Kerry's Blog

Little Rock Real Estate Market Report;Little Rock Homes

Kerry Ellison (Keller Williams) — Wed, 11 Feb 2009 18:08:25 -0800

In todays negative economic environment it is hard to find some positive news. I thought I would share some surprising news with you!!!

I was reading a Forbes blog dated 1/7/09 and it featured Little Rock as one of America's 25 top housing market. Little Rock's housing market is predicted to only drop 1%. In Pulaski County average sales price dropped 2.2 % from 2007. The higher priced areas of Pulaski County dropped 2.3 %. However, the most impressive figure is our listing inventory is down 15.5 % which means we are selling the backlog of homes. Little Rock's foreclosure rate is 1 out of 200 where the nation's rate is 1 out of 54. Click on the link to read the full article.....

In Depth: America's 25 Strongest Housing Markets

This article is published by the National Association of Realtors..

Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West. Existing-home sales - including single-family, townhomes, condominiums and co-ops - jumped 6.5 percent to a seasonally adjusted annual rate¹ of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5 percent below the 4.91 million-unit pace in December 2007.For all of 2008 there were 4,912,000 existing-home sales, which was 13.1 percent below the 5,652,000 transactions recorded in 2007.

What does this mean to our local market? Are attitudes changing? Is it a good time to buy? The answer is yes! That is why it is called a buyer's market.

If the stimulus package is passed with a $15,000 tax credit the market will go crazy. There was a decline in listings by 1600 (15.7%) homes in Pulaski County and in our higher dollar areas were down by 561 (12.1%) homes. We are still experiencing a decrease in units sold, but we are not continually adding inventory. If you have had your home on the market or have been considering selling, feel free to contact me for an up-to-date value of your home KerryEllison@kw.com.

I will be updating my blog with the 5 year trends in listings and units sold, please log onto my website Your Market Expert.

Central Arkansas Housing Market

Kerry Ellison (Keller Williams) — Fri, 07 Nov 2008 13:48:34 -0800

First Time home buyer Tax Credit, What are the values of properties in Little Rock

Kerry Ellison (Keller Williams) — Fri, 22 Aug 2008 14:26:16 -0700

The Housing Market should see some positive results from the signing of the Housing and Economic Recovery Act of 2008 by President Bush. The benefits are for first time home buyers in the form of a home-buyer tax credit. First-time buyers are vital to the housing market because they start the domino effect. They also keep the market stable because of the demand vs. supply.

Buyers who haven't owned a property in the last three years can qualify for a tax credit up to $7,500 or 10 % of there home purchase price. To qualify homes can be purchased from April 9, 2008 till July 1, 2009. There are income limits and recapture taxes, so please check with your financial advisor.

The housing bill includes higher loan limits allowing Fannie Mae and Freddie Mac to increase loan limits based around median pricing, which means we will see the jumbo loan limits raised. The effect on the local market will be lower interest rates on loans higher than $417,000. WE should see some positive results in the higher end areas of Central Arkansas.

Using history as a guide, Lawrence Yun, chief economist of the National Association of Realtors believes the Housing Act could represent a boost of 10% in the number of homes sold.

In Central Arkansas we have seen a slight slow down in homes sold. With the new incentives for first time home buyers we expect to see increase sales.

See below for the trends in Pulaski County:(the numbers below are from CARMLS and are based on Jan. through July 31 numbers)

Year: TTL Listed # sold Avg. List $sold Avg DOM % Expired

2006 5403 3494 $171,558 58 .02%

2007 6385 3461 $177,974 76 15.72%

2008 5541 2798 $176,168 79 22.83%

Our local market is only slightly down from 06 and 07 numbers, but the inventory is adjusting and surprisingly prices have only seen a 1.1 % decrease. We still have approximately a 13 month supply of homes, however we are seeing much stronger markets in specific neighborhoods with only 5 months of supply.

How to Price your home in today's Market

Kerry Ellison (Keller Williams) — Mon, 14 Apr 2008 18:04:31 -0700

How to price to sell and still make a profit

The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. Your real estate agent's knowledge of the overall market and what's selling - or not selling - will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won't leave money on the table.

Here are some points to consider: Time. Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a price that will encourage buyer activity (read: fair market value).

Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. It's important that you not confuse value with cost - in other words, how much you value your home versus what buyers are willing to pay for it. Don't place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.

Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Also, avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.

10 Questions to Ask your Realtor about selling a House

Kerry Ellison (Keller Williams) — Mon, 14 Apr 2008 18:00:21 -0700

10 Questions to Ask Your Realtor about Selling a House

Are you a full-time professional real estate agent? How long have you worked full time in real estate? How long have you been representing buyers? What professional designations do you have?
Knowing whether or not your agent practices full time can help you determine potential scheduling conflicts and his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations.
Do you have a personal assistant, team or staff to handle different parts of the purchase? What are their names and how will each of them help me in my transaction? How do I communicate with them?
It is not uncommon for agents who sell a lot of houses to hire people to work with them. As their businesses grow, they must be able to deliver the same or higher quality service to more people.
You may want to know who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team. If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing?
Do you have a Website that will list my home? Can I have your URL address? Who responds to emails and how quickly? What's your email address?
Many buyers prefer to search online for homes because it's available 24 hours a day and can be done at home. So you want to make sure your home is listed online, either on the agent's Website or on their company's site. By searching your agent's Website you will get a clear picture of how much information is available online.
How will you keep in contact with me during the selling process, and how often?
Some agents may email, fax or call you daily to tell you that visitors have toured your home, while others will keep in touch weekly. Asking this question can help you to reconcile your needs with your agent's systems.
What do you do that other agents don't that ensures I'm getting top dollar for my home? What is your average market time versus other agents' average market time?
Marketing skills are learned, and sometimes a real estate professional's unique method of research and delivery make the difference between whether or not a home sells quickly. For example, an agent might research the demographics of your neighborhood and present you a target market list for direct marketing purposes.
Will you give me names of past clients?
Interviewing an agent can be similar to interviewing someone to work in your office. Contacting references can be a reliable way for you to understand how he or she works, and whether or not this style is compatible with your own.
Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our listing agreement?
In the heavily regulated world of real estate, it can be difficult for an agent to offer a performance guarantee. If your agent does not have a guarantee, it does not mean they are not committed to high standards. Typically, he or she will verbally outline what you can expect from their performance. Keller Williams® Realty understands the importance of win-win business relationships: the agent does not benefit if the client does not also benefit.
How will you get paid? How are your fees structured? May I have that in writing?
In many areas, the seller pays all agent commissions. Sometimes, agents will have other small fees, such as administrative or special service fees, that are charged to clients, regardless of whether they are buying or selling. Be aware of the big picture before you sign any agreements. Ask for an estimate of costs from any agent you contemplate employing.
How would you develop pricing strategies for our home?
Although location and condition affect the selling process, price is the primary factor in determining if a home sells quickly, or at all. Access to current property information is essential, and sometimes a pre-appraisal will help. Ask your agent how they created the market analysis, and whether your agent included For Sale by Owner homes, foreclosed homes and bank-owned sales in that list.
What will you do to sell my home? Who determines where and when my home is marketed/ promoted? Who pays for your advertising?
Ask your real estate agent to present to you a clear plan of how marketing and advertising dollars will be spent. If there are other forms of marketing available but not specified in the plan ask who pays for those. Request samples or case studies of the types of marketing strategies that your agent proposes (such as Internet Websites, print magazines, open houses, and local publications).

8 Steps to selling your home...

Kerry Ellison (Keller Williams) — Mon, 14 Apr 2008 17:56:44 -0700

Eight steps to selling your home

Define your needs. Write down all the reasons for selling your home. Ask yourself, "Why do I want to sell and what do I expect to accomplish with the sale?" For example, a growing family may prompt your need for a larger home, or a job opportunity in another city may necessitate a move. For your goals, write down if you'd like to sell your house within a certain time frame or make a particular profit margin. Work with your real estate agent to map out the best path to achieve your objectives and set a realistic time frame for the sale.
Name your price. Your next objective should be to determine the best possible selling price for your house. Setting a fair asking price from the outset will generate the most activity from other real estate agents and buyers. You will need to take into account the condition of your home, what comparable homes in your neighborhood are selling for, and state of the overall market in your area. It's often difficult to remain unbiased when putting a price on your home, so your real estate agent's expertise is invaluable at this step. Your agent will know what comparable homes are selling for in your neighborhood and the average time those homes are sitting on the market. If you want a truly objective opinion about the price of your home, you could have an appraisal done. This typically costs a few hundred dollars. Remember: You're always better off setting a fair market value price than setting your price too high. Studies show that homes priced higher than 3 percent of their market value take longer to sell. If your home sits on the market for too long, potential buyers may think there is something wrong with the property. Often, when this happens, the seller has to drop the price below market value to compete with newer, reasonably priced listings.
Prepare your home. Most of us don't keep our homes in "showroom" condition. We tend to overlook piles of boxes in the garage, broken porch lights, and doors or windows that stick. It's time to break out of that owner's mindset and get your house in tip-top shape. The condition of your home will affect how quickly it sells and the price the buyer is willing to offer. First impressions are the most important. Your real estate agent can help you take a fresh look at your home and suggest ways to stage it and make it more appealing to buyers. * A home with too much "personality" is harder to sell. Removing family photos, mementos and personalized décor will help buyers visualize the home as theirs. * Make minor repairs and replacements. Small defects, such as a leaky faucet, a torn screen or a worn doormat, can ruin the buyer's first impression. * Clutter is a big no-no when showing your home to potential buyers. Make sure you have removed all knick-knacks from your shelves and cleared all your bathroom and kitchen counters to make every area seem as spacious as possible.
Get the word out. Now that you're ready to sell, your real estate agent will set up a marketing strategy specifically for your home. There are many ways to get the word out, including: * The Internet * Yard signs * Open houses * Media advertising * Agent-to-agent referrals * Direct mail marketing campaigns In addition to listing your home on the MLS, your agent will use a combination of these tactics to bring the most qualified buyers to your home. Your agent should structure the marketing plan so that the first three to six weeks are the busiest.
Receive an offer. When you receive a written offer from a potential buyer, your real estate agent will first find out whether or not the individual is prequalified or preapproved to buy your home. If so, then you and your agent will review the proposed contract, taking care to understand what is required of both parties to execute the transaction. The contract, though not limited to this list, should include the following: * Legal description of the property * Offer price * Down payment * Financing arrangements * List of fees and who will pay them * Deposit amount * Inspection rights and possible repair allowances * Method of conveying the title and who will handle the closing * Appliances and furnishings that will stay with the home * Settlement date * Contingencies At this point, you have three options: accept the contract as is, accept it with changes (a counteroffer), or reject it. Remember: Once both parties have signed a written offer, the document becomes legally binding. If you have any questions or concerns, be certain to address them with your real estate agent right away.
Negotiate to sell. Most offers to purchase your home will require some negotiating to come to a win-win agreement. Your real estate agent is well versed on the intricacies of the contracts used in your area and will protect your best interest throughout the bargaining. Your agent also knows what each contract clause means, what you will net from the sale and what areas are easiest to negotiate. Some negotiable items: * Price * Financing * Closing costs * Repairs * Appliances and fixtures * Landscaping * Painting * Move-in date Once both parties have agreed on the terms of the sale, your agent will prepare a contract.
Prepare to close. Once you accept an offer to sell your house, you will need to make a list of all the things you and your buyer must do before closing. The property may need to be formally appraised, surveyed, inspected or repaired. Your real estate agent can spearhead the effort and serve as your advocate when dealing with the buyer's agent and service providers. Depending on the written contract, you may pay for all, some or none of these items. If each procedure returns acceptable results as defined by the contract, then the sale may continue. If there are problems with the home, the terms set forth in the contract will dictate your next step. You or the buyer may decide to walk away, open a new round of negotiations or proceed to closing. Important reminder: A few days before the closing, you will want to contact the entity that is closing the transaction and make sure the necessary documents will be ready to sign on the appropriate date. Also, begin to make arrangements for your upcoming move if you have not done so.
Close the deal. "Closing" refers to the meeting where ownership of the property is legally transferred to the buyer. Your agent will be present during the closing to guide you through the process and make sure everything goes as planned. By being present during the closing, he or she can mediate any last-minute issues that may arise. In some states, an attorney is required and you may wish to have one present. After the closing, you should make a "to do" list for turning the property over to the new owners. Here is a checklist to get you started. * Cancel electricity, gas, lawn care, cable and other routine services. * If the new owner is retaining any of the services, change the name on the account. * Gather owner's manuals and warranties for all conveying appliances.

Central Arkansas Market Statistics,Little Rock Homes

Kerry Ellison (Keller Williams) — Wed, 27 Feb 2008 13:46:09 -0800

I was in Atlanta last week for our yearly Keller Williams Convention. It was great to be around such a great group of agents that were so up beat and realistic about our market. We are really lucky in our Central Arkansas Housing Market. Our sales are only down 6.3 % from 2006 -2007. We have actually seen a rise in our average sales price of 3.16%. And our total sales Volume in Pulaski County was only down 3.39%. (2006 1.01 Billion and 2007 982.55 million)

Little Rock Home values have been buffered from the extreme highs and lows of other parts of the country. We have never seen double digit appreciation so our adjustment in our market was only minimal. Below is a copy of an email summarizing the current state of our market and how we arrived in our current situation?

The 10-year run-up in real estate that began in the early 1990s, led to an environment in which homes were no longer affordable, lenders were willing to take unreasonable risks and inventory rose to record levels. This chain of events led to mortgage lenders pulling back, followed by a credit squeeze, increased inventory, dropping prices, rising defaults, slipping consumer confidence and reluctant buyers.

This is so true, we have seen the national media just hammer the real estate market, but they forget not everyone lives on the East and West coast. We are still seeing an increase in the inventory of homes for sale in our January numbers, however I really think when we close our this month we will see an adjustment...below is some Market Statistics I found interesting.

Year Homes Listed Homes sold 30 days Sold %

Pulaski County Jan 07 885 316 36 %

Pulaski County Jan 08 896 261 29%

Hillcrest/Heights Jan 07 364 130 36%

WLR,Maumelle

NLR,Chenal Midtown

Chenal Jan 08 389 123 32%

Little Rock Real Estate is seeing an increase in pending sales for the month of February. Will that translate to higher closings? Will the increase in FHA loan limits improve the ratio of pending to closed homes? I think we will....IF you are thinking of buying or selling now is the time. Go to my website at http://www.kerryellison.com/ for a free report on the value of your home and homes in your area....

This information was derived from CARMLS and is specific to certain market areas.

10 Reasons to Buy in a Buyers Market

Kerry Ellison (Keller Williams) — Tue, 05 Feb 2008 10:15:44 -0800

Homes in Little Rock,AR; Market Reports Little Rock,AR

Kerry Ellison (Keller Williams) — Tue, 05 Feb 2008 10:10:10 -0800

Little Rock Housing Market Update...Homes in Little Rock,AR

Kerry Ellison (Keller Williams) — Wed, 16 Jan 2008 18:53:30 -0800

Little Rock Housing Market conditiions

Kerry Ellison (Keller Williams) — Tue, 15 Jan 2008 15:12:08 -0800

Can you believe it is the middle of January 2008. Where did 2007 go? Actually with all the media coverage of the housing market and the sub prime loan market I don't think I will miss 2007. 2008 looks to be much more promising. We are seeing a lot of activity in our homes under $200,000 and under $300,000 in a lot of our markets.

Laurence Yun, the Chief Economist for NAR has plenty of positive news. The Sub Prime Market is a small percent of homes in our local area. NO one can really pin point what percentage of homes sold sub prime in 2005, 2006 and 2007. However one of the best explanations I have ever heard is GREED. Traditional mortgages were not returning enough so Wall Street got greedy. How can a person who is in bankruptcy, late on house payments, credit cards and student loans walk in and get a loan. Greed...10 to 14 % interest rates. These borrowers could not even qualify for a car loan, but the sub prime market said sure make the largest purchase of your life, here is a 100 % loan. No one is asking if these borrowers should get a loan?

2007 was the 5th best year on record. If you read any newspapers or watched any of the nightly news shows you would think we had one of the worst years on record. We did not; we just had climbed so high the fall was steep. In our local market when you have more homes built than have ever sold in any given year how did we think they would be bought? With no major changes in our economy where are the buyers coming from? How can the banks continue to just give and give? Did anyone ever stop to think , "should I do this?" What ever happen to the supply and demand curve?

Thanks to over-development, over-supply and too many flip this house shows, we have flooded our market. Our demand is still in line with recent years, but our supply is double our demand. That means one thing, lower prices. Again we never saw a double digit appreciation, so we haven't seen 20 % deprecation. I think if we could just throw out 2006, 2007 and price our current homes off 2004, 2005 we would be just fine. WE had 2 years of unusual appreciation; however Homes in Little Rock are still stable and selling. It goes back to supply and demand.

Central Arkansas Market Statistics; Little Rock Real Estate Market Statistics

Kerry Ellison (Keller Williams) — Wed, 12 Dec 2007 12:59:09 -0800

When I ran across this graph I though it really showed what is going on in our current market...Below are a few more Truths that I found interesting..

In watching the Little Rock Real Estate market on a weekly basis I see our inventory of homes remaining very steady. Our number of homes currently listed on the market has been the same since mid July. Our Market didn't have as far to fall as some other markets, because our appreciation has never been in double digits. WE have consistently remained between 3 to 5 % appreciation. Again if you are in the Central Arkansas Real Estate Market now is the time to purchase a home, especially if you are buying up. Our smaller homes are really showing signs of our market turning around. .

Please look for my next blog, I will continue to look at our Central Arkansas Real Estate Market and update my market statistics.

Thanks

Homes in Little Rock,AR...Market Reports

Kerry Ellison (Keller Williams) — Tue, 20 Nov 2007 16:39:00 -0800

With all the bad news coming out of the national news what is a local buyer or seller to think? Do we buy, do we sell or do we hold? Homes in Little Rock, AR are seeing some lower priced markets that are still in sellers market. We have seen our higher end homes take a hit....a hard hit for our local market. 10 Top Reasons to Buy Now....

1. You can get a deal! Why not buy when you can save 5 %?

2. Money from Builders and Incentives. Sellers and builders are stepping up to the plate with everything from paying closing cost to furniture allowances.

3. Uncle Sam is giving us credit for or interest on our loans and a $350 tax credit for owning a home in Pulaski County and living in the home.

4. Invetory- We have plenty to choose from, I remember the days when you couldn't find a home.

5. Banks and Interest Rates- They are coming down and bankers are cutting cost to get deals.

6. Amenities- we have more homes with more bells and whistles than ever before, better quality homes.

7. Energy Savings- you have more energy efficient homes

8. Space- you can buy more home for the money today.

9. IF you are buying up you will save approximately 5 to 10 % on the larger home and your home may still be in a sellers market.

10.Real Buyers and Sellers- Homes are selling, buyers are buying don't let the media slow you down..

Market Report for homes in Little Rock,AR

Week ending 11/13/07 Week Ending 11/19/07

New Listings 86 81

$ Change 70 70

Pendings 85 66

Expired 17 20

Sold 21 50

LP/SP 97/94 109/106

DOM 59 69

Ttl Mkt 1227 1262

I am disappointed in these numbers however I think we will see the ttl market number go down next week.

Again this information was gathered from specific areas of Homes in Little Rock,AR from our local MLS.

Homes in Little Rock,AR ....Market Update....

Kerry Ellison (Keller Williams) — Thu, 08 Nov 2007 15:16:51 -0800

The Local Market Scoop for Homes in Little Rock

When I woke up this morning I was shocked to see the news about housing front and center again. I understand the market is in bad shape in some places of the U.S but not every region. I learned last week that the media gathers there information from Tax Assessors and the Mortgage companies. That data is not as current as the MLS. 80 % + of homes are sold in the U.S. through a Realtor. I compiled a quick summary of what is happening in the Little Rock Real Estate Market. I think you will find this interesting. I did..

Yearly Trends in Pulaski County

Year Ttl Listed #Sold % Sold Avg List $ Avg. Sale $ LP/SP $ DOM %Expired

2005 7458 5518 74% $172,134 $168,372 97.81% 57 0.58%

2006 9227 5506 60% $174,000 $170,198 97.59% 68 13.04%

2007 9100 4796 53% $180,633 $175,560 97.19% 76 17.49%

Yearly Trends in Hillcrest/Heights/Mid-Town/West Little Rock/Chenal/Ferndale/Maumelle/North Little Rock

2005 3497 2663 76.15% $243,206 $237,645 97.71% 53 0.43%

2006 4231 2630 62.16% $241,164 $235,401 97.61% 54 13.05%

2007 4159 2243 53.93% $248,769 $241,156 96.94% 69 16.37%

The Kerry Ellison Team

1514 Market Street, Ste. B 100

Little Rock,AR 72211

501-529-8809 Cell Phone

Email:KerryEllison@kw.com

Website:www.KerryEllison.com

****This information is deemed was gathering from the Central Arkansas MLS***** Keller Williams Realty, Each office is independently owned and operated.

Homes in Little Rock, AR..What is happening in our Real Estate Market

Kerry Ellison (Keller Williams) — Wed, 07 Nov 2007 17:23:30 -0800

What a great week, we finally have some good news to talk about in the Little Rock Real estate Market...we have seen our inventory take a slight drop. Again we have been hovering around 1250 homes since July 7, 2007. Hopefully we will see this trend continue with buyers taking advantage of the lower home prices in Little Rock, AR....I have heard a lot of buyers just waiting to see if the prices continue on a downward trend....hold on to your hats...if next week our numbers still hang around these numbers we will see some homes sell and buyers will remember was it was like to bid multiple times on homes. We are still seeing a sellers market on the homes under $200,000...you can do a Search of Real Estate in Little Rock and do an inventory of your own under $200 and you will understand why I am telling buyers to buy. There are numersous reasons to buy homes over the Christmas holidays..I will be attaching a report in the next few days. Buyers love to purchase homes over the holidays, the homes are decorated and the emotions are running high. You have people who take longer vacations than any other time of the year. You also have buyers moving in families from out of state and when better to move than while the kids are on Christmas break...Stay tuned for more great tips....

Also feel free to view homes for sale in Little Rock, AR on my web site by clicking on my link www.kerryellison.com and click on the Home.

Week ending 11/5/07New Listings 73

Price Changes 56

Under contract 61

Expired 28

Total Homes on the market....1200

Solids 45 List Price/sales price 104/101

Average days on the market 82

Again this information is gather from the Central Arkansas MLS and is only including specific areas of homes in Little Rock, AR.......

Your Weekly Mortgage Update from Claude Cousins at Centennial Bank

Kerry Ellison (Keller Williams) — Wed, 07 Nov 2007 16:27:34 -0800

Rates are creeping ever so slowly in the wrong direction. The mortgage bond market just keep slipping lower and this is pushing interest rates to slightly higher levels. Current interest rates on a 30 year fixed rate mortgage are around 5.875% on larger loans and 6% on smaller loans.

LONG TERM INTEREST RATE CONSIDERATION and BASIC ECONOMIC LESSON- (This may seem a bit esoteric but it is worth reading) - As many are aware, this country has spent a ton of money it doesn't have. We have floated an obscene amount of debt by selling US Treasury notes and bonds and mortgage backed securities. Over the past several years, one of the primary buyers of that debt has been the Chinese government. They hold a huge supply of our debt and have been willing to do so in the face of the sliding dollar. The Chinese government is now signally that if the dollar continues to slide in value, they will be dumping dollar denominated assets to preserve their investments. The Chinese hold a huge supply of mortgage backed securities and this new position is a significant concern for interest rate sensitive investments.

Well, see if you can guess the effects of this scenario? If there is more supply that demand in the bond market, interest rates go higher. If there is suddenly a glut of Chinese held mortgage backed securities that hit the market, we will see interest rates head upward. If the Chinese government decides that they no longer want to purchase mortgage backed securities because of the negative press and the falling dollar, this will cause interest rates to remain higher than current levels. While I do not like to worry about things I can't control, this scenario bothers me significantly.

If you start seeing news articles about the Chinese government selling dollar denominated assets, you should probably read the article. This scenario would have a definite impact on interest rates and thus your way of making a living.

It is my job to keep you informed about the factors that affect home loans and thus make you better prepared as a Realtor. Please let me know if I can do anything else to help you or your buyers.

Have a great week!

Claude Cousins
Sr. Vice President

Office 501-320-4902
Fax 501-320-4939
Cell 501-350-8040

Confidentiality Notice

This communication from Centennial Bank may contain privileged and/or confidential information. It is intended solely for the use of the addressee. If you are not the intended recipient, you are strictly prohibited from disclosing, copying, distributing or using any of this information. If you receive this communication in error, please contact the sender immediately and destroy the material in its entirety, whether electronic or hard copy. This communication may contain nonpublic personal information about consumers subject to the restrictions of the Gramm-Leach-Bliley Act. You may not directly or indirectly reuse or redisclose such information for any purpose other than to provide the services for which you are receiving the information.

Mortgage Update on Little Rock Real Estate

Kerry Ellison (Keller Williams) — Wed, 31 Oct 2007 16:53:03 -0700

Today is the Fed day and it has chosen to cut the discount rate by .25%. This was expected and it came to pass. More importantly, the Fed Policy statement changed a bit and market experts are taking the revisions as indications of no additional rate cuts in December.

In short, interest rate sensitive investments are unhappy with the news and mortgage rates will react similarly. Two things are bothering mortgage rates, good economic growth (excluding housing) and perceived inflationary pressure. Remember, when our economy is strong, there is more of a demand for money and the "rent" (interest expense) on money goes up. It's that basic economic theory that about half of us slept through in college.

From a technical point of view, prices have broken through the first level of support but have not tested the second level of support. All in all, it would be prudent to lock in rates here before they get any worse. This is especially true of you have a loan closing within 30 days. Those that chose to lock rates last week, as suggested, find themselves at rates about .25% lower than what will be available tomorrow.

Call me if I can help with anything!

Claude Cousins
Sr. Vice President

Office 501-320-4902
Fax 501-320-4939
Cell 501-350-8040

Confidentiality Notice

As your trusted advisor, I am sending you this information because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you. In the unlikely event that you no longer wish to receive these valuable market updates, please email REMOVE to: ccousins@centennialbank.net

What are properties doing in the Little Rock Estate Market

Kerry Ellison (Keller Williams) — Wed, 31 Oct 2007 16:51:20 -0700

Homes in Little Rock are in such a unique market. I was reading about properties in Arkansas and the foreclosure rate is actually down 3 % from this time last year. In reporting on market statistics I was shocked to read that most economists do not use our data. They use secondary market and assessor records. What does that mean to us as buyers and sellers of homes. The data is at least 60 days behind. So when the media is telling us we are in a slow downed market, are we really? Being a Keller Williams real estate agent, I have learned so much in the different ways to understand what homes in Little Rock are doing. Homes in Little Rock have remained at the same inventory level since July 15. What does that mean? We should be seeing an inventory reduction. The big question is when. We have been at our highest inventory level for 4 plus months, so when the sky is falling someone please let me know. I have 7 homes closing this month. Someone forgot to tell the buyers and sellers that homes in Little Rock aren't selling. Again we are oversupplied. We still have the same number of homes selling as in the previous years. I am going to publish 10 Reasons to purchase a Home Now. IF you are thinking of purchasing any properties in the Little Rock area you are in luck. You will find some bargains that are not normally available. Below is a market update on the Little Rock Real estate market.

Week ending 10/29/07

New 76

$ changed-48

Under contract-76

Expired-23

Ttl Homes on Market-1212 ( this is a decrease from the last 2 weeks and should continue going down)

Solds-46

LP/SP-107/104 Days on Market -124

Again this inforamtion is gathered from searching the MLS in Little Rock and specific areas.

Mortgage update with Claude Cousins, Centennial bank....

Kerry Ellison (Keller Williams) — Tue, 23 Oct 2007 15:03:30 -0700

With no economic reports scheduled for release today, Stocks will likely continue their role in leading Bond prices. Since both investments compete for the same pot of money, strength in one typically weakens the performance of the other. Bonds definitely have improved based on the 500 point decline in stocks last week.

Apple, Inc. reported a huge 67% increase in quarterly profits on strong sales of their new iPhones and iPods, as well as their Mac computers. This news is moving the stock market in a positive direction which has caused the bond market gains to take a pause.

Whether Stocks are able to hold their gains remains to be seen. Having said that, I am still recommending to cautiously float today. Bonds are trading just between a floor of support and a ceiling of resistance.

Current rates on 30 year fixed rate loans are 5.875% on larger loans.

As your trusted advisor, I am sending you this information because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please email REMOVE to: ccousins@centennialbank.net

Claude Cousins
Sr. Vice President

Office 501-320-4902
Fax 501-320-4939
Cell 501-350-8040

Confidentiality Notice

Market information on Little Rock Real Estate

Kerry Ellison (Keller Williams) — Tue, 23 Oct 2007 15:01:30 -0700

I get asked every week what is happening in our market. Are we really in that much trouble? My answer is no. Buyers are still buying homes...the same number they bought in the last 2 to 3 years. The national media is playing huge part of mindset of the buyers. We have buyers even in the lower priced homes wanting deals. The bottom line is we have an adjusted price point. Our market is still in good shape. People drive around and see homes that do not have sold signs, just for sale. The truth is we have more listings on the market than we have seen before. The shows on tv like flip this house, HGTV and all the tv shows that make buying, fixing up and flipping a home the thing to do....we will see these fly by night investors start to slow down because the markets are not rewarding them for there efforts. The market is stable. My weekly post and the numbers tell us that we aren't dropping 10% value...we do have some sections of our market feeling the crunch more so then others. I still see homes under $150 moving very well...and even in a sellers market.

IF you have any questions or concerns about the market, please let me know...I can always send you my market spread sheet to show anyone the numbers I see on a weekly basis. I also look at other market factors such as hits on the Internet, showings and visual tours. When we see our numbers go up on the Internet, which is where 90% of buyers search for homes, we see the ripple effect through the market.

Date New Price change Under Contract Expired Ttl Market solds lp/sp dom

10/15 78 69 71 17 1259 25 101/95 88

10/22 95 80 76 15 1286 38 109/105 57

The total market number is a little concerning, I think we will see this number drop next week because approximately 80 % of homes close during the last week of the month. One really good sign in the days on market is coming down. We are seeing homes that are priced in todays market and in good condition.

this information is complied from Central Arkansas MLS. These are also specific areas in Little Rock that I watch on a weekly basis.

Update on the mortgage market from Claude Cousins Centennial Bank

Kerry Ellison (Keller Williams) — Wed, 17 Oct 2007 17:27:52 -0700

Mortgage Bonds are modestly higher and continue to hover near the 200-day Moving Average.

This morning, inflation watchers breathed a sigh of relief as the core rate of consumer inflation remained stable and matched expectations. In other news, the numbers of Housing Starts and Building Permits for September were reported weaker than expected and are at a 14-year low.

As long as Bonds remain above multiple layers of support, I am continuing to recommend floating and loans that will close in the next 30-45 days.

As your trusted advisor, I am sending you this information because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please email REMOVE to: ccousins@centennialbank.net

Claude Cousins
Sr. Vice President

Office 501-320-4902
Fax 501-320-4939
Cell 501-350-8040

Confidentiality Notice

This communication from Centennial Bankmay contain privileged and/or confidential information. It is intended solely for the use of the addressee. If you are not the intended recipient, you are strictly prohibited from disclosing, copying, distributing or using any of this information. If you receive this communication in error, please contact the sender immediately and destroy the material in its entirety, whether electronic or hard copy. This communication may contain nonpublic personal information about consumers subject to the restrictions of the Gramm-Leach-Bliley Act. You may not directly or indirectly reuse or redisclose such information for any purpose other than to provide the services for which you are receiving the information.

Little Rock Real Estate Housing Market

Kerry Ellison (Keller Williams) — Wed, 10 Oct 2007 12:01:46 -0700

Buying or selling a home in the Little Rock real estate market presents interesting challenges. We see buyers who just keep browsing, sellers who are still wanting to price there Little Rock houses in 2005 and 2006 numbers. I just did a 3 year trend in my subdivision, Pleasant Valley (Little Rock, AR) and I was quite surprised at what I found. We are still selling the same number of homes, actually we are up from 2005.

The Little Rock Real estate market seems to be so slow because we as a population are used to seeing a sign go up and it is sold. The reality is we are still selling the same number of homes in Little Rock, just more signs are up so it has the appearance that homes aren't selling. They are! We are starting a new course at Keller Williams that deals with the shifting market. We are so lucky in the Little Rock Housing market not to see the huge swings of the east coast and west coast. I think some tips I would like to give to my sellers is be patient and be realistic. We are in a buyers market in most of our areas (West Little Rock, Heights, Hillcrest, PV, Maumelle, North Little Rock). If you have 50% of the homes selling you have to be priced in the top 1/2 and also your condition is playing a much larger role than I have ever seen. Positioning, I had an agent call me last week and ask why my houses were showing and her's were not....Simple it is called the World Wide Web....In today's real estate market buyers are dictating which homes they want to see. If you don't make the first cut your home will probably never get shown. Why? Because in the "old days" of the Central Arkansas MLS it was only for real estate agents. Today, the Little Rock MLS is posted everywhere so that buyers have access to all of our homes. Below are the latest real estate numbers for our housing market. (Little Rock,AR)

New Listings $ Changes Under Contract Expired Ttl Homes Sold homes LP/SP DOM WE 10/8/07

164 77 84 53 1259 20 107/104 55

Yes we have a huge number of new home in the Little Rock area. However, last week we had a lower than average number of homes on the market. We did see a large expired number the last 2 weeks and the new listings seem to show the expired homes coming back on the market.

Again this information is comprised of specific ares of real estate in Little Rock, Maumelle, West Little Rock, Heights, Hillcrest, Chenal, Mid towne and North Little Rock.....and are only specific areas that I have chosen in our real estate market to track. This information is gathered from the Central Arkansas MLS.

News you can use...Mortgage Rates..Claude Cousins...

Kerry Ellison (Keller Williams) — Wed, 03 Oct 2007 10:38:33 -0700

Yesterday, Mortgage Bonds bounced off support at the 200-day Moving Average. While prices did finish the day higher, the advance was stopped at the first resistance level (25 day average price).

This morning the Pending Home Sales Index for August, which is the leading indicator of existing home sales, came in lower than expected and Mortgage Bonds improved slightly on the weak news.

Since Mortgage Bonds continue to trade above the previously discussed 200-day Moving Average, I will continue to recommend floating.

As your trusted advisor, I am sending you this information because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please email REMOVE to: ccousins@centennialbank.net

Claude Cousins
Sr. Vice President

Office 501-320-4902
Fax 501-320-4939
Cell 501-350-8040

Confidentiality Notice

This communication from Centennial Bankmay contain privileged and/or confidential information. It is intended solely for the use of the addressee. If you are not the intended recipient, you are strictly prohibited from disclosing, copying, distributing or using any of this information. If you receive this communication in error, please contact the sender immediately and destroy the material in its entirety, whether electronic or hard copy. This communication may contain nonpublic personal information about consumers subject to the restrictions of the Gramm-Leach-Bliley Act. You may not directly or indirectly reuse or redisclose such information for any purpose other than to provide the services for which you are receiving the information.

Market Condition in Little Rock and surrounding areas...

Kerry Ellison (Keller Williams) — Wed, 03 Oct 2007 10:37:05 -0700

The real estate market seems to be improving in Central Arkansas. I have seen the numbers pick up for the last 2 weeks. We have also seen specific market factors picking up which is showings signs of improvement.

We are also seeing bigger homes such as golf course properties picking up with relocations and move up buyers

There is still signs of price corrections due to the large supply vs. the lower demand. With interest rates dropping and liquidity increasing in the secondary market we have seen more first time home buyers making a decisions to buy vs. look. One sign of a buyers market is the actions of buyers from low ball offers, non committal to any home with the attitude another one will list that might work better and longer market times. Once we see the market start to absorb the excess we will see this trend ease due to buyers wanting homes and losing them to other buyers or being bid out. WE have some fabulous buys in the market and if you have ever considered moving up know is the time....How much longer will our numbers hold. Again building permits are down so we will see the excess be absorbed. The question is how long can sellers hold out and how long can builders survive while losing money. I think the positive thought process is your home has appreciated in the last 2 to 2.5 years on an unprecedented rate, we are seeing a correction. Not that you have LOST equity, did you really ever have any....if you would have sold in the last few years, how much more would you have paid to move up.....

Date New Listings Price Change Under Contract Expired Ttl Market Solds lp/sp dom

9/17 79 79 79 19 1241 25 101/97 69

9/24 89 92 70 12 1250 35 110/107 47

10/1 92 75 68 43 1161 69 100/97 80

Again i have gather this information from CARMLS using specific market that I watch......this is to be used as inforamtional purposes only......

Your Weekly Mortgage update...from Claude Cousins

Kerry Ellison (Keller Williams) — Thu, 27 Sep 2007 09:46:10 -0700

When it comes to the Bond Market, the rule is good news is bad news and vice versa. Durable Goods was reported at -4.9%, which was lower than expectations of -3.5% and bad economic news, which should be good for Bonds. But Bond prices have actually worsened because the 200-day Moving Average ceiling is too difficult to break. Recall that yesterday, mortgage bonds were trading above this level, but actually closed below it. The 200 day average acted like a price floor but now acts like a cap. This means that mortgage bond prices will drift lower and rates will creep higher.

The 200 day moving average is show as R1 in the chart below. The next level of pricing support is the line S1shown below. I now expect pricing to drift lower (mortgage rates higher) until we test the support at 99.67. This would translate to interest rate moving .125% higher over the next few days.

Technically the 200-day Moving Average is powerful resistance by itself, but the 25-day Moving Average is also close by, making this dual ceiling of resistance too tough to break. Because of these factors, I am recommending a locking stance for today.

If you are not benefiting from this information, we will be glad to remove you from the list. All I need is a "remove" email from you. If you are benefiting from this email, send me your current prospect!

Put your clients where service is matched with experience and technology. Call me today!

Claude Cousins
Sr. Vice President

Office 501-320-4902
Fax 501-320-4939
Cell 501-350-8040

Confidentiality Notice

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