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Existing-home sales for December 2011 increased 5% from November. This is the third consecutive month of increases and the second highest reading of 2011. The December level was also 3.6% above December 2010, and as a whole, existing-home sales were up 1.7% from 2010. Total housing inventory dropped 9.2% for December, representing a 6.2-month supply, down from a 7.2-month supply in November.

Existing Home Sales is a measure of the selling rate of pre-owned single-family homes, collected by the National Association of Realtors from 650 realtor associations. It includes a geographical breakdown, as well as a measure of prices and house inventory, the number of months it would take to deplete the existing supply of pre-owned houses at the current sales pace.

The National Association of Home Builders (HAHB) Housing Market Index (HMI) rises in January to a reading of 25. This is up 4 points from the previous December reading of 21 and marks the 4th consecutive month of increases. The last time the HMI had a reading of 25 or more was in June of 2007. Though moving in an encouraging direction, readings over 50 are considered positive, a level last reached in April of 2006.

The NAHB Housing Market Index is based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. The survey asks respondents to rate market conditions for the sale of new homes at the present time and in the next 6 months as well as the traffic of prospective buyers of new homes.

Because Housing and Jobs are so closely related, it is important to watch for changing trends in the Unemployment level. The chart below displays current levels of Unemployment by state.

The Case-Shiller 20-city index rose .2% in August marking the 5th consecutive month of gains. This map displays the city-by-city changes from the July levels. Though only 10 of the cities posted positive changes in August from July, 16 of the 20 cities saw their annual rates improve during the month. These improved annual rates show potential optimism in the still struggling housing market. Los Angeles and Miami had no annual change in August, while Atlanta and Las Vegas saw annual rates fall. The index is down 3.8% year-over-year from August 2010.

This map displays the results of the Case-Shiller home price index for July 2011. Seventeen of the 20 cities in the index say home price increases. Denver remained flat, while Phoenix and Las Vegas has price decreases from June. Overall the 20 cities combined for an increase of .9 from June to July.

 

With September 11th coming up this Sunday I wanted to reach out to my past clients, current clients, family, and friends to let them know where some local events are occurring. Now I know that I didn't find every event but hopefully this provides you with some information!

 

• A big crowd is expected this Sunday in Eden Prairie to commemorate the 10th anniversary of September 11th. The event will take place between 12 to 4:30 p.m. at Grace Church 9301 Eden Prairie Road in Eden Prairie. The event is going to hold a memorial ceremony from 3:00 p.m.-4:30 p.m.and a public safety display. This event is free and welcomes everyone.

• Town Green Bandshell at 7991 Main Street in Maple Grove is holding concert in remembrance of 9/11. The event is expected to be a hit with many performers, Robert Robinson, Mary Jane Alm, Jan Hendrickson, Lord of Life Brass and Canticle Choir, and Voices for Peace Choir.

• Minneapolis City Hall will be holding a public ceremony to remember the victims of 9/11 this Sunday.The Minneapolis Police Department will also be having a remembrance service at 8:30 a.m. on the Fourth Street side of the building.

• People residing in Washington County are being asked to take one minute of silence at noon Sunday in memory of the victims

The Streamlined 203(k) Program

The Streamlined Federal Housing Authority 203(k) program allows qualified borrowers to finance an extra $35,000 for a variety of home improvements. This excellent program was put on hold last year due to issues many lenders had managing disbursements. Since then there have been improved processes that are now in place. We are now pleased to be able to offer this option again.

Use the $35,000 for a variety of improvements!

· Replace or repair: roofs, gutters, siding, downspouts, doors, windows, plumbing, electrical systems, flooring, insulation, decks, patios, porches, even HVAC systems.

· Appliances: Purchase and install washers, dryers, refrigerators, free standing ranges, microwaves, and dishwashers.

· Make improvements of accessibility for people with disabilities.

· Even remodeling, as long as it does not involve structural alterations. Ex. finishing an unfinished room is acceptable, altering wall placement is not.

Program Highlights:

· Eligible on fixed rate mortgages with 30 year terms.

· One underwriting review and one closing review. The financing will be based off the completed value of the home rather than the present value.

· Eligible for 1-4 unit primary residences.

· No minimum amount; borrowers may finance up to an additional $35,000.

· Funding may be used for a variety of improvements. Structural alterations are not allowed.

· Borrowers have up to six months to complete improvements.

The Streamlined 203(k) program is a great solution for clients who are searching for a cost effective way to repair or improve their current home but do not want a second mortgage. It is also a great solution for buyers who are interested in improving a property.