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NAR conceded that there may be an "upward drift" in their figures since the housing market collapsed a few years ago.  Some economists believe the datat could be inflated by as much as 20%.  But, Walter Malony, an NAR spokesman says the data is still accurate and that "In terms of broad market characterizations, it's really not that big of a deal,".   REALLY?

The latest absorbtion rate figures released by NAR show that the maket has 8.6 months of inventory nationally.  This figure assumes an annual sales rate of 4.88 million homes.  Most industry experts agree that a balanced buyer/seller market is attained when there are 6-8 months of inventory available.  More inventory would sway in the buyers favor, less would favor a seller.  CoreLogic, a private research firm that tracks county real estate records across the country, says the annual sales rate is much closer to 3.6 million homes.  That would put the supply numbers in the 17 month range.  Obviously that's a significant difference.

So, who's right?  If the NAR numbers are off as far as some parties think, then the recovery is definitely at risk.  The inflated figures could repress home values further by providing an unrealistic market value for recent sales and could push prices lower still.  

NAR's figures, like most economic models, are based on data samples.  Getting a more fine-tuned number would require several extra months of research and would not allow for timely releases of reporting.  The "Existing Home Sales Report, only polls about 4 out 10 members nationally and compares that to national MLS figures.  There was a "benchmark" factor based on Census data that is now defunct due to the removal of several housing-related questions from the most recent count. 

One factor in particular, not included in NAR's model, stands to skew figures in and of itself.  There is no correction made for a brokerage that has taken on smaller firms or competitors during the downturn.  Just because their numbers rose, doesn't necessarily mean there were more sales in that market, just that the brokerage significantly expanded their sales forces.

Let's hope they get this sorted out sooner rather than later.  The reporting they are responsible for is watched closely across a broad range of industries.

 

Thoughts?

 

 

 

 

 

 

 

 

 

 

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Neutral throughout to allow for your decorating ideas w/out too much work*First floor master*Plenty of 42 inch cabintry in the kitchen*Open lay-out*Very generously sized bedrooms*Formal dining space*Dedicted office*Neighborhood features a pool, tennis, walking trails*SOLD AS IS*

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May your day be touched
by a bit of Irish luck,
brightened by a song in your heart,
and warmed by the smiles
of the people you love.

 

Definitely one of my favorite days of the year!! Closing up shop early today to go celebrate with some good friends.  It's good to blow off some steam every now and then.

 

HAPPY ST. PATTY'S DAY!!!!

 

 

Over the last 50 years, only one other single month fared as badly as February did for new home starts.  The seasonally adjusted number of 479,000 was a 22.5% fall from last month.  The total was only higher than April of '09.

Again, these numbers represent the backlog of distressed properties on the market and the unwillingness of new buyers to enter the market for fear of further pricing declines.

How can I improve the value of my property?

Outside of a homeowner's control, the biggest factor is market conditions. Other important issues are:

• condition of the property
• specific home improvements
• neighborhood stability and safety

The greatest rise in home prices occurs when the economy is strong and the number of home sales is increasing. Specific home improvements can increase the value above the cost of the improvements.

• remodeled bathroom returns, 81 percent to the owner
• bathroom addition, 89 percent
• master bedroom suite, 82 percent

Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.

The safety and security of a neighborhood can affect property values, too. If you live in a high-crime area, an organized community watch program not only will lower the crime rate but give home values a boost, too.

How can I increase the value of my property?

Specific home improvements can increase your property value above the cost of the improvements themselves, such as remodeling a kitchen, adding a bathroom, finishing a basement or upgrading landscaping. Just be sure that quality pays with remodeling. A bad remodeling job will do little to boost your property value.

If you live in a high-crime area, an organized community watch program not only will lower the crime rate but can enhance property values, too. It also helps to live in an area where other homeowners are upgrading their homes, which can help pull up your property value, too.

The bottom line is to measure the cost of any improvements you want to make against the overall values in your neighborhood. If you over improve for the neighborhood, you may not necessarily recover your costs or boost your property value significantly.

Will buying a bigger home increase my profit?

Consider these questions before making a choice between adding on to an existing home or moving up in the market to a bigger house:

• How much money is available, either from cash reserves or through a home improvement loan, to remodel the current house?
• How much additional space is required? Would the foundation support a second floor or does the lot have room to expand on the ground level?
• What do local zoning and building ordinances permit?
• How much equity already exists in the property?
• Are there affordable properties for sale that would satisfy housing needs?

Ultimately, the decision should be based on individual needs, the extent of work involved and what will add the most value.

 

How do I find out how much my home is worth?  CLICK HERE

A comparative market analysis and an appraisal are the standard methods for determining a home's value.

Your real estate agent will be able to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood. Be sure you get listing prices of current homes on the market as well as those that have sold. You also can research this yourself by checking on recent sales in public records. Be sure that you are researching properties that are similar in size, construction and location. This information is not only available at your local recorder's or assessor's office but also through private companies and on the Internet.

An appraisal, which generally costs $200 to $300 to perform, is a certified appraiser's opinion of the value of a home at any given time. Appraisers review numerous factors including recent comparable sales, location, square footage and construction quality.

What are the differences between market value and appraised value?

The appraised value of a house is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 to $300.

Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker. Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth.

How do homeowners associations work?

Learn everything you can about the homeowners association before you buy into a development governed by one. The association's financial, political and legal conditions are very important to your investment and quality of life.

When run properly, homeowners associations maintain the common grounds and keep civility in the complex. If you follow the rules, the association should not intrude on your privacy or cost you too much in association dues.

Poorly managed associations can drag down property values and make living there difficult for residents. Start by studying the association’s covenants, codes and restrictions, or CC&Rs, and find out if you can live by them. For example, if the rules prohibit loud music after a certain hour and you like to play your music late at night, this may not be the place for you. Don't move in thinking you can get away with violating the rules or change them later because you may find yourself in turmoil with determined neighbors firmly in control of the association board.

Find out all you can about the association's finances. Beyond reviewing the budget, talk to the association treasurer and find out if dues are expected to increase and if any special assessments are planned. Ask if special inspections have revealed problems with roofs or plumbing that may cause a dues hike or special assessment later on.

Call and meet with the association president. If you are the type of person who despises intrusions into your private life and the president seems more interested in gossip about the residents than maintaining the property, this may not be the right condo complex for you.

Speak with residents to get their views on the association's finances, its property manager, how it operates and any politics. Associations are volunteer organizations with elected boards, like a mini-government, so politics can enter the picture and spoil a good thing.

Lastly, take some time to understand how homeowners associations are organized and how they conduct business. Like all real estate investments, the more you know the better off you are.

 

In a part of our industry that is notorious for poor communication, mismanaged files and the like, I've found that lately the short sale processors and negotiators are becoming much more proactive in their approach to the file/deal.  Just in the last couple weeks, I've been contacted by Citi, B of A (I know, amazing right?) and a small lender out West called Vericrest.  All of the reps from these institutions called me very early on in the process to let me know they were assigned to the file and to give me updates on required docs or the number to their direct line and thier email address(es).

Now I don't know how much it will help our timeline, as none of the aforementioned deals are that close to closing, but it's good to have the direct and open communication.  Being in touch with your seller/buyer's agent often and with updates is an integral part of getting short sale files closed.  It's the ones that linger for weeks at a time with no new news from the lender that make the deals fizzle out.  

Let's hope this positive trend continues as there are millions more families out there to help, and with the lender/servicer on board early, there's a much better chance of getting these files closed and helping our clients move on with their lives.

 

Are you seeing much of the same?

 

 

 

Mortgages The modern mortgage market offers a variety of mortgage loans catering to the needs of homebuyers. The titles and details of these plans can become confusing, especially as new types are introduced continuously. You can make sense of these loan types, however, if you understand the basic principles that govern all mortgage loans.  Again, you can look to your real estate professional for assistance. Basic Principles of all Mortgage Loans The home is used as security to back up the loan. A lender can force sale of the home if the borrower defaults by failing to make scheduled payments. The larger the loan compared to the value of the home, the more risky for the lender and, often, the more expensive the loan will be. Interest earned by the lender always is equal to the periodic interest rate times the outstanding principle balance of the loan. The periodic interest rate is the annual interest rate divided by the number of payments in the year (usually one per month). The required payment usually is a bit larger than the interest due so that some of the loan principal is repaid with each payment. This process is called Amortization and is why most mortgage loans can be retired when all the monthly payments have been made. All mortgage loans have one of the following features: Fixed payment and fixed interest rate - fixed rate mortgages Fixed rate but variable payment - graduated payment mortgages Variable rate and variable payment - adjustable rate mortgages As you learn more about the types of financing available, you will notice that some loans appear to have more favorable terms. That may indicate that those loans are, indeed, bargains (and it does pay to shop around), but usually it means that those loans could have some feature that is less appealing to borrowers. For example, shorter-term loans often have slightly lower interest rates compared to longer-term loans. However, the monthly payment for the same amount of principal may be higher because of the shorter term. Variable rate loans usually have much lower interest rates to compensate for the risk the borrower accepts that interest rates will rise in the future.

 

This isn't the first occasion.  More than once, I've impressed potential clients with the speed of the lead generation technology we're presented with at RE/MAX.  When a consumer signs up on my website, a text message with the consumer info (name, phone #, email) is instantly generated and sent to my cell phone.  

I call every lead back right away.  And when I say right away, I mean within mere moments from receiving the lead.  This morning a lead came through and I called the number that was registered.  (Now, I've found, like I'm sure you have, that not all phone numbers are valid - but the vast majority are.)  The prospect was still on my website!!  Needless to say, she was impressed.  I was able to quickly pull up the MLS and answer a couple questions about a listing she was interested in.  After the usual qualification questions, we are meeting tomorrow afternoon to go look at the listing in question, plus a few others.

Online lead follow-up is critical.  Some agents rack up prospects, but have no idea how to turn them into closings.  I'm consistant with the follow-up process and take good notes within the lead generation system.  Evey task is assigned a date to get back in touch by phone - never outside of 2 weeks, even if they're months away from purchasing/listing - and they are registered for my monthly eNewsletter and either the buyer or seller drip email drip campaign.  

Even if they're months out, I want to maintain priority "MindShare" and make myself a resourse for  the process.