Economic Report November 2011

November 2011
Information on the Economy Nationally

Shouldn’t we wait to buy a home?

Forbes Forbes 10/12/2011 “ My answer to those who ask whether now’s the time to buy a house is that the American Dream is and always was alive and well. It has nothing to do with the direction of housing prices but everything to do with your financial situation, income stability, ability to shoulder the costs, and if the home you have your eye on is your version of the American Dream— a home you love that you hope to live in for an extended period.”

Top 4 Reasons To Buy a Home 1.) It means having a good place to raise children and provide them with a good education 2.) You have a physical structure where you and your family feel safe 3.) It allows you to have more space for your family 4.) It gives you control over what you do with your living space, like renovations and updates National Housing Survey Fannie Mae 10/2011

Wall Street Journal Wall Street Journal 10/15/2011 “ It's an excellent time to buy a house, either to live in for the long term or for investment income.” It’s Time to Buy That House

Now might be the best time ever to buy a home Market Watch 10/03/2011 Market Watch.com “ Now could be the best time in history to buy a home.”

“ Many buyers who waited for rock-bottom prices know that now is the time to buy .” U.S. News and World Report US News and World Report 11/1/2011

“ It is important for America to realize that when it comes to housing, now is a time to buy .” JP Morgan JP Morgan Market Insights 10/2011

Businessweek Businessweek 10/24/2011 Crazy home deals await the creditworthy. “ It’s hard to see the possibility of losing on a home purchase right now, with these mortgage rates.” - Dean Baker

Capital Economics Capital Economics 10/12/2011 Median mortgage just as cheap as median rent. “ The previous declines in house prices and the more recent drop in mortgage rates to record lows have created an unusual situation in which the median monthly mortgage payment is more or less the same as the median rental payment.”

Housing Cost Over Next 30 Years* Forbes.com 10/13/2011 Rent Buy * Assuming payment of $1,500 for both rent and mortgage; a fixed rate mortgage and an annual rent increase of 3.2% for inflation.

Forbes.com 10/13/2011 Retirement Fund Created from Homeowner Equity After 30 Years* Rent Buy * Assuming $300,000 current value with a 1% annual appreciation rate for residential property.

JP Morgan JP Morgan Market Insights 10/2011 “ By the 3rd quarter of this year, we estimate that the implied median mortgage payment had fallen to just 78% of the median asking rent…”

Shouldn’t We Wait for the Spring to Sell?

Don’t Wait to Get It Sold!!

Supply & Demand

Foreclosures “ While foreclosure activity in the third quarter continued to register well below levels from a year ago, there is evidence that this temporary downward trend is about to change direction, with foreclosure activity slowly beginning to ramp back up.” - James Saccacio, Chief Executive Officer of RealtyTrac Realty Trac 10/11/2011

Foreclosures: The Eye of the Storm

Zillow Zillow 10/11/2011 "At this point, we maintain the expectation that a definitive bottom will not occur until 2012." - Zillow Chief Economist Dr. Humphries 2012

Clear Capital Clear Capital 10/06/2011 “ The housing market has yet to demonstrate the fundamentals necessary to overcome a seasonal slowdown over the next six months, which drives our projected drop in prices of 3.2% through Q1 of 2012. ”

“ According to Fiserv, a financial analytics company, home values are expected to fall… 3.6% by next June .” CNN Money CNN Money 10/31/2011

S&P 10/14/2011 “ The glut of houses in the process of, or likely to be in, foreclosure is depressing prices even further. Prices are expected to drop another 5% over the next few months .” Standard & Poors

Housing Wire 09/09/2011 “ Home prices could dip 6% to 7% before hitting rock bottom in early 2012, according to analysts at JP Morgan Chase.” JP Morgan Chase

Barclays Capital Housing Wire 10/14/2011 “ Home prices could fall up to 7% by the end of the 2012 1Q , Barclays Capital said in a report to clients.”

Forbes Forbes 10/12/2011 “ Trying to time the housing bottom is as much folly as trying to time stocks or any other investment vehicle. In fact, it’s greater folly because if housing prices do fall further, it’s likely to be because mortgage rates are rising, which would mean that over the long term that slightly lower price you may have paid could end up costing more in carrying costs than you saved.”

KCM Blog .com http://www.kcmblog.com/2011/10/26/will-the-30-year-mortgage-disappear/ http://www.kcmblog.com/2011/09/22/rates-stay-low-but-will-costs-go-up/

“ Attribute” Psychology Researchers say every person is a mixture of characteristics. Being known for one characteristic makes the person unique. Marilyn Monroe: Sexy Albert Einstein: Intelligence

Resources KEEPINGCURRENTMATTERS.COM Slide Slide Title Link 3,12,13,26 Housing Costs, Retirement Fund, Forbes http://www.forbes.com/sites/investor/2011/10/12/buy-that-dream-house-now-or-wait-until-prices-fall-further 4 Top 4 Reasons to Buy a Home http://www.fanniemae.com/portal/research-and-analysis/housing-quarterly.html 5 Return on Investment (Prices) http:// www.standardandpoors.com/home/en/us 5 Return on Investment (Stocks) http://money.msn.com / 6 It’s Time to Buy That House http://online.wsj.com/article/SB10001424052970204774604576629443313035736.html 7 MarketWatch.com http://www.marketwatch.com/story/now-might-be-the-best-time-ever-to-buy-a-home-2011-10-03?siteid=nwhreal 8 U.S. News & World Report http://money.usnews.com/money/blogs/my-money/2011/11/01/4-steps-to-take-when-preparing-to-buy-a-home 9, 14 JP Morgan http://www.jpmorgan.com/cm/BlobServer/marketinsights_housing.pdf?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1158658412427&blobheader=application%2Fpdf 10 Businessweek http://www.msnbc.msn.com/id/44991537/ns/business-us_business/ 11 Capital Economics http://www.capitaleconomics.com/us-housing/us-housing-market-monthly/med ian-mortgage-just-as-cheap-as-median-rent.html 18 Foreclosures http://www.realtytrac.com/content/press-releases/third-quarter-and-september-2011-us-foreclosure-market-report-6880 20 Zillow http://zillow.mediaroom.com/index.php?s=159&item=237

Resources KEEPINGCURRENTMATTERS.COM Slide Slide Title Link 21 Clear Capital http://www.clearcapital.com/company/MarketReport.cfm?month=October&year=2011&utm_source=ClearCapital&utm_medium=email&utm_content=MRlink&utm_campaign=1011HDIMRoptin 22 CNN Money http://money.cnn.com/2011/10/31/real_estate/home_prices/index.htm 23 Standard & Poors http://www.standardandpoors.com/ratings/articles/en/us/?articleType=HTML&assetID=1245322211852 24 JP Morgan Chase http://www.housingwire.com/2011/09/09/jpmorgan-expects-further-drop-in-home-prices 25 Barclays Capital http://www.housingwire.com/2011/10/14/home-prices-could-dip-another-7-barclays

Economic Report November 2011

by jrbhgardner on Nov 16, 2011

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Economic Report November 2011 — Presentation Transcript

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