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My Blog
Despite higher taxes, the looming threat of sequestration cuts, and an unemployment rate hovering just below 8%, housing keeps chugging toward recovery.
Sales of existing homes inched up 0.4% in January from a month earlier to a seasonally adjusted annual rate of 4.92 million, according to the National Association of Realtors. Existing homes, which include resold single-family homes, condos, coops and townhomes, were 9.1% higher than a year ago.
Most striking however is the fact that inventory has contracted to its lowest level since December 1999, more than 13 years ago. The number of available homes, which is not seasonally adjusted, fell 4.9% from December and is 25.3% lower than a year ago. With 1.74 million homes on the market, at the current sales pace, supply will be exhausted in just over four months. It represents the lowest housing supply since April 2005. In a normal market, a healthy supply level is about six months.
Buyer traffic is continuing to pick up, while seller traffic is holding steady, stated Lawrence Yun, chief economist of the National Association of Realtors, in a statement. In fact, buyer traffic is 40% above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. Weve transitioned into a sellers market in much of the country.
The low inventories are helping to push home prices higher. NAR reports that the median national price was $173,600 in January. Thats 12.3% higher than a year earlier, marking the 11th consecutive month of year-over-year price gains.
Even though the monthly increase was small, the report is actually another big step toward recovery, says Jed Kolko, chief economist at Trulia. While overall sales were up 9% year-over-year, the share of distressed sales fell. That means that excluding distressed sales, conventional sales were up 29% year-over-year, which is a major continued improvement for the market.
With less supply to satiate growing demand, the length of time homes have been spending on the sale block has decreased dramatically since last year. Nationwide, the median time on market was 71 days in January, or 28.3% below the 99 days clocked in January 2012. In the most sought-after markets brokers have been reporting bidding wars, a dynamic that began getting attention last summer in places like Silicon Valley, Miami and Phoenix.
Still, not everyone is keen to throw the term sellers market around just yet. I dont think it is a sellers market yet but I do think we are getting back to a more balanced market where its no longer simply a buyers market, cautions Stuart Hoffman, chief economist at PNC Financial Services Group.
Hoffman suspects that as prices continue to increase more homes will actually come to market, as more prospective sellers gain confidence to make major life changes and emerge from the financial grips of negative equity.
Over the course of 2012, nearly two million homeowners were freed of negative equity on their homes, according to a Thursday report from Zillow. In the fourth quarter roughly 13.8 million homeowners, or 27.5% of all homeowners with a mortgage, were underwater on their loans, owing more debt than their homes are worth. Thats down from 15.7 million a year earlier.
As home values continue to rise and more homeowners are pulled out of negative equity in 2013, the positive effects on the housing market will be numerous. Freed from negative equity, homeowners will have more flexibility, and some will likely choose to list their home for sale, helping to ease inventory constraints and moderating sometimes dramatic, demand-driven price increases in some markets, said Stan Humphries, chief economist of Zillow, in the report. But negative equity is still very high, and millions of homeowners have a very long way to go to get back above water, even with current robust levels of home value appreciation in most areas. As a result, negative equity will remain a major factor in the market for the foreseeable future.
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God Bless the USA
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This Beautiful Home in Historic Avondale is new to the Jacksonville Market. Check this out.
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A Short Commute to Down town and surrounding areas of Jacksonville. Would you like to have a Beautiful County Home?
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This beautiful Condo is SOLD. Do you want to know more about great finds in the Jacksonville Area? Contact me.
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Investment properties can be a terrific way to make some extra income and this market is ripe with investment opportunities; the sellers are motivated, the loans are available and interest rates are flexible. But before you start looking for a property, there are some things you should consider.
Pick your property. First, determine what kind of investment property youre interested in. Do you want to be a landlord? Do you want to buy and flip a house? Are you interested in commercial or residential property? Houses or apartments? Right now is a great time to find foreclosed properties. Spend time thinking about what type of property is right for you.
Know the market. Before you begin searching, learn the ins and outs of your local market. Study what prices look like in your area, and consider working with an experienced agent who is familiar with your location.. Find a reliable agent or broker to work with; a good team can advise you through every step of the process. Its also smart to talk to those who already have experience with investment properties.
Talk to your lender. You should always talk to your lender before you start searching. Its important to know what you can afford and what the interest rate is going to be. Meet with a couple of different lenders to see who can get you the best deal.
Consider hidden costs. You may plan on renting out the property, but dont forget about things like maintenance costs, taxes, tenant turnover costs and vacancy periods. A lot of buyers planning on renting out their investment property dont factor in tenant turnover costs. These costs accrue from things like advertising for a new tenant and spending time finding and showing, cleaning, repainting, replacing carpet, and more. And dont forget taxes. Every property youll own will have both property and income taxes youll have to pay, so its important to know your costs and your estimated income.
Are you interested in a Management Company? If you want to invest in a rental, but dont want to take care of the property yourself, you can consider a Management Company. These companies usually take 6 percent of the total rent in exchange for dealing with paperwork, maintenance, legal issues, any possible evictions and a myriad of other problems that may arise. As being a property manager can be extremely time consuming, many investment property owners choose to go with Management Companies. This is something you should decide before purchasing.
Consider all aspects of investing before committing. Right now, more and more Americans are turning to rental properties, so purchasing a property you plan on renting may be smart for you.
For more information on investment properties, please contact Prudential Network Realty at clairesellsjax@gmail.com, (904) 388-5005.
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Finding the Right Price for Your PropertyJACKSONVILLE, FL, Mar 19, 2013Selling your home can be an exciting time. Its a time for change, and for some, a time for starting over. It can also be a stressful time, especially when it comes to finding a buyer. Claire Autrey, REALTOR of Prudential Network Realty notes that the best way to assure you find the right buyer, is by first finding the right price. Many sellers make the mistake of thinking the value of their home should without a doubt be the same or more than what they purchased it for. Unfortunately, it doesnt work that way.
The truth is that there is an art to pricing a home, and to do it right you need to know the market, or find someone who does, says Autrey. Together, you need to compare similar properties in similar locations, make adjustments based on any differences among them, and of course track the market. If you do all of this right, you will have an educated opinion of the homes current value.
Autrey explains that one mistake buyers make is pricing too high, when in reality they would be better off pricing too low. If they price lowthat is, under the competition of comparable homesthen they will hopefully receive multiple offers,which will allow them to drive up the price to market value. They dont have to accept the first offer; they can wait until they find an acceptable price that the buyer is willing to pay. However, by pricing too high, they may not receive any offers and the listing will grow stale. Buyers often look for fresh listings, and when the home has been on the market too long, this can delay its sale because buyers assume there must be something wrong with it, says Autrey.
Autrey recommends carefully selecting a real estate agent who is in touch with your local market and knows how to price a home. Dont be offended if you think your home is worth more than what the market can offer at this time, says Autrey. Most homeowners would rather sell a home for less than have their listing expire. And dont forget that if your home has been on the market with no luck and your listing has gone stale, you can seek out agents who specialize in finding the right price for expired listings.
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Home Not Selling? 3 Options
1. Consider a Lease Option
Talk to your agent about a lease option. These are appealing to buyers who arent in the position to purchase a home outright, like many Gen Y homebuyers. This option gives your tenants the opportunity to purchase the home later at a set price. The tenants get a chance to test out the home, which can help swing their opinion if they are on the fence, saysAutrey.
A lease option is also better for you as a seller than merely renting your property, because typically lease payments are higher than rents.
Of course, have a lawyer carefully review all documents before finalizing things, cautions Autrey.
2. Consider a Short Sale
Do you owe more than your home is worth? Your agent may be able to negotiate with your lender and convince them to accept less than your mortgage balance.
Not every seller qualifies for a short sale, and not every lender will accept a short sale, explains LastName}, but it is something you may want to consider if youre in a pinch. However, make sure you realize that short sales will affect your credit and possibly, your taxes.
3. Moving for Work? Ask About Relocation
Are you pressed to sell because your job is relocating you? If your employer is transferring you, ask if they offer a guaranteed purchase program. Some employers hire relocation companies that offer buy-outs for their employees, and they dont always disclose this off the bat. Double check to see if you can get assistance
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This Lake Front Home Sold in under 10 Days
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Equal Housing Opportunity.
