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Housing index posts biggest

jump in 5 years | Tacoma Real Estate

Economist: ‘We are at or near the bottom of the current housing depression’

Associated Press

LOS ANGELES - Homebuilders are feeling a lot more optimistic that the worst housing downturn in decades may be finally starting to turn around.

An index of builders' confidence released Wednesday posted its biggest one-month jump in five years in April as many homebuyers seized on lower prices and incentives and took advantage of lower interest rates and tax credits.

The National Association of Home Builders/Wells Fargo housing market index climbed five points to 14. While still near historically low levels, the latest index reading is the highest since October.

"This is a very encouraging sign that we are at or near the bottom of the current housing depression," said David Crowe, chief economist for the Washington-based trade association.

The report reflects a survey of 360 residential developers nationwide, tracking builders' perceptions of market conditions. Index readings lower than 50 indicate negative sentiment about the market.

The index hit an all-time low of 8 in January as mounting layoffs, strict mortgage requirements and the worsening U.S. economy sapped demand for new homes.

In response, many builders stepped up sales incentives, slashed prices and trumpeted an $8,000 tax credit for homebuyers enacted in February as part of the Obama administration's economic stimulus package. Mortgage rates, meanwhile, have hovered below 5 percent for weeks, offering an additional inducement for would-be homebuyers.

As a result, homebuilders have reported an uptick in traffic in recent weeks. KB Home, a Los Angeles-based homebuilder, reported last month that new home orders jumped by 26 percent in its fiscal first quarter.

"Some of the most favorable buying conditions in a lifetime are now in place, and they are drawing more consumers back to the market," said NAHB Chairman Joe Robson, a homebuilder from Tulsa, Okla.

Joshua Shapiro, chief U.S. economist for the consulting firm MFR Inc., said the jump reflects the perception the market is improving, but cautioned some builders may be overly optimistic.

"The weakness that preceded it is so pronounced that I think you get a little bit of an exaggeration to people's responses to surveys like this," Shapiro said.

Regionally, builder confidence rose by eight points in the Northeast to 16 and by six points in the Midwest to 14. It climbed by five points in the South to 17 and by four points to 9 in the West.

Builders' gauge of current sales conditions climbed by five points to 13, while builders' expectation of buyer traffic also rose by five points to 14.

The biggest jump came in builders' outlook for sales over the next six months, which climbed 10 points to 25.

In California, a $10,000 tax credit for new home purchases also helped lift sales, according to a separate national survey homebuilders conducted by John Burns Real Estate Consulting

The firm's latest survey shows new home sales, buyer traffic and expectation of future sales all rose since March.

"We think the improvement is attributable primarily to improved affordability," said John Burns, the firm's chief executive. "The new home tax credit in California is also helping."

The improved industry outlook gave battered housing stocks a lift. Shares of Beazer Homes and Lennar got the biggest boost, climbing more than 13 percent in afternoon trading Wednesday.

Search Washington State Real Estate MLS Listings

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Real Estate Links:

Home Buyer $8000 Tax Credit

CLICK HERE TO SEE FREE HOMEBUYER'S RESOURCES

Further Real Estate advice is offered in the additional articles below. Educate yourself!

Free Activity Alert! Energy Efficiency Expo Coming to Tacoma Real Estate Homeowners

Hoping to lower your electric bill?

Want to make your home more energy efficient?

Visit the Energy Efficiency Expo on May 2nd-3rd at the Greater Tacoma Convention and Trade Center to learn how.

The free event will give you a chance to learn more about using less energy, see products that can help you reduce your energy use and talk to experts.

Make sure to look for the Tacoma Power Team there. They can help you learn more about simple ways to save energy at home and reduce your bills.

Visit energyefficiencyexpo.com for more information.

Energy Efficiency Expo

May 2-4

Greater Tacoma Convention and Trade Center

1500 Broadway - Tacoma, WA

source: cityoftacoma.org

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 Your Tacoma Real Estate Professional

Home Care Tips | Screen Doors | Tacoma Real Estate

Home Care Tips | Light Bulbs | Tacoma Real Estate

Sometimes, especially on exterior light fixtures, the glass bulb breaks away from the metal base. There is no best way to remove the base from the fixture, but here are several options. Before replacing an exterior light, purchase a higher quality bulb with a brass- plated or copper-plated base that will not rust. You could coat the threads with a special dielectric grease available at automotive stores. Dry lubricant, Permatex Anti-Seize, and Vaseline will also work. To remove the broken base, first make sure the power is off. Wear eye protection. Protect the immediate area from broken glass that may remain on the base. I like to use a needle nose pliers to grab the metal rim of the bulb and twist it. You can also jam the nose of the pliers into the base of the bulb to get a grip. Sometimes opening the pliers inside the metal threads will give you a grip. If all else fails, use the needle nose pliers to collapse the metal threads until you can remove them.

Tacoma Real Estate Mortgage Rates

Below is the latest mortgage news provided by Freddie Mac.

Mortgage Rates

Most Mortgage Rates Recede This Week, One-Year ARM Rises
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.82 percent with an average 0.6 point for the week ending April 16, 2009, down from last week when it averaged 4.87 percent. Last year at this time, the 30-year FRM averaged 5.88 percent.

The 15-year FRM this week averaged 4.48 percent with an average 0.6 point, down from last week when it averaged 4.54 percent. A year ago at this time, the 15-year FRM averaged 5.40 percent. This is the lowest the 15-year FRM has been since Freddie Mac began tracking it in August 1991.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.88 percent this week, with an average 0.6 point, down from last week when it averaged 4.93 percent. A year ago, the 5-year ARM averaged 5.48 percent. This is the lowest the 5-year ARM has been since Freddie Mac began tracking it in January 2005.

One-year Treasury-indexed ARMs averaged 4.91 percent this week with an average 0.7 point, up from last week when it averaged 4.83 percent. At this time last year, the 1-year ARM averaged 5.10 percent.

source: Washington Realtors

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com

Your Tacoma Real Estate Professional

Win in this Market as a Home Seller | Tacoma Real Estate

In this market, it's unlikely you will sell for the highest price, but if you must...

If you are wandering how to hit a homerun when selling a home in the Tacoma housing market, follow theses hints and swing for the fence.

WHAT YOU NEED:

• A strong reason to sell. A job transfer, relocating or a divorce for example.
• Patience.  Average days on market vary from market to market.
• A Realtor®. A Realtor is educated, knows the local market, and is bound by a strong Code of Ethics.

WHAT TO DO:

• Price your home right. Use online tools and consult a Realtor®.
• Spruce it up.  Clear clutter, update, and make repairs.
• Offer incentives. Some examples are paying the buyer's closing costs, paying moving expenses, offering appliances and/or upgrades.
• Get help from the pros. Consult a Realtor® to better understand your local real estate market and the home selling process.  

Search Washington State Real Estate MLS Listings

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Real Estate Links: 

Additional Resources for Home Sellers:

Staging Your Home for Success

10 Tips for Generating Buyer Interest - Staging

Reasons to Stage Your Home Before Selling

Staging Your Home for Sale

Staging Your Home for Sale Video

De-clutter Your Tacoma Real Estate Home

Improvements That Pay

FREE Home Seller Resources

Further Real Estate advice is offered in the additional articles below. Educate yourself!

Win in this Market as a Home Buyer

If you are wandering how to hit a homerun when buying a home in this housing market, follow theses hints and swing for the fence.

WHAT YOU NEED:

• Steady income source.
• Good credit. The higher credit scores get the best rates.
• A down payment. FHA loans require 3¹/₂ percent down, conventional loans require 5 percent down. There may be down payment assistance programs in your area.

WHAT TO DO:

• Research the market. Use online tools and consult a Realtor®.
• Be realistic about what you can afford. 
• Get pre-qualified. Being pre-qualified can give you negotiating power when buying a home.
• Educate yourself. Gain understating of your loan program. If you don't understand, ask the lender to explain until you do. Consult a Realtor® to better understand your local real estate market and the home buying process.
• Understand insurance costs. 

Search Washington State Real Estate MLS Listings

 ____________________________________________

Real Estate Links:

Home Buyer $8000 Tax Credit

Down Payment Assistance Programs for Washington State Home Buyers

CLICK HERE TO SEE FREE HOMEBUYER'S RESOURCES

Further Real Estate advice is offered in the additional articles below. Educate yourself!

5 Strong Reasons to Buy a Home in 2009 | Tacoma Real Estate

MSN Real Estate recently posted the article, "5 reasons to buy a home this year," offered by MarketWatch. The 5 key points they made for buying a home this year are:

1. Affordability is better than ever.

2. You have a large inventory to choose from.

3. Builders are offering big discounts.

4. Mortgage rates are historically low.

5. You can get a federal tax credit.  (note: the tax credit has changed; it is now $8,000. Consult with a Realtor® for details.)

Read the entire "5 reasons to buy a home this year" article

source: MSN Real Estate

Search Washington State Real Estate MLS Listings

Further Real Estate advice is offered in the additional articles below. Educate yourself!

Caution: FORECLOSURE SCAMS

There are many “Foreclosure Rescue” scams beginning to surface in light of the government’s moves to help prevent foreclosures.

Here are some things to remember:

1. There is never a fee to get assistance or information about the government’s Making Home Affordable program.
2. Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house.
3. Never submit your mortgage payments to anyone other than your mortgage company without their approval.

For more information on how to get help please click:

www.makinghomeaffordable.gov  
Beware of Foreclosure Rescue Scams - Help Is Free

OR CALL 1.888.995.HOPE(4673)

source: Golf Savings Banks

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Additional Real Estate Resources:

Help me to Avoid Foreclosure - Foreclosure Prevention Tips

The Trey Affolter Team, Keller Williams Realty, always welcomes comments and is available to answer questions about Tacoma Real Estate and the surrounding cities within Pierce County Real Estate, South King County Real Estate, and North Thurston County Real Estate. 

253-222-6000

http://www.TreySellsHouses.com