Housing I…

 

 

 

Housing Inventories Drop, List Prices Rise

DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 21, 2012

In a growing number of housing markets, sellers are facing less competition now compared to a year ago.

Inventory of for-sale homes has dropped by about 23 percent compared to this time last year, and fell by 6 percent alone from December 2011 to January 2012, according to Realtor.com data. 

The age of the inventory is also declining, and is nearly 5 percent below levels last January. 

The median age of for-sale housing inventory is lowest — 69 days or less — in Oakland, Calif.; Bakersfield, Calif.; Denver; Fresno, Calif.; Stockton-Lodi, Calif. and Phoexnis-Mesa, Ariz., according to January data from Realtor.com.

Meanwhile, as inventory is falling, the median list price has been on the rise: up nationally more than 3 percent year-over-year. 

“Over the past year, an increasing number of markets have registered year-over-year increases in median list prices while fewer markets have experienced year-over-year list price declines,” a statement by Realtor.com notes. 

The metro areas with the highest increases to median list prices year-over-year, from January 2011 to January 2012 are: 

1. Miami, Fla.: 32.75%
Median list price (in January 2012): $265,500

2. Fort Myers-Cape Coral, Fla.: 21%
Median list price: $229,900

3. Punta Gorda, Fla.: 19%
Median list price: $179,000

4. West Palm Beach-Boca Raton, Fla: 18.6%
Median list price: $224,150

5. Boise City, Idaho: 18.15%
Median list price: $151,228

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

Read More

Housing Inventory Down 22% Nationwide

Have Prices Really Hit Bottom?

Sellers Still Overpricing

In the RISmedia story below published in the REALTOR® online magazine, sellers still believe the value of their home is greater than the market indicates. I have written in many blog posts, that there are three primary components to the successful sale of your home in ANY market. They are:

• Correct Pricing
• Adequate Condition
• Proper Exposure

You wouldn’t hire a cardiologist to pour the foundation for your new home….right? So when you ask for the opinion of value from a REALTOR®, trust their advice. Certainly, discuss their findings and understand the criteria and comparable properties they used to derive the value of your home.

There are still real estate practitioners who will “BUY” your listing by promising an unrealistic value or who will say “O.K., we will try your price”. This is usually followed by continuous price reductions until you hit the correct market price. Worse yet, the market will continue to fluctuate and your buyer will have purchased another home, passing over your listing because of an unrealistic asking price.

Many of the major real estate markets in the country are improving (watch for my new posts). However, loan underwritting criteria is still very tough. There are not as many buyers in the market. Chasing the market to the correct price based on a feeling of what your home is worth can cost you valuable time. Most often, it will cause you to take an offer well below the sale price of your home if you would have priced it correctly to begin with.

Remember, my business is built on referral. If you or someone you know needs profession Real Estate services, please consider me. I can be reached as follows:

907-230-3372 mjdroege@gci.net www.MichaelDroege.com http://mjdroege.wordpress.com

• 2011 President, Anchorage Board of REALTORS®
• 2011 President-Elect, Alaska Association of REALTORS®
• 2011-14 RPAC Trustee and Major Investor Chair

Sellers Overvalue Their Home’s Worth, Study Finds Daily Real Estate News | Wednesday, December 07, 2011 About 76 percent of home owners believe their home is worth more than their agent’s recommended listing price — that’s up from 73 percent last year, according to a new survey conducted by HomeGain of real estate professionals and home owners. On the other hand, 68 percent of home buyers say homes are overpriced, with 32 percent saying homes are overpriced by more than 10 percent. “Home buyers and sellers continue to remain apart as to home valuations with the vast majority of home owners thinking their homes are worth more than their agents and the market are telling them,” Louis Cammarosano, general manager of HomeGain said in a statement. Source: “Three Quarters of Owners Continue to Overvalue,” RISMedia (Dec. 6, 2011) Read More Be More Persuasive on Pricing Pricing: Finding the Magic Number

Happy Holidays?

In the article published below in Real Estate News, discussion revolves around whether the Holidays are a good time to list your home for sale.  There are many indicators that point to the fact that, if you are a serious seller, it is a good time.  Key issues favoring the sale of your home during this time of year are:

• MORE SERIOUS BUYERS
• LESS COMPETITIVE LISTINGS
• COLDER CONDITIONS CAN DEMONSTRATE COZINESS

Things to pay attention to for successful:

• Lots of good pictures (Buyers are less likely to come to Open House)
• Cleanliness 
• Orderly Decorations
• Positive Curb Appeal (hang those lights neatly now!)
• Oh Yes and GINGERBREAD!

Like in any other time of year, price, condition and exposure are the three most important factors in selling your home.  If you do decide to list NOW,  make it a point to have your home in “move in” condition.

In Anchorage and the surrounding areas, inventories are low and quality used homes are especially lacking .  If you pay attention to detail, list your home at a competitive price and make sure consumers (and other REALTORS®) know your home is for sale…It will sell.

Interest rates are STILL at historic lows.  Housing affordability is at an all time high.  If you want more specific information about your home feel free to contact me  and I will give you my best assessment.

Remember, my business is built on referral.  If you or someone you know needs professional Real Estate Services, please consider me.  I can be reached as follows:

907-230-3372  mjdroege@gci.net  www.MichaelDroege.com  mjdroege.wordpress.com

• President, Anchorage Board of REALTORS®
• President-Elect, Alaska Association of REALTORS®
• RPAC Trustee and Major Contributor Chair

Are the Holidays a Good Time to Sell?

Daily Real Estate News | Monday, December 05, 2011

 

Sixty percent of real estate professionals advise their sellers to list a home during the holidays because it’s a good time to sell, according to a new survey conducted by Realtor.com. 

Why are the holidays such a good time to sell? Seventy-nine percent of the agents surveyed said that more serious buyers come out during the holidays, and 61 percent say less competition from other properties make it a great time to sell. Plus, 17 percent of agents say the cold weather is actually a benefit, making homes feel more cozy. 

But online listing photos become even more crucial during the holiday season, according to the survey. Slightly more than half of agents say that the photos are more important because sellers tend to offer less open houses around the holidays, and so the online photos help buyers decide the properties to see and which ones to possibly bypass. 

The biggest hurdles sellers face during the holidays, however, are keeping a home ready to show (clean and staged) as well as winter weather conditions and buyers’ vacation schedules, the Realtor.com survey found. 

Source: “Survey Data Reveals Majority of Real Estate Professionals Recommend Clients List Their Homes During the Holidays,” Realtor.com (Dec. 2, 2011)

Read More

Add Some Holiday Charm to Your Listings

11 Inexpensive, Simple Holiday Decor Ideas

REALTORS OPPOSE 20% DOWN PAYMENTS

In the article below published by Reuters, Lawmakers agree that 20% down payment requirements are onerous and will further damage the housing industry and homes values nationwide.  In our recent trip to Washington D.C. REALTORS (May 9-15, 2011) made our position on GSA reform and QRM’s very well know.  REALTORS strongly oppose many of the provisions of Dodd-Frank and the proposed 20% down payment requirements to obtain a QRM (Qualified Residential Mortgage).

It is our contention that the size of the down payment does not indicate the quality of the loan.  It is much more important to vet the buyers credit worthiness and their ability to re-pay the loan.  Proper underwriting and scrutiny of a buyer is imperative.  Our current housing crisis was not caused by low down payments.  It was caused by unrealistically lax lending requirements including, Stated Income, Stated Wage, Stated FICO and low or no documentation loans.  These were highly speculative and DANGEROUS practices.  We are ALL still paying for these sins.

Residential housing accounts for $2.23 Trillion to the annual economy, nearly 1/6th of the nations economic activity.  The nation’s finances WILL NOT get better without a healthy housing market.  Mandating higher down payments, lower loan limits and modifying or eliminating the Mortgage Interest Deduction is  NO WAY to insure a housing recovery.  We need reasonable lending practices to return and affordable loans available to consumers.  We enjoy the lowest interest rates in decades and the most affordable housing markets we have seen in years.  Washington needs to get out-of-the-way and quit trying to help.  Their continued manipulation is ill-advised and will lead to further economic declines.

Remember, my business is built on referral.  If you or someone you know needs professional Real Estate services, please consider me.  I can be reached as follows:

 Michael J. Droege  907-230-3372  mjdroege@gci.net  www.MichaelDroege.com  mjdroege@wordpress.com

 

 Lawmakers: 20% Down Payment Is Too High

A bipartisan group of lawmakers are urging federal regulators to overhaul a mortgage proposal that includes a call for a 20 percent down payment for the “safest mortgages,” saying that it could threaten a full economic recovery “from years to come.” In a letter obtained by the media on Wednesday, more than 160 lawmakers in the House of Representatives called the federal regulator’s mortgage proposal “overly burdensome government dictate” and said that the proposal would reduce the availability of affordable mortgages. In an effort to urge more responsible lending and borrowing, several federal agencies have been developing a proposed risk-retention regulation under the Dodd-Frank Wall Street reform law, which requires lenders that securitize mortgage loans to retain 5 percent of the credit risk unless the mortgage is considered a safe mortgage or a “qualified residential mortgage.” (FHA and VA mortgages would be exempt.) QRMs would be exempt from the 5 percent credit requirement but would have to meet certain guidelines, such as the proposed 20 percent downpayment requirement. Borrowers with less than 20 percent down could then be forced to pay higher fees and interest rates. In the letter, the lawmakers called the 20 percent downpayment guideline too high and asked federal regulators to consider lower downpayment loans that have mortgage insurance that would constitute a QRM. The National Association of REALTORS® has been an outspoken critic to the higher downpayment requirement, arguing that the 20 percent down payment would greatly jeopardize a housing recovery. “We need to strike a balance between reducing investor risk and providing affordable mortgage credit,” NAR President Ron Phipps said in a public statement last week. “Better underwriting and credit quality standards have greatly reduced risk. Adding unnecessarily high minimum down payment requirements will only exclude hundreds of thousands of buyers from home ownership, despite their creditworthiness and proven ability to afford the monthly payment, because of the dramatic increase in the wealth required to purchase a home.” Source: “House Lawmakers to Regulators: Kill Mortgage Plan,” Reuters News (June 1, 2011)

Home Affordability at ALL TIME HIGH!

According to the National Association of Home Builders and in the article below published yesterday in the Daily Real Estate News, housing affordability is at a 20 year high.  With interest rates low and housing prices affordable for most home buyers, now is the time to get your piece of the American Dream.

In an earlier post today I outlined the current mortgage rates from Homestate Mortgage (Lic. #189191).  Begin your quest for a home by meeting with a LOCAL mortgage originator.  My favorite is Lisa Falon (Lic.# 198601).  She can be reached at 907-762-7546 or via e-mail at Lfalon@homestatemtg.com.

I represent Spinell Homes, which has the BEST new construction values in all of Alaska at West Park in Anchorage.  Homes start at $300,700 for a 3 bed, 2 bath, 2 car ranch on lots up to 12,284 sf.

Have a great Memorial Day….the freedoms you enjoy today have been paid by the sacrifices of our men and women who serve in the Armed Forces.  Give them their proper respect and thanks on this weekend.

Remember my business is built on referral.  If you or someone you know needs professional real estate services, please consider me.  I can be reached as follows:

Michael J. Droege 907-230-3372  mjdroege@gci.net  www.MichaelDroege.com  mjdroege@wordpress.com

 

Affordability Reaches Highest Level in 20 Years
Homes are more affordable to more families, according to the latest index for the first quarter of 2011 that shows affordability reaching its highest level in more than 20 years.

Nearly 75 percent of all new and existing homes sold in the first quarter of 2011 were affordable to families earning the national median income of $64,400, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index. The previous high was set in the fourth quarter of 2010 with 73.9 percent.

“With interest rates remaining at historically low levels, today’s report indicates that home ownership is within reach of more households than it has been for more than two decades,” says Bob Nielsen, chairman of the National Association of Home Builders.

The most affordable metro housing market in the nation? Syracuse, N.Y., in which 94.5 percent of all homes sold were affordable to households earning the area’s median family income of $64,300.

Other metro cities ranking high on the affordability index were Youngstown-Warren-Boardman, Ohio-Pa.; Indianapolis-Carmel, Ind.; Warren-Troy-Farmington Hills, Mich.; and Toledo, Ohio.

Meanwhile, the least affordable major housing market for the first quarter of 2011 was New York-White Plains-Wayne, N.Y.-N.J.

Source: “Housing Affordability Rises to Record Level, Tight Financing Continues to Constrain Sales,” National Association of Home Builders (May 25, 2011)

Mortgage and Homes Values GALORE!

We have been saying it all year….Mortgage rates are at an all-time low.  But it is not expected to remain this way.  The Fed will cease buying T-Bills in June which would indicate that interest rates will have to rise, unless private sector money will come in to fill the gap.

Lisa Falon (Lic. # 198601) from Homestate Mortgage (Lic. # 189191) reported today that they are offering the following rates: 

• 30 year fixed (conv) 4.5% 
• 15 Year fixed (conv) 3.75% 
• FHA and VA 3.75%  
• 5/1 ARM 3.0% 
• VA/VMP through Alaska Housing at 4.375

 

Home values abound and there are mortgages available at the lowest rates in years.  Lisa can be reached by calling her at (907) 762-7546 or via e-mail at Lfalon@homestatemtg.com

Remember my business is built on referral.  If you or someone you know needs professional real estate services, please consider me.  I can be reach as follows:

Michael J. Droege 907-230-3372  mjdroege@gci.net  www.MichaelDroege.com  mjdroege@wordpress.com

 

Buyers Better Hurry: Rates Reach New Lows
For the sixth straight week, fixed mortgage rates inched down, reaching new lows for 2011. The 30-year fixed-rate mortgage averaged 4.60 percent this week while the 15-year mortgage averaged 3.78 percent, Freddie Mac reports in its weekly mortgage market survey.

Meanwhile, the National Association of Home Builders reported this week that home affordability reached its highest level in 20 years, making the purchasing power for home buyers even better during this traditionally prime buying season.

Here’s a closer look at mortgage rates:

• 30-year, fixed-rate mortgage: Averaging 4.60 percent this week, it was down slightlyfrom last week’s 4.61 percent average. Last year at this time, 30-year rates averaged 4.84 percent. The 30-year fixed rate mortgage hasn’t been under this week’s 4.60 percent average since early December 2010 when it fell to 4.46 percent.
• 15-year, fixed-rate mortgage: Averaging 3.78 percent this week, it also was down from last week’s 3.80 percent average. Last year at this time, the 15-year fixed-rate mortgage averaged 4.21 percent. It has not been under this week’s 3.78 percent average since late November 2010 when it fell to 3.77 percent.
• 5-year adjustable-rate mortgage: Averaging 3.41 percent this week, it was down from last week’s 3.48 percent average. A year ago at this time, the 5-year ARM averaged 3.97 percent.

Source: “Fixed Mortgage Rates Continue to Find New Lows,” Freddie Mac (May 26, 2011)

INTEREST RATES HIT 30 YEAR LOW

The news just keeps on coming.  This time from Freddie Mac.  Listed below is an article that reiterates the information I have been posting on my BLOG this week.  Prices are low, interest rates are low and the time to buy a home has never been better. 

If you are curious about details, I will be happy to answer any question you have or put you in touch with professionals I trust.  Luck is the intersection where preparedness and opportunity meet.  Get with a local lender to get prepared and then call me to find the right opportunity.  Wanna get lucky?  The time is now.  Call me for more details.

Remember, my business is built on referral.  If you or someone you know needs professional real estate services, please consider me.  I can be reached as follows:

Michael J. Droege  907-230-3372  mjdroege@gci.net  www.MichaelDroege.com  mjdroege@wordpress.com

 

In Time for Buying Season, Rates Hit Yearly Lows The 30-year fixed-rate mortgage, a popular choice among buyers, sank even lower this week, matching its yearly low of 4.71 percent from January, reports Freddie Mac in its weekly mortgage market survey. Last year at this time, the 30-year fixed-rate mortgage averaged 5 percent. Meanwhile, the 15-year fixed-rate hit a new yearly low of 3.89 percent this week. Last week, the 15-year fixed-rate mortgage averaged 3.97 percent. The 15-year rate averaged 4.36 percent last year at this time. It reached its lowest level on record in November when it averaged 3.57 percent. The one-year adjustable-rate mortgage averaged 3.14 percent, down from last week’s 3.15 percent. Last year at this time, it averaged 4.07 percent. “Weaker economic data reports reduced Treasury bond yields and allowed mortgage rates to drift lower for the third consecutive week,” says Frank Nothaft, Freddie Mac’s chief economist. Source: “30-Year Fixed-Rate Mortgage Matches Yearly Low of 4.71 Percent,” Freddie Mac (May 5, 2011)

Gallop Poll: Consumers say BUY NOW!

As mentioned in previous Blog Posts, indicators point to the fact that the time to buy a home if you have been wondering IS NOW!

In the article from RisMedia below, they are reporting that in a recent Gallop Poll, nearly 70% of Americans agree that the time for a home purchase has never been more favorable than RIGHT NOW!

In 1975 – 25% of the average gross income necessary to support a mortgage.  Today it is only 17%. Each market is different and costs from market to market vary.  However, the Home Affordability Index is at an “All Time High”.  Interest Rates are at an “All Time Low”.  Home prices reflect solid values.  Consider the facts, pre-qualify with a local lender and then get out and find yourself a home.

Remember, my business is built on referral.  If you or someone you know needs professional real estate services, please consider me.  I can be reached as follows:

Michael Droege  907-230-3372  mjdroege@gci.net  www.MichaelDroege.com  mjdroege@wordpress.com

Gallup Poll: Americans Say Buy Now
With dropping home values in many markets mixed with interest rates at historical lows, homes are more affordable now than they’ve been in the last 35 years, reports Zillow.com. 

The average buyer nowadays can expect to spend about 17 percent of her monthly gross income on a mortgage, which compares to a 25 percent average since 1975, Zillow reports. 

With affordability high, Americans seem to be getting the message about the value of home ownership. Nearly 70 percent of Americans say now is a good time to buy a home, according to a recent Gallup poll. 

Men are about 16 percent more likely to say now is a good time to buy a home than women. And Americans living in the West are most favorable toward buying (75 percent), which compares to 64 percent of Americans who live in the South who say now is a good time to buy. 

Americans with higher incomes also expressed more of an interest in home ownership, according to the Gallup poll. Americans who make $75,000 or more a year are 18 percent more likely to say that 2011 is a good time to buy a home than those making $30,000-$75,000. 

Source: “Affordability Reaches Generational High,” Realty Times (May 5, 2011) and “Gallup: Time Is Right to Buy,” RISMedia (May 5, 2011)

Mortgage Interest Rates to Rise by Year End!

The article listed below from the Denver Post indicates what REALTORS® and lenders alike agree on.  Interest rates are likely to rise in the not too distant future.  The Federal Reserve will cease buying 10 year T-bills in June. The Fed has been supporting these low Mortgage Interest Rates buying up treasuries.  At this point, there is no indication that private investors will fill the void.

Now is the best time to buy a home.  Prices nationwide are recovering but there are still many many bargains.  Interest rates are at a nearly 40 year low.  In 80 percent of the major real estate markets across the country it is cheaper to buy than to rent.  If you have been considering a purchase or have been sitting on the sidelines waiting for conditions to improve, your time has arrived.

Remember, my business is built on referral.  If you or someone you know needs professional real estate services, please consider me.  I can be reached as follows:

Michael J. Droege  907-230-3372  mjdroege@gci.net  www.MichaelDroege.com  mjdroege@wordpress.com

Interest Rates to Rise as QE2 Ends Wells Fargo Securities Chief Economist John Silvia warns that higher interest rates are on the horizon, with the Federal Reserve set to end its program of buying U.S. Treasurys in June.  He expects higher interest rates to put added pressure on a struggling residential real estate market, but does not expect them to halt the broader recovery. Silvia forecasts that Treasury rates could rise by one-half to a full percentage point, which in turn will affect mortgage interest.  Source: “Interest Rates to Rise as QE2 Ends, Economist Warns in Denver,” Denver Post, Aldo Svaldi (05/05/11)

It’s Cheaper to Buy!

According to a Trulia Real Estate trend study, in nearly 80% of real estate markets nationwide, it is cheaper to buy a home than rent one. 

Additionally, the Housing Affordability Index has never been higher, meaning that it has never been a better time to buy a home.  Real estate prices are still relatively low, interest rates are at a 50 year low, a Buyers ability to negotiate reasonable terms with the Seller and tax benefits of ownership are solid indicators toward buying a home NOW. 

Contact a LOCAL lender and ask them about pre-qualification.  Once you have done so and they give you a price range that suits your finances, go out and go shopping.

Remember, my business is built on referral.  If you or someone you know needs professional real estate services, please consider me.  I can be reached as follows:

Michael J. Droege  -  907-230-3372  -  mjdroege@gci.net  -  www.MichaelDroege.com  – mjdroege@wordpress.com

 

Cheaper to Buy Than Rent? In Most Cities, ‘Yes’
Americans in 39 of the country’s 50 largest cities are finding it’s cheaper to buy a home than rent one, according to Trulia’s second quarter Rent vs. Buy index. In its index, Trulia compared the cost of buying and renting a two-bedroom apartment, condo, or town home in the 50 largest cities in the country.

When compared to the previous quarter, buying a home has become even more affordable than renting. Trulia found last quarter that in 72 percent of the cities it was better to buy than rent, but this quarter the number has grown to 78 percent of the cities studied.

Rising rents, falling home prices, and low mortgage rates have made home ownership make more financial sense in most areas of the country, according to Trulia.

“With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying,” said Ken Shuman, Trulia’s spokesperson, in a statement.

The cities where renting was a less costly option than home ownership were in New York, Fort Worth, Texas, and Kansas City, Mo.

Where It’s Cheapest to Buy vs. Rent

The following is a list of the top 12 cities where it’s cheapest to buy a home than rent.

1. Las Vegas
2. Phoenix
3. Arlington, Texas
4. Fresno, Calif.
5. Miami
6. Mesa, Ariz.
7. Jacksonville, Fla.
8. Sacramento, Calif.
9. Detroit
10. Omaha, Neb.
11. San Antonio
12. El Paso, Texas

Source: “Trulia Reveals Trend Towards Homeownership Where Affordability to Buy Versus Rent Extends to Almost Four in Five Major U.S. Cities,” Trulia.com (April 28, 2011)