Wells Fargo Posts 19% Profit Jump in Q2

Mega bank Wells Fargo ($41.89 0%) posted a second-quarter profit of $5.5 billion, or 98 cents a share, up 19% from year ago levels.

Meanwhile, revenue hit $21.4 billion, an increase of $89 million, from $21.3 billion in the first quarter of 2013.

Revenue rose on higher net interest income.

Overall, the bank saw improvements in terms of loan delinquencies and non-performing assets. During the period, Wells Fargo recorded $21.1 billion in nonperforming assets, down $3.8 billion from year ago levels.

Loans 90 days or more past due – excluding government insured loans – hit $1.2 billion in June, down from $1.4 billion at the end of March.

Meanwhile, seriously delinquent loans with repayments insured by the Federal Housing Administration, the Department of Veterans Affairs and the U.S. Department of Education reached $21 billion, a drop from $21.7 billion at the end of March.

Well’s net interest income in the second quarter also edged up by $251 million to $10.8 billion on higher interest income from the sale of its available-for-sale securities portfolio. This occurred as the firm acquired $21.1 billion in securities, comprised mostly of mortgage-backed securities.

“The portfolio yield improved as prepayments of existing MBS slowed,” Wells Fargo said.

“In addition, we benefitted modestly from organic growth in consumer and commercial loans and income from purchased credit-impaired (PCI) loan resolutions which mitigated the impact of loan portfolio repricing.”

Net loan charge-offs also fell to $1.2 billion in the second quarter, down from $1.4 billion in the first quarter of 2013.

To view the original article, click here: http://www.housingwire.com/news/2013/07/12/wells-fargo-profit-jumps-19-delinquent-loans-decline

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Majority of Americans Believe in Future of Real Estate

It seems Americans are growing more optimistic about the state of housing, as more than half of potential homebuyers now expect the nation’s home prices and mortgage rates to appreciate within the next year, Fannie Mae reports.

Those results came from Fannie Mae’s June 2013 National Housing Survey, which revealed the share of respondents who anticipate a mortgage rate increase rose 11 percentage points, bringing the June total to 57% — the highest level since the survey’s creation in 2010.

Those who believe home prices will increase hit a survey high at 57%, while those who believe prices will drop stayed steady at 7%.

“The spike in mortgage rate expectations this month seems to have had an impact on a number of the survey’s indicators and may increase housing activity in the near term by driving urgency to buy,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.

He added, “Consumers may recognize that today’s still favorable mortgage rates and homeownership affordability levels will recede over time. Given rising home and rental price expectations and improving personal financial attitudes, more prospective homebuyers may be deciding that now is the time to get off the fence.”

The number of respondents who say now is the time to sell retreated slightly in June, falling four percentage points to 37%, compared to 40% in May.

The increasing optimism toward the selling market may be a positive sign of continued improvement in housing activity, as recent market data suggests that 47% of Americans think it would be easy for them to purchase a mortgage. Additionally, 72% of potential homeowners believe it’s a good time to purchase a home.

Of those surveyed, 65% said they would buy if they were going to move. The number of respondents who say home rental prices will go up in the next year jumped to 4.6%, up 1.2% from May.

At 38%, the share of respondents who say the economy is on the right track decreased 2 percentage points over May.

An encouraging 36% of respondents said their household income is significantly higher than it was 12 months ago, rising six percentage points from last month.

To view the original article, click here: http://www.housingwire.com/news/2013/07/08/majority-americans-expect-housing-fundamentals-rise

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Prudential Tops 3 out of 4 Consumer Satisfaction Categories

Prudential Real Estate earned top honors in the latest J.D. Power Home Buyer/Seller Satisfaction Study by scoring highest in three of four categories, first time home buyers, repeat home buyers and first time home sellers.

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J.D. Power’s study of the nation’s largest real estate companies, now in its sixth year, measures customer satisfaction among first-time and repeat homebuyers and sellers.

Overall satisfaction for the first and subsequent home buying experience is measured across four factors: agent/salesperson; real estate office; closing process; and variety of additional services.

For first time and subsequent sellers, J.D. Powers measures five factors – agent/salesperson; real estate office; closing process; marketing; and variety of additional services – to determine overall satisfaction.

J.D. Powers doesn’t total up or average the four scores for each company, but on a maximum 1,000-point scale in each of four categories, here are the satisfaction rankings.

First-Time Home-Buyer Satisfaction Ranking

Prudential Real Estate, 811; RE/MAX 798; Century 21, 797; Coldwell Banker, 792; Keller Williams, 787; category average 797.

Repeat Home-Buyer Satisfaction Ranking

Prudential Real Estate, 829; Century 21, 820; RE/MAX, 819; Coldwell Banker, 811; Keller Williams, 807; category average, 817.

First-Time Home-Seller Satisfaction Ranking

Prudential Real Estate, 809; Keller Williams, 802; RE/MAX, 800; Century 21, 799; Coldwell Banker, 780; category average, 797.

Repeat Home-Seller Satisfaction Ranking

RE/MAX, 819; Century 21, 816; Prudential Real Estate, 809; Coldwell Banker, 785; Keller Williams; category average, 803.

J.D. Power also found:

Overall customer satisfaction with real estate companies is higher among repeat versus first-time customers.

The real estate market has experienced an increase in foreclosure and short sale transactions during the past year.

Customers are more loyal to their real estate company than to their sales agent.

Along with the study’s results, J.D. Power offered the following tips for buyers and sellers:

For buyers or sellers with special circumstances, such as a foreclosure or short sale, ask your real estate agent to explain the implications of these transactions and the responsibilities of the buyer and the seller.

Short sales may take a long time to negotiate; closing costs may be high; and the property may require numerous repairs. Foreclosures could have lien problems and require repairs or upgrades.

Short sales and foreclosed homes aren’t always a bargain.

More and more often, the price is more in line with market value. Repairs can add to the cost.

Finding a home in move-in ready condition might save you money in the long run.

Know all the services your real estate company offers, such as inspections, appraisal, mortgage company recommendations, home insurance and home warranty.

Decide if one-stop shopping for the services is a plus or minus based on your specific transaction.

When you’re shopping for a real estate agent, consider both the company and the agent.

While you should have good rapport with the agent, it’s also important to choose an agency that can provide comprehensive services and has a proven record of success in helping homebuyers and sellers.

To view the original article, click here: http://realtytimes.com/rtpages/20130716_jdpowerstudy.htm

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Luxury Homes in Key West and the Florida Keys for Sale

Luxury Homes for Sale in Key West

There are many options for luxury homes in Key West and the Florida Keys.  They range from buying a private island in the Florida Keys to living on a private island, just off the shoreline of old town Key West which is manage and run as a resort.

Sunset Key Homes for Sale Key West Florida

Sunset Key, which was originally called Tank Island, is just a few minutes boat ride off the shoreline of old town Key West Florida. Sunset Key offers private island living - resort style. Very upscale, expensive, but well worth it if your pocket book can handle it.  Contact me for more information.

Below are current listings for homes for sale on Sunset Key.  These listings are updated daily from the Key West MLS.