Real Estate

Top Real Estate and Mortgage Headlines for September 1st

It’s Wednesday and it’s the start of a new month. Here is today’s top real estate headlines according to the National Association of Realtors.

• Commercial Real Estate Yields Spur Investors
  Capitalization rates averaged 7.22 percent in the second quarter, or 4.29 percentage points higher than the yield on 10-year government bonds.
• Housing Less Likely to Be Wealth Builder
  The markets will stabilize, but some experts doubt that prices will rise faster than inflation.
• Mortgage Applications Slip Slightly
  The purchase index dropped 0.4 percent, but refinancings were up 2.8 percent last week as interest rates continue to fall, according to the Mortgage Bankers Association.
• No Class-Action Status on Phony Appraisals
  A U.S. District Court refused a request for class-action status in a suit by First American Corp. shareholders who said that the stock tanked when the company was charged with colluding with Washington Mutual to inflate appraisals.
• Hyperlocal Focus Is Key to Market Domination
  A multi-pronged approach including online and offline marketing plans and a six-month budget can help agents boost their share of the business.
• Google Invests in Low-Income Housing
  The Internet giant is spending $86 million on a tax-credit fund to finance the construction of 480 affordable housing units.

These are the top real estate and mortgage headlines for today, September 1, 2010.

Want to know how these national real estate headlines could impact you right here locally in Crown Point Indiana? Subscribe to this blog, Today’s Real Estate Reality, and let my years of experience in Crown Point Indiana guide you to an informed and successful real estate transaction.

Top Real Estate Headlines for Week Ending: August 27th

As we all look forward to the weekend, let’s pause for a moment to review what the top real estate and mortgage headlines were this week according to the National Association of Realtors.

• July Existing-Home Sales Fall, But Prices Rise
  Home prices rose in July, though existing-home sales continued their slide following the expiration of the home buyer tax credit.
• Is the Housing Slowdown a Sign of a Double-Dip?
  As unemployment and mounting foreclosures continue to bind the housing market, analysts fear a slide back into recession.
• Foreclosures Down, But Late Payments Up
  The inventory of houses in the process of foreclosure are down for the first time since 2006, but the number of loans that are one payment late went back up.
• Commercial Conditions Favor Business Growth
  Rent discounts and other favorable conditions in commercial real estate markets make it a good time for expansion moves by business, an NAR report suggests.
• 4 Business Tips for Social Networking Success
  Are you using social networks to garner more business leads? Read tips on how to expand your reach.
• Mortgage Rates Continue to Fall
  Average interest on long-term mortgages hit a record low for the eighth time in nine weeks, and could go even lower.
• 7 Must-Have Apps for Your Smartphone
  Get ideas on some of the latest apps that can be used in your real estate business, from faxing on-the-go to creating property “reminder” tours.
• Protest Rising Over Resale Charges
  Some builders are now including in contracts a clause that requires buyers to pay them a 1 percent transfer fee every time the house is sold over the next 99 years.
• New York Housing Bucking Trends
  Inventory has dropped in half from a year ago and well-priced apartments are selling in a week.
• Fannie Mae to Prohibit ‘Appraisal Cutting’
  The secondary mortgage market company doesn’t want lenders to cut valuations anymore on appraisals in dispute.
• Military Growth Drives Fastest Rise in Income
  Jacksonville, N.C. tops the list of USA Today’s metro areas with the largest per-capita income gains from 2000 to 2009. See what other cities made the list.

These were the top real estate and mortgage headlines for the week ending August 27, 2010.

Want to know how these national headlines could impact you right here in Northwest Indiana? Subscribe to this blog, Today’s Real Estate Reality, and let our resident local market real estate experts guide you to an informed and successful real estate transaction.

Have We Hit The Bottom Yet in Portage Indiana Real Estate

People across Portage Indiana have been asking me lately about real estate prices. “Do we see light in the tunnel?” they ask.  Since real estate markets move in up and down cycles, economists and homeowners alike all want to know when market trends are entering a new phase. Can they time their move to be positioned ahead of the next wave? 

Whether you are talking about the stock market, real estate, or gold bars, timing the market is not so easy to predict. And in real estate, it depends on where you live.

This week we have had economists from the National Association of Realtors and the National Association of Home Builders both giving generally negative views about the real estate market. This suggests to many homeowners and armchair Realtors that the market for Portage Indiana is headed for even more price declines.

It’s not that simple. When analyzing home sales data from other nearby communities, we see the real estate market has acted differently, depending on the location.

And don’t forget about those first 3 rules of real estate: Location, Location, Location.

Since the recession began in 2007 Portage Indiana real estate market has had a roller coaster ride as median home prices have dipped 3 separate times with rallies in between. Your community may be different. For example, median home prices in Crown Point Indiana crashed about 15% way back in 2008 and they have skidded around at roughly the same median home price ever since.

Consider that, overall,  real estate has been in the current down cycle for over 3 years now. We also know that it is the lack of jobs that is holding back the overall economy.

So we do not really need the help of technical books and investment seminars to know that, in general, as long as you have a decent job, this is a terrific time to buy a home in Portage Indiana. Home affordability is at an all time high with interest rates at historic lows and depressed home prices all around. 

Will home prices go down further? Maybe yes. Maybe no. If you wait too long for home prices to hit rock bottom in Portage Indiana, you may find yourself getting in after the real estate market has already gone up.  Or if interest rates have clicked up another notch, your delay in taking action will affect your payment even more.

My advice? Do what is best for your family and your situation. Your house is shelter first; an investment second. If you are trading up, don’t stress out about how much your current home was worth in 2005. Rather, focus on the great deal you are getting on a better home which you might not have been able to afford back then.

Change will always come. Experienced Realtors are here to provide you with the information you need to make informed decisions in any market. If you’re ready to learn more about the Portage Indiana real estate market and what steps you need achieve home ownership, contact me to help get you moved.

*Photo: Market Timing for Dummies by Joe Duarte MD – BN.com

Home Sellers – Feeling Lucky With Your Real Estate Sale?

In case you missed this morning’s headline, Existing Home Sales Swan Dive. That’s right. Sales of existing home sales plummeted 27.2 percent in July. Furthermore, the National Association of Realtors stated that July’s existing home sales is the lowest reading since NAR has been keeping track.

It should also be noted that total housing inventory increased by 2.5 percent in July. It will now take up to 12.5 months to sell the existing homes inventory.

What does this mean for home sellers?

If you’re a home seller, there’s no more time to waste on hoping for a buyer to come along and pay you what you think your home is worth. It’s time for home sellers to get serious and figure out what is their liquidation home sale price.

What are the odds that home sellers will actually sell their homes?

Every real estate market is different, but the growing consensus is the same. Successful real estate transactions are becoming more difficult by the day whether it is due to inflexible home sellers, home buyers remorse, unflattering home inspections and/or below market value home appraisals.

Other mind numbing real estate headlines for home sellers to think about.

• Redfin: Less Than Half of All Home-Sale Attempts Successful in ’09 - The Wall Street Journal
• Nearly Half of the Homes on the Market in July 2010 Had Prices Cut, According to ZipRealty – RISMedia

If home sales is a game of numbers, wouldn’t you want to be on the side with the highest probability of success. Understanding the dynamics of the real estate market is one aspect that your real estate professional must grasp. Working with a local real estate professional who can provide clarity is a must.

Otherwise, if you’re feeling lucky your best bet for your home sale may come down to the flip of a coin.

Understand Property Values Foot-By-Foot

To understand real estate property values one measurement that’s mentioned frequently  is Price-Per-Square-Foot. Simply put it is the PRICE of your home divided by its AREA. In other words,  how much you are paying for each 12 inch by 12 inch square. Easy right? If you have ever hired a contractor or bought carpet, they probably gave you a quote based on the size of the job or AREA of the rooms.

The most important reason for buyers and sellers to use this calculation is so you can compare  homes of different sizes. If one home is twice the size as another similar property it’s PRICE should be twice as much.

Comparing homes by price per square foot can give us great insights far beyond mere structure. Certainly we get a feel for it’s condition, and the quality of it’s construction, but beyond that are the amenities & landscaping, location of the home, even the surrounding community. All these add up to the home’s desirability or its’ value.

But let’s expand our view. Are there vacant homes on this block? Does one family have junk cars and trash all over? What price value can we put on a superior school system in dollar terms? Are there parks, a library, medical facilities  and shopping nearby? How much is a lakefront property worth more than one with just a lake view?

Taken together, do these outside  factors of the surrounding community give the house more value or take some value away? Understanding the price-per-foot measurement can be used not just for individual homes, but also for specific price segments, micro-neighborhoods, subdivisions, even entire towns.

Here is an example of how prices have fluctuated in Portage Indiana over the past year, measured in price per square foot terms. Notice  a 10% drop occurred in the average from $103 to $93 last Winter, then recently there has been a modest rebound.

So what changed exactly?  What made homes suddenly less desirable,  then become more valuable again?    Obviously none of the homes changed location.   Did the local home center have a clearance sale on granite counter-tops?  Probably not.  But the desirability of Portage Indiana real estate did change, first down, then up again, as reflected in hard dollars. Since the homes themselves didn’t change much, we will have to blame those mysterious “market forces”.

In future posts we will further break down the components that create and bend  these forces in more detail. For now just understand that the large sized numbers of real estate prices can be scaled down to the size of a shiny piece of 12 inch glazed ceramic tile that you can hold in your hand.

How Far Has Google Come to Help Sell Your Home

Ever heard of Google? In case you’ve been living in a cave since 1997, here’s The Google Story in 2 minutes.

Did you recognize any features and/or applications that Google has released over the past 10 years? Better yet, do you use any of them? I know I certainly do. So, how can Google help sell your home faster?

Understanding patterns and trends were just the beginning for Google but it also happens to be the start point for every real estate agent. Not understanding real estate cycles and patterns in your local real estate market can lead to lost dollars and much frustration.

Think about it for a second. Why is every home offered for sale start with a comparative marketing analysis (aka CMA) and end with a valuation of property through a licensed appraiser?

The answer is simple. Home sellers and home buyers want to know which direction home prices are trending. This allows home sellers a solid foundation on how to price their home for today’s real estate market. It will also reaffirm the home buyers confidence that they did get a great deal on the purchase of a home today.

Beyond getting a grasp on real estate market trends, did you know that Google can help sell your home faster through it’s vast brand awareness and marketing prowess. It’s true.

How would anyone know that you actually wanted to sell your home if you never marketed your home for sale. They wouldn’t! Consequently, that’s why every Realtor offers to put a home for sale sign in your yard and broadcast that your home is for sale to other Realtors through the mulitple listing service (MLS).

Is this good enough in today’s real estate market? Absolutley not.

The whole premise of using a yard sign and the MLS is to get your home marketed to the largest eligible pool of home buyers. Where better to market your home for sale than on the number one website in terms of web traffic, unique visitors and page views. That’s right! Google.

If you would like to learn more about Google Tools for Real Estate Professionals, by all means buckle up and go for it. Or, you can work with a local Realtor who already knows how Google can help sell your home faster.

Could You See Yourself In A Home Under 600 Square Feet

The rise in popularity of green building standards and smaller footprint homes in real estate has finally made it’s way to the heartland of America.

In case you missed it there has been lots of real estate media buzz over the Small Homes movement.

The best known advocate is Resources For Life. They are a green/sustainable advocacy group who is at the core of this new community. Their site describes developments across the US where the principles of sustainable resources for living are implemented.

Then there is Jay Shafer from Tumbleweed Tiny House Company. He has published a book on how to build your own tiny home. He even offers floor plans. Most notable is a model home that is just 70 square feet.

According to a survey by National Association of Home Builders, most Americans still prefer a home size averaging 2,070 square feet. The same survey also revealed that Americans WANT to downsize their yard work, prompting a home buying trend toward more compact lots. Consequently, more two-story homes and split level homes are replaicing ranch style homes since homes need to go up in height to build on a smaller size footprint.

Wait a second. You maybe asking yourself what does the small homes movement have to do with homeowners here in Portage Indiana?

You might be surprised that small homes is not a new phenomena here in Portage Indiana. Pictured above is one of the smallest homes in Portage Indiana. This home offers an expansive space of only 780 square feet and was built in 1943.

Believe it or not, tiny homes is just a remnant of our storied past.

Can you see yourself living in a “Tiny House” in Portage Indiana?

What’s the Buzz in Crown Point Real Estate: August 6th

The media is having a field day highlighting the poor economic news and the slumping real estate market. When I look around Crown Point Indiana, I see something to the contrary. Take a look at the graph below and tell me what you see. By the way, it’s not a disgruntled smile.

Can you see what I see? I see home prices stabilizing in Crown Point Indiana for the quartile of homes that typifies the first-time home buyer in Crown Point Indiana. Why isn’t everyone talking about this news?

It might be true that house values and home prices are still collapsing in the sand belt states. But here in Crown Point Indiana that is not the case. This is the kind of real estate information that every home seller and every home buyer needs to know.

Home sellers in Crown Point Indiana please pay attention. Home prices are NOT appreciating by double-digits so do not price above the market. You could get away with that in 2006, but that’s history.

Home buyers in Crown Point Indiana can also benefit by knowing the real estate trends. Home prices are NOT falling to the point that you can ask for 10% – 30% discounts from list price. Be rationale and reasonable in your assessment of a good deal.

This is my first blog post of many to come in a series I will call “What’s the Buzz in Crown Point Real Estate”. Stay tuned and don’t hesitate to leave your comments.

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