Predictions for the 2013 housing market

LOS ANGELES, Nov. 26, 2012 /PRNewswire-iReach/ -- Odds are you didn't sit around your Thanksgiving table last year and predict that we'd end 2012 with mortgage rates hovering around 3.3%, or with much of the housing market talk surrounding a "fiscal cliff" (bonus points to you if you had ever used the term "fiscal cliff" back then!). The point is, it's tough to make predictions about something as fluid as the housing market. However, we're going to try! Here are our best guesses as to what's going to happen to the nation's housing market in 2013:

1. We will benefit from years of "underbuilding"
For years, the U.S. has had a glut of vacant houses. In fact, shortly after the recession began, 3% of the nation's existing homes were vacant – an all-time high (normally, only about 1.5% of American homes are vacant). As of mid-November, the vacancy rate was down to 2.1%. Since our vacancy rate has been so high for so long, builders haven't been building anything new. As a result, all of those existing homeowners won't have anything "new and shiny" to compete with as they try to sell their homes in 2013, which will undoubtedly make it easier on them. That could give existing home sales a slight boost.
New home sales hit a two year high
2. Rent prices will hit a plateau
In many cities, rent prices are at an all-time high (just look at Boston, where the average rent is $1,800 per month!). Landlords have been taking advantage of the fact that many people are leery of buying. However, they won't be able to keep raising their prices forever. With rent prices so high – and home values so low – it's actually significantly cheaper to buy a home than it is to rent one in many places. But if rent prices get too much higher, renters may just forget their buying fears and dive right into home ownership, simply to save some money! As a result, landlords will have to cool it with the price increases – or risk alienating a lot of would-be tenants.
3. Quantitative Easing will backfire
OK, maybe "backfire" is too strong of a word. The goal of the Federal Reserve's Quantitative Easing plan is to keep interest rates low, and so far, that part of the plan is working. However, the Fed admits that Quantitative Easing is going to be around for the foreseeable future, and that's where the problem could arise. Fed Chairman Ben Bernanke says he wants to keep interest rates low until 2015. If he does, what incentive do people have to buy anytime in the immediate future? If they know they can take advantage of low rates in a year or two, why buy now? And, if people don't rush to buy now, will the housing market really be able to spring into action?
How does the government affect your mortgage?
4. No major changes will take place until the "fiscal cliff" is resolved
OK, this is an easy prediction to make, since the Bush tax cuts are set to expire on December 31st! However, everyone is waiting to see what – if any – cuts are going to replace them. If Americans wind up paying more taxes, they may not be so willing to run out and buy new homes or take on any kind of additional debt. And, until we know just how bad the "fiscal cliff" is, we don't know how real the threat of another recession is. As a result, many Americans may decide to hold off on making any major purchases – like buying a home – until they see what's going to happen with the nation's economy.
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Media Contact: Daniel Torelli RealtyPin.com, 514-836-1432, daniel@realtypin.com
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SOURCE RealtyPin

Staging Homes for the Cold Winter Holidays

Should homes for sale be staged in a special way for the holidays?
Yes.
It’s absolutely essential that we stage according to the season we are in. Here are some suggestions to consider:
Keep your buyers warm
The key to staging for the holidays is to keep homes warm and inviting. Prospective home buyers will not take their time to explore the home if they are cold. This is especially important to keep in mind if a property is vacant. I recommend making the investment to keep the home heated during the cold months.
Keep it light
This time a year our homes become darker. Therefore, use ample lighting throughout the home. Make the investment to make sure timers are on in every room.
Keep it basic
As you may have heard me share before, how we live in our home is and should be different from how we sell a home. That certainly applies when it comes to holiday decorations. Remember, you want home buyers to see the home, not allow decorations to grab their attention away from envisioning what it would be like to live there.  Choose to display a Christmas tree, a nice wreath on the door, and a centerpiece on the table and allow this to create warm emotions for potential buyers.
Keep it clean
In one way, staging a home during the holidays is no different from any other time a year. It is always important and essential to keep a home clean and free from clutter. Keeping it clean can be more difficult during the holiday season. Snow and rain may cause your home to quickly look untidy during a showing.
Keep it neat outside
“If you can’t see it, you can’t sell it.” Truth is, we start selling a home before the home buyer enters the home. It is important to look at what greets the visitors from the curb and once they arrive at the door. This time a year, there are snow, branches and leaves that can turn the focus away from even the most beautiful home. Is the home easily visible from the street? Is it well-lit? Is the driveway clear of snow? Once you have cleared the area in front of the home, you may want to add colors by putting a pot of colorful flowers outside and maybe invest in lights.



By Barb Schwarz

Existing-Home Sales Rise in October with Ongoing Price and Equity Gains

WASHINGTON (November 19, 2012) - Sales of existing homes increased in October, even with some regional impact from Hurricane Sandy, while home prices continued to rise due to lower levels of inventory supply, according to the National Association of Realtors^®.
Total existing-home sales¹, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 2.1 percent to a seasonally adjusted annual rate of 4.79 million in October from a downwardly revised 4.69 million in September, and are 10.9 percent above the 4.32 million-unit level in October 2011.
Lawrence Yun , NAR chief economist, said there was some impact from Hurricane Sandy. "Home sales continue to trend up and most October transactions were completed by the time the storm hit, but the growing demand with limited inventory is pressuring home prices in much of the country," he said. "We expect an impact on Northeastern home sales in the coming months from a pause and delays in storm-impacted regions."
The national median existing-home price² for all housing types was $178,600 in October, which is 11.1 percent above a year ago. This marks eight consecutive monthly year-over-year increases, which last occurred from October 2005 to May 2006.
"Rising home prices have already resulted in a $760 billion growth in home equity during the past year," Yun said. "Given that each percentage point of price appreciation translates into an additional $190 billion in home equity, we could see close to a $1 trillion gain next year."
Distressed homes³ - foreclosures and short sales sold at deep discounts - accounted for 24 percent of October sales (12 percent were foreclosures and 12 percent were short sales), unchanged from September; they were 28 percent in October 2011. Foreclosures sold for an average discount of 20 percent below market value in October, while short sales were discounted 14 percent.
Total housing inventory at the end of October fell 1.4 percent to 2.14 million existing homes available for sale, which represents a 5.4-month supply ⁴ at the current sales pace, down from 5.6 months in September, and is the lowest housing supply since February of 2006 when it was 5.2 months. Listed inventory is 21.9 percent below a year ago when there was a 7.6-month supply.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 3.38 percent in October from 3.47 percent in September; the rate was 4.07 percent in October 2011.
NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., said record low mortgage interest rates shouldn't be taken for granted. "Even with rising home prices, we'll continue to see favorable housing affordability conditions over the coming year, but they won't last forever," he said.
"Inflationary pressures are expected to build during the next two years. As a result, mortgage interest rates will also rise with inflation. Buyers who are currently held back by tight mortgage credit standards should work to improve their credit scores so they'll be able to qualify for a mortgage while conditions are still favorable."
With stringent mortgage underwriting standards, Thomas said it's very important to understand credit issues and how credit scores work. "Realtors ^® are a good source to learn about lenders with more reasonable terms and ways to increase your likelihood of obtaining safe and sound financing. Buyers can also visit NAR's consumer website, Houselogic.com, and search for 'credit score.'"
The median time on market was 71 days in October, little changed from 70 days in September, but down 26.0 percent from 96 days in October 2011. Thirty-two percent of homes sold in October were on the market for less than a month, while 20 percent were on the market for six months or longer.
First-time buyers accounted for 31 percent of purchases in October, compared with 32 percent in September and 34 percent in October 2011.
All-cash sales were at 29 percent of transactions in October, up slightly from 28 percent in September; they were 29 percent in October 2011. Investors, who account for most cash sales, purchased 20 percent of homes in October, up from 18 percent in September; they were 18 percent in October 2011.
Single-family home sales rose 1.9 percent to a seasonally adjusted annual rate of 4.22 million in October from 4.14 million in September, and are 9.6 percent above the 3.85 million-unit pace in October 2011. The median existing single-family home price was $178,700 in October, which is 10.9 percent higher than a year ago.
Existing condominium and co-op sales rose 3.6 percent to a seasonally adjusted annual rate of 570,000 in October from 550,000 in September, and are 21.3 percent above the 470,000-unit level a year ago. The median existing condo price was $177,500 in October, up 11.7 percent from October 2011.
Regionally, existing-home sales in the Northeast fell 1.7 percent to an annual pace of 580,000 in October but are 13.7 percent above October 2011. The median price in the Northeast was $232,600, which is 4.6 percent above a year ago.
Existing-home sales in the Midwest rose 1.8 percent in October to a level of 1.11 million and are 18.1 percent above a year ago. The median price in the Midwest was $145,600, up 10.6 percent from October 2011.
In the South, existing-home sales increased 2.1 percent to an annual pace of 1.92 million in October and are 11.0 percent higher than October 2011. The median price in the South was $152,200, which is 8.2 percent above a year ago.
Existing-home sales in the West rose 4.4 percent to an annual level of 1.18 million in October and are 3.5 percent above a year ago. With much tighter inventory conditions, the median price in the West was $242,100, up 21.2 percent from October 2011.
The National Association of Realtors^®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

BUYERS BEWARE

If you are in the market to buy real estate, get your bank in order because when it comes to closing a loan, Time is Money.  Lender requirements may be daunting but being prepared and providing the necessary documents as timely as possible keeps the process on schedule to close on time.

One thing your lender will require are bank statements from your checking and savings accounts.  Keep these tips in mind:

1.  All pages of the statements are required.  If the statement consists of 8 pages and page 8-8 is blank you still need to include it.

2.  A printed online summary is not acceptable.  The bank statement must contain the name and address of the banking institution, the name of the account holder(s) and the account number(s).

3.  If the account is joint with someone not on the loan, then send a signed and dated letter from the non-borrower stating that you (the borrower) have full access to the account.

4.  If you have made transfers into your account from another account then two months statements from that account will be required as well.

5.  Non-payroll deposits must be documented with copies of the actual checks which were deposited, as well as an explanation of the source.

6.  If you have ANY check return or NSF fees on your bank statement send a signed and dated letter of explanation for each.

7.  Make sure your Earnest Money (EM) check has cleared the bank.  The EM cannot be listed as a credit on the HUD at closing unless it has cleared.  A copy of the front and back of the cancelled check, as well as the bank statement showing where the money cleared the account will document this.

The process from contract to closing can be confusing, and difficult to understand at best.  However, if you comply with the lender's requests as quickly as possible you will be enjoying your new home on schedule.

I would be honored to help you with your next real estate purchase. 

4 Strong Reasons to Buy a Home Now

 

Daily Real Estate News | Monday, August 13, 2012

“It’s hard to argue against buying a house now, assuming you can get a loan,” writes John Waggoner, a columnist with USA Today. Sure, Waggoner says that getting a credit check for approval of a mortgage can be a “only slightly less intrusive than a CIA background check,” but for those who are able to qualify, a lot of analysts say that now can be a good time to purchase a home.
1. The price is right. The median single-family home price hit its lowest in more than a decade when it reached $154,600 in January, according to the National Association of REALTORS®. That was the lowest since October 2001. During the height of the housing market in July 2006, the median home price for a single-family home was $230,900.
2. It’s cheaper to buy than rent. In nearly every major metro market, it is cheaper to buy a home than rent. Rents have been on the rise the last few years and are predicted to continue to rise. Meanwhile, home affordability is at record highs, which means that buying a home is more within reach to the median income family.
3. Inventories of for-sale homes are shrinking. Ned Davis Research estimates that excess inventories of homes to be eliminated by the end of next year. “When excess supply dries up, people start building more new houses, which has the virtuous effect of reducing the unemployment rate and increasing the economy generally,” according to the USA Today article.
4. Mortgage rates are at record lows. Mortgage rates have hovered near record lows for weeks, which has helped pushing housing affordability higher. For example, the average 30-year fixed-rate mortgage, which is the most popular among home buyers, is 3.59 percent, according to Freddie Mac—just above its record low set on July 26 of 3.49 percent average. “It’s conceivable that at some point in the next 30 years, your interest rate would be less than the rate of inflation,” writes Waggoner for USA Today.

Clemmons West Home Sales First Quarter 2012

In the first quarter of 2012 more than 25% of the inventory in Clemmons West was sold.  The details of these four home sales are outlined below.  You will note that the days on market represent less than four months. 

Spring is a great time to market your home.  Families love to move during the summer months before school gets back in session.  If you've been thinking about listing your home for sale please give me a call.  I will provide a free Comparative Market Analysis to show you the value of your home and help you with every step of the process.  With over 600 homes in the neighborhood there are currently only 16 on the market.

Clemmons West remains a very desirable location for families in Forsyth County.  Give me a call today!

Address	Closing Price	Date Closed	Days on Market
3621 Edgemoor Ct	$     260,000.00	1/13/2012	85
7031 Bridgewood Road	$     232,000.00	1/30/2012	104
734 Barrocliff Road	$     215,001.00	2/22/2012	13
3680 Tanglebrook Trail	$     204,000.00	2/23/2012	97

Information from Triad MLS.

More on the Mortgage Interest Rate Deduction

press release

April 11, 2012, 4:10 p.m. EDT

Mortgage Interest Deduction Softens Blow as “Tax Day” Approaches

WASHINGTON, Apr 11, 2012 (BUSINESS WIRE) -- With the April 17 tax-filing deadline right around the corner, the most important tax deduction for tens of millions of middle-class families could be on the chopping block as early as next year’s tax season if some policymakers get their way.
“The mortgage interest deduction has been in existence since the inception of the federal tax code nearly 100 years ago and is a cornerstone of U.S. tax and housing policy,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla.
“With many local housing markets across the nation just now showing signs of a long-awaited spring thaw following the worst downturn in decades, protecting the mortgage interest deduction and promoting tax policies that will keep homeownership affordable is very important to create jobs and keep the economy moving forward,” he added.
The deduction is broadly used across income groups and geographic areas. Data from the Joint Committee on Taxation indicate that more than 33 million families benefitted from the deduction in 2010 and that these households saved a collective $83 billion on their tax bills.
Though the mortgage interest deduction is the primary reason that taxpayers become itemizers, critics have unfairly attacked it as a tax loophole (despite the fact that more than 33 million households claim it) and a subsidy to the rich.
Here are the facts. The mortgage interest deduction primarily helps middle class home owners and is consistent with the principles of a progressive income tax. Two-thirds of the benefits flow to working class American households who earn less than $200,000 annually and nearly all those who own a home of their own will claim the deduction at some point during their tenure as home owners.
NAHB research has shown that as a share of household income, the deduction is most important for younger home buyers, who typically have less equity, tighter household budgets and are paying mostly deductible interest and relatively little principal.
“The American people understand that curtailing or getting rid of the deduction to help lower the federal debt would result in a big tax hike on millions of middle-class home owners and that prospective buyers who are counting on its benefits to lower their monthly mortgage payments would remain on the sidelines,” said Rutenberg.
The collateral damage to the economy would be even more devastating, resulting in lower home values, which would leave more home owners underwater, trigger more foreclosures and prolong the housing slump for years to come.
Changing the rules now would not only take money out of the pockets of those home buyers who rightfully counted on the deduction being there when they needed it, but also penalize millions of baby boomers nearing retirement and seniors who own their homes outright.
Those looking to use the proceeds from their home to move into a retirement community, help defray health care costs or to fund other long-term obligations may find that declining home values will shrink their retirement nest egg and force them to keep working and stay put because they can’t afford or are unable to sell their current home.
Yet, there are critics who still suggest that the mortgage interest deduction should be weakened or even abolished in order to raise tax revenues for the federal government, a minority view that flies in the face of public opinion.
A New York Times/CBS News poll conducted last summer reveals that nine out of 10 Americans oppose eliminating the mortgage interest deduction and a nationwide survey of likely voters commissioned by NAHB earlier this year shows that 73 percent oppose abolishing the deduction.
Further, the NAHB poll found that three out of four voters believe it is appropriate and reasonable for the federal government to provide tax incentives to promote homeownership and 68 percent would be less likely to vote for a congressional candidate who proposed to eliminate the deduction, a sentiment that cut across party lines.
“Raising taxes on the nation’s home owners is clearly not the right answer to resolve our nation’s fiscal woes,” said Rutenberg. “Such an ill-advised action would devalue housing, lead to massive job losses and derail the fledgling economic recovery.”
ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 140,000 members involved in remodeling, home building, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.
Follow NAHB on Twitter at www.twitter.com/NAHBMedia .
SOURCE: National Association of Home Builders