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Fair Economic Forecast as Trump Policies Come into Focus

By Susanne Dwyer

The U.S. economy will continue to grow—though at a “modest” rate—through the end of this year and into 2017, with President-Elect Trump’s proposed policies prompting Fannie Mae to issue a fair forecast in its recently released November 2016 Economic and Housing Outlook. Notably, the Outlook predicts shrinking housing affordability, especially if mortgage rates follow their post-election surge.

“The lack of homes for sale, particularly at the lower end of the market, continues to be a significant challenge for housing,” said Doug Duncan, Fannie Mae chief economist, in a statement on the Outlook. “Demand from first-time buyers has increased with household formation and is outpacing supply, leading to significant price increases and affordability challenges for entry-level buyers. Home purchase affordability will be constrained further if the recent pickup in mortgage rates persists, which would present a downside risk to our forecast of housing and mortgage activity.”

The Outlook anticipates economic growth overall to average 2.4 percent in the second half of 2016, up from 1.1 percent rate in the first half, with the full-year 2016 and 2017 expectations remaining at 1.8 percent—even as Trump’s policies come into focus.

“We haven’t changed the general tone of our forecast at this time, but we will incorporate new policy assumptions as they become more concrete,” said Duncan. “Depending on the incoming President’s policy priorities, our forecast for 2017 is subject to both upside and downside risks—for example, we expect near-term growth would get a boost from any tax cuts and spending increases that are made, but if new policies result in sharply higher tariffs on China and Mexico, re-thinking the Trans-Pacific Partnership, and renegotiating the North American Free Trade Agreement, it would likely drag on growth.”

Single-family construction, in addition, will not be as major of a factor as it has been in terms of GDP growth due to its more solid footing late this year and into 2017, the Outlook indicates.

Business investment and employment prospects, however, have begun to wane—a “late-cycle phase in which growth tends to moderate,” according to the Outlook.

Source: Fannie Mae

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The post Fair Economic Forecast as Trump Policies Come into Focus appeared first on RISMedia.

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From:: Finance and Economy

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Fair Economic Forecast as Trump Policies Come into Focus

By Susanne Dwyer

The U.S. economy will continue to grow—though at a “modest” rate—through the end of this year and into 2017, with President-Elect Trump’s proposed policies prompting Fannie Mae to issue a fair forecast in its recently released November 2016 Economic and Housing Outlook. Notably, the Outlook predicts shrinking housing affordability, especially if mortgage rates follow their post-election surge.

“The lack of homes for sale, particularly at the lower end of the market, continues to be a significant challenge for housing,” said Doug Duncan, Fannie Mae chief economist, in a statement on the Outlook. “Demand from first-time buyers has increased with household formation and is outpacing supply, leading to significant price increases and affordability challenges for entry-level buyers. Home purchase affordability will be constrained further if the recent pickup in mortgage rates persists, which would present a downside risk to our forecast of housing and mortgage activity.”

The Outlook anticipates economic growth overall to average 2.4 percent in the second half of 2016, up from 1.1 percent rate in the first half, with the full-year 2016 and 2017 expectations remaining at 1.8 percent—even as Trump’s policies come into focus.

“We haven’t changed the general tone of our forecast at this time, but we will incorporate new policy assumptions as they become more concrete,” said Duncan. “Depending on the incoming President’s policy priorities, our forecast for 2017 is subject to both upside and downside risks—for example, we expect near-term growth would get a boost from any tax cuts and spending increases that are made, but if new policies result in sharply higher tariffs on China and Mexico, re-thinking the Trans-Pacific Partnership, and renegotiating the North American Free Trade Agreement, it would likely drag on growth.”

Single-family construction, in addition, will not be as major of a factor as it has been in terms of GDP growth due to its more solid footing late this year and into 2017, the Outlook indicates.

Business investment and employment prospects, however, have begun to wane—a “late-cycle phase in which growth tends to moderate,” according to the Outlook.

Source: Fannie Mae

For the latest real estate news and trends, bookmark RISMedia.com.

The post Fair Economic Forecast as Trump Policies Come into Focus appeared first on RISMedia.

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From:: Real Estate News

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Full Transparency Keeps Surprises at Bay

By Susanne Dwyer

andy_mcdonald

In the following interview, Andy McDonald, designated broker at HomeSmart Advantage Group in Tucson, Ariz., discusses his firm’s fee structure and technology, as well as his approach to agent service.

Region Served: Tucson, Ariz.
Years in Real Estate: 17
Number of Offices: 3
Number of Agents: 320

You took over HomeSmart Advantage Group in 2012 with a little over 200 agents and have grown the firm exponentially since then. What does it take?
We find that our agents are the best recruiters for the company. We’re always there to support them, and they talk about it. Also, we try to live up to what we say we’re going to do.

What attracted you most about HomeSmart, and which of the brand’s systems do you find most beneficial?
I find the HomeSmart concept to be a win-win. Not only do agents receive more than they would from any other company, but our fee structure puts them way ahead commission-wise, allowing them to earn more money than they would with a traditional brokerage where they would only receive 20 to 50 percent of their side of the commission. What’s more, the overall efficiency of the HomeSmart concept is the best for agents.

How do you stay ahead of the competition?
Our service, support and professionalism combined with the best fee structure makes us the best. HomeSmart’s technology and tools are second to none, which also helps us stand out from the competition. The fact that HomeSmart isn’t a traditional model is another point of differentiation, allowing me to offer the best possible package to agents.

What is the one thing you think your agents would say is the best thing you do for them?
We’re transparent, which means there are no surprises. We spell out our fee structure, give them their money when they close and don’t pull any punches. I make sure to set any and all expectations up front.

What is the key to real estate success?
I run the company as if I were still an agent. Before I make a decision, I ask myself how I would feel about it if I were an agent. I sold real estate for 16 years and I know what I liked and what I didn’t like, so I’m very sensitive as to what makes an agent happy. Agents’ lives can be difficult due to the amount of balls they need to juggle at any given time, and I don’t want to add any stress to their lives. I’m here to help them run their business the best way possible with as little stress as possible.

For more information, please visit www.homesmarttucson.com or www.homesmart.com.

For the latest real estate news and trends, bookmark RISMedia.com.

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From:: Real Estate News

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Building a Strong Foundation

By Susanne Dwyer

cindy_fox

In the following interview, Cindy Fox, broker/owner of Real Living Now Real Estate in Lake St. Louis, Mo., discusses her market, the real estate marketing programs available through her brand, and more.

Region Served: St. Louis metro area
Years in Real Estate: 22
Number of Offices: 1
Number of Agents: 40
Favorite Part of Your Job: Helping people
Best Advice for New Agents: Treat it like a real job and work for a company that provides training and support in order to build a strong foundation.

What is the most significant challenge you’re facing in your market today?
A shortage of inventory. Since we have more buyers than we do listings, it’s forcing prices up quickly.

How are you preparing your team to tackle this challenge?
We’re communicating with past clients to let them know now is a great time to sell since there’s a shortage, interest rates are still at historical lows and prices have recovered in our market area.

What makes your company unique in today’s market?
The fact that our pricing evaluations are completed with the appraisal in mind. Our agents are trained in regard to pricing listings with appraisal adjustments to help justify the price at the time of appraisal. We also have agents trained in staging who will do staging consultations for free.

How does your company stay flexible and current?
We’re small enough to make quick decisions if necessary. We also have an Agent Action Council that meets a few times a year to discuss any changes or issues that need to be addressed and offer feedback on any new programs or changes we’re considering. In addition, all of our owners are actively selling, which keeps us current in the marketplace. We’re involved in our state and local associations and aware of the current issues in the real estate industry.

Can you talk a little bit about your role as chair of the MarketAdvantage subcommittee, and how it positions the firm ahead of the competition in today’s market?
MarketAdvantage is an online marketing program provided by Real Living. It gives agents the ability to create flyers, postcards, brochures, etc., to help market their services, their listings or stay in touch with their clients. The program is easy to use and offers hundreds of different pieces to choose from and customize. There are social media posts, egreetings, enewsletters and marketing kits as well. Having a customizable marketing program that helps our associates stay in contact with their clients is one less thing our agents need to worry about when it comes to marketing.

What are you most proud of having accomplished as the former Chair of Real Living’s Broker Advisory Council?
The most rewarding part of serving on the Broker Advisory Council is the willingness of all the brokers to donate their time, talent and experience to make Real Living the best real estate company in the industry. Working together, we discuss the tools, education and programs our agents or brokers need to be successful. If we have systems in place, we’re consistently working to enhance them. There have been so many improvements …read more

From:: Real Estate News

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Fidel Castro is dead: reports

Cuban leader Fidel Castro, who reigned over the island nation for nearly a half-century following a communist revolution that culminated in victory in 1959, is dead at the age of 90, according to multiple reports early Saturday. The Miami Herald cited Cuban President Raul Castro, his brother’s successor, as having announced the death.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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From:: Stock Market News

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Millennials Still Chasing American Dream despite Hurdles

By Susanne Dwyer

millig_infographic

Surprising to some, millennials are all about chasing the American Dream and owning a home of their own, despite current market and economic setbacks. This infographic from FirstTimeHomeFinancing.com explains what’s keeping millennials from pursuing their homeownership dreams and outlines several programs that could help them achieve their goals.

This was originally published on RISMedia’s blog, Housecall. Visit the blog daily for housing and real estate tips and trends. Like Housecall on Facebook and follow @HousecallBlog on Twitter.

The post Millennials Still Chasing American Dream despite Hurdles appeared first on RISMedia.

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From:: Finance and Economy

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Millennials Still Chasing American Dream despite Hurdles

By Susanne Dwyer

millig_infographic

Surprising to some, millennials are all about chasing the American Dream and owning a home of their own, despite current market and economic setbacks. This infographic from FirstTimeHomeFinancing.com explains what’s keeping millennials from pursuing their homeownership dreams and outlines several programs that could help them achieve their goals.

This was originally published on RISMedia’s blog, Housecall. Visit the blog daily for housing and real estate tips and trends. Like Housecall on Facebook and follow @HousecallBlog on Twitter.

The post Millennials Still Chasing American Dream despite Hurdles appeared first on RISMedia.

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From:: Real Estate News

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Merle L. Whitehead: A Family-Built Powerhouse

By Susanne Dwyer

merle_whitehead

There was big news coming out of Upstate New York this summer when Merle L. Whitehead, chairman of RealtyUSA Broker Services, Inc., announced that he had sold the company to Pennsylvania giant Howard Hanna Real Estate Services, merging to create one of the largest real estate companies in the U.S.

“When you look at mergers in the past, to the best of my knowledge, this is the biggest family-owned business buying another family-owned business,” Whitehead says. “Together, we sold 89,737 houses and did $16.2 billion in volume. Eventually, we will transition the name to Hanna, but we have top-of-mind awareness and great name recognition in some areas, and we want to be strategic as we do it.”

With 65 offices covering Western, Central and Northern New York and the Capital Region, RealtyUSA is ranked the largest in the state. Howard Hanna Real Estate Services (under chairman Howard W. “Hoddy” Hanna, III) is the top brokerage in Pennsylvania and Ohio, with a total of 205 office locations in Pennsylvania, Ohio, New York, Virginia, Michigan, West Virginia, North Carolina and Maryland.

The deal came about when Hanna planned on opening a couple of new offices in Buffalo, and even though RealtyUSA had a 28 percent marketshare—compared to just 4 percent for Hanna—it got Whitehead thinking.

“I’ve been doing this for 45 years, and if it was 10 years ago, I probably would have bumped heads, but I decided to call Hoddy—who I have known for years—and asked, ‘Does it make sense for us to talk?’ We started talking in January and closed in June,” he says.

The merge fills the Upstate map for RealtyUSA, as although they were No. 1 in markets like Syracuse and Binghamton, Howard Hanna was the leader in Rochester.

Whitehead is remaining with the firm, taking the title of chairman of Upstate New York.

As part of the transaction, Howard Hanna is acquiring RealtyUSA’s mortgage banking property, which puts it in the mortgage banking business in New York for the first time.

The two companies are also sharing philosophies and programs. For instance, Howard Hanna offered a money-back guarantee for buyers, which is now part of RealtyUSA’s promise, and the consolidation is happening across the board with things like web design, offices and agents.

“My agents were ecstatic that our company was sold to another family-owned company with good core values,” he says. “Our agents have bought into their personalities, and we feel like everything we had, we got to keep, in addition to getting some new, exciting stuff.”

The combined company plans to continue expansion in Buffalo and look into growing in Syracuse and Albany next.

“Over the last 20 years, all our growth has been through acquisitions, and it’s something I enjoy and will continue working on,” Whitehead says. “We plan on continuing to grow through mergers and acquisitions and recruiting more agents.”

Vitals: RealtyUSA
Years in Business: 45
Size: 65 offices, 2,147 agents
Regions Served: All of Upstate New York, including Western New York, Central New York, Northern New York, Capital Region, Southern Tier
2015 Sales Volume: $3.56 billion
2015 Transactions: 20,023

For …read more

From:: Real Estate News

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Refi Applicants Discouraged by Limited Credit Access

By Susanne Dwyer

The proportion of consumers who applied for credit and reported feeling “discouraged” by or “rejected” in their experience has clawed higher, especially among mortgage refinance applicants, in the Federal Reserve Bank of New York’s recently released Survey of Consumer Expectations (SCE) Credit Access Survey for October 2016. The finding underscores the overall sentiment of the consumers surveyed, which, according to the New York Fed, is “deteriorating.”

Highlights from the Survey:

  • The proportion of credit applicants who were granted credit (either through an auto loan, credit card, credit card limit increase, mortgage or mortgage refinance) in the last year was 32.4 percent in October, the lowest percentage since February 2015; the proportion of credit applicants who were rejected in the last year was 8.0 percent in October, up from 9.9 percent in June.
  • The mortgage refinance application rate jumped to 13.6 percent in October, the highest percentage since February 2014 and up from 10.2 percent in June, potentially reflecting the motivation to secure a lower interest rate.
  • Rejections in all credit types were concentrated among low-risk score and younger credit applicants, with the per-applicant rejection rate and the per-application rejection rate both at levels also not seen since February 2015. The rejection rate for mortgage refinance applications was 23.6 percent in October, up from 17.3 percent in June.

Looking ahead, the proportion of consumers who are likely to apply for credit in the next year declined to 27.8 percent in October from 28.4 percent in June, the lowest percentage since October 2013—the inception of the Survey. The trend was driven largely by consumers with a credit score above 680 and/or younger than age 60.

The proportion of consumers who perceive they will be rejected for a mortgage refinance in the next year, however, also declined, down to 21.4 percent in October from 26.7 percent in June.

Source: Federal Reserve Bank of New York

The post Refi Applicants Discouraged by Limited Credit Access appeared first on RISMedia.

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From:: Finance and Economy

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Refi Applicants Discouraged by Limited Credit Access

By Susanne Dwyer

The proportion of consumers who applied for credit and reported feeling “discouraged” by or “rejected” in their experience has clawed higher, especially among mortgage refinance applicants, in the Federal Reserve Bank of New York’s recently released Survey of Consumer Expectations (SCE) Credit Access Survey for October 2016. The finding underscores the overall sentiment of the consumers surveyed, which, according to the New York Fed, is “deteriorating.”

Highlights from the Survey:

  • The proportion of credit applicants who were granted credit (either through an auto loan, credit card, credit card limit increase, mortgage or mortgage refinance) in the last year was 32.4 percent in October, the lowest percentage since February 2015; the proportion of credit applicants who were rejected in the last year was 8.0 percent in October, up from 9.9 percent in June.
  • The mortgage refinance application rate jumped to 13.6 percent in October, the highest percentage since February 2014 and up from 10.2 percent in June, potentially reflecting the motivation to secure a lower interest rate.
  • Rejections in all credit types were concentrated among low-risk score and younger credit applicants, with the per-applicant rejection rate and the per-application rejection rate both at levels also not seen since February 2015. The rejection rate for mortgage refinance applications was 23.6 percent in October, up from 17.3 percent in June.

Looking ahead, the proportion of consumers who are likely to apply for credit in the next year declined to 27.8 percent in October from 28.4 percent in June, the lowest percentage since October 2013—the inception of the Survey. The trend was driven largely by consumers with a credit score above 680 and/or younger than age 60.

The proportion of consumers who perceive they will be rejected for a mortgage refinance in the next year, however, also declined, down to 21.4 percent in October from 26.7 percent in June.

Source: Federal Reserve Bank of New York

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From:: Real Estate News