My Blog

Tapering Begins!

December 23, 2013 10:42 am

The Fed today announced they would be pulling back some of their stimulus package which has helped the housing market by keeping long term mortgage rates at historic lows for the last few years. This should come as no surprise as the KCM Blog has been warning of this likelihood over the last several months. We even went against the belief of the vast majority of economists who thought the Fed would wait until next year. In this month’s edition of KCM, we quoted Bill McBride of Calculated Risk: “Although the consensus is the Fed will wait until 2014 to start to taper asset purchases, December is still possible.” We also gave our members the following grouping of slides to help them explain the ramifications of the Fed’s decision during meetings with buyers and sellers. 12-23 Taper Visual

What it Means to the Consumer


Household Formations Projected to Surge! [INFOGRAPHIC]

December 20, 2013 10:36 am

Households Infographic


What it takes to Build a Great Listing Inventory

December 19, 2013 10:36 am

Experts across the country are projecting that buyer demand will remain strong for the foreseeable future. Frank E. Nothaft, Chief Economist at Freddie Mac recently proclaimed: “We expect single-family home sales and housing starts to be at the highest level since 2007.” Due to this demand, taking quality listings will continue to be extremely important to your success throughout 2014. This will create a tremendous opportunity for those agents who can dominate the listing side of the business. But what will it take to achieve maximum success? Here are 5 things that you'll need to do:

Immigration Reform's Impact on Housing

December 18, 2013 10:36 am

Immigration reform is a political hot potato to many. We do not want to take a political stance on the issue. We will leave that to others. However, we do want to report on a recent study released by the Immigration Task Force of the Bipartisan Policy Center (BPC) that spoke to the impact reform would have on the housing market. The BPC did not claim their study was all encompassing and included the following caveat: “It is important to note that this analysis is not an endorsement of the Senate bill or any other policy proposal. The study does not examine other aspects of immigration reform including demographic or national security concerns, nor does it look at the cultural benefits that immigrants bring to our communities. Clearly, these issues are important considerations for immigration reform proposals.” That being said, let’s look at what the study did reveal:

 Jump-start the Housing Recovery


Why is NOW the Time to Build Listing Inventory?

December 17, 2013 10:36 am

12.17 Blog ImageThough the housing market is in the middle of a strong recovery, the one issue that still remains a challenge is inventory. Demand is currently strong and Frank E. Nothaft, Chief Economist at Freddie Mac, projects that 2014 will be the best year for home sales since 2007. We must make sure that the supply of homes matches this demand. The Federal Reserve Bank of San Francisco (FRBSF) recently published an Economic Letter with their thoughts on housing inventory and where it may be heading. Housing Inventory and Rising Prices The good news is the FRBSF research reveals inventory will increase as prices rise: “Formal statistical tests indicate that changes in house prices have a causal effect on inventories and the two series are tied together in a long-run relationship. This makes sense. All else equal, rising house prices should make homeowners more willing to sell and inventories should rise.”