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FEBRUARY HOME SALES INCREASE; PENDING SALES CONTINUE TO RISE

There were 1,308 home closings reported for the month of February, according to figures provided by the Greater Nashville Association of REALTORS®. 

This represents an increase of 3.2 percent from the 1,267 closings reported in February 2009. Year-to-date closings through February are 2,341, a 4.5 percent increase from the 2,241 closings reported through February 2009.

“The number of closings are up from last year, which has been the case now for five consecutive months. Pending sales have also increased, which is a positive sign for what we can anticipate for the spring,” said GNAR President Lucy Smith. “With median residential prices virtually the same as last year, median condo price down slightly and interest rates still remarkably low, the overall market remains stable with some cause for optimism as people take advantage of these conditions.

“It was expected that the market would stabilize after the significant increases in closings at the end of 2009 due to the tax credit deadline. But, with the next deadline at the end of April, it is reasonable to think that we could see another burst of activity in spring and early summer. And, with increased activity and energy in the marketplace, it is possible that there will be more closings beyond first-time homebuyers in the upcoming months,” Smith continued.

A comparison of sales by category for February is:

There were 1,614 sales pending at the end of the month, compared with 1,452 pending sales at this time last year. The average number of days on the market for a single-family home was 89 days.

The median residential price for a single-family home during February was $159,900, and for a condominium it was $149,950. This compares with median residential and condominium prices of $160,000 and $151,120, respectively at this time last year.

Inventory at the end of February was 23,159 up from 23,122 in February 2009. The current inventory of properties by category, compared to last year, is:

“Inventory is up slightly from last month and pretty even with levels from last year,” added Smith. “With less than 60 days left until the homebuyer tax credit deadline, excellent interest rates and a good variety of homes available in the Greater Nashville market, the spring and summer selling seasons could be better than what was the case during the past two years.”

The Greater Nashville Association of REALTORS® is one of Middle Tennessee’s largest professional trade associations and serves as the primary voice for Nashville-area property owners.  REALTOR® is a registered trademark that may be used only by real estate professionals who are members of the National Association of Realtors and subscribe to its strict code of ethics.

©Copyright 2007-2011 GNAR.

I received an article by Mr. Mike Larson today that was forwarded to me by one of mortgage brokers.   It’s an interesting article regarding the housing market and thought I would post it for all to see.   As always, I’m compelled to remind everyone that the media reports “national” market information which is highly fueled by those cities with the worst economy i.e. Los Angeles, Los Vegas, Phoenix, Cape Coral, etc.  Always remember that although Nashville is also in a housing “correction”, our economy is much stronger and our housing market has not suffered nearly as much as other cities.  Here’s the article:

Name: Mike Larson
Title: Interest Rate and Real Estate Analyst

Recognized as an interest rate and mortgage market expert, Mr. Larson’s views have been quoted in numerous publications nationwide, including the Washington Post, Chicago Tribune, Dow Jones Newswires, Associated Press, Reuters, CNNMoney.com, Sun-Sentinel, Tampa Tribune and the Palm Beach Post.  His in-depth analysis of the housing and mortgage market and accurate forecast of the subprime crisis has lead to frequent appearances on CNBC, CNN, Fox Business News, and Bloomberg Television, as well as many nationally syndicated radio shows.  Mr. Larson’s understanding of the U.S. real estate market has also been recognized overseas, having recently been featured in a documentary on the subject produced by a Barcelona-based television station.  In addition, his writing has been acknowledged by both the National Association of Real Estate Editors and the Massachusetts Press Association.

Among the first analysts to call the housing slide, Mr. Larson’s policy paper, “How Federal Regulators, Lenders and Wall Street Created America’s Housing Crisis: Nine Proposals for a Long-Term Recovery,” received broad media coverage following its July 2007 submission to the Federal Reserve and FDIC.  In the paper, Mr. Larson accurately predicted the long-term impact of the deepening subprime mortgage crisis on the broader economy that the nation faces today.

Mr. Larson holds B.A. and B.S. degrees from Boston University.

Another Report from the Housing Market’s Front Lines

by Mike Larson   02-26-10

I’ve been talking about interest rates an awful lot lately … and for good reason. The next BIG story in the bond market is clearly the sovereign debt crisis.

But I don’t want to ignore the housing market, either.

My best-case forecast is still a recovery — albeit an anemic, lackluster, moribund one. Some of the latest numbers leave a few questions in my mind, though. So let’s recap where we stand …

Price Declines Ebbing as
Inventory Overhang Shrinks

Home prices have been plunging for a lot of reasons:

• They got way too expensive relative to incomes.
• The monthly cost of ownership got way out of whack with monthly rents.
• The supply of homes for sale exploded, while the qualification standards for home mortgages tightened.

But many of those underlying issues have been corrected by falling home prices.

As I’ve told numerous reporters over the past couple of years, falling home prices were ALWAYS part of the solution to the housing crisis. They would eventually restore price-to-income and own-vs.-rent ratios back to their historical norms … and bring out bargain-hunting buyers.

Now you’re starting to see the results of that in the home price data. December figures from S&P/Case-Shiller show that prices rose 0.3 percent from a month earlier. That was the seventh straight gain.

Prices still fell from the year-ago level. But the 3.1 percent decline was the smallest going all the way back to May 2007. Prices actually rose in six cities, led by San Francisco at 4.8 percent and Dallas at 3 percent.

A key driver of this improvement is the shrinking supply of homes for sale, which I described for you a couple weeks ago. Total new and existing home inventories have shrunk by 1.4 million from their peak more than two years ago.

Sticking to Tradition - Baby Boomers Have Few Roth IRA Conversions Planned in 2010

RISMEDIA-While the upcoming Roth IRA conversion changes may be a silver lining for Baby Boomers with recession-battered IRAs, a new survey by financial services company USAA found that most baby boomers plan to keep their Traditional IRAs intact instead of turning their tax-deferred savings into tax-free retirement income next year.

According to the survey, the majority (73%) of Baby Boomers who own an IRA are not planning to convert their Traditional IRA to a Roth IRA in 2010, which is when the household limit of $100,000 in modified adjusted gross income is scheduled to be lifted. Any investor who converts in 2010 can pay the tax bill over a two-year period.

The survey also found that conversion plans are not more prevalent among higher-income households that benefit from the income limit changes.

For respondents who own an IRA and have a household income of $100,000 or more:

• More than half (57%) are not aware that income limits on Roth IRA conversions are scheduled to be eliminated next year.
• Two-thirds (62%) are not aware that the converted funds are subject to tax.
• Only nine percent are planning to convert in 2010.

"There may never be a better time than in 2010 to create a tax-free income stream for retirement," said Terri Kallsen, senior vice president, USAA Wealth Management. "The combination of lower account values, historically low income-tax rates, conversion income limits lifting and the ability to pay the tax bill over two years provides a rare opportunity to potentially increase your income in retirement by hundreds, and even thousands, of dollars each month by eliminating taxes through a Roth IRA."

Some investors appear more likely than others to take advantage of the conversion changes next year, including:

• Investors with both a Traditional and Roth IRA are three times more likely (15% vs. 5%) to plan on converting than those who own a Traditional IRA only.
• Younger Boomers (aged 45-54) are more likely than older Boomers (aged 55-64) to say they plan to convert their Traditional IRA to a Roth IRA next year (11% vs. 5%), even though older Boomers are more aware of the income limit changes than younger Boomers (41% vs. 26%).
• However, most (67%) IRA owners surveyed aren't aware that any taxes would be due on converted funds. Of the one-third (33%) who are aware taxes would be due, one in ten (11%) didn't realize they would have the ability to spread the tax bill over two years.

"While a Roth IRA conversion may not make sense for everyone, it's important to understand the options available and the implications of taking, or not taking, action," said Kallsen. "Working with a salaried, credentialed financial planner can help you determine the best decision for your situation."

For more information, visit www.usaa.com.

Copyright© 2009 RISMedia, The Leader in Real Estate Information Services, All Rights Reserved. This material may not be republished without permission from RISMedia.

Announcement!

Over the past year, Kevin Lennon, member of The Kestner Team, has been taking classes and has earned his Cisco Certified Network Administrator’s certification (CCNA) in the computer networking industry.  He will be moving on to his new I.T. position as a technical support engineer.  Kevin has maintained The Kestner Team’s website over the years and has designed many of the marketing materials that the team has used, as well as performed the duties of a licensed Realtor.  Although he will be retiring his real estate license, he will, continue to assist Nina Kestner McIver with her real estate business and help ensure that she provides her clients with the best possible real estate experience.  If you have any suggestions for our website, please feel free to pass them along – we are here to make the real estate business easier and better for our clients.

Relocating? Be Kind to Your Appliances, and Maybe They'll Return the Favor

RISMEDIA-After moving into a new or different house, many homeowners find they immediately encounter some problem with their appliances, whether it be the fridge, the stove or even the washer or dryer.

Chris Zeisler, professionally trained RepairGuru at RepairClinic.com offers the following tips to make the transition to a new home less painful on both yourself and your appliances.

1. Check the hookups in your new home - if you have a gas dryer, does the new home have a gas line and connector available? If not, don't take any chances: hire a trained professional to install the gas line and connector for you. The same is true if you have an electric dryer: is there an adequate electrical outlet available in the laundry room? If not, hire an electrician to install an electrical outlet. Be sure to check for water lines for your icemaker and water dispenser as these may also be needed.
2. Before moving your fridge and/or freezer, remove all food; unplug it, and wipe out the shelves and storage compartments with warm, soapy water; then rinse and wipe it down completely and allow it to dry for about 24 hours. Then remove all of the interior shelves and accessories and put a can of coffee or a box of baking soda inside to eliminate the musty odor that develops when the door is closed for a period of time and tie the door shut with a "non-scratch" cord to keep it from popping open during transport.
3. Allow the fridge to sit at the new destination for about 24 hours before use. Once the fridge has been installed and the icemaker has been hooked up, dispose of the first few rounds of ice which may contain impurities from the new water line.
4. Watch for leaks in the water hoses as you disconnect appliances, especially washing machines and refrigerators. There may be some residual water in the lines as you disconnect. Be prepared to catch the water with a towel and/or bucket, so you don't damage your floor.
5. Carefully plan how you will enter your new house with oversized appliances before your move. You may need to measure your appliances in advance to be sure they will fit through doorways.

For more information, visit www.repairclinic.com.

Copyright? 2009 RISMedia, The Leader in Real Estate Information Services, All Rights Reserved. This material may not be republished without permission from RISMedia.

Online Fraud - 6 Tips to Avoid Becoming a Victim

RISMEDIA-If you have ever been a victim of online fraud, you know how much of a hassle it is to get your life back in order after the damage has been done. With attention being drawn to new fraudulent schemes practically on a daily basis, it is important to be aware of the red flags that are sure signs of fraud.

Research the average price for whatever you are shopping for online. Beware of scam artists who offer much lower prices as a way to entice online shoppers and perhaps enable you to lower your guard.

Don't let anyone rush you. Many online fraudsters will insist that the sale must happen immediately. This is often a way to force you to make a quick decision without thinking about the risks and consequences.

Be on the lookout for "Scammer Grammar." Red flags should go up if you see misspellings, words used incorrectly or language mistakes not typically made by those fluent in English. Also, beware of any seller that refuses to speak with you on the phone.

Don't shop online from a public computer or over a Wi-Fi connection. This could lead to the loss of valuable personal information, including credit card numbers.

If you get an email asking you to "update your account," don't take the bait. This is a common way to get you to give personal and account information to scam artists.

Spice up your passwords. Don't use the same password for all of your online accounts and be sure to steer clear of any words from the dictionary, even those spelled backwards. Instead, use letters, numbers and symbols to make your password more protective.

For more information, visit www.findlaw.com.

Copyright© 2009 RISMedia, The Leader in Real Estate Information Services, All Rights Reserved. This material may not be republished without permission from RISMedia.

The Greater Nashville Association of Realtors report for January:   “There were 1,033 home closings in Greater Nashville during January, representing a 6 percent increase from the 974 closings reported during January of 2009. Condominium sales were up considerably.

The median residential price in January was $159,000 for a single-family home and $154,550 for a condominium. That compares with median prices of $165,000 for both condominiums and residential in January of last year. There were 1,295 sales pending at the end of January, compared with 1,282 at the end of January 2009.”

These figures are only for the Greater Nashville Association.  There are several associations that make up all of Metropolitan Nashville.   The reports for December were also improved; therefore, we have two good months of increased sales and lower inventory!!!

Are you having trouble making your house payments?  

I’m NOT one of those “We Buy Ugly Houses” people that take advantage of homeowners!   I’m a legitimate real estate professional that understands the difficult times many home owners are facing, and I am offering my HELP.

I just got off the phone with a home owner that had been working with his lender for the past four months trying to modify his loan to a lower payment so he could keep his home.   After four months of discussions and paperwork, they informed him YESTERDAY, that his house was being auctioned at the court house steps TODAY.   How devastating!   I felt so bad for him, but at this point, there’s nothing I can do.

Therefore, I’m reaching out to everyone.  If you are having trouble making your mortgage payments, PLEASE seek help before it’s too late.   There are several options available - Forbearance, Repayment Plan, Loan Modification, Deed in Lieu, Short Sale.   A loan modification will not cut your mortgage payments in half.  However, depending on the amount of your payment, it could reduce your payments by $200 or $600 a month.  If you know you will still have trouble making even reduced mortgage payments, then it’s time to sell your home.  And the longer you wait, the worse off you’ll be.

MOST IMPORTANTLY, until we figure out what to do and determine a “plan” KEEP MAKING THOSE PAYMENTS even if they are not for the full amount.  If you’re hoping to reduce your payments by $200, then made your normal payment less $200.

If you are in a difficult situation, I invite you to contact me to discuss your options.  The call is free, the consultation is free.  I will do everything I can to understand your situation and determine a plan that is best for you.  If your best option is to let the bank have your home, I’ll tell you.   If I think I can sell it before it goes to the bank, I’ll tell you.  If I can’t, I’ll tell you that, too.  

I take pride in being honest and upfront with all my clients, and in KEEPING YOUR BEST INTEREST IN MIND.

Please feel free to call me on my cell phone at any time at 615-289-1340 OR contact me through my website at www.TheKestnerTeam.com.    And if you have a family member or friend that is in trouble, feel free to give them my contact information.