October 15, 2009
June 2009 Summit County Real Estate.Net Notices
There have been a number of calls to the board office regarding the clarification we have made to our rules, specifically 1.5 in our rules and regulation:
1.5 Withdrawal of Listing Prior to Expiration. Listings of property may be withdrawn from the multiple listing service by the listing broker before the expiration date of the listing agreement, provided notice is filed with the service, including a copy of the agreement between the seller and the listing broker which authorizes the withdrawal. Sellers do not have the unilateral right to require an MLS to withdraw a listing without the listing brokers concurrence. However, when a seller(s) can document that his or her exclusive relationship with the listing broker has been terminated, the multiple listing service may remove the listing at the request of the seller
We have numerous calls to the members of the MLS board and SAR staff regarding listings being withdrawn from the mls and then relisted with a new mls number to get around ADOM or active days on market. Many of the members are concerned we are not following our own rules regarding the withdraw of listings. Below is the explanation of ADOM and CDOM.
Cumulative Days on Market
All listings entered into the Multiple List Service begin accruing Days on Market (CDOM) the moment the listing is assigned an MLS number. The CDOM will continue to accrue until such time when it is sold, withdrawn or expires regardless if the listing changes brokers, firms, etc. If, however, the listing remains out of the MLS for 30 days or more, the CDOM will re-start at zero.
Active Days on Market
All listings entered into the Multiple List Service begin accruing Cumulative Days on Market (CDOM) the moment that the listing is assigned an MLS number. When a listing goes UNDER CONTRACT, ADOM ceases to accrue days on market, unless the property returns to market because of a contract failure. At the time of sale, ADOM will have totaled only the time that the property was actively on the market, regardless of the time it took to close the transaction. If a property expires or is withdrawn prior to sale, ADOM stops accruing days on market. If the property is re-listed with a new broker, ADOM will begin accruing days on market starting at 0 again. It is quite possible for a previously listed property to show different values for CDOM and ADOM on day one of a new listing due to the cumulative action of the CDOM calculation.
The Vote that was taken by the mls reads as this: to make it a finable offense for an agent to withdraw and reinstate under a new mls number, unless the property has been off the market for 30 days or more. The fines would be under our standard fine schedule.
Several questions have come regarding; what if I put the listing under townhomes and it really is a condo or I put the wrong price in and hit ok and didnt catch In that instance you can call the SAR board office and ask the staff to delete the property and you can enter it correctly. If you just withdraw the listing from one area to another it will mess up our stats. So in any of this type of an instance, you need to ask the staff to delete the record.
The second question that came was what if the seller needs to withdraw a property for a repair and then wants to get it back on the market when the work is done in less than the 30 day period You can take a listing from withdraw, back to active with the same MLS number, ADOM will remain the same. NO FINE in this instance.
The ability to withdraw a listing was never intended to circumvent the days on market or change the time a property is actually on the market. The buyer asks for this information all the time and we need to reflect the market however it is. Because we were seeing abuse of this daily we needed to take a stronger action than just saying you cant do, it is not allowed in our rules. Because once the listing is taken off and put back under a new mls, the offense has already happened.
Please understand that the staffs job is follow the rules, that the Summit MLS Board is in the position to uphold these rules for every member. If you have any additional questions regarding our clarification of the enforcement of our rules, which have been in place for years. Please let us know . You can attend our next meeting and voice your concerns, as those meetings are always open to members and the occur the first Thursday of the month at 9 am.
I hope this clarifies how the above situations should handled, what ADOM and CDOM does and that it is our responsibility to uphold our mls rules. Thank you for your time in reading this.
Open House Signs Approved In Breck!
Last night, the Breckenridge Town Council unanimously gave final approval for an ordinance that would allow open house signs in Breckenridge. The new ordinance comes into effect after months of work by the Summit Association of REALTORS and the Town of Breckenridge. The Breckenridge Town Code is now amended under Section 8-2-6(I) to allow open house signs. The code provides that:
Within the Historic District, one "For Sale" sign and one "Open House" sign are allowed on each lot. Outside of the Historic District, one "For Sale" sign may be displayed on each lot.
LOCATION OF OPEN HOUSE SIGNS:
No off-site directional open house sign is allowed anywhere within the Conservation and Historic Districts. No open house sign is allowed within the rights of way of Park Avenue and Main Street. No signs on sidewalks or paved driving surfaces. No open house signs may be located at off-site real estate offices and off-site sales centers.
NUMBER OF SIGNS:
Not more than 3 open house directional signs per property may be placed.
Not more than 1 directional open house sign may be placed pointing in each direction at each intersection of Town streets.
An open house sign may only be displayed up to 1 hour prior to the start of the open house and must be removed no later than 1 hour after the conclusion of the open house.
Signs may only be displayed between 8:00 AM and 8:00 PM each day.
Signs may not be displayed for more than 3 consecutive days.
UNIFORM SIGN DESIGN:
Area: May not exceed 4 square feet.
Height: Should not exceed 5 feet as measured from the top of the sign to the grade at the base of the sign.
Lettering: White. Signs must include a logo or name of real estate company or agent, and should not be larger than 9" by 6".
ATTENTION-GETTING DEVICES: No flags, pennants, bunting, banners, balloons or any other similar items may be attached to an open house sign.
LAW ENFORCEMENT: The Police Chief may remove and destroy any sign that is illegally placed within a Town right of way.
OPEN HOUSE SIGN POLICY SUNSETS: Effective April 1st, 2010, the open house sign ordinance will be repealed. The Summit Association of REALTORS is very pleased the ordinance was approved so that REALTORS may use open house signs in Breckenridge to better market listings for buyers, and to help buyers find their next home. However, the ordinance is only in effect for 1 year on a trial basis.
It is important for every REALTOR to strictly comply with the new open house sign policy. As a condition of approval, SAR pledged to the town of Breckenridge that REALTORS would self-police open house signs. If you see open house sign violations, pleae notify the violating real estate office, or the Summit Association of REALTORS. We do not recommend you call the town code enforcement officer.
The Mortgage Market View... Homeowner's Insurance: How to Get the Most for Your Money The hurricanes and tornados we have seen over recent years have had an impact on homeowner's insurance rates, but there are several things you can do to make sure you get the most for your money. Check out this week's special video View for some great cost-saving tips.
Last Week in Review "REALITY IS THE LEADING CAUSE OF STRESS AMONGST THOSE IN TOUCH WITH IT."
Lily Tomlin. The reality of the recession has been stressful for many of us, but various pieces of news this week show things may be starting to turn around. Friday's important Jobs Report showed there were 539,000 jobs lost in April versus expectations of a 610,000 loss, representing the smallest job loss since October.
Even though the Unemployment Rate moved higher and hit a 26-year high of 8.9%, this is a lagging indicator, and many other data points hint that the worst could be over for the job market, and could lead to lessening stress in this area during the months ahead. Speaking of stress, last week's "stress test" results showed the banking system is on the mend, and in better shape than it was a few months back. 10 of the 19 largest banks will need additional capital to cope with potential future challenges, but as a whole the banking system is solvent and regaining health. A crucial point to remember is that almost all of the institutions under scrutiny elected to choose the cash flow method of asset valuation, as opposed to the mark-to-market method. This would not have been possible without the Financial Accounting Standards Board (FASB) allowing for this change last month. Positive news came from Wal-Mart, saying that their sales for April were better than forecast.
And they say, "As goes Wal-Mart, so goes the entire retail sector", so this may mean health is also coming back to retailers at large. Bonds attempted to regain some ground in the early part of the week, but the good news from Thursday's bank stress test, the better than expected Jobs Report on Friday, and the rally in Stocks caused Bonds to fall below key support levels. As a result, Bonds and home loan rates ended the week slightly worse than where they began. NO NEED TO STRESS OVER THE LATEST POSTAGE RATE INCREASE. CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR ALL THE CHANGES YOU NEED TO KNOW ABOUT.
Forecast for the Week More news will be coming on the health of the retail sector on Wednesday, via the Retail Sales Report for April. March's Retail Sales Report showed that consumers were still closely watching their spending, so it will be interesting to see which way sales for April have moved, especially given the good report from Wal-Mart. We will also learn this week if inflation is something we need to start stressing about. Thursday brings the wholesale price inflation measuring Producer Price Index (PPI) Report, while Friday delivers the inflation news on the retail level, via the Consumer Price Index (CPI) Report. Given the large amounts of stimulus being poured into the economy, inflation is sure to be a factor down the road. And since inflation is the arch enemy of home loan rates, it will be important to see what these reports reveal.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bond prices and home loan rates improve, while strong economic news normally has the opposite result, causing Bond prices to move lower and home loan rates to worsen.
As you can see in the chart below, Bonds were unable to remain above a key support level after breaking below it last week. I will be watching closely to see if Bonds can boldly break through this resistance and go where they have been before.
Last Week in Review
YOU'RE MOTORING.WHAT'S YOUR PRICE FOR FLIGHT?
0's band Night Ranger's ballad "Sister Christian" perhaps describes the question some spring break travelers are asking travel agents as they reschedule plans to visit Mexico, in light of last week's sudden swine flu outbreak. And while the quickly spreading illness has made this Spring's travel season especially challenging, there are some bright spots on the horizon for the economy.
Last week, the Fed signaled that the recession may be easing, and this news was echoed by the Economic Cycle Research Institute (ECRI), who also said that the recession would probably end by the time Summer is over. The ECRI, whose leading indicators have a solid track record of predicting turns in the business cycle, said that enough of its key gauges have turned upward to indicate with certainty that a recovery is coming.
The beleaguered auto industry has been big news of late, and while Chrysler struggled to find "Mr. Right" in Fiat, the price for their flight ended up to be bankruptcy.while on the other hand, it looks like Ford will be all right tonight, as their Stock is up big from just one week ago. What's more, as you can see in the chart below, Stocks in general had a great April. In fact, the S&P 500 had its best month in nine years, gaining 9.4%, led by the financial sector. This is further evidence that the changes in mark-to-market accounting were a great decision.
In addition, there were several good economic reports to note as Consumer Confidence for April came in at its fourth largest gain in the history of the survey, while Consumer Sentiment also came in better than expected. The improvement in the way consumers are feeling is likely influenced by the improvement in Stock prices.
But Stocks are near an important ceiling of resistance that has been difficult to break. Just like Bonds, Stocks respond to floors of support and ceilings of resistance - and a look at the above chart shows how the level of the S&P 500 between 875 and 880 has put a lid on Stock price advances eight times during the past few months. Interestingly enough, Friday's close was right at the ceiling, at 877.52.
Should prices break higher next week, it could lead to another 8% rise in the overall Stock market before the next ceiling is hit. However, should the S&P 500 Index fail to advance further, prices will likely drift down to the nearest floor, about 5% below current levels. That's what makes this pivotal point so important, and worth keeping an eye on in the coming week.
Yet our economy isn't in full bloom just yet. The Advance Gross Domestic Product (GDP) Report showed that the US economy contracted more than expected in the first quarter. The combined contraction of the last two quarters is the worst in more than 60 years. Continuing unemployment claims are still a problem, coming in at a record 6.27M, while the Personal Income and Spending Report showed that consumers are still watching their wallets very carefully.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates to improve, while strong economic news normally has the opposite result. Bonds were buoyed in the beginning of last week due to Stocks losing ground on the swine flu news, but the variety of good economic news gave Stocks a boost later in the week at the expense of Bonds and home loan rates. As a result, Bonds and home loan rates ended the week slightly worse from where they began.
THE GOVERNMENT IS BACK IN ACTION, ATTEMPTING TO MAKE THIS SPRING A BETTER ONE FOR DISTRESSED HOMEOWNERS! CHECK OUT THIS WEEK'S MORTGAGE MARKET VIEW FOR DETAILS ON AN UPDATE TO THE MAKING HOME AFFORDABLE PROGRAM.
Forecast for the Week
The big news to look for this week will be April's Jobs Report, coming out on Friday at 8:30am ET. The anticipation prior to and results of this report will have Stocks teetering along the aforementioned pivotal level of resistance. The direction of Stocks will no doubt influence Bond prices in the opposite direction.
March's Jobs Report had a mix of good and bad news, as the economy lost 663,000 jobs, meaning 5.1 Million jobs have been lost since the recession began in December of 2007. However, for the first time in a very long while, there were no downward revisions to a prior month's reading, as February's number came back with no change. It will be important to see if April's numbers or any revisions to March show if there is indeed some level of stabilization at hand for the labor market.
Remember that the Unemployment Rate tends to be a lagging indicator, but the number of jobs created gives us a current view of the markets. Still on the jobs theme, Thursday's Initial Jobless Claims number - although volatile - gives us a glimpse of what we can anticipate.
As you can see in the chart below, Bond prices and home loan rates worsened this week - but home loan rates are still near historic lows. If we have not talked recently about your home loan situation or future plans, please give me a call or send me an email - let's talk.
The Mortgage Market View...
Making Home Affordable.
The Saga Continues!
In an effort to fill in some of the gaps exposed in the initial Making Home Affordable (MHA) program, Washington has stepped up its efforts to assist more distressed homeowners. In a press release on April 28th, the U.S. Treasury announced an update to the program designed to assist nearly 50% of those homeowners seeking relief from the MHA program.
By some estimates, nearly 50% of all struggling homeowners actually have two mortgages. This is because many borrowers chose to split their mortgage in two to avoid an additional Private Mortgage Insurance monthly payment. The problem is, having two mortgages complicates attempts to refinance or modify home loans.
To minimize these complications, the new legislation is intended to assist mortgage servicers with new guidelines that give incentives for participation and help decrease payments for homeowners. These incentives have also been extended to homeowners enrolled in the program to assist them in making their future payments on time.
The news announcement also addressed the Hope for Homeowners (H4H) program created last year. The biggest news relating to H4H is that participating servicers will be required to look at H4H in tandem while considering a loan modification. In order to support more investor participation, incentives will be extended to the servicer and the Treasury will continue their buying program to help rates stay attractive as well.
What Does This Mean for You?
Despite these additional guidelines, the Making Home Affordable program is still best suited for helping a specific group of struggling homeowners.