Real Estate Headlines - 22 - Worth of Attention...

2012 Best Home Sale Year in Five Years

source: money.cnn.com

According to the National Association of Realtors (NAR, graph right,) December 2012 sales (of previously-owned homes) pace was was down slightly but up 12.8% from one year ago. 2012 was 9% ahead of 2011 for the entire year. The same contributing factors we see month-after-month are attributed to the home sales improvement - record low mortgage rates, lower unemplyment, and lower home prices that are now on the rise.

Can the Housing Market Predictors Get It Right?

source: blogs.wsj.com

Few economists and housing market analysts at the beginning of 2012 foresaw the magnitude of the housing market rebound. A December 2011 survey of 94 panelists predicted the following: 42 said 2012 would be flat or rise with regard to prices; the most aggressive predicted a 4.4% gain; four others predicted a 3% gain; and the most pessimistic predicted 10% declines in prices.

According to the Case-Shiller 20-city composite index, 2012 posted price increases of 4.3%.

What's on tap for 2013? The majority of more than 100 economists and analysts predict prices will increase 3%. Of those that made their predictions public (96) only 7 believe a 1% decline, and the most optimistic predict 7.2% gains. Mr. Shilling is the most pessimistic calling for a 6% decline in prices.

Appraisals for Refinance and New Purchases Dont's Catch up Quickly

source: bob pisa

In stable market predictions are much easier and so are property valuations. When a declining or increasing market, not so easy. The market is moving.

We are now in an increasing price market. Appraising a property based on recent history does not fairly represent the "new market" which is influenced by the current state of the inventory - supply and demand. A home appraisal based on historical values will tell you just that, what your home was worth a few month ago.

Before you have an appraisal done, be sure your real estate professional provides all the relevant local data to the appraiser including details of recent property improvements.

In Leesburg, Florida, for example, low appraisals have caused the cancellation of as many as 15 percent of home sales for local real estate broker Gus Grizzard. (source: reuters.com 22-January 2013 article Lou Carlozo)

Improve Your Home's Sellability 

source: investorpedia.com

Neutrality... repaint the extreme colors. The buyer's taste may not be yours. Same goes for wall paper, fixtures, wild drapes, carpet, pillows...etc.

Less Is More... Sellers are selling and buyers are buying square footage. Show as much of it as you can. We hear "de-clutter" over and over, just do it.

Smells... Strong smells and odors can put people off the minute they walk in from cooking, the trash, a pet, pet food, old tired carpeting...etc. Fresh paint isn't he most pleasing but everyone recognizes it as "clean and new."

Attention to Details... Don't undertake major remodeling projects for the purpose of selling. Spruce up and fix up with less costly tweaks like new cabinet and door hardware.

Curb Appeal... As they say, there's only one opportunity to make a first impression. Make a good one. Paint the front door, clean-up the whole entry area, and fix-up the landscaping.

Don't Get Personal... De-clutter... newspapers, magazines, the laundry, shoes. Remove all personal items, is there a refrigerator behind all that magnetic stuff stuck to it? Put away all family photos.

Don't Ignore Simple Repairs... The home inspector will provide the buyer a list of items that need to be fixed. Your sales contract may not obligate you to fix all those items. Nevertheless, the buyer will ask. Will you say no? Just get on with it and fix it now.

Real Estate Shifts Into High Gear 

source: seekingalpha.com

The latest housing start date for December 2012 shows new starts running at 954,000 new units well ahead of the consensus forecast of 887,000 and also ahead of November's starts of 851,000. The multi-family sector was particularly strong.

Stock investors must agree all the major nationwide builders fairing very well according their stock prices and recent performance trends.