Monday, May 18, 2015

What's in Fed Tea Leaves Regarding Mortgage Rates?



Courtesy of BankRateMonitor.com

We get a closer look this week at the behind-closed-doors discussion during last month’s Federal Reserve meeting. More detail will be useful because there’s confusion about when the Federal Open Market Committee might actually begin to raise interest rates. In addition, there are several key reports due on the housing market.

This week's economic readings include:
Monday
  • The National Association of Home Builders releases its May sentiment index.
Tuesday
  • The Commerce Department reports on April housing starts and building permits.
Wednesday
  • The Federal Reserve releases minutes from the April FOMC meeting.
Thursday
  • The National Association of Realtors reports on April existing home sales.
Friday
  • The Labor Department releases the April consumer price index.

Handicapping rate-hike timing

Throughout most of the past year, the consensus among economists (as discerned by our Bankrate Economic Indicator survey) was for a “liftoff” in interest rates as early as June. The central bank hasn’t boosted short-term rates, now parked between zero and one-quarter of 1 percent, since 2006.
The timing of an increase appears to have been delayed after a weaker-than-expected first quarter. The forthcoming minutes will be mined for clues on when the rate hike might come.

April FOMC statement revisited

The official statement from the Fed’s policymakers gave us an idea about what they want to see before they'll pull the rate-raising trigger. The FOMC expects it will need to boost rates “when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.”

Alan MacEachin, corporate economist at Navy Federal Credit Union, says he’ll be “looking for indications in the minutes that reflect the degree of confidence among members of the FOMC that both of these events will occur in the near future.”

The difference between a consensus and “diversity of opinion” will help him to determine whether a rate hike could be coming in September or sometime later instead.

The scent of rising inflation?

Last week’s reading on wholesale prices, by itself, didn’t provide much reason to believe that inflation is picking up. In fact, it was moving in the opposite direction. The producer price index was down 0.4 percent, falling short of expectations.

Gus Faucher, senior economist at PNC Financial Services Group, thinks a transition may be in the cards. “With energy prices now at a bottom, inflationary will stabilize, then gradually move higher," he says. "This will give the FOMC the "confidence" it's looking for that inflation will move toward 2 percent.”

Faucher also points to acceleration in compensation costs within the Employment Cost Index as a sign of “a gradual pickup in near-term inflation.”

Home sales and the mortgage rate surge

Mortgage interest rates have risen for three straight weeks. Bankrate’s average for the 30-year fixed-rate mortgage was slightly above 4 percent last week. If those levels hold, or are exceeded, could that put a dent in the somewhat tenuous housing market recovery?

“Typically, mortgage rates don’t begin to act as a drag on housing until they hit around 6 percent and we are a long way from that,” says John Canally, economist with LPL Financial.

PNC Financial’s Faucher adds that the rise in rates is being countered by a variety of positives for the market, including new rules aimed at encouraging lending -- “particularly to first-time buyers.” He says affordability, reflecting the blend of home prices and interest rates, is good.

Upbeat sales forecast despite rising rates

The National Association of Realtors' chief economist, Lawrence Yun, commented last week that a relative shortage of homes available for sale is helping to push up prices and dampen affordability. While keeping a close eye on those trends, the trade group still expects sales of previously-owned homes this year to rise to the highest level since 2006.

An exception is in the Northeast, “where outside of Boston, contract activity and price appreciation have stagnated since late last year because of slower economic growth and weaker local job markets,” Yun noted.

No doubt the industry will be hoping that remains the exception and not an indicator of things to come for the rest of the country.

Information Provided by Donna Antonucci
Have a question about this article or any others on this site? 
Enter your inquiry here.




First NameLast Name


Cell PhoneRe-enter Cell Phone


Email AddressRe-enter Email Address


Enter your inquiry here


 
 

Monday, May 11, 2015

Tesla's New Home Battery - Energy Storage for a Sustainable Home

I think Elan Musk is the Edison of our time, the next Steve Jobs and think he new battery will transform energy in the US.  My next car will be a Tesla.  I love being eco friendly and the idea of reducing our dependence on fossil fuels.  Here is information on his new home battery.....

Powerwall is a home battery that charges using electricity generated from solar panels, or when utility rates are low, and powers your home in the evening. It also fortifies your home against power outages by providing a backup electricity supply. Automated, compact and simple to install, Powerwall offers independence from the utility grid and the security of an emergency backup.




The average home uses more electricity in the morning and evening than during the day when solar energy is plentiful. Without a home battery, excess solar energy is often sold to the power company and purchased back in the evening. This mismatch adds demand on power plants and increases carbon emissions. Powerwall bridges this gap between renewable energy supply and demand by making your home’s solar energy available to you when you need it.




Avoid Paying Peak RatesPower companies often charge a higher price for electricity during peak evening hours than overnight when demand is low. Powerwall can reduce your power bill by storing electricity when rates are low and powering your home when rates are high.




Capacity 

Powerwall comes in 10 kWh weekly cycle and 7 kWh daily cycle models. Both are guaranteed for ten years and are sufficient to power most homes during peak evening hours. Multiple batteries may be installed together for homes with greater energy need, up to 90 kWh total for the 10 kWh battery and 63 kWh total for the 7 kWh battery.



Energy Security
Powerwall automatically switches to battery power in the event of an electric company outage, bringing peace of mind to those who live in areas prone to storms or unreliable utility grids.

Beautifully Functional

Current generation home batteries are bulky, expensive to install and expensive to maintain. In contrast, Powerwall’s lithium ion battery inherits Tesla’s proven automotive battery technology to power your home safely and economically. Completely automated, it installs easily and requires no maintenance.



Information Provided by Donna Antonucci
Have a question about this article or any others on this site? 
Enter your inquiry here.

First Name
Last Name
      
Cell Phone
Re-enter Cell Phone
      
Email Address
Re-enter Email Address
      
Enter your inquiry here

Thursday, May 7, 2015

Hoboken Monthly Stats Ending April 2015



(PPSQFT calculated using condos only.  However, only 1, 2, and 3+ bedrooms are shown on this chart.  The difference between 100% and the total percentage shown by neighborhood equals the excluded studios.  1-4 families are excluded from this analysis.)
79 Properties Came On The Market Last Month. Here is the list of active listings in the market.  Click on the listing to see property information in detail.




Have a question about this article or any others on this site? 
Enter your inquiry here.




First Name Last Name


Cell Phone Re-enter Cell Phone


Email Address Re-enter Email Address


Enter your inquiry here





141 Properties Went Into Contract  Last Month

91 Properties Sold Last Month 

165 total active listings are on the market as of the date of this post. 298 are under contract.


(PPSQFT calculated using condos only.  However, only 1, 2, and 3+ bedrooms are shown on this chart.  The difference between 100% and the total percentage shown by neighborhood equals the excluded studios.  1-4 families are excluded from this analysis.)



The Absorption rate is 1.17 months. See the attached picture of the absorption rate over time.  The absorption rate is a number that describes how many months it will take to see off the current inventory at the current rate of sales.  We had 141 under contact listings last month and we have 165 active listings.  So at the current rate of 141 under contact listings per month, it would take 1.17 months (165/141) to sell off the current inventory.  See the chart attached as a photo to see how absorption rate has fluctuated over time.
  
See the chart attached as a photo to see how absorption rate has fluctuated over time. The absorption rate is often thought of as the factor that indicates if we are in a sellers' or buyers' market.


Generally if there is more than 4 months of inventory it's a buyers' market.  Less than 4 months it's a sellers' market.  Prices are down but so is the inventory.


Another key factor is listing date to contract.  See the quarterly review and consult an agent.  Outlyer scan skew these numbers.
Hoboken Real Estate Monitor.com now offers Pending and Sold Listings.

See the embedded document below for Price Per Square Foot by bedroom and neighborhood so you can understand how location effects price.




Information Provided by Donna Antonucci
Have a question about this article or any others on this site? 
Enter your inquiry here.




First Name Last Name


Cell Phone Re-enter Cell Phone


Email Address Re-enter Email Address


Enter your inquiry here
201.891-6900 (O)

Price Per Square Foot by Bedroom - 2006 to Present (Q1 2015)


This is the chart that everyone likes. It shows the price per square foot by neighborhood for Hoboken overall. Click on the graph for a larger view.

Prices again are at all time high, this is a good indicator for real estate market. This also indicates the high demand of residential properties in the market and good economic conditions. 

Notice how prices for one and 2 bedroom condos are all going up since Q1 2012. Trend is same for 1 and 2 bedroom properties. Prices for 3 bedroom are also appreciated with the overall market conditions. 3 bedroom category are always been the choice of buyers. Trend is upward and prices are again expected to go up  during last quarter of the year. The great thing about this graph is it puts the weekly and monthly observations into a broader perspective. The trend is clear that prices are going up. The trend line for studios and 4 bedroom is highly fluctuating due to less inventory of these kind of properties in the market. 

Will the trend continue??

After the crash in October 2008, Trends were at their lowest points in Q1 2012. Prices are regularly appreciating  since Q1 2012 with slight increase or decrease over the period. 1, 2 and 3 bedroom, all has recorded the upward trend in this period. People would rather try and hold on, they would like to keep track of the trends and would like to wait and watch. Risk are on the peak and prices may go up or down. 

Notice how 1 and 2 bedroom reached their all time high in this quarter and it is expected to increase in next quarter as well. If you are looking to sell your property, this is the best time. Check how much your property is worth with our Property Value Estimator tool

Notice that 1 and 2 bedrooms largely follow the same upward trend since Q1 2012. There is much more volume in Hoboken in 1 and 2 bedrooms with 2 bedrooms roughly 2/3 larger than one bedroom sales in terms of units. Q4 2010 recorded lowest price for 2 bedrooms. 2014 also maintained the same upward trend from Q1 2012.  Prices were not highly appreciated in this quarter but increasing with a steady growth rate. This is good for investors and sellers.

The number of studios and 4 bedroom sales in Hoboken is small in absolute terms so even one purchase with a very high or low price per square foot can swing the average. So, I largely discount this as an indicator.

Information Provided by Donna Antonucci

Weichert Realtors
201-240-6832

donna@donnaantonucci.com
www.propertyvalue.cc
www.Vrealia.com


Donna Antonucci Hoboken real estate monitor
Click here to go to the Home Page


Donna antonucci


Have a question about this article or any others on this site? 
Enter your inquiry here.




First Name Last Name


Cell Phone Re-enter Cell Phone


Email Address Re-enter Email Address


Enter your inquiry here