brokerages.

Realogy provides franchise services to independently owned brokerages, which operate nearly 14,000 offices with 217,000 agents worldwide under the Century 21, Coldwell Banker, ERA, Sotheby's International Realty, and Better Homes and Gardens Real Estate brand names.

Closed home sales among Realogy franchisees were down 4 percent from a year ago, to 184,643. The average home-sale price climbed 3 percent, to $193,710, and the average broker commission rate held steady at 2.54 percent per transaction side.

The royalties Realogy collects from its franchisees on each transaction side were down $1 from a year ago, to an average of $251, as the net effective royalty rate declined 17 basis points to 4.87 percent.

(The net effective royalty rate represents the average percentage of franchisees' commission revenues collected by Realogy, net of volume incentives achieved).

Company-owned real estate brokerages handled 51,200 transaction sides, down 3 percent from a year ago. Although the average home-sale price was down slightly, to $414,164, the average commission rate per side was up 2 basis points, to 2.5 percent, leaving gross commission income per side essentially unchanged from a year ago, at $11,188.

Revenue from relocation services was up 14 percent, to $87 million, and title and settlement services generated $83 million in revenue, up 28 percent from a year ago.

Both segments were profitable, with earnings from relocation services up 150 percent from a year ago, to $10 million, and title and settlement services generating $2 million in earnings compared to a $5 million loss a year ago.

In the relocation services segment, initiations were up 8 percent from a year ago, to 35,108, and referrals climbed 6 percent to 12,812.

The title and settlement services division saw business from refinancings climb 41 percent, to 16,826, more than offsetting a 5 percent decline in purchase title and closing units, to 18,971.

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WOW

Google drops real estate listings

Did you hear that Google to longer support real estate listings uploaded to its classifed listings site on Google Maps, the company announced today, quite the statement!

You as a consumers will no longer be able to find for-sale, foreclosure, or rental properties through the search function on Google Maps, and real estate professionals will no longer be able to upload their listings to Google Base, the company's classifieds site, which is being replaced by Google Shopping APIs and will not support real estate listings

What does this mean....Is Google up to something??

Hummmmmm makes you wonder..crouchman

New Home Sales Fall 33% in May to Record Low

New Home Sales Fall 33% in May to Record Low

By Tom Granahan
FOXBusiness

The U.S. housing market is in crisis.

A day after a disappointing read on the market for existing homes, the government said Wednesday that sales of new homes fell to their lowest level on record last month, a potentially crushing blow for an economy that is still looking for its footing.

The Commerce Department said new home sales fell by a stunning 32.7% in May, to a seasonally adjusted rate of 300,000. Sales were expected to be off sharply as a government program to prop up the market expired, but the results were far worse than even the most pessimistic outlooks.

Year-over-year, sales fell by 18.3%, and new –home sales in April were revised lower.

No part of the country was spared; new-home sales fell by 23.9% in the Midwest, sank 53.2% in the West, dropped 25.4% in the South, and fell 33.3% in the Northeast.

On Tuesday, the National Association of Realtors said existing home sales fell by 2.2%, in contrast to the 5% or so gain that was expected. The housing market is expected to weaken further now that the government’s home-buyer tax credit has expired. (To be eligible, would-be buyers must have signed a contract by April 30.) A weak jobs market

Earlier Wednesday, the Mortgage Bankers Association said mortgage applications filed in the U.S. fell by a seasonally adjusted 5.9% from the week before. Refinancings were lower by 7.3%, while purchase mortgages dropped 1.2%.

Applications filed to refi an existing mortgage fell to 73.8% of total applications from 74.8% the week before. Since the end of the home buyer tax credit contract deadline, the purchase index is off 39%

AZ R.E. Market as of May 2010

Monday Morning Mojo

For Monday, June 22^nd 2009

From the #1 Keller William’s Marker Center in Arizona

Ranked as the #1 Real Estate Company in Arizona

Mojo defined

1. A term used for Self-confidence, Self-assuredness.

2. The basis for belief in one’s self in a situation.

3. Charm to bolster confidence.

4. Ability to bounce back

_______________________

Do more than exist,

live

Do more than touch,

feel

Do more than look,

observe

Do more than read,

absorb

Do more than hear,

listen

Do more than think,

ponder

Do more than talk,

say something

John H. Rhoades

-------------------------------

“Monday Morning Mojo” Created & Compliments of P.R. ‘Randy’ Cooney

C.E.O. / Team Leader of Keller Williams Arizona Realty

Some of the above quotes and readings can be found by Subscribing to:

Bits & Pieces – www.motivateandinspire.com

or Readers Digest Magazine – www.ReadersDigest.com

or The Motivational Manager – www.managementresources.com

Contact Randy Cooney at 480-767-3002 or prcooney@kw.com

Thanks Randy.....So are you up and moving....if not you who!!!!!!! and if not now WHEN

Follow me on Twitter and face book at @Crouchman

May.......

Well.....today is another of Ty's baseball games, tons of things going on, I hope my talks with coach's and parents show up today in a positive manner.

Looks like the R.E. market is begging to click again with multiple offers showing up but this will only last a few more months until next wave of homes come on market.(Forclousers).....so its save save save and pay off debt pay off debt


Summer almost here Zach graduates from kinagraden to 1st which he is very excited about....

Our Fox TV show looks like a go on Sunday mornings and will be filming this month as well as radio show back on air later this month.....working with DDI is pretty cool he is an expert in his field and is teaching me a lot...