Friday, December 15, 2006

30-Year Mortgage Rates

Pea Soup Day on Cape Cod

A day of fog in Chatham so thick a spoon can stand up in it. At least it is a warm December. A little snow for Christmas...

Cape Cod Real Estate Updates:

30-Year Mortgage Rates Rise Slightly

Rates on 30-year mortgages increased for the first time in about a month, rising slightly to an average of 6.12 percent this week from 6.11 percent a week ago. However, they remain close to the 2006 low of 6.10 percent reached during the week ending Jan. 19.

Freddie Mac chief economist Frank Nothaft says the small change was the result of mixed signals from recent data on job growth, retail sales, wage growth, and consumer sentiment. The Federal Reserve held interest rates steady once again this week; and many experts believe the central bank will continue to do so through May or June of next year, with hopes of achieving a soft landing.

Nothaft says he does not think a moderate rise in mortgage rates in the months to come would prevent a rebound in the housing market.

Source: Contra Costa Times (Calif.), Martin Crutsinger (12/15/06)

Click here to check for updates to Cape Cod Real Estate.

Monday, December 11, 2006

Existing-Home Sales to Trend Upward in 2007

Cape Cod Real Estate Updates:

Existing-Home Sales to Trend Upward in 2007

Existing-home sales are expected to rise gradually in 2007 from current levels, with annual totals slightly lower than 2006, while new-home sales will continue to slide, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.

David Lereah, NAR’s chief economist, says market conditions will vary around the country next year.

“Roughly three-quarters of the country will experience a sluggish expansion in 2007, while other areas should continue to contract for at least part of the year,” he says. “Most of the correction in home prices is behind us, but general gains in value next year will be modest by historical standards.”

For Buyers, a Window of Opportunity

“Buyers, especially first-time buyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity,” he adds. “These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced.”

Existing-home sales for 2006, finishing the third-best year on record, are projected at 6.47 million, a decline of 8.6 percent from 2005. For 2007, sales expected to rise steadily to an annual total of 6.40 million, which would be 1 percent lower than this year’s total.

“By the fourth quarter of 2007, existing-home sales will be 4.6 percent higher than the current quarter,” Lereah says.

Builders Slow New-Home Construction

New-home sales in 2006 are expected to fall 17.7 percent to 1.06 million, the fourth highest total on record, before sliding an additional 9.4 percent in 2007 to 957,000.

Much of the contraction in the new housing market results from cuts in builder construction to support pricing for current inventories. In addition, high construction costs in many areas are taking a bite out of potential profits.

Total housing starts for 2006 are likely to drop 12.3 percent to 1.82 million units, with another 15.1 percent decline in 2007 to 1.54 million.

Source: — REALTOR® Magazine Online

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Saturday, December 9, 2006

Lower Mortgage Rates Equal Big Savings

Cape Cod Real Estate Updates:

Lower Mortgage Rates Equal Big Savings

Freddie Mac reports a decline in mortgage rates during 10 of the last 13 weeks, with the 30-year fixed rate presently at 6.11 percent and the 15-year fixed rate at 5.84 percent.

Buyers of homes priced at the national median of $221,300 would save $13,763 over 30 years by obtaining a mortgage at the current rate, versus the average rate of 6.44 percent for the year. The decline in fixed borrowing costs is enabling home owners to refinance out of adjustable-rate mortgages before their payments reset or tap into their home equity to pay off other debts or make big-ticket purchases.

The Mortgage Bankers Association reports a nearly 14-percent jump in refinancing applications last week.

Source: USA Today, Noelle Knox (12/08/06)

Click here to check for updates to Cape Cod Real Estate.

Thursday, December 7, 2006

Get Well Soon Billy G

Get Well Soon Billy G

I visited my friend and co-worker, Bill Grafton yesterday. Bill is a remarkable person, an earnest straightshooting salesperson, as well as someone that everyone should have the pleasure of working with. Positive Attitude is his middle name. All the clickers at ClickCapeCod send our best for a speedy recovery. Even the dingy's.


Click here to check for updates to Cape Cod Real Estate.

Tuesday, December 5, 2006

Pending Home Sales Confirm Market Is Stabilizing

It can't be that coldddd

It is. 24 degrees in West Dennis this morning. By 8:30 AM it was 30 degrees. I know it's winter. Wait not yet! It is still Fall...

Cape Cod Real Estate Updates:

Pending Home Sales Confirm Market Is Stabilizing

Pending home sales for October slipped 1.7 percent from September and 13.2 percent from a year earlier, the NATIONAL ASSOCIATION OF REALTORS® reports.

The latest Pending Home Sales Index, based on contracts signed in October, is at a reading of 107.2. NAR says the index shows an encouraging “narrowing” trend, as the year-over-year decline is slimmer than the previous two months; In September, the index was 13.6 percent below a year earlier, while in August the decline was 14.0 percent.

David Lereah, NAR’s chief economist, says the numbers show that the market is stabilizing. A fairly steady pace of home sales can be expected for the next two months.

“It’s important to focus on where the housing market is now — it appears to be stabilizing, and comparisons with an unsustainable boom mask the fact that home sales remain historically high,” Lereah says. “They’ll stay that way through 2007.”

He adds that the temporary correction in prices distracts from the fact that it is primarily the number of home sales that affects the economy. “The number for this year will be the third highest on record,” he says.

The index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed, but the sale usually is finalized within one or two months of signing.

An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined and the first of five consecutive record years for existing-home sales. There is a closer relationship between annual changes in the index and year-ago changes in sales performance than with month-to-month comparisons.

Regionally, the Pending Home Sales Index in the Midwest slipped 0.6 percent in October to 95.8 and was 15.4 percent below a year ago. The index in the South declined 1.7 percent to 122.9 and was 9.3 percent below October 2005. In the Northeast, the index eased 2.1 percent in October to 88.0 and was 13.5 percent lower than a year earlier. The index in the West fell 2.7 percent to 109.5 and was 17.4 percent below October 2005.

— REALTOR® Magazine Online


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Monday, December 4, 2006

The Real Estate Company Supports the Troops

First Snow on Cape Cod!

Yesterday there was not a cloud in the sky. Today we have our first signs of winter! It started as a gentle rain but soon turned to a steady snowfall. My three cats, Lucy, Ricky and Kally Kat didn't know what to make of it. Go outside or don't go outside. We all stood at the door and thought for a minute. The concensous was unanimous. Stay in and stay warm. Except me. I was off to my work as a Web Developer with ClickCapeCod.com. If you haven't visited our website yet, you really should. It is THE place to find any and all information on where to stay on Cape Cod, places to eat, and fun things to do during your next trip to Cape Cod.

Cape Cod Real Estate Updates:

The Real Estate Company Supports the Troops

The Real Estate Company is proud to announce a new program for returning military personnel that have served in Iraq or Afganistan since September 11, 2001. The program will be for Cape Cod Veterans who are residents and will be purchasing their first home in the area we service. Click here for more information on this great program for our veterans. The Real Estate Company has offices in four Lower Cape Cod towns serving Yarmouth to Provincetown. It has been family owned and operated since 1981.

Click here to check for updates to Cape Cod Real Estate.

Sunday, December 3, 2006

Sunday Morning on Cape Cod

Another Perfect Day on Cape Cod

Not a cloud in the sky. A gentle breeze. Just perfect. People out and about. Wrapped Christmas Trees on the roofs of passing cars headed home to be decorated and viewed upon by young eyes with anticipation of what is to come. I came into the office today and was pleasantly surprised by holiday lights, wreaths, and a Christmas tree in the conference room placed where every passerby can see. Someone was busy!

Cape Cod Real Estate Updates:

The Real Estate Company Supports the Troops

The Real Estate Company is proud to announce a new program for returning military personnel that have served in Iraq or Afganistan since September 11, 2001. More details to come.

Click here to check for updates to Cape Cod Real Estate.

Saturday, December 2, 2006

What's Happening on Cape Cod Today

Topography Shifts as Southway Closes off Chatham

With the stability of a child’s sand castle, the Southway, once a major channel for boaters traveling between South Beach and Monomoy Island off Chatham Mainland, finally succumbed to Mother Nature last week, filling in with enough sand to permanently close it.


On the surface, the closure appears to be just an inconvenience for boaters, who now must travel the entire eight-mile length of Monomoy to reach the Atlantic waters east of South Beach. But the development raises questions about broader, long-term impacts to the area, and has economic ramifications.

Passage through the Southway, which started its slow but steady closure following the 1987 storm that created the Chatham break outside Lighthouse Beach, was limited to roughly an hour before and an hour after high tide this summer.

But after the fierce Thanksgiving Day nor’easter, the seaway became impassable.

The closure has also raised concerns about future ecological changes in the Morris Island Channel. Located just north of Monomoy, that channel now will be the only throughway for the more than 70 boats moored in Outermost Harbor.

Cape Cod Real Estate Updates:

Optimism Takes Hold on Housing Market

Although there is no denying that the U.S. residential property sector is still soft compared with the previous three years, a growing number of analysts are beginning to hint that the country's housing slump may be over.

They point to a rebound in home builder stocks and declining mortgage reasons as proof.

Indeed, builder stocks rallied sharply on Nov. 30 following an analyst's upgrade, while Freddie Mac confirms that the average interest on a 30-year fixed mortgage slipped to 6.14 percent this past week.

"The transition from sizzling markets to normal or weak markets has been orderly so far, and recent drops in interest rates lessen the likelihood that precipitous changes will occur," says Patrick Lawler, Chief Economist for the Office of Federal Housing Enterprise Oversight.

Source: Los Angeles Times, Annette Haddad (12/01/06)

Click here to check for updates to Cape Cod Real Estate.

Friday, December 1, 2006

Cape Cod Open House

Open House

You are invited to an Open House at the Ocean Edge in Brewster on Saturday, December 1 from 10 AM to 12 PM. This Ocean Edge Condo in Brewster has Water Views! Wow! (Bonus-1 MONTH FREE Vacation to beautiful Naples Lakes, Florida- Worth over $4,000.00! 3BR Luxurious home at Championship Golf resort including free golf for 2! May or Oct of '07.) More details... Get directions here.

Cape Cod Real Estate Updates:

Rates Fall for Fifth Consecutive Week

The average rate on 30-year, fixed-rate mortgages dropped to 6.14 percent, down from 6.18 percent a week ago and 6.26 percent a year earlier. The 30-year fixed rate is the lowest it’s been since Jan. 26 of this year, according to Freddie Mac.

The 15-year, fixed-rate mortgage averaged 5.87 percent, down from 5.91 percent last week but up slightly from 5.81 percent a year ago. The rate is the lowest for 15-year fixed mortgages since Feb. 2, 2006.

The average five-year adjustable-rate mortgage rate was 5.95 percent, down from last week’s 5.99 percent but up from 5.76 percent a year earlier. The average one-year ARM rate was 5.46 percent, compared with 5.49 percent a week ago and 5.16 percent last year.

“Mortgage rates drifted lower this week, bringing long-term rates to levels below those of this time last year,” says Frank Nothaft, Freddie Mac vice president and chief economist. “Mortgage applications for home purchases in November have remained healthy, largely because of the drop in mortgage rates and a softening in home prices in some areas.”

Sunday, November 26, 2006

Should You Start Out with a HIGH Listing Price?

Today was just the most perfect fall day on Cape Cod. I did the last of the fall cleanup. The fallen leaves into the compost pile, cut back the Montauk Daisies to get them ready for next year, and watched Charlie, my Yellow Lab have a ball. I brought in the last of the flower pots and set them in the front of the East door in the family room to get the morning sun.

Cape Cod Real Estate Updates:


Should You Start Out with a HIGH Listing Price?
Many sellers think there is nothing wrong with pricing a property "too high" when the listing is new because they can always lower the price later.

Because of the change in real estate market conditions, more sellers are competing for fewer buyers. So once again, it seemed important to challenge a long-standing "myth" of real estate.

"The initial listing price isn't that important because the price can always be adjusted down later."

Many homeowners believe this. It is a myth.

Buyer's agents are not swayed by advertising. They look at the needs of the client, where the client wants to live, location, condition, and other details of the property...

And most importantly....price.

If your house is overpriced, agents are going to show similar homes that are priced more attractively. Your listing will get passed over.

You may be thinking, "But I'm willing to negotiate!"

Buyers aren't thinking in advance about how much you are willing to negotiate. They are comparing your asking price to other asking prices.

Plus, when your house is new on the market, you may not be willing to negotiate as much as you will later, once you've realized your error. Keep in mind that statistics show, quite often, the first offer is the best offer.

So what happens if you overprice in the beginning and get more realistic later?

You don't have all those important Buyer's Agents looking at your listing because it is NEW. A price reduction later in the listing cycle often gets overlooked. It is just one of many listings, not one of a few new listings.

Many sellers still mistakenly believe they should "price it high" because they can lower the price later, if necessary.

That is not the best strategy.

Saturday, November 25, 2006

I hope you all had a Happy Thanksgiving. Today is turkey soup day. I put a lot of scallions and a dollop of cranberry sauce on top. Something about the combination. The cranberries have been fantastic this year. Maybe because of all the rain. It is really something to see when the bogs are flooded and it is just a sea of red berries. Truly unique to Cape Cod.

Cape Cod Real Estate Updates:

I am having an open house today in Orleans at 42 Nickerson Rd. It is a lovely home completely renovated in 2004. There are 4 bedrooms and 2.5 baths with a finished basement. Click here to view details and get directions.

Click here to check for updates to Cape Cod Real Estate.