Feb 24, 2014 | Mortgage Rates
Last week’s economic data supported recent reports indicating that housing markets are slowing, The National Association of Home builders/Wells Fargo Home Builders Index (HBI) dropped by 10 points to a reading of 46 for February.
Home builder confidence dropped to its lowest reading in nine months, and fell below the benchmark of 50, which indicates that more builders are pessimistic about current market conditions than not.
Severe weather was blamed for the lower builder confidence reading, which fell below the expected reading of 56.
Regional readings of builder confidence were also lower:
- Northeast: Builder confidence fell from 41 to 33 points. This suggests that weather is a major concern as this area has experienced a series of nasty winter storms.
- South: The HBI reading fell from 50 in January to 46 in February and was the smallest decline among the four regions. Fewer index points lost in the South appears to support builder’s concerns about bad weather in other regions.
- Midwest: Builder confidence dropped from 59 points to a reading of 50.
- West: Builder confidence fell by 14 points to February’s reading of 57. Desirable areas in the West had been leading the nation in home price appreciation. February’s reading may signal an easing of buyer enthusiasm as rapidly rising home prices have reduced affordable options for first-time and moderate income buyers.
Builders also cited concerns over labor and supplies as reasons for lower confidence readings.
Housing Starts Lower, Mortgage Rates Higher
On Wednesday, Housing Starts for January were released. Although analysts predicted a figure of 945,000 housing starts as compared to an upwardly adjusted 1.05 million housing starts in December, only 880,000 housing starts were reported for January.
The Department of Commerce also cited extreme winter weather as a cause for the drop in housing starts, which reached their fastest pace since 2008 in November. There is some good news. Economists said that housing starts delayed during winter could begin during spring.
According to Freddie Mac’s weekly survey, average mortgage rates rose across the board. The rate for a 30-year fixed rate loan rose by 5 basis points to 4.33 percent. The average rate for a 15-year fixed rate mortgage rose by two basis points to 3.35 percent.
The average rate for a 5/1 adjustable rate mortgage moved up by three basis points to an average rate of 3.08 percent. Discount points for all three products were unchanged with readings of 0.70 for 30-year and 15-year fixed rate mortgages and 0.50 percent discount points for 5/1 adjustable rate mortgages.
The Bureau of Labor Statistics reported that weekly jobless claims came in at 336,000 against expectations of 335,000 new jobless claims. The prior week’s reading was for 339,000 new jobless claims. Analysts said that job growth may be slowing after last year’s growth, but also noted that winter weather had slowed hiring in labor sectors such as construction and manufacturing.
Existing home sales fell by 5.10 percent in January according to the National Association of REALTORS®, which reported a seasonally-adjusted annual rate of home sales at 4.62 million sales against expectations of 4.65 million and December’s reading of 4.87 million sales of pre-owned homes. The national average home price rose to $188,900, which was 10.70 percent higher year-over-year.
January’s inventory of available existing homes was 1.9 million homes; this represented a 4.90 month supply of existing homes for sale. Real estate pros prefer to see at least a six month inventory of available homes for sale.
What’s Ahead
Next week brings a series of economic reports and opportunities for good news. The Case Shiller Home Price Indices, FHFA Home Price Index will be released. Consumer Confidence and the University of Michigan’s Consumer Sentiment report along with New and Pending Home Sales reports round out next week’s scheduled news.
Feb 21, 2014 | Homebuyer Tips
If you enjoy history and fixing things, then it may be hard to drive by historic homes for sale without feeling the urge to buy one and fix it up.
Before you do, you need learn the three R’s of fixing up historic homes and the differences between them.
The three R’s of fixing up historic homes are restoration, renovation and repair. Some of the differences are minor, but they can make all the difference in cost, time and problems.
Restoration
“Restoration” literally means returning something to its original state.
Restoring historic homes for sale involve city and state programs. It’s essential that you check to see if the home is listed on the National Register of Historic Places (NRHP) or if it’s located in a historic district.
If either of these is the case, there is a specific set of rules that you must follow while renovating.
Cost: Restoration is not a cheap endeavor. For a home to keep its historic value, the materials used need to match the original materials, including furnishings. These can be very expensive due to their antique value.
Renovation
Renovating is less complicated than restoring, at least when talking about what you can and can’t do. However, with a renovation, you’re generally turning the home into a more modern living place, which lowers its historic value. Make sure it isn’t listed in the NRHP or located in a historic district.
Cost: Depending on the amount of renovations, i.e., modernizing, gutting or remodeling, this can also be expensive. However, it’s much easier to find deals on modern appliances than it is on antiques.
Repair
Repairs differ because they generally aren’t as in depth as the others. For restoration repairs, it’s important to use materials that fit the house, such as plaster walls and wooden floors. For renovation, original materials aren’t as important.
Cost: Again, the cost depends on the number of repairs, as well as, whether you’re keeping the historic value.
Whether restoring, renovating or repairing historic homes for sale, the key is cost. Don’t get so caught up in the possible that you miss the probable. Thinking of buying or selling an historic home? I can help! Call your trusted real estate professional today.
Feb 20, 2014 | Home Selling Tips
Selling your home is a complex process and there are a lot of factors that you will need to consider. Your goal will be to sell your home in a timely manner, while getting the highest price you can.
However, many properties sell at a discount because the buyer is able to negotiate a lower price on the property.
Although it is impossible to guarantee that you will receive your full asking price when you sell your home, there are things that you can do to increase the likelihood of this happening. You will need to have a strategy that attracts highly motivated buyers and improves competition.
Here Are Some Tips To Keep In Mind That Will Help You To Get The Full Asking Price When You Are Selling Your Home:
- First of all, make sure that you have a reasonable asking price to start with. Research your local real estate market and find out what other buyers paid for homes comparable to yours.
- Hire a home inspector to perform a full inspection of your home, so that you can fix any problems. If you can show the buyer the repair receipts and inspection report, you will be in a better position to ask for full price.
- First impressions are very important and can improve a buyer’s perception of your home’s value. Make sure that your property has plenty of curb appeal and feels welcoming.
- De-clutter and clean your home – this makes it appear more spacious and luxurious and will make a buyer willing to pay more.
- Ask your real estate agent to create a flyer that compares your home’s price to other similar listings in the area – showing that your home is a great deal. This will convince buyers that your asking price is already discounted.
- Schedule your property tours as close together as possible. This can mean that you get multiple offers at around the same time, which will encourage the buyer who is eager to seal the deal to pay full price.
- If you have any rooms with bright colours that might not appeal to the average buyer, give them a quick makeover with neutral tones. These are safe colours that will increase the odds that your home will sell.
- If you have the budget to renovate one of the rooms in your home, it should be the kitchen or the bathroom. Studies have shown that renovations and upgrades in those two rooms have the most impact on the potential selling price of the home.
With these tips, you should be more likely to achieve the full asking price when you are selling your home. For more tips, contact your trusted real estate professional.
Feb 19, 2014 | Uncategorized
By Amy Tierce
Real Estate appraisals are performed by independent, licensed and in most cases certified appraisers.
How an appraiser views a property and the nature of the appraisal investigation is highly regulated and restrictive. Among many data fields, the appraisal report is required to address:
• Town and registry data on the property
• Recorded data on the immediate neighborhood
• If the property is legal per city and town records
• The condition of the property along with major systems
• Room count, size and general dimensions
• If improved, if proper permits were issued
• Market statistics and conditions
• Comparable sold properties
• Comparable properties on market
• Complete photographs as required by secondary market
• Floor plan on property is drawn by appraiser
Any errors or discrepancies on the appraisal report as compared to other data in the application process must be resolved. This means that all data throughout must match, for example street address, zip code, and property tax figures.
Much of the frustration with the appraisal process comes from the selection of comparable properties to support the value of the subject. It is required that these comparables be as close as possible to the subject in terms of style, age, size and proximity and timing of the sale.
Condominiums require additional work by the appraiser because the appraiser must validate the condominium information and many times this information can only be acquired by obtaining a completed condo questionnaire. To assist the appraiser and help expedite the process a copy of the lenders condo questionnaire will help.
Depending on market conditions, an appraisal can take up to two weeks to obtain. However, your lender can have the full credit approval completed on the borrower while waiting for the appraisal to be completed.
In this competitive market be sure to speak with the lender about the risks associated with the waiving of an appraisal or mortgage contingency.
Admittedly, the appraisal can be one of the most frustrating components of the mortgage process especially if the seller and real estate agent believe that the valuation is low.
Content courtesy of
Amy Tierce, Regional Vice President, Fairway Independent Mortgage
http://amyrates.com/
Feb 19, 2014 | Homeowner Tips
Home equity is the difference between what your home can sell for and what you owe on it. Generally, the longer you own your home, the more equity you build.
This is money you can use before you sell your home through a home equity loan. Just keep in mind that a home equity loan is secured with your home. If you can’t make the payments, you can lose your home.
Use Your Home Equity In Smart Ways:
- Remodel Your Home – If you’ve wanted to add on a family room or modernize your kitchen, consider using your home’s equity to fund the project. Home improvements usually increase your home’s marketability and value.
- Make Needed Major Repairs – Your home’s equity can be a funding source for major repairs like plumbing problems and re-roofs. Once again, this is an improvement for your home that will help keep its value up.
- Buy Another Property – Real estate is still a safe investment. You can use your home equity to buy a second property when home values are down. When the market recovers, you can sell the investment property for a profit. This also works if you have to move out of town and are still trying to sell your home. If you can afford the payments, use your home’s equity to purchase your new home until the current one sells.
- Pay For Unexpected Medical Expenses Or Job Loss – You never know when a medical emergency or job loss will leave you in debt. A home equity loan can give you the money you need to get through this difficult time.
It’s easy to build equity in your home when you find the right deal. Let me help you find your perfect home and negotiate a great price and terms for you. Contact your real estate professional today.
