865 Real Estate

East Tennessee Real Estate & Neighborhood Source

Troy Stavros of the 865 Real Estate team warns of Knoxville rental scams

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NOT for rent in KnoxvilleWVLT, Channel 8 news reporter Kyle Grainger speaks with Troy Stavros of the 865 Real Estate team regarding the current Knoxville rental scams that are predominant in today’s market.  Beware of rental ads that you see on Craigslist and even major websites like Trulia.com.  If they seem too good to be true, they typically are.  Contact a real estate professional to verify the validity of the rental.  To find out if the home is for sale, do a Google search on the address of the property.  If it is for sale as well as for rent, call the agent that has it for sale to be sure the rental is for real.

CLICK HERE TO WATCH THE NEWS STORY ON THE KNOXVILLE RENTAL SCAM

Knoxville Mortgage Rates Stay At All Time Lows

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mortgage-rates-knoxvilleRecord-low Knoxville mortgage rates stuck around for another week, allowing Knoxville home buyers and refinancers to lock-in ultra low financing, Freddie Mac reports in its weekly mortgage market survey. Both the 30-year and 15-year fixed-rate mortgages matched their all-time lows.

“Mortgage rates were virtually unchanged this week hovering at or near record lows and should further help to support a recovering housing market,” says Frank Nothaft, Freddie Mac’s chief economist.

Here’s a closer look at rates for the week ending June 28:

  • 30-year fixed-rate mortgages: averaged a record low of 3.66 percent, with an average 0.7 point, holding steady at last week’s average. A year ago at this time, 30-year rates averaged 4.51 percent.
  • 15-year fixed-rate mortgages: averaged a record low of 2.94 percent, with an average 0.7 point, dropping from last week’s 2.95 percent average. Last year at this time, 15-year rates averaged 3.69 percent.
  • 5-year adjustable-rate mortgages: averaged 2.79 percent, with an average 0.6 point, rising slightly from last week’s 2.77 percent average. Last year this time, 5-year ARMs averaged 3.22 percent.
  • 1-year ARMs: averaged 2.74 percent, with an average 0.4 point, holding the same as last week. A year ago, 1-year ARMs averaged 2.97 percent.

Source: Freddie Mac

Mortgage Rates hit new ALL TIME LOWS for the 6th consecutive week

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mortgage-rates-knoxvilleKnoxville mortgage rates hit new hit new all time lows AGAIN! Fixed-rate mortgages reached new all-time lows for the 6th week in a row. According to the Freddie Mac weekly mortgage market survey, we are swimming in fresh mortgage rate waters as a 30 year fixed mortgage is below 3.67% and the 15-year fixed-rate mortgage has dipped below 3%.

“Compared to a year ago, rates on 30-year fixed mortgage rates are almost a full percentage point lower, which translates into nearly $1,200 less in annual payments on a $200,000 loan,” says Frank Nothaft, Freddie Mac’s chief economist.

Here’s a closer look at rates for the week ending June 7th.

  • 30-year fixed-rate mortgages: averaged a new record low of 3.67 percent, with an average 0.7 point, falling from last week’s previous record low average of 3.75 percent. The rates on 30-year mortgages have been below 4 percent since early December. A year ago at this time, 30-year fixed-rate mortgages averaged 4.49 percent.
  • 15-year fixed-rate mortgages: averaged a new record low of 2.94 percent, with an average 0.7 point, dropping from last week’s previous all-time low of 2.97 percent. Last year at this time, 15-year rates averaged 3.68 percent.
  • 5-year adjustable-rate mortgages: averaged 2.84 percent, with an average 0.7 point, holding steady at last week’s average. Last year at this time, 5-year ARMs averaged 3.28 percent.
  • 1-year ARMs: averaged 2.79 percent, with an average 0.4 point, rising from last week’s 2.75 percent average. A year ago, 1-year ARMs averaged 2.95 percent.

What are the experts saying about the latest housing market data?

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housing market economistsWhile we know from being directly in the Knoxville housing market that things are on the upswing, let’s take a look at what the leading economic experts are saying regarding the latest housing market data.

Paul Diggle, property economist, Capital Economics

“March’s decline in existing home sales probably reflects the normal month by month volatility rather than renewed underlying weakness. The increase in households’ confidence in the outlook for the housing market, coupled with a gradual improvement in the pace of the economic recovery, should drive a rise in home sales later this year….It is possible that the pattern within the quarter has been driven by the weather, with falls in the most recent two months reflecting a degree of payback after January’s gain.” 

Doug Duncan, chief economist, Fannie Mae

“Conditions are coming together to encourage people to want to buy homes. Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”

Celia Chen, senior director of housing economics, Moody’s

“The residential property market is recovering, as the factors underlying demand and supply strengthen. Even after accounting for unusual seasonal patterns brought on by the unusually warm winter, conditions have not been this strong since the government ended homebuyer tax credits in 2010.”

Mark Vitner, senior economist, Wells Fargo

“Existing home sales dropped 2.6 percent, but are up 5.2 percent from a year ago. While existing sales are down for the second consecutive month, we are likely continuing to see payback from increases earlier this year. That said, we could see one more month of disappointing data, but we still contend the recent declines are not indicative of the trend. Stabilization will become more apparent once we return to normal weather.”

Mark Fleming, chief economist, CoreLogic

“Since the peak in home prices, mortgages rates have declined and affordability has risen dramatically. Housing affordability is at levels not seen since prior to the early 1990s …While real estate professionals often say that “now is a good time to buy,” it is clear today that April 2006 was probably not a good time to buy, while now may well be the time.”

National Housing Market Update: April 2012

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knoxville_real_estate-market-updateNational housing market update: Existing-home sales decreased in March, but continued to outperform last year’s levels. Inventory tightened and home prices showed further signs of stabilizing, according to the National Association of REALTORS®.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, declined 2.6% but are still 5.2% above the pace in March 2011.

Lawrence Yun, NAR chief economist, said the national housing market recovery is in the process of settling into a higher level of home sales.  “The recovery is happening though not at a breakout pace, but we have seen nine consecutive months of year-over-year sales increases,” he said.  “Existing-home sales are moving up and down in a fairly narrow range that is well above the level of activity during the first half of last year.  With job growth, low interest rates, bargain home prices and an improving economy, the pent-up demand is coming to market and we expect housing to be notably better this year.”

Total housing inventory at the end of March declined 1.3 percent to 2.37 million existing homes available for sale, which represents a 6.3-month supply at the current sales pace, the same as in February.  Listed inventory is 21.8% below a year ago and well below the record of 4.04 million in July 2007.

“We were expecting a seasonal increase in home listings, but a lack of inventory has suddenly become an issue in several markets with not enough homes for sale in relation to buyer interest,” Yun said.  “Home sales could be held back because of supply factors and not by demand.”

The national median existing-home price for all housing types was $163,800 in March, up 2.5 percent from March 2011.  Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 29% of March sales (18% were foreclosures and 11% were short sales), compared with 34% in February and 40% in March 2011.

Foreclosures typically sold for an average 19% below market price in March, while short sales were discounted 16%.

NAR President Moe Veissi, said buyer traffic is up.  “Our members are reporting an increase in foot traffic from a year ago, but more importantly, home shoppers this year are much more serious about finding the right home and making an offer,” he said.  “Stabilizing home prices and historically favorable affordability conditions are giving buyers more confidence, and REALTORS® have become more optimistic since the beginning of the year from the positive shift in buyer patterns.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 3.95% in March, up from a record low 3.89% in February; the rate was 4.84% in March 2011; record keeping began in 1971.

 

Source: NAR

More Foreclosures in Knoxville Expected to Hit the Market

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bank owned knoxvilleHow with the recently negotiated National Mortgage Settlement effect the current Knoxville housing market?

Foreclosures in Knoxville have been significantly slowed since the third quarter of 2010. Since that time banks have been concerned about the penalties they would face from the settlement and in turn chose to delay the actual seizure of foreclosed properties until the settlement was reached. These foreclosures in question are known as the ‘shadow inventory’ which is currently hanging over the market.

Now with the settlement complete the banks have a roadmap they can follow which will allow them to repossess a home without penalty. The “shadow inventory” of distressed properties will now find it’s way through the process and be put on the market for sale.  This means we will be seeing an increased amount of foreclosures in Knoxville hit our local real estate market.

Rick Sharga, executive vice president for Carrington Holding, explains:

“The bottom line is that 2012 will see a lot of foreclosures that should have taken place in 2011 and didn’t.”

How will this effect the housing market?  Good in the long run, not so good for prices in the short run.

The Washington Post reported:

“Mark Vitner, a senior economist at Wells Fargo Securities, said the settlement helps the housing market in the long run because it allows banks to proceed with millions of foreclosures that have been stalled.”

CLICK HERE TO SEARCH FORECLOSURES IN KNOXVILLE FOR SALE

 

 

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