5 Reasons to Hire a Real Estate Professional

by The KCM Crew on May 14, 2014 in For Buyers, For Sellers

Whether you are buying or selling a home, you need an experienced Real Estate Professional to lead you toward your ultimate goal. In this world of instant gratification and Internet searches, many sellers think that they can For Sale by Owner or FSBO.

The 5 Reasons You NEED a Real Estate Professional in your corner haven’t changed, but rather have been strengthened in recent months due to rising interest rates & home prices as the market recovers.

1. What do you do with all this paperwork?

 

Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true Real Estate Professional is an expert in their market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?

 

According to the Orlando Regional REALTOR Association, there are over 230 possible actions that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, who knows what these actions are to make sure that you acquire your dream?

3. Are you a good negotiator?

 

So maybe you’re not convinced that you need an agent to sell your home. However, after looking at the list of parties that you need to be prepared to negotiate with, you’ll realize the value in selecting a Real Estate Professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people that you will have to be knowledgeable with and answer to, during the process.

4. What is the home you’re buying/selling really worth?

 

Not only is it important for your home to be priced correctly from the start, to attract the right buyers and shorten the time that it’s on the market, but you also need someone who is not emotionally connected to your home, to give you the truth as to your home’s value.

According to the National Association of REALTORS, “the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.”

Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?

 

There is so much information out there on the news and the Internet about home sales, prices, mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to, to tell you how to competitively price your home correctly at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a low-ball offer?

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.” – Dave Ramsey

Hiring an agent who has their finger on the pulse of the market will make your buying/selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line:

 

You wouldn’t hike up Kilimanjaro without a Sherpa, or replace the engine in your car without a trusted mechanic, why would you make one of your most important financial decisions of your life without hiring a Real Estate Professional?

If you are ready to buy contact us. Learn about our past clients experiences and see why we have sold over 150 houses in 9 years in real estate.

Noemi Cardoso
William Raveis Real Estate
Serving MA & RI
2014 Fiver Star Real Estate Agent
Fluent in Portuguese and English
Cell: 508-558-1945
www.DistinctiveHomes-NE.com

Where Prices are Headed over the Next 5 Years

KCM Team - November 12th, 2013.

Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey. Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey

The latest survey was released last week. Here are the results:

• Home values will appreciate by 4.3% in 2014.
  
• The average annual appreciation will be 4.2% over the next 5 years 
  

The cumulative appreciation will be 28% by 2018.

Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of over 16.8% by 2018.

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.

Housing Inventory Making a Come Back

The shortage of homes for sale earlier in the year created an imbalance of supply to demand which resulted in double digit year-over-year price increases nationally. According to a recent Wall Street Journal article, the inventory of homes for sale is now beginning to reach more normal levels. The article reported:

“Housing inventories increased in August and stood just 2.5% below their levels of a year ago, offering the latest sign that more sellers are testing the market after swift home-price gains over the past year.
Nationally, there were 1.98 million homes listed for sale in August, according to a report released Thursday by Realtor.com. That was up by more than 24% from the low point in February and up 1% from July. Inventories have increased for six straight months.”

What about Home Prices?

 

This doesn’t mean prices will collapse. The inventory levels are still depressed, just improving. As the article mentions:

“While the overall level of homes for sale remains relatively depressed, the report suggests that inventory may have hit a bottom earlier this year after an extended two-year decline.”

However, as we mentioned last week, properly pricing your home in this market can be tricky. You should depend on the advice of your real estate agent.

by The KCM Crew on September, 2013 · in For Sellers, Pricing

Noemi Cardoso
William Raveis Real Estate
Local Office. Local Agents. Local Knowledge.
www.DistinctiveHomes-NE.com

Buying a House? 3 Reasons to Do it Now!

by The KCM Crew on June 24, 2013

in For Buyers

Here are three great reasons to consider buying a home today instead of waiting.

1.) Prices Will Continue to Rise

Standard & Poors recently upgraded their 2013 forecast for the S&P/Case-Shiller Home Price Index to an 11% year-over-year increase from their original 8% projection.
 

The Home Price Expectation Survey, which polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts, projects a 22.3% appreciation in home values over the next five years. The bottom in home prices has passed. Waiting no longer makes sense.

2.) Mortgage Interest Rates Are Increasing

As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about 1/2 percentage point over the past several weeks.

The National Association of Realtors, the Mortgage Bankers Association and Fannie Mae are calling for interest rates to rise by approximately an additional ½ percentage point by this time next year. Some are trying to minimize the impact of higher rates. For example, Freddie Mac in their June U.S. Economic and Housing Market Outlook stated:

“At today’s house prices and income levels, mortgage rates would have to be nearly 7 percent before the U.S. median priced home would be unaffordable to a family making the median income in most parts of the country.”

However, an increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3.) It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait?
Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your  family to be safer or you just want to have control over renovations, maybe it is time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

In short, if you are playing with the thought of buying a home, NOW is the time. Give me a call and let's get moving and finding you that new home before the end of summer and lock you on the still good interest rates and housing prices.

Noemi Cardoso
William Raveis Real Estate
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
Noemi@DistinctiveHomes-NE.com
 

Buying a House: Is Now the Time?

by The KCM Crew on June 10, 2013

in For Buyers, Pricing

The real estate community is often criticized for always seeming to have a Pollyanna attitude about the housing market. Many believe that the industry’s current call ‘to buy now’ is nothing more than a scare tactic with the sole purpose of creating more commissions for the industry. Let’s take a look at whether or not that advice was good advice over the last year.

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. According to the most recent Case-Shiller Home Pricing Index, home values have risen over 10% in the last year. If we look at Freddie Mac’s Weekly Primary Mortgage Market Survey®, the 30 year mortgage rate has increased from 3.67% to 3.91% during that same period.
The table below compares the cost of the same exact house over the last twelve months:

 

We can see that the advice to buy a year ago made complete financial sense.

What About Moving Forward?

Most experts are not only calling for prices to continue to rise but are also upgrading their projections as the housing market is showing strong signs of recovering.

Regarding interest rates, the 30 year mortgage rate has soared by over a half point already this year and many believe that the increases will continue. Even those trying to be the voice of reason on this issue are projecting higher rates. For example, Polyana da Costa, senior mortgage analyst at Bankrate.com said:

“Rates are unlikely to keep going up so quickly and should remain below 5 percent.”

Bottom Line

The next time a real estate professional says that now is the time to buy they may not be giving you a ‘sales pitch’. They may be giving you nothing but excellent advice.

Visit www.Distinctivehomes-Ne.com and click on testimonials to see what my clients have to say about their experience. I look forward to hearing from you so we can start looking for your new home.

Noemi Cardoso
William Raveis. Real Estate
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
 

Home Prices Rose 9.3% in February!

Hopefully you all saw this morning’s news that home prices rose 9.3% in February which is the largest year over year gain since 2006 – that’s 7 years!  Additionally home prices increased 1% month from January 2013 month over month.  Read the latest Case Shiller report or here is a good summary from CNBC

Implications from today’s Case Shiller report from the Wall Street Journal (link on image below):

• Prices set to rise further
• Prices rising fastest in cities with job growth or the cities with the largest declines during the housing crisis
• Home prices continued to increase in the winter of 2012/2013 despite general seasonal slowdowns.

It’s a GREAT time to be in real estate.

                                                            -x-x-x-x-x-x-x-x-x-

Five Takeaways From the Latest Case-Shiller Report

ByNick Timiraos - April 30th 2013

Tuesday’s Case-Shiller report showed broad-based gains in home prices.

 

Home prices rose by 9.3% in February from one year ago, the largest such gain in the Standard & Poor’s/Case-Shiller 20-city index in nearly seven years.

Tuesday’s report is the latest sign that the U.S. housing market has rebounded after home prices hit a bottom one year ago. The report showed broad-based home price gains, with all 20 cities that compose the index posting year-over-year price gains.

Here are five takeaways from Tuesday’s report:

1. Prices set to rise: Price increases are likely to continue because there are more buyers chasing fewer homes for sale. At the current pace of sales, it would take around 4.7 months to sell the inventory of homes for sale, which is near an eight-year low. This price growth is also being fed by improved affordability, rising household formation, higher rents and fewer foreclosed properties on the market. Come this summer, home prices could be at a boil in more markets unless there are more homes that hit the market. The big fears of years past—that a “shadow inventory” of potential foreclosures would swamp the market—have given way to concerns that there aren’t enough homes to sate rising demand.

2. Who’s hot: Price gains have been the most dramatic in markets with strong job growth and/or in markets that experienced some of the most jaw-dropping declines over the past seven years. Housing markets such as Phoenix, Las Vegas, and Atlanta fit the latter category. Prices have fallen by more than 50% from their 2006 highs, but they’ve since posted double-digit increases. Prices were up by 23% in Phoenix and by 16.5% in Atlanta from a year ago. The year-over-year gain in Atlanta was a record—the largest annual gain since the Case-Shiller series began in 1992. Meanwhile, housing markets such as San Francisco, Seattle, and Dallas are benefiting from job growth and higher incomes. Prices in Dallas were up by 7.1%, the largest such gain since the Case-Shiller series for that city began in 2001. Prices were up by 18.9% in San Francisco.

3. Who’s not: Prices are the most sluggish in the markets that have seen less dramatic declines and where there is still an elevated level of foreclosed properties. While New York home prices were only up by 1.9% from one year ago, it’s worth remembering that the New York metro also posted about half of the peak-to-trough decline as Las Vegas or Phoenix. The market has had less of a bounce, but it also has seen a less precipitous decline. New York and Illinois also have higher levels of “shadow inventory” of potential foreclosures because banks have struggled to repossess homes in the states’ judicial foreclosure system.

More In Home Prices

• Why Rising Interest Rates Could Eventually Curb Price Gains
• Confidence in Housing Market Rose in February
• Housing’s ‘Wealth Effect’ Isn't What It Used To Be
• Shiller's Bottom Line: Risk Lingers in Housing
• Housing: It's Becoming a Seller's Market

4. Overstating the bounce: The S&P/Case-Shiller index could have overstated both the magnitudes of the declines and the more recent rebound due to the way the index is constructed. Because foreclosed properties tend to sell at lower prices than comparable homes—in part because banks are less patient sellers and in part because the homes may not be as well cared-for—price declines can be amplified by a rising share of distressed sales. When the share of distressed sales falls, on the other hand, prices may look like they’re rising faster than they are. Other price indexes that don’t include foreclosures, such as a home-value index published by Zillow, showed that prices were up by 5.1% in March from one year ago.

“The appreciation rates we’re currently seeing in the Case-Shiller composite are not broadly reflective of what’s happening in the national housing market right now,” said Stan Humphries, chief economist at Zillow. The Case-Shiller series, he added, “is overly skewed to quickly rebounding markets—particularly in the Southwest and on the West Coast—and is being boosted by a shift in transactions away from foreclosure re-sales.”

5. No winter holiday: Prices defied the seasonal slowdown. Normally, sales activity cools in the winter and prices take a breather. But that didn’t happen this year—home prices actually went up in December, January, and February. Prices in February rose by 0.3%, and after adjusting for seasonal factors, they were up by 1.2%. Look for an even larger year-over-year figure next month, when Case-Shiller reports on home prices for March. Why? The index hit its most recent bottom in March 2012, so the comparison is already likely to look good—even before considering the unusually strong winter.

Related: A Look at Case-Shiller, by Metro Area

Each specific market works in its own way but comes a point where we all are on the same wave. Our inventory is low, buyer's are wary waiting to see what happen, many can't find what they are looking for, who knows? it might just be too late for some but there are still good buys out there for the ready and willing buyer. Looks like, based on the statistics, that seller's market we have all been waiting for is not too far away. We must first pass over this transition period.

If you are thinking of taking advantage of this market before it is too late call me and let's get you ready in your new home. Considering selling, we need inventory, so call and let's create a marketing plan that will get your house SOLD!

Noemi Cardoso
William Raveis Real Estate
911 Main Rd
Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
Noemi.Cardoso@Raveis.com



 

Should Your Buyers Increase Their Offer?

Limited inventory and a very strong demand for housing has created an environment where bidding wars are commonplace in today’s real estate market. Homes priced properly are getting multiple offers within a short time of coming to market. This brings about a dilemma for the agent: How should they advise their client who is about to make an offer when other offers will also be presented?

Over the last several years, there wasn’t any pressure on the buyer to adjust their offer for three reasons:

1. There were plenty of homes for sale
2. Prices were falling
3. Mortgage interest rates were falling

They buyer could find another home easily for probably less money and a lower mortgage rate. There was no downside to not ‘upping the ante’. However, in today’s market, things have dramatically changed.

HOUSING INVENTORY

A normal real estate market has between 5-6 months worth of inventory. Over the last several years, the inventory of homes for sale had skyrocketed to 10 months. Most buyers in almost any price range had a multitude of houses to choose from. Today, the national month’s supply of inventory has fallen below five months. In many markets, there is not enough housing inventory to satisfy the current demand.

Conclusion: If the buyer loses the house they are bidding on, there is no guarantee they will find a similar home anytime soon.

HOME PRICES

Because of the limited inventory, home prices are again appreciating. The Case Shiller Pricing Index revealed that house prices rose by 6.8% in 2012. Experts are projecting home prices to increase by 5% to 8% in 2013.

Conclusion: If the buyer doesn’t get this house, there is a good likelihood that a similar home will cost more in the future.

MORTGAGE RATES

The ‘cost’ of a home to a buyer is determined by the price of the house and the expense associated with the financing. Mortgage rates are projected to inch up in 2013. In a recent forecast, the Mortgage Bankers Association predicted that rates could climb as high as 4.3% by the end of the year.

Conclusion: If interest rates do inch up, the ‘cost’ of the next home could be impacted significantly.

Bottom Line 

If a buyer truly loves the house they are bidding on, it probably makes sense to raise their bid now instead of waiting for another dream house to appear. by The KCM Crew on March 28, 2013

If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com  

Money Magazine: The Real Estate Market is Back

by The KCM Crew on March 18, 2013 ·
 

Last Friday, we ran an InfoGraphic from RealEstate.com that showed that the real estate market was coming back. Some objected that the information was from a survey of industry players that may have a natural bias. For the doubters, here is the cover of the latest edition of Money Magazine released this past weekend.

 

The magazine supported their case by explaining:

• In the last year, home prices increased in 92 of the country’s 100 largest metropolitan areas
• Homes are more affordable than they’ve been in 40 years
• The number of houses for sale is at the lowest level in a decade
• Price increases are projected for most of the country this year

It seems that even the unbiased realize that Housing is Back!

If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com

Real Estate: When She Speaks, We Should Listen

by The KCM Crew on March 2013

Ivy Zelman is an industry expert consistently recognized by Institutional Investor, Greenwich Associates, StarMine and The Wall Street Journal as an industry-leading analyst. What separates her from many other analysts is the fact that she has accurately called the real estate market continuously over the last decade.

Her Position in 2006

She was one of the first to call the burst of the housing bubble. She was nicknamed ‘Poison Ivy’ for the harsh positions she took in combating the overly optimistic views of many in the industry at the time.

What happened next?

Existing home sales plummeted, new construction starts feel to historic lows and prices dropped by 50% in some areas of the country.

Her Position in 2012

Ivy Zelman, in a Wall Street Journal article in March Stunned Home Buyers Find the Bidding Wars Are Back, projected that the real estate market was about to rebound and that home prices would begin to appreciate. She emphatically claimed:

“We very much believe we’ve hit bottom.”
 

What happened next?

Pending sales (homes going into contract) surged in May and have remained above what is recognized as a healthy market level ever since. Starting in June, home prices began to appreciate on a year-over-year basis. This continued through the rest of the year with yearend appreciation coming in at 6.8%.

Her Position Today

What is Ms. Zelman saying today? In an interview on CNBC, she said:

“I think we are in Nirvana for housing…I’m probably the most bullish I’ve ever been fundamentally…I think home prices could go up for four to six years…Today, the urgency and sentiment toward buying residential real estate is back.”
 

What will the future bring?

If Ms. Zelman’s past predictions are evidence of her understanding of the housing industry, it seems that real estate is about to make a dramatic comeback.

If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com

Housing is Back! But for How Long?

It's a fact: The housing sector continues to gain momentum. The National Association of Realtors reported in February that the national median existing single-family home price was $178,900 in the fourth quarter of 2012, up 10 percent from $162,600 in the fourth quarter of 2011.

Trending Into 2013

In December home prices rose again by 8.3 percent compared to a year earlier--the largest increase in more than six years, according to a CoreLogic report released early last month. It was also the tenth straight month of year-over-year increases. States seeing the biggest price increases were Arizona (up 20.2 percent), Nevada (up 15.3 percent) and Idaho at 14.6 percent. Only four states saw declines in home prices from last year: Pennsylvania, New Jersey, Illinois and Delaware.

While the U.S. housing market has certainly headed into 2013 with home prices on the rebound, many wonder how long this upward trend will last. A surge in home prices generally forecasts an increase in home buying. Home buying revives the housing industry, which is a key indicator for measuring the U.S. economy's progress and health.

Buyers Remain Selective to Price and Property

Home prices not only surged due to tightening supply but also as a result of a decline in available foreclosures and distressed properties. This means more home buyers are choosing relatively more expensive and non-distressed properties. As a result existing home prices have increased, and in some areas substantially, during this time. The decline in distressed property sales should also have resulted in newly constructed homes being more competitively priced.

Yet in many instances new home prices have increased in tandem with existing home prices. In some areas, this has caused buyers to experience low inventory and bidding wars for homes.

Interest Rates Still at Record-Lows

For 2013, the Federal Reserve has vowed to keep interest rates and home loan rates "exceptionally low" in an effort to spur economic growth and to shore up the housing markets. The Federal Reserve, or the Fed, is the central bank of the United States and regulates the U.S. monetary and financial system. It oversees four general areas:
1) Conducts monetary policy
2) Regulates banks and protects the credit rights of consumers
3) Maintains the stability of the financial system and
4) Provides financial services to the U.S. government.

The Bottom Line

As the economy strengthens from the housing comeback and other major reviving indicators such as manufacturing and trade, interest rates could rise. Great opportunities to purchase or refinance a home still exist, but fence-sitters should be advised as the path of least resistance for interest rates is higher, since they are currently at record lows.

If you have any questions about your personal situation, contact the professional who supplied you with this month's issue of YOU Magazine.

If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com

 

Fannie: Housing to See 'Sustained Growth'

Daily Real Estate News - February  2013

  

The housing market is “on a sustained growth path,” according to the latest economic outlook by Fannie Mae’s Economic & Strategic Research Group.

"One of the key developments for the housing market last year was the general consensus that home prices, on a national basis, bottomed earlier in the year and continued to build momentum, exhibiting robust year-over-year gains unseen since the housing boom," according to the report.

Housing inventories are at the lowest since December 1994 and fewer distressed homes have helped to lift home prices, according to Fannie Mae economists.

Among some of Fannie Mae economists projections for this year:

• Home prices: Fannie Mae economists predict that the median price of existing homes will increase 2.3 percent on an annual basis this year, reaching $181,000. The median price of a new home will likely increase 1.6 percent to $248,000. For 2014, economists predict that home prices will increase an extra 2.8 percent.
• Home sales: Existing-home sales will likely rise 11.5 percent in 2013, and new-home sales will rise 12.5 percent, economists predict.
• Mortgage rates: Rates will likely edge up slightly this year with 30-year fixed-rate mortgages projected to average 3.8 percent this year and rise to 4.4 percent in 2014.

Source: “Fannie Mae: Housing Is 'on a Sustained Growth Path',” Inman News (Feb. 21, 2013)
Read More Fannie: Housing Shows Signs of 'Durable, Long-Term Recovery'

If you are thinking of buying a home in Westport or surrounding areas please visit www.DistinctiveHomes-NE.com for a free list of homes for sale in Westport and Bristol County MA and RI.

If you are thinking of selling your home contact me for a FREE Current Market Analysis and to learn about our Market Plan to get your home SOLD!

We work with one going in mind, YOURS!

Noemi Cardoso
Local Office. Local Agents. Local Knowledge.
William Raveis Real Estate
911 Main Rd - Westport MA 02790
Cell: 508-558-1945
www.DistinctiveHomes-NE.com
noemi@DistinctiveHomes-NE.com

Improving Foreclosure Prices Drive Recovery

Written by: Steve Cook Tue, June 5, 2012

Significant price increases in bank-owned foreclosures are driving gains at the national, regional and local levels, helping home prices turn the corner with small quarterly and yearly gains.

National average prices for bank-owned foreclosures (REO) were up 8.1 percent over a year ago on a median price-per-square-foot basis, according to May data from Clear Capital, and have outpaced non-REO price declines of -0.7 percent by 8.8 percentage points.

“Strength in REO-only price trends as well as some early indications of price gains spreading from low tier sectors to the mid, and higher-priced homes is helping confirm that the country continues to make progress on its recovery, and we are expecting to see improvements extend over the next several months,” said Dr. Alex Villacorta, Director of Research and Analytics at Clear Capital.

Clear Capital reported today that in May national median home prices grew on both a quarterly and yearly basis for the first time since August 2010. Regional performance improved across the board with the West, South and Northeast also seeing quarterly and yearly gains. However, the Midwest sustained declines, but milder since last.

“National real estate prices in May have finally moved past the continued losses of the last few years. The subsequent stabilization pattern seen in recent months has progressed into the start of moderate growth,” said Villacorta.

Short-term quarterly price trends picked up slightly at the national level, with appreciation of 0.4 percent turning into the first quarterly gain since November of 2011. The positive move at the broader market level is a reflection of the increasing strength at the regional level.

Helping to support growth at the national level, the West saw a notable jump in prices over the quarter, taking the lead over all the regions with growth of 2.7. The South recorded home price appreciation of 1.2 percent quarter-over-quarter, doubling the small gains of 0.6 percent reported on last month. Similarly, the Northeast matched the national level gains of 0.4 percent over the quarter, showing a modest uptick over the gains of 0.2 percent reported last month.

The Midwest continued to absorb price declines. With prices declining only -2.0 percent over the quarter the magnitude of the declines are subsiding, as compared to last month’s quarterly losses of -2.7 percent.

While growth in REO-only prices is driving broader market gains for most of the regions, the impact on overall prices depends on the level of REO market saturation. For example, the Northeast has seen incredible growth in the REO-only sector shown above, yet has only recorded 1.6 percent gains year-over-year in overall prices. Because the Northeast has a mere 10 percent REO saturation, the lowest level across all regions, even substantial growth in the REO-only price segment hasn’t swayed overall prices significantly.

Additionally, the Northeast’s REO-only prices are more sensitive to shifting demand, fueling the seemly high annual gains, said Villacorta.

The Midwest is the only region that continues to see REO-only price declines on a year over year basis. While REO-only price growth has led the other regions into broader based growth, the Midwest has yet to receive assistance from this sector on overall progress. It’s worth noting that the Midwest’s REO saturation levels are still the highest of all the regions. As such, price weakness in the REO-only segment has been harder for the market to shake off, resulting in sustained declines at the broader level, as seen in overall yearly declines of -3.1 percent.

However, each of the three regions now seeing gains in REO-only prices first saw long term reductions in REO saturation rates. And while the Midwest continues to face declines, it has achieved a reduction in its REO saturation rate over the last several years, from a high of 45 percent in 2009, down to 37 percent in May.

If you’re curious to see what’s currently for sale in your area of interest, start your search at the best real estate website www.DistinctiveHomes-NE.com


Noemi Cardoso
RE/MAX Welcome Home
Serving Westport, Dartmouth, Fall River, MA
Little Compton, Tiverton, RI and surrounding towns.
www.DistinctiveHomes-NE.com

The Top 5 Reasons Deals Fall Apart

by Dean Hartman on May 24, 2012

I’ve been told that 29% of all contracts signed never make it to the closing table- that nearly 3 in 10 transactions where a buyer and seller have come to terms (no easy feat in this market) fall apart. In a more normal market, I would say 90% of deals close. So, I figured if I could point out some of the reasons deals are crumbling, maybe those putting them together could prevent some of the challenges.

1. Short Sales – In theory, they sound terrific because the buyer can low-ball an offer. They get little resistance from the seller (because the seller isn’t getting any money out of the deal anyway). However, the existing lender isn’t just accepting any offer. Appraisals are done and scrutinized. Lenders are not agreeing to deep discounts. Additionally, the lenders are still, in many cases, taking months to make decisions and many buyers are losing patience and withdrawing offers (and finding another house).

2. Appraisal Issues – It seems that there are more appraisals coming in short than has been the case historically . Conceptually the value of a home has been loosely defined as “what a reasonable buyer would pay to a reasonable seller”. With the market including so many “unreasonable” sellers (short sales, foreclosures, distressed situations, etc.), many of the comparables used for an appraisal are dragging the numbers lower than they should be.

3. Title Challenges - The analysis of Permits and Certificates of Occupancy are at an all time high. Judgments and liens are more prevalent amongst buyers and sellers. The complications on title are messing up and delaying deals.

4. Poor Pre-Qualifications – Many deals were never really deals to begin with. Loan officers need to take more care in reviewing tax returns, pay stubs, bank statements, contracts, and such before issuing pre-approvals and taking in applications. Simply not seeing unreimbursed expenses on the tax returns can kill a loan.

5. Unforeseen Circumstances – It seems there is an inordinate amount of unusual stuff coming up- buyers losing a job, credit challenges arising as a loan is in process, property damage, buyer’s remorse. Everyday seems to bring a new one.

Many issues are visable up front if people really look at them (some are not). Those that can be seen usually are seen by the top professional real estate agents, loan officers and attorneys. Many, when addressed in the beginning, can have happy resolutions. It’s just another reason why you need to be associated with the best people you can find.

Noemi Cardoso
RE/MAX Welcome Home
Serving Westport, Dartmouth, Fall River, MA
Little Compton, Tiverton, RI and surrounding towns.
www.DistinctiveHomes-NE.com

NOW is the Best Time to Buy a Home!

by: Metroplex Real Estate,National Real Estate News

The following was sent to all members of the Ebby Halliday Companies today by President & CEO Mary Frances Burleson:

This could be the best time in a generation to buy a home. Here’s why:

Housing affordability is the best it has been in decades.

Nationwide, average home prices are approximately one-third lower today than at their peak in 2006.

The cost to buy is very often less than the cost to rent a comparable property. In fact, buying is cheaper than renting in 98 out of America’s 100 major markets.

Interest rates are at an historic low, and today’s low rates can be locked in for the next 30 years.

The general economy appears to be improving, with employment increasing, median wages rising, and little indication of possible inflation.

Overall, conditions indicate today may be the perfect time to buy a home.

If you’re curious to see what’s currently for sale in your area of interest, start your search at www.DistinctiveHomes-NE.com.

Noemi Cardoso
RE/MAX Welcome Home
Serving Westport, Dartmouth, Fall River, MA
Little Compton, Tiverton, RI and surrounding towns.
www.DistinctiveHomes-NE.com