Minnesota Homes Today Local & National News

Pending Home Sales Index Cruises To Multi-Year High

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Pending Home Sales IndexHome buyers continue to push the U.S. housing market forward.

In November, for the second straight month, the Pending Home Sales Index eclipsed its benchmark reading of 100, posting a value of 106.4.

The Pending Home Sales Index (PHSI) is published monthly by the National Association of REALTORS®. It tracks homes under contract to sell, but not sold. The PHSI is relative index, comparing current contract activity to the activity of 2001 — the first year for which “pending homes” were tallied for an index.

The Pending Home Sales Index has posted an average score of 100.2 from January 2012 through November 2012, the most recent month for which there’s data. This is a significant data point because it means that the 2012 housing market is performing better than the 2001 housing market; one which is widely considered a strong one for housing.

It’s also meaningful because it foreshadows a strong market for 2013. With an increasing number of homes under contract to sell, it can be assumed that “closed units” will increase in the future, too.

The National Association of REALTORS® says that 80% of U.S. homes under contract go to closing within 60 days, and that many of the remaining homes go to closing within days 61-120.

The monthly Pending Home Sales Index, therefore, can foreshadow to today’s buyers and sellers what’s ahead for the housing market.

The Pending Home Sales Index is a forward-looking indicator.

Based on November Pending Home Sales Index, we should expect to the home resale market to remain strong, and to pick up strength, through the first quarter of 2013. Demand for homes is high, mortgage rates are low, and buyers are looking to get a good deal.

The first few months of the year are often thought to be “slow” for the housing market. This year, however, that may not be the situation. If you’re actively looking for homes in Minneapolis, the best prices may be the ones you get this winter. Click Minnesota Real Estate Today Properties

Post-Fiscal Cliff, Mortgage Markets Turn Attention To Jobs Data

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Unemployment RateMortgage rates moved higher Wednesday up congressional leaders voted to avoid the “Fiscal Cliff”.

Mortgage-backed securities (MBS) fell as investors bid up stock prices. Confidence among investors and consumers typically causes mortgage rates to rise. That’s what happened Wednesday.

For Thursday and Friday, expect jobs data to dictate where St Paul mortgage rates are headed.

The Federal Reserve has said that the national Unemployment Rate will dictate future monetary policy, with the central banker planning to raise the Fed Funds Rate from its target range near zero percent once joblessness falls to 6.5%. Currently, the jobless rate is 7.7 percent.

As the jobs market improves, equity markets should follow, causing mortgage rates to — again — move higher.

Thursday’s Initial Jobless Claims report has already influenced today’s mortgage rates. New claims rose 10,000 to 372,000 for the week ending December 29, 2012. This is slightly higher than Wall Street expected and mortgage bonds are moving better on the news.

Now, Wall Street turns its attention to Friday’s Non-Farm Payrolls report.

More commonly called “the jobs report”, Non-Farm Payrolls is a monthly publication from the Bureau of Labor Statistics, detailing the U.S. employment situation, sector-by-sector. The economy has added 4.6 million jobs since 2010 and analysts expect another 155,000 added in December 2012.

The Unemployment Rate is expected to tally 7.8%.

As more people get back to work, the nation’s collective disposable income rises, which gives a boost to the U.S. economy. Furthermore, more taxes are paid to local, state and federal governments which are often used to finance construction and development — two jobs creators in their own right.

Furthermore, as the ranks of the employed increase, so does the national pool of potential home buyers. With demand for homes high and rents rising in many U.S. cities, demand for homes is expected to grow. Home supplies are shrinking.

If you’re currently floating a mortgage rate, or wondering whether it’s a good time to buy a home, consider than an improving economy may lead mortgage rates higher; and an improving jobs market may lead home prices higher.

The market is ripe for a refinance or purchase today.

How To Make An Emergency Preparedness Kit For Your Home

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Home Emergency KitSome natural disasters can be forecast — hurricanes, snow storms and, in some cases, flooding. Other disasters occur unexpectedly, such as tornadoes and earthquakes.

As a homeowner or renter in Minneapolis , it’s a safe idea to prepare for disaster or unexpected emergency. Every home should maintain a ready, working emergency kit for such a time.

Here are some items to include in your home’s emergency kit :

  • Waterproof Container : Store items in a locking, plastic container
  • Battery-Powered Radio : A small radio can receive weather updates and emergency broadcasts. Pack extra batteries, or use a hand-crank radio, instead.
  • Light Source : Pack multiple flashlights and many spare batteries. LED flashlights are more expensive than “older” flashlights, but won’t lose battery power as quickly. Pack candles and matches, as well.
  • Water : Pack bottled water, storing larger bottles in a cool, separate place. Add several bottles of sport drink for variety, if desired.
  • Food : Pack non-perishable food such as canned fruits and vegetables; protein sources such as peanut butter or canned tuna; crackers and cookies; nuts and dried fruits. Remember to pack a can-opener, if needed. Include plastic utensils, if necessary.
  • Blankets : At least two blankets should be packed. Consider packing multiple sets of clothes, for different temperatures and seasons.
  • First-Aid Kit : A proper first-aid kit should include antiseptic, bandages, aspirin, an ace bandage, and allergy medicine for allergic reactions.
  • Emergency Contact List : Include a list of your local utility companies; phone numbers at which to contact friends and loved ones; and, your primary care physician’s number.

After packing your emergency kit, make sure to store it in an easy-to-reach location away from power lines, power sources, and any place that may be “extra dangerous” during a crisis. For example, storing an emergency kit in a garage or a shed may be safer than storing it in a basement or in a bedroom closet.

In an emergency, a little bit of preparation can go a long way. Be prepared and be safe.

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