When She Speaks,We Should Listen

Ivy Zelman is an industry expert consistently recognized by Institutional Investor, Greenwich Associates, StarMine and The Wall Street Journal as an industry-leading analyst. What separates her from many other analysts is the fact that she has accurately called the real estate market continuously over the last decade.

Her Position in 2006

She was one of the first to call the burst of the housing bubble. She was nicknamed ‘Poison Ivy’ for the harsh positions she took in combating the overly optimistic views of many in the industry at the time.

What happened next?

Existing home sales plummeted, new construction starts feel to historic lows and prices dropped by 50% in some areas of the country.

Her Position in 2012

Ivy Zelman, in a Wall Street Journal article in March Stunned Home Buyers Find the Bidding Wars Are Back, projected that the real estate market was about to rebound and that home prices would begin to appreciate. She emphatically claimed:

“We very much believe we’ve hit bottom.”

What happened next?

Pending sales (homes going into contract) surged in May and have remained above what is recognized as a healthy market level ever since. Starting in June, home prices began to appreciate on a year-over-year basis. This continued through the rest of the year with yearend appreciation coming in at 6.8%.

Her Position Today

What is Ms. Zelman saying today? In an interview on CNBC, she said:

“I think we are in Nirvana for housing…I’m probably the most bullish I’ve ever been fundamentally…I think home prices could go up for four to six years…Today, the urgency and sentiment toward buying residential real estate is back.”

What will the future bring?

If Ms. Zelman’s past predictions are evidence of her understanding of the housing industry, it seems that real estate is about to make a dramatic comeback.

Please give me a call for all your real estate needs.  (910) 617-7654 or email me at joyce@intracoastalrealty.com .  Serving Wilmington, Carolina Beach, Kure Beach, Wrightsville Beach and surrounding areas.  I'm happy to answer any of your real estate questions.  Ask about a free Market Analysis to see what your home is worth.

Thinking of Buying Your Dream Home? DO IT NOW!

A recent survey showed that 3 out of 4 future home buyers (who are not first time buyers) plan to move up to some form of a ‘better’ home. The breakdown:

§ Move to a significantly bigger home (49%)

§ Move to a nicer home (17.5%)

§ Move to a nicer part of town (8.6%)

If you or your family falls into any one of these categories, you should strongly consider making the move sooner than later. The ‘cost’ of your new dream house will be determined by two factors: the price of the house and the mortgage interest rate. Both are projected to increase this year.

Prices Set to Increase

In the recent Home Price Expectation Survey, 105 leading housing analysts called for a 3.1% increase in home values by the end of 2013.

Mortgage Interest Rates Projected to Increase

According to the Mortgage Bankers Association, after reaching record lows in 2012, the 30 year mortgage rates are expected to creep up slowly in 2013 to 4.4%.

Now is a great time to buy the home you always dreamt of owning. However, the longer you wait, the more it will cost.

Buy A Home In The Winter!

Found this article over the week end.  Thought  you might find interesting!!!

Buy A Home In The Winter? Consider The Advantages.

By Dan Green/Mortgage Blog

Winter is often a "slow period" in the housing market; a time characterized by fewer home buyers and a potential lull in prices.

This winter, however, home values appear to be holding steady.

First-look housing market data from Clear Capital suggests that the January markets remains buoyed by buyers whom are taking advantage of a lull in competition, snatching up homes in the current U.S. inventory.

For renters and others who want to buy a home, the winter months can offer advantages over the coming spring season, which is expected to be the strongest in a decade.

The Benefits Of Buying A Home In Winter

Traditionally, fewer homes are sold during the winter months of December, January and February nationwide.

Since 2007, for example, existing home sales during winter months has averaged 4.3 million, on a seasonally-adjusted, annualized basis as compared to 4.42 million during the other three meteorological seasons.

Astute home buyers can take advantage of this drop-off, and potentially find a "better deal". There are a few reasons why.

It's no surprise that colder weather can deter a home buyer. It's human nature to "do less" when it's below-freezing, or other snowy, slushy or miserable. And cold is relative, too. A 40-degree rainy, cold day in San Francisco, California may have the same effect on home sales as a zero-degree day in Chicago when the wind's blowing.

Snow storms make an impact, too. This year's "Nemo" storm shut down most of Boston, Massachusetts and all of Connecticut and upstate New York, for example, and made home physical walk-throughs more challenging.

Fewer active buyers means less competition for a home which may reduce the likelihood of multiple-buyer situation. With fewer buyers bidding on a home, you're more likely to go into contract at a great, low price.

In the spring and summer months, when buyers are more plentiful, competition is much hotter. This can propel home prices higher if home supply fails to meet buyer demand.

National housing supply was 1.82 million in December, down 22% from the year prior.

Sellers May Be More Motivated In Winter

Winter home buyers can use psychology to exact lower sales prices, too.

Home sellers are aware that winter months in housing are typically slower than spring and summer, and many REALTORS® advise against listing between December and February unless it can't be avoided.

In this sense, "winter sellers" may have a different series of motivations than a spring seller who's just "testing the market".

Whether it's financial strain; an impending move to a new state; or, expanding the family, sellers who list their homes for sale during winter months may be more wiling to negotiate with a buyer on price and may be more willing to meet a buyer's demands for a quick closing or to cover the buyer's closing costs as part of the transaction, for example.

Sellers listing during winter may also be willing to pay for a buyer's title insurance, home warranties, or/and city transfer taxes, where applicable.

Mortgage Processing May Be "Faster" In Winter

Winter home buyers may also find the mortgage approval process to be a little bit easier -- especially because mortgage rates have been rising lately. When mortgage rates rise, lenders tend to underwrite fewer home loans, which can result in faster approval times.

Home buyers in the winter months of December, January, and February may be more able to make a "quick closing" than buyers in May, June and July, resulting in additional negotiation leverage with sellers for which closing in 30 days or fewer is important.

This can also be a strength for buyers who buy homes in foreclosure or short sale situations. The ability to get financing and to close on a home quickly can mean the difference between an accepted home contract, and a rejected one.

an accepted home contract, and a rejected one.

How Much Home Can You Afford?

Buying a home during the winter months offers more than the potential for a "better price" -- it also gives a buyer the chance to see how a home's systems function in the cold. Do the windows let in drafts? Does the heating system function? Are there cold spots in the house?

If you're a winter home buyer, first you'll want to know how much home you can afford, or get approved for. Call me today for rates and plug them into your monthly housing budget. Getting a personalized rate quote is free, and fast.

5 Reasons You Should List Your House TODAY!

 

Many homeowners are waiting until the Spring ‘buying season’ to list their homes for sale. Here are five reasons why that might not make sense this year:

1.) Demand Is High

Homes are selling at a pace not seen since 2007. The most recent Existing Home Sales Report by the National Association of Realtors (NAR) showed that annual sales in 2012 increased 9.2% over 2011. There are buyers out there right now and they are serious about purchasing.

2.) Supply Is Low

The monthly supply of houses for sale is at its lowest point (4.4 months) since May of 2005. The current month’s supply is down 21.6% from the same time last year. Historically, inventory increases dramatically in the spring. Selling now when demand is high and supply is low may garner you your best price.

3.) New Construction Is Coming Back

Over the last several years, most homeowners selling their home did not have to compete with a new construction project around the block. As the market is recovering, more and more builders are jumping back in. These ‘shiny’ new homes will again become competition as they are an attractive alternative to many purchasers.

4.) Interest Rates Are Projected to Inch Up

The Mortgage Bankers’ Association has projected mortgage interest rates will inch up approximately one full point in 2013. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

5.) Timelines Will Be Shorter

The dramatic increase in transactions caused many challenges to the process of buying or selling a home in 2012. We waited for inspections, dealt with last minute appraisals and prayed that the bank didn’t ask for ‘just one more piece of paper’ before issuing a commitment on the mortgage. There are fewer transactions this time of year. That means that timetables on each component of the home buying process will be friendlier for those involved in transactions over the next 90 days.

These are five good reasons why you should consider listing your house today instead of waiting.

In this economy, houses aren't selling like they used to. However, there are some ways to improve the chances of selling your house. If you have a house on the market, or are considering it, read on for seven tips that will make it easier to sell your house and make a smooth transition from one owner to the next.

1. Maintain NeutralityThis policy has worked for Switzerland, and it can also work in real estate. Customizing your home is great if you plan to stay there, but extreme colors and themed rooms can scare off potential homebuyers. If you have customized every room with extremely bright or dark colored paint, wallpaper or wall fixtures, you may want to consider toning it down a bit. Using neutral colors on the walls can help prospective buyers create their own vision for the house, and will also leave them with less work to undo if they buy the house.
   
   
2. Less Is MoreEven though you have not moved out yet, removing some of your furniture can help the house move off the market. If you take pictures for your listing, having less furniture can help the home appear more spacious. When potential homebuyers arrive, having less furniture can also provide clear walkways.
   
   
3. That New House SmellHonestly, the new house smell isn't always the most pleasant, but at least it is new. In preparing to show your home, you should avoid strong smells. To avoid odors, make sure to take out the trash and clean the refrigerator regularly. It is also good to be mindful of what you cook in the days leading up to a showing since certain foods have strong scents. If you have pets, keep an eye on the litter box. Any smell that is too strong could send potential homebuyers running out the door.
   
   
4. Pay Attention to the DetailsIt is not a good idea to make major renovations when you are ready to sell your home because you may not recoup your investment. If you never got around to starting or completing that total kitchen or bathroom makeover, then you can make some small, inexpensive changes to spruce things up. Replacing the hardware on cabinets is a quick way to improve the appearance of older looking fixtures. Upgrading small items such as light switch and outlet covers can also add a nice touch.
   
   
5. Maximize Your "Curb Appeal"
   The front of your home is the first thing prospective home-buyers will see, so keeping it presentable is a must. If there is a yard, keep the grass to a reasonable height and if there are trees, be sure to keep the branches under control. The path to your front door should be a clear and welcoming one, not an obstacle course!
   
   
6. Don't Get Too Personal
   Upon entering your house, everyone will know it is lived in, but they do not need to see all the evidence. Get rid of excess clutter such as newspapers, magazines, and mail. Be sure to put away your laundry and shoes. It may also be a good idea to put away some other personal belongings like pictures on the refrigerator or mantle. For you, the pictures may make a house a home or display your personal touch. For the new homeowner, it may appear too personal.
   
   
7. Take Care of RepairsWaiting to make repairs until after you find a buyer can be tricky. Depending on the nature of the repairs, you may not be able to find a buyer. Depending on how fast the buyer wants to close on the house, you may not have enough time to make the repairs. Save yourself some time and potential trouble, by making repairs before you list your home. The repairs will have to be made anyway, so it is better to get them out of the way sooner rather than later.

First impressions can make the difference between a sale or no sale. Keeping things simple can give you a leg up on similar houses on the market.

Reprinted from investopedia

There Are Still Some Bears Out There!

 

Most real estate analysts are rather bullish on the housing market right now. Sales, pending contracts, prices and new construction starts are all up. The Home Price Expectation Survey released last month revealed a sense of optimism among the experts surveyed regarding home values over the next five years.

However, not everyone is buying into belief that housing is in a full-out recovery. There are still a few bears who do not believe housing is out of the woods just yet. One such bear is Radar Logic. In their RPX Year in Review released last week, they shed new light on two data points which have recently shown improvement.

House Prices

“From November 2011 to November 2012, the RPX Composite price increased 9.2 percent year over year, but this increase reflects a significant shift in the composition of home sales and overstates the appreciation in individual properties.”

House Sales

“An increasing share of sales activity has been driven by institutional investors rather than households. While the 25-metro-area RPX transaction count increased 7.6 percent year over year, monthly investor purchases increased 75 percent year over year. The bulk of these purchases occurred in a handful of markets hit particularly hard by the housing bust: Miami, Phoenix, Los Angeles, Las Vegas and Atlanta.”

Radar Logic concludes:

“Some commentators suggest that investor-driven home price appreciation could spur demand among housing consumers, which will in turn bring about a broad-based and sustainable recovery in the nation’s housing markets… It is hard to see a direct connection between the current increase in institutional demand and future gains in household demand, especially at a time when traditional buyers are faced with high down payment requirements and tight standards for mortgages.”

It will be interesting to see whether the few bears are correct or if the bulls, who are definitely in the majority, are proven correct.

Are Foreclosures Increasing or Decreasing?

Recent headlines have created tremendous confusion regarding the foreclosure situation in the country. Let’s give an example. Which of these two headlines are accurate?

Foreclosure Starts Plunge to 71-Month Low

Foreclosures Increase for the First Time Since 2010

The challenge is that both headlines are 100% accurate. How can foreclosures have increased for the first time in two years and, at the same time, be at a six year low? Each headline was reporting on a different measurement. Below are the explanations for each of the measurements as per RealtyTrac’s most recent Mortgage Foreclosure Report.

Foreclosure Starts

Foreclosure starts are the first steps taken by the bank after the borrower becomes delinquent on their mortgage payments (default notices or scheduled foreclosure auctions, depending on the state). They were filed for the first time on 77,494 U.S. properties in November. This was:

§ Down 13% from the previous month

§ Down 28% from November 2011

§ At the lowest level since December 2006

Foreclosures (Bank Repossessions)

This is when the lender completes the foreclosure process and repossesses the property. This occurred on 59,134 U.S. properties in November. This was:

§ An 11 percent increase from the previous month

§ A 5% increase from November 2011

§ The first year-over-year increase in bank repossessions since October 2010, when the practice of robo-signing foreclosure documents came to light and caused a sharp slowdown in foreclosure activity in the following months

In the report, Daren Blomquist, vice president at RealtyTrac, explained:

“The drop in overall foreclosure activity in November was caused largely by a 71-month low in foreclosure starts for the month, more evidence that we are past the worst of the foreclosure problem brought about by the housing bubble bursting six years ago. But foreclosures are continuing to hobble the U.S. housing market as lenders finally seize properties that started the process a year or two ago — and much longer in some cases.”

We hope this brings some clarity to the situation.