New Home Sales On The Rise!

New-home sales dropped in June, but a sharp increase in prices and declining inventories may be signs the sluggish new-home market is finally showing signs of rebounding, the Commerce Department reported Tuesday.

Sales of new homes dropped 1 percent in June, reaching an annual rate of 312,000 -- less than half the 700,000 rate that most economists consider healthy for the new-home sector. New-home sales fell to record lows in the Northeast and were also particularly sluggish in the West.

The Commerce Department reported 164,000 new homes for sale in June, which is a record low. Taking into account June’s sales pace, the supply of new homes on the market dropped to a 6.3-month supply, the lowest since April 2010.

However, builders are starting to build more. Last week, the Commerce Department released a report that showed a rebound in June for new building permits -- an indication for future building. Also, builders broke ground on more homes in June, with housing starts soaring 14.6 percent last month, marking a six-month high in housing starts.

Meanwhile, the median price of a new home increased to $235,200 in June, up 5.8 percent from May. Compared to June last year, the median price rose 7.2 percent. However, new-homes continue to be considerably higher than previously owned homes. The median price on existing-homes averaged $184,300 in June.

Starting Today Lenders Must Provide Credit Scores to Consumers

A provision in the Dodd-Frank financial reform law, which took effect today, is requiring lenders to provide consumers with a free credit score, which will help provide new insights into why they may have been rejected for a loan or did not qualify for the best, lowest rate.

While borrowers can access their credit scores from the credit bureaus, the credit score that a lender uses isn’t always the same one that the credit bureau provides you. According to a report by the Consumer Financial Protection Bureau, some credit bureaus sell consumers “educational” scores that aren’t the same ones used by lenders, or these bureaus may base the score on a different model than the one lenders use.

Now, borrowers for the first time will get a more accurate view of what credit score lenders are using to base their mortgage on.

Under the new provision, lenders will be required to provide potential borrowers with a free credit score whenever they reject an application for a loan. Lenders must provide borrowers with an “adverse action” notice, which will include their credit scores as well as an explanation of why they were rejected for a loan.

Lenders will also be required to provide a free credit score and an explanation whenever they approve a loan but at a higher rate than what is given to their best customers.

Mark Greene, CEO of FICO, says that many borrowers may be surprised to learn that they didn’t qualify for a lender’s lowest rate when applying for a loan.

Source: USA Today (July 21, 2011)

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Improving Real Estate Marketing With Six Simple Steps.

Are you a realtor or real estate professional looking for ways to improve your website traffic and conversion rates? This article aims at methods and best practices to improve overall quality of traffic to your site and ultimately capture more home buyers.

With the explosion of social media in past few years, more people are starting their home buying search by reaching out to friends and websites online. Recent studies show more than 75% of home purchases in 2011 were initiated by an online research.

The search for the next dream home normally starts with two phases. During the first phase of this research, many of these home buyers looked for statistics on recent home sales, price comparisons, mortgage rates, foreclosure rates and nearby schools. These searches often lead clients to well-established real estate websites that offer wealth of information. These sites are backed by teams of dedicated professionals that have access to several resources and constantly update their content.

As a home buyer, while online research starts with search for metrics, it enters a new phase once a desired neighborhood and price range has been picked. This new phase is by far the most difficult phase for savvy shoppers as they start looking for an agent that has qualifications to secure them the best deal in today's distressed market. While there are several websites focused on providing statistics on real estate market, there are only few places that are focused on second phase of online home buying (Finding the Realtor). As a realtor, what could you do to be found by these ready to make a move home buyers?

Here Are Few Proven Techniques That Help Many Realtors Rank Better Than Their Competition:

1) Have a fresh looking, web2.0 website that is the center of all you online and offline marketing efforts:

Most Realtor Website Designs are created using duplicate templates that are several years behind today's standards. These sites often receive no real traffic and are only good for satisfying the empty space on your business card.

Start by replacing your 2005 looking website with a new design that targets today's shoppers.

2) Keep track of your ROI (Return on Investment):

Studies show 9 out of 10 realtors do not track the success of their marketing campaigns by tracking the end results. If you knew for every $500 spent, you closed one sale, then $500/lead would not sound expensive. On the other hand, $1/Lead when you close nothing after 10000 leads, becomes a very expensive campaign. Ask your real estate marketing provider to provide you with detail reports and statistics of your campaigns.

3) Invest in SEO (Search Engine Optimization).

SEO requires extensive experience and understanding of each individual market. Don't settle for MAGIC! Not only it will not work long term, it will also have negative impact and possibly getting your website black listed by search engines.

4) Social Media:

Social media presence is not just having a Facebook page. You need to use these tools to engage home buyers even before they start their search. It is highly recommended to use an agency to maintain your professional look and brand in social media sites.

5) Keep your website informative:

Your website should be informative enough that you would use it yourself! Need a mortgage calculator? Put one on your site. Target those home buyers that are just starting their research. If your website is found during the first phase of home buying research, you are golden, because customers simply transition to second phase without having to start all over again.

6) Be patient, while hungry for results:

Many of your efforts will show results only after few weeks/months. But if your website hasn't produced any leads/sales then you have to reconsider your strategy, budget, service provider, etc.

These techniques are used by many savvy realtors. You should consider applying them to your own website by analyzing the market you are in. If your website has not produced any sales in a year or two, consider shutting it down immediately and start all over again.

organiclead.com

Quick Stat: Google Display Ad Revenues to Pass $1 Billion This Year

eMarketer estimates Facebook’s share of US online display ad revenues will grow to 17.7% in 2011, up from a 12.2% share last year. Facebook is expected to see $978 million in additional display revenues in 2011—more than display revenues will grow this year at Yahoo!, AOL, Microsoft and Google combined.

US display advertising revenues at Google will top $1 billion for the first time in 2011, as the company’s share of overall US display revenues grows to 9.3%, eMarketer estimates. That’s up from an 8.6% share in 2010, when Google’s US display revenues grew an estimated 140.5% to $855 million.

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via eMarketer

10 Best Cities to Buy a Rental Property

Las Vegas has long been a Mecca for gamblers, but now it's the go-to place for real estate investors who want to clean up on rental properties.

Photo via CNN

Nationwide, the opportunities for this kind of investing haven't been this good in years. Not only are home prices way down but interest rates are near all-time lows and rents are climbing.

In May, according to the National Association of Realtors, 19% of home purchases were for investment, up from 17% in 2010.

Nowhere are potential profits better than in Las Vegas, according to a new survey by Local Market Monitor, a North Carolina-based firm that specializes in forecasting real estate prices. Local Market Monitor put together the survey for HomeVestors, a franchise real estate investing company. The survey ranked 316 markets by estimated returns on investment in single-family home rental properties.

"Overall, the highest ratings are in markets where home prices have fallen substantially," said Ingo Winzer, founder of Local Market Monitor. "Home prices in these markets are also below average, so empty homes are easily turned into competitive rental properties."

The cities were ranked by estimated future returns compared with the projected national average return. According to Local Market Monitor's data, for example, investors in Las Vegas who rent out the properties they buy now will have a 4.7% higher return than the 5.3% national average.

The potential for profits has to be high for investors to enter into this risky market: Winzer expects home values to fall another 7% over the next three years.

Here are the top 10 markets ranked highest in investment return.


READ MORE on CNN.com...

States With Largest Drop in Children Population

The U.S. population is getting older as the number of people who are under 15 years of age has shrunk in the past decade, and in some areas very dramatically.

Experts are blaming it on the down economy. 

William Frey, senior fellow at the Brookings Institution and a demography expert, says that many states have an alarmingly high number of older residents. “This is because many states in the middle of the country have experienced a long-term economic slide — losing young adult migrants, and not attracting many immigrants,” Frey says.

According to Frey, “in the longer term, the country may be ‘splitting apart’ between a more youthful, racially diverse set of Sunbelt states, and a more stagnant, aging set of northern and Midwest states — a division which will impact the politics and economies of each.”

The following is a list of the states with the largest drop in the percentage of their population who were under 15 between 2001 and 2009. 

1. Alaska 
Relative Decrease In Population Under 15 (2001-2009): -15.36%
Percentage of the Population Under 15 in 2001: 25.7%
Percentage of the Population Under 15 in 2009: 21.75%
Median Age 2001: 32.6 
Median Age 2009: 33.3




2. Maryland 
Relative Decrease In Population Under 15 (2001-2009): -12.91%
Percentage of the Population Under 15 in 2001: 22.42% 
Percentage of the Population Under 15 in 2009: 19.52%
Median Age 2001: 36.2 
Median Age 2009: 39.2

3. California 
Relative Decrease In Population Under 15 (2001-2009): -12.68%
Percentage of the Population Under 15 in 2001: 24.25% 
Percentage of the Population Under 15 in 2009: 21.18% 
Median Age 2001: 33 
Median Age 2009: 36.1

4. Rhode Island 
Relative Decrease In Population Under 15 (2001-2009): -12.68% 
Percentage of the Population Under 15 in 2001: 20.11% 
Percentage of the Population Under 15 in 2009: 17.56% 
Median Age 2001: 37.5 
Median Age 2009: 41

5. Hawaii 
Relative Decrease In Population Under 15 (2001-2009): -12.32%
Percentage of the Population Under 15 in 2001: 21.36% 
Percentage of the Population Under 15 in 2009: 18.72% 
Median Age 2001: 36.7 
Median Age 2009: 39.8










Info via Realtor Mag 07/14/2011
http://www.realtor.org/RMODaily.nsf/pages/News2011071404?OpenDocument