January 1, 2010

It’s 2010 and I want to thank each and every ERA King Team Member for the hard work and dedication it took to have a successful 2009.  In a year that presented more than a few challenges, you not only persevered but excelled.  We are primed and ready for a great 2010.  Our “Win in 10” campaign is continuing on schedule and should show measurable results by the end of the 1^st quarter. 

The ERA International Business Conference will held March 14 – 17 in Nashville, Tennessee.  I can’t wait for you to see what new ideas and services ERA has planned to introduce there.  Charlie Young and his staff at ERA Franchise Systems have been working hard and making major changes to provide us with the best product and services in the industry.  More than a few of us are headed to Nashville and I promise it will be a good time.  There is still time to take advantage of this great opportunity!  If you are interested, please contact Ashley. Also, please don’t forget to send your buyers to ERAKing.com to see our tax credit ticker.

 Congratulations to Gerwin, Josh and all of you!  The final numbers are in and ERA King is the #1 company in America with ERA Mortgage. Great job! 

1. ERA King Real Estate         187 closed units

2. ERA Shields Real Estate     180 closed units

3. ERA Wilder Realty              145 closed units

Year end numbers for sales and dollar volume per the top 6 companies in our MLS are as follows:

                                                 Units Sold                     Dollar Volume Closed     

1. ERA King Real Estate           721                                    $105,463,604

2. Keller Williams Group            456.5                                     50,614,902

3. GMAC Billy Isom                   266.5                                     31,622,302

4. Susie Weems Real Estate         214                                       25,691,916

5. Bone Realty Company             170                                       26,257,080

6. Gold Star Realty                       155                                       20,295,650

The numbers continue to speak for themselves and the consumer is speaking through these numbers.  The consumer continues to be more concerned about their real estate issues instead of the agent’s issues. You have my continued commitment that ERA King will always be attentive to the consumer’s needs and wants.  Furthermore, you will be the first agents in the market to know what they want, how to deliver what they want and have the tools to do it.

Until next time, Peace and Love Team ERA.  Everett King

Friday, August 21st 2009

Most experts agree that the current housing downturn began in August of 2005.  That means we are entering the fourth year in some of the harder hit markets.  Thankfully East Central Alabama has not been in the downturn for that long.  Our markets started softening in late 2007 and then joined the nation in earnest in October of 2008.  In March of 2009 we began seeing a significant upturn in East Central Alabama and it has to date been able to sustain.  While we clearly have a ways to go before market conditions resume a more normal business model things are trending better.  We must eventually get to where most transactions are at arms length giving neither buyer or seller a distinct advantage. I have posted below information good and bad that indicates where we are as of August 2009. Housing also showed potentially encouraging signs. The latest reading of the S&P/Case-Shiller Home Price Index indicated home prices in May posted their first month-to-month gain since July 2006. On a year-over-year basis, prices are still lower, but the rate of decline is slowing. Additionally, new and existing home sales have improved. The preceding statement is an excerpt from the August BB&T Asset Management August assessment news letter. The above statement is regarding the national real estate market and not the local or regional markets.

Leading Indicators

*    The Conference Board's leading indicator index increased 0.6 percent in July to 101.6.

*     The increase follows an upwardly revised 0.8 percent increase in June.

*     The majority of the increase was attributable to interest rate spreads, jobless claims and the average workweek

*    Consumer expectations, real money supply and building permits contributed negatively to the index.

What does today's data mean for REALTORS and consumers?

*    The increase in jobless claims will continue to push the unemployment rate higher. Breaching the 10 percent unemployment rate is certain before any consistent job gains.  Higher unemployment stalls economic growth as consumers are apprehensive to make large purchases. For the economy to grow out of the recession, consumer spending needs to increase.

*    Historically employment is a lagging indicator, especially coming out of a recession.

*    Weak employment, however, helps out keep interest rates low.  

*    The Conference Board's leading indicator index is designed to forecast the economy six to nine months out.

*    Six of the ten indicators included in the Conference Board's leading indicator index improved in July. This is a sign that the worst of the recession may be over.

"Copyright National Association of REALTORS, Reprinted with permission." 

What is the Housing Affordability Index? 

The standard definition used by the Alabama Center for Real Estate in describing the statewide housing affordability index is as follows:

"The statewide housing affordability index is calculated as the ratio of the state's actual median family income to the income needed to purchase and finance the state’s median priced home. An index number of 100 means that a family earning the state's median income has just enough buying power to qualify for a loan on the state's median priced, single-family home, assuming standard underwriting criteria. The higher the index number is the more affordable the housing."

Taking the above definition into consideration here are the National and State Index numbers through the 2^nd quarter of 2009: 

Alabama Average Index  -  193.0

United States Average Index - 177.6

Information is taken from the Alabama Center for Real Estate web site. 

What do the Index numbers mean?  It means that housing is at its most affordable since the Housing Affordability Index has been being calculating.  The National Association of Realtors started the Index in 1970.  Bottom line is this is the very best time to buy a single family home since at least 1970. Now let's think about what that means.  Had you bought your current home in 1970 it would be worth many times more today than when purchased.  That is where we are today as it relates to value and affordability.  A home bought today has the best chance in decades to grow in value and ad equity.  Have you ever said I wish I had bought this or that back in the day.  The day is now.  We will be looking back in 10 years and saying "I wish I had bought that house we were looking at back in 2009.  What a deal that was and I missed it." 

The information in this Blog entry is meant to show where the market is and where it is heading.  So whether you are buying or selling you will have an informed opinion. 

As always if you have a question with or disagree with what is written feel free to email me at Everett@era-king.com. 

Respectfully Submitted,

Everett King

Wednesday, July 1st 2009

 REASONS NOT TO RENT 

Or better yet why is now the best time to buy, maybe ever?  The news media is more and more beginning to sound like the Children's Fairy Tale "Chicken Little".  But let me assure you the sky is not falling in fact things are positioning themselves to be a bright sun shinny day for homebuyers.  So if you have been waiting to purchase here are a few reasons that now is the perfect time to get of the fence and buy a home. 

• It is more affordable now.  According the National Association of Realtors, the housing affordability index, which measures home prices, mortgage interest rates and family income, is more favorable now than any other time since NAR started the index in 1970.
• You get a break on taxes.  As part of the American Recovery and Reinvestment Act, first-time homebuyer (anyone who has not bought or owned a home in the past three years) can take advantage of a tax credit up to $8,000.
• Mortgage rates are at or near all time lows.  FHA loans are plentiful and you can qualify with credit scores as low as 580. (restrictions apply so see a mortgage professional) 
• Sellers are more negotiable.  A seller that wants to sell will listen to any reasonably offer from a reputable and qualified buyer.  Many sellers are offering incentives such as closing cost or upgrades to the house.
• Pride of ownership.  Want to paint a bedroom the color of your favorite team?  Go ahead.  In your own home, you get to make the decorating decisions that reflect your personality, not your landlords. 

At the end of the day you want a place to raise your kids and call your own.  A place where you can relax and enjoy the fruits of your hard work. We all know that home ownership is the best investment the average American family will ever make and now is the best time to make your move. 

*Parts of the above article were taken from "The Sign Post" real estate newsletter.