Housing and the January Jobs report: instant reaction

This is straight from the National Association of Realtors website.  Please read until the end.

The following is NAR Chief Economist Lawrence Yun’s reaction to this morning’s U.S. Bureau of Labor Statistics report on January employment conditions:

“The best news from the January jobs report is accelerating wages, which rose 2.9% from a year ago. The continuing job growth of 200,000 in January, and 2.1 million over the past 12 months, have kept the economy at essentially full employment. It is now to the point where employers have to offer higher wages to attract new employees.

Not all is fine, however. The labor force participation rate is still stuck at 62%, compared to 67% a decade ago, prior to the big recession. Also, the tightening labor market along with faster wage gains means that the Federal Reserve is inclined to raise interest rates more frequently.

Ultimately, the desire to buy a home will rise because of this strong job growth with higher pay, but the financial capacity to buy will be cut because of rising interest rates.”

What a Realtor conference is like and predictions for 2017

I just came back from the National Association of Realtors Broker Summit in San Diego.  Everybody has been to at least one convention in their lives, right? If not, and in case you are wondering what these are like, here's the skinny.

It was held at the Grand Del Mar Fairmont in northern San Diego.  This is a triple luxury hotel that looks like an Italian palace.  Miles from anything and super-expensive, so I didn't stay there.  Nice cocktail parties, though.  The pic above is the lobby centerpiece.

As with all conventions, there is music over the public address system between speakers.  I always expect hits of the '80s but this time it was hits of the late '60s and early '70s -- Doors, Hendrix, Jefferson Airplane, Creedence...seemed a little weird to me, to be honest.  But then the average age of  the Realtors there was about 55. Perhaps the convention organizers thought it was age-appropriate, but there is something incongruous about hearing "Bad Moon Rising" just before an economist takes the stage.

The speakers were excellent and I learned a a lot.  Here are my take-aways for you.

- 2017 is going to be about the same as 2016 for real estate.

- However, prices will show a slight rise.  So will interest rates, but we knew that.

- Shortness of inventory is a major problem all over the country. (You knew that.)

- Affordability is a major issue, too. (You knew that too.)

- Student debt is stopping many millenials from buying homes.

- Home ownership is down across the country, and expected to go lower.  We may soon become a nation of renters.

- Our recent election and its aftermath has caused uncertainty in all sectors, but not enough to hurt the economy in the long run.

Here's the deal on crystal ball predictions -- they are just predictions.  We won't know what's really happening until it happens. In the meantime, I will continue to give my own predictions and also real stats to keep you engaged and aware.

LA Times Article: Many buyers find the home loan process unpleasant. You don't say!

Yesterday's L.A. Times featured an article about the unpleasantness of applying for a mortgage loan.  Click the link here to read.  Among those surveyed by the National Association of Realtors, 1 in 4 said they'd rather gain 10 pounds than go through the process again. Seven percent would prefer having a root canal or spending a night in prison.  And many were more comfortable being around snakes than applying for a loan again.

Most of the distress came from first-time buyers, of course. Craig Martin, director of the financial services practice at J.D. Power says: "First-time buyers often have questions and should not be afraid to ask prospective lenders about the specifics of the mortgage process and how they will be kept informed. Much of the stress with borrowing comes from a lack of information and knowledge during the process. Asking when you will be updated and how that information will be provided are two key questions that may help improve the borrowing experience."

Of course, if you're applying for a loan (or refinancing) and would like to work with a great lender than I've personally vetted for customer service, please check my website at www.JudyGraff.com and click on the "Resources" tab.  Then please click on "Local Partners." You'll find several lenders who are always available, have great rates, and explain the process thoroughly.

Photo courtesy of Chuck Burton/AP via Los Angeles Times.

Oops! Realtor board needs to review its website version of the Code of Ethics

One of a Realtor association's many tasks is to make sure its members are aware of, and will uphold, the National Association of Realtors' Code of Ethics.  Where can a Realtor find the Code? On the local associations' sites, of course. 

But oops! It was discovered today that one of the local association's websites is missing many pages of the Code.  Nobody had noticed.  For years.  Not to worry, though, the local board in question is remedying it and will now have the whole COE up. Then every Realtor will be able to read it and follow it.  Yeah, right.