63% of International Buyers Pay Cash

63% of International Buyers Pay Cash

63% of International Buyers Pay Cash

63% of International Buyers Pay Cash

10 Tips for Moving With Pets

Moving to a new home can be stressful on your pets, but there are many things you can do to make the process as painless as possible. Experts at The Pet Realty Network in Naples, Fla., offer these helpful tips for easing the transition and keeping pets safe during the move.

1. Update your pet’s tag. Make sure your pet is wearing a sturdy collar with an identification tag that is labeled with your current contact information. The tag should include your destination location, telephone number, and cell phone number so that you can be reached immediately during the move.
2. Ask for veterinary records. If you’re moving far enough away that you’ll need a new vet, you should ask for a current copy of your pet’s vaccinations. You also can ask for your pet’s medical history to give to your new vet, although that can normally be faxed directly to the new medical-care provider upon request. Depending on your destination, your pet may need additional vaccinations, medications, and health certificates. Have your current vet's phone number handy in case of an emergency, or in case your new vet would like more information about your pet.
3. Keep medications and food on hand. Keep at least one week’s worth of food and medication with you in case of an emergency. Vets can’t write a prescription without a prior doctor/patient relationship, which can cause delays if you need medication right away. You may want to ask for an extra prescription refill before you move. The same preparation should be taken with special therapeutic foods — purchase an extra supply in case you can't find the food right away in your new area.
4. Seclude your pet from chaos. Pets can feel vulnerable on moving day. Keep them in a safe, quiet, well-ventilated place, such as the bathroom, on moving day with a “Do Not Disturb! Pets Inside!” sign posted on the door. There are many light, collapsible travel crates on the market if you choose to buy one. However, make sure your pet is familiar with the new crate before moving day by gradually introducing him or her to the crate before your trip. Be sure the crate is well-ventilated and sturdy enough for stress-chewers; otherwise, a nervous pet could escape.
5. Prepare a first aid kit. First aid is not a substitute for emergency veterinary care, but being prepared and knowing basic first aid could save your pet's life. A few recommended supplies: Your veterinarian's phone number, gauze to wrap wounds or to muzzle your pet, adhesive tape for bandages, non-stick bandages, towels, and hydrogen peroxide (3 percent). You can use a door, board, blanket or floor mat as an emergency stretcher and a soft cloth, rope, necktie, leash, or nylon stocking for an emergency muzzle.
6. Play it safe in the car. It’s best to travel with your dog in a crate; second-best is to use a restraining harness. When it comes to cats, it’s always best for their safety and yours to use a well-ventilated carrier in the car. Secure the crate or carrier with a seat belt and provide your pet with familiar toys. Never keep your pet in the open bed of a truck or the storage area of a moving van. In any season, a pet left alone in a parked vehicle is vulnerable to injury and theft. If you’ll be using overnight lodging, plan ahead by searching for pet-friendly hotels. Have plenty of kitty litter and plastic bags on hand, and keep your pet on its regular diet and eating schedule.
7. Get ready for takeoff. When traveling by air,check with the airline about any pet requirements or restrictions to be sure you’ve prepared your pet for a safe trip. Some airlines will allow pets in the cabin, depending on the animal’s size, but you’ll need to purchase a special airline crate that fits under the seat in front of you. Give yourself plenty of time to work out any arrangements necessary including consulting with your veterinarian and the U.S. Department of Agriculture. If traveling is stressful for your pet, consult your veterinarian about ways that might lessen the stress of travel.
8. Find a new veterinary clinic and emergency hospital. Before you move, ask your vet to recommend a doctor in your new locale. Talk to other pet owners when visiting the new community, and call the state veterinary medical association (VMA) for veterinarians in your location. When choosing a new veterinary hospital, ask for an impromptu tour; kennels should be kept clean at all times, not just when a client’s expected. You may also want to schedule an appointment to meet the vets. Now ask yourself: Are the receptionists, doctors, technicians, and assistants friendly, professional and knowledgeable? Are the office hours and location convenient? Does the clinic offer emergency or specialty services or boarding? If the hospital doesn’t meet your criteria, keep looking until you’re assured that your pet will receive the best possible care.
9. Prep your new home for pets. Pets may be frightened and confused in new surroundings. Upon your arrival at your new home, immediately set out all the familiar and necessary things your pet will need: food, water, medications, bed, litter box, toys, etc. Pack these items in a handy spot so they can be unpacked right away. Keep all external windows and doors closed when your pet is unsupervised, and be cautious of narrow gaps behind or between appliances where nervous pets may try to hide. If your old home is nearby, your pet may try to find a way back there. To be safe, give the new home owners or your former neighbors your phone number and a photo of your pet, and ask them to contact you if your pet is found nearby.
10. Learn more about your new area. Once you find a new veterinarian, ask if there are any local health concerns such as heartworm or Lyme disease, or any vaccinations or medications your pet may require. Also, be aware of any unique laws. For example, there are restrictive breed laws in some cities. Homeowner associations also may have restrictions — perhaps requiring that all dogs are kept on leashes. If you will be moving to a new country, carry an updated rabies vaccination and health certificate. It is very important to contact the Agriculture Department or embassy of the country or state to which you’re traveling to obtain specific information on special documents, quarantine, or costs to bring the animal into the country.

 Source: The Pet Realty Network

Groups to Study Asian-American Home Ownership Rates

Daily Real Estate News | Wednesday, August 14, 2013

REALTOR® University Center for Real Estate Studies and the Asian Real Estate Association of America have partnered to study Asian-American home ownership and learn more about housing market preferences among Asian immigrant groups.
The university, created by the National Association of REALTORS®, with work with the trade group to study how Asian immigrants use their homes and businesses to better understand their housing market preferences. The results of the study are expected to be released in 2014.
Asian-Americans are the fastest growing racial and ethnic group in the United States and are expected to be a “large source of future housing demand,” according to REALTOR® University and AREAA. There are nearly 19 million Asian-Americans nationwide.
The current home ownership rate of Asian-Americans is 55 percent, which is behind the total population’s home ownership rate of 65 percent.
“REALTOR® University’s mission is to help bring value to home buyers, sellers, and real estate professionals, and so we are pleased to be partnering with AREAA to undertake this new research to advance Asian-American home ownership and real estate investment,” says Richard Rosenthal, chairman of the University Board of Regents.

Existing Home Owners Move in on Market

Daily Real Estate News | Monday, July 29, 2013

Existing home owners are taking a bigger share of the housing market while investors—who have been the powerhouse until late—are slowly retreating.
“A sustainable housing market typically includes a more balanced share of first-timers, move-up buyers and investors, and that's how the housing recovery is beginning to shake out,” Realty Times reports.
Taking the lead: Current home owners—whether move-up, move-down, or move-over buyers—accounted for nearly 45 percent of the market share in home sales in June, up from 43.8 percent in May, reports the Campbell/Inside Mortgage Finance HousingPulse.  Recent home price gains and the return of equity is prompting more to make the move, particularly as concerns rise that mortgage rates may soon cut into housing affordability.
Meanwhile, first-time home buyers are still being held back, with a slight drop in their market share from 36 percent in May to 35.7 percent in June, according to HousingPulse. Rising housing costs and mortgage rates as well as toughening up of lending standards have continued to shut out some first-timers.
The investor share in home purchases dropped to 19.7 percent in June from 23.1 percent share in February. It’s the lowest level recorded since September 2012, HousingPulse reports. Rising home prices and fewer distressed homes are prompting more investors to pull out of the market, which they had been dominating up until recently.
Source: “Shifting Share of Homebuyers Supports Sustainable Recovery,” Realty Times (July 26, 2013)

10 Markets Where More Buyers Bring Cash

10 Markets Where More Buyers Bring Cash

Daily Real Estate News | Friday, July 26, 2013

Home buyers who require financing for their home purchase can struggle to compete against buyers who have offers of all-cash.
Where are all-cash deals are the most prevalent? Cash deals represented 80 percent of home sales in June in Vermont; 58 percent in Nevada; 57 percent in Florida, and 51 percent in New York, according to RealtyTrac. Cash deals represent a very small percentage in Texas, Utah, and New Mexico.
The markets with the most all-cash transactions tend to have a high number of foreclosures and depressed home prices, which attracts investors and private equity firms, according to RealtyTrac.
The following 10 metros had 40 percent or more all-cash deals out of the total home sales in June, according to RealtyTrac:

1. Miami/Ft. Lauderdale: 64%
2. Las Vegas: 62%
3. Tampa, Fla.: 58%
4. Detroit: 56%
5. Orlando: 53%
6. New York: 49%
7. New Orleans: 43%
8. Memphis: 43%
9. Jacksonville, Fla.: 42%
10. Atlanta: 42%

Short Sale Stigma Surfacing?

Short Sale Stigma Surfacing?

Daily Real Estate News | Wednesday, July 24, 2013

In markets with high foreclosure rates, a short sale stigma may exist, and short sales may not be as sought among home buyers. Brokers may be at an advantage if they state in the listing that the nondistressed home they’re selling is “not a short sale,” suggests a new study, which evaluated 5,000 home sales in Boca Raton, Fla.
Homes listed as “not short sales” sold for 2 to 5 percent more than nondistressed homes that did not state that. Homes listed as “not a short sale” also sold faster, selling about 10 to 15 percent faster than other similar properties, according to the study’s author Ken H. Johnson, an associate professor at the Tibor and Sheila Hollo School of Real Estate at Florida International University in Miami.
"In some areas, buyers are probably starting to believe that short sales mean a big hassle because they've heard horror stories about waiting months for one or more banks to sign off on the deal," Johnson says.
Johnson notes that the study’s findings speak to that particular local market in Boca Raton, “but I think you can extrapolate to other areas where we've seen a lot of distressed properties and foreclosures in the last few years," says Johnson. "What we found is that, in those affected areas, there is a short sale stigma."
Source: “When ‘Not a Short Sale’ Is a Selling Point,” Bankrate.com (July 2013)
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Did Cash Buyers Save the Housing Market?

Did Cash Buyers Save the Housing Market?

Daily Real Estate News | Wednesday, July 17, 2013

Cash real estate sales have risen the last few years to some of the highest levels on record, and a new report by CoreLogic suggests that these sales heavily helped to contribute to stabilizing the residential housing market and leading it into recovery.
In the early 2000s, cash sales averaged 25 percent of home sales. But in 2007 and 2008, cash sales began to rise as foreclosures started to increase. By 2012, cash sales were making up 40 percent of sales and have since inched down to 39 percent as of May 2013.
“Without cash sales overall, sales today would be much lower and the price declines would have been worse,” Mortgage News Daily reports about CoreLogic’s findings. “More recently, cash sales have helped fuel price increases dramatically in several boom and bust markets. Median prices for cash sales are up 24 percent from a year ago while prices of sales generally have increased 15 percent.”
The rise in home prices will lead to a lower presence of cash sales as investor activity returns to more traditional levels, CoreLogic notes. With cash sales receding in recent months, first-time and trade-up home buyers will need to step in to keep the recovery expanding, CoreLogic notes.
Source: “Cash Sales Saved Housing Market -CoreLogic,” Mortgage News Daily (July 16, 2013)

Foreclosures Down 29% From Year Ago

Foreclosures Down 29% From Year Ago

Daily Real Estate News | Wednesday, July 10, 2013

Foreclosures are continuing a steady fall, as home prices rise and the housing market picks up nationwide.
About 1 million homes were in some stage of foreclosure in May, down from 1.4 million in May 2012, a 29 percent decline, according to CoreLogic’s latest foreclosure report. As of May, the foreclosure inventory represented 2.6 percent of all homes with a mortgage -- down from 3.5 percent a year prior.
There were 52,000 foreclosures completed nationwide in May, down 27 percent year over year. However, the numbers are still elevated compared to what’s considered normal for the market. Prior to the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month between 2000 and 2006, according to CoreLogic.
Since September 2008 -- the start of the financial crisis -- about 4.4 million foreclosures have been completed, CoreLogic’s data shows.
Meanwhile, shadow inventory is down 34 percent from reaching its 2010 peak. It was under 2 million units in April, representing a 5.3 month supply.
“We continue to see a sharp drop in foreclosures around the country and, with it, a decrease in the size of the shadow inventory,” says Anand Nallathambi, president and CEO of CoreLogic. “Affordability, despite the rise in home prices over the past year, and consumer confidence are big contributors to these positive trends. We are particularly encouraged by the broad-based nature of the housing market recovery so far in 2013.”
The stock of seriously delinquent homes, which is the main driver of shadow inventory, is at the lowest level since December 2008, adds Mark Fleming, chief economist for CoreLogic.  “Over the last year, it has decreased in 42 states by double-digit figures, resulting in rapid declines in shadow inventory for the first quarter of 2013,” Fleming says.
The following five states account for nearly half of all completed foreclosures nationally and had the highest number of completed foreclosures in the last 12 months ending in May:

• Florida
• California
• Michigan 
• Texas
• Georgia

Source: CoreLogic

Will Rising Mortgage Rates Cool the Market?

Will Rising Mortgage Rates Cool the Market?

Daily Real Estate News | Tuesday, July 09, 2013

A big jump in mortgage rates over the past two months may start to cool the rapid rise of home prices in the second half of the year, The Wall Street Journal reports.
Mortgage rates have shot up from lows of 3.59 percent in the beginning of May, to 4.58 percent during the last week of June, according to the Mortgage Bankers Association. Rates are at their highest levels in two years.
“A rule of thumb holds that every one percentage point increase in interest rates reduces affordability by 10 percent, so the recent move in rates just made homes about 10 percent more expensive to buyers who need to finance their purchase,” The Wall Street Journal reports.
Still, economists say mortgage rates at 4.5 percent or 5 percent is still very affordable by historical standards. Merrill Lynch analysts say that home prices would have to rise by 20 percent or mortgage rates would have to soar to around 6 percent to chip away at housing’s affordability.
Some economists see rising mortgage rates as a positive. John Burns, chief executive of John Burns Real Estate Consulting, says that rising rates produce more sustainable price increases. “I don’t think it’s the end of price increases, but I think they’re going to moderate significantly,” Burns told The Wall Street Journal.
Source: “Why Home-Price Gains Will Slow Amid Higher Mortgage Rates,” The Wall Street Journal (July 8, 2013)

All-Cash Offers Make Home Buying Competitive

All-Cash Offers Make Home Buying Competitive

Daily Real Estate News | Tuesday, July 02, 2013

All-cash offers accounted for 33 percent of home sales, according to the National Association of REALTORS®' May 2013 REALTORS® Confidence Index. The majority of those all-cash offers are coming from investors and international home buyers.
All-cash offers can represent stiff competition for traditional buyers. For example, first-time home buyers, who are already facing low inventories and rising home prices, view all-cash offers as one of their biggest competitions in the market today.
But for a seller, an all-cash deal is attractive, cutting out potential obstacles in making it to closing. "If you own a home and are selling yourself, it's probably easier if someone pays you cash -- it cuts out the messiness and having the home buyer get approved for a loan,” says Patrick Newport, U.S. economist at IHS Global Insights.
A high number of all-cash offers in the housing market can “signal a housing market that people are more willing to invest in,” says William Delwiche, investment strategist at Baird Research & Insights.
"A lot of those cash investors are looking for a return," says Karen Dynan, vice president and co-director of economic studies at the Brookings Institute. "If a lot of people think home prices will rise, they will put money into the market, and that increases demand and pushes up prices."
Cash-buying can be good for the economy, providing it with a short-term boost. It “helps to bid up asset values for houses, and is good for home owners who already own houses," Delwiche says. "There is also a benefit to state and local government finances because of the taxes associated with these purchases."
Source: “All-Cash Offers: Healthy for Real Estate Market, or a Hindrance?” FOX Business (June 28, 2013)

Investors Take a More Cautious Approach

Daily Real Estate News | Thursday, June 27, 2013

Investors are growing cautious over rapid home price appreciation in some markets and the potential for lower affordability, according to a report by Bank of America Merrill Lynch.
While investors have been credited with helping to stabilize the housing market when it was down, they may start to retreat from the market, leaving opportunities for other home buyers to step in.
Investor demand has been shrinking as the number of distressed homes shrinks. Investors mostly targeted the hardest hit housing markets to take advantage of low home prices. Investor transactions make up the highest share of total transactions in Miami, according to first-quarter data from RadarLogic.
"This will be part of the transition back to a more normal housing market, but also another reason to expect slowing price appreciation in coming years," writes Chris Flanagan, Michelle Meyer and Justin Borst, mortgage-backed securities strategists for Bank of America Merrill Lynch. "The dynamics of investor buying and their subsequent sales will be important to monitor over the coming years.”

Home Prices Rising at ‘Unsustainable’ Rate

Daily Real Estate News | Friday, June 21, 2013

Home prices have been soaring by double digits compared to last year’s numbers and the National Association of REALTORS® are calling the rises “unsustainable.”
The price for existing home sales surged 15.4 percent higher in May compared to last year.
"Some of the increases can be explained by the fact that it is recovering from an over-corrected situation," says Lawrence Yun, NAR chief economist. "But with people's income rising at only 1 or 2 percent and prices rising in double digits, it cannot continue.”
The price discounts for bank-owned homes are vanishing rapidly, says Rick Sharga of Carrington Mortgage Holdings. Prices of distressed homes — particularly in markets like California, Arizona, and Florida — are rising faster than traditional home prices.
"You can at least make an argument that part of the dramatic increase in median home prices can be attributed to the foreclosure discount evaporating,” Sharga says. “That suggests that overall home price increases may be slightly overstated.”
However, according to NAR’s latest report, more expensive homes are seeing higher price rises. For example, homes priced at more than $500,000 have had prices soar 33 percent in the last year while homes priced below $100,000 have had prices down 9 percent year-over-year.
Source: “Home Price Rise ‘Unsustainable,’ Realtors Report Says,” CNBC (June 20, 2013)
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Home Prices Soar to Largest Gain in 7 Years

Home Prices Soar to Largest Gain in 7 Years

Daily Real Estate News | Wednesday, June 05, 2013

The housing recovery has picked up speed, as home prices posted their highest year-over-year gain since February 2006, according to the latest housing data from CoreLogic.
CoreLogic's home price index climbed 12.1 percent in April over year-ago levels. Home prices have been on the rise for more than a year.
"The pace of the housing market recovery quickened in April as home prices rose across the U.S.," says Anand Nallathambi, CoreLogic's chief executive officer. "We expect this trend to continue, bolstered by tight supplies and pent-up buyer demand."
CoreLogic economists predict home prices will rise another 2.7 percent in May.
The following five states had the largest price gains over the past year:

• Nevada: +24.6%
• California: +19.4%
• Arizona: +17.3%
• Hawaii: +17%
• Oregon: +15.5%

Source: “April home prices see biggest yearly gain in seven years: CoreLogic,” Reuters (June 4, 2013) and “U.S. Home Prices In April Jumped Most in 7 Years,” Th

4 Big Drivers of the Housing Market Recovery

Daily Real Estate News | Thursday, May 23, 2013

The Wall Street Journal highlighted four primary reasons why the housing market recovery is strong. They are:

• Sales have made big leaps from year-over-year levels. Existing-home sales are up 9.7 percent compared to one year ago. Sales are at an annual rate of 4.97 million, which is the highest level since November 2009, according to NAR. Despite constrained inventories and recent price gains, home sales continue to post increases. 
• Non-distressed home sales are increasing. Home buyers are showing high demand for non-distressed homes. In April, about 18 percent of sales were in foreclosure or a short sale — down from 28 percent year-over-year. 
• Inventories have increased. In April, the number of homes for sale rose 11.9 percent from March. The limited supply — mixed with rising buyer demand — has helped home prices to rise around 10 percent year-over-year. “Rising inventory should ultimately slow some of the price rally while boosting sales volumes, helping to restore equilibrium in the housing market,” The Wall Street Journal reports. 
• Homes are selling a lot quicker. About half of all homes that were sold in April were on the market for 46 days, down from 83 days one year earlier, according to NAR data. 

Source: “Four Reasons Why Home Sales Are Looking Healthy,” The Wall Street Journal (May 22, 2013)

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Existing-Home Sales and Prices Continue to Rise

Daily Real Estate News | Thursday, March 21, 2013

February existing-home sales and prices affirm a healthy recovery is underway in the housing sector, according to the National Association of REALTORS®. Sales have been above year-ago levels for 20 consecutive months, while prices show 12 consecutive months of year-over-year price increases.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.8 percent to a seasonally adjusted annual rate of 4.98 million in February from an upwardly revised 4.94 million in January, and are 10.2 percent above the 4.52 million-unit level seen in February 2012. February sales were at the highest level since the tax credit period of November 2009.

Economic Recovery

Lawrence Yun, NAR chief economist, said conditions for continued housing improvement are at play. “Job growth in the improving economy and pent-up demand are causing both home sales and rental leasing to rise. Though home prices are rising much faster than rents, historically low mortgage rates are still making home purchases affordable,” he said. “The only headwinds are limited housing inventory, which varies greatly around the country, and credit conditions that remain too restrictive.”
Total housing inventory at the end of February rose 9.6 percent to 1.94 million existing homes available for sale, which represents a 4.7-month supply at the current sales pace, up from 4.3 months in January, which was the lowest supply since May 2005.Listed inventory is 19.2 percent below a year ago when there was a 6.4-month supply.
The national median existing-home price for all housing types was $173,600 in February, up 11.6 percent from February 2012. The last time there were 12consecutive months of year-over-year price increases was from June 2005 to May 2006. The February gain is the strongest since November 2005 when it was 12.9 percent above a year earlier.
“A strong rise in home values is contributing to housing wealth recovery, which has risen by $1.4 trillion in the past year and looks to top that increase this year,” Yun said. “The extra consumer spending arising from growth in housing wealth is expected to be $70 billion to $110 billion this year.”
Distressed homes — foreclosures and short sales — accounted for 25 percent of February sales, up from 23 percent in January but down from 34 percent in February 2012. Fifteen percent of February sales were foreclosures, and 10 percent were short sales. Foreclosures sold for an average discount of 18 percent below market value in February, while short sales were discounted 15 percent.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.53 percent in February from 3.41 percent in January; it was 3.89 percent in February 2012.
NAR President Gary Thomas said interest rates remain extraordinarily low. “In the history of mortgage interest rates since 1971, the 30-year fixed rate has been below 4 percent in only 15 months, and those have all been in the past 15 months,” he said. “Even with rising home prices, affordability remains historically favorable because home prices over-corrected during the downturn. This means there is still great value for buyers in the current market.”

Who’s Buying and Selling?

The median time on market for all homes was 74 days in February, which is 24 percent below 97 days in February 2012. Short sales were on the market for a median of 101 days, while foreclosures typically sold in 52 days and non-distressed homes took 77 days. One out of three homes sold in February was on the market for less than a month.
First-time buyers accounted for 30 percent of purchases in February, unchanged from January; they were 32 percent in February 2012.
All-cash sales were at 32 percent of transactions in February, up from 28 percent in January; they were 33 percent in February 2012. Investors, who account for most cash sales, purchased 22 percent of homes in February, up from 19 percent in January; they were 23 percent in February 2012.
“There was an upward bump in the shares of investor and all-cash closed purchases in February. These sales result from purchase offers during the holidays when shopping activity by traditional home buyers slows, but investors, who typically pay cash, remained active,” Yun said. “This is a seasonal pattern, but we’re now seeing a general increase in buyer traffic, which is 25 percent above a year ago.”
Single-family home sales slipped 0.2 percent to a seasonally adjusted annual rate of 4.36 million in February from an upwardly revised 4.37 million in January, but are 8.7 percent above the 4.01 million-unit pace in February 2012. The median existing single-family home price was $173,800 in February, which is 11.3 percent higher than a year ago.
Existing condominium and co-op sales rose 8.8 percent to an annualized rate of 620,000 in February from 570,000 in January, and are 21.6 percent above the 510,000-unit level a year ago. The median existing condo price was $172,500 inFebruary, up 13.9 percent from February 2012.

Performance by Region

Regionally, existing-home sales in the Northeast fell 3.1 percent to an annual rate of 630,000 in February but are 8.6 percent above February 2012. The median price in the Northeast was $238,800, which is 7.6 percent above a year ago.
Existing-home sales in the Midwest slipped 1.7 in February to a pace of 1.14 million but are 12.9 percent above a year ago. The median price in the Midwest was $129,900, up 7.7 percent from February 2012.
In the South, existing-home sales increased 2.6 percent to an annual level of 2.01 million in February and are 14.9 percent above February 2012. The median price in the South was $150,500, up 9.3 percent from a year ago.
Existing-home sales in the West rose 2.6 percent to a pace of 1.20 million in February and are 1.7 percent above a year ago. With limited choices and multiple bidding, the median price in the West rose to $237,700, which is 22.7 percent above February 2012.
Source: NAR

What Home Buyers Really Want in 2013

Daily Real Estate News | Monday, March 04, 2013

Home buyers want energy efficiency, according to a new study released by the National Association of Home Builders titled, “What Home Buyers Really Want.” Four of the top-ranked home features involve saving energy.
For example, 94 percent of buyers surveyed say they want energy-star rated appliances. Ninety-one percent said they want the whole home to boast an energy-star rating. What’s more, 89 percent said they wanted energy-star rated windows and 88 percent desire ceiling fans, according to the survey.
Home buyers are also paying more attention to the laundry room in homes. Fifty-seven percent consider a laundry room “essential” in a home and nearly every home buyer surveyed say they want one in their home.
Organization is also big for home buyers. All ranking high on their wish-lists: A linen closet in the bathroom, space in the garage to put sports equipment and gardening tools, and a walk-in pantry in the kitchen.
Meanwhile, what do buyers show little preference for? About 43 percent say they do not want a two-story family room, and 38 percent say they don’t want a two-story entry foyer. More buyers view these open spaces as less energy efficient, so they’re no longer as highly rated.
Source: “What Do Home Buyers Really Want?” RISMedia (March 3, 2013)

Foreclosed Home Owners Seek Second Chance

Daily Real Estate News | Monday, February 25, 2013

Former home owners who once walked away from their homes in a move called “strategic default” are back on the market, eager to buy a home again.
Nearly 80 percent of strategic defaulters say they want to buy a home again within the next 12 months, according to a survey by YouWalkAway.com, a web site that helps borrowers in the legal pitfalls of strategic default.
The market potential for these comeback home owners could be huge: The number of eligible home buyers who have a foreclosure on their record will reach 1.5 million by the first quarter of 2014, according to data by Moody’s analytics.
Borrowers who defaulted on their mortgage during the recent recession may fare better at qualifying for a loan again than those who defaulted on multiple credit accounts and auto loans too, according to a study by TransUnion conducted in 2011.
"There appears to be a pocket of opportunity among mortgage-only defaulters that is not the result of excess liquidity, but rather the unique circumstances of the recent recession," says Steve Chaouki, group vice president in TransUnion's financial services business unit. "This new market segment that the recession created is an important one for lenders to understand. They have the potential, today, to be stronger and more reliable customers."
Still, some comeback home owners will have to wait. For example, the Federal Housing Administration requires home owners who faced a foreclosure to wait three years before they can buy again while Fannie Mae and Freddie Mac require up to seven years for a strategic defaulter to wait to apply for a mortgage again.
Source: “They Bailed on Mortgage, but Now Wa

OMG!!   This country is good to adopt second chance, that make people strong and keep going.

5 Best Markets for Home Sellers

Daily Real Estate News | Tuesday, February 19, 2013

Spring buying season is just around the corner, and sellers have gained an advantage in more markets across the country this year. With less competition from falling inventories, list prices have risen in many areas. Realtor.com recently identified the five best places to sell in 2013:

1. Sacramento, Calif.: Inventories have declined here by 67.20 percent in January year-over-year while median prices have increased 40.2 percent. 
2. San Jose, Calif.: Median prices have risen nearly 25 percent year-over-year, and it ranks fourth in the inventory for tightest inventory. A strong economy is giving a boost to rents and home prices. 
3. San Francisco: Inventory shortages have created a seller’s market here with list prices rising more than 20 percent in the last year. 
4. Phoenix-Mesa, Ariz.: List prices have risen 23.59 percent year-over-year, while inventories have fallen nearly 16 percent. 
5. Washington, D.C.: List prices have increased about 16 percent in the past year, while inventories have fallen 30.77 percent. Washington, D.C. is one of the country’s priciest markets with a median price of $429,000. 

Source: “Asheville, NC Tops Best Places To Buy In 2013,” Realtor.com (Feb. 14, 2013)

For-Sale Home Inventories Remain Tight

Daily Real Estate News | Monday, February 18, 2013

Inventory levels in 2012 reached an 11-year low and fell yet again last month, further limiting the number of homes for sale nationwide. Inventories of for-sale homes were down by 16.5 percent in January year-over-year, and fell 5.6 percent from December, according to the latest data compiled from Realtor.com.
Inventories typically fall in December and January in preparation of the spring buying season.
“But the shortage of homes for sale in a growing number of U.S. markets is maddening for would-be buyers who frequently complain that there aren’t enough good choices,” The Wall Street Journal reports. “Bidding wars are becoming more common.”
At a time when buyer demand is strong, inventories remain constrained as banks slow their pace of foreclosures and home owners delay selling until they regain more equity in their homes.
Metro areas posting some of the largest monthly declines in inventory levels are San Francisco (where inventory levels are down by 21 percent in January compared to December and down 47 percent year-over-year) as well as Seattle (where levels dropped 9 percent from December). The two have also seen some of the largest price increases in the nation. Median asking prices have risen by 16.4 percent and 23.7 percent in those places, respectively.
Source: “Housing Inventory, Already Low, Dropped Further in January,” The Wall Street Journal (Feb. 14, 2013)

10 Best Markets for Home Sellers

Daily Real Estate News | Friday, February 15, 2013

ZipRealty, a real estate brokerage company, is finding more housing markets starting to tilt in sellers’ favors.
For the average home in the U.S., the gap between the listing price and closing price is narrowing with sellers able to get more than 98 percent of their home’s listing price back. Also, the median days a home is spending on the market also is falling, dropping to 44 days nationwide in 2012 — a 23 percent decline from 2011, according to ZipRealty’s report.
“A limited inventory of homes on the market, combined with the extremely low cost of mortgage financing, has resulted in homes selling above asking price in many western markets, boosting the average listing to closing price ratio,” says Lanny Baker, ZipRealty’s CEO and president.
ZipRealty has identified the following 10 best housing markets for sellers, based on the list-to-close price ratios:

1. San Francisco (102.5)
2. San Diego (101.3)
3. Sacramento, Calif. (100.9)
4. Las Vegas (100.7)
5. Los Angeles (100)
6. Orange County, Calif. (100)
7. Denver (99.8)
8. Tucscon, Ariz. (99.3)
9. Portland (98.9)
10. Seattle (98.3)

Source: ZipRealty

10 Metros That Attract the Wealthy

Daily Real Estate News | Tuesday, February 12, 2013

The suburbs have the highest concentration of wealthy people, more so than cities, according to new U.S. Census Bureau data.
The wealthy tend to stay near major population centers, according to the study. For example, the region with the highest concentration of wealthy households in the nation is Bridgeport-Stamford-Norwalk, Conn., which is just north of New York City. Nearly 18 percent of residents there make more than $191,469 per year. In the nation, only 5 percent make that income.
The following are the 10 metros with the highest concentration of high-income households, as well as the percentage in each area where households are among the top 5 percent of U.S. incomes. (The study did not take into account the cost of living in these areas.)

1. Bridgeport-Stamford-Norwalk, Conn.: 17.9%
2. San Jose-Sunnyvalle-Santa Clara, Calif.: 15.9%
3. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.: 14.1%
4. San Francisco-Oakland-Fremont, Calif.: 13%
5. Trenton-Ewing, N.J.: 11.6%
6. New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.: 10%
7. Oxnard-Thousand Oaks-Ventura, Calif.: 9.7%
8. Boston-Cambridge-Quincy, Mass.-N.H.: 9.7%
9. Boulder, Colo.: 9.4%
10. Napa, Calif.: 9.3%

Source: “Where the Rich People Live,” CNNMoney (Feb. 12, 2013)

8 Metros With Big Foreclosure Deals

8 Metros With Big Foreclosure Deals

Daily Real Estate News | Friday, February 08, 2013

Foreclosures tend to sell at big discounts compared to other properties. Business Insider culled RealtyTrac data to find metros offering some of the biggest foreclosure deals.
The following eight metros are offering foreclosure savings higher than 45 percent:
Atlanta-Sandy Springs-Marietta, Ga.
Foreclosure savings: 45.64 percent
Average foreclosure sales price: $113,385

Boston-Cambridge-Quincy, Mass.-N.H.
Foreclosure savings: 45.76 percent
Average foreclosure sales price: $231,388

 Toledo, Ohio
Foreclosure savings: 45.91 percent
Average foreclosure sales price: $64,072

Springfield, Mass.
Foreclosure savings: 45.99 percent
Average foreclosure sales price: $115,409

San Francisco-Oakland-Fremont, Calif.
Foreclosure savings: 46.09 percent
Average foreclosure sales price: $350,160
Milwaukee-Waukesha-West Allis, Wis.
Foreclosure savings: 46.55 percent
Average foreclosure sales price: $111,225
Columbus, Ohio
Foreclosure savings: 46.79 percent
Average foreclosure sales price: $99,846
Memphis, Tenn.
Foreclosure savings: 47.82 percent
Average foreclosure sales price: $82,186
Source: “12 Cities Where You Can Buy a Foreclosed Home for Half Price,” Business Insider (February 2013)

Is a 'Mini' Foreclosure Wave Coming?

The housing market has made big gains in recent months with sales and prices, but a surge in foreclosures may soon strike again.
Foreclosures are down 18 percent year-over-year, and the threat has lessened in recent months. But the latest agreement between the Federal Reserve/Comptroller of the Currency and the 10 largest mortgage servicers is expected to create a “mini-wave” of foreclosures soon, RISMedia reports.
In the latest agreement, mortgage servicers will be ending reviews of loans that were foreclosed in 2009 and 2010. But, in exchange, they must pay $8.5 billion to eligible home owners in loan assistance. The latest agreement also provides incentives so servicers will favor loan modifications and principal pay-downs over foreclosing on home owners.
“The settlement will likely increase the pace of foreclosures that have been caught up due to a lengthy review process over the next 12 months,” RISMedia reports. Foreclosures often create downward pressure on overall home values.
Source: “Housing Recovery Is Real but Risks Remain,” RISMedia (Feb. 5, 2013)

List of Improving Housing Markets Expands

Daily Real Estate News | Thursday, February 07, 2013

The list of improving housing markets grew to 259 in February with all 50 states represented, according to the National Association of Home Builders/First American Improving Markets Index.
The index identifies metro areas that have shown improvement in housing permits, employment, and home prices for at least six consecutive months. More than 70 percent of the 361 metros covered by the index are now on the list, according to David Crowe, NAHB’s chief economist.
Twenty metros were added to the latest list, including places like Rome, Ga.; Fort Wayne, Ind.; Myrtle Beach, S.C.; Albuquerque, N.M.; and Racine, Wis.
"The fact that all 50 states now have at least one metro on the improving list shows that the housing recovery has substantial momentum and continues to expand from one market to the next," says Rick Judson, 2013 NAHB chairman. "Of course, there is still much room for improvement in metros that have not yet been listed as well as those that have, and we know that a key factor slowing this progress is today's overly stringent mortgage standards that are keeping qualified buyers on the sidelines." 

The Best Industry to Work in? Real Estate

The Best Industry to Work in? Real Estate

Daily Real Estate News | Friday, February 01, 2013

Real estate is the best industry to work in nationwide, according to the 2013 Top National Workplaces rankings by WorkplaceDynamics.
Despite real estate professionals facing a “down market for the past five years, they continue to love their jobs and the companies they work for,” according to a press release announcing the results. “REALTORS® and others working in the real estate industry appreciate that they have a great deal of control over their own destiny, a strong connection to their work, and a sense of personal accomplishment each and every day. All of which led them to highly rank their workplaces.”
The survey was conducted with 30 major newspapers across the country. It polled 1 million employees from 872 companies in generating a list of top workplaces in America. Rankings are based on employee responses to survey questions.
The survey of companies also revealed the top 150 companies to work for in America. Quicken Loans was at the top, but several real estate companies made the list, including the following:

• Keller Williams Realty, based in Austin, Texas – (Ranking: #9)
• William Raveis Real Estate, Mortgage & Insurance, based in Shelton, Conn. – (#32)
• Shorewest REALTORS®, based in Brookfield, Wis. – (#35)
• Baird & Warner Inc., based in Chicago, IL – (#43)
• Prudential Fox & Roach REALTORS®, based in Devon, Pa. (#57)

10 Best Places to Buy a Foreclosure in 2013

Daily Real Estate News | Thursday, January 31, 2013

If you’re looking for big foreclosure deals, Florida may offer the most, according to a a new study by RealtyTrac. Palm Bay, Fla., topped its list of the best places to buy a foreclosure in 2013. Foreclosures accounted for nearly 24 percent of all sales in Palm Bay last year, and buyers tended to pay 28 percent less for a home in foreclosure than other homes.
The following are the markets with the high number of foreclosures available and some of the largest price discounts for foreclosures, according to RealtyTrac.

• Palm Bay, Fla.

Average foreclosure discount: 28 percent

• Rochester, N.Y.

Average foreclosure discount: 26 percent

• Albany, N.Y.

Average foreclosure discount: 35 percent

• New York City

Average foreclosure discount: 40 percent

• Lakeland, Fla.

Average foreclosure discount: 15 percent

• Tampa, Fla.

Average foreclosure discount: 27 percent

• Jacksonville, Fla.

Average foreclosure discount: 32 percent

• Poughkeepsie, N.Y.

Average foreclosure discount: 28 percent

• Orlando, Fla.

Average foreclosure discount: 19 percent

• Chicago

Average foreclosure discount: 46 percent
Source: “Best Places to Buy Foreclosures,” CNNMoney (Jan. 31, 2013)

What Will the New ‘Normal’ for Housing Be?

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Daily Real Estate News | Wednesday, January 30, 2013

Mortgage giant Fannie Mae recently offered some predictions of what the housing market’s “normal” will look like in the next two years.
In its report, “Transition to ‘Normal’?”, Fannie says while the housing market has shown improvement, uncertainty remains over both the economy and the real estate market.
"Our forecast is that 2013 and 2014 will exhibit below-potential economic growth,” according to the white paper. “This is despite the fact that we expect the housing rebound will continue and that the economy will benefit from the gradual increased growth of U.S.-based manufacturing, as well as the expansion of domestic energy production.”
The following are some of the projections Fannie made in its report:

• Mortgage rates to stay low: Fannie Mae expects mortgage rates to remain low over the next few years. The mortgage giant expects rates will increase to no more than 4.2 percent by the end of 2014. 
• FHA loans may get more expensive: More costs may be assigned to Federal Housing Administration loans. 
• Refinancing drops: The boom in refinancing may have peaked last year with slower activity projected this year. "We expect 2012 to be seen as the high watermark for refinances and 2013 as the first of several transition years as the housing finance market transitions back to a more normal balance between purchase and refinance activity."
• Foreclosures continue to fall: Fannie expects foreclosures to continue to decline from their peaks as more alternatives to foreclosure are pursued. 
• Housing starts to rise: Fannie Mae predicts that housing starts will increase 23 percent in 2013 -- which would be 60 percent more than the record low in 2010. Fannie expects housing starts won’t reach sustainable levels until 2016. 
• Mortgage originations grow: "Given our expectations of continued improvement in housing starts, home sales, and home prices in 2013,” Fannie Mae writes, “we project that purchase mortgage originations will rise to $642 billion from a forecast of $518 billion in 2012."

Plenty of Bright Spots in Housing, But Threats Remain

Plenty of Bright Spots in Housing, But Threats Remain

Daily Real Estate News | Monday, January 28, 2013

The housing market is showing plenty of strength, from sales and price increases to a decrease in foreclosures.
“There are almost no housing market indicators showing weakness,” says Mark J. Perry, a professor of economics at the University of Michigan-Flint.
Among the recent bright spots:

• Existing-home sales jumped more than 9 percent in 2012, the highest level in five years. 
• New-home construction reached a 54-month high in December 2012. 
• The delinquency and foreclosure rate is at its lowest level in four years. 
• A home remodeling index reached 55 in the first quarter of the 2012, the highest reading since 2004 (readings above 50 indicate a growth in remodeling activity).

Still, the housing market is about 52 percent as strong as it was prior to the 2008 housing crash, according to one housing index by Trulia, which factored in data from the National Association of REALTORS®, U.S. Census construction, and Lender Processing Services.
The housing market faces challenges, such as the number of home owners still facing negative equity, inventories of for-sale homes remaining constrained, and mortgage credit remaining tight and preventing some buyers from qualifying for a loan.
“At this pace, ‘normal’ is still two or three years away,” says Jed Kolko, Trulia chief economist.
Source: “The Housing Market’s Long-term Silver Lining,” MarketWatch (Jan. 25, 2013)

10 Metros Where Homes Are Selling the Fastest

Daily Real Estate News | Friday, January 25, 2013

California listings are seeing some of the shortest times on the market nationwide, according to new data released by Realtor.com. In a couple of markets in that state, listings are averaging about a month or less before being sold.
Nationally, for-sale listings sold in a median 111 days in December 2012, which is about 10 percent below the median at the same time one year ago, according to Realtor.com data.
The following are the 10 metro areas with the shortest median days on the market in December 2012:

1. Oakland, Calif.: 27 days
2. Stockton-Lodi, Calif.: 32
3. Sacramento, Calif.: 45
4. Denver: 54
5. Fresno, Calif.: 55
6. Bakersfield, Calif.: 61
7. Phoenix-Mesa, Ariz.: 61
8. San Jose, Calif.: 61
9. Riverside-San Bernardino, Calif.: 65
10. San Francisco: 68

Meanwhile, some of the metros with listings that linger the most days on the market are in the coastal areas of the Carolinas and other vacation destinations such as Santa Fe, N.M., (153 days) and Ashville, N.C. (146 days).

What’s Behind Falling Housing Inventories?

Daily Real Estate News | Thursday, January 24, 2013

Home prices are increasing across the country as the number of homes for-sale continues to fall. But at a time when buyer demand is picking up, why is inventory still so low?
Inventories fell to 1.82 million at the end of last year, a 21.6 percent drop from one year earlier, the National Association of REALTORS® reports.
The Wall Street Journal recently highlighted several reasons behind the dropping inventories, including:

• Sellers hesitant to sell: About 22 percent of home owners with a mortgage are still underwater, owing more than their home is currently worth. Home owners don’t tend to sell unless a life-changing event occurs when they’re underwater because they don’t want to take a loss on the sale of their house. CoreLogic data shows that inventories are the most constrained in areas with the highest number of underwater borrowers. 
• Not enough equity to trade up: Often times, home owners rely on the equity from their home to make a down payment on their next home. With fewer home owners seeing equity in their houses, they may not have enough money to move into a pricier home, which is constraining the would-be “trade up” buyer from moving. 
• Investors continue to snatch up properties: Investors are snapping up properties, but they’ve changed their strategy from past years, which is also constraining inventories. Now they’re holding onto properties and turning them into rentals instead of rehabbing properties and flipping them for profit. This is keeping fewer homes on the market. 
• Banks are slowing down foreclosures: Banks have new rules to meet with the foreclosure process, and it’s causing them to move at a slower pace in foreclosing on homes. Banks also are showing a preference for short sales and loan modifications, which are curbing the number of foreclosed homes on the market. 
• Builders are doing less building: Housing starts were at record lows from 2009 through 2011 so there’s less inventory being added to the market. A rebound in the new-home market has only recently started to occur.

Short Sale Process Cut in Half or More, Freddie Mac Says

 It is a Good News for Buyer and short sale owners.!!

Daily Real Estate News | Wednesday, January 23, 2013

Short sales are getting much shorter, Freddie Mac says. The mortgage giant launched a Freddie Mac Standard Short Sale program on Nov. 1 that sought to speed up the short sale process and make it easier and more transparent.
"We estimate that the time to complete a short sale will decrease by approximately 50 percent to 75 percent," as a result of the changes, writes Tracy Mooney, Freddie Mac’s EVP in a recent blog post.
Among the changes that took effect Nov. 1, 2012:

• Mortgage servicers have 30 days to make a decision on a short sale once they receive an application. If they need to negotiate with a third party, they have 30 additional days. A final decision on the short sale must be made within 60 days. 
• Mortgage servicers are required to acknowledge they received the short sale application within three days of submission. Servicers must provide weekly status updates if they end up needing more time to review the application past the initial 30-day period.
• Mortgage servicers have authority now to approve short sales when qualifying financial hardships for home owners who are past due or current on their mortgage payments. 
• Mortgage servicers are also now able to approve short sales without seeking a separate review by the mortgage insurance company.
• Following a short sale, home owners may be able to qualify for up to $3,000 in relocation assistance. 

Source: “The Shorter Short Sale: Long on Borrower Benefits,” Freddie Mac Executive Perspectives Blog (Jan. 22, 2013)

Existing-Home Sales Dip in December; Prices Rise

Airticle from WWW.DSNEWS.COM

Existing-home sales fell 1 percent in December to an annual rate 4.94 million, and November sales were revised downward, slipping below 5 million, the National Association of Realtors (NAR) reported Tuesday. Economist had expected the sales pace to improve to 5.1 million from November’s originally reported 5.04 million.

The median price of an existing single-family home rose to $180,800 in December, up 11.5 percent from December 2011, the strongest year-over-year gain since November 2005.

10 Predictions for Housing in 2013

Daily Real Estate News | Thursday, January 17, 2013

The new year could be the best year in real estate in years, but the housing recovery still remains fragile and challenges remain, says Dave Liniger, RE/MAX co-founder and chairman.
Liniger recently offered up some of his predictions for the new year:

1. More buyers and sellers return to the housing market. 
2. Home sales increase 6-7 percent while home prices increase 3-4 percent. 
3. Inventory of for-sale homes will hit bottom. 
4. Higher-priced listings begin to sell more. 
5. The number of distressed properties continues to drop. 
6. The shadow inventory continues to fall. 
7. Short sales rise, reaching a peak. 
8. Mortgage rates rise slightly by year's end from record lows. 
9. Lending remains constrained for home buyers. 
10. Home affordability remains at record highs.  

Well 2013 is good for Real Estate year!!

Are Asking Prices Leveling Off?

Daily Real Estate News | Thursday, January 17, 2013

The national median list price in December was $187,900 — basically the same it was one year ago, and a sign that year-over-year asking prices may be leveling off, according to new housing data from Realtor.com. 
In June 2012, median list prices rose to $195,000. 
“While list prices increased significantly during the first half of the year, they have declined in recent months, with the median list price in December now roughly the same as it was one year ago,” according to Realtor.com. “In addition, a growing number of housing markets — primarily in older industrialized areas — are registering year-over-year list price declines. These potentially off-setting trends and suggest that house price appreciation in the upcoming year is likely to be more moderate than it was in 2012.”
Metros posting some of the largest year-over-year declines in median asking prices were: 

1. Peoria-Pekin, Ill.: -14.29 percent
2. Reading, Pa: -7.84 percent
3. Charleston, W.Va.: -7.78 percent
4. Fort Wayne, Ind.: -7 percent
5. Jersey City, N.J.: -6.68 percent
6. Philadelphia, Pa.-N.J.: -6.36 percent

Still, some markets are outperforming year-over-year and continuing to see big rises in asking prices. For example, California markets continue to see some of the largest year-over-year increases in median list prices, according to Realtor.com. Many of the markets seeing the largest rises to the median list prices also are seeing big inventory declines — sometimes by 40 percent or more year-over-year. 
The 10 metros posting the largest increases to list prices year-over-year, according to Realtor.com, are:

1. Sacramento, Calif.: +42.57 percent
2. Santa Barbara-Santa Maria-Lompoc, Calif.: +35.72 percent
3. San Francisco: +25.04 percent
4. San Jose, Calif.: +23.53 percent
5. Phoenix-Mesa, Ariz.: 21.21 percent
6. Atlanta: +19.93 percent
7. Oakland, Calif.: +17.22 percent
8. Seattle-Bellevue-Everett, Calif.: 16.66 percent
9. Fresno, Calif.: +16.28 percent
10. Riverside-San Bernardino, Calif.: +15.65 percent

It is great improvement in Bay Area's housing market!!

Contact me how I can help with all your Real Estate Needs.

Home Owners Reluctant to Sell; Inventories Fall

Daily Real Estate News | Wednesday, January 16, 2013

Inventory levels of for-sale homes at the end of 2012 were down 17.3 percent from year-ago levels, reaching the lowest level in more than five years, Realtor.com reports. In some areas, inventories have dropped 68 percent over the year.
“It’s been a buyers’ market for a while. Sellers have been reluctant to put their homes on the market,” says Steve Berkowitz, chief executive of Move Inc., which operates Realtor.com. As housing numbers roll out for January and February in the coming weeks, these will be notable to watch because they’ll provide early clues about buyer traffic and sellers’ expectations, Berkowitz says.
For-sale inventories dropped the most year-over-year in December 2012 in the following metros:

• Sacramento, Calif.: -68%
• Stockton-Lodi, Calif.: -65%
• Oakland, Calif.: -64%
• San Jose, Calif.: -52%
• Seattle-Bellevue-Everett, Wash.: -45%
• San Francisco: -43%
• Ventura, Calif.: -43%
• Riverside-San Bernardino, Calif.: -41%
• Los Angeles-Long Beach, Calif.: -40%
• Orange County, Calif.: -39%

Source: Realtor.com and “Housing Inventory Ends Year Down 17%,” The Wall Street Journal (Jan. 16, 2013)

On the other hand, it is good change for seller to sell the house fast and desirable price. Less competition for sellers
 

4 Ways Buyers Can Mess Up a Loan Approval

Daily Real Estate News | Tuesday, January 15, 2013

Your home buyers have gotten approved for a mortgage and now they’re just waiting to make it to the closing table. Make sure they don’t throw their loan approval into jeopardy by making one of these common mistakes:

1. Making a big purchase: Tell your buyers to avoid making major purchases, like buying a new car or furniture, until after they close on the home. Big purchases could change the buyer’s debt-to-income ratio that the lender used to approve the buyer’s home loan and could throw the approval into jeopardy. 
2. Opening new credit: Inform your buyers that now isn’t the time to open up any new credit cards. 
3. Missing any payments: Home buyers need to be extra vigilant about paying all their bills on time, even if they’re disputing one. 
4. Cashing out: Avoid any transfers of large sums of money between your bank accounts or making any undocumented deposits — both of which could send up “red flags” to your buyer's lender.

Source: “How to Keep Your Mortgage Approval Approved,” Realty Times (Jan. 14, 2013)

My suggestion is, do not be relax until recording is confirmed.  

Please contact me for your real estate needs.

 

Obama: Housing

Obama: Housing "Clearly Turning a Corner"

Daily Real Estate News | Monday, January 14, 2013

The housing market has shown signs of “bottoming out nationally and clearly turning a corner,” according to the Obama Administration’s December Housing Scorecard.
Home values are inching up while home sales remain strong. Some home price indexes are showing values up 5.6 percent and 4.3 percent from year ago levels, according to the Scorecard.
“As the December housing scorecard indicates, our housing market is continuing to show important signs of recovery,” says Michael Berman, a HUD senior adviser.
Home inventories are falling, reaching a 4.8-month supply in December compared to November’s 5.3-month supply.
Americans are continuing to see the amount of equity in their homes increase. American home equity grew to $8 trillion in December but is still below the nearly $14 trillion in equity reached prior to the recession.
More than 6 million mortgage modifications and other kinds of housing assistance have taken place between April 2009 and November 2012, helping more home owners stay in their homes, according to the administration.
The housing scorecard is a comprehensive report on the national housing market, released every month by the U.S. Department of Housing and Urban Development and the U.S. Department of Treasury.
To view the complete Housing Scorecard, visit www.hud.gov/scorecard.

First-time Home Buyers Face Greater Competition

 First-time Home Buyers Face Greater Competition

Daily Real Estate News | Friday, January 11, 2013

First-time home buyers are playing a larger role in the housing market, but they’re finding big changes.
Thirty-nine percent of home sales nationwide were from first-time home buyers during the 12-month period ending June 2012, according to the National Association of REALTORS®. That's up from 37 percent a year earlier.
But while first-time home buyers once had a huge inventory of homes to choose from, now they’re finding tightened supplies and steeper competition for what’s left.
Housing inventories are hovering at record lows in many markets, limiting supply. First-time home buyers face increased competition from investors, who are often trying to snatch up the same bargain-priced housing deals. Investors often make all-cash offers, too, which makes it difficult for buyers requiring financing to compete against them. Also, banks have tightened up their underwriting standards, creating more hoops in just qualifying for financing.
It’s not easy to be a first-time home buyer, some say. But first-time home buyers are critical to a healthy housing market. They allow existing home owners to sell and trade up into larger homes.
To respond to the changing housing market, first-time home buyers may need to broaden their search and be more “flexible and compromise,” says Chip Rowand, a Broward County, Fla., real estate professional.
Also, first-timers shouldn’t automatically settle for a Federal Housing Administration mortgage due to the low down payment requirements (usually 3.5 percent of the purchase price). The FHA can have several restrictions that makes some sellers prefer buyers who offer cash or who are using conventional loans, says Stephen B. McWilliam, president of Greater Fort Lauderdale (Fla.) REALTORS®. Some conventional loans require just 5 percent down and so may serve as an option for first-timers.
First-timers also need to be able to act fast and be able to have their financing processed quickly if they are going to stay competitive. Some banks won’t sign off on mortgages for eight to 12 weeks. But some sellers won’t wait that long. Some housing experts suggest first-timers look into working with a community bank or local mortgage banker, which often don’t have as long a wait.
Source: “First-time Home Buyers May Have to Compromise,” Sun Sentinel (Jan. 10, 2013)

Consumers Have High Expectations for Housing Market

Daily Real Estate News | Wednesday, January 09, 2013

Consumers are increasingly optimistic about the direction of home prices, which could offer up enough incentive for those who have been waiting out the market to put their homes up for sale this year, according to Fannie Mae’s December National Housing Survey results.
Consumers expect home prices to rise 2.6 percent in the next year — the highest level since Fannie started conducting the survey in 2010.
“The highest share of consumers in the survey’s two-and-a-half year history expect home prices to increase in the next 12 months,” says Doug Duncan, Fannie Mae’s chief economist. “The view is consistent with Fannie Mae’s expectation that home prices will rise going forward on a national basis. Combined with consumers’ growing mortgage rate and rental price increase expectations, the positive home price outlook could incentivize those waiting on the sidelines of the housing market to buy a home sooner rather than later and thus support continued house acceleration.”
Also, among the survey’s highlights:

• 21 percent of Americans say it’s a good time to sell, which is a 10 percentage point increase over last year. 
• 43 percent of respondents say they think mortgage rates will rise. 
• 49 percent say they believe home rental prices will rise in the next 12 months.

Update on "Fiscal Cliff" legislation

I received e-mail update news letter by C.A.R. President, and said(partially copied)


Here are other housing-related provisions included in the federal law:

• The “Pease Limitations” that reduced the value of itemized deductions, including the mortgage interest deduction, are permanently repealed for most taxpayers but will be reinstituted for high income filers.  This provision reduces a taxpayer's itemized deductions by 3 percent of the amount of his or her adjusted gross income (AGI) that exceeds the threshold amount.  Under the new law, the Pease thresholds are $300,000 for married taxpayers filing jointly and $250,000 for single taxpayers (i.e., a married couple with an AGI of $400,000 would be $100,000 over the threshold; the couple’s deductions would be reduced by $3,000 which is 3% of $100,000).  No matter how high a taxpayer's AGI, the Pease reduction cannot exceed 20 percent of the amount of itemized deductions otherwise allowable for the year.  
• The restoration of a tax deduction for mortgage-insurance premiums, including premiums paid to the Federal Housing Administration and private mortgage insurers.  This provision expired at the end of 2011 but has now been retroactively extended for all of 2012 as well as 2013.
• 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.
• Capital gains rates will remain at 15 percent for those earning less than $400,000 (individual) and $450,000 (joint).   Gains above those income levels will be taxed at 20 percent.  Gains on the sale of principal residences will remain unchanged and continues to exclude the first $250,000 for single taxpayers and $500,000 taxpayers filing jointly.

It is good news!!

Number of Improving Housing Markets Keeps Growing

Daily Real Estate News | Tuesday, January 08, 2013

More metros were added to this month’s Improving Housing Market list, allowing the index to grow in January to 242 metros out of 361 nationwide.
The National Association of Home Builders/First American Improving Market Index identifies areas that have shown growth in housing permits, employment, and home prices for at least six consecutive months. The index was created in September 2011.
Forty-seven new metros were added to January’s list, including areas like Los Angeles; Auburn, Ala.; Des Moines; Nashville; Richmond, Va.; and Cleveland.
"The IMI has almost doubled in the past two months as stronger demand during prime home buying season boosted prices across a broader number of metropolitan areas," says NAHB Chief Economist David Crowe. "Similar home price gains, and hence the IMI, may be tempered in the future as we see data from typically slower months for home sales."  
To view  all 242 metros on the list, visit www.nahb.org/imi.

7 Markets Showing Big Home Price Growth

Daily Real Estate News | Monday, January 07, 2013

Home prices are inching up across the country, as a housing recovery ripples through once hard-hit areas. AOL Real Estate, drawing from Trulia housing data, recently highlighted the top “turnaround housing markets” that have seen the biggest jumps in median home prices in the past year.

1. Las Vegas
   • Median home price for fourth quarter of 2012: $147,000
   • Difference in prices between 2011-2012: +27.5%
2. Seattle
   • Median home price: $299,950
   • Difference in prices between 2011-2012: +24%
3. Phoenix
   • Median home price: $189,000
   • Difference in prices between 2011-2012: +21.8%
4. Oakland, Calif.
   • Median home price: $384,750
   • Difference in prices between 2011-2012: +21%
5. San Jose, Calif.
   • Median home price: $589,950
   • Difference in prices between 2011-2012: +20.8%
6. Salt Lake City
   • Median home price: $159,000
   • Difference in prices between 2011-2012: +18.9%
7. Atlanta
   • Median home price: $159,000
   • Difference in prices between 2011-2012: +18.9%
   
   I think it is about time to buying or selling home now before home price become too high.
   

Mortgage Debt Tax Relief Extended

Daily Real Estate News | Friday, January 04, 2013
A tax break for forgiven mortgage debt that was set to expire Dec. 31 was extended by lawmakers when they dodged the “fiscal cliff” this week.
The tax break, which has been extended to the end of 2013, allows home owners facing short sales, reduced loan principals, or foreclosures to avoid paying taxes on any debt still owed to the bank. Otherwise, the debt would have been taxed by the IRS as income.
The tax break first took effect in 2007.
Home owners had rushed to complete short sales before the end of the year out of fear that the tax break would not be extended.
In Florida, short sales have sold on average for about $103,000 less than what the home owner owed. As such, a typical home seller in that state in, say, the 25 percent tax bracket who completed a short sale in 2013 would have been faced with a $25,725 tax bill if the extension had expired.
Visit REALTOR.org for a complete list of real estate provisions included in the “fiscal cliff” bill.
Source: “Tax Break for Forgiven Mortgage Debt Extended,” Tampa Bay Times (Jan. 3, 2012)

5 Tips for Buyers Who Use Downpayment Gifts

Daily Real Estate News | Thursday, January 03, 2013

About a quarter of first-time home buyers use gifts from relatives to fund a down payment for a home purchase, according to data from the National Association of REALTORS®. But lenders are carefully scrutinizing such gifts.
“Basically, the banks want to make sure that you’re not getting a second loan,” Ray Mignone of Ray Mignone & Associates, a financial planning firm, told The New York Times. “If all of a sudden $50,000 pops into your account, they want to make sure it’s not a loan against the property that they’re going to put a mortgage on.”
In a recent article, The New York Times provided some of the following tips in making make these lenders’ checks and balances go smoother for home buyers:

• Have the money come in a check or wire transfer so that it’s traceable. Lenders often become cautious over cash gifts. 
• Have the giver provide the lender with a gift letter, which verifies the money is a gift, the specific amount being given, the relationship to the borrower, and that repayment is not required. 
• Deposit any gift money into the borrower’s account a few months before applying for a mortgage so the lenders have fewer questions about it, Mignone says. 
• Consider federal gift-tax regulations: Individual gifts of more than $13,000 must be reported to the IRS and are subject to tax. 
• Be aware that certain types of mortgages may limit how much of a down payment you can receive as a gift. For example, with conventional loans, lenders may require at least 5 percent in the borrower’s own money that is not a gift. However, Federal Housing Administration loans — which are popular among first-time home buyers — do not have any limits on gifts and borrowers can use gifts to cover the entire down payment.