Wednesday, November 28, 2012

USA Today Reports, "Rents to Keep Rising in 2013"


Rents are forecasted to rise nationally 4.6 percent next year, and that’s following a 4.1 percent increase this year, according to the National Association of REALTORS®.
What’s more, rents are expected to continue to climb for the foreseeable future, rising more than 4 percent a year for 2014 and 2015, forecasts Reis, a market research firm. 
“The pendulum has definitely swung back in favor of landlords, not renters,” Ryan Severino, senior economist for Reis, told USA Today.
Rents are rising even more rapidly in some areas. For example, rents in San Jose, Calif., and San Francisco have been climbing at a 13 percent to 15 percent annual rate as of late last year, according to MPF Research. Other metro area seeing rent increases of more than 5 percent by the end of September include Oakland, Calif.; New York; Denver; Houston; Nashville; and Columbus, Ohio, MPF reports. 
The rise in rental costs are causing more renters to consider home ownerships, says Greg Willett, MPF vice president. Mortgage rates are at historical lows and home prices are up, but still way below their 2006 peak. 
Source: “Rents Expected to Climb Steadily, According to Forecast,” USA Today (Nov. 27, 2012)

Data ranks Provo/Orem as fastest growing area in nation

11 hours ago  •  


PROVO -- Hang on, Happy Valley -- the growth roller coaster has left the platform. According to data released by Pitney Bowes Software on Tuesday, the Provo-Orem area ranks first on a list of the nation's fastest-growing metropolitan areas and will remain that way for the next five years.
Both Provo and Orem mayors were not surprised to hear the news, and both noted not only excitement but a desire to maintain what is already established.
"With the two recently announced developments, we anticipate a lot of growth in the downtown area," Provo Mayor John Curtis said. "The demographic is changing. It's not about home ownership anymore."
Curtis added, "This complements precisely our efforts in the downtown area. We're ready to welcome them home. For most of my three years not one residential planner has called. Now things are picking up and developers are calling."
"Wow," Gary McGinn, Provo's community development director, said. "We've been anticipating we'll have fast growth and how we will accommodate that growth while preserving the characteristics of what makes Provo such a desirable place to live."
McGinn added, "Our valley has such a great demographic profile, it's not surprising companies would want to locate here. We've been planning on it."
According to a press release from Pitney Bowes, from 2012 to 2017 Provo-Orem's population is projected to add nearly 11,000 new households, or 7.4 percent at an annual rate of 1.5 percent. However, that is slower than the 4 percent growth rate between 2000 and 2010. Because the two-city area has an excess of 100,000 households it is considered a major metropolitan area. Coming in second and third are Austin, Texas, and Killeen/Fort Hood, Texas.
"We recognize this is a wonderful place to live," Orem Mayor Jim Evans said. "With growth you have the good and the bad. You've got to continue to have sustained economic growth. We as leaders need to do all we can to support the businesses that are already here. We aren't through being a retail powerhouse."
Orem's director of development services Stanford Sainsbury said, "I think this means great things. This is a result of the people we have here. It's exciting and a challenge to meet the growth. And, they'll bring their business with them. It will become a center for technology with great brain power. It will raise the salaries and enhance the cultural arts.
"This is the reward for all of the work our predecessors and pioneers went through. We stand on the shoulders of those who have gone before."
According to the press release, Pitney Bowes's demographic projections combine national projections by age, sex, race and Hispanic origin. Those complement state and county projections based on county trending from the Census Bureau.
While Provo-Orem will be the fastest growing, the metro areas of Houston, Atlanta and Washington, D.C., are projected to add the most households.
Detroit and Charleston, W.V., are the only major metropolitan areas expected to see a decline in the number of households in the next five years.
Pitney Bowes analyzed 384 metropolitan areas. For most of the country growth will remain stagnant. It will slow in 78 percent of the metro areas. Washington, D.C., and New York have returned to the top five metropolitan areas for absolute growth.

Thursday, November 8, 2012

Top 10 Worst Home-Showing Offenses


Don’t let one of your listings suffer from one of these common showing mistakes.

When it comes to presenting a home to buyers, some sellers are clueless.
Are your sellers’ homes leaving buyers with a bad impression? REALTOR® Magazine received more than 50 responses from buyer agents who revealed their pet peeves when touring homes with clients—offenses that, they say, have buyers racing for the door.
After 20 years of showings, Elke W. McMenemy, ABR, CIPS, broker-owner at St. Augustine Real Estate Inc. in St. Augustine, Fla., has practically seen it all, from the “fully loaded litter boxes” to the “roach-infested ovens.”
“These situations have proven to be frustrating and embarrassing to my buyers and me,” McMenemy says.
Mary Lynn Stenzel with Russ Lyon Sotheby’s International Realty in Scottsdale, Ariz., suggests agents be proactive in discussing with their sellers the cleanliness and presentation expectations for showing appointments upfront. Don’t assume your clients know what to do. Also, agents might want to arrive early to a listing appointment to double-check that everything is in show-ready shape.
Here are the 10 most common responses from buyer’s agents when asked about the worst mistakes they see when presenting for-sale homes to clients:

1. Leftover home owners

By far, one of the top offenses cited by buyer’s agents was home owners still lingering around when agents arrived with clients to preview the home. Awkward encounters ranged from buyers finding sellers taking a shower, asleep in the bed, to even the “stalker sellers” who liked to follow buyers and the agent all over the home to see what they thought.
With the exception of the “stalker seller,” many of the home owners who were still at home blamed their listing agent for not giving them enough advance notice about the appointment prior.

2. Pets and their messes

Numerous agents also cited the not-so-friendly dog and kitty encounters as a top offense. Even pets left in a crate can pose a distraction since they might make noise the entire time others are in the house. Plus, if they seem mean, the buyer might not even step in the room.
Vicki Robinson, ABR, CRS, broker with Fonville Morisey Realty in Raleigh, N.C., says she recently was given showing instructions from a listing agent who told her the family’s “friendly dog” would be at home. But when Robinson unlocked the front door with her client for the showing, a pit bull was staring down at them from the top of the staircase, growling. “We closed the door and left!” she says.

3. Bad smells

A displeasing smell can really turn buyers off. Common offenses include cooking smells lingering around the home, such as garlic, fried bacon, or fish. Also, watch for cigarette smoke and animal smells, agents say.
“Sellers get immune to the smell that their pets have embedded on their property,” says Halina Degnan with Gables & Gates, REALTORS®, in Knoxville, Tenn. “Anyone opening the door will smell it immediately -- even if there are air fresheners trying to cover up the smell. If you have a pet, there will be an odor. Don’t send your buyers away: Paint and clean the carpeting. Take the odor seriously and do what is needed, even if it means replacing the carpet.”

4. Critters running wild

Wild animals and pests roaming around is a surefire way to send buyers running. Agents described worms crawling on the floor and bats and raccoons lounging in the attic. “I showed a house in Utah once with a baby alligator/crocodile [in a cage] in the dining room,” Kristi Hutchings, ABR, SFR, with the Wendy K Team The Real Estate Group in Utah.

5. Odd home makeovers

Do-it-yourself disasters were also prevalent, like doors opening the wrong way or unprofessional paint jobs. Also, rooms not being used for their intended purposes can confuse buyers, such as an office being used as a bedroom even though it has no closet, says broker Elaine Byrne with Elaine Byrne Realty in Austin, Texas.

6. Dirt and clutter

There were a number of offenses cited when it came to cleanliness: Dirty laundry piles, unflushed toilets, dishes on the counter or in the sink, unmade beds, clothes scattered about, soiled carpets, dirty air conditioner filters, and overflowing trash cans.
“One of the worst things I have seen is piles and piles of clothes in every room,” says Chris Leach, ABR, with Medel & Associates Realty in Riverside, Calif. “It was like an obstacle trying to walk around the mess.”

7. Personal information left in plain sight

Sellers should be careful not to leave in plain sight important documents that may pique buyers’ curiosity. Some agents say they’ve seen personal information like bank and credit card statements—even mortgage payoff notices—left on the kitchen counter.
“Buyers are nosey,” says Christopher Handy, ABR, GREEN, broker-associate with Bosshardt Realty Services LLC in Gainesville, Fla. “I’ve even seen the contract for the sellers’ next purchase sitting on the kitchen countertop or ‘final notice’ bills.”

8. Too dark

Dark or dimly lit houses aren’t showing the home in the best light.
“Particularly [homes lit with] CFL bulbs,” says Yvette Chisholm, ABR, CRS, associate broker with Long & Foster Real Estate in Rockville, Md. “By the time [the bulbs] light up, the buyer is gone.” Energy efficient bulbs need time to warm up before they are at their brightest, so staging professionals usually recommend agents arrive early to a showing to turn on any light fixtures with CFL bulbs at least 10 minutes prior.

9. Keys missing from lockboxes

All too often, agents arrive at a listing appointment with their client only to find there’s no key to get in. “I actually had a [seller’s] agent who wanted me to open the door for my clients by going through the dog run as a large dog barked like crazy,” says Hutchings.

10. Distracting photos

Watch the photos displayed on the walls too, agents warn. Tara Hayes, ABR, e-PRO, with Rector-Hayden, REALTORS®, in Winchester, Ky., recalls showing a family a home that had life-sized, nude photos hanging, which left her clients racing for the door covering their eyes.
Similarly, Angela Gandolfo, ABR, SFR, with Citywide Real Estate & Investment in Phoenix, recalls showing a home to a client, who was staring at a painting in the master bedroom of a woman in lingerie. “Isn’t that the owner?” the client asked. “She was also the real estate agent!” Gandolfo says.


Friday, November 2, 2012

Homes Are Selling Faster as Inventories Fall...


The median time a home is on the market nationwide? Just 69 days. 
The number of days on the market nationwide has fallen nearly 30 percent from year-ago levels.
Meanwhile, inventory levels are hovering at all-time lows, with the number of homes for-sale down 31.2 percent from a year ago. The inventory is at a 6.4-month supply of homes on the market, as of July data.  
"As inventory has tightened, homes have been selling more quickly," says Lawrence Yun, the National Association of REALTORS®' chief economist. "A notable shortening of time on market began this spring, and this has created a general balance between home buyers and sellers in much of the country. This equilibrium is supporting sustained price growth, and homes that are correctly priced tend to sell quickly, while those that aren't often languish on the market."
For comparison, the time on the market for non-distressed homes peaked at 10 weeks in 2009. During the housing boom between 2004 and 2005, for example, the median selling time was just four weeks. 
Source: “Low Inventory Levels Sells Homes Quick,” Realty Times (Nov. 2, 2012)