Annual U.S. Home Value Appreciation Up for 6 Straight Months

Posted on May 22, 2013 by kneuroth

Madrona Home For Sale

According to the April Zillow Real Estate Market Reports, U.S. home value continues to climb. April was the sixth consecutive month that home values exceeded a 5 percent climb. This is the largest streak since 2006. The streak should not be expected to last. As more inventory is offered in the market some home prices will have to fall to level out with the rest. The Zillow Home Value Forecast predicts a 4 percent climb in the next year although most markets have already hit bottom.

National rents declined 2 percent in April compared to March. Demand for rental properties is still strong. Many investors are buying homes, fixing them up and turning them into rental units. Because of this, many markets are seeing less inventory and sharp home value appreciation brought on by the investors. Over the past month there has been a slight increase in inventory in some markets as more housing is constructed as well as more sellers enter the market.

The Housing Market is Heating Up and Many Homebuyers are Clueless

Posted on May 14, 2013 by ktiernan

According to a study conducted by Zillow, when it comes to understanding mortgages, buyers answered basic questions about terms, lenders and financing wrong one third of the time. The study of over 1,000 prospective and current buyers, which was conducted in April found that 34% didn’t know the meaning of the term “annual percentage rate,” 31% of buyers didn’t think that they could get a mortgage for less than 5% down, and 1 in 4 were under the impression you should close with the lender who per-approves your mortgage. It’s important for buyers to shop around and compare rates and reviews before finding the best loan for them. The results also showed that 34% of surveyors thought that lenders were required by law to charge the same fees to all clients for credit checks appraisals, etc, which is a false assumption. Fees will vary between bank to bank, and sometimes can be negotiated.

It can be difficult to choose which is the best deal for you, if you don’t understand what the various mortgage terms mean. The APR, or Annual Percentage Rate factors include fees, origination and underwriting fees, and other costs borrowers use to calculate the actual cost of loans. This lack of knowledge can really hurt your overall savings. Many buyers believe they need a down payment of 5% bare minimum, but loans given by the Federal Housing Administration can actually only require 3.5%. Many buyers also begin shopping around with financing in place so they’re able to move quickly on a home they really want, and according to the study, 26% of buyers believe once they’re pre-approved, they must honor that loan in closing, but that is far from the truth; there is really no obligation. If buyers see better loan terms available, they should take them! For more information for buyers and sellers, visit CNN Money.

Top Homeowner Regrets to Avoid

Posted on May 8, 2013 by ktiernan

We’re already in the thick of Spring house hunting season, and as many have come to find out, this year’s search is especially narrowed, as inventory is at a 12 year low. Many buyers will have to move fast on a home, but when it comes to searching and purchasing a home, moving too quickly without weighing out the positive and negatives might come with regrets. This spring, Trulia surveyed 2,130 adults about their biggest housing regrets, and they found some interesting results. Here are 18 of the top homeowner regrets:

Pictured home is for Sale and Lease

1) 17% of homeowners wished they had chosen a larger home

2) 14% wished they had done more remodeling when they bought the home

3) 11% wish they had more information about the home before they decided to purchase

4) 9% wished they had put more money down for the down payment

5) 8% wished they had been more financially secure before they decided

6) 8% wished they had chosen a neighborhood with a shorter commute to work

7) 7% wished they had more information about the neighborhood before they decided

8) 7% wished they had worked with a different real estate agent

9) 7% wished they had shopped around more for a better mortgage

10) 6% wished they had borrowed less against their home

11) 6% wished they had understood the cost of home ownership before taking the plunge

12) 6% wished they had chosen a smaller home

13) 5% wished they had chosen a neighborhood with less crime

14) 4% wished they had chosen a neighborhood with better schools

15) 3% wished they had rented instead of bought

16) 2% wished they had done less remodeling when they bought than they did

17) 2% wished they had put less money down for the down payment

18) 1% wished they had borrowed more against their home

Trulia also surveyed renters, who had similar regrets as the homeowners; many wished they had rented larger homes, with a shorter community to work, or lived in a neighborhood with less crime and better schools. The top regret though was wishing they had chosen to buy instead of rent, which 23% of renters expressed. If you’d like more information on selling or purchasing a home, contact your local real estate agent today.

Home Value Appreciation Slows Nationwide

Posted on May 2, 2013 by ktiernan

The annual home value appreciation slowed in March down from 5.4 % down to 5.1%, which could be a sign of moderation in the market. In the past, housing markets have been expecting annual home value appreciations close to 3%, but according to the Zillow home value forecast for March 2014, we’re looking at an increase of 3.2%. While this is fairly close to the historical norm, there are some local markets where home values continue to increase at Usain Bolt speed.

Five cities have increased at a rate higher than 20%- San Francisco, Phoenix, Las Vegas, San Jose, and Sacramento. While the National housing market overall has rebounded strongly over the past year, the spike in home values experienced during this times isn’t always expected to stick, and recent trends might indicate that the market is trying to find a middle ground. As more inventory becomes available, we can expect home value appreciation to slow.

Ways to Avoid Sabotage in Selling Your Home

Posted on April 29, 2013 by ktiernan

According to the National Association of Realtors, 44 percent of all new listings take 90 days or more to sell, 22 percent take 6 to 12 months, and 9 percent take more than a year. It’s a seller’s market, so why are so many homes sitting on the market for so long? Jeff Dowler, an agent with Solution Real Estate in Carlsbad, California believes it most likely is because of the home owner.

Asking an unreasonably high price for the home obviously is not going to attract buyers. Limiting the hours and time on weekends or any day to allow the home to be shown also limits the number of potential buyers. It is best to have the house as available as possible to allow it to be viewed. Agents find it best that the seller is not home when it is being shown.

Other things that may sabotage selling your home and cause it to be kept on the market longer are:

Not having the home ready to be viewed at any time. An agent might call wanting to show the house to a potential buyer in an hour. If the house is dirty or messy, that can turn off anyone who might have been interested.
Smells in the house can be a turn-off as well. Musty, dirty smells will not give the house a “clean” feeling. Artificial smells from candles and deodorizers might make the interested buyer wonder what the owner is trying to cover up with the scent. If it is a nice day out, opening windows can help naturally freshen the air inside the home.
Not keeping the home maintained and fixing things. Most buyers may not be looking for a “fixer-upper” and may notice the little things that need to be replaced. They may see that as more work for them to have to do as well as more money they will need to spend and give the home a run down feel.

All you sellers out there who do not want to sabotage selling your house, be sure to be flexible with allowing it to be shown, keep the home clean and maintained and ask for a reasonable price for the home.

Advice for Buyers, Sellers, and Owners in Today’s Marketplace

Posted on April 11, 2013 by ktiernan

We have established that housing is beginning to get back on track, so what are the best moves to make today? Here are some very useful tips for the buyers, sellers, and owners in today’s real estate market.

Homeowners are starting to gain confidence in listing their homes due to the rise in traffic of buyers, and the growing popularity of bidding wars, and buyers are finally able to start searching for the perfect home again with low mortgage rates. According to CNN Money, 92 of the Country’s 100 largest metro areas have seen an increase in home prices, with costs rising as high as 23% in some cities, and 69 out of 100 of the areas also saw an increase in sales volume.

If you’re in the market to buy a home, know that you’re going to have to be competitive. Inventory is low, and doing your homework beforehand, and having all of the necessary information ready to present an offer with your agent will put you one step ahead of the game. It’s also best to understand the days of making an offer 20% below the listing price generally will not work. Presenting your best offer first will sit best with sellers, and it also helps to have a few contingencies in place, and move fast as sellers aren’t keen on having to go through the process again and again. Being flexible on closing can also work in your favor, as many sellers are scrambling to find alternative housing at the same time you are.

If you’re looking into selling your home, you’re in luck because it’s finally looking like a seller’s market! In order to get your pricing right, it’s best to list competitively to your market, and keep in mind pricing above recent sales might not get you what you’re hoping for. Many homeowners think their broker’s suggested pricing is too low, but pricing within reason will grab buyers’ attention, and land you more offers. If you’re looking into downgrading, choose an agent that is keen on investment properties. And if you’re not thinking about selling your home soon, you still take advantage of the market by taking the opportunity to refinance. It’s possible in recent years, that you haven’t enough equity to refinance the mortgage at these record low rates, but it might be time to give it another try. Everyone can benefit in today’s market, and if you have any further real state related questions, contact your local real estate agent today.

Competition in Housing Market Leading to Bidding Wars

Posted on April 8, 2013 by kneuroth

Competition in the housing market has been creating bidding wars. Many offers are being countered by rival bids. Homes are selling for well over asking price. Sellers are holding out for better deals which lessens the amount of homes available to buy while buyers are wanting to purchase homes before prices and mortgage rates begin to rise.

Some buyers are having problems purchasing a home due to constantly being out bid buy other buyers. A couple in Florida offered $5,000 over asking price for a home only to lose to a counter offer of $55,000 over asking price. They tried offering $10,000 over a $600,000 asking price and lost to a higher bidder. That house was a short sale had been on the market for only two days. They became frustrated after putting offers on homes and never hearing back only to find that the houses they had bid on were sold to a much higher bidder. They finally were able to work with an agent who was working for both the buyer and seller which would earn her double the commission. She was able to help them make an offer and purchase a home for $30,000 less than the asking price.

The National Association of Realtors reported a 19.2% decline in inventory. It is expected that homes sales will grow with the Spring selling season but availability will remain low. The balance between buyers and sellers has been thrown off balance. Sellers are being more cautious while buyers are on the hunt.

Possible No Go for 240 ft Towers Near Lake Union

Posted on April 2, 2013 by kneuroth

After an unofficial vote, it seems that building 24-story towers near South Lake Union may not happen. The majority of the vote agreed that 160 feet or 16-story towers would be more sufficient for the area and not shadow Lake Union park as a taller building would.

It is still being debated whether or not to tweak the incentive-zoning policy which allows developers additional height by paying a certain amount of money that go towards benefiting the public. Vulcan owns the property and pitched the idea of 24-story towers along with Mayor Mike McGinn. Vulcan is evaluating the options and deciding whether or not to agree to the 16-story towers.

An official vote from the council on whether to rezone Lake Union or not will take place April 22. The deciding vote will determine if 24-story towers will be allowed or not.

Home Prices are Finally Back on Track!

Posted on March 6, 2013 by ktiernan

According to the latest report from Fiserv’s Case-Shiller, home prices are predicted to return back to normal, and we should expect gains in our future! After many years of unpredictability, a market increase is headed our way. According to the report, home prices are estimated to increase 3.7% beginning in the third quarter of 2013 and 2014, and home prices in nearly every metro market are expected to see an increase in 2013. This past year we’ve seen a glimmer of a recovery, and home prices are expected to stabilize, more-so than they have in the past 15 years. From 1998 to 2006, home prices rose 5% or more each year, and once that housing bubble peaked, the plunge was devastating; dropping nearly 30.5% through September of 2012.

In the 4th quarter of 2011 is when we finally began to see signs of stabilization, according to a report by CNNMoney. From Sept 2011-2012 US home prices were on the rise, and several of the metro cities hit hardest by the housing downfall, saw the greatest gain during this time. By the end of 2013, Fisver predicts that nearly all housing markets will see an increase. If you’re looking to sell your home, contact your local Real Estate agent today!

Seattle Home Prices Take a Dip in December

Posted on February 26, 2013 by ktiernan

Washington Park Home

According to the Seattle Times, homes for sale in the Seattle area dropped .5% in December, right after reaching a two year high in November, (based on the Standard & Poor’s/Case-Shiller Home Price Index). This did not come as much of a surprise to those who have been watching for trends in the market for the past several years, as Seattle’s drop seemed to be due to seasonal factors- the holidays and end of the year in December are generally a slow time for residential real estate sales. When those factors were taken into account, the Seattle area actually rose .7% month over month last year, and prices rose 8.2% from December 2011. These calculations include the Seattle area within King, Snohomish and Pierce County.

Overall, the Times stated that the Seattle area’s Case Shiller score for December was 141.75, which is 41.75 higher than the score in January of 2000. Stay tuned for more updates in the Housing Market!

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