Archive for the 'Real Estate News' Category
Real Estate Outlook
May 6th, 2010 categories: Real Estate News
Real Estate Outlook: The Federal Reserve
What should we make of the latest reports on rising home sales and the Federal Reserve’s promise to keep interest rates low indefinitely?
Should we worry that at least some of the sales are being pushed forward by the expiring tax credits? Though that may be the case, take a minute and join the economists at the Fed to see the bigger picture. What’s going on in the economy nationwide?
In its “open markets committee” statement issued last week, the Fed pointed to the underlying positives: Overall national “economic activity continues to strengthen,” it said, and “the labor market is beginning to improve.” Of course there are challenges to keeping the rebound rolling along, but the direction for the year as a whole is good.
The Fed’s statement provides useful context for some of the encouraging numbers being racked up in the housing market. For example:
The Commerce Department reported last week that new home sales in March were up by 27% -hitting their highest levels since July of 2009. Even the median sale price was up by 4.3 percent compared with the same month the year before.
Home resales in some major markets were up impressively as well, such as in Chicago, where sales jumped by 50% last month over the year before, and were 48% higher than they were in February. Florida sales were 37% higher in March than February and were up by 24% compared with the year before. Las Vegas saw its highest sales totals in four years.
Not surprisingly, applications for new mortgages to purchase homes have been rising strongly as well. The Mortgage Bankers Association reported a 12 percent surge in purchase applications for the latest week. No question the expiring tax credits requiring signed contracts by April 30th played a role in that number.
Meanwhile, the National Association of Business Economics, a group that represents corporate and government economists, just came out with an upbeat forecast as well. Three-quarters of the economists surveyed expect growth in the national gross domestic product (GDP) of two percent or higher through the balance of the year.
Twenty-two percent of the private companies polled reported their payrolls and employee numbers increased in March, up significantly from the month before.
So the bottom line to keep in mind about the latest statistics and projections is this: The underlying economic factors, growth in jobs, growth in output, rising consumer expenditures and confidence, are the critical numbers to watch for future housing activity.
And at the moment, the consensus is that they look pretty promising!
courtesy of Today’s Local Market Conditions Report: Yahoo! Real Estate
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Real Estate Outlook: Signs of Recovery
April 28th, 2010 categories: Real Estate News
We have rock solid evidence that the housing market as well as the national economy are in recovery mode:
Sales of existing single family homes jumped by 7.3 percent in March, according to the National Association of Realtors survey released last Thursday, and were 13 percent above year-earlier levels.
Median home prices were up as well, despite the heavy presence of foreclosures and short sales being pumped into the listing inventory. Median single family prices were up by 9% year over year in the Northeast region, and by about 7 percent in the South, Midwest and the West.
Meanwhile, unsold inventory dropped by two percent in March, and is now 22 percent below its peak in July 2008.
Lawrence Yun, chief economist of the National Association of Realtors, said the recovery is now “broad” and unmistakable “in nearly every part of the country,” thanks in part to improvements in the national economic outlook and the spur to sales being exerted by the expiring housing tax credits.
Home builders are clearly getting the upbeat message about the recovery as well. March single family housing starts rose by 1.6 percent to their highest level since November of 2008.
New permits- a gauge of where builders expect market demand to be 6 months or more down the road- were up by seven and a half percent for the month, and are 34 percent higher than they were in March 2009- the biggest year over year gain in permits since 1992!
The latest weekly measure of new home purchase loan applications, compiled by the Mortgage Bankers Association, jumped by 10 percent- which is attributable in part to the April 30 contract deadline for the $8,000 and $6,500 federal tax credits.
Consumer confidence and expectations about the national economy also are on the upswing, up by 6 points last month, according to the Conference Board. The board’s widely watched index of leading economic indicators registered a gain of 1.4 percent for the month.
Fannie Mae’s economics department issued its forecast for the balance of the year last week- and the tone was moderately optimistic. Fannie projects national economic growth- as measured by the gross domestic product or GDP- to gain about 3.1 percent this year.
Bottom line this week: Think positive! Because that’s where we’re headed in real estate and the economy overall. Today’s local Market Conditions Report. Courtesy of Yahoo! Real Estate and K. Harney
P.S. Don’t forget to become a fan of Kathy Villa Real Estate on Facebook by following the link on the left. We look forward to connecting with you!
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The Internet is No Match for Real Estate Agents
April 18th, 2010 categories: Buyers, Real Estate News
Agents still outperform the Internet, say buyers!
According to the 2009 Profile of Home Buyers and Sellers from the National Association of REALTORS, home buyers find real estate agents as the most useful information source. They may access the Internet more often, said 76% of home buyers in 2008, but they also went to real estate agents for information (68%)
This year, buyers needed more help. Inventories were higher across much of the nation, requiring more time to sort. For example, in 2001, buyers spent 7 weeks searching for homes, while in 2009, they spent 12 weeks.
Experienced home buyers spent only two weeks searching for homes before contacting an agent and found their new home within 10 weeks.
In addition, market conditions were challenging to home buyers, which is one reason why retaining a real estate agent remain important.
At least 13% of home buyers reported that they had a purchase agreement that was cancelled, terminated, or fell through.
Also, foreclosures saturated the market, requiring expertise in negotitations, loan origination, and more. Thirty percent of home buyers purchased distressed homes in the third quarter of 2009. Nearly half of home buyers considered buying a home in foreclosures but didn’t because they couldn’t find the right home, the process was too difficult, or the home was in poor condition, among others.
One figure that has improved dramatically is the use of the Internet by home buyers, up to 90% in 2009 from 71% in 2003. This improvement can also be attributed to real estate agents and their service providers, who make information about homes much more available, including multiple photos, videos, neighborhood information, and more. For that reason, home buyers turned to real estate agent web sites, texts, email alerts and other Internet-based technologies to search for homes.
Overwhelmingly, home buyers used multiple listing service websites (60%), real estate company websites (46%), Realtor.com only receives its listings from MLS services and real estate brokers) and real estate agent websites (45%).
Home buyers most often found the home they purchased through a real estate agent while 35% found their home through the Internet. Finally, 79% of home buyers purchased a home through a real estate agent.
In 2008 and 2009, home buyers found the home they ultimately purchased through their real estate agent, more often than on the Internet. If you or someone you know is looking for an experienced real estate agent, feel free to call or email me. Also please become a fan of Kathy Villa Real Estate by clicking the link on the left. We’d love to connect with you!
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10 Time-Saving Tips to Take the Stress Out of Moving
April 12th, 2010 categories: Buyers, Real Estate News
When it comes to moving, a little preparation goes a long way. Experience tells me that tons of time and energy can be saved by planning ahead, staying organized and focusing on details.
Here are 10 great time-saving tips to make moving fast and efficient, courtesy of FrontDoor.com:
1. Making a moving schedule. Starting 60 days before the move, use a week-by-week checklist to keep the process on track. The tasks to accomplish further from moving day might seem trivial at first, but staying on schedule will prevent last-minute headaches.
2. Hire a quality moving company. Resist the temptation to hire a company that offers a too-good-to-be-true rate. An unreliable mover will cost time and money in the long run if items are lost or broken. Check out moving company credentials with the Better Business Bureau and the Federal Motor Carrier Safety Administration.
3. Pare down your possessions. If an item won’t be used in the new home, don’t waste time packing it. Notorious clutter items- unread books, unfinished projects and half-empty cleaning products- are prime targets to leave behind.
4. Pack like a pro. Come up with a packing system so all boxes end up in the right rooms when they get to the new home. One option is to buy a set of magic markers and create a “color code” system for the movers- red-labeled boxes for the living room, blue for the kitchen, etc. On moving day, draw a floor plan of the new place with each room labeled and give it to the movers.
5. Make the house move-out ready. Most movers won’t disconnect anything that’s hard-wired, so unplug all the appliances and lighting fixtures that go. Make sure all paths are clear from the house to the moving truck. Speed up the process by knowing the ground rules for what movers will and won’t do.
6. Stock up on packing supplies. Don’t run out of packing tape the morning of the move; have plenty of supplies on hand. Early on in the moving process, start gathering boxes, tape, bubble wrap, newsprint, box cutters and markers. Try to save time and the environment by packing with materials you already have. Load up suitcases and plastic containers and use pillows, scarves and towels to “wrap” fragile items.
7. Pack a moving survival kit. Don’t throw everyday essentials like ID and medicine in with other belongings, only to have to dig through boxes later. Instead, pack a “last-to-go” box with all of the necessities- toiletries, snacks, important documents- and keep it with you instread of packing it in moving truck.
8. Spruce up the new home before moving in belongings. It’s easier to clean, paint and make improvements while the new home is still empty. Before hauling in all the furniture and boxes, be sure to vacuum, dust baseboards and wash the kitchen and bathroom floors.
9. Map out the new floor plan. Decide how to arrange the furniture before moving it into the new place. The best way to do this is to make paper cutouts of the furniture. Measure the dimensions of the piece and tape together newspaper pages to match the “footprint” of the furniture. It’s much easier to reshuffle newspaper than all that heavy furniture.
10. Change the address and notify companies before the move. Completing a change-of-address form before you head out can prevent hassles such as past-due bills, service lapses and even identity theft. Schedule dates in advance to discontinue utilities, phone, cable and internet, and arrange for these services at the new address.
From start to finish, the moving process can be very stressful. Why not make it easier by following a few, simple steps. If you would like to receive more tips, such as these, please email me and be sure to become a fan of Kathy Villa Real Estate on Facebook.
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Top 10 Most Luxurious Golf Homes for Sale
April 8th, 2010 categories: Buyers, Real Estate News
As everyone gears up for the media frenzy centered around the return of Tiger Woods at The Masters in Augusta, TopTenRealEstateDeals.com has put together a list of the top 10 most luxurious golf homes:
1. Jim Furyks Hawaii Home- 229 Plantation Club Drive, Maui, HI
2. Lakeside Elegance At Teton Pines- Teton Pines Resort, Wilson WY
3. Hilton Heads Finest- 23 Atlantic Pt #12, Hilton Head Island, SC
4. Live in Paradise- 4928 E. Cottontail Run Road, Paradise Valley, AZ
5. Private French Inspired Estate- 1 Premiere Point, Newport Coast, CA
6. Bridgehampton North Estate- Bridgehampton North, Bridgehampton, New York
7. 18th Fairway Pebble Beach- 1544 Cypress Drive, Pebble Beach, CA
8. Private Riverfront Neo-Classical Sourthern Estate- 5100 Old Alabama Road, Johns Creek, Georgia
9. 18th Tee At Hawaii- 222 Plantation Drive, Lahaina, HI
10. A Modern Texas Contemporary- 21 Grand Manor, Sugar Land, TX
For a closer look at these homes visit www.toptenrealestatedeals.com. If you’re interested in buying one of these or any other home in the Los Angeles area be sure to call or email me with your questions.
P.S. Also check out my listing featured in Forbes and hinted to make a great pad for Tiger himself. What do you think? Your comments are always welcome!
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Tips for Securing an Accurate Appraisal
April 7th, 2010 categories: Real Estate News, Sellers
When it comes to buying or selling property, a successful outcome often hinges upon an accurate appraisal. Unfortunately, due to unrest in the appraisal industry sparked by government guidelines imposed by the Home Valuation Code of Conduct (HVCC), securing an accurate appraisal can be hard to come by these days. Colleagues have shared many a horror story about an appraisal gone wrong and a client that’s left to pay the price.
I’ve learned that there are steps you can take to help ensure an appraisal accurately reflects the home’s value. Consider the following advice:
1. Keep it local. Inaccurate appraisals are often the result of the current practice of using an appraiser who is unfamiliar with your community… sometimes, they’re even coming from another state! Talk to your agent and/or lender and insist that the appraiser involved is local and, therefore, understands home values in your neighborhood.
2. Utilize comps. Make sure your lender and appraiser are accurately leveraging comps (comparable market sales) of local properties sold within the last six months to help appraise your home. Your real estate agent can help in this area.
3. Put your best foot forward. If you are selling your home, make sure it’s in the best possible shape before the appraiser visit. Invest in any necessary repairs and effective cosmetic changes. Consider how your home stacks up against other homes in your neighborhood and let that be your guide.
4. Review carefully. Review the appraisal thoroughly to make sure all the basic facts are correct: square footage, features of the home, number of rooms, etc. If you find mistakes, call the appraiser and ask to have them corrected. If the appraiser refuses to make the corrections, file a complaint with your state’s real estate appraisal board.
5. Don’t settle. You are not bound to accept the appraisal results. Both buyers and sellers can request a new appraisal. There is no guarantee that the bank will accept the new appraisal, but it can be used to challenge the first appraisal.
An honest, accurate appraisal can make all the difference in your real estate transaction. Follow the above steps and please email me for more details. I encourage you to share this information with your social network and please join our Facebook Fan page on the left!
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How to Save Money on Your Homeowners Insurance
April 5th, 2010 categories: Money and Mortgages, Real Estate News
In today’s economy, homeowners need to save money wherever possible. If you’ve been the victim of damage this winter, thanks to Mother Nature, you may be confronting the not-so-pleasant, realities of your homeowners’ insurance policy. From high deductibles to lack of coverage to rising rates, many homeowners have been left to foot a big- unexpected bill.
Here are some of the ways you can save money when it comes to homeowners insurance. For starters, you may be able to save hundreds of dollars a year by shopping your homeowners’ policy around, so please email me if you need a referral or two. Also, here are some great, money-saving ideas from the Federal Citizen information Center:
* Increasing your deductible is an easy way to save money on a monthly basis. Even raising it by just a few hundred dollars can make a big difference in your premium.
* Ask your insurance agent about discounts. You may be able to get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire-retardant roofing material. Long-term customers and those over age 55 may also be offered discounts.
* Insure your house, not the land under it. After all, your land will still be there even if your home is damaged. If you don’t subtract the value of the land when deciding how much homeowners’s insurance to buy, you will pay more than you should.
* Don’t wait until you have a loss to find out if you have the right type and amount of insurance. Discuss with your insurance agent exactly what types of damage are covered, including natural “acts of God.” Many homeowners are caught off guard by this loophole.
* Purchase enough coverage to replace what is insured. “Replacement” coverage gives you the money to rebuild your home and replace its contents. An “Actual Cash Value” policy is cheaper but pays only what your property is worth at the time of loss – your cost, minus depreciation for age and wear.
* Consider any special coverage you may need for valuable and/or unique items, such as computers, cameras, jewelry, art, antiques, musical instruments, stamp collections, etc.
* Remember that flood damage may not be covered by a standard homeowners’ policy. If you live in an area prone to flooding, take advantage of the National Flood Insurance Program. www.Floodsmart.gov
Bottom line, make sure you are working with an insurance agent who is experienced and trustworthy. Feel free to share this information with someone you think will find it useful. Also please join our Facebook Fan Page on the left.
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Expand Outdoors, Increase Your Home’s Value
April 2nd, 2010 categories: Home Improvements and Design, Money and Mortgages, Real Estate News, Sellers
With many Americans experiencing a financial pinch these days, there is a growing trend among homeowners nationwide to look to the outdoor areas of their own property for not only relaxation and entertainment value, but to also expand their living space and thereby, increase their home’s value.
Through my national network of leading real estate professionals, I have learned that homeowners across the country are spending more time at home and showing an increased interest in outdoor living areas. By sprucing up your patios, porches and decks, you are making your home more livable now and more attractive to future buyers.
Stylish patios and outdoor rooms with comfortable furnishings and convenient cooking and eating areas provided new opportunities for recreation and relaxing family times. A recent survey by the Propane Education & Research Council, found that 35% of homeowners have a finished outdoor room and 34% say they are planning to design one in the next year or two.
Some of my clients are even foregoing expensive vacations in favor of putting in a swimming pool. The reality is, however, that you do not need to make a major investment to improve your outdoor living areas. Here are 5 quick additions that will make an immediate difference:
1. Outdoor lighting units
2. Gas grills with cooking and food preparation surfaces
3. Outdoor fire pits or fireplaces
4. Patio heaters
5. Mosquito/bug eliminators
In any market, financial planners all agree, real estate is the best investment one can make. Increasing the value of that investment with features that extend and enhance the family living area is always a wise decision. For more information and ideas, feel free to email me and be sure to join our fan page on Facebook if you haven’t already!
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Top 4 Questions Home Buyers Have About the Tax Credit
April 1st, 2010 categories: Buyers, Money and Mortgages, Real Estate News
As the April 15 deadline to file 2009 federal tax returns approaches, the National Association of Home Builders (NAHB) is providing answers to some of the questions home buyers are most frequently asking about the home buyer tax credit.
“NAHB’s website that provides information about the home buyer tax credit, www.FederalHousingTaxCredit.com, has received more than 8 million visits,” said NAHB Chairman Bob Jones, a builder and developer in Bloomfield Hills, Michigan. “We are doing everything we can to make sure home buyers are informed about this outstanding opportunity to benefit from buying a home before it expires April 30.”
Some of the more commonly-asked questions, and the answers, include:
1. How does a home buyer claim the tax credit?
The credit is claimed when the home buyer files or amends their federal income taxes. For qualifying homes purchased in 2009 or 2010, the taxpayer must complete IRS Form 5405 and attach a copy of the settlement statement. In most cases, the settlement statement is a properly executed Form HUD-1.
In circumstances where a HUD-1 is not provided, such as purchasing a mobile home or a newly constructed home, the IRS will accept an executed retail sales contract (mobile homes) or a copy of the certificate of occupancy (new homes).
2. Does the home buyer have to sell their current home in order to qualify for the $6500 repeat home buyer tax credit?
A home buyer does not need to sell their current home in order to be eligible for the repeat buyer credit. They can continue to own both homes, and rent or use their former home for something else, as long as it no longer serves as their principal residence. The taxpayer is required to use the new home as their principal residence, and live in it for at least 36 months, or they will have to repay the credit.
3. Do married couples both have to meet the eligibility requirements in order to claim the credit, even if they file taxes separately?
Both spouses must fully meet all the eligibility requirements for either the $8,000 first-time home buyer tax credit or the $6500 repeat buyer tax credit, regardless of if they file joint or separate tax returns. However, if an unmarried couple purchases a home and only one person qualifies, the eligible person may claim the full credit.
4. Do all home purchases need to be completed by April 30, 2010, in order to be eligible for the credit?
Under the federal law slated to soon expire, a first-time home buyer may receive up to $8000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30,2010 that close escrow by June 30,2010. (This deadline has been extended a year, to April 30,2011 for members of the uniformed services, Foreign Service or employees of the intelligence community who have been on qualified extended duty outside the United States for at least 90 days between January 1,2009 – April 30, 2010.)
Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time home buyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010.
If you found this information helpful or have any questions, I welcome your comments below. Also, please become a Facebook fan of Kathy Villa Real Estate. We’d love to have you!
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The Time to Buy is Now!
March 18th, 2010 categories: Buyers, Money and Mortgages, Real Estate News
No doubt, you’ve heard a lot of negative news about the real estate market lately that has caused you to put any thoughts of moving on hold. I can tell you that just the opposite is true. In fact, I can give you 3 great reasons to put your home purchase into motion:
1. The extension of the 2009 tax credit is approaching it’s deadline of April 30, 2010! This is the incentive for first-time home buyers to get a tax credit of $8,000. Previous home-owners can also take advantage of the $6500 repeat buyer credit too! (Provided they have lived in the property for 5 consecutive years out of the last 8 years)
2. Mortgage rates are still low! Federal Reserve policymakers recently pledged to keep rates low for an “extended period.”
3. Great inventory of homes being offered at the lowest prices in years! Many savvy home buyers are taking advantage of all these great incentives out there. They are taking the most desired and best-priced homes right off the market!
If you or someone you know has been considering purchasing a home; the time is now! Don’t hesitate to email me or call me with any questions you may have. Also visit my Facebook page and click on “Become a Fan.” I look forward to connecting with you!
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