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Home Sales Hit New Low in January
We all know that the housing market has been struggling for quite some time. Certain areas have been hit harder than others, but just like with other markets in the economy, everyone is feeling the impact of the housing market as it struggles.
Last Wednesday, February 24, 2010, the Commerce Department said that new home sales have dropped 11.2 percent in January, the lowest level on record for nearly a half a century. This came as a big shock and surprise to many economists who were expecting a five percent increase over December’s sales. Some say that this major drop was partly due to winter weather conditions, but that the housing market has been struggling for several months despite government support and assistance.
January’s weaknesses were seen in all regions except the Midwest which saw a 2.1 percent increase. Government mortgage programs have tried to keep rates down by using the Federal Reserve to buy $1.25 trillion in back mortgage securities but that program is due to end by March 31, 2010. Other tax credits and incentives are also set to end in April.
Many people do not believe that the housing market will go under, but it will take longer to reach a good point of recovery. This means that real estate agents need to do everything they can to sell, sell, sell, and sellers need to hang in there. We all need to keep our fingers crossed, do the best we can, and hope for the very best.
Government to Stop Helping With Housing Market Crisis
The government has been trying to put together programs and incentives to help the housing market out of its crisis because of the Great Recession. Many programs like the Federal Reserve buying $1.25 trillion in mortgage securities, home buyer tax credits and other programs are scheduled to end soon.
Many of these programs including the home buyer tax credit have already been extended to April 30, 2010; because it was originally due to expire in November of 2009. Many people are now arguing that the government programs and support have not been helping enough to make them worth the time, money, and effort.
People are saying that despite government programs and help, housing markets are still struggling and sales are still continuing to drop, such as the 7.2 percent drop in home sales in January. The government is still deciding whether or not to change their programs or put more effort and money into existing ones, but many people feel that it would be a better idea for the government to stop helping altogether.
Home values are affected by many factors including but not limited to: the job market, health, the environment, and many more. Also, it is important to pay attention to whether or not the rental property business is doing well. If housing prices are low this may make buying more attractive and vice versa. If people feel that it would benefit them more to rent now and buy later when the economy and housing market are better than that is probably what they will do.
As a real estate agent it is important to know not only how the housing market is doing but rental properties as well. It is also important to keep in mind what motivates people to buy or sell their home. This way they can make the best decisions when working with their clients. It is also important for buyers and sellers to know about the market and current news so that well informed decisions can be made now and in the future.
Buying a Bank Owned Property
There are more homes in foreclosure right now than ever before. Homes that do not sell during the foreclosure process become the property of the bank that was holding the mortgage. These homes can be a great bargain, if you know where to look and what to look for.
A bank owned property (also known as REO- Real Estate Owned- property) can sell for as much as 20% off the actual value of the home, and the bank may allow a lower down payment, and discounts for repairs needed. They can be a great opportunity for investors or first time home buyers who don’t mind a challenge. With the help of a Syracuse real estate agent, buying an REO property can be a low-stress, easy way to achieve your home ownership goals.
Bank owned properties are sold “as is,” or in whatever condition the previous owners left it. Sometimes, the home is left in great shape; other times, you’ll be facing major repairs. If the bank will give you access to the property, make sure you hire a home inspector to give you a list of problems that will need repair. Keep these repairs in mind when making your offer to the bank. The bank will probably counter-offer with a higher price, and then you can either accept it, walk away, or try to reduce their asking price. You might be more successful with getting the price dropped if the home needs extensive work.
The bank will take care of all prior debts against the home, and evict the previous owners (if they haven’t already done so). If you have decided to buy the home, a contract will be drawn up. Review it carefully, and make sure you know exactly what you will be responsible for. Have your real estate agent or lawyer review the contract with you.
A bank owned property can be a great bargain, but you need to do your homework. Add up the cost of repairs, and get an accurate picture of the value of the home, both before and after the repairs have been completed. It is not unusual for a buyer to spend more on a bank owned property than they would have to buy a traditionally sold home. To avoid that, know what the home is worth, hire a great property inspector, work with a Syracuse real estate agent that will put the time into making sure your decision to buy a bank owned property is the right one.
Demographic Trends that May Affect the Housing Market
When trying to sell any product or service, it is important to know not only who buys the product or service but why they do or do not and to keep an eye out for any changes. This is also true in the housing market. Older couples want different features in a house than a younger couple does and it is important to know why. Here are some demographic trends that may affect the housing market in the future.
Ask a Syracuse real estate agent for advice
It is a real estate agent’s job to know about demographic and other trends that may affect the housing market. If you have any questions, they are an excellent first resource.
Older baby boomers (55-64)
Many older baby boomers are stuck where they live now because they may owe more in payments than their house is worth. Many older people are also choosing retirement places closer to family and friends. They also may choose not to move because they feel a sense of pride for their home.
Younger baby boomers (46-54)
Many of these people are finding it hard to sell their homes to the younger generation. This restricts options and forces many of these people to consider home improvements and building on to their current home instead of buying a new one. Many are also buying smaller second homes than they were before.
Generation Y (late teens-early 30s)
Many of the people in this generation are seeing their loved ones and friends lose homes to foreclosure. They are willing to rent homes or buy smaller ones to afford the lifestyle they desire. They want to be close to friends, family, and services.
Immigrants
Many of these people have moved to central cities and may move to larger suburban homes in the future when prices for these homes are reduced. They tend to like to be close to family and friends.
In the future, when you might be considering buying a new home or selling yours and moving on, it is important to consider these demographic trends. What people want and why they want it may change and it is important to know all the information. This way you can make a well informed decision when you buy or sell a home.
Ask a real estate agent for advice
It is a real estate agent’s job to know about demographic and other trends that may affect the housing market. If you have any questions, they are an excellent first resource.
Older baby boomers (55-64)
Many older baby boomers are stuck where they live now because they may owe more in payments than their house is worth. Many older people are also choosing retirement places closer to family and friends. They also may choose not to move because they feel a sense of pride for their home.
Younger baby boomers (46-54)
Many of these people are finding it hard to sell their homes to the younger generation. This restricts options and forces many of these people to consider home improvements and building on to their current home instead of buying a new one. Many are also buying smaller second homes than they were before.
Generation Y (late teens-early 30s)
Many of the people in this generation are seeing their loved ones and friends lose homes to foreclosure. They are willing to rent homes or buy smaller ones to afford the lifestyle they desire. They want to be close to friends, family, and services.
Immigrants
Many of these people have moved to central cities and may move to larger suburban homes in the future when prices for these homes are reduced. They tend to like to be close to family and friends.
In the future, when you might be considering buying a new home or selling yours and moving on, it is important to consider these demographic trends. What people want and why they want it may change and it is important to know all the information. This way you can make a well informed decision when you buy or sell a home.
New Cities in a Housing Crisis
We all know that the housing market has been suffering across the country for a long time now. We have heard it on the news, on the internet, in the newspaper and we have seen it for ourselves as well. We have heard about the ups and downs and the hope for the New Year. Well, now there are some new cities being hit by the housing crisis that may not have been touched before. Some new places that real estate agents, home buyers, and home sellers need to watch out for include:
Money Cities
Cities that contribute much of their income to financial services are now being hit by the housing market. It has affected Charlotte, NC, which is the headquarters of Bank of America and other financial institutions. Another city feeling the housing market crisis is San Francisco where the housing prices are among the highest in the whole country.
Resort Areas
Travel destinations and resort areas are also feeling the effects of the housing market. This means that expensive second or vacation homes are not doing or expected to do very well. One destination is Napa Valley, CA were housing prices are being to drop now more than before over the last few years. Places such as Denver, Dallas, and Austin are not doing as bad yet, but their housing markets should be carefully watched for sudden changes.
This does not mean the housing market is forever doomed and that real estate agents, home sellers, and buyers should just give up. This just means that is now more important than ever to watch markets as closely as possible and to put in all the effort you can to improve housing markets in your areas and in others as well.
Home Selling Drops and What This May Mean
Many of us know that due to the economy and many other important factors the housing market has been struggling. Even though tax breaks are being looked at and programs are being started, this may not be enough to rescue the struggling market yet. According to an article from U.S. News and World Report, entitled, “Home Sales Tank: What It Means for You”, home sales dropped almost 17 percent in December when compared to November sales. Some of this could be due to home buyers racing to get the tax credit in November and may not be that bad because it only is showing what would have happened had it not been for the tax credit deadline.
What this means for homeowners is that things are looking much better than before. Home values have become more stable since 2009 and there have been mortgage cuts and more tax breaks to make the situation look brighter for many homeowners. For home buyers this could mean that they should get the most leverage in the housing market at least until the spring. There are low prices, tax credits, and mortgage programs working in their favor as well. Home buyers should keep an eye on prices and rates though because they could get higher.
Prices should go back up from December’s low levels but home sellers may still have to work to sell their home. It is best to consult with an experienced real estate agent about your options and what would work best for you and your family. Things were worse last year though, so they might start looking better during the first part of this year. Home sellers should consider pricing their homes accordingly and doing everything they can to help an agent sell their home.
This report and other housing market news can help keep homeowners, buyers, and sellers more informed so that they can make the best decisions possible now and in the future. It is important that every possible buyer and seller know how the housing market is doing.
Things to Know about Real Estate in the New Year
The New Year has just begun and this brings hope and possibilities for many things. Maybe this will be the year of more jobs, economic recovery, ending wars, and maybe even the recovering of the housing market. Maybe this will be the year to buy or sell a house and get that perfect dream home or make that sale you have been waiting for. Here are some things about the real estate market that may help you to know whether to buy or sell that house this year.
The first thing anyone should do in trying to find out about real estate or the housing market in this New Year to consult a real estate agent. It is a real estate agent’s job to know about new housing trends, new things to look for or beware of and more. If you need to know whether to buy or sell that house this year or whether to wait, ask your real estate agent for advice first. They are an excellent resource and get help you get started and help you have a great new year.
Prices are more stable now than they had been and will continue to show improvement this year but first they may face some more declines in some areas before becoming more stable and reasonable for everyone. Also, people being late on their mortgage payments will most likely continue for a good portion of this year because the job market still needs to improve and until it does, many people are struggling to come up with their mortgage payments. There were also mortgage programs in place last year and in other years to give homeowners a good mortgage rate. Many of these programs will expire and this will mean that mortgage rates will once again rise.
Also, due to mortgage rates increasing and the job market not greatly improving yet, foreclosures are predicted to be higher at least in the beginning part of this year and until the job market improves. It will also continue to be a buyer’s market, especially with more foreclosures happening and seller’s willing to accept lower prices just to make a needed sale.
Plans to help the housing market and mortgage rates are also expected to be revised and tax credits may be extended through the summer. Also, depending on where you live will greatly affect how the housing market is.
These tips and information about real estate in the New Year will help you make better informed decisions about whether to buy or sell a home this year. Knowing this information can help you know what places to look in when looking to buy a home. They can also help you know how much to save for a home or whether you should just remodel an existing home. They can also help you stay updating on the housing market and continue to make informed decisions in the future.
Winning the 2009 Real Estate Game
With foreclosures up, sale prices down, and new homes sitting empty, it’s hard to look back on 2009 as a great year in real estate. The market is way below where it should be, and it’s taking a lot of work to build things back up. There’s been more bad news than good.
Not everything in real estate was bad this year, though. With all of the negative press the real estate world has been getting, here’s a little good news to balance things out a bit. Consider this the 2009 Real Estate Winner’s Circle, the people who actually won the real estate game this year.
First time homebuyers were the big winners in 2009. Not only have interest rates been at a ridiculously low level most of the year, prices have also been low. Add to that the first time home buyer tax credit, and you have a formula for a lot of first time buyers making out very well in real estate this year. There were a lot of homes available, and first time buyers alone were able to put a huge dent in the available inventory.
Investors also were in a position to do really well in 2009. Lower prices and lower interest rates made it easy for investors to scoop up a lot of homes. If investors had cash available, they were able to purchase unfinished developments, foreclosed homes and other troubled properties for as much as 25% off the price they would have paid five years ago.
This was a great year to be a renter. There were more apartments available, and fewer interested renters, so those who moved into a new apartment during the last year could have saved a lot on their monthly rent payments. They also avoided the real estate mess, for the most part. Also, with the home buyer incentive expanded and extended into 2010, these renters are in a great position to buy a home in the coming year.
Home owners who have owned their home long enough to build up equity were also doing well this year, despite the drop in home prices. Their homes may have dropped in value, but the mortgages on those homes didn’t go upside down. They were protected. Similarly, owners in areas where home values didn’t drop, such as in many areas of the central US, weren’t affected by the recession the same way those whose homes dropped several thousand dollars in value were.
The turmoil in real estate during the year has taught us some hard lessons. We need to think carefully about our finances before buying a home, and we need to make sure we have a substantial savings set aside for a rainy day, to cover housing and other expenses in the case of a job loss or other financial emergency. Banks have been forced to change their policies, and consumers are much more aware of how the real estate market works.
The current state of the real estate market may be bleak, but there have been some good things to come out of it. As we head into 2010, it will be interesting to watch as the housing market continues to pull itself out of the hole and come back stronger than ever.
Ways to Figure out if your Housing Market is Improving
Many areas and cities are seeing slight and even bigger improvements in their housing markets. This has made many possible buyers and sellers wonder if their own housing market has improved at all. Many people are wondering if they should buy a home now or wait and many sellers are wondering if they should try to sell again later. Well, to help answer some of these questions, here are some ways to tell if the housing market is improving in your area. That way you and your family can make the best decision possible and rest easier.
Contact your Syracuse real estate agent
Your local real estate agent is checking market conditions as well. They will be able to offer you the latest statistics and information. They may even be able to offer you advice on when it is best to buy or sell a home in your area.
Look up listings and how much they are selling for
It may be a good idea to do some of your own research and see how many listings there are and what they are selling for. It may also be wise to see if any of the homes have lowered their prices or taken the homes off the market completely. This will let you know how the market is doing.
Read about government programs
It may also be a good idea to keep reading any new or improved government programs that are being developed to help the housing market. This will help let you know what is being done and when improvements can be expected.
Watch employment rates
If unemployment is still pretty high in your area, chances are the housing market is not improving that much. Without a steady income people just do not have the money to put towards a home.
Talk to neighbors
A good source of information may be to talk to neighbors, friends, and family. This way you can find out how many homes are on the market and how long they have been on the market without selling. This will let you know how your local housing market is or is not improving.
These basic tips and ways to figure out if your local housing market is improving will help ease your mind and let you make the best decisions possible. If your housing market is not so good, maybe you can just improve your home. If you are a seller, maybe take your home off the market and relist it at a later time. This way you can stay informed and not waste time and money in the long run.
Guidelines for Short Sales Set by Treasury
Last Monday the U.S. Treasury set guidelines to speed up short sales of homes and make other loan modifications to try to keep foreclosures from rising. The Home Affordable Foreclosure Alternatives program provides financial incentives for making short sales simpler. This program involves a lender to agreeing to pay the sale price of a home and pay off its mortgage even when the price is short of the price owned by the homebuyer.
This program also includes guidelines such as setting limits on the amount of time it takes a bank to accept an offer, helping borrowers with their debt and limiting claims from lenders. Even though this Home Affordable Foreclosure Alternatives program has good intentions to help, it has had limited success in doing so. Due to this limited success on Monday more pressure was put on mortgage companies to make the trial of 650,000 modifications permanent.
Short sales are a big favorite of real estate agents and other community group over foreclosure properties because they help with the borrower’s credit rating and leave the property in better condition than when the homeowner got evicted. However, agents have complained about short sales because of the lenders not following through and whether or not they will hold the buyer responsible for the debt in the future.
These new requirements and guidelines include mortgage servicers having ten days to approve or disapprove the request for a short sale and it also requires the lender to release the borrower from all debt. It also does not allow mortgage companies to reduce real estate agent’s commissions on a short sale.
This new program seems to have all the best intentions and if it is able to succeed further and in more areas, it could be very good news for homebuyers and also real estate agents. It may help the housing market as well because more people will be able to afford a home. So, home buyers and agents should look out for updates on this and other future programs to benefit homebuyers.
References and for more information visit:
http://news.yahoo.com/s/nm/20091130/bs_nm/us_treasury_shortsales