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Inside Lending Newsletter From Kristen Zorda, Things Are Not Always As They Seem

QUOTE OF THE WEEK… “Things are not always as they seem; the first appearance deceives many.” –Phaedrus, Roman poet and fabulist

INFO THAT HITS US WHERE WE LIVE… The ancient Roman writer of fables certainly hit the nail on the head with regard to last week’s housing reports. Housing Starts dipped 14.4% in August to a 956,000 annual rate, while Building Permits dropped 5.6% to a 998,000 annual rate. With both numbers coming in under a million units a year, pundits were quick to declare that the home building recovery is over. But they were truly deceived. Even with the August decline, starts are up 8.0% over a year ago. The multi-family sector is a bit stronger, but single-family starts are still up 4.2% in the past year.

Starts are volatile from month to month, so to see the trend, we need to look at the 12-month moving average, now at its highest level since October 2008. Equally encouraging, the number of homes under construction but not finished was up 0.6% in August and up 21.6% from a year ago. The pundits also overlooked two more facts. 1) Residential construction jobs are up 123,000 in the last year, which wouldn’t make sense if the recovery were going in the other direction. 2) The National Association of Home builders said that builder confidence in the market for new single-family homes rose in September for the fourth month in a row, to a nine-year high!

BUSINESS TIP OF THE WEEK…Online activities are important, but face time is still key. Take every opportunity to get yourself in front of prospects. Then they’ll pay more attention when they see your blogs, emails, and social posts.

Kristen Zorda
Loan Officer
NMLS# 58751
648 Plank Rd. Suite 203
Clifton Park, NY 12065
Office: 518-366-7999
PrimeLending, a PlainsCapital Company

 

 

Orson B.Klender,  Associate Broker

Equitas Realty
38 High Rock Ave, Saratoga Springs, NY 12866

www.OrsonSellsNY.com

Connect with me…..

FacebookLinkedInWordpressTwitter

Cell: 1 (518) 588-2319 ~ Fax: 1(866) 588-6066

 

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Inside Lending Newsletter From Kristen Zorda, Housing Market Attitude Positive

QUOTE OF THE WEEK… “Be so good they can’t ignore you.” –Steve Martin, American actor, writer, and musician

INFO THAT HITS US WHERE WE LIVE... The housing market isn’t quite as good as Mr. Martin advises, but it’s a lot better than some media pundits would have us believe. Last week, one of the world’s leading independent macro-economic research companies gave its bullish assessment of the U.S. housing market and mortgage growth. Their property economist said that the weak August jobs report was “probably just an isolated blip.” He feels that “indicators such as initial jobless claims suggest that labor market conditions are still strengthening.” Jobs of course are key to the housing recovery.

This economist noted that with the slower gain in home prices in Q2, values improved and mortgage affordability is very favorable. He observed that “45% of respondents to the Fed’s Senior Loan Officer Survey saw mortgage demand strengthen in the third quarter.” Echoing this, an accounting and management consulting firm reported that loan production among independent mortgage bankers increased in Q2 by 50% over the previous quarter, the first gain in the past three quarters. Finally, Fannie Mae’s August National Housing Survey found Americans’ attitude toward the future of the housing market is getting more positive.

Kristen Zorda Kristen Zorda
Loan Officer
NMLS# 58751
648 Plank Rd. Suite 203
Clifton Park, NY 12065
Office: 518-366-7999
PrimeLending, a PlainsCapital Company

 

Orson B.Klender,  Associate Broker

Equitas Realty
38 High Rock Ave, Saratoga Springs, NY 12866

www.OrsonSellsNY.com

Connect with me…..

FacebookLinkedInWordpressTwitter

Cell: 1 (518) 588-2319 ~ Fax: 1(866) 588-6066

Inside Lending Newsletter From Kristen Zorda, “Learn from yesterday”

QUOTE OF THE WEEK… “Learn from yesterday, live for today, hope for tomorrow.” –Albert Einstein, German-born theoretical physicist

INFO THAT HITS US WHERE WE LIVE… Einstein’s scientific genius provides some smart advice for today’s housing market. “Learn from yesterday”: we recently learned that the home price decline a few years ago was not as severe as originally thought. Property values nationally, from their February 2007 peak to their December 2011 trough, only dropped 26%, not the 34% originally reported. This finding comes from analysts at the well-regarded S&P/Case-Shiller Home Price Index, who just spent more than a year re-working their model with a bigger, higher quality set of data.

“Live for today”: consider a recent report from a major real estate information company. They found that despite the challenges faced by first-time home buyers under age 35, 96% of the U.S. housing market the company measured is still affordable for recent graduates making the median household income, even if they have student loans. This flies in the face of the rampant media speculation that student loan debt is holding back home buying among recent graduates. “Hope for tomorrow“: we can all find this in the report that construction spending in July made its biggest jump in two years.

BUSINESS TIP OF THE WEEK… Don’t wait until the last minute to start thinking about a problem. Give yourself time to let your subconscious mull it over. This is why people can literally sleep on a problem and wake up with the answer.

Kristen Zorda
Loan Officer
NMLS# 58751
648 Plank Rd. Suite 203
Clifton Park, NY 12065
Office: 518-366-7999
PrimeLending, a PlainsCapital Company

 

Orson B.Klender,  Associate Broker

Equitas Realty
38 High Rock Ave, Saratoga Springs, NY 12866

www.OrsonSellsNY.com

Connect with me…..

FacebookLinkedInWordpressTwitter

Cell: 1 (518) 588-2319 ~ Fax: 1(866) 588-6066

Inside Lending Newsletter From Kristen Zorda, New Home Inventory Up

QUOTE OF THE WEEK… “We never taste a perfect joy; our happiest successes are mixed with sadness” –Pierre Corneille, French dramatist

INFO THAT HITS US WHERE WE LIVE… Some observers were indeed sad to see that New Home Sales fell off by 2.4% in July, dipping to a 412,000 annual rate. But wait. June’s number had been revised upward and, besides, New Home Sales are still up 12.3% over a year ago. Other positive notes included the median price of new homes sold was up 2.9% versus a year ago and the average price, up 2.9%. The inventory of new homes grew by 8,000 during the month, still low, but better than it’s been. The housing recovery is intact, but there are fits and starts we have to be ready for, given that the overall economy forges forward at such a plodding pace.

Mixed news continued with home prices. The FHFA index of prices for homes financed with conforming mortgages was up 0.4% in June and is up 5.2% versus a year ago. But the Case-Shiller home price index for 20 metros was off 0.2%, its first overall dip since early in 2012.The index, however, is still up 8.1% in the past year. More good news: the National Association of Realtors Pending Home Sales index shot up 3.3% in July, hitting its highest level since August 2013.The NAR’s chief economist put this higher contract activity to more favorable housing conditions. He said: “Interest rates are lower than they were a year ago, price growth continues to moderate, and total housing inventory is at its highest level since August 2012.”

BUSINESS TIP OF THE WEEK… Don’t buy into the idea that with the Internet, today’s customers will always find you. Sure, market yourself online, but don’t abandon old school lead generation tactics that have worked, including cold calls.

Kristen Zorda
Loan Officer
NMLS# 58751
648 Plank Rd. Suite 203
Clifton Park, NY 12065
Office: 518-366-7999
PrimeLending, a PlainsCapital Company

 

Orson B.Klender,  Associate Broker

Equitas Realty
38 High Rock Ave, Saratoga Springs, NY 12866

www.OrsonSellsNY.com

Connect with me…..

FacebookLinkedInWordpressTwitter

Cell: 1 (518) 588-2319 ~ Fax: 1(866) 588-6066

Inside Lending Newsletter From Kristen Zorda, Home Price to Grow in 2014

QUOTE OF THE WEEK… “Everybody thinks they are right.”–Stefan Sagmeister, New York-based graphic designer and typographer 

INFO THAT HITS US WHERE WE LIVE… This week, those who think they’re right in believing the housing market has shrugged off its recent slump could present fresh evidence. Pending homes sales in May surged 6.1% over the month before, according to the National Association of Realtors (NAR). This index of contracts signed on existing homes indicates that sales of those properties should move ahead nicely a couple of months out. It was also good to see all four regions of the country posted increases in pending sales.

The NAR’s chief economist projected: “Sales should exceed an annual pace of 5 million homes in some of the upcoming months behind favorable mortgage rates, more inventory, and improved job creation.” In fact, the inventory of existing homes was up 2.2% in May as sales gained 4.9% and, according to Freddie Mac, national average rates on 30-year fixed-rate mortgages recently posted their first annual decline in more than a year. NAR projections show the national median existing home price growing 5% to 6% this year and 4% to 5% in 2015.

BUSINESS TIP OF THE WEEK… It’s not about what you get, it’s about what you give. Focus on giving your clients more and the rewards will follow.

Kristen Zorda
Loan Officer
NMLS# 58751
648 Plank Rd. Suite 203
Clifton Park, NY 12065
Office: 518-366-7999

PrimeLending, a PlainsCapital Company

 

Orson B.Klender,  Associate Broker

Keller Williams Realty Saratoga Springs
38 High Rock Ave, Saratoga Springs, NY 12866

www.OrsonSellsNY.com

Connect with me…..

FacebookLinkedInWordpressTwitter

Cell: 1 (518) 588-2319 ~ Fax: 1(866) 588-6066

Inside Lending Newsletter From Kristen Zorda, Existing Home Sales Were Up

QUOTE OF THE WEEK… “Success is the sum of small efforts repeated day in and day out.” –Robert Collier, American writer

INFO THAT HITS US WHERE WE LIVE… The daily efforts of housing market professionals achieved some impressive successes in May. Existing Home Sales were up 4.9% for the month, to a 4.89 million annual rate. Sales are still down a tick versus last year, but they’re getting closer to a healthy 5 million unit yearly pace. It was especially good to see that inventories continued to grow in May and are now up 6% compared to a year ago. The months’ supply dipped to 5.6 months thanks to the faster selling pace. The median price for existing homes is up 5.1% over a year ago, which is no doubt bringing more sellers into the market.

We saw even more impressive success on Tuesday with New Home Sales up 18.6% in May to a solid 504,000 unit annual rate, their highest pace in six years. Sales were up in all major areas of the country and the median price is up 6.9% from a year ago. The FHFA price index for homes financed with conforming mortgages was flat in April, yet up 5.9% versus a year ago. The S&P/Case-Shiller 20-city home price index was just 0.2% higher in April over March. But prices were up 10.8% year-over-year, slightly less than March’s 12.3% reading. Many experts feel that slowing home price gains indicate a return to a more stable market.

BUSINESS TIP OF THE WEEK… Prioritize your goals by which are the most urgent, or the easiest to achieve, or the most important for long-term growth. Then write down the steps you’ll take each month or each quarter to achieve them.

 


Kristen Zorda
Loan Officer
NMLS# 58751
648 Plank Rd. Suite 203
Clifton Park, NY 12065
Office: 518-366-7999
PrimeLending, a PlainsCapital Company

 

Orson B.Klender,  Associate Broker

Keller Williams Realty Saratoga Springs
38 High Rock Ave, Saratoga Springs, NY 12866

www.RealEstateSaleSaratogaSpringsNY.com

www.OrsonKlender.com

Connect with me…..

FacebookLinkedInWordpressTwitter

Cell: 1 (518) 588-2319 ~ Fax: 1(866) 588-6066

Inside Lending Newsletter From Kristen Zorda, Recovery Will Continue

QUOTE OF THE WEEK… “Often you just have to rely on your intuition.” –Bill Gates, American business magnate, philanthropist, investor, computer programmer, and inventor

INFO THAT HITS US WHERE WE LIVE… We who work in the housing market understand this observation from one of the world’s most successful individuals. Our intuition tells us the recovery will continue to improve, yet the monthly data occasionally seems to contradict that idea. For example, May Housing Starts came in down 6.5%, to a 1.001 million unit annual rate. This was below consensus expectations, but Housing Starts are still up 9.4% compared to a year ago. Single-family starts are up 4.7% and multifamily starts up 18.2% in the past year.

To see the underlying trend, look at the 12-month moving average. In May, that hit its highest level since October 2008. Even with the May drop in starts, overall home building kept moving forward. The total number of homes under construction (started but not finished) was up 1.4% for May and is up 20.6% over a year ago. New Building Permits were down 6.4% in May to a 991,000 annual rate, but this drop was all due to the multifamily sector, which is volatile month-to-month. Single-family permits were up 3.7%.

BUSINESS TIP OF THE WEEK… Don’t let outside factors disturb your focus. Take note of what’s happening in the economy and your marketplace, but then put your head down and get back to work.

 

Kristen Zorda
Loan Officer
NMLS# 58751
648 Plank Rd. Suite 203
Clifton Park, NY 12065
Office: 518-366-7999
PrimeLending, a PlainsCapital Company

 

Orson B.Klender,  Associate Broker

Keller Williams Realty Saratoga Springs
38 High Rock Ave, Saratoga Springs, NY 12866

www.RealEstateSaleSaratogaSpringsNY.com

www.OrsonKlender.com

Connect with me…..

FacebookLinkedInWordpressTwitter

Cell: 1 (518) 588-2319 ~ Fax: 1(866) 588-6066

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