Re-Blog of a really great article
It seems the transition is complete. In a recent survey by Redfin, 82% of agents described now as a “good time to sell,” while only 57% described now as “a good time to buy.”
Let’s back up to the third quarter of 2012, when 54% of the agents polled considered it a good time to sell, but 75% called it a good time to buy.
This complete ‘180’ in the housing markets can only be backed by dangerously low inventory, prices that continue to appreciate and low interest rates pushing buyers to buy now.
I recently wrote about a house my husband and I put an offer in on. I felt fairly confident about our offer and we’d managed to tour the house less than 24 hours after it had gone on the market, putting our offer in the same day. Unfortunately, within a day, four other offers were put in and the seller chose a higher one.
As a buyer, this is discouraging. It’s frustrating to know there is zero ‘wiggle room’ when it comes to negotiations and often homes are selling above the appraisal value.
On the other hand, I can only imagine sellers are riding high and feeling good, as multiple offers pour in on their homes within a day. In fact, 98% of agents surveyed by Redfin agreed that sellers are becoming more confident about the market.
With that in mind, 83% of agents agree that buyers also are becoming more confident, so it’s not totally a lost cause for those of us trying to find a home.
Working in this industry, I can’t tell you how many people I’ve heard say “the time to buy is now.” Well, as a buyer (often frustrated with this sellers’ market), I can tell you that the time to sell is now as well.
The number of improving housing markets across the country rose to 99 in September, up from 80 metros that were listed as improving in August. The index now includes representatives from 33 states as well as the District of Columbia.
What causes home prices to fluctuate?
Over time, the worth of a house will go up and down. Over a long enough period of time, house values normally appreciate. But, in real estate there is always a certain amount of risk.
When your home appreciates you have a larger asset to borrow against, and you get a larger profit when you sell. There are various reasons why property values in Longmont change. So, how will you be sure what you’re investing in this year will appreciate over time? The most important part is that you pick a real estate agent in Longmont who can identify the factors that drive local prices.
A lot of people think that the economy is the top factor affecting real estate appreciation. Naturally, mortgage rates, employment, job growth, government programs and numerous other national factors have a noticeable effect on your home’s worth. But the most significant issues that determine your home’s value depend on the local Longmont economy and residential market.
Access to services – Being close to schools, employment and amenities like shopping, restaurants and entertainment is a big deal to many buyers and will greatly influence home values. So when it comes to keeping their value, these regions generally appreciate the best.
Recent home sales – You should receive facts and figures on the recent real estate sales in the neighborhoods that you’d like to live in from your REALTOR®. You’ll want to know figures like how long a house stays on the market and seller discounts.
History of appreciation – In the past 5-10 years, have house prices gone up or down? Does location or affordability affect how desirable the neighborhood is thought to be?
Economic factors – Have businesses moved into or away from an area? Are local businesses hiring? Is there a nice combination of job types in an area, or does it rely on just one industry? All these play a part.
Our belief – one of our CORE beliefs – is that consumers are best served through proper representation from a licensed professional.
For most, buying or selling a home is an infrequent transaction with enormous financial and emotional considerations.
It’s stressful, emotionally-charged and high-stakes. Having a real estate professional central to the process of pricing, listing, selling and purchasing a home is important; real estate is not entertainment, and it’s not a game – bad data, inaccurate “value estimates,” and inflating inventory levels on websites creates confusion about what’s really happening in a market.
We understand that serious consumers want the real facts about a market. And we understand that these consumers also want to find a professional who can clearly articulate what these facts mean to their personal situation.
Connecting with a local real estate professional, a professional that’s immersed in local trends. Well versed in neighborhood nuances. Someone who can take the science of real data and apply it to the art of local real estate.
For sellers, this professional is someone who can navigate changing markets deftly and help price a home appropriately. Someone that helps ensure a smooth ride all the way from contract acceptance to settlement.
For buyers, this professional is a sounding board during their search, and their advocate during contract negotiations all the way to the first day in a new home.
Ultimately, there is a lot more than search to consider throughout the course of a transaction.
Pricing. Negotiations. Offers. Counter-Offers. Contracts the size of novellas. Addenda. Inspections. Appraisals. Financing. Contingencies. Walkthroughs. Punch Lists. The list goes on and on and on. Navigating all of this takes skill and determination, and we are the licensed real estate professionals. Just the folks that can help.
After all, it’s what we do for a living, 24-7, 365.
This article comes to us from the REALTOR.com Lockbox blog. You can view the original article at Lockbox.REALTOR.com.
From a local market perspective, the 2012 ActiveRain real estate survey shows markets where real estate agents are significantly more optimistic and others in which real estate agents are concerned about 2012. Based on our survey data, the ActiveRain real estate network has created a real estate confidence index and ranked the top real estate markets.
Below is a list of the TOP 10 and BOTTOM 10 real estate markets ranked by real estate agent confidence.
With low real estate values, low interest rates and a recovering economy, American real estate agents believe that 2012 is a great time to purchase both single family and multi-family rental properties. Real estate agents feel that single family homes and luxury homes represent great investment opportunities. What did real estate agents think are the worst opportunities in the 2012 real estate market? Due to the glut of inventory in the real estate market due to short-sales and foreclosures, new construction condominiums, new construction single family homes, and land for construction were rated as the worst investment opportunities.
American real estate agents expect the US real estate market to be largely flat from 2011 to 2012. Real estate agents predict that real estate values will be flat from 2011 to 2012, signaling a bottom to the real estate market or the end of the real estate bubble. Given historically low interest rates as well as a bottoming of real estate values, real estate agents expect that the number of real estate transactions and new construction starts will increase slightly in 2012. Additionally, real estate agents believe local economies are on the mend and we will see improvements in the economy.
2012 Predictions By the Pro’s Infographic
Data, data everywhere, but what should you believe? Are we on, in the middle, or at the tail of a deflating real estate bubble? There is A LOT of conflicting data emerging about the 2012 real estate market and 2012 real estate transactions.
So what should you believe? Nearly all data on real estate transactions and real estate values is historical; it does not forecast the future and may not reflect the situation in your local market. Real estate is inherently local, so if the national real estate market is in decline or on the mend, what does that say about your local market?
The largest real estate social network ActiveRain Corp surveyed 1,835 real estate agents and real estate brokers in the US and Canada to understand if the real estate market and economy are poised for recovery in 2012, both nationwide and in local markets.
- Will the Real Estate Market Heat Up This Spring? (legacyrealtor.wordpress.com)
The Colorado Housing and Finance Authority (CHFA) is offering a tax credit for up to 20 percent of the mortgage interest homeowners pay on their loan each year*. This can equal big savings for Colorado home buyers.
Here’s how it works:
- Buyers can claim up to 20 percent of paid mortgage interest each year as a tax credit on federal IRS tax returns
- Buyers must meet income and purchase price limits
- FICO score must be 580 or higher
- Purchase or refinances** of primary residences only
- First-time home buyers must not have owned a home as their primary residence for the past three years
Only a few of CHFA participating lenders and can work with buyers
and offer this program. We work closely with one of the largest independent residential retail mortgage lenders in the United States.
If you are interested in learning more about how the CHFA tax credit works, just ask me.
Before You Look at Your First House
Experienced home buyers know that one of the first-steps in beginning a successful search for a new house is taking a hard, objective look at finances. Determining how much money you can dedicate to the purchase of your new house affects almost every aspect of buying a new home – including how we write the offer, which mortgage programsyou will qualify for, shopping for the best mortgage loan and which homes are truly in your price range.
|Here are the questions that each home buyer should ask:
The 28/36 Rule
No more than 28% of your gross income can be applied to your mortgage, real estate taxes and insurance. And no more than 36% of your gross income can be applied to your mortgage expenses plus your regular debt expenses (car payments, credit cards, other loans, etc.).
Any Questions? I am always available to talk…