Nationwide, the US housing market remains deep in the doldrums and economists expect prices to fall another 5% to 10% in many places.
When the rebound arrives, desirable zip codes will see price jumps first. Real estate is always local.
Here are a few things to start watching in your neighborhood:
How fast are homes selling? It is a good sign when price drops slowly down, inventory levels are actually a better gauge of where your market is headed. Ask a Realtor to tell you the number of listings now on the market in your area and the number of homes sold over the past year. An example would be that there are 100 listings and there were 240 sales last year, or an average of 20 per month. That equals a five-month supply, which is considered stable. More than six months and it’s a buyer’s market; less than three and sellers probably have the upper hand.
Compare your neighborhood’s price-to-rent ratio with what it was before the housing boom. Calculate the price-to-rent ratio, or the price of a home divided by one year’s rent on a comparable one. In general, it’s cheaper to buy when the price-to-rent ratio is below 15.
A decrease in foreclosure filing is often an encouraging sign but not always the case depending on the processing delays in foreclosures. Distressed owners tend to fall behind on lawn cutting and house painting long before a foreclosure. If you see several places in disrepair, don’t expect your home value to rise soon.
If you area is a prime location. As buyers return, they naturally grab places with short commutes and better schools and amenities which will help increase the sales price.
With married couples comprising less than 50% of all US households, home buyers are changing. A growing number of non-family households, according to a report from John Burns Real Estate Consulting are on the increase. Non-family households where no one is related to the house holder have increased nearly five times in the last 50 years from 7.9 to 39.2 million.
A lot of non-family households are looking at SMALL HOMES: preferring a home under 2500 sf with three or fewer bedrooms. LOCATION: the proximity to work and entertainment over home size and they are less interested in media rooms and pools.
Image by Bohman via Flickr
With married couples comprising less than 50% of all US households, home buyers are changing. A growing number of non-family households, according to a report from John Burns Real Estate Consulting are on the increase. Non-family households where no one is related to the house holder have increased nearly five times in the last 50 years from 7.9 to 39.2 million.
A lot of non-family households are looking at SMALL HOMES: preferring a home under 2500 sf with three or fewer bedrooms. LOCATION: the proximity to work and entertainment over home size and they are less interested in media rooms and pools.
Image via Wikipedia
Are you trying to decide whether to sell your home on your own or hire a Realtor? Check out this survey to help you make a decision:
Homegain.com conducted a survey on selling your home: For Sale by Owner “FSBO” vs. REALTOR®. Homeowners were asked whether they used a REALTOR® to sell their home or whether they attempted to sell it themselves.
83% said they used a REALTOR® and 17% tried on their own.
59% of homeowners that used a REALTOR® to sell their house were successful vs. 39% of the FSBO’s reflecting a 50% higher closing rate for those using a REALTOR®
81% of the homeowners that used a REALTOR® to try and sell their homes said they would use a REALTOR® again for their Real Estate needs.
88% of the homeowners that used a REALTOR® to try and sell their homes said they would use a REALTOR® again.
71% of FSBO’s who managed to sell their home on their own said they would try and sell their home on their own again.
The survey also pointed out that 24% of FSBO’s eventually enlisted the aid of a REALTOR®
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The following tips will help you make a great first impression when putting your home on the market. People decide within 30 seconds of walking into a home whether they might want to buy it, so it is important to make a great first impression.
Curb Appeal
Spend a little money on gardening by cutting overgrown shrubs and weeds and planting new shrubs or flowers. A bit of gardening can help paint a scene, so buyers can see their kids playing in the yard or can imagine entertaining in the back yard.
Condition of the Home
Make necessary repairs to the home before putting it on the market. Look for cracks, damaged paint and so on to repair. Not making repairs can cut the price of the house.
Buyer’s typically ask for $2-$3 off the price for every $1 of repairs that they perceive are needed, so it is crucial for sellers to know that, say, the roof needs to be replaced. That way, the seller can spend the $5,000 themselves rather than face a buyer demand $10,000-$15,000 off the price of the house.
Clean and organize the house – including drawers, cabinets & closets. It’s a good idea to de-clutter these areas so it doesn’t appear that there isn’t enough room in the home.
Finding the right assistance
Contact a Realtor who often provides their expertise in giving you tips to get your home ready for sale. They also often provide a list of Handymen, Home Stagers, Painters and Roofers that can assist you in getting your home ready for sale.
Get Organized:
Winter is a great time to organize your home so that you are ready for a fresh start once spring arrives. Your home will seem less chaotic once everything is put in its place.
Redecorating:
Update your décor. By changing the decorative accents in your home it can make a big difference in changing the look and feel of your home.
Make a Plan:
If you aren’t ready to get organized or redecorate your home, take the time to make a plan. Planning ahead for any home improvements you are going to undertake once spring arrives. Take this time to research any projects you are planning on starting; plan your budget and even get a head start on picking out or ordering materials.
Fannie Mae “FNMA” took back 130,767 foreclosed properties in the 1st and 2nd quarters of 2010 and they were holding 129,310 single-family Real Estate Owned “REO” properties.
Fannie Mae with such a large inventory announced incentives to buyers and sellers of its REO properties.
On 9/22/10, the program announced a seller assistance incentive for properties listed on their REO website, HomePath.com. They are also expanding the initiative to offer additional incentives to real estate agents and brokers. Qualified owner-occupied homeowners can received up to 3.5% of the sales price which may be used towards the buyer’s closing costs including a home warranty. Buyer’s agents may also qualify to receive a $1500 bonus.
Eligible offers must be submitted on or after September 23, 2010 and must close by December 21, 2010. The maximum amount of days to close escrow is 60 days from acceptance of their offer.
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