Archive for December, 2009

Two-Year House Price Depreciation Ends

U.S. house prices edged up 0.2 percent between the second and third quarter, ending a two-year skid, according to the latest quarterly housing valuation analysis by IHS Global Insight. California led the nation with a 2.1 percent home price increase during the quarter. Of the 330 metro areas analyzed in the House Prices in America study, 169 showed price increases during the quarter while 161 posted declines. By comparison, 317 metro areas had price declines in the fourth quarter of 2008.

In annual terms, house prices nationwide edged up slightly by 0.9 percent during the third quarter. This marks the first increase since the second quarter of 2007 when the housing market began to decline. From their peak in 2007, U.S. housing prices have fallen an average of 10.7 percent.

The study also finds that the nation as a whole is slightly undervalued. None of the markets included in the study were found to be extremely overvalued in the third quarter, compared to 2005 when 52 markets fit that description. However, most of the markets that are somewhat overvalued are located in the Pacific Northwest. MON, DEC 28, 2009

Waiting For the Bottom

Waiting for the bottom in real estate is similar to grabbing a Yo-Yo at the bottom, you are usually a little early or a little late

Waiting for the bottom in real estate is similar to grabbing a Yo-Yo at the bottom, you are usually a little early or a little late

There are many people out there waiting for the bottom to hit in many facets of the economy, including real estate.  Perhaps there will be a big announcement one morning across newspaper headlines and across the internet “THE BOTTOM IS HERE: NOW IS THE EXACT MOMENT TO BUY”.  Of course by the time the announcement comes the bottom will have hit and the exact time to buy real estate will have come and gone.

A great analogy to the bottom of the real estate market is a yoyo.  Take a yoyo in your hand and use it.  Can a person grab the yoyo at the exact moment it hits bottom every time?  Chances are a person will grab it just before it hits bottom or just after, rarely at the exact bottom.   Real estate is the same game, if it is indeed a game.  If people knew, absolutely knew, the exact time to buy stocks, real estate, or any other investment then no one would ever have a financial worry.

For people who believe in investing in real estate now is a great time to buy.  Interest rates won’t be low forever, real estate has either already hit the bottom, is about to or is already on its way up, we’ll know for certain sometime in the future.  If you want to buy at the bottom, buy now or wait until it’s too late, when you can look back and say, “If only I had bought then.”

Real Estate, Where are We?

It is a buyer's market

When it comes to real estate the general sentiment appears to be that of putting 2009 in the past and looking forward to a brighter 2010.  Looking at where we are and where we are headed as far as real estate goes will take us from the present into the future.  Currently home values are affordable, because prices are low and interest rates are low.  Both of these low levels add up to the fact that it is a great time to be a buyer when it comes to real estate.

Interest rates have been hovering at 5% or lower for the better part of the past year, a trend that cannot be expected to continue.  As the market stabilizes more and the economy gets better, interest rates will rise.  While home prices still may drop in many areas of the country, they will not drop much more.  Areas that are less affected by foreclosures, short sales and REO properties are likely to level out faster than other areas due to the lack of distressed sales in their inventories.  A rise in interest rates may bring real estate prices down to sell but the days of 20% and 30% decreases appear to be unlikely.

In a nutshell now is a great time to buy if you have been waiting for the right time to plunge into the market.  Take advantage of low interest rates while they are here.  It is a buyer’s market now, it won’t be forever.

For an interesting analysis of the real estate conditions and a forecast of 2010, by CNN Money, click here.

Examine the Closets in Your Home

An organized closet can make the difference when trying to sell a home

When considering selling real estate the question surfaces, what can I do to improve my home and make it more appealing to a prospective buyer?  Looking at your closets might be the answer.  Closets may be the small improvement your home needs when getting ready to sell.

Newer homes tend to have bigger closets and they aren’t just dark spaces with doors any more.  Today’s closets, thanks to companies like California Closets and other offshoots, are filled with light and organized spaces like drawers, shelves, shoe racks and hanging bars that hang at different heights to accommodate different articles of clothing.  Some closets come across as small rooms.  Regardless of whether you have a new home or an older home, if your closets aren’t organized they can be.

Closets can be do-it-yourself projects or created by a contractor or a closet company.  Remodeling closets can be an inexpensive re-model that can add value to the sale of your home without breaking the bank.

Home Inspection Before You Sell

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Consider doing a home inspection before selling your home

If you are considering selling your home in the current real estate market it would be prudent to have a home inspection completed before putting your home on the market.  It is rare that a buyer will not have a home inspection done before closing and being aware of any problems and taking care of them prior to selling can alleviate the pain that surprise issues can bring.

It is a competitive real estate market out there.  A seller’s best chance of snagging a buyer comes with having his real estate in top notch condition.  More that looking good a home needs to function well and it is important to examine the bones.  A home inspection will inform the buyer of faulty plumbing, wiring, heating and cooling issues, the need for roof replacement, painting, etc.

If problems with a property are faced and dealt with before selling, there should be no surprises when going through the contractual steps before closing.

For more information on home inspection and locating a home inspector visit the website for the American Society of Home Inspectors by clicking here.