• Fewer workers claimed unemployment insurance in the week ending May 3, an early indicator that the job market continues to improve surely even if slowly. Initial claims for unemployment insurance[1] were at 319,000, fewer by 26,000 from the previous week’s level.

• Claims are now down to their normal levels. If this trend continues, NAR forecasts about 2 to 2.5 million net new job creations this year and the next year.

• For the week ending April 26, the largest decrease in claims were in Michigan (-6,642), New Jersey (-2,269), Pennsylvania (-1,704), Maryland (-1,670), and California (-1,237).  The largest increases in claims New York (+23,523), Massachusetts (+3,983), Rhode Island (+1,080), Oregon (+959), and Delaware (+956).

• Still, what matters to housing is the number of people with jobs as depicted in the graph above. Although the unemployment rate has been dropping with the April rate at 6.3 percent, the share of the population that is employed has barely nudged at 58 percent from its peak of about 63 percent. In a testimony before Congress yesterday, Federal Reserve Board Chairman Janet Yellen reported that labor market conditions are “far from satisfactory” and that “housing may be stalling and bears watching.”  Existing home sales are hovering at about 4.6 million in 2014, down from last year’s average of about 5 million.

Information provide from the National Association of Realtors.

REALTORS® Expect Modest Price Growth in Next 12 Months Based on March 2014 REALTOR® Survey

REALTORS® generally expect prices to increase over the next 12 months at a modest pace with a median expected price increase at about 4 percent, according to the latest REALTORS® Confidence Index. Low inventory compared to demand is expected to continue to buttress prices, as well as the declining share of distressed sales in the market.

The states with the most upbeat expected price increases of 5 to 7 percent are California, Oregon, Nevada, Georgia, Florida, and Hawaii (red). In states with booming economies like Washington, North Dakota, Texas, Michigan, the DC-Metro Area, and NY, the expected price increase is about 3 to 5 percent (orange). In the rest of the states, the expected price growth is less than 3 percent (blue)

For the Full Article go to:

http://economistsoutlook.blogs.realtor.org/2014/04/29/realtors-expect-modest-price-growth-in-next-12-months-based-on-march-2014-realtor-survey/

One of the most difficult times for buyers and sellers to make informed decisions on pricing, or making or responding to offers, is during perceived variations in the Real Estate market. It is relatively easy for Realtors to guide buyers and sellers when there is consistency in the marketplace. It’s a bit more of a challenge to gauge changing trends when things are in flux. As in all aspects of life, there is often a sense of uncertainty when things are moving away from what had been the norm, as seems to be true today.

The answer is “Yes”; rely on your Realtor during these ever-changing times. Statistics confirm that sales are on the rise, and despite the knowledge that these changes are being compared to the “down market” of last year, these numbers will most assuredly continue to rise. These statistics support the rally-cry of economist who are carefully monitoring the new horizon of future housing improvements. Your Realtor is the one closest to the daily action, and can respond most knowledgably to your questions and housing needs.

The latest numbers also convey to buyers that it remains a good time to purchase a home. All reports predict, if not confirm, that interest rates will remain low, making it extremely affordable to borrow money. And even though inventory is relatively low, it remains, at least for the moment, a “buyer’s market”. As for Sellers, well they are currently offering housing products at realistic prices. In many cases homes are presented in move-in ready condition, and often with numerous upgrades. Furthermore, the terms and conditions negotiated through the aid of a Realtor ensure that both parties will reach their common goal of buying and selling a home.

There is little doubt that we are going to continue to see positive trends of change in the housing market. By all accounts, when moving forward, we will enjoy a very different real estate experience than we have come to expect during the last several years. While change is not easy to grasp, the best source for reliable housing information continues to be from the Realtors who are in the market every day. Realtors have their fingers on the pulse of buying and selling homes, even when it happens to be an irregular pulse.

Richmond Real Estate Foot-traffic in August Can Be a Test in Patience

Typically August is one of the slowest months of the year for real estate activity, followed closely by December.  Vacations and back to school activities obviously rival the December holidays. As a result, less foot traffic means less activity.

Understanding that we know the people who are out looking for homes is going to be fewer in August, you would think we would be prepared for the resulting activity. This lack of activity is reflected in the number of people actually out searching for homes this time of year. We would like to believe that those folks out searching for homes are very serious about purchasing one. Unfortunately it doesn’t always translate into website hits or open house traffic or home sales. Therefore, patience is the key.

According to SentriLock, LLC, Foot traffic and future home sales have a strong correlation. NAR research with monthly data on the number of showings supports this notion. Just try relating such figures to the sellers whose listings you have on the market and see how supportive your clients suddenly become. Nevertheless, it is a fact.

Foot traffic from this year to last year in August will likely be the same for our area of Richmond, VA. The Richmond Association of Realtors will support this idea once their figures come out in September. Although foot traffic will be slow, the sales activity will likely be up slightly this year. The market slump is behind us and mortgage rates remain low. There are still deals to be made and it remains a buyer’s market – for now.

So keep being patient, the fall market in Richmond is almost upon us, and foot traffic will be on the increase. Low mortgage rates and tightening inventories are drawing more potential buyers into the market as confidence in price stability and stable employment grows. Keep your hat on; real estate and new-homes construction are going to experience significant change in the coming year. Tell that to your clients!