Awesome News!!! National home prices continue to rise, according to Case-Shiller. To find out if your area's home prices have stabilized give me a call 801.243.8202.
MIAMI (AP) — Home prices rose for the sixth straight month in November, with 14 of 20 metro areas posting improvements from the month before.
The Standard & Poor's/Case-Shiller home price index released Tuesday inched up 0.2 percent to a seasonally adjusted reading of 145.49. The index was off 5.3 percent from November last year, nearly matching analyst's estimates that it would fall by 5.1 percent.
The index is now up 3.4 percent from its bottom in May, but still 30 percent below its peak in May 2006.
Phoenix and San Francisco posted the highest month-to-month gains on a seasonally adjusted basis, while New York and Chicago had the largest declines.
Recent price gains have been fueled by a federal tax credit for first-time homebuyers, who rushed to purchase homes ahead of a Nov. 30 deadline. Congress eventually extended the deadline into the spring, and expanded the program to include a tax credit for current homeowners.
While prices have risen steadily on a national basis, some economists predict they will dip again early this year because of high unemployment and foreclosures.
"Until we get job growth, we won't get complete healing of the housing market," said Jeff Humphreys, an economist with the University of Georgia.
Humphreys said data for December and January could show price declines due to a lull in buyer activity after the tax credit was extended.
Rising prices are important to the economic recovery because they make homeowners feel wealthier and lead them to spend more money. They also help millions of homeowners who owe more to the banks than their houses are worth.
Wednesday, January 27, 2010
Thursday, January 21, 2010
Only 100 Days left to claim the $8,000 or $6,500 tax credit for new home owners
There are a few changes you need to be aware of regarding FHA purchase:
* Max seller concessions is now 3% max ( use to be 6% )
* Clients with a fico score of 580 will need to put down 10% ( Not many companies will do these loans anyway so not a big deal )
* Remember, only 100 Days left to claim the $8000 tax credit for new home owners
November 6, 2009, Congress voted to extend and expand the First-Time Home Buyer Tax Credit program. The expiration date of the up-to-$8,000 tax credit has been pushed forward to spring, requiring home buyers to be under contract for a home no later than April 30, 2010, and to be closed no later than June 30, 2010.
In addition, “move-up” buyers were also added to the program’s eligibility list meaning you don’t have to be a first-time home buyer to be eligible for the tax credit. If you’ve lived in your home for 5 of the last 8 years, you meet the IRS requirements.Move-up buyers are capped at a total tax credit of $6,500.
* The tax credit’s basic eligibility requirements remain the same:
* You can’t purchase the home from a parent, spouse, or child
* You can’t purchase the home from an entity in which they’re a majority owner
* You can’t acquire the home by gift or inheritance
* All parties to the purchase must meet eligibility requirements
The new law includes some notable updates. First, the subject property’s sales price may not exceed $800,000. Homes sold for more than $800,000 are ineligible. Also, household income thresholds have been raised to $125,000 for single-filers and $225,500 for joint-filers.
And lastly, don’t forget that the program is a true tax credit — not a deduction. This means that a tax filer who’s eligible for the full $8,00 credit and whose “normal” tax liability totals $5,000 would receive a $3,000 refund from the U.S. Treasury at tax time.
The complete list of qualifying criteria is posted on the IRS website. Review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2010.
Have a great day, and let me assist you in the purchase of your new home!
Information aquired from:
Mike Yancey, Senior Loan Officer
801-747-1224 Office . 801-755-5359 Mobile
* Max seller concessions is now 3% max ( use to be 6% )
* Clients with a fico score of 580 will need to put down 10% ( Not many companies will do these loans anyway so not a big deal )
* Remember, only 100 Days left to claim the $8000 tax credit for new home owners
November 6, 2009, Congress voted to extend and expand the First-Time Home Buyer Tax Credit program. The expiration date of the up-to-$8,000 tax credit has been pushed forward to spring, requiring home buyers to be under contract for a home no later than April 30, 2010, and to be closed no later than June 30, 2010.
In addition, “move-up” buyers were also added to the program’s eligibility list meaning you don’t have to be a first-time home buyer to be eligible for the tax credit. If you’ve lived in your home for 5 of the last 8 years, you meet the IRS requirements.Move-up buyers are capped at a total tax credit of $6,500.
* The tax credit’s basic eligibility requirements remain the same:
* You can’t purchase the home from a parent, spouse, or child
* You can’t purchase the home from an entity in which they’re a majority owner
* You can’t acquire the home by gift or inheritance
* All parties to the purchase must meet eligibility requirements
The new law includes some notable updates. First, the subject property’s sales price may not exceed $800,000. Homes sold for more than $800,000 are ineligible. Also, household income thresholds have been raised to $125,000 for single-filers and $225,500 for joint-filers.
And lastly, don’t forget that the program is a true tax credit — not a deduction. This means that a tax filer who’s eligible for the full $8,00 credit and whose “normal” tax liability totals $5,000 would receive a $3,000 refund from the U.S. Treasury at tax time.
The complete list of qualifying criteria is posted on the IRS website. Review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2010.
Have a great day, and let me assist you in the purchase of your new home!
Information aquired from:
Mike Yancey, Senior Loan Officer
801-747-1224 Office . 801-755-5359 Mobile
Wednesday, January 13, 2010
Home builders press ahead from tough 2009
By Lesley Mitchell
The Salt Lake Tribune
Updated: 01/13/2010 12:14:12 AM MST
For home builders along the Wasatch Front, 2009 was one of the worst years ever -- but a step up from a particularly dismal 2008.
Builders took out permits for the construction of 4,337 single-family homes last year, up from a low of 3,992 in 2008. But home-building activity in the state's most populous area is still off from a peak of more than 15,400 permits in 2005, according to a report by Construction Monitor, a service that tracks activity throughout the West.
Hundreds of small builders have gone out of business in recent years, and those remaining are focusing on first-time buyers and setting prices in the $300,000-and-under range.
"We've definitely seen the bottom, and we're going to see some improvement this year, but I don't think we're going to go back anytime soon the levels of construction activity we saw in 2006 and 2007," Clark Ivory of Ivory Homes said Tuesday.
Ivory believes his company will see a 12 percent increase in closings this year, compared with 2009. But even with the increase, Ivory would be building at 2002-2003 levels.
"People this year will be motivated by (low) interest rates and tax credits," Ivory said.
But mortgage rates, which hit historic lows last year, are expected to inch ever higher. And federal income tax credits for buyers as high as $8,000 apply only to those who go under contract by the end of April.
Most economists agree the federal incentive and low interest rates have had a positive impact on the home-building industry nationwide.
Set to expire Nov. 30, the federal income tax credit has since been extended to first-time buyers (or anyone who hasn't owned a home in the past three years) who sign on the dotted line as late as April 30. It's also been expanded to include a $6,500 incentive for repeat buyers.
A state-level incentive that helped further motivate buyers in Utah last year, is no longer available. About 1,650 grants worth $6,000 each were quickly claimed by new home buyers as part of the state's "Home Run" program. A second round of 1,400 grants worth $4,000 also went quickly. Unlike the federal incentive, which applies to buyers of new and existing homes, the Home Run program was geared specifically toward buyers of properties never before occupied.
Like the new-home sector, the existing-home market has received a boost from the federal incentives and also is poised for a rebound. But it is expected to be just as tepid.
In its 2010 Housing Forecast released this week, the Salt Lake Board of Realtors predicts sales of existing homes this year along the Wasatch Front could increase as much as 10 percent compared to 2009.
Home prices are another matter. The cost of an existing single-family house is already off 13 percent from its peak three years ago and sits at a median sales price of $222,000, the board says. And the prediction for this year is that prices probably will fall another 3 percent to 5 percent.
"I think we're going to see a year of downward pressure on prices, and then it should stabilize in 2011 and begin to inch back up, but nothing like what we've seen before," said Bill Heiner, president of the Salt Lake Board of Realtors. He was referring to the 2005-2007 time period, when many areas posted double digit home-price gains.
In the new-home sector, Utah's Ivory Homes remained the top builder along the Wasatch Front last year, according to Construction Monitor, with permits issued for the construction of 444 single-family units.
Utah County-based Salisbury Development, which focuses on entry-level housing, was a distant No. 2, with 228 units. Richmond American, part of Denver-based MDC. Holdings, Inc. , which has struggled along with many of the other nation's builders, was No. 3.
North Salt Lake-based Woodside Homes, which filed for Chapter 11 bankruptcy reorganization in 2008, is No. 4. Neither Salisbury, Woodside or Richmond American representatives immediately returned calls seeking comment.
Fort Worth, Texas-based DR Horton, which has been trying to carve a niche in Utah, rounded out the top 5.
Homebuilding: A slight rebound
Builders took out permits for the construction of 15,428 single-family homes along the Wasatch Front in 2005, a peak building year. Building activity hit a low of just under 4,000 units in 2008, but thanks to unprecedented federal home-buying incentives, the industry experienced a slight rebound last year.
2009: 4,337
2008: 3,992
2007: 9,898
2006: 15,370
2005: 15,428
Source: Construction Monitor
The Salt Lake Tribune
Updated: 01/13/2010 12:14:12 AM MST
For home builders along the Wasatch Front, 2009 was one of the worst years ever -- but a step up from a particularly dismal 2008.
Builders took out permits for the construction of 4,337 single-family homes last year, up from a low of 3,992 in 2008. But home-building activity in the state's most populous area is still off from a peak of more than 15,400 permits in 2005, according to a report by Construction Monitor, a service that tracks activity throughout the West.
Hundreds of small builders have gone out of business in recent years, and those remaining are focusing on first-time buyers and setting prices in the $300,000-and-under range.
"We've definitely seen the bottom, and we're going to see some improvement this year, but I don't think we're going to go back anytime soon the levels of construction activity we saw in 2006 and 2007," Clark Ivory of Ivory Homes said Tuesday.
Ivory believes his company will see a 12 percent increase in closings this year, compared with 2009. But even with the increase, Ivory would be building at 2002-2003 levels.
"People this year will be motivated by (low) interest rates and tax credits," Ivory said.
But mortgage rates, which hit historic lows last year, are expected to inch ever higher. And federal income tax credits for buyers as high as $8,000 apply only to those who go under contract by the end of April.
Most economists agree the federal incentive and low interest rates have had a positive impact on the home-building industry nationwide.
Set to expire Nov. 30, the federal income tax credit has since been extended to first-time buyers (or anyone who hasn't owned a home in the past three years) who sign on the dotted line as late as April 30. It's also been expanded to include a $6,500 incentive for repeat buyers.
A state-level incentive that helped further motivate buyers in Utah last year, is no longer available. About 1,650 grants worth $6,000 each were quickly claimed by new home buyers as part of the state's "Home Run" program. A second round of 1,400 grants worth $4,000 also went quickly. Unlike the federal incentive, which applies to buyers of new and existing homes, the Home Run program was geared specifically toward buyers of properties never before occupied.
Like the new-home sector, the existing-home market has received a boost from the federal incentives and also is poised for a rebound. But it is expected to be just as tepid.
In its 2010 Housing Forecast released this week, the Salt Lake Board of Realtors predicts sales of existing homes this year along the Wasatch Front could increase as much as 10 percent compared to 2009.
Home prices are another matter. The cost of an existing single-family house is already off 13 percent from its peak three years ago and sits at a median sales price of $222,000, the board says. And the prediction for this year is that prices probably will fall another 3 percent to 5 percent.
"I think we're going to see a year of downward pressure on prices, and then it should stabilize in 2011 and begin to inch back up, but nothing like what we've seen before," said Bill Heiner, president of the Salt Lake Board of Realtors. He was referring to the 2005-2007 time period, when many areas posted double digit home-price gains.
In the new-home sector, Utah's Ivory Homes remained the top builder along the Wasatch Front last year, according to Construction Monitor, with permits issued for the construction of 444 single-family units.
Utah County-based Salisbury Development, which focuses on entry-level housing, was a distant No. 2, with 228 units. Richmond American, part of Denver-based MDC. Holdings, Inc. , which has struggled along with many of the other nation's builders, was No. 3.
North Salt Lake-based Woodside Homes, which filed for Chapter 11 bankruptcy reorganization in 2008, is No. 4. Neither Salisbury, Woodside or Richmond American representatives immediately returned calls seeking comment.
Fort Worth, Texas-based DR Horton, which has been trying to carve a niche in Utah, rounded out the top 5.
Homebuilding: A slight rebound
Builders took out permits for the construction of 15,428 single-family homes along the Wasatch Front in 2005, a peak building year. Building activity hit a low of just under 4,000 units in 2008, but thanks to unprecedented federal home-buying incentives, the industry experienced a slight rebound last year.
2009: 4,337
2008: 3,992
2007: 9,898
2006: 15,370
2005: 15,428
Source: Construction Monitor
Utah outlook on housing is improving
By Jasen Lee
Deseret News
The Wasatch Front housing market has been on a historic roller coaster ride for the better part of the past decade, reaching its pinnacle just over two years ago. A new report indicates that wild market ride may finally be "pulling into the station" this year, offering some hope to wearied consumers, Realtors and other industry insiders.
"In Salt Lake County, we've probably touched bottom in 2009 and we're going to see a slight improvement in 2010," Jim Wood, director of the University of Utah's Bureau of Economic and Business Research and author of the "2010 Salt Lake Housing Forecast," told the Deseret News.
Wood said while the new year might eventually see some growth in new single-family home sales and construction, the previous year was among the most challenging on record.
"In 2009, only 900 new single-family homes were built in Salt Lake County — the lowest level since the war years of the 1940s — while about 9,100 existing single-family homes were sold," he said in the report, released Monday.
He added that existing homes for sale make up the disproportionate amount of inventory currently on the market, which should continue to work in favor of buyers during 2010.
Consequently, Salt Lake County home sales this year will show some slight improvement over last year, he said in the report.
The report showed that median housing prices in the Salt Lake metropolitan area peaked during the third quarter of 2007 at $246,600, dropping just over 11 percent over a two-year period to $218,900.
For Salt Lake County, the median value peaked at $254,900 during the 2007 third quarter before falling nearly 10 percent to $230,000 in the third quarter of 2009.
Wood predicted that home values along the Wasatch Front would continue to decline this year, falling another 3 percent to 5 percent.
"This will bring the decline in median sales price of homes in Salt Lake County to 15 percent through 2010," he said in the report. "By then, the price declines should be over, replaced by stable to slightly improving prices in 2011."
As for the current number of unsold inventory left available in the wake of the statewide housing crisis, another local analyst is optimistic the tide is beginning to change.
Speaking at the 2010 Salt Lake Housing Forecast breakfast Monday at the Little America Hotel in downtown Salt Lake City, Arthur "Chris" Nelson, presidential professor of city and metropolitan planning at the University of Utah and director of the Metropolitan Research Center, told the audience of about 800 real estate professionals that demand in the Utah housing market is on the upswing, as is the state's overall population.
"Between 2010 and 2011, we're going to have to build 100,000 new housing units in Utah to meet the needs of pent-up demand and growth by the end of 2011," Nelson said.
He said while that kind of construction is unlikely to occur in the near term, it demonstrates the long-term viability of the state's housing market.
"This is going to be the year of a slow uptick," he said.
"The bottom has passed and we are going to be inching up, and 2011 and 2012 are going to be extraordinary years for homebuilding."
Deseret News
The Wasatch Front housing market has been on a historic roller coaster ride for the better part of the past decade, reaching its pinnacle just over two years ago. A new report indicates that wild market ride may finally be "pulling into the station" this year, offering some hope to wearied consumers, Realtors and other industry insiders.
"In Salt Lake County, we've probably touched bottom in 2009 and we're going to see a slight improvement in 2010," Jim Wood, director of the University of Utah's Bureau of Economic and Business Research and author of the "2010 Salt Lake Housing Forecast," told the Deseret News.
Wood said while the new year might eventually see some growth in new single-family home sales and construction, the previous year was among the most challenging on record.
"In 2009, only 900 new single-family homes were built in Salt Lake County — the lowest level since the war years of the 1940s — while about 9,100 existing single-family homes were sold," he said in the report, released Monday.
He added that existing homes for sale make up the disproportionate amount of inventory currently on the market, which should continue to work in favor of buyers during 2010.
Consequently, Salt Lake County home sales this year will show some slight improvement over last year, he said in the report.
The report showed that median housing prices in the Salt Lake metropolitan area peaked during the third quarter of 2007 at $246,600, dropping just over 11 percent over a two-year period to $218,900.
For Salt Lake County, the median value peaked at $254,900 during the 2007 third quarter before falling nearly 10 percent to $230,000 in the third quarter of 2009.
Wood predicted that home values along the Wasatch Front would continue to decline this year, falling another 3 percent to 5 percent.
"This will bring the decline in median sales price of homes in Salt Lake County to 15 percent through 2010," he said in the report. "By then, the price declines should be over, replaced by stable to slightly improving prices in 2011."
As for the current number of unsold inventory left available in the wake of the statewide housing crisis, another local analyst is optimistic the tide is beginning to change.
Speaking at the 2010 Salt Lake Housing Forecast breakfast Monday at the Little America Hotel in downtown Salt Lake City, Arthur "Chris" Nelson, presidential professor of city and metropolitan planning at the University of Utah and director of the Metropolitan Research Center, told the audience of about 800 real estate professionals that demand in the Utah housing market is on the upswing, as is the state's overall population.
"Between 2010 and 2011, we're going to have to build 100,000 new housing units in Utah to meet the needs of pent-up demand and growth by the end of 2011," Nelson said.
He said while that kind of construction is unlikely to occur in the near term, it demonstrates the long-term viability of the state's housing market.
"This is going to be the year of a slow uptick," he said.
"The bottom has passed and we are going to be inching up, and 2011 and 2012 are going to be extraordinary years for homebuilding."
Wednesday, December 30, 2009
Men's Health ranks Salt Lake City Top #3 in Nation
Mens Health Mag ranks Salt Lake City #3 on the list for best cities for men to live in 2010.
Salt Lake City, UT: Men's Health.com
Salt Lake City, UT: Men's Health.com
Tuesday, December 15, 2009
Real Estate Franchises: Most Recognizable Brands for 2009
I JUST MADE THE RIGHT MOVE, KELLER WILLIAMS IS #1.
by Stefan Swanepoel
11,000+ Agents Cast 390,000 Votes to Select the Top 10
It’s been almost 40 years since franchising entered the residential real estate industry; a move that has shaped the industry like few other concepts or strategies before or since. The impact of franchising ranks with MLS and the Internet as the top three game changing strategies in real estate since WW II.
Today there are a growing number of agents questioning the value proposition of real estate franchising. They point to some of the “older models” that seem to offer little more than a brand; a brand of questioned value in today’s online world. A franchise company’s long term success (or failure) is therefore dependent upon both its model standing the test of time and its implementation systems supporting the local franchisee in successfully putting those models into operation.
In the 2010 Swanepoel TRENDS Report, scheduled for publication on February 8th, 2010 — reserve a copy now at www.RETrends.com) — a whole trend is dedicated to analyzing real estate franchising. The trend discusses the changes that have occurred during the last year including bankruptcies, acquisitions, large mergers, the re-introduction of previously dormant franchise brands and the launch of several new ones.
The Report details the Top 20 largest franchises based on agent count as of December 2009, inclusive of recent changes and acquisitions up and including that date.
However, as an additional test RealSure (www.realsure.com), the publishers of the Swanepoel TRENDS Report and the Swanepoel SOCIAL MEDIA Report, decided that it would be interesting to compare agent count rankings with the perception and recognizability of franchise brands by the industry itself.
So on Thursday December 3rd a nationwide online survey was launched to determine the “Most Recognizable Franchise Brand in Real Estate.”
With real estate agents being independent contractors and fiercely loyal to their respective brand the vote quickly garnished huge attention. It went viral through various social media networks, blogs and emails encouraging agents to vote.
In the end an astonishing 11,355 agents voted, casting just over 390,000 votes for 33 different real estate franchise brands making this — according to knowledge — the largest survey of its kind in the industry. The survey required real estate professionals to vote for a franchise on a scale from 0 – 5; starting from “Never heard of the brand” all the way up to “Excellent brand.” The brand’s scores in all categories were taken into consideration to determine the overall rankings. In the end there was a significant difference in the vote count between most of the top 10, thereby solidifying the placement of the brands.
Although another survey can produce different results and rankings, we are confident that this is a very good reflection of the real estate brokerage industry’s current opinion and awareness of the franchise brands that serve them.
The Top 10 real estate franchises, most recognized by the real estate industry as quality national brands are:
1.Keller Williams Realty
2.Coldwell Banker Real Estate
3.RE/MAX International
4.Century 21 Real Estate
5.Prudential Real Estate
6.Sotheby’s International Realty
7.EXIT Realty
8.ERA Real Estate
9.Weichert Real Estate Affiliates
10.Better Homes & Gardens Real Estate
The franchises that made it to the Top 5 were to be expected and are also the five largest real estate franchises in the country. The Top 5 also comfortably attracted more votes than the second five on the list, strongly pointing to the industry’s own internal belief that these are the top five franchise brands that agents would like to work for.
Keller Williams Realty’s surprising #1 ranking was most likely due to the strong, above average online and social media presence of their agents and the fact that during 2009 KW surpassed RE/MAX in agent count according to a widely published REAL Trends survey..
The 103-year old Coldwell Banker franchise has been the beneficiary of many NRT, Inc. acquisitions that have allowed the brand to remain at the forefront of many agents in a positive way. RE/MAX with their powerful consumer portal has also enjoyed the highest profile on national television of all the brands, thereby probably contributing to their high ranking.
Most interesting was the strong showing of Sotheby’s International Realty at #6, ahead of ERA Real Estate (a more established brand in real estate) and EXIT Realty (a more bolder promoter). The ranking was most likely attributed to the luxury homes image that many agents attach to the brand.
Long standing independent and northeast-based regional Weichert REALTORS converted to a franchise seven years ago and has steadily grown. Impressively it was able to break into the top 10 as a recognizable national brand.
Also surprising was the fact that newcomer Better Homes & Gardens squeezed out companies like Realty Executives, John L Scott and Windermere (both still regional players) to claim the last spot in the Top 10. This was most likely attributable to the recent news that 2,000-agent Metro Brokers switched from GMAC to BH&G as well as a few other key acquisitions.
The housing market is smaller than it was three years ago, yet we have more franchisors today than we did back then. Clearly the market is over saturated and yet the franchises reflected on this list are, according to thousands of agents that work for them and for their competitors, the best of the best.
At the end of the day, real estate brokers and agents want and need different kinds of support and thus different franchisors will attract different brokers and agents. For a detailed discussion on franchising, what the 7 key different types of real estate franchises are and which of the strategies currently work the best, read the 2010 Swanepoel TRENDS Report. Secure your copy at a special pre-publication discount of 34% when ordering at http://www.realestatebooks.org/items/Swanepoel_TRENDS_Report_2010.htm
Survey methodology:
The poll was conducted online within the United States between December 3rd and December 11th, 2009 among 11,355 real estate professionals.
All surveys and polls are subject to multiple sources of error that are not possible to quantify. Especially with online polls the errors associated with wording, selection, exposure and attempts to manipulate the vote make it very difficult to guarantee results. Post-survey weighting and adjustments are made to adjust for irregularities found in the voting but we avoid using the term “margin of error” as we feel it is still misleading.
Due to the very large number of real estate professionals that voted it is felt that the results closely reflect the opinion of the majority in the industry.
by Stefan Swanepoel
11,000+ Agents Cast 390,000 Votes to Select the Top 10
It’s been almost 40 years since franchising entered the residential real estate industry; a move that has shaped the industry like few other concepts or strategies before or since. The impact of franchising ranks with MLS and the Internet as the top three game changing strategies in real estate since WW II.
Today there are a growing number of agents questioning the value proposition of real estate franchising. They point to some of the “older models” that seem to offer little more than a brand; a brand of questioned value in today’s online world. A franchise company’s long term success (or failure) is therefore dependent upon both its model standing the test of time and its implementation systems supporting the local franchisee in successfully putting those models into operation.
In the 2010 Swanepoel TRENDS Report, scheduled for publication on February 8th, 2010 — reserve a copy now at www.RETrends.com) — a whole trend is dedicated to analyzing real estate franchising. The trend discusses the changes that have occurred during the last year including bankruptcies, acquisitions, large mergers, the re-introduction of previously dormant franchise brands and the launch of several new ones.
The Report details the Top 20 largest franchises based on agent count as of December 2009, inclusive of recent changes and acquisitions up and including that date.
However, as an additional test RealSure (www.realsure.com), the publishers of the Swanepoel TRENDS Report and the Swanepoel SOCIAL MEDIA Report, decided that it would be interesting to compare agent count rankings with the perception and recognizability of franchise brands by the industry itself.
So on Thursday December 3rd a nationwide online survey was launched to determine the “Most Recognizable Franchise Brand in Real Estate.”
With real estate agents being independent contractors and fiercely loyal to their respective brand the vote quickly garnished huge attention. It went viral through various social media networks, blogs and emails encouraging agents to vote.
In the end an astonishing 11,355 agents voted, casting just over 390,000 votes for 33 different real estate franchise brands making this — according to knowledge — the largest survey of its kind in the industry. The survey required real estate professionals to vote for a franchise on a scale from 0 – 5; starting from “Never heard of the brand” all the way up to “Excellent brand.” The brand’s scores in all categories were taken into consideration to determine the overall rankings. In the end there was a significant difference in the vote count between most of the top 10, thereby solidifying the placement of the brands.
Although another survey can produce different results and rankings, we are confident that this is a very good reflection of the real estate brokerage industry’s current opinion and awareness of the franchise brands that serve them.
The Top 10 real estate franchises, most recognized by the real estate industry as quality national brands are:
1.Keller Williams Realty
2.Coldwell Banker Real Estate
3.RE/MAX International
4.Century 21 Real Estate
5.Prudential Real Estate
6.Sotheby’s International Realty
7.EXIT Realty
8.ERA Real Estate
9.Weichert Real Estate Affiliates
10.Better Homes & Gardens Real Estate
The franchises that made it to the Top 5 were to be expected and are also the five largest real estate franchises in the country. The Top 5 also comfortably attracted more votes than the second five on the list, strongly pointing to the industry’s own internal belief that these are the top five franchise brands that agents would like to work for.
Keller Williams Realty’s surprising #1 ranking was most likely due to the strong, above average online and social media presence of their agents and the fact that during 2009 KW surpassed RE/MAX in agent count according to a widely published REAL Trends survey..
The 103-year old Coldwell Banker franchise has been the beneficiary of many NRT, Inc. acquisitions that have allowed the brand to remain at the forefront of many agents in a positive way. RE/MAX with their powerful consumer portal has also enjoyed the highest profile on national television of all the brands, thereby probably contributing to their high ranking.
Most interesting was the strong showing of Sotheby’s International Realty at #6, ahead of ERA Real Estate (a more established brand in real estate) and EXIT Realty (a more bolder promoter). The ranking was most likely attributed to the luxury homes image that many agents attach to the brand.
Long standing independent and northeast-based regional Weichert REALTORS converted to a franchise seven years ago and has steadily grown. Impressively it was able to break into the top 10 as a recognizable national brand.
Also surprising was the fact that newcomer Better Homes & Gardens squeezed out companies like Realty Executives, John L Scott and Windermere (both still regional players) to claim the last spot in the Top 10. This was most likely attributable to the recent news that 2,000-agent Metro Brokers switched from GMAC to BH&G as well as a few other key acquisitions.
The housing market is smaller than it was three years ago, yet we have more franchisors today than we did back then. Clearly the market is over saturated and yet the franchises reflected on this list are, according to thousands of agents that work for them and for their competitors, the best of the best.
At the end of the day, real estate brokers and agents want and need different kinds of support and thus different franchisors will attract different brokers and agents. For a detailed discussion on franchising, what the 7 key different types of real estate franchises are and which of the strategies currently work the best, read the 2010 Swanepoel TRENDS Report. Secure your copy at a special pre-publication discount of 34% when ordering at http://www.realestatebooks.org/items/Swanepoel_TRENDS_Report_2010.htm
Survey methodology:
The poll was conducted online within the United States between December 3rd and December 11th, 2009 among 11,355 real estate professionals.
All surveys and polls are subject to multiple sources of error that are not possible to quantify. Especially with online polls the errors associated with wording, selection, exposure and attempts to manipulate the vote make it very difficult to guarantee results. Post-survey weighting and adjustments are made to adjust for irregularities found in the voting but we avoid using the term “margin of error” as we feel it is still misleading.
Due to the very large number of real estate professionals that voted it is felt that the results closely reflect the opinion of the majority in the industry.
Monday, December 14, 2009
If You Don't Buy a House Now, You're Stupid or Broke
By Marc Roth
Interest rates are at historic lows but cyclical trends suggest they will soon rise. Home buyers may never see such a chance again, writes Marc Roth.
Well, you may not be stupid or broke. Maybe you already have a house and you don't want to move. Or maybe you're a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates.
As of today, the average 30-year fixed-rate loan with no points or fees is around 5%. That, as the graph above—which you can find on Mortgage-X.com—shows, is the lowest the rate has been in nearly 40 years.
In fact, rates are so well below historic averages that it should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.
And it is exactly that, based on what the graph shows us. Let's look at the point on the far left.
In 1970 the rate was approximately 7.25%. After hovering there for a couple of years, it began a trend upward, landing near 10% in late 1973. It settled at 8.5% to 9% from 1974 to the end of 1976. After the rise to 10%, that probably seemed O.K. to most home buyers.
But they weren't happy soon thereafter. From 1977 to 1981, a period of only 60 months, the 30-year fixed rate climbed to 18%. As I mentioned in one of my previous articles, my dad was one of those unluckily stuck needing a loan at that time.
Interest Rate Lessons
And when rates started to decline after that, they took a long time to recede to previous levels. They hit 9% for a brief time in 1986 and bounced around 10% to 11% until 1990. For the next 11 years through 2001, the rates slowly ebbed and flowed downward, ranging from 7% to 9%. We've since spent the last nine years, until very recently, at 6% to 7%. So you can see why 5% is so remarkable.
So, what can we learn from the historical trends and numbers?
First, rates have far further to move upward than downward; for more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.
Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low.
Finally, the most important lesson is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home.
Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let's assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.
Loan Costs
Stay with me now. We are at 5%. As you can see by the graph above, as the economy stabilizes, it is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $50,000.
Let's put that into perspective. You have a good stable job (yes, unemployment is at 10%, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is "more stable" and it's safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.
If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you're borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.
What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.
Marc Roth is the founder and president of Home Warranty of America
Interest rates are at historic lows but cyclical trends suggest they will soon rise. Home buyers may never see such a chance again, writes Marc Roth.
Well, you may not be stupid or broke. Maybe you already have a house and you don't want to move. Or maybe you're a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates.
As of today, the average 30-year fixed-rate loan with no points or fees is around 5%. That, as the graph above—which you can find on Mortgage-X.com—shows, is the lowest the rate has been in nearly 40 years.
In fact, rates are so well below historic averages that it should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.
And it is exactly that, based on what the graph shows us. Let's look at the point on the far left.
In 1970 the rate was approximately 7.25%. After hovering there for a couple of years, it began a trend upward, landing near 10% in late 1973. It settled at 8.5% to 9% from 1974 to the end of 1976. After the rise to 10%, that probably seemed O.K. to most home buyers.
But they weren't happy soon thereafter. From 1977 to 1981, a period of only 60 months, the 30-year fixed rate climbed to 18%. As I mentioned in one of my previous articles, my dad was one of those unluckily stuck needing a loan at that time.
Interest Rate Lessons
And when rates started to decline after that, they took a long time to recede to previous levels. They hit 9% for a brief time in 1986 and bounced around 10% to 11% until 1990. For the next 11 years through 2001, the rates slowly ebbed and flowed downward, ranging from 7% to 9%. We've since spent the last nine years, until very recently, at 6% to 7%. So you can see why 5% is so remarkable.
So, what can we learn from the historical trends and numbers?
First, rates have far further to move upward than downward; for more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.
Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low.
Finally, the most important lesson is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home.
Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let's assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.
Loan Costs
Stay with me now. We are at 5%. As you can see by the graph above, as the economy stabilizes, it is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $50,000.
Let's put that into perspective. You have a good stable job (yes, unemployment is at 10%, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is "more stable" and it's safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.
If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you're borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.
What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.
Marc Roth is the founder and president of Home Warranty of America
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