Dave Griffith's Blog

Recent Quotes & Excerpts about the Positive Signs in the Real Estate Market:

Real Estate Numbers Looking Better … This Week

Ø Resales of existing homes jumped by 5.5 percent last week -- that was the largest monthly increase since July 2003, in the middle of the housing boom. In the western states, sales were up a record 34.4 percent!

Ø Sales of newly constructed homes also were higher in the latest month, according to the Census Bureau -- up by 2.7 percent on average nationwide, but by an impressive 22.7 percent in the West.

Ø A quarterly survey by the Wall Street Journal released last week found inventories down in a majority of the 18 markets studied.

Ø Across the country, the backlog of unsold but listed houses dropped 1.2 percent to a 9.4 month supply last month, according to the National Association of Realtors^® -- that was down from an 11 month supply the previous month.

Ø One week of good news does not mean we're officially in turnaround mode … But you've got to start connecting the dots. Week after week, month after month, housing and real estate numbers are starting to look better and better.

-- “Real Estate Outlook: Home Sales Rise,” by Kenneth R. Harney, Realty Times, Nov. 5, 2008.

A Sign that Home Buyers on Sidelines Want Back In

Due to falling real estate prices and rising foreclosures on the West Coast, sales of existing homes rose to its highest level in 13 months and highest percentage increase in five years, according to a report issued today by the National Association of Realtors (NAR).

Ø “This is the first time since November 2005 that home sales have been above year-ago levels. Credit tightened at the end of September, but the improvement demonstrates that buyers who’ve been on the sidelines want to get into the market to make a long-term investment in their future.” -- Richard F. Gaylord, NAR President and broker in Long Beach, Calif.

Ø “The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri and Rhode Island.” -- Lawrence Yun, NAR chief economist.

-- “Good News For Real Estate? Largest Monthly Home Sale Percentage Increase In 5 Years Reported,” RISMedia, National Association of Realtors^® press release, Oct. 27, 2008.

Existing Home Sales at Highest Levels Since August 2007

Ø “It’s still a great time to buy real estate when you look at the pricing in the marketplace. It is a good time for people to move up, move sideways or even move down.”

Ø “You have to be credit worthy to get a mortgage. You have to show that you pay your bills on time and you have to show that you have some money to put down. There is money out there and the interest rates are great.”

-- Tom Kunz, president & CEO, Century 21, “Good News For Housing?,” Fox Business News (video), Oct. 24, 2008.

Mortgage Rates Fall

Mortgage rates continued riding a seesaw this week, plunging one-third of a percentage point compared with the week before. The benchmark 30-year fixed-rate mortgage fell 33 basis points, to 6.44 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.35 discount and origination points.

-- “Mortgage Rates Plunge,” by Holden Lewis, Bankrate.com, Nov. 6,, 2008.

Regional Update: Good News from Markets around the Nation

Colorado

"This is the best buyers' market I've ever seen in 32 years with the industry. Financing is available for those who are qualified. Both government and conventional private sector loans are available.

“As the excess inventory in the lower prices are absorbed, we'll start to see activity in the move up markets. First-time homebuyers that bought six, eight, 10 years ago can now move up and afford a better, nicer, more expensive home. For now, the decline in interest rates and a significant rise in affordability may be enough to offset some of the other negative economic news.”

-- Steve Murray, CEO, Real Trends, “Housing Market Recovering At The Entry Level,” Denver Nine News, Oct. 29, 2008.

Springfield, Mo.

Springfield's housing market has remained largely unaffected by market turbulence and could be heading for an upturn once the national market stabilizes, area Realtors say.

-- “Bargains to be had locally for first-time home buyers,” by Ryan Colvard, News-Leader (Springfield, Missouri), Nov. 2, 2008.

South Florida
Broward and Palm Beach County saw double-digit sales gains from a year ago in sales of existing homes and condos in September, while prices continued to fall. Statewide, sales were up 24 percent, the Florida Association of Realtors said Friday. It marked the first year-over-year increase in the housing market since 2005.

-- “Despite The Ailing Economy, Home Sales In South Florida Were Way Up In September,” by Marcia Heroux Pounds, South Florida Sun-Sentinel, Oct. 25, 2008.