Should You Sell Before Spring?!

Hi Friends!

Last week a ground hog (aka "Punxsutawney Phil") didn't see his shadow & foretold of an early spring! Which is great news for all our gardens!

But it got me thinking -- would it be best for Sellers to continue to wait until Spring has sprung to list their homes? Take a look at this short article that offers some great points on why listing your home now might actually be in your favor:

"No Matter Which Groundhog You Listen To, You Should Sell Before Spring!

Is spring closer than we think? Depending on which Groundhog you witnessed today, you may have less time than you think to get your home on the market before the busy spring season.

Many sellers feel that the spring is the best time to place their home on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages.

Here are five reasons to sell now.

1. Demand is Strong

Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that buyers are still out in force looking for their dream home. These buyers are ready, willing and able to buy…and are in the market right now!

Take advantage of the strong buyer activity currently in the market. 

2. There Is Less Competition Now

Housing supply just dropped to 3.9 months, which is well under the 6 months’ supply that is needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last three years. Many of these homes will be coming to the market in the near future.

Also, new construction of single-family homes is again beginning to increase. A study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will increase in the spring. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. There is less overall business done in the winter. Therefore, the process will be less onerous than it will be in the spring. Getting your house sold and closed before the spring delays begin will lend itself to a smoother transaction.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 5.4% over the next 12 months according to CoreLogic. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate below 4% right now. Rates are projected to rise by three-quarters of a percent by the end of 2016.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.

That is what is truly important."

Demand is high my friends -- and our inventory is lagging to meet that demand, which creates a desirable environment for Sellers!  If you, or someone you know, are considering selling their home - we are here to help!

As always, please let me know if you have any questions at all!

~Amy

Source: KCMBlog.com

#1 Reason to List Your House Today!

Hi Friends!

Over the past few weeks I've been highlighting why it might be a good time to get in to the real estate market as a buyer (i.e. credit requirements vs mortgage rates); but I also wanted to share why, as a Seller, now is one of the best times to consider listing your home!

As you will see in this article, #1 Reason to List Your House Today, the simple notion of supply & demand puts Sellers in a unique position when selling their home as of late!  

According to NAR, "there are more buyers out in the market right now than at any other time in the past three years."

If you, or someone you know, is considering selling their home, please don't hesitate to call!  

~Amy

Source: KCMBlog.com

Selling Your Home? Price It Right From the Start!

Hi Friends!

Even with our improving market here in the Salem-Keizer area, pricing a home to sell still requires expertise & knowledge.

I came across this article in my reading recently and thought it shared some great insight on why it's wise to property price your home from the beginning.

Take a look: Selling Your Home? Price It Right From the Start! and let me know your thoughts!

And if you're curious if now is the right time to be selling your home, please don't hesitate to call! I'd love to set up a consultation in my office to connect.

As always - please let me know if you have any questions!

~Amy

Source: KCMBlog.com

"DON'T TAKE MY WORD FOR IT!"

Some weeks are just more challenging in real estate. Last week was one of those weeks for me!

We've been in this adjusting real estate market for nearly four years now, but all of a sudden I've had a rash of sellers who don't want to hear the realities of the market.

So here's the low-down!

Homes are selling! There seems to be a pervasive myth that homes aren't selling. Well, they are. But it might not be at the price you had in mind. So strap up if you need to sell.

And that's my next subject: the need to sell. This, ladies and gentlemen, is not the market of 2004, 2005, 2006 or even 2007. We will never see that again in our lifetime. What this market and this economy is requiring from all of us is a paradigm shift from our "wants" to our "needs," especially in real estate. If you don't NEED to sell, then don't! It's no fun having your house clean all the time, strangers walking through it and waiting for an offer that just won't come if you're over priced. Plus, you probably have neighbors that do NEED to sell. Excess inventory doesn't help anyone.

What will help all of us is if we can take a deep breath and accept our new reality. This market will not be turning around for a long time. When this down-turn began four years ago, I was accused of being "negative" because I suggested it wouldn't be over by next spring! Well here we are, 4 years later, and now I get emails that go something like this: "we wish we had listened to you two years ago about the housing market." Dang, I wish they had too.

And while I wish I could report to you that we are near the bottom, I can't. We are counseling our clients to look 10 - 15 years out as they consider their real estate options. As recently as March my viewpoint was backed up by the owner of RE/Max International when he stated in his address to the RE/Max International Convention, that "we aren't even half way through this cycle in the market."

Cue: Groan loudly. I know, I know. But wouldn't you really rather know so you can plan accordingly - or change your plans if you need to??? Isn't that what a real professional does for you, is show you what's coming so you can get a jump on it? Wait, let me guess.....you don't want to believe me again. Heck, I don't want to believe myself.

So since I know, there's a lot of knashing of teeth right now, I thought I'd give you a link from the Distressed News Service, so you don't have to take my word for it. Once you've read the article (clear to the end!), please feel free to call me with any questions. There are many opportunities in real estate......you just have to know where they've shifted too!

HOME PRICES TO DOUBLE DIP IN THE WEST

Ciao for Now!

What's Up Pussycat?

There's an old song from the 60's (I think....if my memory hasn't failed me!), and it seems to describe our current real estate market and the reporting that's being done on it lately.

"What's up Pussycat? Whoa, ah, whoa ah, Whoa."

My clients tell me often how confusing the market is right now; headlines saying sales are up, but there are "For Sale" signs everywhere, in every neighborhood.

Take a look at this recent article in the REALTOR magazine. It really explains what's happening in our marketplace, and from a source who would want to paint a rosie picture if they could.

Existing Home Sales Fall in February

There are many factors affecting the stabilization of the real estate market. According to Dave Leniger, Co-Founder of RE/Max International, we're in for a see-saw recovery; some periods up, followed by some periods down. And in his opinion, were not even half way through this declining market. (I know it's a downer, but how can you make good financial decisions if you don't know the truth????)

We're trying to keep up on all the variables affecting the market, so don't hesitate to call or email us to get the skinny, 'cause we most likely will be chasing this cat for a while.

Ciao for now.

Will You Shift Your American Dream?

Secretary of the Treasury, Timothy Geithner has said that the government played a role in bringing down the housing market. But what's really interesting is that the reform that's being proposed will require a "shift of what many believe is the American Dream."

Click on this link to read more:

Government Role in Bringing Down Housing Market

What are your thoughts? Do you think, as a homeowner or future homebuyer that you should be shifting your American Dream?

Avoid Foreclosure in Salem, OR

Short sales provide better solution for families and communities

HAFA is a government-sponsored initiative overseen by the U.S. Treasury Department and administered by Fannie Mae. It assists all Home Affordable Modification Program (HAMP)-eligible homeowners in avoiding foreclosure, specifically through short sales or deeds-in-lieu of foreclosure.

“This is the first government program that gives incentives for short sales and lays down the process for short sales,” Charfen said. “More importantly, HAFA has brought more attention to short sales and that means banks, REALTORS® and the government are paying attention to short sales.”

REALTORS® should see the benefits of HAFA. “Many times REALTORS® spent time educating the consumer with little or no support. With the government stepping forward on this issue, it puts short sales in the forefront,” he said. “We’re already seeing banks that have added staff to process short sales and they’re stepping up the process so it doesn’t take as long.

“Short sales are so much more beneficial than a foreclosure. Previously we saw seven out of 10 properties in foreclosure were never listed,” Charfen added. “With a short sale, it offers a dignified solution to a family in financial crisis. You see less deterioration in the homes, less property values falling and it helps the overall community. With every foreclosure in a community, we can see property values for surrounding properties decline as much as nine percent.”

“HAFA has been a long time in coming,” he continued. “It’s been a huge collaborative effort with the government and many other organizations. There is no silver bullet to solving the foreclosure crisis and there’s no question that we’re going to continue to see increases in defaults. HAFA offers the real estate market a chance to move forward and stop the decline in property values.”

-Originally published on PAR's Just Listed
http://www.parjustlisted.com/archives/4214?utm_medium=email&utm_campaign=de036dde76-RSS_EMAIL_CAMPAIGN&utm_source=PAR+Just+Listed+Daily+E-News#utm_source=feed&utm_medium=feed&utm_campaign=feed

WHAT? - 27.2% Drop in House Sales. Who Knew?

Don't fall over in shock. 27.2% drop in housing sales and me blogging twice in one week, unheard of! But such shocking news being blasted everywhere requires this response!

Let me just say this, "Who Knew?" And the answer is, we did.

I'm just going to tell you I need to blow off some steam after listening to all the news reports yesterday. These same "reporters" were telling everyone in April, May and June that sales had made record increases over the previous year. As they were speaking then, I was yelling at my TV, "the 1st Time Home Buyer Credit stupid!" But did anyone listen. No! Especially not sellers.

Sellers heard the news and assumed the market was back. And for a moment, for some, it was. Unfortunately when most of us have visions of the market being back, it's at pre-2007 crash levels. The reality was, reporting those increases "over the previous year" referred to a market that was already way down in 2009.

So where are we today? While 27.2% sounds awful, it is simply a reflection of the 1st Time Home Buyer Credit ending. It's a reflection of a real estate market that is trying to normalize after being tampered with - again. It's a reflection of a real estate market that is often quieter in July because of families finishing up sports programs and taking vacations. And it's a reflection of a real estate market that is going to continue to decline a bit, until we clear out the distressed property inventory and improve the job picture.

And where does this leave you my friend? If you're a buyer, buy! You have 4% interest rates, home values that have nearly rolled back to pre-2000 pricing and inventory abounds. We even found that buyers buying now may do better on pricing than the value of the $8,000 tax credit. So what are you waiting for???? There is one caveat to buying, though. Buy with plans to be content in your home for about 12 - 15 years. No more musical houses!

If you're a seller, sell quickly. This market is projected to continue it's decline through 2012. Time is your enemy. To my Boomer friends, consider moving up your retirement plans. This is going to be a long slow recovery. Losing another chunk of your housing value, and then trying to down size in 5 - 10 years might not be the best plan. Call for my insights. My honey and I have been having long discussions over this very topic. Do you really want to vacuum the 2400sqft house when you're 65 and 70? How 'bout the weed-picking on the 1/4 ac lot? Think about it!

Think about it, you say. Let's be honest, these are confusing times. Most of us have never lived through an economic period like this. So when you hear this kind of news, CALL and get some good interpretation, and most of all, context for it. Your situation may call for action, or it may call for you to sit still. Either way, we're here as your Housing Counselors.

Lastly, don't be afraid. This housing market will correct itself when the job market improves. So lets put all our efforts and emotion into banging the drum on the legislative steps about JOBS. That's the key to cleaning up this mess.

Now - lets go have a glass of cyber-wine and take a deep breath!

Don't we all wish we had a crystal ball right now. But who's got it? During a recent interview on MSNBC, Robert Schiller of Case-

Schiller said this real estate market is not behaving similar to any past market that we've seen. Great....so now what???

So here's what we know:

We have record low interest rates.....but not forever.

The Feds have stepped up their purchase of Mortgage Backed Securities. In essence, they are the money behind the mortgages being issued. Last week they purchased $14B in MBS, whereas the most recent prior purchases were around $9.5B. But this pot of money will not last much longer.

The Fed now has $113B left of their $1.25T allotted commitment, with the buying program set to wrap up on March 31st. The Fed's purchases have helped home loan rates stay historically low - and although there has been some buzz about an extension of the program, it seems unlikely that will come to fruition.

When the Fed purchases stop, home loan rates will be very susceptible to moving higher - so if you or someone you know is thinking of selling/purchasing or refinancing.....I can't make it any clearer than to say...."Get the Lead Out!" Rumor has it that interest could bounce at least a point to 3 points higher when the Fed's stop providing the mortgage money.

Well so much for Amy's crystal ball. I wish we could see further into the future to know what we're facing....but for now we can only see out about as far as the Spring.

So, don't hesitate to call us if you need help making sense of this, or if you need a referral to a lender. We're here to help with all your real estate needs.

Till next time,

Amy :)

Hey everybody -

If you're like me, you might feel like you're on some kind of a roller coaster - up and down, up and down - when it comes to understanding this real estate market. Good news, bad news, bad news good news.

Just today, I ran across a great video and article that I think pretty much sums up what is causing so much "good" news, in spite of what you may be seeing you your neighborhood.

Enjoy it at and the related article at:

http://finance.yahoo.com/tech-ticker/article/yftt_378885/Housing-Bottom

And please don't hesitate to call me with any questions you have.....we're in a "W" style recovery and that definately affects when you may want to consider selling and/or buying.