Mortgage rates inch up in response to good economic data

Mortgage rates have begun to inch up as a result of continued signs of a strengthening economic recovery. Jeff Clabaugh of the Washington Business Journal reports:

Freddie Mac says a 30-year fixed-rate mortgage averaged 3.63 percent in the week ending March 14, up from 3.52 percent last week. A 15-year fix averaged 2.79 percent, up from 2.76 percent. A one-year adjustable-rate mortgage rose to 2.64 percent from an average 2.63 percent last week. "Fixed mortgage rates rose this week on signs of job growth and consumer spending," said Freddie Mac (OTC: FMCC) Chief Economist Frank Nothaft.

Kathy Orton, The Washington Post's real estate blogger, notes Nothaft gave last week's strong job growth report and consumer spending for the rise in the rates. “The economy added 236,000 new workers in February, which helped push down the unemployment rate to 7.7 percent,” Nothaft said in a statement. “This helped offset the effects of the payroll tax holiday expiration and led to a 1.1 percent increase in retail sales, which was well above the market consensus forecast.”

If you would like to discuss, call me, Mynor Herrera, for expert advice on everything real estate. I am licensed in Washington, D.C., Maryland, and Virginia, and I specialize in Bethesda and Chevy Chase, as well as the subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium.

Housing to save the recovery from the sequester?

Here's a dose of optimism: "The sequester will not derail the recovery..." according Nigel Gault, chief US economist for IHS Global Insight. He adds that it does likely slow it down some, however, especially here in the Washington, D.C., region. "The private-sector news on the economy continues to be good, and we would be upgrading our forecast of 2013 growth slightly were it not for the federal spending sequester that began on March 1."

And experts are pointing to the rebound in residential housing as what's fueling the growing confidence in the recovery. "Lights are burning longer in real estate offices. New housing construction sites are popping up across the country," writes Laurent Belsie, staff writer for the Christian Science Monitor. That activity helps in two ways, Belsie adds:

More home building translates directly into more jobs for construction workers and more sales of everything from lumber to electrical supplies and pickup trucks. Indirectly, rising housing prices mean that people feel richer because their homes are worth more. And if they think the rise is permanent, they begin to spend more.

The latest job numbers from the U.S. Department of Labor shows that economy added 236,000 jobs in February, the second best report in the past year. As Belsie points out, that means we've regained two-thirds of the jobs lost in the Great Recession. "One of the biggest gainers was construction, which added 48,000 jobs, the biggest jump in nearly six years." And along those lines, The Motley Fool's Matt DiLallo quotes Warren Buffett, the so-called Sage of Omaha, "We will come back big time on employment when residential construction comes back. You will be surprised, in my view, how fast employment changes when that happens."

Now, if the politicians would only reach a deal to end the sequester we'd really be cooking with gas.
 
Call me, Mynor Herrera, for expert advice on everything real estate. I am licensed in Washington, D.C., Maryland, and Virginia, and I specialize in Bethesda and Chevy Chase, as well as the subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium.

Sellers are returning to Washington housing market

Kathy Orton, The Washington Post's real estate blogger, reports that home sellers are returning to the market. "New listings increased more than 13 percent across all property segments in February compared with the previous month, according to a report released Monday by RealEstate Business Intelligence and the George Mason University Center for Regional Analysis," Orton writes.  "The uptick in homes for sale is a welcome sign in a housing market that has been as dormant the past several months as the area’s flowers and trees."

She credits the causes of the historically low inventory to concerns over the federal government's budget tug of war and the fact that many homeowners owe more than their homes are worth.

Now as home values steadily rise, more sellers are starting to come off the sidelines. The median sales price climbed to $355,000 in February, a 3.4 percent increase over January and an 11.7 percent increase from February 2012. Single-family detached homes showed the biggest price gains compared to townhouses and condominiums. Their median price grew by $72,000, a 19.5 percent increase from February 2012. The average sale-to-list price ratio swelled to its highest percentage since June 2006, increasing to 97.1 percent.  

In D.C.’s tight market, home buyers go extra mile to find possible sellers

In The Washington Post's weekend "Real Estate" section, Michele Lerner reported on something I've been seeing lately. "During the past year, would-be buyers eager to take advantage of nearly record low interest rates have flooded the local real estate market," she wrote. "But the growing demand, coupled with historically low inventories, has pushed the price of the few houses that are on the market out of their reach."

Lerner continues:

Inventories in the Washington area are even tighter than they were a year ago. As a result, real estate agents say, they are stepping up efforts to find pre-sellers -- people who are on the verge of listing and people who perhaps hadn't considered listing but might be persuaded to do so with the right offer.

As always, please contact me, Mynor Herrera, for expert advice on everything real estate. I am licensed in D.C., Md., and Va., and I specialize in Bethesda and Chevy Chase, as well as the subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium. 

Keller Williams Realty Now #1 Real Estate Company in the United States by Agent Count

I just returned from the Keller Williams' (KW) annual convention in Dallas, Texas. A highlight of the meeting was when Keller Williams CEO Mark Willis gave his State of the Company speech and  announced that KW is the largest real estate franchise company by agent count in the United States, with approximately 80,000 associates. In recent years, KW has posted record growth numbers, surpassing RE/MAX, Century 21, and now Coldwell Banker to secure the industry's top position. He also pointed out strong productivity gains by KW associates in 2012. "Year over year, per-agent units increased 23 percent, closed volume was up 31 percent, and gross commission income rose 28 percent," KW announced in a press release. "Moreover, a record 91 percent of the company's offices were profitable for the year." 

And Chris Heller, president of Keller Williams Worldwide, announced plans to expand into two new regions: (1) Germany, Austria, and Switzerland; and (2) Turkey. "One of the keys to Keller Williams Realty's phenomenal success has been our ability to grow organically – from agent to agent, from market center to market center, from country to country – earning our reputation one person at a time," Heller said.

As the press release says, it's been quite a year for Keller Williams:

• J.D. Power and Associates ranked Keller Williams "Highest in Customer Satisfaction" among both home buyers and home sellers.*
• Keller Williams was ranked No. 9 on America's Top 150 Workplaces – the only national real estate company on the list.
• And in April, Keller Williams co-founder and bestselling author Gary Keller will publish his latest book, The ONE Thing: The Surprisingly Simple Truth Behind Extraordinary Results. 

I am so proud of my association with Keller Williams. Call me, MynorHerrera, today for expert help buying or selling in the Washington, D.C., Maryland, and Virginia areas. I also specialize in Bethesda and Chevy Chase, as well as the subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium.

Washington Region a Seller's Market

The Washington, D.C., region “is a seller’s market,” reports Where We Live, The Washington Post’s real estate blog. “Housing prices are going up, days on the market are going down, and the scarcity of houses for sale indicates that the Washington region is a seller’s market,” wrote Kathy Orton, blogger for The Post. The assessment comes from a report by RealEstate Business Intelligence and the GMU Center for Regional Analysis on January housing data. “Yet, homeowners remain reluctant to put their homes up for sale. The number of new listings in January was the lowest for that month in 15 years,” Orton notes.

She proposed several theories to explain why so few homeowners are putting their homes on the market. “Many are underwater on their mortgages and can’t afford to sell. Others are worried about finding something to buy after they sell. And some are concerned about how the pending federal budget cuts might affect them and don’t want to undertake a large purchase because of that uncertainty.” The Washington region’s median sales price continues to increase compared to last year, she points out. “It climbed to $343,200, which was up 10.7 percent from January 2012, the fourth consecutive month it has shown a double-digit increase. However, it was down 4.4 percent from December, which is typical for this time of year.”  The median price for townhomes rose 13.3 percent over last year, condos climbed 13 percent, and single-family houses rose 3.8 percent.

Orton breaks down the numbers:

Sales of single-family houses had the biggest gain, up 8.8 percent. Sales of condos rose 5.4 percent, while townhouses were up 3.9 percent. This is the first time since March that single-family houses led the other two property types.
Active listings fell by more than 4,000 from January 2012 to 6,049. Townhouses are in the shortest supply, accounting for only 16.2 percent of listings. This is the lowest on record for this property type in the region dating back to 1997. There were 4,004 new listings in January, down 4.2 percent year-over-year.

She adds that the median of the number of days properties are on the market has fallen to 32 days, 25 days fewer than January 2012. An inventory shortage is driving this number down.
As always, please contact me, Mynor Herrera, for expert advice on everything real estate. I am licensed in D.C., Md., and Va., and I specialize in Bethesda and Chevy Chase, as well as the subdivisions of Rosemary Hills, Rock Creek Forest, East Bethesda and Whitehall Condominium.

New Commercial Listing: Great townhouse office, move-in ready, one block from Metro, 3 parking spaces

Mynor Herrera | Keller Williams Capital Properties | (301) 437-1622 11327 Amherst Ave, Silver Spring, MD Great opportunity for investors & owners/occupants alike! Office offered at $335,000 Year Built 1985 Sq Footage 1,687 Floors 2 Parking Unspecified Lot Size 2,216 sqft Maint $100 per month DESCRIPTION Mynor Herrera proudly presents: 11327 AMHERST AVE. SILVER SPRING, MD 20902 Great opportunity for investors and owners alike! This spacious townhouse office is move-in ready. Main level has ample lobby, reception area, office and half bath; second level has lobby, two offices, kitchenette & half bath. Among its many features are its convenient location, just steps from the Metro, shopping and dining; three assigned parking spaces, public parking across the street and extra storage. We are so confident in the value of this property that we will send you a list of the commercial properties for sale in the are so you can see for yourself. Contact me for details! Mynor Herrera, GRI Top 3% Realtor® Nationwide Licensed Realtor® - DC, MD & VA Partner, Keller Williams Capital Properties - BCC Office Board of Directors, Greater Capital Area Assoc of Realtors DreamHomesByMynor.com Check out my NEW website to: - Search homes for sale in DC, MD & VA - Calculate your mortgage rates and payments - View my beach condo rentals - Read my blog on all the latest real estate news Keller Williams Capital Properties 7801 Woodmont Ave. 2nd Fl. Bethesda, MD 20814 mobile: (301) 437-1622 office: (240) 383-1350 e-fax: (240) 235-7066 mynor@mynorandassociates.com DreamHomesByMynor.com see additional photos below PROPERTY FEATURES - Three spacious and private offices. - Reception area, lobby, and media room. - Storage in the basement. - Three parking spaces that convey. - Move-in ready. LOCATION FEATURES - One block from Metro. - Public parking across the street. - Near shopping and dining. OTHER SPECIAL FEATURES - Kitchenette & half bath. ADDITIONAL PHOTOS Photo 1 Photo 2 Photo 3 Photo 4 Photo 5 Photo 6 Photo 7 Photo 8 Photo 9 Photo 10 Photo 11 Photo 12 Photo 13 Photo 14 Photo 15 Photo 16 Photo 17 Contact info: Mynor Herrera Keller Williams Capital Properties 611201 (301) 437-1622 For sale by agent/broker Posted: Feb 15, 2013, 11:20am PST