10 Home Features Buyers Want

10 Home Features Buyers Want

Home designers and builders speaking at the recent International Builders Show in Las Vegas say that buyers are seeking cost-effective features and rejecting things that don’t have lasting value.

“It's all about family togetherness – casual living, entertaining and flexible spaces," says Carol Lavender, president of the Lavender Design Group in San Antonio.

Paul Cardis, CEO of Avid Ratings, which conducts an annual survey of buyer preferences, identified these must-haves in new homes:

1. Large kitchens with islands
2. Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows.
3. Home offices
4. Main-floor master suite
5. Outdoor living space
6. Ceiling fans
7. Soaking tub in the master suite and/or an oversize shower with a seating area
8. Stone and brick exteriors rather than stucco or vinyl
9. Community walking paths and playgrounds
10. Two-car garages, but three-car garages are even more desirable

Source: MarketWatch, Steve Kerch (01/30/2010)

Housing Gets Little Mention in Obama Speech

Housing Gets Little Mention in Obama Speech

Some listeners criticized President Obama for failing to pay more attention to the housing crisis in Wednesday night’s State of the Union message.

Obama promised to “step up refinancing so that home owners can move into more affordable mortgages,” but he didn’t offer any details. There was no mention at all of addressing falling home values, restoring the mortgage-backed securities markets or shoring up FHA, critics said. Nor did he mention expiring housing tax credits.

Fresno, Calif., Rep. Jim Costa, said, "The president made no mention of the two most serious issues affecting our Valley's economy: water and housing."

According to a survey conducted for Trulia.com and released shortly before the president’s speech, 36 percent of respondents gave the president a passing grade or better for his efforts to improve the housing crisis. A year ago, he got passing grades from 54 percent.

Source: UPI.com, Steve Cook (01/28/2010)

Ten Inexpensive Ways to Wow Buyers

Ten Inexpensive Ways to Wow Buyers

People ask me all the time how they can make their home more presentable and appetizing to perspective buyers? Well check this out...

Now is the time for home owners contemplating a spring sale to spruce up their properties in anticipation of what Mike Larson of Weiss Research calls a potentially vibrant home-selling season. "If you have been beating your head against a wall, this is going to feel a lot better,” he jokes.

Here are 10 cheap ways to make a property more attractive to shoppers.

1. Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
2. Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
3. Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
4. Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
5. Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
6. Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
7. Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits.
8. Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
9. Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
10. Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.

Source: U.S. News & World Report, Luke Mullins (01/21/2010)

Mortgage Applications Up as Rates Slip

Mortgage Applications Up as Rates Slip

Mortgage application volume increased 9.1 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association.

On an unadjusted basis, the index rose 10.4 percent, but was down 52.3 percent compared with the same week a year ago.

Much of the decline compared to the previous year pertained to refinances. The unadjusted purchases index increased 9.8 percent compared to the previous week and was down 19.1 percent from a year ago.

Interest rates decreased last week:

• 30-year fixed-rate mortgages decreased to 5.00 percent from 5.13 percent.
• 15-year fixed-rate mortgages decreased to 4.33 percent from 4.45 percent.
• 1-year ARMs decreased to 6.72 percent from 6.83 percent.

Source: Mortgage Bankers Association (01/20/2010)

Housing Economists: Sales Are on the Rise

Housing Economists: Sales Are on the Rise

The housing recovery should gain moment in 2010, but the improvement will still be slow, according to a panel of economists speaking at the International Builders Show in Las Vegas.

"It won't be a strong recovery, but it will be a recovery," said David Crowe, chief economist for the National Association of Home Builders.

Crowe forecast that sales of new homes will rise by about 33 percent while resales will go up 7 percent. He expects prices to remain stable in most areas, but some cities may see some slight declines.

"I believe we've seen the worst of the house price declines ... The stage is set for the consumer to return," Crowe said.

Source: Associated Press, Alex Veiga (01/19/2010)

Forbes Analyst: Housing, Good Investment in 2010

Analyst: Housing a Good Investment in 2010

Forbes housing reporter and analyst Francesca Levy makes some thought-provoking predictions in the latest issue of the magazine.

She predicts:

• Real estate will be an attractive investment strategy in 2010 with wealthy investors devoting an increasing segment of their portfolios to it.
• Loan modifications will result in more people who should probably be facing foreclosure slipping deeper into debt.
• Cities like Omaha, Neb., and Buffalo, N.Y., which avoided the housing bubble and most of the bust, will be models for cities trying to avoid another bubble.
• Financial troubles in Dubai will ripple through the U.S. luxury market, creating energy in a market that has been stagnant.

Source: Forbes, Francesca Levy (12/28/2009)

1,000 Ways To Pick The Right Realtor

1,000 Ways To Pick The Right Realtor

Written by: Greg Nino Houston Texas a Realtor with Re-max.

This will be the first of many public blogs to come. The story will be 1,000 ways to pick the right Realtor. This is pretty simple. Number 1,000 comes with an added bonus, but you'll have to stick around to find out what it is. Here we go.

1. If a Realtor starts out by showing you a picture of themself in any magazine, walk away. Most Realtors will pay top dollar "to have their names in the lights." They love to impress themselves and most importantly, other Realtors. They assume this type of advertising provides them instant credibility with you, the consumer. Ego advertising is for the ego, nothing more.

2. Don't assume an "OLDER" Realtor is one that is wise about selling homes. Most agents I know get into real estate after finishing a career in something entirely different. It's a popular "second" career and even hobby for many folks. Again, just because she's 60 doesn't mean she's more experienced than me.

3. Many new agents and even experienced agents feel it necessary to buy a car they can't afford. Don't assume A LOT when you work with a Realtor. Instead, ask dozens and dozens of questions. If a Realtor drives a 65k BMW, but wears stretchy polyester pants from Sears than you have to wonder if the agent is just pretending to be successful.

4. Do try to annoy your Realtor with questions when your first meet them. You'll figure out there temperament level quickly. Many agents boast about their ability to "provide excellent customer service." For fun, repeat yourself a few times to see if they start getting pissy. I love when prospects DRILL me. I love it because I know other agents won't be as patient.

5. If your Realtor starts the conversation out with.. "I'll reimburse you part of the commission or I'll list your home for almost nothing" then you need to hide from them. Odds are they sleep in that expensive BMW at night. They probably are starving financially and are reduced to trying to BUY their buyers and sellers. You do get what you pay for in this business.

6. If a Realtor agrees with all that you say, find a new one. Your shadow is more competent than a yes man.

7. Don't assume a Broker has more negotiating skills than a Salesperson. A salesperson is a regular Realtor without a Brokers license. Brokers usually market the office, recruit new agents and are very busy doing "other things" besides selling real estate. This isn't to suggest that all Brokers are out of touch when it comes to working with buyers and sellers on a day to day basis.

8. Don't pick the Realtor your boss suggests, especially if it's his spouse. If "that" Realtor sucks, you're going to really be in a jam. Instead, say thank you, but no thank you. Your boss will respect your candor, not look down on you for choosing elsewhere. If you're working with a relocation department then it may be a different story.

9. Many agents have a website. Ask for it. The website can say an awful lot about that individual.

See you next week.

Expanded Tax Credit Offers Big Opportunity

Expanded Tax Credit Offers Big Opportunity

With a new April 30 deadline in place for clients to take advantage of a federal home-buyer incentive, real estate practitioners now have slightly less than four months to get their qualified prospects under contract before the cut-off date.

In order to maximize this opportunity, it is recommended that real estate pros revamp their marketing materials to reflect changes in the rules — which now allow certain repeat buyers, as well as first-time buyers, to get a tax break.

In addition to promoting home-buying based on today's lower home prices and historically low interest rates, it is also important for the real estate professional to convey to clients that there is no requirement that they sell their current residence at once — or ever.

On top of polishing up their marketing approach, real estate professionals should free up their time so that they are available to spend more time guiding buyers and hosting property showings.

They also must be thoroughly knowledgeable about the supply of properties priced up to $800,000, which is the maximum price for a home to qualify for the tax credit.

Finally, agents must keep all other parties involved in transactions — from lenders to inspectors — on top of things and at the ready because most motivated house-hunters will want to move quickly once they have found their ideal property.

Source: RISMedia, Margaret Kelly (01/08/10)

© Copyright 2010 Information Inc.

Sellers Should List Homes Early

Sellers Should List Homes Early

Selling a home in the dead of winter might seem ill-advised, particularly considering the state of the economy, but some experts think that making the decision to wait until spring to list the property could be a mistake.

Government incentives will likely have a big impact in 2010, with many buyers determined to sign a contract before the April 30 tax credit deadline.

“This year, we're anticipating sales will peak earlier,” says Nicole Hall, editor in chief of Lendingtree.com, an online mortgage comparison service. “The best time to get your house on the market will be February or early March, and maybe even earlier if you want to avoid competition.”

Traffic on real estate Web sites begins to rise right after the New Year, says Ken Shuman, spokesman for real estate Web site Trulia.com.

Source: Forbes.com, Francesca Levy (12/24/2009)

If You Don't Buy a House Now, You're Stupid or Broke

Interest rates are at historic lows but cyclical trends suggest they will soon rise. Home buyers may never see such a chance again, writes Marc Roth

By Marc Roth

Well, you may not be stupid or broke. Maybe you already have a house and you don't want to move. Or maybe you're a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates.

As of today, the average 30-year fixed-rate loan with no points or fees is around 5%. That, as the graph above—which you can find on Mortgage-X.com—shows, is the lowest the rate has been in nearly 40 years.

In fact, rates are so well below historic averages that it should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.

And it is exactly that, based on what the graph shows us. Let's look at the point on the far left.

In 1970 the rate was approximately 7.25%. After hovering there for a couple of years, it began a trend upward, landing near 10% in late 1973. It settled at 8.5% to 9% from 1974 to the end of 1976. After the rise to 10%, that probably seemed O.K. to most home buyers.

But they weren't happy soon thereafter. From 1977 to 1981, a period of only 60 months, the 30-year fixed rate climbed to 18%. As I mentioned in one of my previous articles, my dad was one of those unluckily stuck needing a loan at that time.

Interest Rate Lessons

And when rates started to decline after that, they took a long time to recede to previous levels. They hit 9% for a brief time in 1986 and bounced around 10% to 11% until 1990. For the next 11 years through 2001, the rates slowly ebbed and flowed downward, ranging from 7% to 9%. We've since spent the last nine years, until very recently, at 6% to 7%. So you can see why 5% is so remarkable.

So, what can we learn from the historical trends and numbers?

First, rates have far further to move upward than downward; for more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.

Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low.

Finally, the most important lesson is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home.

Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let's assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.

Loan Costs

Stay with me now. We are at 5%. As you can see by the graph above, as the economy stabilizes, it is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $50,000.

Let's put that into perspective. You have a good stable job (yes, unemployment is at 10%, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is "more stable" and it's safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.

If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you're borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.

Marc Roth is the founder and president of Home Warranty of America, which touches just about every part of the real estate industry since it sells through builders, real estate agents, title companies, mortgage companies, and directly to consumers.

Five Key Housing Issues to Watch in 2010

By Nick Timiraos

The housing market, which brought the economy to its knees in 2008, struggled to recover in 2009. The modest gains of the past year can be credited in many ways to federal support that will be removed at some point in 2010.

That makes for an uncertain outlook for the year ahead, one filled with questions about what policymakers will choose to do and how markets will react to those decisions. “The can has been kicked down the road,” says Ivy Zelman, chief executive of Zelman & Associates, a housing-research firm.

Here’s our list of five big issues to keep an eye on in 2010:

Mortgage rates: The Federal Reserve has kept mortgage rates low for most of 2009 by committing to purchase up to $1.25 trillion in mortgage-backed securities. Mortgage rates stayed at or below 5% for much of 2009 thanks to the Fed’s purchases, which have already been extended once, to March 31. Whether the private market is ready to fill the gap when the Fed exits is one of the hottest debates between economists, investors and analysts. The Mortgage Bankers’ Association says that it expects rates to rise by around one-quarter of a percentage point, but others say rates could jump by as much as a full percentage point. Low mortgage rates helped ignite a fragile recovery in home sales in 2009, and they allowed millions of homeowners (including Federal Reserve Chairman Ben Bernanke) to refinance out of mortgages that might have increased to higher rates.

Fannie, Freddie and the FHA: Nearly nine in 10 mortgages are now being backed by Fannie Mae and Freddie Mac, the mortgage-finance giants taken over by the government, or government agencies such as the Federal Housing Administration. The future of Fannie and Freddie remains nearly as uncertain now as it was one year ago, but the White House has said it will offer its recommendations on how to remake the U.S. housing-finance infrastructure early this year. The FHA, meanwhile, has suffered from heavy losses that could lead to a taxpayer bailout, and it is set to announce a series of measures in the next few weeks to tighten its standards. The New Deal-era agency, which offers loans with minimum 3.5% down payments, backed half of all sales to first time home buyers during the peak April-June buying period. Needless to say, builders are anxious about the prospect of any tightening of loan standards.

Loan modifications: The Obama administration launched the most ambitious government effort to date in February to modify loans for troubled borrowers. That program, however, has been off to an underwhelming start because loan servicers, which collect loan payments, have had to rapidly build staff and systems to administer the program. Borrowers who complete three reduced loan payments are eligible for a permanent modification that reduces their monthly payment for up to five years. Through November, some 728,000 borrowers have signed up for trial modifications, but just 31,000 have moved into permanent workouts, or fewer than 5% of those eligible. Loan modification efforts have helped to hold back the supply of foreclosures for sale. The number of seriously delinquent loans continues to climb, so it’s reasonable to expect a pick up this year in distressed sales and foreclosures that hit the market.

More loan resets: Analysts and pundits have been warning for years about the coming wave of option adjustable-rate mortgages that will jump to sharply higher payments beginning this year. Those loan recasts are concentrated particularly in high-cost housing markets, such as coastal California and other areas where homes became increasingly unaffordable at the height of the housing boom. Meanwhile, more interest-only loans that allowed borrowers to avoid making principle payments for three, five, or seven years will reset to higher payments. Those loans became especially popular among borrowers of jumbo loans, which are too large for government backing and range from $417,000 in most parts of the country to as high as $729,750 in the most expensive housing markets. Many of these borrowers owe more than their homes are worth, leaving them particularly vulnerable to default if they can’t afford the higher payments. That could cause more pain for mid-to-upper end housing markets that began to show more signs of stress in 2009.

Tax credit and home sales: Sales were fueled in the late summer and early fall in part due to an $8,000 tax credit that had been set to expire in November. Congress has extended that through the first half of next year, but some economists say that the tax credit will steal demand from future months. The tax credit led first-time buyers to compete with investors on lower-priced homes, and prices posted six straight months of modest gains through October, according to the Case-Shiller index, which measures home prices in 20 cities. While it wouldn’t be surprising to see prices tick down again during the winter, when home sales are normally cooler, there’s still a good deal of debate between housing economists and analysts over whether a “double-dip” could lead home prices to fall below the bottom that was set last April. Meanwhile, housing analysts expect to see an uptick in short sales, where lenders allow homeowners to sell for less than they owe on the mortgage.

Readers, what else about the housing market keeps you up at night?

Who do you want your neighbors to be?

Americans Want to Be Obama's Neighbor, Who do you want?

The neighbor most Americans would choose is the Obama family, according to the annual Zillow Celebrity Neighbor Survey, which asked more than 2,000 U.S. adults to choose who they’d most like to see across the fence.

The most desirable neighbors for 2010 are:

• The Obamas
• Ellen DeGeneres and Portia DeRossi
• Sarah Palin
• Taylor Swift
• Oprah Winfrey
• Tom Brady and Gisele Bundchen
• Tiger Woods
• Robert Pattinson

The least desirable neighbors are:

• Nayda Suleman (also known as "Octomom")
• Jon and Kate Gosselin
• Sara Palin
• Richard and Mayumi Heene (parents of balloon boy)
• Kanye West
• Heidi Montag and Spencer Pratt
• Britney Spears
• Tiger Woods

Source: Zillow.com (12/29/2009)

A Decade of Dramatic Developments in Your Housing market...

A Decade of Dramatic Developments

At the beginning of the 21st century, most home buyers had never viewed a home online; the three top home sale marketing methods were yard signs, newspaper ads, and open houses; and nearly nine out of 10 buyers financed their purchase with a fixed-rate, 30-year mortgage.

What a difference a decade makes.

“The real estate industry has seen tremendous change and evolution over the past decade,” said NATIONAL ASSOCIATION OF REALTORS® President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “As the first, best source for real estate information, REALTORS® have not only anticipated and adapted to the evolving needs of their clients and customers, but also have influenced industry trends and innovations that will carry us into the future.”

In 1999, buyers who went online in search for a home were in the minority – only 37 percent of buyers used the Internet in their home search, according to data from the NAR Profile of Home Buyers and Sellers. Today, 90 percent of buyers are searching online, and the real estate industry has responded. Sites like REALTOR.com, which attracts nearly 12 million total visits every month, have evolved to gives today’s buyers what they want – not just property listings, but multiple photos, online videos, mapping features, and comprehensive neighborhood information, as well.

Median home values over the past decade have increased more than 25 percent, from $137,600 in November 1999 to $172,600 in November 2009 (the most recent existing-home data available). Fewer people are buying detached, single family homes – 82 percent in 1999 compared to 78 percent in 2009 – but more people are buying homes in suburban neighborhoods – 46 percent in 1999 compared to 54 percent today.

Buyers themselves have also changed. A smaller proportion of married couples are buying homes these days; while married couples comprised 68 percent of all home purchases at the beginning of this century, they represent 60 percent of all buyers today. Single men and women have made up the difference – single men purchased 10 percent of all homes last year, compared to only 7 percent 10 years ago. Single women now represent more than one-fifth of all home buyers – 21 percent, up from 15 percent in 1999.

Other things haven’t changed. The median age for home buyers last year was 39, just as it was in 1999. Neighborhood quality, affordability, and convenience to work and school have consistently been top priorities for both past and present buyers. And eight out of 10 recently surveyed consumers believe that owning a home is an investment in their future.

“REALTORS® have been around for more than 100 years, but one constant during that time has been the persistence of homeownership as the American Dream,” said Golder. “As the first decade of this century comes to a close, NAR stands ready to meet the many challenges and opportunities that lie ahead by helping our REALTORS® members better serve their clients and communities and ensuring that those dreams of homeownership remain possible for all who want to achieve it.”

Source: NAR

Real Estate Outlook: Housing Recovery

Real Estate Outlook: Housing Recovery
by Kenneth R. Harney

The real estate recovery continues to roll along with a big 7.4 percent jump in home resales last month, according to the National Association of Realtors.

The current sales pace is 44 percent higher than it was the year before, including detached single family homes, townhouses, condos and cooperatives.

Equally important: Sales are up in every region of the country. They rose by 6.6 percent last month in the Northeast, 8.4 percent in the Midwest, 5 percent in the South, and nearly 11 percent in the West.

And for the second month in a row, sales totals were higher in all price classes. For most of the year, by contrast, only lower and moderate priced houses saw sales gains, while higher cost properties languished on the market. Now they're moving too.

Unsold inventories of houses also are down this year -- 16 percent below where they were the year before.

Lawrence Yun, chief economist for the National Association of Realtors, said a last-minute rush by buyers hoping to close on properties before the scheduled November 30 deadline for the $8,000 first time buyer credit added a lot of sales to the impressive November total.

Congress extended the November 30th closing deadline for the first-time buyer credit until June 30th of next year -- and added a new $6,500 credit for repeat purchasers to the mix.

Vicki Cox Golder, president of the National Association of Realtors, said the current combination of low prices, low mortgage rates and the tax credits has created an exceptionally attractive environment for buyers around the country.

“It really doesn't get any better for buyers,” she said, provided of course that they have “secure jobs and long-term ownership plans.”

Meanwhile, Fannie Mae's year-end forecast for 2010 suggests that sales of existing homes next year should jump by another 10 percent over this year, and new home sales should be 26 percent higher.

Like other forecasters, Fannie Mae sees rising mortgage rates hovering on the horizon, but not so high that they will scare away serious purchasers.

The Mortgage Bankers Association expects 30-year fixed rates to exceed 5.2 percent in the months ahead, up from about 5 percent in the latest week.

Even Federal Reserve chairman Ben Bernanke apparently is banking on higher mortgage rates as the economy warms up next year. The Wall Street Journal reports that Bernanke has refinanced out of an adjustable-rate loan on his Washington D.C. home and into a more secure 30 year fixed rate around 5 percent.

Published: December 29, 2009

The Highest Offer May Not Be the Best

The Highest Offer May Not Be the Best

Sellers who get more than one offer should be aware that the highest offer isn’t necessarily the best offer, say experienced practitioners.

In this tough market, going with the buyer who has enough cash to pay a large down payment and who won’t be scared away if the inspection uncovers some needed repairs is often the wise choice.

Practitioners should encourage sellers to review all the terms and conditions of the sales contract. In some areas, the allocation of fees can take a big bite out of the net proceeds. While most contracts are written to reflect that, it isn’t always the case.

Also, the closing date in the offer should be considered carefully. A buyer who can close quickly can save a seller thousands. Offers contingent on the sale of another property are particularly suspect in this market.

Source: Inman News, Dian Hymer (12/28/2009)

Interest Rates Predicted to Reach 6%

Interest Rates Predicted to Reach 6%

Interest rates are likely to rise to 6 percent by the end of 2010, predicted Amy Crews Cutts, deputy chief economist at Freddie Mac.

The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because private buyers will demand more return than the Fed.

"Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it's hard to imagine that the rates can go much lower than they are," Crews Cutts said. "Anything we get at or below 5 percent is a gift at this point."

Source: Washington Post, Dina ElBoghdady (12/26/2009)

Home prices rise again in October

Home prices rise again in October

Associated Press

Published: Tuesday, Dec. 29, 2009 8:29 a.m. MST

NEW YORK — Home prices rose for the fifth month in a row in October, but the recovery continues to be uneven with only 11 of the 20 metro areas tracked showing gains.

The Standard & Poor's/Case-Shiller home price index released Tuesday edged up 0.4 percent to a seasonally adjusted reading of 145.36 in October from September. The index was off 7.3 percent from October last year, nearly matching expectations of economists surveyed by Thomson Reuters.

The index is now up 3.4 percent from its bottom in May, but still almost 30 percent below its peak in April 2006.

San Francisco and Detroit posting the largest increases. Dallas recorded a flat reading for the month, while Tampa and Chicago had the largest declines.

"Coming after a series of solid gains, these data are likely to spark worries that home prices are about to take a second dip," David Blitzer, chairman of the index committee at Standard & Poor's, said in a statement. That happened in the early 1980s, he said, and the current housing recovery appears more solid.

The federal government has stepped in with an extraordinary level of support this year for the housing market. Home price gains since the summer reflect the rush of homebuyers trying to close their deals before the original expiration date of a federal tax credit. The Nov. 30 deadline was extended last month to April 30.

Besides a credit of up to $8,000 for first-time buyers, Congress expanded the program to include homeowners who have lived in their current properties for at least five years. They can now claim a tax credit of up to $6,500 if they relocate.

The Federal Reserve is also buying up $1.25 trillion in mortgage-backed securities to help keep interest rates at historical lows.

My Yearly Letter from "Kranky Klaus"...

(Disclaimer: The following is a Kranky Christmas letter from Kranky Klaus. If you are easily offended by politically incorrect speech you should put this letter back in the envelope and watch CNN!)

Ho Hum, Ho Hum, Ho Hum!!

Well, it's been quite a year here at the north pole. We have yet to recover from collapse of the sub-prime igloo market and i had to lay off even more Elves than last year. But it appears hope is just around the corner. The government has deemed our toymaking operation at the North Pole as "Too Big To Fail," and cam through with $20 billion dollars of stimulus money - just in time too...though I might not get my $40 million bonus this year! Of coarse, along with he stimulus money came government control of my workshop. Between the government and the A.F. "ELF" C.I.O. Union, I am now a minority stockholder in my own corporation!! From now on all toys will be built to government standards - what a thrill it will be for all the boys and girls to receive a politically correct Gay G.I. Joe or Secretary of State Barbie Doll.

I had planned on delivering millions of real coal burning toy locomotives this year but then the Environmental Protection Agency stepped in......so now toy cars and trucks have to meet MFB (minimum feet per battery) and emissions standards. I can't wait to see little Johnny's face as he opens his present expecting a Monster Truck and gets a miniature Toyota Prius instead.

The Elves and Reindeer are demanding a government option on health care. So I fired all the doctors. From now on they will be seen by politicians. NEXT!

We joined the war on terror by invading OZ and defending the North Pole from radical Munckins. Last week we launched a predator missle from my sleigh and eliminated the entire lollipop guild. In addition, I have accepted the US government request to move the prisoners from Guantanamo to the North Pole. I will be picking them up in my sleigh on my way back to the North Pole on Christmas Eve. Hey...it's free labor. Besides, I never signed the Geneva Convention.

You remember how hard it was for me to get into the White House on Christmas Eve last year? Well, I finally figured it out. All I have to do is ditch the red suit for a tuxedo and take a good looking blond with me. I might even get my picture taken with the President!

Unemployment continues to rise here at the North Pole. I am down to six reindeer having layed off Donner and Dasher. I saw them the other day on the street corner holding up a sign "Will fly for food". It's so sad. The Elves are suffering as well. I had to let Twinky, Pinky, Dinky and Stinky go just last week. I saw them across the street from Donner and Dasher and they sure looked hungry. They were watching the cars speed by and yelling to the reindeer "Here boy...Here boy...Here boy" while holding out a carrot. To compensate, I brought in some cheap labor from North Korea. They don't understand a word I say but they bow and call me "Great Leader". I like that! Problem is you have to watch them all the time. I went out for a cookie break the other day and came back to find them working on a Nuclear Warhead!

Can you believe this? I got a letter from Tiger Woods a few days ago asking me for a new SUV! Says he ran into a tree accidentally. He must have forgot... I know when (and where) he's been sleeping. Coal and Switches for him!!!

I gotta get back to work now. I suppose I should wish you a Merry Christmas. Oh yeah...be sure to tie up the dog and turn off the Security system on Christmas Eve. The last thing I need is a Dead Rottweiler or trouble with the cops.

Crumbs and Kisses - Kranky Claus

P.S. Rudolph says to leave a six pack of that new carrot energy drink "Red Reindeer".

November home resales soar in SL County, the West and nationally

The Associated Press

Updated: 12/23/2009 01:28:51 AM MST

Sales of existing homes in Salt Lake County jumped 77 percent in November, compared with the same month last year, reflecting rising volumes in the West and the nation.

The Salt Lake Board of Realtors reported Tuesday that there were 1,071 homes and condominiums sold in November, versus 2,006 in November 2008, when the U.S. economy was deep in the midst of its downturn. But sales last month also were up 15 percent when compared to November 2007 (928).

Board president Ryan Kirkham said home purchases were pushed by lower prices, interest rates below 5 percent and buyer-incentive programs offered by the state and the federal government in the form of a tax credit.

"You take all those factors in, couple that with the fact there's a lot of great inventory, and it's been a tremendous time to be a buyer," he said.

The median price of all homes sold in Salt Lake County in November dropped to $202,200, down 12 percent versus the median price of $229,250 in November 2008, the board said.

There are about 6,800 homes and condos for sale in Salt Lake County, an estimated eight-month supply, the Board of Realtors reported. The median number of days on the market for homes that sold in November was 68 days, down from 79 days a year earlier.

In the West, home sales jumped 30 percent in November, driven largely by first-time buyers racing to qualify for the federal tax credit that was set to expire at the end of the month. Foreclosures

and other financially distressed homes in low price ranges accounted for many deals in California, Arizona and Nevada. That helped pull down the region's median price by 4 percent, to $231,100.

Nationally, sales soared by almost 47 percent from November last year, without adjusting for seasonal factors, the National Association of Realtors said. The median price dipped 4 percent, to $172,600.

Sales in the 13-state West region have improved this year, aided by low mortgage interest rates and the $8,000 tax credit for first-time buyers. Congress recently extended the incentive to the end of April and expanded it to include $6,500 for existing homeowners who have lived in their current residence for at least five years.

Buyers must sign a contract by the end of April to qualify. And that time cushion means buyers in the market now aren't in a rush. That, plus the traditional holiday slowdown have reduced foot traffic at open houses this month, several agents said.

"What we're seeing is that buyers have no sense of urgency now," said Gary DeRosa, an agent with ZipRealty Inc., in Seattle.

Jason Chaffetz explains the benefits of the New Tax Credit...

December 22, 2009



Dear Mr. Smith,

Thank you for writing to my office with your views on extending the first-time homebuyer tax credit.

The proposal to extend this tax credit was part of the Worker, Homeownership, and Business Assistance Act of 2009 (HR 3548). I voted in favor of this legislation along with over 400 of my colleagues in the House, and President Obama signed this bill into law on November 6, 2009.

Among other things, this legislation provides a new $6,500 tax credit to some qualified current homeowners who purchase another home, and extends the $8,000 tax credit for first-time home buyers (which was scheduled to expire at the end of November) until April 30, 2010. It is my hope that this tax credit extension will strengthen our weakened economy by improving the housing market. I also anticipate that no further extensions will be needed.

Again, thank you for contacting my office. Please do not hesitate to write me again if you have any further questions or comments. Also, if you would like to sign up for my monthly e-letter, please visit my website, http://www.chaffetz.house.gov/.



Sincerely,

Jason Chaffetz
Member of Congress

November home sales soar 7.4 percent

November home sales soar 7.4 percent

December 22nd, 2009 @ 9:56am

By ALAN ZIBEL
AP Real Estate Writer

WASHINGTON (AP) - Home resales surged last month to the highest level in nearly three years, reflecting an extraordinary level of federal support that has pulled the housing market back from the worst downturn since the Great Depression.

Buyers were racing to complete their sales before the original expiration date of a tax credit for first-time buyers that was scheduled to expire Nov. 30. Last month, Congress decided to extend and expand the credit to ensure the housing market could sustain its recovery.

"Things are stabilizing," said Pete Flint, chief executive of real estate Web site Trulia.com. "There is a significant amount of buyer interest out there."

About 2 million homebuyers have taken advantage of the credit so far, the National Association of Realtors said Tuesday. The group forecasts that another 2.4 million will use it by the middle of next year. First-time buyers made up about half of all transactions last month, driving sales up 44 percent above last year's levels, a record jump.

"In the short run, its an effective stimulus," said John Ryding, chief economist at RDQ Economics. "If you give someone money to spend on something, they will spend it."

November's sales rose 7.4 percent to a seasonally adjusted annual rate of 6.54 million, from a downwardly revised pace of 6.09 million in October, the Realtors group said. It was the highest level since February 2007. Sales had been expected to rise to an annual pace of 6.25 million, according to economists surveyed by Thomson Reuters.

Sales are now up 46 percent from the bottom in January, but down 10 percent from the peak more than four years ago. The inventory of unsold homes on the market fell about 1 percent to 3.5 million. That's a healthy 6.5 month supply at the current sales pace, the lowest level in three years.

The median sales price was $172,600, down 4.3 percent from a year earlier, and up 0.2 percent from October.

The housing market recovery, however, is still facing strong headwinds.

Unemployment is high and employers are going to be slow to rehire because economic growth is weaker than expected. The economy grew at a pace of 2.2 percent in the third quarter, which was lower than the initial 2.8 percent reading, the government said Tuesday.

What's more, mortgage defaults are still setting records, and lenders are regularly rejecting applications from borrowers who don't have good credit or enough money for a down payment.

Many experts warn that hundreds of thousands of foreclosed properties have yet to be put up for sale. Plenty of traditional sellers are also keeping their homes off the market, hoping for a better price.

"When they start thinking they can sell them, we could see a surge in homes for sale," wrote Joel Naroff, president of Naroff Economic Advisors.

In the meantime, home buyers can take advantage of record-low mortgage rates, deeply discounted prices and federal incentives. Besides the existing tax credit of up to $8,000 for first-time buyers, homeowners who have lived in their current properties for at least five years can now claim a tax credit of up to $6,500 if they relocate. To qualify, buyers must sign a purchase agreement by April 30.

Analysts expect that the new tax credit deadline means sales will drop during the winter months and recover in the spring.

Without the looming deadline, "buyers have no sense of urgency now," said Gary DeRosa, an agent with ZipRealty Inc. in Seattle.

Home Owners Would Spend Tax Credit Wisely

Home Owners Would Spend Tax Credit Wisely

A survey of homeowners by Coldwell Banker Real Estate found that 20 percent said they were more likely to consider purchasing a new home after learning about the $6,500 tax credit than they were six months ago.

Of the more than 1,000 homeowners surveyed, 83 percent said that if they were to purchase a home and qualify for the tax credit, they would pay off debts, make home improvements, add it to savings or use the money for household expenses.

Only 6 percent said they would spend the money on a luxury item like a vacation or a shopping spree.

Source: Coldwell Banker Real Estate (12/16/2009)

Foreclosures: Ten Reasons for Buyer Caution

Foreclosures: Ten Reasons for Buyer Caution

Foreclosed homes aren’t always the best deal in town – even if they do come with a price tag that appears to be lower than some other homes in the neighborhood.

Here are 10 reasons why that is true, offered by Vince Mastronardi, president of On-Site Specialty Cleaning & Restoration.

1) No heat in the winter. When a home has been left unheated, buyers run a risk of damaged pipes.
2) Not removed but ripped. Thieves and even angry former owners can do a lot of damage when they depart with fixtures and key systems like heaters and air conditioners.
3) Peeling, bubbling, and discoloration. Water incursion isn’t always obvious, but these are signs.
4) Mold. Where there is water there is mold. Look inside cabinets, behind drawers, and around built-ins.
5) Blocked drains and pipes. Sewer backups can be expensive to fix.
6) Black cobwebs. This is the result of a malfunctioning furnace, common in properties where there hasn’t been maintenance for a long time.
7) Homemade and handy. Where renovations don’t look professional, check with the municipal authority. They may have been completed without permits and that could mean they have to be redone.
8) Fresh paint everywhere. What is the seller covering up?
9) Check the basement. Look for discolored subflooring, which can point to mold. And search for asbestos, common in older homes that haven’t been brought up to code.
10) Air quality. Include air and surface testing in a home inspection. It’s a few hundred dollars well spent.

Source: On-Site Specialty Cleaning & Restoration (12/16/2009)

My New Car...A Miracle...

Finally, FREEDOM! A-M-A-Z-I-N-G!!!

Salt Lake City is ranked 9th in the country for forbes magazine Top Ten Fastest Recovering Housing Markets!

Cities Where Housing Is on the Mend

No cities have totally avoided the foreclosure crisis, but some were able to sidestep the worst of it. These markets are now recovering quickly.

The recovery is swiftest in those areas that didn’t have as much of a housing price run up to begin with, either because the economy in those areas has stayed healthy or the economy has been limited for decades and residents have adapted or left.

To identify places where the recovery has begun, Forbes magazine examined the number of loans that were foreclosed in the 100 largest metropolitan statistical areas. Then it calculated the percentage of loans that are descending further into delinquency vs. those that are improving. The lower the deterioration ratio, the higher the ranking.

Here are the cities that fared best by that measurement and are recovering the most quickly:

1. Harrisburg-Carlisle, Pa.
2. Austin-Round Rock, Texas
3. Ogden-Clearfield, Utah
4. Buffalo, N.Y.
5. Knoxville, Tenn.
6. Raleigh, N.C.
7. San Antonio, Texas
8. Syracuse, N.Y.
9. Salt Lake City, Utah
(Tied)
10. Moline, Ill.
10. St. Louis
10. Wichita, Kan.
10. Rochester, N.Y.

Source: Forbes, Francesca Levy (12/09/2009)

Housing Inventory Decreases

Housing Inventory Decreases

The number of homes for sale declined 2.4 percent in November in the metropolitan areas covered by ZipRealty Inc. In the last 25 years, the decline in November has averaged 1.8 percent.

The data doesn’t include New York, but Miller Samuel Inc., an appraisal firm, reports that inventory was down 7.1 percent from the end of October and down 18 percent compared to November 2008.

October was the first month since January to show a rise in bank-owned homes. The number of bank-owned properties declined over the summer because of efforts to prevent foreclosures. As time runs out for many families, the number of foreclosures is increasing.

As of the end of October, banks and mortgage investors had 639,000 foreclosed homes for sale across the U.S., Barclays Capital estimates. "We expect a rebound in distressed inventory in the coming months," says Glenn Boyd, a senior analyst at Barclays.

Source: The Wall Street Journal, James R. Hagerty (12/09/2009)

Foreclosures Decline for The Fourth-Straight Month

Foreclosures Decline for Fourth-Straight Month

Foreclosures declined 8 percent in November compared with October, but were still up 18 percent from November 2008.

This was the fourth-straight month that U.S. foreclosures have declined since hitting an all-time high in July, according to online foreclosure marketer RealtyTrac.

Default notices, an indicator of coming foreclosures, also were down 8 percent from October, but up 22 percent from November 2008. Bank repossessions were flat from the previous month and down 2 percent from November 2008.

"We don't really believe the underlying problems have been resolved," said Rick Sharga, senior vice president for RealtyTrac. Many borrowers, he told the Associated Press, "simply aren't going to qualify" for government and mortgage servicer help.

States with the highest foreclosure rates are:

• Nevada
• Florida
• California
• Arizona
• Idaho
• Michigan
• Illinois
• Utah
• Maryland
• New Jersey

Four states account for more than 50 percent of actual foreclosures: California, Florida, Illinois, and Michigan.

Source: RealtyTrac, (12/10/2009)

A Busy Month of Wishing...

Recovering from my car crash has been a lesson in work. I think we all go through a couple of hard times where we loose sight of our goals and have to pull ourselves back on track!

Over the past month I've dealt with a Car Accident, another Car Repair, Negotiating Damages, Recovering from accident sustained injuries, Negotiating Medical expenses, obtaining a lawyer with principals, and closing on several transactions I've realized the one thing and probably the most important thing I've neglected is my sustained business.

We have all been in the same situation one way or another. What have you done to remedy the situation?

1. I invite you to tell your friends and family about me, to let them know I am one of the hardest working, highest producing, and knowledgeable agents you have worked with.

2. I invite you review my website, subscribe and search for homes you may be interested in.

3. I invite you to review my blog regularly and learn about the new developments affecting our ever changing market on a constant basis.

4. I invite you to call, text, or email me with questions and concerns on our current market and your home or future home.

Lets make this a great year for our housing market while prices are still low.

Parker Smith, REALTOR®
Certified Negotiation Expert
Windermere Real Estate
(801) 836-4393
ParkerSmith@Windermere.com
http://www.parkersutahproperties.com/

Home sales contracts soar in October 09

Home sales contracts soar in October

National Association of Realtors index spikes 32% as buyers take advantage of first-time homebuyer tax credit.

By Les Christie, CNNMoney.com staff writer

Last Updated: December 1, 2009: 10:39 AM ET

NEW YORK (CNNMoney.com) -- Americans are inking a lot of deals to buy homes.

In October the National Association of Realtors recorded an unprecedented ninth consecutive month of increases in the number of signed contracts.

Although these are not closed sales, and some deals can fall through, signed contracts are a good indicator of where the housing market is headed.

Between September and October NAR's Pending Home Sales Index rose 3.7% to 114.1 from 110 in October. But the index is 31.8% higher than a year ago, when it was 86.6. That's the biggest year-over-year gain in the history of the index.

The PHSI is also at its highest level since March 2006, and the rise confounded expert expectations. A panel of industry analysts put together by Briefing.com had forecast a 1% drop in new contracts.

NAR's chief economist, Lawrence Yun, gives much of the credit for increased sales to the homebuyer's tax credit, which first-time homebuyers could claim to reduce their taxes by up to $8,000.

"The tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future," Yun said in a prepared statement.

The credit had been due to lapse on Dec. 1, so many October buyers may have acted to get in under the wire.

However, the credit has been extended through the middle of 2010 and expanded to include many move-up buyers. The housing industry hopes that will keep sales perking until the economy picks up and markets return to a more normal condition.

In a related story, the Census Bureau reported that private residential construction spending surged 3.9% during October.

Yun cautioned, however, that housing market indicators, such as pending sales, may weaken over the next few months.

"The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months," he said.

"Given the lag time, we could see a temporary decline in closed existing home sales from December until early spring when we get another surge," he added. "But the weak job market remains a major concern and could slow the recovery process."

The good news is that number of homes on the market has declined, removing some of the bloat that has depressed prices. There is now a seven month supply of homes on the market at the current rate of sale. which is down from 10.2 months a year ago. Yun predicted that housing conditions could return to near normal and home prices firm up by mid-2010.

"That would mean broad wealth stabilization for the vast number of middle-class families," he said.

First Published: December 1, 2009: 10:07 AM ET

I'm sick and it's distracting!

Have you ever noticed that when your sick everything seems to move in slow motion. Work, Time, your Body.

I have discovered that my brain all but shuts down and my body demands sleep. Me being who I am and not used to the undiscovered world of sleep naturally oppose and try to protest what my body insist is inevitable.

I love my job, I love the excitement of Real Estate. When I am forced to slow down I always feel a little useless and sort of voided in a way.

I guess this means I need to actually rest so I can be useful to all those clients that will and are depending on me to be my best 100% of the time? Not to mentions my Family who is the most important.