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According to the June Pending Home Sales Index released by the National Association of Realtors® (NAR), contract signings are down a marginal 0.4 percent to versus prior month. Pending sales were still nearly 11 percent greater than those of a year ago.  Therefore, industry professionals and homebuyers, remain optimistic about overall market conditions. Housing demand is still strong and improving, however a jump in interest rates in concert with higher home values, lowered affordability according to the NAR. Interest rates were historically low for many months before the spike in May, and NAR Chief Economist Lawrence Yun noted the negative impact  on home affordability. Many regions— still suffer with inadequate existing home resale inventory.

In commenting on the June Pending Home Sales Index, Yun pointed out that a contract doesn’t always equal a closing. Buyers generally get pre-approved with a lender up front, but may wait to lock in their interest rate until they are under contract and clear to close on their home. This is sometimes as late as two weeks before the closing date. “Some homebuyers may change their minds if the rate rises too much, which apparently happened with some sales scheduled to close in June,” Yun said.

Indeed, if a buyer’s rate rises too much, the loan payments can increase to the point where the home under contract simply isn’t affordable anymore, especially if the buyers are already pushing the debt-to-income ratio on the loan. The latest Pending Home Sales Index report reiterated that most markets across the U.S. continue to experience a shortage of housing inventory. With fewer homes to buy there may be fewer contracts executed.

In this month’s Pending Home Sales Index report, NAR forecasts an 8 percent increase in home sales over 2012, and a median price bump of 11 percent. Projections are based on year to date data and expectations of steady pending contracts for the remainder of 2013.

For more information on First Preston HT, visit our website at FirstPrestonHT.com. You can also find us on Facebook and Twitter.

Sources:
1) http://www.realtor.org/news-releases/2013/07/pending-home-sales-slip-in-june

Technology for real estate has revolutionized the buyer’s shopping experience and transformed the sales and marketing process for real estate professionals. Inman News bridges the technology divide with Inman Agent Reboot, an exceptional series of events showcasing technology for real estate industry professionals. Last month we participated in the Dallas venue where we captured tons of technology for real estate tips, tried out several of them and decided to share our favorites. There were so many outstanding tips and techniques we opted to present them in a 3-part series. This is the second in the series. The focus here is on video marketing tools that deliver the wow. 

Video Marketing Tools

• BombBomb
  • Facilitates video emails, either singularly or as drip marketing campaigns.
  • Referenced glowingly several times during the conference.  Visit their website for demos.
• Animoto
  • This time-saving power tool doubles as a private video production suite. Subscriber provides photos and video clips and Animoto turns them into an artful video.
  • It elevates virtual tours, captivates city/neighborhood tours and helps to commemorate personal milestones.
  • Background music options are available.
• Videolicious
  • CEO, Matt Singer conducted a training session entitled “How to Create Effective Video.”  It was a fascinating live demo, complete with finished product. He demonstrated how to collect video snippets of key locations in a neighborhood and knit them together with audio narrative to create a cool “insider-neighborhood – walking tour” feel. Very effective. Here are his tips.

Video Marketing Tips:

a) If shooting with a camera phone, shoot with the phone in a horizontal position.
b) Use the “slow pan” technique to cover the target area.
c) Use small, subtle movements.
d) Use a “slow tilt” up and down to demonstrate the height or depth of a space.
e) Avoid overhead lights that can cause shadows. When photographing human subjects, have them face a light source such as a window whenever possible.
f) Consider purchasing a “wide angle lens” for your cellphone camera—costs about $20—to allow broader capture.
g) Turn up the energy! When on camera, rev up your energy level by about 150% versus your normal off-camera demeanor.
h) Use your expertise to add interesting verbal insights that viewers would not otherwise know. Use personalization to showcase best property features (e.g.: I love hosting dinner parties, and this dining room would be awesome for dinner parties!).
i) Use the “book-end approach.” Smile before pressing the “start” button and continue smiling while you press the “stop” button.

Visual Impact Tools That Help You Stand Out:

Cut through the clutter with these visual marketing tools that transform traditional graphics into miniature bill boards.

• Over – Adds visual impact to photos. This app makes it possible to add a message or descriptor directly onto a photo. It uses eye-catching fonts that help the photo tell a captivating story.

• Moo Business Cards  — Multi-function business cards allow cards to do double duty. Create a different image on each card in the deck. Showcase listings, inspiring quotes, or top local restaurants, etc. Moo offers “green business cards,” QR Code Business Cards, Facebook Cards, Luxe Cards, and full color two-sided cards, to name a few. Branded cards look great with listing photos on the reverse side.  While online take a look and see why their Luxe cards truly stand out.

In the next segment on Productivity you will learn how one enterprising broker with 42 agents reduced the  office communications bill from $560 per month to $62 per month.

For information on effective ways to manage institutional or individual portfolios nationwide, or to shop for real estate visit First Preston HT. Don’t forget to ’like’ us on Facebook and follow us on Twitter.

You can find the first part of our Technology for Real Estate blog series here.

The 2013 Inman Agent Reboot conference simplified the hottest trends in technology for real estate professionals. While at the Dallas venue we captured tons of technology apps and tips, tried out several, and decided to share our favorites with you.

There were so many outstanding tips and techniques we decided to present them in a 3-part series showcasing three main categories:

1. Lead Management
2. Video Marketing + Visual Impact Tools
3. Productivity

Lead Management Tools & Tips

Boomerang for Gmail – Have you ever received an email lead and responded right away but received zero response? Often the unresponsive prospect simply drops off the radar.  Boomerang reminds agents to continue follow up with specific hard-to-reach prospects.  Users can also formulate and schedule email messages for future delivery dates to stay proactive, maximizing lead conversion.  

Rapportive for Gmail – Have you ever received an Internet lead that provided only an email address? Ever wonder what type of person is on the other end? Rapportive for Gmail gathers details from the prospect’s internet footprint and forwards that info to your inbox. You can review their aggregated social profile to learn what information might add value or which property attributes to emphasize. You can also harvest details to customize follow-up, build relationships and close more transactions. Lead Management (Tip): What to Say?—What can you possibly say to get an email prospect to finally reply?  Researchers have found the number one most effective response is: “I have important information you requested regarding 123 Main St. Call me as soon as possible.”

The next segment on Video marketing and visual Impact tools will highlight 5power tools that deliver the wow plus tips on how to improve your photos and videos from Videolicious CEO, Matt Singer.

For information on effective ways to manage institutional or individual portfolios nationwide, or to shop for real estate visit First Preston HT.  Don’t forget to ‘like’ us on Facebook and follow us on Twitter.

The numbers are in for June’s Housing Starts Summary, and while both permits and starts are down that’s not the entire story. Housing starts are down overall 9.9% to 836,000,however, the bigger picture is that the bulk of this decline is due to the 26.7% drop in starts for buildings with five or more units, most likely apartment construction. Single-family home starts only dipped 0.8% in June’s Housing Starts Summary, and starts for both categories as a whole are still up 10.4% over this same time last year.

Permits are also down for June versus the prior month a decrease of 7.5%. The Housing Permits category mirrored the Housing Starts pattern, showing fall back the prior month but significant growth compared to the prior year. This June’s Housing Starts Summary reflected 911,000 total permits pulled, that’s 16.1% higher than June of 2012. The repeated year-to-year gains in both permitting and starts are a strong indicator that despite the inevitable peaks and valleys in the housing market, a recovery does appear to be underway. In fact, while permits for multifamily construction dipped 22.8% in this month’s Housing Starts Summary, permits for single-family homes were the highest since May 2008—at 624,000, up 0.6%.

The question for many may be, will demand for new homes continue? Many economists and builders believe the answer is yes. The July Housing Markets Index report, which gauges builder’s optimism, reflected an overall jump of 6 points to 57. Any score in the Housing Market Index over 50 indicates that most builders perceive conditions to be improving. There were gains in all three components of the HMI, meaning builders are seeing more buyer traffic, think the current conditions are improving, and expect good things for the next 6 months. Many permits pulled from previous months have yet to be used, so economists such as Avery Shenfeld of CIBC World Markets expect that recovery and construction starts will maintain momentum. Whereas monthly numbers in June’s Housing Starts Summary have dipped due to a slowdown in apartment building, single-family construction is on the rise, and the general outlook for both remains positive.

For more information on First Preston HT, visit our website at FirstPrestonHT.com. You can also find us on Facebook and Twitter.

Sources:
1)      http://www.marketwatch.com/story/home-construction-lowest-in-almost-a-year-2013-07-17?link=MW_pulse
2)      http://www.marketwatch.com/story/us-economy-creates-195000-jobs-in-june-2013-07-05
3)      http://www.nahb.org/news_details.aspx?sectionID=134&newsID=16373

The National Association of Home Builders (NAHB) and Wells Fargo released the monthly Housing Market Index for July, and the overall numbers are up 6 points. This is the highest total rating conveyed in the Housing Market Index since January of 2006. Market conditions remain on the upswing for builders. Many market areas or metros still have lower levels of available existing housing inventory; therefore, well-qualified buyers are flocking to new construction.

The Housing Market Index score is calculated by measuring three areas of growth by way of surveying homebuilders. All three of these areas showed gains in July. Potential buyer traffic climbed 5 points, while the assessment of builders’ sales expectations for the next 6 months rose 7 points resulting in the highest scores since late 2005 for buyer traffic and sales expectations. Meanwhile, the assessment of builders’ perception of the current sales conditions increased 5 points, also hitting the highest level since early 2006.

NAHB Chief Economist David Crowe cited low existing home inventory as one of the factors driving buyers toward new construction. He also noted an enhancement in the infrastructure that supplies home building, and stated that some costs for materials have stabilized or decreased as well. In addition to the positive gains in the three areas measured in the index, July’s Housing Market Index also indicated gains in the 3-month moving averages for all four regions of the U.S:

• The South rose 5 points
• The Northeast gained 4 points
• The Midwest jumped 8 points
• The West increased 3 points

Given those numbers, the outlook for recovery in the housing market continues to be bright. However, NAHB Chairman Rick Judson, a homebuilder in North Carolina, says there are still areas that builders are watching somewhat cautiously. He stated in this month’s Housing Market Index, “This positive momentum could be disrupted by threats on the policy side, particularly with regard to the mortgage interest deduction and federal support for the housing finance system.”

For more information of First Preston HT, visit our website at FirstPrestonHT.com. For the latest information, you can also find us on Facebook and Twitter.

The National Association of Home Builders (NAHB) released its Improving Markets Index for July and the latest Improving Markets Index includes 255 metros, that’s triple the number of metros which qualified a year ago. July results are down slightly versus prior month.

For the sixth consecutive month more than 70 percent of U.S. metros met the rigorous standards and qualified as improving markets. Given these positive figures, builders remain optimistic about the future. In fact, NAHB Chairman Rick Judson contends that July’s Improving Markets Index indicates a far-reaching recovery is taking place, saying it is “much more extensive than what we were looking at one year ago.”

While a comprehensive housing recovery may certainly be underway, challenges remain for homebuilders. NAHB Chief Economist David Crowe reemphasized the need for more readily available building materials, credit, and buildable lots for construction of homes, as these hurdles continue to hinder homebuilder efforts. He noted the uptrend in home values is another contributing factor supporting the recovery of the U.S. housing market. The National Association of REALTORS® (NAR) reported recently in their Pending Home Sales Index that they are upgrading median price growth projections to 10 percent in 2013. Positive job growth figures re-enforce builder confidence.

The Improving Markets Index measures three key areas.  A metro must show improvement for a minimum of 6 months to gain inclusion in the report. Those three areas are:

• Employment, as reported by the Bureau of Labor Statistics
• Housing permits pulled, as reported by the U.S. Census Bureau
• House price appreciation, as reported by Freddie Mac

Six metros were added to the July Improving Markets Index:

1. Olympia, WA.
2.  Farmington, NM.
3. Cumberland, MD.
4.  Saginaw, MI.
5. Kingston, NY.
6.  Las Cruces, NM.

Fourteen metros were dropped from the list, including Huntsville, AL.; Albany, GA.; Dayton, OH; Allentown, PA.; Sherman, TX; and Spokane, WA.

For more information on First Preston HT, visit our website at FirstPrestonHT.com or find us on Facebook and Twitter.

The National Association of Realtors® released monthly Pending Home Sales Index results for May, reporting improved levels of pending sales growth not seen since December 2006. Pending contracts showed 25 consecutive months of growth with latest figures up 6.7 percent over prior month, and 12.1 percent above results for the prior year. Buyers are encouraged to take advantage of record low interest rates. Lawrence Yun, NAR’s chief economist reports that there are fewer housing choices available in many markets. The May Pending Home Sales Index was released after Freddie Mac reported that the Federal Reserve might reduce its stimulus program; this action prompted one of the largest weekly increases in mortgage rates ever seen.

The rising rates don’t seem to be dampening buyers’ enthusiasm, as evidenced by the uptick in homes under contract in the Pending Homes Sales Index. In fact, Yun is upgrading NAR predictions calling for a 10 percent increase in the median sales price of existing homes.  That would mean a median home price of $195,000. The market hasn’t seen escalations in median prices like this since the beginning of the boom back in 2005. With most markets experiencing high buyer affordability, Yun said we are experiencing some “fence jumping”—i.e.: proverbial fence sitters are finally making a buying move after taking stock of the rising rates and prices. This is good news for the sellers; as increased values mean fewer under-water mortgages.

The latest Pending Home Sales Index shows an increase in sales in the South region of 2.8 percent for the month, a rise of 12.3 percent versus prior year. Pending contracts in the Midwest rose 10.2 percent from April and are 22.2 percent higher than in May 2012. The West and Northeast didn’t fare as well in this month’s Pending Home Sales Index; however, industry leaders at NAR believe this can be attributed to the lower available housing inventory levels. The West region experienced a month-to-month gain of 16.0 percent, but the increase only translated to a 1.1 percent increase over the preceding year. The Northeast pending sales volume is up 14.3 percent year-over-year, however pending sales remained flat  as compared to prior month results.

For more information on First Preston HT, visit our website at FirstPrestonHT.com. You can also find us on Facebook.

Sources:
1)       http://www.realtor.org/news-releases/2013/06/may-pending-home-sales-reach-highest-level-in-over-six-years
2)       http://www.inman.com/wire/mortgage-rates-post-largest-weekly-increase-in-25-years/
3)       http://www.inman.com/wire/pending-home-sales-hit-highest-level-in-over-6-years/

The National Association of Home Builders Housing Market Index report for June boasted the largest monthly increase in in overall builder confidence seen since September 2002, an 8 point jump to a total score of 52.

When it comes to the NAHB/Wells Fargo monthly Housing Market Index, any score above 50 means more builders than not are optimistic about the current and future market conditions. The report is created with data mined from interviewing the nation’s home builders about their thoughts on three areas: current sales conditions, future sales climate, and the traffic of potential home buyers.

The section of the Housing Market Index where builders are asked to gauge current sales conditions jumped 8 points to 56, while the indexes for future sales conditions and current buyer traffic were up 9 and 7 points, to 61 and 40, respectively. It’s also noteworthy that the component measuring future sales conditions reached its highest mark since March 2006.

In the June Housing Market Index ,NAHB Chief Economist David Crowe pointed out that this month’s findings are in line with their projections of a 29 percent increase in housing starts for 2013, he noted that  that it would be the first time since 2007 that housing starts have surpassed the one million mark.

The NAHB has been conducting the Housing Market Index survey for 25 years, and it has been a great way for builders to convey their expectations and market experiences. Clearly the builder’s expectations for the remainder of 2013 are high, and lower resale inventory of residential homes is one of the reasons for this confidence. NAHB Chairman Rick Judson, a homebuilder in North Carolina, said, “With the low inventory of existing homes, an increasing number of buyers are gravitating toward new homes.”

For more information on First Preston HT, visit our website at FirstPrestonHT.com.