Monday Market Watch

   Market Recacp

 

The main story this week was the important monthly Employment report, which showed that wage inflation remains low. The European Central Bank (ECB) made no change in policy and had little impact on US markets. After a quiet four days, Friday's Employment data caused mortgage rates to improve and end the week a little lower.

Against a consensus forecast of 235K, the economy added 214K jobs in October. Revisions to prior months added 31K jobs. The economy has added an average of about 220K jobs per month so far this year, which is the fastest pace in over ten years. The Unemployment Rate declined to 5.8%, the lowest level since July 2008. Average Hourly Earnings, an indication of wage increases, were just 2.0% higher than one year ago. Bottom line, the job gains were roughly in line with expectations, but the low level of wage inflation was favorable for mortgage rates.

The results of this week's elections were largely as expected with the Republicans gaining control of the Senate and adding to their majority in the House. There was little immediate market reaction. So, will a Congress lead by the GOP mean that changes are coming for the mortgage market? The general belief is that there will be no significant changes any time soon, and probably not before the next Presidential election. The continuing conservatorship of Fannie Mae and Freddie Mac is the biggest industry issue Congress needs to address, but the complexity of any substantive reform and the significance of Fannie and Freddie to the housing market make this a very difficult issue.

Next week will be a light one for economic events. The JOLTS report, measuring job openings and labor turnover rates, will come out on Thursday. Retail Sales, which account for roughly 70% of economic activity, will be released on Friday. There will be Treasury auctions on Monday, Wednesday, and Thursday. Mortgage markets will 
be closed on Tuesday in observance of Veterans Day.






Call us Today to get started on your New Home Search!!

www.TorresReatlyGroup.com

Copyright @ 2014 MBSQuoteline

San Antonio Condo Sales on the rise, TAR reports!

San Antonio may have been a bit behind the condominium trend, but it appears we may be making up for lost time, according to the 2013 Texas Condominium Sales Report released by the Texas Association of Realtors (TAR).

Using data from the The Real Estate Center at Texas A&M University, TAR reports that between January 2013 and September 2013, 469 condominiums were sold in San Antonio. That figure marks a 18 percent increase from the number of condos sold over the same period of time in 2012.

At present, condominiums in San Antonio are spending an average of 113 days on the market — a 23 percent decline from the average posted a year ago.

The average price of a condominium in San Antonio as of September 2013 was $159,776 — an 11 percent jump from the average price posted in 2012.
The San Antonio snapshot is representative of the rising trend in condominium sales throughout Texas’ major metros.

“All types of housing are in demand in Texas,” says TAR Chairman Shad Bogany. “Given the rapid job and population growth across Texas’ major metro areas as well as our state’s shrinking housing inventory, it’s no surprise condo sales are playing an increasingly important role in the Texas housing market.”

The rising tide of condo sales in San Antonio is particularly significant, given that homebuyers here have been slow to embrace the concept.

Visit our website to start your Condo and Home search TODAY!  www.TorresRealtyGroup.com

By: Tricia Lynn Silva

First quarter 2013 sets aggressive pace for Texas real estate

Today, the Texas Association of REALTORS® released the 2013-Q1 edition of the Texas Quarterly Housing Report, showing surging demand for Texas homes at the start of the year as well as rising prices and shrinking inventory. Fueled by Texas’s population and job growth, the report bodes well for the summer selling season.

Shad Bogany, chairman of the Texas Association of REALTORS®, commented: “2012 was a strong year for Texas real estate and, based on these first-quarter results, 2013 looks to be even stronger. We’ve heard a lot about the growth of Texas and now we’re starting to really see the impact on our real estate market.”

As featured in the report, 53,937 single-family homes were sold in Texas in the first quarter of 2013, which is 17.53% more than the same quarter of the prior year. Of the 48 markets included in the report, 40 markets featured increases in sales, indicating the surge is broad-based throughout the state.

The median price for Texas homes in 2013-Q1 was $158,000, which is 7.04% more than the first quarter of 2012. In the same timeframe, the average price was $204,718 – that’s 6.87% more than 2012-Q1. The median price for Texas homes has steadily increased, exceeding or matching the price of the prior year every quarter since the Texas Quarterly Housing Report began in 2009.

“Historically, the median price for Texas homes has increased about four percent each year and we usually see the biggest jump in price between the first and second quarters,” said Jim Gaines, Ph.D., economist with the Real Estate Center at Texas A&M University. “So, with price increases already in the range of seven percent in the first quarter, we could see Texas homes increase in value significantly this year.”

However, Gaines also offered a strong caution, “We’ll only realize our potential for increased sales volume if more sellers enter the market and start listing their properties, increasing the inventory of homes for sale.”

In first quarter 2013, the market featured 4.2 months of inventory, which is 1.7 months less than the prior year. That is significantly less than the 6.5 months of inventory cited by the Real Estate Center as a market in which the supply of homes is balanced with demand.

Gaines explained, “There is clearly demand for Texas homes and rising prices are encouraging more homeowners to consider listing their properties. However, if a homeowner wants to move up, they must be able to find a property to move to, so more supply is needed to capture the growth potential in the market.”

Gaines continued, “In the coming months, I expect we’ll start to hear national news reports about increasing sales in other markets, possibly exceeding those in Texas. That’s because other markets boomed in the mid-2000s and busted in the late 2000s, meaning they need dramatic increases in sales volume and price to recover. I call that an ‘echo boom’ and it’s more indicative of market fluctuations than fundamentals. That never happened in Texas, so the increases you’re seeing in our state are indicative of true increases in demand, driven by population growth. Assuming we continue to add jobs as we have recently, that will make our increases more sustainable.”

The Texas Association of REALTORS® has been working to help the state absorb that growth, advocating for homeowners at the Texas Capitol during the current legislative session. Texas REALTORS® have advanced ideas on improving infrastructure for transportation and water in the state as well as consumer-protection provisions in the property-tax loan industry, mortgage lending, and the property-appraisal process. The 83rd Texas Legislature regular session ends May 31.

Chairman Bogany concluded, “The word is out that Texas is a great place to live and these results are further evidence of that. Now, Texas REALTORS® are on a mission to ensure that remains the case and help our state provide for the needs of its homeowners today and far into the future.”

The Texas Quarterly Housing Report is issued four times per year by the Texas Association of REALTORS® with multiple listing service data compiled and analyzed by the Real Estate Center at Texas A&M University.

About the Texas Quarterly Housing Report

Data for the Texas Quarterly Housing Report is analyzed by the Real Estate Center at Texas A&M University using statistics compiled from 48 multiple listing services in markets throughout Texas. The report includes data for single-family home sales over the course of one quarter and is scheduled for release by the Texas Association of REALTORS® on the following dates each year (or the next business day): Feb. 1, May 1, Aug. 1, and Nov. 1. This report is issued to the media, local REALTOR® organizations, and published on the Texas Association of REALTORS®’ consumer Web site, TexasRealEstate.com.

About the Texas Association of REALTORS®

With approximately 80,000 members, the Texas Association of REALTORS® is a professional membership organization that represents all aspects of real estate in Texas. We advocate on behalf of Texas REALTORS® and private-property owners to keep homeownership affordable, protect private-property rights, and promote public policies that benefit homeowners. Visit TexasRealEstate.com to learn more.

Eternal question: Should I buy or rent?

NEW YORK (CNNMoney) -- It's the eternal question in real estate: Should I buy or rent?
The answer has never been clearer: Buy!

In 98 of the top 100 housing markets, buying a home is more affordable than renting, according to the online real estate company Trulia. Only Honolulu and San Francisco buck the trend.
There are several reasons. Home prices are falling. Mortgage interest rates are at historically low levels. And rents are on the rise.

Of course, many renters are not in a position to buy. For one, it's hard to get a mortgage these days, despite low rates. And paying rent can push them further away from being able to afford to buy.
"Rising rents make it harder for people to save for a down payment, which is the biggest barrier to buying a home that aspiring homeowners face," Jed Kolko, Trulia's chief economist.
The nation's cheapest buyer's market is Detroit, where purchasing is only 3.7 times more expensive than renting.
Other top five metro areas where buying is much better than renting are Oklahoma City, Dayton, Ohio,Warren, Mich. and Toledo, Ohio.

The one number to watch for a housing recovery

Rankings like these, however, can obscure the factors that go into each decision.
Housing markets, even within a single metro area, typically have local submarkets. Take New York City, for example. Renting in Manhattan is more affordable than buying. But in suburban Westchester County just miles to the north, buying is the more affordable option.
The size of the home can also make a difference. In some markets, renting can be a better deal on larger homes, according to Trulia.

Readers on mortgage settlement: This stinks

In San Francisco, for example, studio and one-bedroom apartments sell for 13.1 times rent, while three bedrooms or larger sell for more than 18 times rent.
The Trulia survey does not take into account home price trends, which are another factor for individuals choosing whether to buy or rent.
"People will pay more for a home if they expect prices to rise and give them a better return on their investment," said Kolko.

0:00 / 1:27 No presidential fix for housing crisis

Those calculations are about to change, according to Ken H. Johnson, a professor of real estate at Florida International who has studied the buy-vs-rent question extensively. He believes home prices nationally have bottomed.
"The ship has turned," he said. "Markets should slowly start to recover. Housing will return to its traditional role of a safety investment."
If so, that adds an incentive to buy. And investing in many of the most expensive markets may be even safer.

Foreclosures: A rising tide ahead

Kolko pointed out that places like Honolulu, San Francisco and Boston have strong long-term growth prospects. They also have little physical space to grow, a factor that tends to keep prices strong.
On the other hand, old areas that aren't growing much -- while cheap -- may not return much in the long run.
"Buying is much cheaper than renting in slow-growing places with high vacancy rates and land to spare, like Detroit and Cleveland, where prices are unlikely to improve much in the future," he said.

Find homes for sale

By Les Christie@CNNMoney

First Published: March 21, 2012: 8:05 AM ET

Starbucks coffee: now served in cargo containers

Retailer converts shipping containers into shop space....Something we will see in San Antonio soon?

You've heard the popular refrain that Starbucks is everywhere. There may be some truth to that -- the massive coffee retailer has even set up shop in a shipping container.

The now-one-of-a-kind drive-thru/walk-up Starbucks coffee outlet off Interstate 5 in Tukwila, Wash., which opened Dec. 13, is constructed from four modified shipping containers, including one 20-foot container and three 40-foot containers.

And while novel for Starbucks -- this is the company's first foray into a trend gathering momentum for shipping container constructions, but perhaps not the last -- other stores built from shipping containers include a grocery in Seattle and a series of restaurants in San Francisco.

Spokesman Alan Hilowitz described the Tukwila store as another step in fulfilling Starbucks' core mission -- providing a gathering place for communities, using Starbucks' scale "for good," and reducing the corporation's carbon footprint -- while also recycling "the same kind of shipping containers that transport our coffees and teas around the world."

Tony Gale III, Starbucks' corporate architect and architect of record for the project, described the mindset with which he and his team tackled the store's design. "We were able to open our minds to the use of very common elements destined for the landfill as structure for a high-quality, drive-thru coffeehouse design -- essentially creating an industrial beacon for sustainable thinking."

This reflects Starbucks' focus on conservation-minded building initiatives that serve a dual purpose: helping to reduce operating costs and leading by example to push "the environmental design envelope in retail."

With many containers scrapped at the end of an average lifespan of 20 years, the Starbucks solution served to convert a potential waste stream from the company's supply chain into shop space.



This Tukwila store is also the first LEED-certified structure in town. It uses fully reclaimed material for the exterior. Rainwater collected from the roof reduces water consumption and nourishes surrounding "xeriscaping" -- landscapes and plants that naturally require less water.
Even the signage promotes environmental consciousness.

While this is not Starbucks' only drive-thru/walk-up store, it is rare among the company's 17,000 stores worldwide in that it offers no inside seating. Hilowitz said the prototype is easy to break down and transport, and may usher in more container stores.

"We can put a store like this on a lot that will be developed someday but is free for two or three years, and then we can move it."

Architect Tony Gale III says fast-moving baristas are Starbucks' solution to limit customers idling their cars as they await their "cup of morning joe." Already, between one-third to one-half of Starbucks stores have a drive-thru window.

The company's next goal in sustainable thinking: By 2015, it intends to make 100 percent of its cups reusable or recyclable.




Susan Galleymore