A good one published recently is by Lawrence Yun, Chief Economist and Senior Vice President of Research at the National Association of Realtors. 

An excerpt – “As far as the economy and housing, the climate has also been somewhat other than temperate. Mortgage rates have already jumped from their exceptionally low rates of last year, and are likely to rise even further. Of course, we expected mortgage rates to increase – that is not unusual as an economy comes out of recession and is in recovery.  But another reason underlying additional upticks in interest rates is the situation in Egypt and other countries in the Near and Middle east regions.  As I am writing this column, Egyptians are “on the march” – whether for or against their current political leadership.  For better or worse, the tipping point for that most ancient of civilized nations is past and the country will undergo significant changes.

Why should those of us in the U.S. care? After all, Egypt is not a major oil-producing country. But Egypt’s neighboring countries are. The reigning regimes in those nations – including Saudi Arabia — have had a similarly tight but potentially shaky hold on power and that could impact the price and supply of oil. Oil prices not surprisingly surged above the $100 mark recently. Because of that, there will be additional worldwide inflationary pressure and a consequent need to charge higher interest rates to compensate for loss in purchasing power of money. For the U.S, that means each $10 increase in oil prices will result in Americans needing to fork over an additional $220 million each day for oil consumption. Those funds mostly will go to foreign oil-producing countries. Not into the U.S. economy. “

Read the full article – http://economistsoutlook.blogs.realtor.org/2011/02/22/february-2011-real-estate-insights-changing-times/

The earliest known inhabitants of Kelso were Native Americans from the Cowlitz tribe. The Cowlitz people were separated into the Upper (or Taidnapam) and Lower (or Mountain) Cowlitz tribes, who were members of the Sahaptin and Salish language families, respectively. In 1855, European explorers noted that there numbered over 6000 individuals of the Cowlitz Tribe.

Kelso was founded by Peter W. Crawford, a Scottish surveyor, who, in 1847, took up the first donation land claim on the Lower Cowlitz River. Crawford platted a townsite which he named after his home town of Kelso, Scotland. The original plat was dated and filed in October 1884. It became incorporated in 1889. In its early days, Kelso obtained the nickname “Little Chicago” as it became famous for its large number of taverns and brothels that catered to local loggers. On weekends, trainloads of loggers would come into town from the surrounding region looking for women, liquor, gambling and fights. The FBI finally forced the mayor to shut them down in the 1950s with the last closing in the mid-1960s. The economy continues to be based largely on wood products.

In the late 19th century and into the first part of the 20th century, Kelso was the center for commercial smelt fishing on the Cowlitz River. In 1910, according to the Oregonian Newspaper, 5,000 tons of fish were caught. The Kelso Chamber of Commerce created the slogan in 1956 and became known as the Smelt Capitol of the World. The Cowlitz River has historically had heavy runs of smelt and were shipped to markets around the country. Smelt numbers have declined significantly in the past several decades possibly due to overharvesting, global climate change and habitat loss.

Read more about Kelso, Washington on Wikipedia.

Kelso, Scotland

Kelso (Gaelic: Cealsaidh), (Scots: Kelsae) is a market town in the Scottish Borders area of Scotland, located where the rivers Tweed and Teviot have their confluence. The town has a population of just over 6,000; it is regarded as one of the most charming and quaint towns in the area with its cobbled streets, elegant Georgian buildings and French style cobbled market square.

Kelso’s other main tourist attractions are the ruined Kelso Abbey and Floors Castle, a William Adam designed house completed in 1726. The bridge at Kelso was designed by John Rennie who later built London Bridge.

The town of Kelso came into being as a direct result of the creation of Kelso Abbey in 1128. The town’s name stems from the fact that the earliest settlement stood on a chalky outcrop, and the town was known as Calkou (or perhaps Calchfynydd) in those early days.

Standing on the opposite bank of the river Tweed from the now-vanished royal burgh of Roxburgh, Kelso and its sister hamlet of Wester Kelso were linked to the burgh by a ferry at Wester Kelso. A small hamlet existed before the completion of the Abbey in 1128 but the settlement started to flourish with the arrival of the monks. Many were skilled craftsmen, and they helped the local population as the village expanded. The Abbey controlled much of life in Kelso-area burgh of barony, called Holydean, until the Reformation in the 16th century. After that, the power and wealth of the Abbey declined.

Sir Walter Scott attended the Kelso Grammar School in 1783.

Read more about Kelso, Scotland on Wikipedia.

Be a part of the first annual Cowlitz County Regional Business Expo 2011!

All businesses, chambers, cities and ports in Cowlitz County are invited to this one day business-to-business event. During the day, attendees will have the opportunity to network with other businesses and share information about their products and services. Following the Business Expo will be the Afterhours Reception, 5 – 8 pm, for attendees and guests to enjoy a choice of entrees, sides, desserts and drinks. You can purchase tickets for the after-hours reception even if you are not a participating vendor at the expo. For more information on the event and how to get tickets for the after-hours reception, check out the expo website or call the chamber at 360-423-8400.

I hope to see you there! This is going to be a very fun networking event

Location:
Cowlitz Regional Conference Center
1900 7th Avenue
Longview, WA 98632
Phone: 360.577.3122

Pending home sales improved further in December, marking the fifth gain in the past six months, according to the National Association of Realtors®

The Pending Home Sales Index,* a forward-looking indicator, increased 2.0 percent to 93.7 based on contracts signed in December from a downwardly revised 91.9 in November. The index is 4.2 percent below the 97.8 mark in December 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, credits good affordability conditions and economic improvement. “Modest gains in the labor market and the improving economy are creating a more favorable backdrop for buyers, allowing them to take advantage of excellent housing affordability conditions. Mortgage rates should rise only modestly in the months ahead, so we’ll continue to see a favorable environment for buyers with good credit,” he said.

“In the past two years, home buyers have been very successful, with super-low loan default rates, partly because of stable home prices during that time. That trend is likely to continue in 2011 as long as there is sufficient demand to absorb inventory,” Yun said. “The latest pending sales gain suggests activity is very close to a sustainable, healthy volume of a mid-5 million total annual home sales. However, sales above 6 million, as occurred during the bubble years, is highly unlikely this year.”

The PHSI in the Northeast increased 1.8 percent to 73.9 in December but is 5.3 percent below December 2009. In the Midwest the index rose 8.0 percent in December to 84.6 but is 5.1 percent below a year ago. Pending home sales in the South jumped 11.5 percent to an index of 101.9 and are 1.7 percent above December 2009. In the West the index fell 13.2 percent to 105.8 and is 10.7 percent below a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.

NOTE: Existing-home sales for January will be reported February 23 along with revisions for the past three years, and the next Pending Home Sales Index will be released February 28. Fourth quarter metro area home prices and state home sales will be published February 10; release times are 10:00 a.m. EST.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.

This report analyzes data as it affects a specific zip code. The Market Summary information offers a look at sales activity for the prior month and year, along with current and past year to date statistics. The graphs provide four different aspects of the real estate market and three of the four graphs break out trends by price increments.

Please contact me if you would like more detailed information on activity in your immediate neighborhood or want a Market Tracker for a zip code not included in this report.

Click here to Download

 The market seems to have picked up a little. 

Residential Sales – Single Family Home

December Residential Highlights
Comparing December 2010 to December 2009, closed sales decreased by 17.8%. However, pending sales grew by 4.5%. New listings dropped 2.7%.
Month-to-month , When comparing November 2010 with December 2010, closed sales grew from 297 to 347 (16.8%). Additionally, pending sales increased from 370 to 372 (0.5%). New listings dropped from 594 to 509 (-14.3%).
At the month’s rate of sales, the 3,156 active residential listings would last approximately 9.1 months. Inventory is at its lowest point since June 2010.

Sale Prices
Comparing December 2010 to December 2009, average sale price fell 8.5% and median sale price also fell 5.5%. Comparing November 2010 to December 2010, the average sale price decreased from $228,900 to $223,600 (-2.3%). The median sale price also decreased from $200,000 to $199,900 (-0.1%).
For the year, the average and median sale prices fell 0.7% and 1.7%, respectively, when compared to 2009.

2010 Summary
Comparing 2010 sales activity with that of 2009, closed sales went down 4.8%. Pending sales fell 8.6% and new listings also decreased by 3.1%.
Total sales volume for 2010 was $1.2 billion, near the total for 2009.

Download the complete report.

Source: Regional Multiple Listing Service (RMLS)

Here’s how to clean up your credit so you get the least-expensive home loan possible.

Getting the loan that suits your situation at the best possible price and terms makes homebuying easier and more affordable. Here are seven ways to boost your credit score so you can do just that.

1. Know your credit score

Credit scores range from 300 to 850, and the higher, the better. They’re based on whether you’ve paid personal loans, car loans, credit cards, and other debt in full and on time in the past. You’ll need a score of at least 620 to qualify for a home loan and 740 to get the best interest rates and terms.

You’re entitled to a free copy of your credit report annually from each of the major credit-reporting bureaus, Equifax (http://www.equifax.com), Experian (http://www.experian.com), and TransUnion (http://www.transunion.com). Access all three versions of your credit report at www.annualcreditreport.com (http://www.annualcreditreport.com). Review them to ensure the information is accurate.

2. Correct errors on your credit report

If you find mistakes on your credit report, write a letter to the credit-reporting agency explaining why you believe there’s an error. Send documents that support your case, and ask that the error be corrected or removed. Also write to the company, or debt collector, that reported the incorrect information to dispute the information, and ask to be copied on any materials sent to credit-reporting agencies.

3. Pay every bill on time

You may be surprised at the damage even a few late payments will have on your credit score. The easiest way to make a big difference in your credit score without altering your spending habits is to diligently pay all your bills on time. You’ll also save money because you’ll keep the money you’ve been spending on late fees. Credit card or mortgage companies probably won’t report minor late payments, those less than 30 days overdue, but you’ll still have to pay late fees.

4. Use credit carefully

Another good way to boost your credit score is to pay your credit card bills in full every month. If you can’t do that, pay as much over your required minimum payment as possible to begin whittling away the debt. Stop using your credit cards to keep your balances from increasing, and transfer balances from high-interest credit cards to lower-interest cards.

5. Take care with the length of your credit

Credit rating agencies also consider the length of your credit history. If you’ve had a credit card for a long time and managed it responsibly, that works in your favor. However, opening several new credit cards at once can lower the average age of your accounts, which pushes down your score. Likewise, closing credit card accounts lowers your available credit, so keep credit cards open even if you’re not using them.

6. Don’t use all the credit you’re offered

Credit scores are also based on how much credit you use compared with how much you’re offered. Using $1,000 of available credit will give you a lower score than having $1,000 of available credit and using $100 of it. Occasionally opening new lines of credit can boost your available credit, which also affects your score positively.

7. Be patient

It can take time for your credit score to climb once you’ve begun working to improve it. Keep at it because the more distance you put between your spotty payment history and your current good payment record, the less damage you’ll do to your credit score.

Other web resources

How FICO scores are calculated (http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx)

Answers to frequently asked credit report questions (https://www.annualcreditreport.com/cra/helpfaq)

G.M. Filisko is an attorney and award-winning writer who keeps a close eye on her credit scores. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

NAR reports that the average credit score for mortgage originations has moved from 720 to 760.  So does this mean you cannot buy a home if your credit score is below 760?

The right answer is – “It depends”.

Lenders want to determine the level of risk they take when giving you money. It is always a good idea to work with a qualified and informed mortgage broker/banker who can help you understand all the available loan programs and the requirements for each one. A good mortgage broker/banker will help you with the process of improving your credit score if you are unable to make an immediate purchase. Interest rates will eventually rise and so will home prices. This will probably not occur overnight so you still have a great opportunity to purchase a home if you think it makes sense for you.

Please contact me immediately if you would like to contact a few experienced mortgage brokers/bankers and select the right partner to help you succeed.

Tel: (360) 562-7183, Email: awasu@prunw.com