This Month in Real Estate - October Edition

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Laura Dickenson http://laura.thedickensongroup.com laura@thedickensongroup.com (615)778-1818 (Office) Keller Williams - Franklin, TN 9175 Carothers Parkway #110 Franklin, TN 37067	October 2011 Market Update Despite some pessimism pertaining to the global and domestic economies, the U.S. housing sector continues to show promising signs of stability and growth. Low levels of new home construction and gaining sales volume fueled by an inventory of affordable housing since Richard Nixon was president have reduced the number of homes on the market. This means home prices may begin to appreciate again. While there are many factors that can be barriers to buying a home, such as the tightening of mortgage lending rules by banks, consumer confidence in the job market is among one of the top obstacles to home ownership. In the 2011 Housing Pulse Survey conducted by the National Association of Realtors, 80% of respondents cited job security as their primary concern when deciding to buy. For only the fourth time since the beginning of 2010, home sales in August were up both year-over-year and month-over-month, posting an 18.6% gain from last year, with first-time home buyers accounting for nearly a third of all homes purchased. These indications of strength in the housing market may help to add to consumer confidence, which is an integral part of sustained growth. Even though there is still a long road to recovery ahead of us, there are opportunities to be had for both home buyers and sellers.
This Month's Video	Interest Rates
	Home ownership became even more affordable, with the average rate for 30-year fixed mortgages falling to 4.01% the last week in September. This drop came as a result of the Federal Reserve extending the average maturity of its holdings as a part of the Maturity Extension Program, an effort designed to put downward pressure on interest rates and yields on treasury bonds in order to stimulate the economy. It is hoped that this action will encourage banks to loosen lending conditions, as it becomes more attractive to loan money to home buyers, rather than invest in treasury bonds.
Home Sales
August home sales were up 18.6% year-to-year, posting a 7.7% increase in sales activity over July despite Hurricane Irene, which struck the Eastern seaboard and New England regions at the end of the month. As a result of the hurricane, the Northeast experienced the smallest increase in sales. At the same time, persisting restrictions among banks affecting home lending are having the greatest constraint on sales levels. NAR Chief Economist Lawrence Yun stated, "The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy."
Home Price
Homes prices were down, with a 5.1% drop in August compared to a year ago. The national median price for homes in August was $168,300, with distressed properties, foreclosures, and short sales still accounting for 31% of sales. The buyer's market for residential property continues, as favorable prices, and record low interest rates offer the most affordable conditions for purchasing a home in the last 40 years.
Inventory
The supply of homes measured in months on the market at their current pace of sales fell 10.5% in the month of August, to an 8.5 month supply of inventory, down from a 9.5-month supply in July. With homes being more affordable than they have been in a generation and the lowest levels of new home construction since World War II, this inventory is projected to continue to fall, which will eventually result in the appreciation of home prices and a move toward a balanced market.
Distressed Properties and What They Mean to You
Since affordable pricing tops the list of motivation and criteria for buying, it is no surprise that many first-time home buyers purchase distressed properties, which can be up to 30% below market value. Cost-conscious buyers are the most interested in distressed properties, but it is important for them to take into consideration the additional costs and expenses related to damage or neglect that occurred during the foreclosure process. On average, distressed property prices for first-time home buyers are $185,971 with a median of $153,000. Another consideration for buyers is the transaction time. Short sales and foreclosures typically take considerably longer to close because buyers deal with institutions rather than individual sellers. Yet buyers who are patient can benefit by paying less. As a seller, it is important to understand the current real estate market, and a real estate agent is there to guide sellers every step of the way. Agents can help sellers understand what the level of distressed sales and competition look like in their area. This way, they will be able to price their home right and will more than likely be able to attract attention from potential home buyers.
Each Office is Independently Owned and Operated.

Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report. The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

This email was sent by Laura Dickenson of Keller Williams - Franklin, TN 9175 Carothers Parkway #110 Franklin, TN , 37067

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You deserve GREAT results!

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Laura Dickenson http://laura.thedickensongroup.com laura@thedickensongroup.com (615)778-1818 (Office) Keller Williams - Franklin, TN 9175 Carothers Parkway #110 Franklin, TN 37067	Have you ever wondered why some of the nicest houses in the neighborhood seem to stay on the market forever? Or why some of your neighbors seem to settle for less than their home is probably worth? The right real estate agent is critical. In today's market, it's more important than ever that you choose to work with an agent that has the knowledge and systems to get you the most money for your house, including: As your local real estate expert, I understand: How to set a price that will attract the most buyers The most likely buyer for your home and how best to reach them What features buyers are looking for and expect from the homes in your neighborhood What marketing techniques are driving the most buyer traffic Why settle for an agent who will simply put a "For Sale" sign in your yard, when you could have one that will get the "SOLD" sign up as soon as possible! As your local real estate expert, I would be honored to work with you on your next move. Sincerely, Laura Dickenson
Each Office is Independently Owned and Operated.

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It's opportunity time!

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Laura Dickenson http://laura.thedickensongroup.com laura@thedickensongroup.com (615)778-1818 (Office) Keller Williams - Franklin, TN 9175 Carothers Parkway #110 Franklin, TN 37067	I found this video and thought it might surprise you. It's less than a minute long, so check it out! As always, please be sure to share my contact information with anyone you know who may need real estate advice. Sincerely, Laura Dickenson
Each Office is Independently Owned and Operated.

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This Month in Real Estate - September Edition

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Laura Dickenson http://laura.thedickensongroup.com laura@thedickensongroup.com (615)778-1818 (Office) Keller Williams - Franklin, TN 9175 Carothers Parkway #110 Franklin, TN 37067	September 2011 Market Update The U.S. housing market has shown notable stability in 2011 compared to the previous two years when the tax credit made a clear impact. Although recent economic indicators have been less than expected, including a downward revision of GDP and consumer confidence that mirrors early 2009, owning a home is still valued by the majority of Americans. 72% of renters say owning is a top priority for their future, up from 68% a year earlier. However, most aspiring homeowners are held back by two main factors: funds for a down payment (82%) and confidence in their job security (80%). Federal Reserve Chair Ben Bernanke emphasized the importance of a healthy housing market to a robust recovery. He stressed the adverse effects of tighter credit conditions for borrowers, urging Congress to take tax and policy measures to help stabilize the market. He also noted the significance of addressing long-term fiscal policies including debt levels, upcoming expenses to support an aging population, and taxes. Buyers continue to benefit from historically favorable buying conditions, and sellers are encouraged by increased market stability. Although the Fed made a commitment to keep its interest rate at the current level until mid-2013, mortgage rates can, and often do, still fluctuate. In the midst of these reports, it is important to keep in mind the path to recovery was always expected to be a long and uneven road. As we progress toward a stronger recovery, economic improvement typically spurs rising interest rates in order to keep inflation in line.
This Month's Video	Interest Rates
	Mortgage rates hit a new record low in August of 4.15%, primarily due to uncertainty in the global and domestic economies. While these incredible rates represent a significant savings for home buyers, experts note that for the benefits to be fully realized, lending conditions must loosen to enable more buyers to take advantage of them. As overall economic activity gets back on track, rates will likely rise to keep inflation in check. In other words, the window of opportunity for buyers to lock in these historically low interest rates will not last forever.
Home Sales
Home sales in July were up by 21% from the same month last year when the expiration of the tax credit resulted in a significant drop in sales. However, they were down 3.5% compared to June. This could be due in part to NAR's report that 16% of members experienced a contract failure from issues in underwriting and appraisals during July. NAR President Ron Phipps states, "For both mortgage credit and home appraisals, there's been a parallel pendulum swing from very loose standards, which led to the housing boom, to unnecessarily restrictive practices as an overreaction to the housing correction."
Home Price
Home prices dipped by less than 1% in July with median home price at $174,000. This is 4.5% below the year-ago level which followed a strong spring season of sales driven by the tax credit. Median home prices remain close to 2002–2003 levels. Distressed sales continue to count for almost 1 in 3 homes sold. The combination of low prices and record-breaking low interest rates means that home affordability is extremely favorable.
Inventory
The supply of homes measured in months on the market at their current pace of sales was up slightly during July compared to June. This is in keeping with historical trends, which show that inventory levels typically rise during the summer months. The month's supply remained 25% below the peak of 12.5 months in July 2010 and 13% above April of 2010 when the home buyer tax credit was in full swing.
Home Updates
As the weather gets cooler, some homeowners could be considering undertaking home renovations or updates before the holiday season. Here are a few findings about updates and home sales: • Homeowners typically spend considerably more on updates to their home when planning to live in and enjoy it, with an average of nearly $9,000. • In contrast, they only spend an average of $3,400 when making updates in preparation to sell. • The most common updates sellers performed before listing were paint, flooring, and light fixtures. • Although the majority of buyers were least likely to compromise on the location, 16% were least likely to compromise on updates. • 75% of homes sold were either fairly updated or very updated. • Sellers began repairing their home 1 to 8 weeks in advance of listing.
Each Office is Independently Owned and Operated.

Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report. The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

This email was sent by Laura Dickenson of Keller Williams - Franklin, TN 9175 Carothers Parkway #110 Franklin, TN , 37067

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Thinking about investing in real estate?

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Laura Dickenson http://laura.thedickensongroup.com laura@thedickensongroup.com (615)778-1818 (Office) Keller Williams - Franklin, TN 9175 Carothers Parkway #110 Franklin, TN 37067	Have you ever thought about investing in real estate? Investing in real estate is an incredible long-term investment opportunity. And, in this shifting real estate market, you may be able to purchase investment real estate that will secure your financial goals for the long term. I keep a current list of "Investor Best Buys" that I would like to share with you. Investing in real estate may not be the right fit for you today, but we won't know for sure until we sit down to discuss it. Sincerely, Laura Dickenson
Each Office is Independently Owned and Operated.

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Finding the RIGHT resources...

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Laura Dickenson http://laura.thedickensongroup.com laura@thedickensongroup.com (615)778-1818 (Office) Keller Williams - Franklin, TN 9175 Carothers Parkway #110 Franklin, TN 37067	Searching for your next home involves a lot more than just picking the right house. It also means shopping for the right loan, the right movers, the right inspector and the right contractor to do the repairs. So, how do you find the "right" resources? Call me! Throughout my years in the business, I have made some connections with the best in their business, and am now proud to refer them to anyone who is looking for their services. Many of my clients have used these professionals in the past and have been very satisfied. Call or email me if you'd like me to make an introduction for you! Sincerely, Laura Dickenson
Each Office is Independently Owned and Operated.

This email was sent by Laura Dickenson of Keller Williams - Franklin, TN 9175 Carothers Parkway #110 Franklin, TN , 37067

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