The link below depicts the Real Estate market on Galveston Island over the past year. If you run your pointer over the graph it will give you the exact number.
http://www.garygreene.com/terabitzApi/graph/alert.php?id=241
As you can see the graphs indicate an upward swing in volume for February from the previous year. A majority of this is a reflection of fewer "as is" hurricane damaged homes selling for $20,000 to $50,000. This is also reflected in the increase in average sales price
The quantity sold in February 2010 was virtually the same as the quantity sold in February 2009.
The supply of available homes is on the rise which is typical for this time of year.
The most interesting graph is reflected for the foreclosures. The new foreclosures coming on the market appears to be leveling off while the number of foreclosure sales appears to be rising. The interesting item to note is not reflected in the graph. A majority of foreclosures sold close for a price greater than this list price. The attraction to foreclosed properties is phenomenal.
Remember this graph is for the entire Island. Tomorrow I will post for the West End of Galveston.
Saturday, March 20, 2010
Tuesday, March 9, 2010
14454 Spyglass Circle - Galveston, Texas
Contemporary Beachfront home in Pirates Beach West. The beachside of the home is protected by State Owned 600ft of wetlands.
Check out the pool built in the deck of this home!
See more of this gorgeous fully furnished and professionally designed home at www.14454spyglass.com
Wednesday, March 3, 2010
Think you're in a buyer's market - think again!
Are you a buyer looking for a foreclosure? Are you one of the many who believe foreclosures are the bargains of the day. Think again!
When you make an offer on a foreclosure you have just entered a seller's market; you, the buyer have no control.
But wait, you say, I will get a great "deal" if I buy a foreclosure. Really??? How great is it when you are in a bidding war with 39 other buyers. Yes, 39. One foreclosure at this time has 40 offers.
When your agent comes back to you and says "they want your highest and best offer", you are now in a bidding war and if you want the home you better be prepared to offer more than asking price - which by the way is just a base price. It is not the end of the line price.
Do your self a favor. Listen to your REALTOR and shop for your home. Look for those motivated sellers whose homes have been on the market a year or more. You'd be surprised what great "deals" you can find with the everyday seller who can pay his bills but still wants to sell his home. Don't be like the 99% of buyers going straight to the foreclosure. Save yourself some time and heart ache by looking at all possible options.
When you make an offer on a foreclosure you have just entered a seller's market; you, the buyer have no control.
But wait, you say, I will get a great "deal" if I buy a foreclosure. Really??? How great is it when you are in a bidding war with 39 other buyers. Yes, 39. One foreclosure at this time has 40 offers.
When your agent comes back to you and says "they want your highest and best offer", you are now in a bidding war and if you want the home you better be prepared to offer more than asking price - which by the way is just a base price. It is not the end of the line price.
Do your self a favor. Listen to your REALTOR and shop for your home. Look for those motivated sellers whose homes have been on the market a year or more. You'd be surprised what great "deals" you can find with the everyday seller who can pay his bills but still wants to sell his home. Don't be like the 99% of buyers going straight to the foreclosure. Save yourself some time and heart ache by looking at all possible options.
Tuesday, March 2, 2010
Buyers who wait may lose a lot
Potential home buyers who delay have a lot to lose.
First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30. Buyers who qualify get a dollar-for-dollar reduction in taxes or a cash payment if they don’t pay enough taxes to cover the credit.
Other factors that should spur buyers:
Low mortgage rates. If the Federal Reserve stops buying mortgage-backed securities at the end of March, 30-year rates will almost certainly rise to more than 6 percent.
Rising prices. About 30 percent of markets are already experiencing price increases. Prices are falling in 12 percent of markets, says Fiserv (but that only helps if you want to live there).
Source: Money Magazine, Beth Braverman (03/02/2010)
First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30. Buyers who qualify get a dollar-for-dollar reduction in taxes or a cash payment if they don’t pay enough taxes to cover the credit.
Other factors that should spur buyers:
Low mortgage rates. If the Federal Reserve stops buying mortgage-backed securities at the end of March, 30-year rates will almost certainly rise to more than 6 percent.
Rising prices. About 30 percent of markets are already experiencing price increases. Prices are falling in 12 percent of markets, says Fiserv (but that only helps if you want to live there).
Source: Money Magazine, Beth Braverman (03/02/2010)
Friday, February 26, 2010
Foreclosure Bargains Getting Harder to Find
Home buyers hoping to snag a really good deal on a foreclosed home are finding it increasingly difficult because supply is shrinking.
The number of foreclosures that are available for sale nationwide fell to 617,000 in December, down from 845,000 in November 2008, reports Barclays Capital.
Not only have attractive homes in popular neighborhoods already been snapped up, but also government help for distressed buyers is delaying more foreclosures.
Demand is driving up prices. Investors say typical prices have climbed from 75 percent of appraised value to 85 percent or higher when there are bidding wars.
Source: The Wall Street Journal, James R. Hagerty (02/23/2010)
The number of foreclosures that are available for sale nationwide fell to 617,000 in December, down from 845,000 in November 2008, reports Barclays Capital.
Not only have attractive homes in popular neighborhoods already been snapped up, but also government help for distressed buyers is delaying more foreclosures.
Demand is driving up prices. Investors say typical prices have climbed from 75 percent of appraised value to 85 percent or higher when there are bidding wars.
Source: The Wall Street Journal, James R. Hagerty (02/23/2010)
Interest Rates to Remain Low
Fed: Interest Rates to Remain Low
Investors breathed a sigh of relief Wednesday when Federal Reserve Chair Ben Bernanke told Congress that interest rates are likely to remain low for an extended period. The economy, he said, "still requires support for recovery."
Investors see these low rates as a boon to a recovery of employment and business.
Bernanke’s announcement also took the edge off the news Wednesday that housing sales hit a new low in January.
"Even though nothing he said was particularly new, it was just enough to calm the ruffled feathers that were out there," said Jim McDonald, chief investment strategist at Northern Trust in Chicago.
Source: The Associated Press, Tim Paradis (02/24/2010)
Investors breathed a sigh of relief Wednesday when Federal Reserve Chair Ben Bernanke told Congress that interest rates are likely to remain low for an extended period. The economy, he said, "still requires support for recovery."
Investors see these low rates as a boon to a recovery of employment and business.
Bernanke’s announcement also took the edge off the news Wednesday that housing sales hit a new low in January.
"Even though nothing he said was particularly new, it was just enough to calm the ruffled feathers that were out there," said Jim McDonald, chief investment strategist at Northern Trust in Chicago.
Source: The Associated Press, Tim Paradis (02/24/2010)
Friday, February 12, 2010
Now is the Time to Buy on Galveston Island - interest rates on the rise
Fed Plans to Pull Back Money
Federal Reserve Chair Ben Bernanke released a formal proposal Wednesday to collect the trillions of dollars that the Federal Reserve has spent to prop up the economy.
Bernanke emphasized that the economy still needs the support of easy money, but he warned that the Fed will soon have to “tighten financial conditions” and raise interest rates. He didn’t specify how much, although he offered some reassurance that the increase won’t be dramatic immediately.
In his report, Bernanke said the Fed plans to sell securities while simultaneously offering to rebuy them at some point.
He also said the Fed plans to sell the equivalent of certificates of deposit to banks and financial firms and take a piece of the banks’ reserves in return.
The release of Bernanke’s proposal initially rattled the stock market but later stocks crept up again.
Source: CNNMoney.com, Jennifer Liberto (02/10/2010
Federal Reserve Chair Ben Bernanke released a formal proposal Wednesday to collect the trillions of dollars that the Federal Reserve has spent to prop up the economy.
Bernanke emphasized that the economy still needs the support of easy money, but he warned that the Fed will soon have to “tighten financial conditions” and raise interest rates. He didn’t specify how much, although he offered some reassurance that the increase won’t be dramatic immediately.
In his report, Bernanke said the Fed plans to sell securities while simultaneously offering to rebuy them at some point.
He also said the Fed plans to sell the equivalent of certificates of deposit to banks and financial firms and take a piece of the banks’ reserves in return.
The release of Bernanke’s proposal initially rattled the stock market but later stocks crept up again.
Source: CNNMoney.com, Jennifer Liberto (02/10/2010
Tuesday, February 9, 2010
4 Reasons to Sell Now
Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.
Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.
Source: McClatchy Tribune, Kate Forgach (02/07/2010)
Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.
Source: McClatchy Tribune, Kate Forgach (02/07/2010)
Friday, February 5, 2010
Market Confidence is Growing
Real Estate CEOs Say Business Is Improving
The 110 members of the Real Estate Executive Roundtable are more positive about their industry in the first quarter of 2010 than they were in 2009 with the sentiment index at 73, up from 63 in the fourth quarter of 2009.
The sentiment index measures confidence in real estate market conditions. However, a common concern of respondents is the employment picture. As one CEO commented, "There are 20 million or more people who are underemployed or unemployed. Businesses are being very cautious. The federal government is considering raising taxes. All of this is causing uneasiness."
Approximately two-thirds of respondents said capital—for both debt and equity—is more accessible now compared to a year ago, during the height of the financial crisis.
Source: Real Estate Roundtable (02/03/2010)
The 110 members of the Real Estate Executive Roundtable are more positive about their industry in the first quarter of 2010 than they were in 2009 with the sentiment index at 73, up from 63 in the fourth quarter of 2009.
The sentiment index measures confidence in real estate market conditions. However, a common concern of respondents is the employment picture. As one CEO commented, "There are 20 million or more people who are underemployed or unemployed. Businesses are being very cautious. The federal government is considering raising taxes. All of this is causing uneasiness."
Approximately two-thirds of respondents said capital—for both debt and equity—is more accessible now compared to a year ago, during the height of the financial crisis.
Source: Real Estate Roundtable (02/03/2010)
Thursday, February 4, 2010
The New Normal Real Estate Market Defined
What Will the Market's New Normal Be?
In a new study, "Housing in America: The Next Decade," Urban Land Institute senior resident fellow John McIlwain says the housing market will not return to what it was prior to the downturn but rather that a "new normal" will take its place.
He expects another 10 percent decrease in residential prices this year, a jump in the number of borrowers abandoning "underwater" mortgages, and a change in consumer perceptions of homeownership.
"The emotional impact on the children and parents and disillusion about the 'joys' of homeownership will be intense; new attitudes to homeownership and the American dream will emerge," McIlwain writes.
He expects home price appreciation to hover around 1 percent or 2 percent per year after the market recovers and the national homeownership rate to drop from 67 percent currently to 62 percent by 2020.
In the coming decade, McIlwain expects the following:
Older baby boomers to move to urban, mixed-use, mixed-age centers near family instead of retiring to Sun Belt communities;
Immigrants to snub the suburbs in favor of more close-knit communities;
Younger boomers to face the challenges of lost home equity and a smaller pool of move-up buyers;
Generation Y to rent for long periods by choice or because they are paying off student loans or have stagnant incomes.
Source: Inman News (02/01/10)
In a new study, "Housing in America: The Next Decade," Urban Land Institute senior resident fellow John McIlwain says the housing market will not return to what it was prior to the downturn but rather that a "new normal" will take its place.
He expects another 10 percent decrease in residential prices this year, a jump in the number of borrowers abandoning "underwater" mortgages, and a change in consumer perceptions of homeownership.
"The emotional impact on the children and parents and disillusion about the 'joys' of homeownership will be intense; new attitudes to homeownership and the American dream will emerge," McIlwain writes.
He expects home price appreciation to hover around 1 percent or 2 percent per year after the market recovers and the national homeownership rate to drop from 67 percent currently to 62 percent by 2020.
In the coming decade, McIlwain expects the following:
Older baby boomers to move to urban, mixed-use, mixed-age centers near family instead of retiring to Sun Belt communities;
Immigrants to snub the suburbs in favor of more close-knit communities;
Younger boomers to face the challenges of lost home equity and a smaller pool of move-up buyers;
Generation Y to rent for long periods by choice or because they are paying off student loans or have stagnant incomes.
Source: Inman News (02/01/10)
Saturday, January 30, 2010
Foreclosures with closing costs paid by Fannnie Mae
Fannie to Offer Closing Cost Aid on Foreclosures
Fannie Mae, the largest provider of residential home funding in the United States, announced Friday that it would pay the closing costs on purchases of foreclosed homes in its inventory.
The government-controlled company said buyers of qualified properties will get up to 3.5 percent in closing costs, or an equivalent amount for the purchase of new appliances.
The goal of Fannie is to clear out the nearly 50,000 properties it has in inventory— listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes.
"Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover," said Terry Edwards, executive vice president for credit portfolio management, in a statement.
Source: Reuters News, Al Yoon (01/28//2010)
Fannie Mae, the largest provider of residential home funding in the United States, announced Friday that it would pay the closing costs on purchases of foreclosed homes in its inventory.
The government-controlled company said buyers of qualified properties will get up to 3.5 percent in closing costs, or an equivalent amount for the purchase of new appliances.
The goal of Fannie is to clear out the nearly 50,000 properties it has in inventory— listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes.
"Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover," said Terry Edwards, executive vice president for credit portfolio management, in a statement.
Source: Reuters News, Al Yoon (01/28//2010)
Friday, January 29, 2010
Housing is near Bottom
Freddie Mac CEO: Housing Is Near Bottom
The inventory of foreclosed houses still hampers the recovery of the housing sector, but overall, the U.S. housing market appears to be at or near bottom, Freddie Mac CEO Charles Haldeman told the Detroit Economic Club on Tuesday.
He predicted that the 30-year fixed mortgage rate would remain between 5 percent and 6 percent through 2010.
"The big downside risk to all this is a large wave of homes now in foreclosure potentially hitting the market at prices that are destructive," Haldeman said.
Source: Reuters News, Soyoung Kim (01/26/2010)
This is the common theme for the Galveston market. Fortunately, we did not have the volume of investor purchases in 2005 - 2007 as California, Florida, and Nevada which created many of the foreclosures in these resort markets. Overall, our foreclosure result is minimal as compared to other markets.
The inventory of foreclosed houses still hampers the recovery of the housing sector, but overall, the U.S. housing market appears to be at or near bottom, Freddie Mac CEO Charles Haldeman told the Detroit Economic Club on Tuesday.
He predicted that the 30-year fixed mortgage rate would remain between 5 percent and 6 percent through 2010.
"The big downside risk to all this is a large wave of homes now in foreclosure potentially hitting the market at prices that are destructive," Haldeman said.
Source: Reuters News, Soyoung Kim (01/26/2010)
This is the common theme for the Galveston market. Fortunately, we did not have the volume of investor purchases in 2005 - 2007 as California, Florida, and Nevada which created many of the foreclosures in these resort markets. Overall, our foreclosure result is minimal as compared to other markets.
Wednesday, January 20, 2010
Housing Economists: Sales Are on the Rise
Daily Real Estate News | January 20, 2010 | Share
Housing Economists: Sales Are on the Rise
The housing recovery should gain moment in 2010, but the improvement will still be slow, according to a panel of economists speaking at the International Builders Show in Las Vegas.
"It won't be a strong recovery, but it will be a recovery," said David Crowe, chief economist for the National Association of Home Builders.
Crowe forecast that sales of new homes will rise by about 33 percent while resales will go up 7 percent. He expects prices to remain stable in most areas, but some cities may see some slight declines.
"I believe we've seen the worst of the house price declines ... The stage is set for the consumer to return," Crowe said.
Source: Associated Press, Alex Veiga (01/19/2010)
Housing Economists: Sales Are on the Rise
The housing recovery should gain moment in 2010, but the improvement will still be slow, according to a panel of economists speaking at the International Builders Show in Las Vegas.
"It won't be a strong recovery, but it will be a recovery," said David Crowe, chief economist for the National Association of Home Builders.
Crowe forecast that sales of new homes will rise by about 33 percent while resales will go up 7 percent. He expects prices to remain stable in most areas, but some cities may see some slight declines.
"I believe we've seen the worst of the house price declines ... The stage is set for the consumer to return," Crowe said.
Source: Associated Press, Alex Veiga (01/19/2010)
Sunday, January 10, 2010
The Market is Heating Up while the Wind Chill is dropping!
"They" said it would happen and we all knew that eventually it would. The buyer activity is heating up and it is only the second week of January.
During the coldest week we have had in years, I showed property every day of the week. I wrote 2 offers and received 1 from another Realtor. My phone has rung everyday from buyers wanting to buy - not sellers wanting to list.
What a difference one year makes! Whether it is a good stock market; rising interest rates; fear of inflation; or the rising price of oil - most everyone is in agreement - the time to buy Real Estate in Galveston, Texas is now.
If you are sitting on the sidelines it is time to stand up and get in the game. While we will see new listings come on the market over the next 2 months, you can be sure that the homes that have been on the market the longest are the ones that will go first. These are the motivated sellers - not the sellers coming new into the market trying to time the rise in home sales.
If you are a buyer and want to know which homes are the best bargains - call me! There are several available but who knows for how long.
During the coldest week we have had in years, I showed property every day of the week. I wrote 2 offers and received 1 from another Realtor. My phone has rung everyday from buyers wanting to buy - not sellers wanting to list.
What a difference one year makes! Whether it is a good stock market; rising interest rates; fear of inflation; or the rising price of oil - most everyone is in agreement - the time to buy Real Estate in Galveston, Texas is now.
If you are sitting on the sidelines it is time to stand up and get in the game. While we will see new listings come on the market over the next 2 months, you can be sure that the homes that have been on the market the longest are the ones that will go first. These are the motivated sellers - not the sellers coming new into the market trying to time the rise in home sales.
If you are a buyer and want to know which homes are the best bargains - call me! There are several available but who knows for how long.
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