Chicago Home Buzz Quarterly Reports

Just a quick note to remind you we are working on our 2nd Quarter Market Report which we mail out quarterly to anyone who would like a copy.

If you're interested in receiving this mailing which has news articles and market data for your zip code and neighborhood, please send us your mailing address (with your name or without if you'd like---we won't call you!) and we'll put you (and your neighborhood) on our list (and in our report). Here is a link to our Chicago Home BUZZ site which has a sample report you can see as well as many other downloadable forms and information.

Should be mailed out after the Fourth of July weekend.

May Up on New Homes

There will be lots of news coming out this week, but it looks like we're starting the week off on a positive note with home sales increasing in May. I believe we will see some negative news as the week progresses, however, including the expected rate increase from the Fed which will push short term interest rates a bit higher.

Remember, the Feds rate increase does not directly affect mortgage rates, but rather short term rates like car loans, home equity lines, etc. The mortgage rates are more closely tied with the Bond market.

Bad bond news is good mortgage rate news (and visa versa). Here's a short article from CNN on the May housing news:

Latest reading shows pickup in new home sales, despite rising mortgage
rates and other signs of a cooling real estate market.

June 26 2006: 10:11 AM EDT
NEW YORK (CNNMoney.com) -- The pace of new home sales showed an unexpected increase in May, as the latest reading of real estate market strength bucked rising mortgage rates and other signs of a cooling housing market New homes sold at an annual pace of 1.23 million homes in the month, up 4.6 percent from the revised 1.18 million annual sales pace in April. Economists surveyed by Briefing.com had forecast that sales would slow to a 1.15 million rate in May. The report showed a decline in new home prices in May when compared to April, though price measures were still above year-earlier price levels.

Starts Up, Permits Down

Stocks smile on mixed housing news

Starts rise, but building permits fall more than expected; futures move higher as news offers no major shock to inflation-weary markets.

NEW YORK (CNNMoney.com) - Stocks looked set for a slightly higher open Tuesday after the latest housing numbers came in mixed and failed to scare a market already rattled with the inflation jitters.

Stock futures are higher, indicating a higher opening for stocks.

The latest read on the housing market showed housing starts coming in stronger than expected, but a building permits number slightly below estimates.
The Commerce Department said May housing starts registered 1.96 million units at an annualized pace. That's a 5 percent increase from the revised 1.86 million annual rate for April and higher than the 1.87 million rate predicted by economists, according to Briefing.com.
But building permits fell 2 percent to an annualized 1.93 million unit pace, a bigger drop than expected. Economists were looking for a fall to 1.95 million units from April's revised 1.97 million figure.

A number far above estimates could have stoked inflation fears, which have been weighing on stocks since mid May.

"It doesn't have to be below, but it can't be significantly above," said Art Hogan, chief market analyst at Jefferies & Co, prior to the report's release. "It's not at the forefront of the Fed's radar screen, but it's certainly something we'll be watching."