For the week of January 3, 2011

For the week of January 3, 2011

INFO THAT HITS US WHERE WE LIVE

Market Update

Last week saw the year finish on a high note for the housing market with Pending Home Sales for November coming in UP 3.5%, after this figure was expected to be down slightly for the month. This reading measures homes under contract, and therefore should point to an increase in closings in the January-February time frame.

The positive Pending Home Sales report was particularly welcome after Tuesday's Standard & Poor's/Case-Shiller Home Price Index for October. Their 20-City Composite Index registered a 0.8% price decline year-over-year. Some say this threatens a "double dip" in housing prices, an interesting observation now that the "double dip" recession threat has all but evaporated.

The negative talk ignored the facts that 4 of the 20 cities showed annual price GAINS and the index is still above its spring 2009 low. In addition, the Case-Shiller 10-City Index showed a year-over-year price gain. It's important to remember that real estate is local and these indexes average only 10 or 20 metro areas. Some analysts feel home prices have bottomed in most markets and a few intrepid observers are even predicting a strong comeback for housing in 2011!

Review of Last Week

UP TWO YEARS IN A ROW... Investors have been encouraged by recent signs of improvement in the economic situation. Not surprisingly, the stock markets closed out the year UP for the second year in a row. For 2010, the Dow Jones Industrial Average posted an 11% gain. The broader-based S&P 500 index ended UP 12.8%, and the Nasdaq Composite moved UP a hefty 16.9% from where it was 12 months ago. For the week, all three indexes were basically flat with light trading volumes.

Not all the economic signs were rosy, however, as Consumer Confidence for December dropped to 52.5 from its 54.1 level in November. This was also well below the consensus estimate. As covered above, the October Case-Shiller home price index had its disappointments as well, although November Pending Homes Sales numbers gave us hope about a boost in closings in the next month or two.

Other good news included the Chicago PMI index for December, unexpectedly UP well above estimates, reaching 68.6 versus November's 62.5. This indicates continued strong growth in manufacturing in that part of the country. Initial weekly jobless claims dropped below the 400,000 level, coming in way better than consensus forecasts, at 388,000. This was well under the prior week's 420,000 initial claims and continues the downward trend of the last few weeks. We're of course still not where we should be with jobs, although finally moving in the right direction.

For the week, the Dow ended up 5 points, at 11,578; the S&P 500 edged up a point, to 1,258; and the Nasdaq was off 0.5%, ending at 2,653. (Note: we've dropped the decimals and rounded the indexes to their nearest whole numbers.)

The bond market swung up and down like a yo-yo all week. But the FNMA 30-year 4.0% bond we watch ultimately finished UP 101 basis points, closing at $99.18. Average fixed-rate mortgage rates also ticked up, but stayed "incredibly low," according to Freddie Mac's weekly survey of conforming mortgages. Their chief economist observed that for the year, 30-year fixed mortgage rates reported "...the lowest annual average since 1955, when the average price of a home was $22,000." But with possible rate increases, people who want to buy or refinance should not waste time.

This Week’s Forecast

WHAT THE FED SAID AND EMPLOYERS DID... We start the new year by finding out Tuesday what the Fed said about the economic situation as recorded in the Minutes of their December 14 FOMC meeting. Subsequently, we'll find out what employers did about creating new jobs in Friday's December Employment Report. An increase of 132,000 jobs is expected, although that won't be enough to lower the unemployment rate, with new people coming into the labor force.

We'll also have a look at the health of US manufacturing in Monday's ISM Index and the non-manufacturing sector in Wednesday's ISM Services Index. Both should remain comfortably above 50, indicating continued business expansion. Hopefully, a happy new year begins.

The Week’s Economic Indicator Calendar

Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.

Federal Reserve Watch

Forecasting Federal Reserve policy changes in coming months Economists still expect the Fed to keep the Funds Rate at its super low level for the first few months of the new year. Things could change in the second half, with a strengthening economy or the threat of inflation. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.

All "Betts" on Brian! The Only Realtor you Want!

Daily Quotes!

Daily Quotes for Oct. 15 2010!

"I would never have amounted to anything were it not for adversity. I
was forced to come up the hard way."
-- J.C. Penney, Businessman and Mason

"All serious daring starts from within."
-- Eudora Welty, writer

"Knowing thyself is the height of wisdom."
-- Socrates

"Never let life's hardships disturb you; no one can avoid problems, not
even saints or sages."
-- Nichiren Daishonen

"I believe in me more than anything in this world."
-- Wilma Rudolph, Olympic runner

All "Betts" on Brian! The Only Realtor you want!

JD Power has Ranked Keller Williams #1 in Client Satisfaction two years in a row!

News Release
FOR IMMEDIATE RELEASE
CONTACT: Brian E. Betts
801/858-3080
betts@kw.com


Keller Williams Realty Receives Nod as the
Highest Ranked in Customer Satisfaction
J.D. Power and Associates names company highest in customer satisfaction
for second year in a row
AUSTIN, TEXAS (September 2, 2009) —According to the J.D. Power and Associates 2009 Home Buyer/Seller StudySM, Keller Williams Realty, Inc., the third largest real estate company in North America, received the highest overall satisfaction ratings from home buyers among the largest full-service real estate firms for the second year in a row. The company also ranked second-highest among home sellers in the study.

“We couldn’t be prouder. This is an achievement our associates have truly earned. It is the face-to-face interaction and the relationships they build daily that has impacted this study and elevated Keller Williams Realty to another level in customer service,” said Mark Willis, CEO of Keller Williams Realty. “Knowing that this study was conducted during the toughest times the market has seen shows that spirit and dedication can make an impact.”
The study was produced by J.D. Power and Associates to measure home buyers’ and sellers’ customer satisfaction. The results of the home-buying experience were determined by three factors including the agent, office and the package of additional services.
“I am absolutely beaming with pride that our agents have been honored in such a fantastic way,” said Mary Tennant, president and COO of Keller Williams Realty. “We are lucky to be in business with such incredible business people, who have shown incredible resolve over the past two years. If there was a time to build their business, it is now.”


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About Keller Williams Realty Inc.:
Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 679 offices and 73,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty online at (www.kw.com).