According to what I read in this morning's paper, homes sales are up and people are starting to buy again. The number of signed contracts to purchase homes was up in November, which was the 4th increase in five months. This will give the housing market a boost in the first quarter of 2011. Economists are projecting home sales to gradually rise in this new year as more jobs are added and home prices stabilize.
www.CallNancyLamar.com for all your real estate needs.
Friday, December 31, 2010
Monday, December 20, 2010
Market Update for Week of December 20th, 2010
Review of Last Week
Investors sent stocks higher for the third straight week on Wall Street. The markets were not hot, as volumes were low, which is typical for this time of year, and investors remain guardedly optimistic, which has been their attitude since last month's elections. As happens so often, the week's festivities were driven by the economic headlines.
The consumer appears to be showing up for the holidays, as retail sales went up 0.8% in November, up 1.2% excluding autos. Including revisions to September and October numbers, overall sales were up 1.5% for the month. Retail is now UP 7.7% over a year ago, and sales are up at a 12% annual rate for the past five months! On the worrisome side, the November Producer Price Index (PPI) showed wholesale inflation up 0.8%, although the Consumer Price Index (CPI) rose 0.1%. Consumer prices are up 1.1% over a year ago, which is good, but wholesale prices are up 3.5% for the year, which isn't so good if you want to keep inflation in check and interest rates down.
The jobs recovery is key to the housing rebound, so it was good to see new unemployment claims falling again last week, to 420,000. This beat expectations and was the second lowest number this year for weekly claims, which have now fallen three times in the last four weeks. The Philadelphia Fed index showed manufacturing continues to grow in that region, as it was up nicely for December.
The consumer appears to be showing up for the holidays, as retail sales went up 0.8% in November, up 1.2% excluding autos. Including revisions to September and October numbers, overall sales were up 1.5% for the month. Retail is now UP 7.7% over a year ago, and sales are up at a 12% annual rate for the past five months! On the worrisome side, the November Producer Price Index (PPI) showed wholesale inflation up 0.8%, although the Consumer Price Index (CPI) rose 0.1%. Consumer prices are up 1.1% over a year ago, which is good, but wholesale prices are up 3.5% for the year, which isn't so good if you want to keep inflation in check and interest rates down.
The jobs recovery is key to the housing rebound, so it was good to see new unemployment claims falling again last week, to 420,000. This beat expectations and was the second lowest number this year for weekly claims, which have now fallen three times in the last four weeks. The Philadelphia Fed index showed manufacturing continues to grow in that region, as it was up nicely for December.
For the week, the Dow was UP 0.7%, to 11491.91; the S&P 500 was UP 0.3%, to 1243.91; and the Nasdaq was UP 0.2%, to 2642.97.
With investors feeling more upbeat about the economy, money flowed into stocks and out of the bonds that fund most mortgage loans. The FNMA 30-year 4.0% bond ended down 78 basis points for the week, closing at $98.22. This inched mortgage rates higher once again. Freddie Mac's weekly survey of conforming mortgages had the average 30-year fixed-rate mortgage rate up for the fifth week in a row. Rates are still historically low, but people looking to purchase or refinance should be aware that the low-rate party may soon be over.
With investors feeling more upbeat about the economy, money flowed into stocks and out of the bonds that fund most mortgage loans. The FNMA 30-year 4.0% bond ended down 78 basis points for the week, closing at $98.22. This inched mortgage rates higher once again. Freddie Mac's weekly survey of conforming mortgages had the average 30-year fixed-rate mortgage rate up for the fifth week in a row. Rates are still historically low, but people looking to purchase or refinance should be aware that the low-rate party may soon be over.
This Week’s Forecast
HOUSING, INFLATION AND THE OVERALL ECONOMY... This week we get to see how the economy is coming along in some key areas. We track the housing recovery with Wednesday's Existing Home Sales and Thursday's New Home Sales, both expected to be up a for November. Continuing the theme of a steady and slow recovery, the third estimate of GDP should show the overall economy growing at a 2.7% annual rate, up from the prior 2.5% estimate. It's slower than economists and everyone else would like to see, but growth nonetheless.
Thursday brings more inflation readings, with both Personal Spending and Core PCE Prices expected to remain under control. The final December reading on University of Michigan Consumer Sentiment may be up a small amount, while November Durable Goods Orders may be down a tad. The markets will be closed Friday.
Happy Holidays to you and yours during this joyous season! We really do have so much to be grateful for here in the USA.
Thursday brings more inflation readings, with both Personal Spending and Core PCE Prices expected to remain under control. The final December reading on University of Michigan Consumer Sentiment may be up a small amount, while November Durable Goods Orders may be down a tad. The markets will be closed Friday.
Happy Holidays to you and yours during this joyous season! We really do have so much to be grateful for here in the USA.
http://www.callnancylamar.com/ for all your real estate needs.
Monday, December 13, 2010
Market Update for Week of December 13th
There wasn't a lot of news impacting the housing market last week, but we did get news about the increase in mortgage rates. The average rate on a 30-year fixed-rate mortgage is back at the level it was last June. That still puts mortgage rates below where they were a year ago when everyone was happy to get in on those bargains. So none of this is bad news in the absolute sense but the trend should be noted. People who want to buy or refinance should not delay!
It was good to see new construction spending UP in October, now two months in a row, and the gain mostly came from a rise in residential construction. The U.S. Census Bureau put residential construction UP 2.4% in October to an annual rate of $240.3 billion. Though headed in the right direction, residential construction is still down 8% from a year ago.
The Dow moved less than 20 points five days in a row, then finished the week with a 40-point gain. With this kind of flat performance, observers feel the stock market is drifting, rather than surging, higher, yet higher it goes. The S&P 500 in fact ended the week at a two-year high, as investors clearly are feeling a little more upbeat about the economy.
http://www.callnancylamar.com/ for all your real estate needs!
It was good to see new construction spending UP in October, now two months in a row, and the gain mostly came from a rise in residential construction. The U.S. Census Bureau put residential construction UP 2.4% in October to an annual rate of $240.3 billion. Though headed in the right direction, residential construction is still down 8% from a year ago.
Review of Last Week
The Dow moved less than 20 points five days in a row, then finished the week with a 40-point gain. With this kind of flat performance, observers feel the stock market is drifting, rather than surging, higher, yet higher it goes. The S&P 500 in fact ended the week at a two-year high, as investors clearly are feeling a little more upbeat about the economy.
The centerpiece of the week for many on Wall Street was the tax compromise plan the President arrived at with Republican leaders. Some Congressional Democrats were not happy about the agreement, but investors believe a bill will be passed before January 1 that keeps lower tax rates in place for all taxpayers for the next two years. This is viewed by many as helpful to speeding up the recovery. An extension of unemployment benefits was tied into the deal, which will help those looking for work while the economy recovers.
Other hopeful signs included University of Michigan Consumer Sentiment doing better than expectations, showing people feel better about the economy as of early December. October exports rose to their highest levels in over two years, as the U.S. trade deficit surprisingly fell better than 13%. Exports to China grew almost 30%, narrowing our trade gap with that country by 8.3%. Additional positive news: the government sold its remaining stake in Citigroup; AIG said it would pay back the final $20 billion it owes the New York Fed; and GE announced it will increase its quarterly dividend by 17%.
For the week, the Dow was UP 0.2%, to 11410.32; the S&P 500 was UP 1.3%, to 1240.40; and the Nasdaq was UP 1.8%, to 2637.54.
Bonds got nailed most of the week as stocks edged up. The FNMA 30-year 4.0% bond we watch ended down 120 basis points for the week, closing at $99.00. Yields move opposite to prices, so they went higher and that inched mortgage rates up for another week. As reported above, national average rates for fixed-rate mortgages went north a little, which isn't horrible in itself, since rates are still at historically low levels.
This Week’s Forecast
There is another Fed meeting on Tuesday and no one expects the rate to move up, although the Fed's policy statement will be carefully read as usual. The central bank's economic views certainly bear watching, but there's lots more in store. Tuesday's Producer Price Index gives us wholesale inflation and Wednesday's Consumer Price Index measures the consumer version, and they're both expected to remain in check. Tuesday's Retail Sales numbers should show a continued, though modest, growth in consumer spending.
Manufacturing gauges are forecast to improve slightly, although the Philadelphia region is expected to decline. Most important to us, November Housing Starts and Building Permits will come in on Thursday and observers expect more activity from builders, although we're still not back to pre-downturn levels.
Manufacturing gauges are forecast to improve slightly, although the Philadelphia region is expected to decline. Most important to us, November Housing Starts and Building Permits will come in on Thursday and observers expect more activity from builders, although we're still not back to pre-downturn levels.
The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
http://www.callnancylamar.com/ for all your real estate needs!
Tuesday, December 7, 2010
Small Loans for Small Businesses in Anderson County SC
Anderson County may be getting into the banking business.
The Anderson county council’s finance committee showed support Friday for the creation of a county bank that would specialize in small loans for small businesses.
The loans would be specifically for the creation of small businesses in the county or for the maintenance of existing ones.
The county would borrow the bank’s start-up money from the U.S. Department of Agriculture’s Rural Development branch and would repay it over 30 years with a rate of 1 percent interest.
The loans offered out to county borrowers would be in the range of $5,000 to $30,000.
http://www.callnancylamar.com/ for all your real estate needs.
The Anderson county council’s finance committee showed support Friday for the creation of a county bank that would specialize in small loans for small businesses.
The loans would be specifically for the creation of small businesses in the county or for the maintenance of existing ones.
The county would borrow the bank’s start-up money from the U.S. Department of Agriculture’s Rural Development branch and would repay it over 30 years with a rate of 1 percent interest.
The loans offered out to county borrowers would be in the range of $5,000 to $30,000.
http://www.callnancylamar.com/ for all your real estate needs.
Monday, December 6, 2010
Market Update for Week of December 6th!
Last Thursday the National Association of Realtors (NAR) reported Pending Home Sales for October UP 10.4% over the month before. This index is a measure of executed purchase contracts. The NAR's chief economist commented, "It is welcoming to see a solid double-digit percentage gain, but activity needs to improve further to reach healthy, sustainable levels. The housing market clearly is in a recovery phase and will be uneven at times, but the improving job market and consequential boost to household formation will help the recovery process going into 2011."
Tuesday, the S&P/Case-Shiller home price index was down 0.8% in September for the 20 largest metro areas in the country. This was the third month in a row the index dipped, but national average home prices are still up 0.6% versus a year ago. Prices are also 3.2% above the May 2009 bottom and some analysts do not expect prices to go below that level.
Tuesday, the S&P/Case-Shiller home price index was down 0.8% in September for the 20 largest metro areas in the country. This was the third month in a row the index dipped, but national average home prices are still up 0.6% versus a year ago. Prices are also 3.2% above the May 2009 bottom and some analysts do not expect prices to go below that level.
Review of Last Week
BAD JOBS, GOOD WEEK... The week ended on a November Jobs report that delivered less-than-expected payroll gains and a slightly higher unemployment rate, but Wall Street basically shrugged it off. In fact, there was enough good economic news that investors sent all three stock market indexes UP solidly for the week.
Let's start with those disappointing employment numbers. Non-farm payrolls grew in November by 39,000, but the consensus expected 150,000. But September and October revisions added 38,000 jobs, taking the net gain to 77,000. Payrolls in the private sector were up 50,000, their eleventh straight monthly gain, and prior months' revisions added 6,000, for a net gain of 56,000. No one was happy to see the unemployment rate creep up to 9.8%, but with growing payrolls, more people are jumping back into an improving jobs market, so the workforce is growing. New weekly jobless claims also grew, but the four-week moving average dropped to its lowest level in over two years.
More obvious good economic news came in the form of the rising October Pending Home Sales figure reported above. Q3 Productivity was also UP 2.3% annually and UP 2.5% over last year. Both Chicago manufacturing and Consumer Confidence numbers were UP and the ISM Services index came in better than expected, as did same store retail sales. Even all the recent fears over European debt subsided, with the European Central Bank President suggesting more support for the region.
For the week, the Dow was UP 2.6%, to 11382.09; the S&P 500 was UP 3.0%, to 1224.71; and the Nasdaq was UP 2.2%, to 2591.46.
Even though bonds first benefited from the disappointing jobs report, prices eventually came under pressure from money flowing back into rallying stocks. The FNMA 30-year 4.0% bond we watch ended down 89 basis points for the week, closing at $100.20. National average rates for fixed-rate mortgages headed north a tad, according to Freddie Mac's survey of conforming mortgage rates. Rates are still at historically low levels, but wise buyers and refinancers shouldn't wait.
Let's start with those disappointing employment numbers. Non-farm payrolls grew in November by 39,000, but the consensus expected 150,000. But September and October revisions added 38,000 jobs, taking the net gain to 77,000. Payrolls in the private sector were up 50,000, their eleventh straight monthly gain, and prior months' revisions added 6,000, for a net gain of 56,000. No one was happy to see the unemployment rate creep up to 9.8%, but with growing payrolls, more people are jumping back into an improving jobs market, so the workforce is growing. New weekly jobless claims also grew, but the four-week moving average dropped to its lowest level in over two years.
More obvious good economic news came in the form of the rising October Pending Home Sales figure reported above. Q3 Productivity was also UP 2.3% annually and UP 2.5% over last year. Both Chicago manufacturing and Consumer Confidence numbers were UP and the ISM Services index came in better than expected, as did same store retail sales. Even all the recent fears over European debt subsided, with the European Central Bank President suggesting more support for the region.
For the week, the Dow was UP 2.6%, to 11382.09; the S&P 500 was UP 3.0%, to 1224.71; and the Nasdaq was UP 2.2%, to 2591.46.
Even though bonds first benefited from the disappointing jobs report, prices eventually came under pressure from money flowing back into rallying stocks. The FNMA 30-year 4.0% bond we watch ended down 89 basis points for the week, closing at $100.20. National average rates for fixed-rate mortgages headed north a tad, according to Freddie Mac's survey of conforming mortgage rates. Rates are still at historically low levels, but wise buyers and refinancers shouldn't wait.
This Week’s Forecast
TAKING A BREAK... After last week's busy schedule of economic news, we'll be taking a bit of a breather this week. The weekly Initial Unemployment Claims and Continuing Claims will continue to hold our interest and are expected to show a slowly strengthening jobs picture. Friday's October Trade Balance is forecast to hold steady. Right after that, we'll see a reading on the University of Michigan Consumer Sentiment Index, which is expected to keep tracking upward.
The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
CallNancyLamar.com for all your real estate needs!
Friday, November 26, 2010
Tree Lighting Program in Downtown Anderson, SC
The 13th Annual Tree Lighting will take place on Friday, December 3, 2010 at 6:00PM. This event is sponsored by the Main Street Program of Anderson with financial assistance from the City of Anderson and Anderson County . You are invited to participate in helping create a festive atmosphere for Downtown visitors as they gather in the spirit of the Christmas season.
The event kicks off with the lighting of the tree at the Anderson County Courthouse Plaza . The ceremony includes a musical performance by the T.L. Hanna Jazz Band, announcement of the Downtown Christmas Display Contest, and, of course, everyone’s favorite Christmas guest—Santa Claus! Santa’s reindeer will be resting up for Christmas Eve, but Santa will have a new way to tour Downtown that involves other animals with hooves. Visitors may wander in and out of shops, eat dinner at one of our downtown restaurants, see the many historic and artistic attractions, and Santa might just let you try out his new ride! This event is the prelude to the City of Anderson ’s Christmas Parade on Sunday, December 5, 2010 at 3:00PM.
We encourage all businesses and property owners to decorate their windows and buildings to participate in the Christmas Display Contest. Traveling trophies are awarded for categories of storefront and non-storefront displays. Judging will take place on Thursday, December 2. We also encourage business owners to extend their hours beginning at 6:00PM and to consider offering light refreshments and/ or specials.
Parking in the West Whitner Parking Garage will be FREE throughout the holiday season. Thank you for doing your part to “electrify” the holiday season and making Downtown Anderson “The Brightest Part of the Electric City .”
www.CallNancyLamar.com for all your real estate needs.
Tuesday, November 23, 2010
Market Update for Week of November 22, 2010
Market Update
The Commerce Department reported last Wednesday that Housing Starts were off 11.7% in October. This put them at a seasonally adjusted annual rate of 519,000, which was their lowest level in 18 months. But most of the fall off came from a 43.5% decline in multifamily construction, which is a volatile part of the market. Single-family building, accounting for more than 80% of all starts, was off just 1.1%, to 436,000 units. And September single-family starts were revised UP to a 2.1% gain. Meanwhile, Building Permits, which reflect builders' views of the future, were UP 0.5% to 550,000, another hopeful sign. Yeah!
National average mortgage rates edged up in both Freddie Mac and Mortgage Bankers Association (MBA) weekly reports. The MBA thought rates rose because of "stronger economic data and lingering uncertainty regarding the structure and impact of the Fed's QE2 program." This Fed plan to buy $600 billion in bonds in a second round of quantitative easing was supposed to push rates down, stimulating the economy by making borrowing more affordable. But some investors fear QE2 will spark inflation, which pushes mortgage bond prices down and mortgage rates up. Anyone looking to buy or refinance should probably not drag their feet waiting for lower rates that may never happen.
National average mortgage rates edged up in both Freddie Mac and Mortgage Bankers Association (MBA) weekly reports. The MBA thought rates rose because of "stronger economic data and lingering uncertainty regarding the structure and impact of the Fed's QE2 program." This Fed plan to buy $600 billion in bonds in a second round of quantitative easing was supposed to push rates down, stimulating the economy by making borrowing more affordable. But some investors fear QE2 will spark inflation, which pushes mortgage bond prices down and mortgage rates up. Anyone looking to buy or refinance should probably not drag their feet waiting for lower rates that may never happen.
Review of Last Week
it was FLAT... The week on Wall Street saw a big drop in stock prices Tuesday, followed by a big gain on Thursday, but when all was said and done, the week ended virtually flat for all three market indexes. This, however, was a big improvement over the prior week's big declines for all the indexes.
Negative influences on the proceedings included the drop in Housing Starts covered above, along with the unexpected rise in mortgage rates after the start of the Fed's bond buying program. But once you got past those items, you had to go overseas to find more downers, which were basically continuations of last week's concerns. Investors don't like Chinese inflation threatening a rise in interest rates over there, or the increasing possibility of a bailout for the Irish banks.
But back over here, we did have some good things going on. Retail sales were UP 1.2% in October, following a September gain that was upwardly revised to 0.7%. Could other positive economic surprises be on the way? Inflation came in tame, with the Consumer Price Index up just 0.2% for October and Core CPI up only 0.6% year-over-year, the smallest inflation increase in the index's history, dating back to 1957! Initial jobless claims held at under 450,000 for the second week in a row, still too high but showing that the labor market is better than it's been. The General Motors IPO gave back over $13 billion of the money taxpayers put in to prevent a GM bankruptcy.
For the week, the Dow was up just 0.1%, to 11203.55; the S&P 500 was flat, up only a fraction of a point, to 1199.73; and the Nasdaq was also flat, down a fraction of a point, to 2518.12.
The bond market had an up and down week of it, with prices under pressure on some issues at the end. The FNMA 30-year 4.0% bond we watch ended down 89 basis points for the week, closing at $101.17. This downward action in mortgage bond prices sent national average rates for fixed-rate mortgages up a little big for the week, as mentioned above.
Negative influences on the proceedings included the drop in Housing Starts covered above, along with the unexpected rise in mortgage rates after the start of the Fed's bond buying program. But once you got past those items, you had to go overseas to find more downers, which were basically continuations of last week's concerns. Investors don't like Chinese inflation threatening a rise in interest rates over there, or the increasing possibility of a bailout for the Irish banks.
But back over here, we did have some good things going on. Retail sales were UP 1.2% in October, following a September gain that was upwardly revised to 0.7%. Could other positive economic surprises be on the way? Inflation came in tame, with the Consumer Price Index up just 0.2% for October and Core CPI up only 0.6% year-over-year, the smallest inflation increase in the index's history, dating back to 1957! Initial jobless claims held at under 450,000 for the second week in a row, still too high but showing that the labor market is better than it's been. The General Motors IPO gave back over $13 billion of the money taxpayers put in to prevent a GM bankruptcy.
For the week, the Dow was up just 0.1%, to 11203.55; the S&P 500 was flat, up only a fraction of a point, to 1199.73; and the Nasdaq was also flat, down a fraction of a point, to 2518.12.
The bond market had an up and down week of it, with prices under pressure on some issues at the end. The FNMA 30-year 4.0% bond we watch ended down 89 basis points for the week, closing at $101.17. This downward action in mortgage bond prices sent national average rates for fixed-rate mortgages up a little big for the week, as mentioned above.
This Week’s Forecast
TWO PACKED DAYS... Thanksgiving shortens the week, so a slew of economic reports get packed into Tuesday and Wednesday. We start with Second Estimate Q3 GDP, expected to edge up from the preliminary reading. Existing Home Sales for October should show a slight drop in the annual rate. Also Tuesday, the Minutes of the FOMC meeting of the Fed on November 3, could give more insight into the economic recovery.
Wednesday kicks off with Core PCE Prices, expected to inch up a little, but still within the Fed's comfort zone for inflation. No need for them to curtail their QE2 bond-buying! Durable Goods Orders are forecast down a little for October, while Initial Unemployment Claims for the week should remain at their currently lower levels. Happily, New Home Sales for October are projected up some and let's hope the experts have that right.... Happy Thanksgiving!
Wednesday kicks off with Core PCE Prices, expected to inch up a little, but still within the Fed's comfort zone for inflation. No need for them to curtail their QE2 bond-buying! Durable Goods Orders are forecast down a little for October, while Initial Unemployment Claims for the week should remain at their currently lower levels. Happily, New Home Sales for October are projected up some and let's hope the experts have that right.... Happy Thanksgiving!
The Week’s Economic Indicator Calendar
Weaker than expected economic data usually send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Shop for Saving in Downtown Anderson
Please take a moment today to tell others that Saturday, November 27 is Small Business Saturday here in downtown Anderson.
When shoppers spend $25 or more, using a registered American Express Card, they will receive a $25 statement credit.
It's a wonderful way to bring customers downtown and to help them stretch their holiday shopping dollars.
What can merchants do to participate?
Email customers to alert them to this savings opportunity.
Customers must enroll at the American Express site https://enroll.amexnetwork.com/US/sbs/?extlink=em-open-2010sbs-open
* Double the savings. For example, for purchases of $100 or more merchants might add a $25 discount of their own.
* Get $100 of free Facebook ads, point of purchase materials and website ads at:
www.CallNancyLamar.com for all your real estate needs!
Thursday, November 18, 2010
New Jobs Coming to Anderson County
New Jobs Coming to Anderson County
Here in Anderson County, a company that specializes in propane grill cylinders will open a processing plant in Piedmont̢۪s Hurricane Creek Industrial Park and begin hiring for 24 jobs next spring.
Heritage Propane Express̢۪ plant near Interstate 85 will be a stopping point for empty cylinders, which will be washed, sandblasted and refurbished, then refilled. They will then be put on trucks to be delivered to retailers and distributors.
The company is a division of Heritage Propane and is affiliated with the Montana-based Energy Transfer Partners. Heritage Propane Express has operations in 37 states, but only about six processing plants like the one planned for Anderson County.
An Anderson County plant made good sense because of logistics.
and will serve the Southeast.
Its sister company, Heritage Propane, already has stores in Easley, Honea Path and Seneca.
Heritage Propane Express is the third company to commit to Anderson County in the last three weeks.
A green-energy company affiliated with Ace Environmental Inc. will make a $30 million investment to build two plants in Anderson County, and to lure it, the county is offering $10.2 million in federal-stimulus bonds. The company is expected to create 75 jobs.
Unitex USA, which makes safety straps, is opening a manufacturing plant also in Piedmont. That venture will create 40 jobs in the next five years.
http://www.callnancylamar.com/ for all your real estate needs.
Heritage Propane Express̢۪ plant near Interstate 85 will be a stopping point for empty cylinders, which will be washed, sandblasted and refurbished, then refilled. They will then be put on trucks to be delivered to retailers and distributors.
The company is a division of Heritage Propane and is affiliated with the Montana-based Energy Transfer Partners. Heritage Propane Express has operations in 37 states, but only about six processing plants like the one planned for Anderson County.
An Anderson County plant made good sense because of logistics.
and will serve the Southeast.
Its sister company, Heritage Propane, already has stores in Easley, Honea Path and Seneca.
Heritage Propane Express is the third company to commit to Anderson County in the last three weeks.
A green-energy company affiliated with Ace Environmental Inc. will make a $30 million investment to build two plants in Anderson County, and to lure it, the county is offering $10.2 million in federal-stimulus bonds. The company is expected to create 75 jobs.
Unitex USA, which makes safety straps, is opening a manufacturing plant also in Piedmont. That venture will create 40 jobs in the next five years.
http://www.callnancylamar.com/ for all your real estate needs.
Tuesday, November 16, 2010
Foreclosure Myths
Four years into the housing crisis, myths about foreclosure still litter the minds of even the smartest of real estate buyers. When it comes to your home, confusion can cost you thousands - or even your home. Whether you’re a buyer looking at purchasing foreclosures, a homeowner struggling to keep your home or a seller concerned making sure your home can compete with the foreclosed homes on your block, these foreclosure myths are prime for the busting, with no further ado.
Myth #1: Foreclosure happens fast. With unemployment and underemployment still affecting nearly 1 in every 4 Americans, no one is immune from fears that a pink slip might quickly turn into a foreclosure notice. According to NeighborWorks America, nearly 60 percent of families seeking foreclosure counseling cited a lost job or cut wages as the reason they were facing foreclosure.
While the Obama Administration's Home Affordable Programs haven't been nearly as effective as predicted in actually preventing foreclosures, they have had the effect of extending the foreclosure process for many families. Even though the legal process of foreclosure can happen in as few as 6 months in most states, it is currently taking much longer for the average foreclosure to get to completion. Recently, JP Morgan Chase revealed that their average borrower who loses a home to foreclosure has not made any payments in 14 months nationwide; 22 months in FLorida and 26 months in New York.
Some see this as a good, others view it as unnecessarily dragging out the overall market's recovery. Many insiders will point out that these delays in foreclosure may be calculated to save the banks the costs of owning and maintaining foreclosed homes, not to help homeowners. In any event, the fact that foreclosure does not happen nearly as fast, in many cases, as expected does give families who are temporarily down on their luck some extra time to try to get back on their feet and save their homes.
Myth #2: Buyers can’t get clear title or title insurance on foreclosed homes. When the foreclosure robo-signing scandal first hit, there was widespread concern that buyers would not be able to get clear title on foreclosed homes, because the former foreclosed owners might be able to come get their homes back when the improprieties in the bank's foreclosure documentation processes came fully to light. At the same time, several of the country's largest title insurance companies publicly balked at issuing policies on bank-owned homes until the issue was resolved. At this point, the banks claim they have revamped their processes, and all banks have stated that they have found not a single borrower whose home was repossessed without them having missed the requisite number of mortgage payments. Nevertheless, a number of governmental investigations are still in progress.
The fact is, buyers of bank-owned properties in nearly every jurisdiction are protected from later title attacks by foreclosed homeowners by the bona fide purchaser rule, under which courts would prefer to simply award cash damages to be paid by the culpable bank to a wrongfully foreclosed-on homeowner, rather than reversing the sale or ownership to the new, innocent buyer. Additionally, the title insurers have now changed their tune and restarted issuing insurance policies on bank-owned homes which protect buyers' interests, after working with the banks for them to take responsibility in the event a former homeowner prevails in a wrongful foreclosure suit.
While there are still many intricacies of title to be resolved for foreclosure buyers who purchase homes at trustee sales and auctions, or for cash buyers who often went without title insurance in the past, on the average, Trulia-listed, bank-owned property purchased with an average mortgage and title insurance, the chances a buyer's title will later be successfully challenged by the foreclosed homeowner on the basis of robo-signing? Exceedingly slim.
Myth #3: Buyers should wait for the shadow inventory to be released. Many a buyer, discouraged with the homes they see on the the form in their price range, has decided to sit still and wait for the banks to release for sale what is called their "shadow inventory" - rumored to be anywhere from 4 to nearly 6 million homes that have already been foreclosed, but not listed for sale, or will be foreclosed in the near future. The fact is, to the extent that the banks have acknowledged the existence of a pool of homes they own but are not selling, they have expressed that their reasoning for holding the homes off the market is to avoid flooding the market and driving home values down any further. For that reason, buyers should not expect to see a massive influx of these shadow homes onto the market anytime soon - if ever.
The banks' current modus operandi is that as they sell a home, the replace it with another home in that market - if they sell 50 homes in a town that month, they'll put another 50 on the next. So, don't hold your breath waiting for a fabulous new flood of homes. Instead, set up a Trulia alert to notify you when homes that fit your search criteria come on the market, and be ready to call your agent and go visit any and every one that looks like it might be a good fit.
Myth #4: If you’re looking for a deal, you’re looking for a foreclosure. Despite what they may say, no buyer’s heart's fondest desire is to buy a foreclosure. But almost every buyer dreams of buying a great home - and getting a great deal on it. Many people think that to get a great value on their home on today's market, it means they must buy a foreclosure. As a result, the value and other advantages of buying an individually-owned home on today's market are frequently overlooked. Individual sellers with homes on the market right now are generally quite motivated, and understand that their homes are competing with discounted short sales and foreclosed homes. Many of these sellers are slashing prices in an effort to get them sold - the most recent Trulia Price Reduction Report revealed that 27 percent of homes on the market across the country have had at least one price reduction. Now that's what I call a sale!
Further, individual owners are often much more negotiable on a wide range of contract terms than a bank which owns a foreclosed home. You can work with non-bank owners on things like repairs, closing dates, choice of escrow provider, closing costs and even included personal property much more flexibly than you can when the bank is on the other side of the bargaining table. On top of that, many individually-owned homes are in pristine, move-in condition; that is much rarer with foreclosures. So, don't underestimate the value of the deal you might be able to get on a non-foreclosed home. Just get clear on what you can afford and look at all the homes that are available in that price range, without discriminating against non-foreclosures.
Myth #5: Having a foreclosure on your credit history means it'll take years and years before you can buy again. One of the most Frequently Asked Questions in the Trulia Voices Community by homeowners who are facing or have just lost a home through foreclosure is how long it will take before they'll be able to buy again. Until recently, the standard wisdom was that 5 years, minimum, would have to have elapsed between the foreclosure and the new home purchase. Now, though, borrowers can obtain an FHA loan with the low, 3.5 minimum down payment requirement as soon as 3 years following a foreclosure. To do so, though, all your other ducks must be in a row.
Post-foreclosure buyers need a credit score of 620-640 to qualify for an FHA loan; higher for a non-FHA loan - given that the foreclosure itself usually dings anywhere from 100-150 points off the credit score (not necessarily counting a full year or more of pre-foreclosure missed payments), former homeowners who want to buy again need to ensure they have no other late payments or credit dings after they lose thier home. You must have clean credit with no derogatory marks like late credit card payments following the foreclosure, and you may also be required to document 12 to 24 months straight of on-time rent payments after the foreclosure.
Further, the bank may impose a lower debt-to-income ratio on post-foreclosure borrowers than on borrowers who have not had a foreclosure, in an effort to keep your mortgage payments low, keep you from overextending yourself and boost the chances you'll be a successful homeowner over the long-term this time around. The bank will also need to see 2 years of continuous employment history in the same field, and documentation that you meet other loan qualification requirements.
http://www.callnancylamar.com/ for all your real estate needs.
Myth #1: Foreclosure happens fast. With unemployment and underemployment still affecting nearly 1 in every 4 Americans, no one is immune from fears that a pink slip might quickly turn into a foreclosure notice. According to NeighborWorks America, nearly 60 percent of families seeking foreclosure counseling cited a lost job or cut wages as the reason they were facing foreclosure.
While the Obama Administration's Home Affordable Programs haven't been nearly as effective as predicted in actually preventing foreclosures, they have had the effect of extending the foreclosure process for many families. Even though the legal process of foreclosure can happen in as few as 6 months in most states, it is currently taking much longer for the average foreclosure to get to completion. Recently, JP Morgan Chase revealed that their average borrower who loses a home to foreclosure has not made any payments in 14 months nationwide; 22 months in FLorida and 26 months in New York.
Some see this as a good, others view it as unnecessarily dragging out the overall market's recovery. Many insiders will point out that these delays in foreclosure may be calculated to save the banks the costs of owning and maintaining foreclosed homes, not to help homeowners. In any event, the fact that foreclosure does not happen nearly as fast, in many cases, as expected does give families who are temporarily down on their luck some extra time to try to get back on their feet and save their homes.
Myth #2: Buyers can’t get clear title or title insurance on foreclosed homes. When the foreclosure robo-signing scandal first hit, there was widespread concern that buyers would not be able to get clear title on foreclosed homes, because the former foreclosed owners might be able to come get their homes back when the improprieties in the bank's foreclosure documentation processes came fully to light. At the same time, several of the country's largest title insurance companies publicly balked at issuing policies on bank-owned homes until the issue was resolved. At this point, the banks claim they have revamped their processes, and all banks have stated that they have found not a single borrower whose home was repossessed without them having missed the requisite number of mortgage payments. Nevertheless, a number of governmental investigations are still in progress.
The fact is, buyers of bank-owned properties in nearly every jurisdiction are protected from later title attacks by foreclosed homeowners by the bona fide purchaser rule, under which courts would prefer to simply award cash damages to be paid by the culpable bank to a wrongfully foreclosed-on homeowner, rather than reversing the sale or ownership to the new, innocent buyer. Additionally, the title insurers have now changed their tune and restarted issuing insurance policies on bank-owned homes which protect buyers' interests, after working with the banks for them to take responsibility in the event a former homeowner prevails in a wrongful foreclosure suit.
While there are still many intricacies of title to be resolved for foreclosure buyers who purchase homes at trustee sales and auctions, or for cash buyers who often went without title insurance in the past, on the average, Trulia-listed, bank-owned property purchased with an average mortgage and title insurance, the chances a buyer's title will later be successfully challenged by the foreclosed homeowner on the basis of robo-signing? Exceedingly slim.
Myth #3: Buyers should wait for the shadow inventory to be released. Many a buyer, discouraged with the homes they see on the the form in their price range, has decided to sit still and wait for the banks to release for sale what is called their "shadow inventory" - rumored to be anywhere from 4 to nearly 6 million homes that have already been foreclosed, but not listed for sale, or will be foreclosed in the near future. The fact is, to the extent that the banks have acknowledged the existence of a pool of homes they own but are not selling, they have expressed that their reasoning for holding the homes off the market is to avoid flooding the market and driving home values down any further. For that reason, buyers should not expect to see a massive influx of these shadow homes onto the market anytime soon - if ever.
The banks' current modus operandi is that as they sell a home, the replace it with another home in that market - if they sell 50 homes in a town that month, they'll put another 50 on the next. So, don't hold your breath waiting for a fabulous new flood of homes. Instead, set up a Trulia alert to notify you when homes that fit your search criteria come on the market, and be ready to call your agent and go visit any and every one that looks like it might be a good fit.
Myth #4: If you’re looking for a deal, you’re looking for a foreclosure. Despite what they may say, no buyer’s heart's fondest desire is to buy a foreclosure. But almost every buyer dreams of buying a great home - and getting a great deal on it. Many people think that to get a great value on their home on today's market, it means they must buy a foreclosure. As a result, the value and other advantages of buying an individually-owned home on today's market are frequently overlooked. Individual sellers with homes on the market right now are generally quite motivated, and understand that their homes are competing with discounted short sales and foreclosed homes. Many of these sellers are slashing prices in an effort to get them sold - the most recent Trulia Price Reduction Report revealed that 27 percent of homes on the market across the country have had at least one price reduction. Now that's what I call a sale!
Further, individual owners are often much more negotiable on a wide range of contract terms than a bank which owns a foreclosed home. You can work with non-bank owners on things like repairs, closing dates, choice of escrow provider, closing costs and even included personal property much more flexibly than you can when the bank is on the other side of the bargaining table. On top of that, many individually-owned homes are in pristine, move-in condition; that is much rarer with foreclosures. So, don't underestimate the value of the deal you might be able to get on a non-foreclosed home. Just get clear on what you can afford and look at all the homes that are available in that price range, without discriminating against non-foreclosures.
Myth #5: Having a foreclosure on your credit history means it'll take years and years before you can buy again. One of the most Frequently Asked Questions in the Trulia Voices Community by homeowners who are facing or have just lost a home through foreclosure is how long it will take before they'll be able to buy again. Until recently, the standard wisdom was that 5 years, minimum, would have to have elapsed between the foreclosure and the new home purchase. Now, though, borrowers can obtain an FHA loan with the low, 3.5 minimum down payment requirement as soon as 3 years following a foreclosure. To do so, though, all your other ducks must be in a row.
Post-foreclosure buyers need a credit score of 620-640 to qualify for an FHA loan; higher for a non-FHA loan - given that the foreclosure itself usually dings anywhere from 100-150 points off the credit score (not necessarily counting a full year or more of pre-foreclosure missed payments), former homeowners who want to buy again need to ensure they have no other late payments or credit dings after they lose thier home. You must have clean credit with no derogatory marks like late credit card payments following the foreclosure, and you may also be required to document 12 to 24 months straight of on-time rent payments after the foreclosure.
Further, the bank may impose a lower debt-to-income ratio on post-foreclosure borrowers than on borrowers who have not had a foreclosure, in an effort to keep your mortgage payments low, keep you from overextending yourself and boost the chances you'll be a successful homeowner over the long-term this time around. The bank will also need to see 2 years of continuous employment history in the same field, and documentation that you meet other loan qualification requirements.
http://www.callnancylamar.com/ for all your real estate needs.
Monday, November 15, 2010
Market Update for Week of November 15th!
Market Update
In contrast to last week, we get wall-to-wall economic reports this time around. Monday's October Retail Sales are expected to reveal a slight increase in the consumer's participation in the recovery. We'll get manufacturing in the New York region on Monday (expected down) and in the Philadelphia region on Friday (expected up) with Industrial Production and Capacity Utilization (both up a tad) in between. Inflation is forecast up a trifle but well under control in both Wednesday's Consumer Price Index (CPI) and Tuesday's Producer Price Index (PPI).
The National Association of Realtors (NAR) reported that home prices stayed pretty flat in the third quarter compared to the same time frame a year ago. This price stabilization is encouraging, given that sales of existing homes in the period did drop compared to both the prior quarter this year and to the same quarter a year ago. Of course, both those time periods saw buyers rushing in to take advantage of the federal tax credits.
On the mortgage front, national average mortgage rates dipped again according to Freddie Mac's weekly survey. This was considered by most experts to be the result of the Federal Reserve's recent announcement of their second round of "quantitative easing," dubbed "QE2." This is the plan in which the Fed will buy up to $600 billion in Treasuries from now till the end of June next year. Not surprisingly, mortgage applications spiked up 5.8% for the week for both purchase and refinance loans, according to the Mortgage Bankers Association.
On the mortgage front, national average mortgage rates dipped again according to Freddie Mac's weekly survey. This was considered by most experts to be the result of the Federal Reserve's recent announcement of their second round of "quantitative easing," dubbed "QE2." This is the plan in which the Fed will buy up to $600 billion in Treasuries from now till the end of June next year. Not surprisingly, mortgage applications spiked up 5.8% for the week for both purchase and refinance loans, according to the Mortgage Bankers Association.
Review of Last Week
The S&P 500 stock market index was up five weeks in a row, but just couldn't score that sixth up week. In sympathy, the Dow and the Nasdaq indexes also dropped for the week as Wall Street investors passed over some of the positive economic reports, preferring instead to dwell on the negative news.
Things to worry about now have an international flavor, beginning with, once again, European sovereign debt. This time the speculation was that Ireland couldn't afford to bail out its financial sector, so the European Union might have to step in. Another continent away, there were fears China will raise its interest rates to tame its growing inflation. Here in the U.S. we had tech bellwether Cisco trimming profit projections for the rest of its fiscal year.
Meanwhile, those sensing a quickening of the pace of recovery latched onto news of September's shrinking trade deficit, which featured a $0.5 billion increase in exports, always a nice thing to see. Best of all was the report that new unemployment claims dropped 24,000 for the week, to 435,000. This is the first weekly reading for jobless claims since the recession began that was below 440,000, not using any statistical or seasonal biases to get there. Some analysts saw this drop in initial claims as an encouraging sign that hiring could soon pick up.
For the week, the Dow was down 2.2%, to 11192.58; the S&P 500 was also down 2.2%, to 1199.21; and the Nasdaq dropped 2.4%, to 2518.21.
The week in the bond market closed with prices under pressure. Most observers put this to rising Chinese inflation because no matter where it originates, inflation drives bond prices down. The FNMA 30-year 4.0% bond we watch ended down 113 basis points for the week, closing at $102.06.
Nonetheless, as mentioned above, national average rates for fixed-rate mortgages hit historic lows, according to Freddie Mac's weekly survey of conforming loans.
Things to worry about now have an international flavor, beginning with, once again, European sovereign debt. This time the speculation was that Ireland couldn't afford to bail out its financial sector, so the European Union might have to step in. Another continent away, there were fears China will raise its interest rates to tame its growing inflation. Here in the U.S. we had tech bellwether Cisco trimming profit projections for the rest of its fiscal year.
Meanwhile, those sensing a quickening of the pace of recovery latched onto news of September's shrinking trade deficit, which featured a $0.5 billion increase in exports, always a nice thing to see. Best of all was the report that new unemployment claims dropped 24,000 for the week, to 435,000. This is the first weekly reading for jobless claims since the recession began that was below 440,000, not using any statistical or seasonal biases to get there. Some analysts saw this drop in initial claims as an encouraging sign that hiring could soon pick up.
For the week, the Dow was down 2.2%, to 11192.58; the S&P 500 was also down 2.2%, to 1199.21; and the Nasdaq dropped 2.4%, to 2518.21.
The week in the bond market closed with prices under pressure. Most observers put this to rising Chinese inflation because no matter where it originates, inflation drives bond prices down. The FNMA 30-year 4.0% bond we watch ended down 113 basis points for the week, closing at $102.06.
Nonetheless, as mentioned above, national average rates for fixed-rate mortgages hit historic lows, according to Freddie Mac's weekly survey of conforming loans.
This Week’s Forecast
In contrast to last week, we get wall-to-wall economic reports this time around. Monday's October Retail Sales are expected to reveal a slight increase in the consumer's participation in the recovery. We'll get manufacturing in the New York region on Monday (expected down) and in the Philadelphia region on Friday (expected up) with Industrial Production and Capacity Utilization (both up a tad) in between. Inflation is forecast up a trifle but well under control in both Wednesday's Consumer Price Index (CPI) and Tuesday's Producer Price Index (PPI).
Also on Wednesday, we'll see how home builders were feeling in October, with Housing Starts and Building Permits expected to remain at their modest levels. Thursday's Leading Economic Indicators (LEI) Index is forecast to show the recovery still slowly inching forward.
The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates
http://www.callnancylamar.com/ for all your real estate needs.
Wednesday, November 10, 2010
Veterans Day Parade in Anderson, SC
The 2nd Annual Veterans Day Parade will be held on Sunday, November 14 at 2:00PM in Downtown Anderson.
The parade will begin setting up at 12:00PM. A ceremony will take place at the Courthouse Plaza immediately following the parade.
http://www.callnancylamar.com/ for all your real estate needs
Tuesday, November 9, 2010
Market Update for Week of November 1st - Financially Speaking
Market Update
Last Friday the National Association of Realtors (NAR) reported that their gauge of Pending Home Sales dropped 1.8% in September from an upwardly revised August reading. The pending sales index reflects signed contracts. Since it typically takes a few months to get from contract to closing, this reading forecasts actual existing home sales toward the end of this year.
The NAR's chief economist made an insightful point: "We've added 30 million people to the U.S. population over the past ten years, but sales are where they were in 2000, so there appears to be a sizable pent-up demand that could come to the market once the economy gathers momentum." Other analysts commented that "decade low mortgage rates and near record highs in affordability should help stabilize sales in the near term, however it will take meaningful improvement in the labor market to drive housing going forward."
The NAR's chief economist made an insightful point: "We've added 30 million people to the U.S. population over the past ten years, but sales are where they were in 2000, so there appears to be a sizable pent-up demand that could come to the market once the economy gathers momentum." Other analysts commented that "decade low mortgage rates and near record highs in affordability should help stabilize sales in the near term, however it will take meaningful improvement in the labor market to drive housing going forward."
Review of Last Week
Stock market investors pushed the Dow UP to its highest level since September 8, 2008, which was just before the economy headed south. In fact, all the major market indexes registered two year highs last week, as Wall Street reacted to the midterm elections on Tuesday, the Federal Reserve's announcement on Wednesday, and the October Jobs report on Friday.
The week began on a bit of a sour note, with September Personal Income down 0.1% and Personal Spending up only 0.2%, both missing expectations. But consumer inflation was up just 0.1% for the month and up 1.4% over a year ago. Core inflation, excluding food and energy, was up only 1.2% from a year ago, well within Fed guidelines. October ISM Manufacturing and ISM Services indexes were both UP, beating expectations and showing business growth.
Tuesday's election results were expected, with Republicans taking the House and Democrats keeping control of the Senate despite losing six seats to Republicans. Wednesday the Fed announced their second round of quantitative easing (QE 2). The Fed will be purchasing $600 billion in long-term Treasury securities from now till the middle of next year to help further stimulate the economy. The big upside surprise was Friday's employment report. 151,000 new jobs were created in October, versus the mere 60,000 expected. The private payroll gain was 159,000, which puts the private sector up by more than 100,000 jobs for each of the last four months. Unfortunately, the workforce increase kept the unemployment rate at 9.6%.
For the week, the Dow was UP 2.9%, to 11444.08; the S&P 500 ended UP 3.6%, at 1225.85; and the Nasdaq was UP 2.9%, to 2578.98.
It was a movable feast last week in the bond market, with prices moving up on the Fed's announcement, then pulling back with the unexpectedly positive jobs report. Nonetheless, the FNMA 30-year 4.0% bond we watch ended UP 17 basis points for the week, closing at $103.19.
According to Freddie Mac's weekly survey of conforming loans, national average rates for fixed-rate mortgages remain at historic lows, even lower than predicted for this time frame.
The week began on a bit of a sour note, with September Personal Income down 0.1% and Personal Spending up only 0.2%, both missing expectations. But consumer inflation was up just 0.1% for the month and up 1.4% over a year ago. Core inflation, excluding food and energy, was up only 1.2% from a year ago, well within Fed guidelines. October ISM Manufacturing and ISM Services indexes were both UP, beating expectations and showing business growth.
Tuesday's election results were expected, with Republicans taking the House and Democrats keeping control of the Senate despite losing six seats to Republicans. Wednesday the Fed announced their second round of quantitative easing (QE 2). The Fed will be purchasing $600 billion in long-term Treasury securities from now till the middle of next year to help further stimulate the economy. The big upside surprise was Friday's employment report. 151,000 new jobs were created in October, versus the mere 60,000 expected. The private payroll gain was 159,000, which puts the private sector up by more than 100,000 jobs for each of the last four months. Unfortunately, the workforce increase kept the unemployment rate at 9.6%.
For the week, the Dow was UP 2.9%, to 11444.08; the S&P 500 ended UP 3.6%, at 1225.85; and the Nasdaq was UP 2.9%, to 2578.98.
It was a movable feast last week in the bond market, with prices moving up on the Fed's announcement, then pulling back with the unexpectedly positive jobs report. Nonetheless, the FNMA 30-year 4.0% bond we watch ended UP 17 basis points for the week, closing at $103.19.
According to Freddie Mac's weekly survey of conforming loans, national average rates for fixed-rate mortgages remain at historic lows, even lower than predicted for this time frame.
This Week’s Forecast
QUIET TIME... What a change from last week. No economic reports on Veteran's Day Thursday and the rest of the week is fairly sedate. Wednesday, we'll want to keep an eye on Initial Weekly and Continuing Unemployment Claims, although they're forecast to stay pretty much where they've been. This is still not at a level that will start reducing the Unemployment Rate, which is the good news we need for the housing recovery. The week will close out with preliminary November Michigan Consumer Sentiment, expected to rise just a bit.
The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
http://www.CallNancyLamar.com for all your real estate needs!
Thursday, November 4, 2010
FREE Parking in Downtown Anderson
Parking in the West Whitner Parking Garage will be FREE from November 26- December 31!
Please feel welcome to utilize the Garage free of charge during this holiday season. This should help to free up some of the parking along the roads in the Downtown area.
http://http://www.callnancylamar.com/ for all your real estate needs!
Monday, November 1, 2010
Market Update Financially Speaking & Real Estate News
Last week's big rush of housing news began on Monday with Existing Home Sales for September UP 10% from the month before. The annual rate hit 4.53 million. This was the second straight monthly gain after July's record low following the expiration of the tax credits. The national median price for existing homes is now at $171,700, down 2.4% from a year ago. Unsold inventory dropped 1.9% from the prior month to a 10.7 months' supply.
Tuesday, the S&P Case-Shiller home price indexes came in weaker for August, also seen as a result of the expiration of the tax credits. The 10-city index was down 0.1% for the month and the 20-city index off 0.2%. The Federal Housing Finance Agency's monthly house price index showed U.S. home prices falling 2.4% from August a year ago and 13.7% off their April 2007 peak. This index tracks the prices of homes purchased with mortgages sold to or guaranteed by Fannie Mae or Freddie Mac.
Wednesday, New Home Sales for September were UP 6.6%, coming off record lows in July and August. The seasonally adjusted annual rate was 307,000, which is down 21.5% from a year ago. Good news came with the median new home price rising 3.3% from the year before, now at $223,800. The supply also came in at 8 months, with the actual number of unsold new homes the lowest it's been since 1968.
Tuesday, the S&P Case-Shiller home price indexes came in weaker for August, also seen as a result of the expiration of the tax credits. The 10-city index was down 0.1% for the month and the 20-city index off 0.2%. The Federal Housing Finance Agency's monthly house price index showed U.S. home prices falling 2.4% from August a year ago and 13.7% off their April 2007 peak. This index tracks the prices of homes purchased with mortgages sold to or guaranteed by Fannie Mae or Freddie Mac.
Wednesday, New Home Sales for September were UP 6.6%, coming off record lows in July and August. The seasonally adjusted annual rate was 307,000, which is down 21.5% from a year ago. Good news came with the median new home price rising 3.3% from the year before, now at $223,800. The supply also came in at 8 months, with the actual number of unsold new homes the lowest it's been since 1968.
>> Review of Last Week
FLAT WEEK, UP MONTH... Investors on Wall Street kept things in check last week, leaving the Dow down by a whisker, the S&P 500 dead flat, and the tech-heavy Nasdaq up a modest 1.1%. Observers felt traders were awaiting this week's midterm elections and then Wednesday's Fed meeting statement regarding its next round of quantitative easing to spur growth. For the month, stocks did quite nicely with the S&P 500 up 3.7%; the Dow up 3%, its best October since 2006; and the Nasdaq up 5.9%, its best October in seven years.
In the week's economic news, a plus always seemed to come with a minus. For example, Consumer Confidence was up in October, but it still remains at historically low levels. This is occurring over a year since the economy transitioned from recession to recovery, at least as measured by overall growth. Durable Goods Orders were up 3.3% in September, but it all came from aircraft and parts. Exclude those, and orders were down 0.8% for the month.
It was somewhat encouraging to see weekly jobless claims dropping for the third straight week. This put them at their lowest level since July, but still above 400,000. Finally, the advanced estimate of Q3 GDP came in at 2.0% annual growth. This was in line with expectations and shows the economy is in fact growing. But 2% is well below the growth rate economists say we need to make a significant dent in the unemployment rate.
For the week, the Dow was down 0.1%, to 11118.49; the S&P 500 ended flat, at 1183.26; but the Nasdaq was UP 1.1%, to 2507.41.
Bond prices dipped for a good part of the week, then rebounded, but not enough. The FNMA 30-year 4.0% bond we watch ended down 10 basis points for the week, closing at $103.02. National average mortgage rates for most mortgages remain at historically low levels. A cautionary note: the Mortgage Bankers Association predicts rates of 30-year fixed-rated mortgages will begin rising next year.
In the week's economic news, a plus always seemed to come with a minus. For example, Consumer Confidence was up in October, but it still remains at historically low levels. This is occurring over a year since the economy transitioned from recession to recovery, at least as measured by overall growth. Durable Goods Orders were up 3.3% in September, but it all came from aircraft and parts. Exclude those, and orders were down 0.8% for the month.
It was somewhat encouraging to see weekly jobless claims dropping for the third straight week. This put them at their lowest level since July, but still above 400,000. Finally, the advanced estimate of Q3 GDP came in at 2.0% annual growth. This was in line with expectations and shows the economy is in fact growing. But 2% is well below the growth rate economists say we need to make a significant dent in the unemployment rate.
For the week, the Dow was down 0.1%, to 11118.49; the S&P 500 ended flat, at 1183.26; but the Nasdaq was UP 1.1%, to 2507.41.
Bond prices dipped for a good part of the week, then rebounded, but not enough. The FNMA 30-year 4.0% bond we watch ended down 10 basis points for the week, closing at $103.02. National average mortgage rates for most mortgages remain at historically low levels. A cautionary note: the Mortgage Bankers Association predicts rates of 30-year fixed-rated mortgages will begin rising next year.
>> This Week’s Forecast
There are plenty of economic reports to ponder this week, but two items stand out. The Fed will be meeting on Wednesday and while no one expects the Fed Funds rate to go up, everyone will be looking for indications of when the Fed will start its second round of quantitative easing (QE-2) and how much money will get thrown into the system. The other point of interest will be the October jobs report on Friday. The forecast is for payrolls to be up by 45,000 jobs, which isn't very many, but at least it's a positive number, though the unemployment rate is predicted to hold at 9.6%.
Highlights of the remaining economic news include the PCE inflation reading expected to stay at 0.4%, and ISM predicted down a little, though still showing manufacturing expanding. The week ends with Friday's Pending Home Sales for September, forecast to be up 0.5%, a good thing but not as good as August's hike of over 4%.
Highlights of the remaining economic news include the PCE inflation reading expected to stay at 0.4%, and ISM predicted down a little, though still showing manufacturing expanding. The week ends with Friday's Pending Home Sales for September, forecast to be up 0.5%, a good thing but not as good as August's hike of over 4%.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
http://www.callnancylamar.com/ for all your real estate needs.
Thursday, October 28, 2010
Now is the Cheapest Time to Buy Real Estate in over 40 Years!
I heard it again, "Now it the cheapest time to buy real estate in over 40 years!". But it won't last forever. Yesterday interest rates on a 15 & 30 year mortgage crept up again. Buy now, or you may regret it in years to come!
http://www.callnancylamar.com/ for all your real estate needs!
http://www.callnancylamar.com/ for all your real estate needs!
Thursday, October 21, 2010
To Refinance, or Not to Refinance...That is the Question!
If have the inclination to pull your house off the market to do a refinance on your mortgage or mortgages, please be careful. If you are trying to go conventional on the refi then you will have to wait 6 months before you can do the refi. That’s the bad news! The good news is that you can do the refi with FHA right now as they have put this 6 month waiting period on hold for now. The max loan that FHA will do in Anderson County is $271,500. If you have a higher balance than the $271,500 then you will have to wait the full 6 months before refinancing.
http://www.callnancylamar.com/ for all your real estate needs.
http://www.callnancylamar.com/ for all your real estate needs.
Tuesday, October 19, 2010
Lake Hartwell is Close to Full Pool
According to the US Corps of Engineers yesterday, Lake Hartwell had a lake level of 655.39'. With 660' being full pool, that means its down 4.61'.
http://www.callnancylamar.com/ for all your real estate needs.
http://www.callnancylamar.com/ for all your real estate needs.
Wednesday, October 13, 2010
Southwest Airlines is coming to GSP
Great News! Southwest Airlines is supposed to be coming to the Greenville Spartanburg International Airport (GSP). The low-fare airline’s arrival will mean an economic boom to the area. The airport manageer said the airline’s arrival at GSP would have a $150 million positive economic effect on the Upstate. The airport is anticipating Southwest’s ticket prices would be about $100 lower than what current carriers charge. The lower Southwest fares, he said, would cause other carriers to lower their ticket prices as well.
Why is this good news to our area? Lower prices would mean more travelers. And more travelers would mean more money spent at and around the airport, as well as more jobs at and around the airport.
Along with the addition of Southwest will come a nearly $100 million renovation to the airport to accommodate more traffic, as well as update the 50-year-old building.
The design phase of the renovation is expected to start in 2011, with the groundbreaking happening in 2012.
Edwards said the design would tear the core terminal down and rebuild it, connecting the two terminals and updating both airport for its environmental impact and customer appeal.
http://www.callnancylamar.com/
Why is this good news to our area? Lower prices would mean more travelers. And more travelers would mean more money spent at and around the airport, as well as more jobs at and around the airport.
Along with the addition of Southwest will come a nearly $100 million renovation to the airport to accommodate more traffic, as well as update the 50-year-old building.
The design phase of the renovation is expected to start in 2011, with the groundbreaking happening in 2012.
Edwards said the design would tear the core terminal down and rebuild it, connecting the two terminals and updating both airport for its environmental impact and customer appeal.
http://www.callnancylamar.com/
Monday, October 11, 2010
3rd Qtr Home Sale Stats in the Western Upstate of South Carolina
Western Upstate Home Sales Statistics through 3rd Qtr 2010
There are currently 4234 residential homes currently listed here in the Western Upstate MLS. These numbers reflect all single family homes, condos, and townhouses, but do not include mobile homes. There are 824 waterfront homes listed and 7.5% of all the homes currently listed in the Western Upstate MLS are bank owned homes. The Western Upstate MLS is made up of Anderson , Pickens, & Oconee Counties Anderson County
Year | Homes Sold through September 30 | Percent change vs previous year | Average Sold Price | Percent change vs. previous year in sold price | Average Days on Market |
All Western Upstate Homes ‘10 | 1961 | +6.3% | $172,671 | +1.8% | 160 |
All Western Upstate Homes ‘09 | 1845 | -20.4% | $169,632 | -8.5% | 163 |
Anderson Co Homes YTD | 979 | +9.6% | $140,039 | +.06% | 150 |
All Western Upstate Waterfront Homes ‘10 | 206 | +42.1% | $453,624 | -5.5% | 189 |
All Western Upstate Waterfront Homes ‘09 | 145 | -21.2% | $480,081 | -6.1% | 190 |
Anderson Co WF Homes through Sept ‘10 | 67 | +52.3% | $283,723 | -1.7% | 178 |
Here is the percent of homes selling in each price range in the tri-county area:
Percent of Homes Sold | |
Up to $200,000 | 76.1% |
$201,000-$275,000 | 10.5% |
$276,000-$350,000 | 4.8% |
$351,000-$500,000 | 4.4% |
$501,000-$850,000 | 3.3% |
More than $851,000 | .9% |
Of the 18 homes that sold year to date in the “more than $851,000 price range”, all were in Oconee Co. except four homes in Pickens Co. and one in Anderson Co. I was encouraged to find that the < $200,000 price range declined from 78.9% to 76.1%, and all the higher price ranges grew in market share this year to date.
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