July 2011 Market Update
The U.S. housing market has shown increased stability in home sales during 2011 compared to the previous year. The trend has been an upward one since the expiration of the tax credit last summer. Home prices have softened, particularly earlier this year, due to a higher-than-normal number of distressed sales. However, both the percentage of distressed sales and the amount of time they spend on the market has decreased in recent months, a positive sign for the market moving forward. In fact, prices have steadily followed a positive monthly trend since February. Mortgage defaults have also declined lately.

While interest rates continue to break new record lows, the number of buyers who are able take advantage of these savings is restricted by tougher underwriting standards for mortgages. 40% of the banks surveyed by the Office of the Comptroller of the Currency tightened lending standards for mortgages within the past year. In his second press conference, Federal Reserve Chairman Ben Bernanke stated that a quicker foreclosure process and additional home price stabilization are key to boosting confidence in the market and bolstering a more robust recovery in the housing sector.

As the economy improves, stimulus efforts by the government and the Fed will most likely continue to wind down, which typically spurs rising interest rates to keep inflation in check. Although inflation has been the source of recent concern, the Fed appears confident it will remain in check for the near term. Meanwhile, buyers continue to benefit from historically favorable buying conditions, and sellers are encouraged by increased market stability.

We’re only a few weeks away from this year’s RED Day and my hope is that we will double our efforts! At least 250,000 hours spent working in our communities and 45,000 associates.

So here’s the question: Is everyone rallying around together to go make this wonderful, wonderful thing happen. I think so!

When you participate in RED Day, your life will be changed to a greater extent than those you have helped. This is going to be a glorious day. I thank you so much for your efforts. I thank you for what you’re doing and the difference you’re making not only in the life of your community, but in your own personal life. We love you.

I hope you’ll talk to your market center’s RED Day Representative to find out how you can get involved and Give Where You Live on May 12, 2011! There is also a page on mykw.kw.com dedicated to RED Day, please visit if you get a chance!