10:14AM EDT October 30. 2012 -
WASHINGTON (AP) — Home prices rose in August in nearly all U.S. cities, and
many of the markets hit hardest during the crisis are starting to show sustained
gains. The increases are the latest evidence of a steady housing recovery.t
The Standard & Poor's/Case Shiller index reported Tuesday that national
home prices increased 2% in August compared with the same month a year ago.
That's the third straight increase and at faster pace than in July.
The report also said that prices rose in August from July in 19 of the 20
cities tracked by the index. Prices had risen in all 20 cities in the previous
three months.
Cities that have suffered some of the worst price declines during the housing
crisis are starting to come back. Prices in Las Vegas rose 0.9%, the first
year-over-year gain since January 2007. Prices in Phoenix are 18.8% higher in
August than a year ago. Home values in Tampa and Miami have also posted solid
increases over the period.
Seattle was the only city to report a monthly decline. Still, prices there
fell just 0.1% in August from July and are 3.4% higher than a year ago.
"The sustained good news in home prices over the past five months makes us
optimistic for continued in the housing market," said David Blitzer, chairman of
the Case-Shiller index.
The steady increase in prices, along with the lowest mortgage rates in
decades, has helped many home markets slowly rebound nearly six years after the
housing bubble burst.
Rising home prices encourage more people to put their homes on the market.
They may also entice would-be buyers to purchase homes before prices rise
further.
The S&P/Case-Shiller index covers roughly half of U.S. homes. It measures
prices compared with those in January 2000 and creates a three-month moving
average. The August figures are the latest available.
The figures aren't seasonally adjusted, so some of the gains in August
reflect the benefit of the summer buying season.
Stan Humphries, chief economist at the housing website Zillow.com, expects
the monthly price index to decline later this year.
"This doesn't mean the housing recovery has been derailed," Humphries said.
"This is exactly what bouncing along bottom looks like."
Other recent reports show that the housing market is improving, albeit from
depressed levels.
Home builders started construction on new homes and apartments at the fastest
pace in more than four years last month. They also requested the most building
permits in four years, a sign that many are confident that home sales gains will
continue.
Home building is still far below the pace that economists say is consistent
with a healthy housing market. New-home sales jumped last month to the highest
annual pace in the past two-and-a-half years. Sales of previously occupied homes
dipped in September but have risen steadily in the past year.
Full Story
Tuesday, October 30, 2012
Sunday, October 28, 2012
Great Lake Problems from Sandy
October 28, 2012
The Weather Channel Winter Weather Expert Tom Niziol says the effects from Sandy will be felt along the Great Lakes.
Friday, October 26, 2012
Mortgage Rates in U.S. Increase With 30-Year at 3.41%
By Prashant Gopal - Oct 25, 2012 9:00 AM CT
U.S. mortgage rates rose, increasing borrowing costs as home values extend a rebound from their worst crash since the 1930s.
The average rate for a 30-year fixed mortgage climbed to 3.41 percent in the week ended today from 3.37 percent, McLean, Virginia-based Freddie Mac said in a statement. The average 15-year rate rose to 2.72 percent, from 2.66 percent.
Mortgage rates fell to record lows this month, spurring demand for real estate and helping support prices as buyers compete for a shrinking supply of listings. Home values jumped 1.3 percent in the third quarter from the previous three months, the biggest gain since 2006, Zillow Inc., a Seattle-based property-data company, said this week.
“Now that people have confidence that a bottom was reached and is in the rear-view mirror, now there’s a willingness to take advantage of those historically low interest rates,”Russell Price, a Detroit-based senior economist for Ameriprise Financial Inc. (AMP), said in a telephone interview yesterday. “Now they’re much more effective in facilitating an ongoing recovery.”
Contracts to buy previously owned homes climbed 0.3 percent in September from the previous month and almost 15 percent from a year earlier, the National Association of Realtors said today.
Purchases of new homes jumped 5.7 percent in September to a 389,000 annual pace, the most since April 2010, figures from the Commerce Department showed yesterday.
The 30-year average reached 3.36 percent earlier this month, an all-time low, according to Freddie Mac.
Full Story
The average rate for a 30-year fixed mortgage climbed to 3.41 percent in the week ended today from 3.37 percent, McLean, Virginia-based Freddie Mac said in a statement. The average 15-year rate rose to 2.72 percent, from 2.66 percent.
Mortgage rates fell to record lows this month, spurring demand for real estate and helping support prices as buyers compete for a shrinking supply of listings. Home values jumped 1.3 percent in the third quarter from the previous three months, the biggest gain since 2006, Zillow Inc., a Seattle-based property-data company, said this week.
“Now that people have confidence that a bottom was reached and is in the rear-view mirror, now there’s a willingness to take advantage of those historically low interest rates,”Russell Price, a Detroit-based senior economist for Ameriprise Financial Inc. (AMP), said in a telephone interview yesterday. “Now they’re much more effective in facilitating an ongoing recovery.”
Contracts to buy previously owned homes climbed 0.3 percent in September from the previous month and almost 15 percent from a year earlier, the National Association of Realtors said today.
Purchases of new homes jumped 5.7 percent in September to a 389,000 annual pace, the most since April 2010, figures from the Commerce Department showed yesterday.
The 30-year average reached 3.36 percent earlier this month, an all-time low, according to Freddie Mac.
Full Story
Wednesday, October 24, 2012
How To Spot A Home That Might Sell Below Its Real Estate Value
Want to increase your chances of buying a home below current real estate value? Just look for a seller who didn’t listen to his agent.
The best real estate agents encourage their sellers to do whatever it takes to get the home in its absolute best condition before going to market. The better the home shows, the more likely the seller will get top dollar.
Sometimes, this could be as simple as removing personal items or decluttering. Other times, an agent will suggest bigger fixes, such as painting, replacing carpet or upgrading countertops or cabinets. Savvy sellers listen to their agents, make the changes suggested and go to market in top form. That’s not always how it plays out, however.
For any number of reasons, many sellers protest suggested fixes. Either they don’t want to be inconvenienced, don’t believe the fixes will matter or don’t have the financial resources to make it happen. Inevitably, this means the buyer will get a discount on that property.
How to spot a home that might sell below its value
Is there a home for sale in a good neighborhood and in the desired school district that seems to be well-priced but for some reason isn’t selling? This is the home you want to investigate, because chances are the seller didn’t listen to his agent. Specifically, here are some tell-tale signs to look for.
Big furniture or a lot of furniture
Most people don’t buy furniture to use when staging their home. Often a seller may have a lot of furniture in one room, which makes the room look small to potential buyers. Real estate agents and professional home stagers know this all too well. For example, stagers always suggest a small loveseat over a full-blown couch or sectional sofa. Also, in the bedrooms, king beds often take up too much space. So a stager will often push the seller to swap it out for a queen or full-sized bed.
When you enter a house that seems crowded with furniture, imagine the rooms with fewer or smaller pieces. Be aware that plenty of potential buyers won’t get past the sense that the rooms are too small, and they’re likely to move on to a home that feels bigger. In turn, this could give you room to negotiate a good deal with the seller.
Dark rooms
There was a home in West Hartford, CT on a great block, but the interior was dark. Three large French doors in the living room led to a deck, but the doors were stained black, and the carpet was brown. On top of that, the window coverings were big, heavy and overtook the room.
The house sat on the market for months, even though the price wasn’t far off the real estate market value. Here’s why: Every buyer walked in and out because the house was so dark. After the home had been on the market for three months, a smart buyer made an offer $40,000 below asking and ended up getting it.
Before the buyer moved in, he removed the window coverings, stripped the stain on the doors and painted them white, pulled up the old carpet and had the floors stained to a lighter oak. Right away, the dark room became light, bright and welcoming. The buyer’s total cost: $9,000, which instantly added $31,000 to his equity.
Grandma or Bambi staring down from the walls
Buyers are looking to see themselves — and not the current owners — in a home. Too often, however, the seller hasn’t “depersonalized” his home enough, or at all. Even though the listing agent may have told the seller to clear the house of his possessions, the seller may be proud of his accomplishments and resist.
And so potential buyers are treated to walls decorated with diplomas, family photos, awards and trophies. Moose and deer heads hanging on walls are surefire deal killers, especially when the hunting rifle used to kill Bambi is proudly displayed, too. At best, buyers tend to see such highly personal stuff as clutter that takes the focus away from the home. They’re turned off by it all, and they walk away.
They might also be walking away from a great deal. Are the bones of the home good? Does it have the floor plan you like? Are the kitchens and baths in acceptable condition? Is it in the area where you want to live? If you say “yes” to all of these, hang around a little longer. Imagine the home without the seller’s junk. Picture yourself living there, without Bambi.
A good home that doesn’t show well = a great opportunity
Ultimately, sellers who don’t listen to their agents or stagers inadvertently give savvy buyers a discount. For you to see that potential, try to understand as much as you can about why the seller is selling. Look for sellers who have ignored their agent’s advice. While conventional wisdom says that a buyer would be turned off by a home that shows poorly, go against this. Imagine the potential. And then, once the home is yours, make those small changes the seller should have made. Right away, you’ll have a little bit (maybe even a lot) of equity, thanks to the seller.
Read more: http://www.zillow.com/blog/2012-10-22/how-to-buy-a-home-below-current-real-estate-value/#ixzz2ADulUmkK
The best real estate agents encourage their sellers to do whatever it takes to get the home in its absolute best condition before going to market. The better the home shows, the more likely the seller will get top dollar.
Sometimes, this could be as simple as removing personal items or decluttering. Other times, an agent will suggest bigger fixes, such as painting, replacing carpet or upgrading countertops or cabinets. Savvy sellers listen to their agents, make the changes suggested and go to market in top form. That’s not always how it plays out, however.
For any number of reasons, many sellers protest suggested fixes. Either they don’t want to be inconvenienced, don’t believe the fixes will matter or don’t have the financial resources to make it happen. Inevitably, this means the buyer will get a discount on that property.
How to spot a home that might sell below its value
Is there a home for sale in a good neighborhood and in the desired school district that seems to be well-priced but for some reason isn’t selling? This is the home you want to investigate, because chances are the seller didn’t listen to his agent. Specifically, here are some tell-tale signs to look for.
Big furniture or a lot of furniture
Most people don’t buy furniture to use when staging their home. Often a seller may have a lot of furniture in one room, which makes the room look small to potential buyers. Real estate agents and professional home stagers know this all too well. For example, stagers always suggest a small loveseat over a full-blown couch or sectional sofa. Also, in the bedrooms, king beds often take up too much space. So a stager will often push the seller to swap it out for a queen or full-sized bed.
When you enter a house that seems crowded with furniture, imagine the rooms with fewer or smaller pieces. Be aware that plenty of potential buyers won’t get past the sense that the rooms are too small, and they’re likely to move on to a home that feels bigger. In turn, this could give you room to negotiate a good deal with the seller.
Dark rooms
There was a home in West Hartford, CT on a great block, but the interior was dark. Three large French doors in the living room led to a deck, but the doors were stained black, and the carpet was brown. On top of that, the window coverings were big, heavy and overtook the room.
The house sat on the market for months, even though the price wasn’t far off the real estate market value. Here’s why: Every buyer walked in and out because the house was so dark. After the home had been on the market for three months, a smart buyer made an offer $40,000 below asking and ended up getting it.
Before the buyer moved in, he removed the window coverings, stripped the stain on the doors and painted them white, pulled up the old carpet and had the floors stained to a lighter oak. Right away, the dark room became light, bright and welcoming. The buyer’s total cost: $9,000, which instantly added $31,000 to his equity.
Grandma or Bambi staring down from the walls
Buyers are looking to see themselves — and not the current owners — in a home. Too often, however, the seller hasn’t “depersonalized” his home enough, or at all. Even though the listing agent may have told the seller to clear the house of his possessions, the seller may be proud of his accomplishments and resist.
And so potential buyers are treated to walls decorated with diplomas, family photos, awards and trophies. Moose and deer heads hanging on walls are surefire deal killers, especially when the hunting rifle used to kill Bambi is proudly displayed, too. At best, buyers tend to see such highly personal stuff as clutter that takes the focus away from the home. They’re turned off by it all, and they walk away.
They might also be walking away from a great deal. Are the bones of the home good? Does it have the floor plan you like? Are the kitchens and baths in acceptable condition? Is it in the area where you want to live? If you say “yes” to all of these, hang around a little longer. Imagine the home without the seller’s junk. Picture yourself living there, without Bambi.
A good home that doesn’t show well = a great opportunity
Ultimately, sellers who don’t listen to their agents or stagers inadvertently give savvy buyers a discount. For you to see that potential, try to understand as much as you can about why the seller is selling. Look for sellers who have ignored their agent’s advice. While conventional wisdom says that a buyer would be turned off by a home that shows poorly, go against this. Imagine the potential. And then, once the home is yours, make those small changes the seller should have made. Right away, you’ll have a little bit (maybe even a lot) of equity, thanks to the seller.
Read more: http://www.zillow.com/blog/2012-10-22/how-to-buy-a-home-below-current-real-estate-value/#ixzz2ADulUmkK
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