Value of Home: Priceless

Rise in Home Sales Signifies Strengthening Market

2012-01-23T10:47:00.000-08:00

The long-awaited housing recovery is beginning to blossom, according to industry experts taking a look at recent existing-home sales.
While admitting home sales “are still very low,” Paul Dales, chief economist at Capital Economics, says “it is clear that housing recovery is now well underway.”
The evidence: home sales have been on the rise for the past three months, posting a 5 percent increase in December.
Lawrence Yun, chief economist for the National Association of Realtors (NAR), concurs with Dales’ assessment, saying “The pattern of home sales in recent months demonstrates a market in recovery.”
Yun suggests consumers are gaining confidence from “record low mortgage interest rates, job growth and bargain home prices.”
In addition to the 5 percent increase in December, NAR reported a 1.7 percent annual increase in existing-home sales in 2011, a total of 4.26 million homes for the year. Distressed homes made up 32 percent of sales in December, according to NAR’s existing home sales report for the month. Foreclosed home sales closed at about 22 percent below market rate in December, a discount 2 percent higher than that recorded a year earlier.
Investor demand remains steady with 21 percent of homes sold in December going to investors after this category of buyers took 19 percent of purchases in November and 20 percent one year ago.
Cash sales – commonly linked to investors – made up 31 percent of December’s existing-home sales. This rate was 28 percent in November and 29 percent a year ago.
Purchases by first-time home buyers declined in December – both from the previous month and the previous year. First-time home buyers accounted for 31 percent of purchases in December, down from 35 percent in November and 33 percent in December 2010.
Housing inventory is on the decline and fell to its lowest level since March 2005 last month, according to NAR. Approximately 2.3 million homes are available for sale currently.
“The inventory supply suggests many markets will continue to see prices stabilize or grow moderately in the near future,” Yun said.
However, listed inventory is only part of the equation, and according to CoreLogic’s latest numbers, shadow inventory stands at about 1.6 million.
Regardless, Dales believes sales will rise this year. “Housing still won’t contribute much to GDP growth over the next few years, but at least it will no longer subtract from it,” Dales says.

By: Krista Franks - DS News

More Ways To Attract Potential Buyers

2011-05-20T04:43:00.000-07:00

It's official. You want to sell your house and need to know the secret of getting buyer's hearts' to beat a little faster.

There is a school of thought which says you should make the place as anonymous as possible, so as not to put people off. Often, people find that way of thinking uncreative, unimaginative and, in the long run, unattractive to a potential buyer. There is nothing more exciting than creating your own home, in your own style.

1. Take the indoors outdoors by adding an extra temporay room by taking a simple metal frame and hang banners of linen from it. With little effort, you've created a separate space with atmosphere.
2. If your wooden floors are dreary, enliven with a rug. Put fresh bed linens and colorful pillows on your bed. Replace old bathtowels with new ones.
3. There's a funny idea that wood should never be painted, but, to be honest, sometimes wood is crying to be painted. If doors in a house are all painted the same color, it brings things together.
4. If people are coming to view your house, put out vases of freshly cut flowers. It creates a fresh feel and herbs on the kitchen table can help too.
-Designers Guild May 2011

Homes Are Selling

2011-05-04T10:33:00.000-07:00

One of the biggest misconceptions in today's market is that homes are not selling.
That is simply not true. Last month's Existing Sales Report from The National Association of Realtors (NAR) showed that homes were selling at an annual rate of 5.10 million. That's an average 0f 13,973 homes selling every day-375 days a year! The Monthly Pending Sales Report which measures the number of houses going into contract each month, has showed increases in six of the last nine months prompting Lawrence Yun, NAR's Chief Economist to say "Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrated the market is recovering on its own. Since 40% of the sales are distressed properties and 25% of buyers are investors, it doesn't change the fact that homes are selling and 60% are not foreclosures. Based on these numbers, existing home sales should rise 5-10 percent this year.

MY House Hasn't Lost Value

2011-04-16T15:04:00.000-07:00

Buyers want to be the winners in the home buying process. Perception is a funny thing. When we own our own homes, there is often a pride of ownership that makes us possessive of our property and often we believe that our property is better than the home down the street. As you talk to homeowners about comparable sold properties, some will insist their home is worth considerably more than an identical home that sold down the street. Prospective buyers just don't have the same opnion. For those of you who have not been living under a rock already know those updates that make you so proud of your home are not exactly what the buyer has been searching for. Whether you've hired the best contractor in the country to remodel or done the work yourself, it comes down to evaluating the market and placing the correct value on the property if you really want to sell.

Housing Prices Are Great

2011-03-22T16:16:00.000-07:00

It's been a spectacular year so far for our local housing market. Between showing properties, multiple offers on well-priced properties and closings, our agents have barely had time to reflect on why they're working at such a furious pace these days and we are thankful and welcome the weeks and months ahead.

Another item of very good news is that Lafayette was selected for a 330-acre industrial park near Veterans Memorial Parkway and US 52 as the new headquarters for a state-of-the-art, 435,000 square ft. facility that produces equipment for the high-speed rail industry, electrical, industrial, automotive, distribution and transportation industries that will employ 150 new employees over the next two years.

Challenges still remain in the real estate market, with many foreclosures still in the pipeline; but it's inherent desirability combined with housing prices not seen since 2001 has helped to revive it just as spring revives the landscape.

Tips to Keep in Mind If You're Thinking about becoming a Real Estate Investor

2011-02-07T14:37:00.000-08:00

With homeownership dropping and rental vacancy rates rising, it is clear that many Americans are making a change to renting instead of owning a home. Currently homeownership levels are at 66.5%, the lowest they've been since 1998, and the rental vacancy rate is at 9.3%, the highest it's been since 2003. Many prospective investors could take this information and apply it to a very lucrative decision for future investor property purchases.
The benefits of real estate investing is the profit you can make if you handle your investment correctly. Having rental property provides a source of regular income, but other than that, investment properties qualify for numerous tax deductions which may include the cost of building and maintenance repairs and interest paid on loans related to the property.
If you choose to buy, hold and rent it, take into consideration the responsibility it takes to be a landlord. You will need a lease agreement specifying what you will be responsible for maintaining and fixing, etc. and what the tenants will be responsible for like amount of rent, date of payments, leasing length, etc.
Becoming a landlord can turn into a very profitable venture if you make sure you are well- versed in property management, including fair housing laws, eviction and collection procedures.
If you choose to flip a property, you must take into account any and all property updates and repairs that need to be made. Consult your lender and attorney for restrictions on flipping. Keep in mind that flipping may not be the wise choice in a down housing economy.
If you decide on renting your investment property, make sure it is in an area where you can attract tenants. Location, location, location. The same rules apply for finding a home to flip.
We are currently in a buyer's market with housing prices at an all time low and making sure you seek out a real estate professional that has experience with real estate owned properties as well as investors will help you stay on track.

Protecting Consumers In A Way That's Never Been Done Before

2011-01-21T13:56:00.000-08:00

What is the CFPB? This is a consumer watchdog that controls and regulates financial products and aims to educate and protect consumers. The CFPB is deemed necessary by Washington insiders who believe it is time an agency with only consumers' interests at heart is developed. They also believe predatory lending and dishonest practices helped push the nation into the current economic landscape. The president will nominate the director who will serve a 5 year term after being voted into office by the Senate. The director will have a lot of power and control over servicers as well as other government agencies. The bureau will be housed within but independently of the Fed, and it's funding will be from 10 to 12 percent of the Fed's operating budget. The director will establish a research unit, a Community affairs unit, and a Consumer complaint unit. The director will also establish an Office of Fair Lending and Equal Opportunity, and Office of Financial Education Protection for Older Americans. The CFPB is expected to be up and running in 12 to 18 months.

Buying and Sellling in Today's Economy

2010-11-27T07:06:00.000-08:00

There are a variety of reasons why you may want to hunt for a new home. You may be looking for your first home and want to take advantage of today's low rates or you may want to move to a new location. Many times, you simply need more space because you've ran out of room.

Although there are many challenges in both buying and selling, there are also so many opportunities that can be used to your advantage. We cannot emphasize enough that this is a great time for real estate transactions and you may be pleasantly surprised at the possibilities.

* Interest rates are historically low. The average interest rate for a long term fixed-rate mortgage is below 5%.

* Home prices remain low while the number of homes on the market is high.

* Waiting to buy a home doesn't always pay off. Your ideal home may no longer be available if you delay your search and interest rates may rise while you wait for prices to go even lower.

* FHA loans are not just for first-time homebuyers and FHA loans are fully assumable for qualified buyers, which can be a strong selling point when it's time to move on, they require less cash to close and they do not place a restriction on a customer's maximum income like some other programs.

The American Dream

2010-10-08T07:36:00.000-07:00

It's natural that we're seeing articles that dismiss the promotion of homeownership in the current economy and you cannot argue with the facts that too many Americans got in over their heads, buying a home they couldn't afford or depleting all their home equity to live a lifestyle they couldn't maintain while others fell victim to predatory lending or job cuts.

Homeownership has long been the American Dream and will continue long after today's economic times are behind us. In fact, the desire for a home is the dream of people everywhere.

I've read many articles that discourage homebuying. However, research has consistently shown the long term benefits pertaining to homeownership to our communities and country. Those studies show a positive correlation with self-esteem, educational achievement, civic participation and crime prevention.

We need to create a vision for a new American Dream that emphasizes responsible, long-term homeownership as a means of achieving social and financial well-being.
Realtor Magazine, NAR President October 2010 http://www.lenwilson.com