Showing posts with label Market Conditions. Show all posts
Showing posts with label Market Conditions. Show all posts

Wednesday, February 12, 2014

8 Worst Home Improvements

“With many factors to consider such as cost and time, deciding what remodeling projects to undertake can be a difficult decision for homeowners,” said National Association of Realtors® President Steve Brown. “Every neighborhood is different and the desirability and resale value of a particular remodeling project varies by region and metro area. Before undertaking a remodeling project, homeowners should consult a Realtor® as they are the best resource when deciding what projects will provide the most return upon resale,” said Brown.
  1.       Home office remodel: You will only get back about half of the money you invest to create a home office when you sell your home. That's because even though more people are working out of their homes these days, not all buyers want a space dedicated exclusively to work. Such features can make it hard for a new owner to use the space as a bedroom if they wanted to. 
  2.       Sunroom addition: Homeowners who add a sunroom to their house recoup on average sellers are lucky to recoup about half of their investments. Homeowners who are willing to sink $73,000—the average cost of a sunroom addition—into their house would be better off investing in a different home improvement project.
  3.       Bathroom addition: Homeowners who build a bathroom addition recoup on average only about 60 percent of the project's cost when they sell the home, according to the report. However, homeowner's true return on this particular investment depends on how many bathrooms they already have. Homes with one less bathroom than comparable properties in the neighborhood would be better served by this project. If you are a bathroom short compared to other homes in your neighborhood, then it is going to make more sense.      
  4.     Backup power generator: Homeowners who obtain a backup power generator recoup on average only about 59 percent of the project's cost when they sell the home, according to the report. Although most homeowners don't consider a backup power generator essential, its popularity varies a great deal from one region to another. 
  5.     Garage addition: Homeowners who build a garage addition recoup on average about 62 percent of the project's cost when they sell the home, according to a report by National Association of Realtors  The limited versatility of a garage doesn't necessarily justify its high cost, which can average more than $58,000. A garage addition project is a labor intensive effort, often requiring builders to pour a slab, construct walls, and build a roof, among other things.
  6.     Master Suites unless you plan on living in your home for many years to come you will only get about 60% return on your investment.
  7.     Family Room Addition: The average cost of adding a family room can add as much as $80,000. If you really want to do add the room, do it for your family, not for the ROI.
  8.       Pools. In ground pools are costly and do not add to the home’s value. Some buyers are turned off because of the high maintenance and insurance costs.


Monday, January 6, 2014

2013 Best Homes Awards by Fine Homebuilding

With the holidays having come to a close, I find myself reflecting back to the best of 2013. Doing my usual internet surfing for a good topic this morning I discovered the 2013 Fine Home Building HOUSES Awards. They have awarded some real gems for the year of 2013. The awards say alot about the trends of homebuilding, and remodeling. Here is a video of their 2013 pick for the best Small Home Award:

2013 Best Small Home 



2013 Best Remodel - Fine Homebuilding Houses Awards

Ross Levy and Karen Andersen of Levy Art & Architecture designed the BEST REMODEL of the year, a restoration and reinvention of this Edwardian San Francisco row house. The extensive remodel successfully bonds preservation with performance while maintaining a critical focus on the homeowners' lifestyle. Few homes accomplish so much with such little impact.

2013 Best Retirement Home - Fine Homebuilding Houses Awards


The award for Best Retriment Home goes to Jon Nystrom for the house he designed and built for himself and his wife in Boerne, Texas. Designed with an emphasis on long-term livability and built with regionally appropriate, durable, and low-maintenance materials, this home is remarkably fit for aging in place in style and comfort.

Find out more about this award-winning homes and others at: http://www.finehomebuilding.com/house...

Thursday, December 12, 2013

Solid Housing Recovery Taking Hold

Properties starting the foreclosure process in November dips down to its lowest level since December 2005, according to RealtyTrac's U.S. Foreclosure Market Report for November. Foreclosures are down 10% from the previous month and down 32% from a year ago. Bank repossessions in November were down 19% from the previous month and down 48 percent from a year ago, the lowest level since July 2007.

 "While some of the decrease in November can be attributed to seasonality, the depth and breadth of the decrease provides strong evidence that we are entering the ninth inning of this foreclosure crisis with the outcome all but guaranteed," said Daren Blomquist, vice president at RealtyTrac.  "While foreclosures will likely continue to stage a weak rally in certain markets next year as the last of the distress left over from the Great Recession is dealt with, it is highly unlikely that there will be a foreclosure comeback that poses any major threat to the solid housing recovery that has now taken hold."

Savannah Housing Market

How is Savannah fairing in the foreclosure market?  Keller Williams Real Estate Broker Don Callahan said; "As the amount of distressed home sales decline and the overall inventory decreases we are beginning to see an increase in home values. It is refreshing to see the stabilization of our local market." Good news for the Savannah housing market.

Source: Realty Trac US Foreclosure Market Report 
http://www.realtytrac.com/Content/foreclosure-market-report/november-2013-us-foreclosure-market-report-7946

Wednesday, December 11, 2013

Georgia Home Prices Expected To Rise

Georgia is one of several states in the West and the South that are expected to see the highest price gains in the next 12 months according to the REALTORS® Confidence Index Survey. The home price increase is expected to be in the 4.8% range. Limited inventory in these regions is what will be driving the prices up.

Source: National Association of Realtors article: Expected Price Growth Strongest in West and South Markets 


Wednesday, November 6, 2013

Four Areas That Can Affect A Home's Curb Appeal

The housing market is making its recovery and there's a buzz of activity in our real estate office. Now may be the time to make the long awaited housing move. Whether you are buying, selling or updating a home here are some things to consider regarding a home's curb appeal.

A home's front entry is the focal point of curb appeal. In addition to making a statement a front door should reflect the home's interior. The entryway should have some style, updated light fixtures, a handsome entry door lockset, a wall mounted mailbox are elements that create a style.

Outdoor lighting can make a huge impact in the appeal of a home in addition to providing safety and security. Lighting can be used to illuminate a path, accent trees or landscaping.

Now is a good time to do some gardening, so create a new planting bed that will blossom in spring with lots of color and contrast. Fall is the time to plant bulbs they are e A seasonal
container garden adds a great deal of charm and warmth to a home. Create a garden around your mailbox for an inviting and cheerful look.  A tidy landscape is an indication of a homeowner cares for their home. So sellers, tidy up your yards by trimming hedges, edge around walkways and curbs, and add some annuals and fresh mulch to gardens. A flower box under a window or hanging off a porch railing can really be a welcoming feature.

One way to infuse a home with rich historical flavor lay in the details, such as molding, wainscoting, crown molding. Frame a window with molding or shutters then paint them with a contrasting color for emphasis. These details are a small investment and well worth the payoff.

Monday, November 4, 2013

Is It Possible Home Sales Are About To Climb?

Things are looking up for our economy according to today’s news. With mortgage rates hovering in the 4.25% range, unemployment down, and less foreclosures and bankruptcies, consumers are more likely to borrow. Below are some of the news sources that I tapped into.

The Fed’s uncertainty with bond buying and reducing asset purchases makes for a tough interest rate environment. The rates were flat most of last week until Friday when the rate rose slightly from 4.13 to 4.25 for a 30yr fixed loan. Read more at the Mortgage News Daily site: http://www.mortgagenewsdaily.com/consumer_rates/330213.aspx


Bloomberg reports today that Americans will cure their debt troubles by taking out loans because of a 5yr low in the unemployment rate. In addition the banks will be more inclined to loan due to a cleaning of their own balance sheets. Read more at Bloomberg news: http://www.bloomberg.com/news/2013-11-04/americans-debt-hangover-seen-ending-in-boost-to-growth-economy.html

Wednesday, October 23, 2013

Mortgages Rates Rising & QM Standards in 2014 are Loans Hard to Get?

An analysis of home loans showed that 1 in 5 current mortgages would not meet the qualified
mortgage safe harbor standard that goes into effect in January.

What the New Rule Means for Borrowers:
AOL Real Estate:  "Under a provision in the Dodd-Frank Act, lenders must verify a mortgage applicant's ability to repay the loan. A borrower's debt-to-income ratio must be 43 percent or lower, plus the mortgage rate needs to be close to the national average prime mortgage rate (within 1.5 percentage points for first-lien loans and within 3.5 percentage points for subordinate-lien loans).
The new QM thresholds take effect Jan. 10, 2014, which will not only impact lenders' liability, but also consumers' ability to qualify for home loans."
Read more: http://realestate.aol.com/blog/2013/10/23/dodd-frank-qualified-mortgage-standard/
Marketwatch: “The average credit score among borrowers who received a mortgage in September was 732, down from a peak of 750 a year prior…. To be sure, the bar to getting a mortgage remains high. Applicants who were denied a mortgage in September had an average FICO score of 696 …”
Read more: http://www.marketwatch.com/story/mortgage-lenders-ease-credit-score-standards-2013-10-16

The Toledo Blade: ”…the regulations also could have the unintended effect of making it more difficult for many working-class families to qualify for mortgage loans offered by major banks.
Read more at http://www.toledoblade.com/Real-Estate/2013/10/13/Middle-class-buyers-may-feel-squeeze-of-new-mortgage-rules.html

How Are The Banks Doing? 

“SunTrust Banks said Tuesday it will eliminate 800 jobs nationwide, including in Charlotte, the result of a slowdown in its home-loan refinancing business.” “ … with mortgage rates rising this year, lenders have seen weakening demand for refinancing loans. That has led banks, including Charlotte-based Bank of America and San Francisco-based Wells Fargo, to trim the work force that processes those applications.”


Maybe now is the time to by before rates get higher and loan standards get tougher. Search the MLS for free here: http://www.realestateinsavannah.net/

Wednesday, August 14, 2013

Many New Business Open in Savannah GA

We are extremely fortunate to have several grand openings for new business here in Savannah this week. Whole Foods, which opened on Tuesday the 13th has gotten a lot of press of course. (Review my July 23rd article Retail Establishments Increasing Property Values  here.) However also in the new Victory Station shopping plaza is a Zoës kitchen that will open on Thursday the 15th.  Zoës describes themselves as having Mediterranean style menu with southern origins.  In fact the kitchen founder’s name sake, Zoe, is from the south and used her Greek heritage for inspiration on the restaurant’s menu. They offer lunch and dinner items for eat in, or take out. The take out can be individual meals, tubs, or for a family of four. If you are having guests in for the upcoming holiday call them for catering. They have four menus or ‘party packs’ that serve up to 10 people. This is another wonderful addition to the already bustling area at Victory Dr, the Truman Pkwy and Skidaway Rd.

More at Victory Station

Also staged to open within the next weeks at Victory Station is the Chipotle Grill and Pet Smart.
Chipotle Grill Mexican Grill is a different kind of fast food chain as their tag line is: Food with Integrity. That means they source organic and local produce when practical, and that they use dairy from cows raised without the use of synthetic hormones. Chipotle also, whenever possible, uses meat from animals raised without the use of antibiotics or added hormones. This is good news for the growing community of local natural and organic farmers that sell to other Savannah food retailers. As for Pet Smart, this will be their second store in Savannah. There is one located on Abercorn St in the south side of the city.

Grand Opening Sandfly

Just on the outskirts of midtown Savannah lies the charming community of Sandfly, home to the historic site of Wormslow.  In Sandfly at the intersection of Skidaway and Norwood Rd sits Norwood plaza which has been undergoing a facelift this past year. The plaza has attracted to some great new business to the delight of residents in the area. There is a Power Yoga studio, a new Pizza place called Your Pie, and the well-established Cutters Point coffee shop. This Friday the 16th the plaza will be the location of another grand opening for the store Great Harvest Bread Co., a national Freedom Franchise.  The ‘Freedom’ part means that the local owners get to run their business in a way that meets their community’s unique needs. You can read about the two women owners Janet and LeeAnn here. The Great Harvest Bread Company also has a unique approach to their business. Each morning they fresh-grind premium whole wheat in each bakery and blend it with wholesome ingredients, like yeast, salt and honey. They offer highly nutrient dense breads and sandwiches on a daily basis and each day different breads and sweets. Sounds like a great place to have lunch with a friend.


All of these recent new business can only mean that Savannah is growing, and keeping up with national trends. 

Monday, August 12, 2013

Short Sale – a Good Deal?

Thinking of purchasing a short sale because you think you can get a good deal? It can be a very complicated process filled with many possible pitfalls.  A short sale means the seller is about to go into foreclosure, they owe more than the home’s current worth.  The seller’s lender must agree to accept less than the amount owed to pay off the loan now, rather than taking the property back by foreclosure and trying to sell it later. Lenders agree to a short sale because they believe it will net them more money than going forward with a lengthy and costly foreclosure process. This means when purchasing a short sale property you are actually negotiating with a bank – not the seller. Given this it is important when making an offer you consider things from the banks point of view. It is also helpful to be aware of what is going on in the market at the time. Banks are not settling with prices as low as they were a few years ago.

Should My Offer Be Low?

Among the key issues you must consider before making a bid on a short sale property is how any repair or upgrade work will be handled. Not all properties that are put up for sale as short sales’ will have any work done. Many properties are sold as is, which of course means you will be doing the repairs. So using needed repairs as a negotiating tool for a lower price may not be an option. If however after seeing what obvious repair work is needed you are still willing to proceed with a bid there are few things that would be helpful to know. Before writing a short sale offer, a buyer should ask his or her agent for a list of comparable sales. Banks are not in the business of giving away a home at rock-bottom pricing. The bank will want to receive somewhat close to the current market value. The short sale price may be much lower than comparable sales, or what the lender may accept. If the comparable sales don't support the sales price, it's unlikely the bank will accept your offer. So your offer may have to be equal to or higher than the short sale price, especially if there are other offers on the table.  If there are certain closing costs that the seller typically pays, the bank will most likely pay those fees. However, if you agree to pay part of those fees, even if the bank receives an offer identical to yours, your offer will net the bank more money. A big question on the short sale seller's mind is whether the buyer is financially capable of closing the transaction.
So make sure to include a pre-qualification letter from your lender. Here is a list of the paperwork your agent/broker should be sending:
  • Listing agreement
  • Executed purchase offer
  • Buyer's pre-approval letter and copy of earnest money check
  • Seller's short sale package – make sure your agent/broker assures this is complete
If the package is incomplete, the short sale process will be delayed. In this event, the bank might even shred the package. So make sure your agent/broker has some experience with short sales. As a buyer you may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process. The key to a successful sort sale is careful documentation of every piece of paper, every record, and every lender interaction. Some short sales get approval in 2 to 8 weeks. Others can take 90 to 120 days, on average. If you're running past 120 days, it's possible that the listing agent or a third-party negotiator is not on the ball and is lax about calling the bank. Calling the bank means waiting on hold anywhere from 10 minutes to an hour or longer. Or, a lengthy short sale period can also mean the bank has internal problems, not enough staff or has lost the file a few times, prompting the listing agent to resend the package over and over. It can also mean that the appraisal is substantially higher than your offer, and the listing agent is building a case for a new appraiser.

Patience is key. You'll most likely eventually get short sale approval. 

Monday, October 10, 2011

Real Estate News Update

Jobs Exceed Expectations

Most of the news this week was not good for mortgage rates. The economic data was generally a little stronger than expected, and investor concerns about Europe decreased. As a result, after reaching new lows early in the week, mortgage rates ended the week higher.

Against a consensus forecast of 60K, the economy added 103K jobs in September, and the data for July and August was revised higher by 99K. The Unemployment Rate remained at 9.1%, as expected. Average Hourly Earnings, a proxy for wage growth, increased 0.2% from August. The good news for the economy is that the Employment report surpassed expectations and makes a recession look less likely.

Maximum Number of Mortgages

One individual can mortgage up to eight homes now. Our limit was 4 if the subject property was an investment or second home. There is no limit on the number of mortgages an individual can have if the subject property is going to be the primary home for the borrower. Keep this in mind for any of your investor clients who have been holding at 4 properties because of the previous rule.

The All Important Credit Score

Credit scores are critical to getting approved and the interest rate a borrower can get. The concept of risk-based pricing makes it more important than ever for a borrower to make sure their credit score is as high as possible. We now offer the Credit Expert system to all of our clients as a part of the pre-approval process. Using this score illustrator helps us show the borrower how different actions will influence their score. Have you ever been unsure if you should pay off or pay down a credit card? Wonder no more as we can show you the impact to help you improve your score and lower your interest rate. If you would like a demonstration of this, just let me know.

A real estate news update from Michael Caputo at Starkey Mortgage. Contact Michael at mcaputo@starkeymtg.com.




Thursday, June 2, 2011

Housing Imperils Recovery

While Real Estate is a local business, I have been talking about the dramatic hit our local market has endured in the past two quarters. This piece in the Wall Street Journal reports the same for the National market.

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Home Prices Sink to 2002 Levels; Consumer Confidence Falls as Pessimism Grows.
By S. MITRA KALITA And NICK TIMIRAOS

Home prices have sunk to 2002 levels, effectively wiping out almost a decade's worth of home equity across the U.S. and imperiling the fragile economic recovery as Americans confront the falling value of their biggest investment.

A closely watched home-price index released Tuesday, the S&P/Case-Shiller National Index, showed that prices nationwide fell 4.2% in the first quarter after declining 3.6% in the fourth quarter of 2010. The index had seen increases in 2009 and early 2010.

"Home prices continue on their downward spiral with no relief in sight," said David M. Blitzer, chairman of S&P's index committee. The report signals "a double dip in home prices across much of the nation," he said.

That doesn't bode well for the economy, which historically has depended on home buying and other consumer spending to rebound. Falling prices hurt economic growth in a number of ways. Not only do homebuyers curb spending when their homes are losing value, but continued price erosion keeps families stuck in homes they can't sell because they are worth less than what they owe.

Another 5% decline in prices will increase the share of underwater homeowners with mortgages to 28%, up from 23% at the end of 2010, according to CoreLogic Inc. A 10% drop will leave more than one-third of all U.S. borrowers underwater.

Declining home values, rising prices and unemployment continue to weigh on consumer confidence. Another wild card is wrangling over the debt-ceiling in Washington, where lawmakers remain at odds over raising the nation's $2.4 trillion cap.

The Conference Board, a business research group, said Tuesday that its confidence index fell to 60.8 last month, down from 66.0 in April, as Americans grew more pessimistic about the economy.

Economists are similarly downbeat, revising expectations downward for second-quarter growth; Goldman Sachs last week notched its forecast down to 3% from a previous 3.5%.

"If you had to identify one thing in particular that's been responsible for the subpar nature of this cycle, it would be housing," said Joshua Shapiro, chief U.S. economist for MFR Inc. "The bad news is I don't expect it to turn around any time soon."

Economists say it could take years for the housing market to return to health and it will take faster growth, strong job gains and improvements in consumer confidence to make it happen.

Residential construction has subtracted from growth in gross domestic product, the broadest measure of all goods and services produced in the economy, in four of the seven quarters since the recession ended in June 2009. That's a contrast with the past three recoveries when housing added to economic growth for at least a year and half following the downturns in the 1980s, 1990s and early 2000s.

Two years ago, home prices stopped falling as low prices, along with home-buyer tax credits, spurred a surge in sales. But demand collapsed last summer after those credits expired and left markets without enough buyers to absorb a steady flow of foreclosed properties.

Home prices have tumbled for eight straight months, and in March they slid to their lowest level since the start of the 2006-2009 downturn, according the S&P/Case-Shiller monthly 20-City Composite Index.

Indeed, 12 of the 20 metropolitan areas tracked in the index posted new lows in March. Only the Washington, D.C., and Seattle markets saw month-to-month growth of 1.1% and 0.1%, respectively. Minneapolis led the declines, with prices falling 3.7%; on an annual basis, its prices were down 10%.

Sellers such as Julie Lindsay are feeling the pinch. Ms. Lindsay, a retired state worker, listed her three-bedroom house in the St. Paul, Minn., suburb of Centerville for sale in April, thinking it would show better in the spring. "The flowers are planted. Things look nice," she said. "But it's not been great. I've had two people come see it, a couple of phone calls and that's about it."

She has lowered the price to $145,000—and tries not to think about the home's value three or four years ago. "It was worth $200,000 then," she says. "Now the county says it's worth $92,000. Holy mackerel."

Ms. Lindsay suspects a number of more affordable foreclosures nearby are hurting her chances of selling. "You can get newer houses for what I am asking for my old house if you buy a foreclosure," she said.

One bright spot: as prices fall, affordability is returning to pre-bubble levels in a growing number of markets. Prices in Atlanta, Cleveland, Detroit, and Las Vegas have fallen below their January 2000 levels, while prices in Phoenix are only slightly above that mark.

Economists say a shortage of "trade up" buyers has become one of the biggest drags on housing, leaving many markets dependent on first-time buyers and investors who land discounts on foreclosures by making all-cash bids.

"There's just no equity," says Christopher Thornberg, a housing economist at Beacon Economics in Los Angeles. "You add that up and what you're dealing with is, of course, a situation where there's not enough demand to really push the market forward."

Investors are making it harder for some buyers to enter the market. The National Association of Realtors recently reported that while overall sales are weaker this year than last, the volume of homes sold for $100,000 or less in the first quarter—many to investors in all-cash deals—was 8.9% higher than the same period last year.

Consumer Confidence Tumbles
Case-Shiller quarterly data reflect sales recorded during the January-March period, which were negotiated several months ago. The real-estate industry had hoped strong spring sales would turn the tide.

That hasn't happened. While mortgage rates last week fell to their lowest level of the year, there is little evidence that sales have gained momentum.

Lending remains tight, but buyers are also spooked and unwilling to lock in purchases amid the prospect of further price declines.

"People are reluctant to reduce their price to the place where the consumer says, 'I'm getting a great deal,'" says Ivy Zelman, chief executive of Zelman & Associates, a housing-research firm.

Some industry watchers say last year's price gains were artificially driven.

"The market showed a little stability that was largely stimulated by the tax credit, but that stability was very short-lived," said Michael Feder, chief executive of Radar Logic. "To call this a double dip is an overstatement. The fact is we have never really started to recover."

View original article: http://online.wsj.com/article_email/SB10001424052702303657404576357170425058088-lMyQjAxMTAxMDAwMTEwNDEyWj.html

Thursday, March 31, 2011

Do you really want to sell your house?

For those who believe everything they hear in the media and think that the housing market is at a complete stand still, I have some news. There are many homes that are selling, and selling quickly. They simply fit into one of two categories.


They are:


Well-presented, or Very well-priced.


Or, preferably - both.


Some of my buyer clients have recently run into extremely competitive sit­uations resulting in multiple offer scenarios. I have found myself resorting back to techniques that were used during the boom periods to have their offers brought to the top of the pile. These include writing letters defining their current and past employment situations, and descriptions of exactly - what nice families they are.


What is causing this type of competition in a down market?


These are basically sellers who have smart Realtors® and they are taking their advice. Before the home is put in the market, the agent goes through the property and points out areas that need improvement. As a result:


-- Interiors are getting a fresh coat of paint. -- The home is immaculately cleaned. -- Any deferred maintenance is immediately taken care of. -- Repairs are being made. -- Out-of-date décor such as flowered wall paper is being removed. -- New kitchen counters are being installed. -- The exterior is repainted, in necessary. -- But most importantly, the home is priced correctly.


Perfect homes, of course are not the only houses that are selling. Foreclosures, estate sales and properties that need freshening but do not have the resources to do so are also sometimes generating multiple offers. The key is - they must be priced to sell.


The message here is that, even in this difficult market, there are houses that are coming on and selling on the first day they are listed. The secret - and this should not be much of a secret - is: Listen to your Realtor®!


Copyright 2011 "What Types of Homes are Selling Right Now? Perfect Ones!" Claudette Millette, Broker, Owner, The Buyers' Counsel - (508) 881-6230

Monday, January 24, 2011

Mortgage Rates Climb

By Chris Vogler chris.vogler@bankofamerica.com
Bank of America Home Loans


Stronger than expected economic data with a hint of higher inflation was negative for mortgage markets last week. Concerns about the level of demand for US securities from China added to the pressure. As a result, mortgage rates ended the week higher.

A number of factors combined during the week to push mortgage rates higher. The recent trend of improving economic data continued this week in the housing sector. The inflation information seemed to show a sharp increase. Later in the week, a Treasury auction for securities which provide protection from inflation showed that investor concerns about future inflation are growing. Investors also worried about a decline in demand for US bonds from China. As the largest foreign holder of US fixed-income securities, any sustained drop in demand from China would have a large impact on US bond markets, including mortgage-backed securities (MBS) markets.

Overall, last week's housing sector data was positive. December Existing Home Sales rose 12% from November. The inventory of unsold existing homes declined 4% to an 8.1-month supply. First-time buyers purchased 33% of existing home sales. December Housing Starts fell from November, but December Building Permits, a leading indicator, rose to the highest level since March. The performance of the housing market varied in different regions, but to see improvement on the national level is encouraging.

Thursday, December 30, 2010

Real estate market primed for turnaround

Great article in the Savannah Morning News about the current real estate market in Savannah...and check out the spotlight on the great things happening at Keller Williams!

Posted: December 29, 2010 - 11:04pm Updated: December 30, 2010 - 8:06am
By Adam Van Brimmer

Charles Dickens didn't have the Savannah real estate market in mind when he penned the line, "It was the best of times, it was the worst of times."

The notion certainly applies, however.

The best of times: Available housing and commercial buildings are as affordable as they've ever been. Even with interest rates rallying off historic lows in the last month, it's a buyer's market. And there is plenty of property to choose from. The supply and diversity, particularly on the commercial side, should be an advantage for Savannah.

With Savannah's economic engines - the port, manufacturing facilities, distribution centers - slowly spooling up in the second half of 2010 and tourism booming, the outlook is for a busy 2011.

The worst of times: The real estate bust has handcuffed those who work in the industry and brought community banks to the brink. The area has lost 3,000 construction jobs since 2007, and the local home builder ranks have been halved over the last two years.

A handful of real estate brokerages now handle the majority of transactions. For example, residential brokerage Keller Williams Coastal Area Partners had several record months in 2010 despite the weak housing market.

As for the banks, the drop in real estate values attracted regulator attention. Two Savannah-based community banks were closed in 2010 as was another bank with a Savannah branch. Two more received a public scolding from regulators. Several others are saddled with loads of non-performing loans.

Yet the underlying reasons for the housing slump - limited job creation, stagnant incomes and constrained in-migration - will dissipate as the economy recovers.

Real estate will follow, according to economist Michael Toma, the director of Armstrong Atlantic State University's Center for Regional Analysis.

"We will continue to grow, because in the long run this remains an attractive place to live, work and retire," Toma said. "And as we grow going forward, we'll do so in a much more sustainable and healthier way economically."


Good supply

Savannah has what home buyers and businesses are looking for - and at a good price.

The average sales price of a home is relatively unchanged compared to a year ago. But buyers are getting more for their money: The average list price is down 17 percent.

Sales are up in Chatham County's traditionally desirable areas such as the Historic District, Wilmington Island, Skidaway Island and Isle of Hope. The areas that benefited most from 2009's first-time homebuyer tax credit programs were off those marks in 2010.

Yet inventory remains high across the Savannah metro area, which includes Bryan and Effingham counties, and the result is low prices and a wide range of amenities.

"We do have a little something for everyone, from starter homes to waterfront," said Monica Spillane, president of the Savannah Board of Realtors.

The commercial real estate sector is "starting to percolate," as one broker in town put it. The oversupply of space that resulted from the Port of Savannah's growth prior to the recession will be attractive to companies looking to expand and relocate.

Chatham County alone has more than 40 million square feet of ready-for-lease warehouse and manufacturing space.

"Savannah has all types of facilities, in different configurations and different increments of space," said David Sink, a commercial real estate agent with Collier Neely Dales. "Somebody coming into this market can get what they want. That's not the case anywhere else in the region."

Undeveloped land, complete with City of Savannah services and close to the interstates and the port, is also available. High-profile locations in Chatham County include the State of Georgia megasite, Crossroads Business Park, the CenterPoint Intermodal Center, Dean Forest Business Park and the Newton Tract.

Bryan County features Interstate Centre and Belfast Commerce Centre, and Effingham County boasts the Effingham County Industrial Park and the Research Forest Tracts.


Stability needed

Just as Savannah's real estate collapse trailed most of the rest of the country, the fear is a recovery may come late, too.

Residential sales and sales prices didn't start to trend down here until September 2007 and didn't enter freefall mode until a year later. Foreclosures began to mount about the same time. Values have dropped about 30 to 40 percent - depending on who you talk to - since the bust and continue to creep down.

Some bankers doubt prices have hit bottom while others believe values are "bouncing along" the bottom.

Stemming foreclosures and selling off repossessed properties will lend stability.

Unfortunately, Savannah's foreclosure rate has been climbing since April, according to foreclosure research firm CoreLogic, and the number of bank-owned properties is double what it was 18 months ago. Savannah's community banks alone count repossessed properties as 2.5 percent of their assets on average.

Throw in the market's big banks - Wells Fargo, Bank of America, SunTrust - and it's easy to see why Realtor signs with "bank-owned" scrawled on them dot seemingly every street in town.

"We're going to have to get through the majority of those issues to see across-the-board stability," Spillane said. "There are just too many things we have no control over. When a bank owns 10 foreclosures in one neighborhood, they obviously can't hold on to those, and that impacts prices. Fortunately, some neighborhoods are through it and have stabilized. Are prices moving up or are they going to move up? I'll let the statistics speak to that."

On the commercial side, all rates and prices are negotiable. Vacancy rates have risen from 7.5 percent at the end of 2007 to close to 20 percent currently. Lease rates are averaging $3.73 a square foot for warehouse space and $8.14 per square foot for office space, according to a report by Gilbert & Lattimore Commercial Real Estate.

Commercial values won't stabilize until inventory shrinks and then will likely rise rapidly as no speculative construction is under way or in the planning stages.

"Once the current oversupply of inventory is absorbed, the real estate market should turn around very quickly," said Harvey Gilbert of Gilbert and Lattimore. "It's really just a matter of when."

View original article: http://savannahnow.com/exchange/2010-12-29/real-estate-market-primed-turnaround

Monday, November 15, 2010

The Shrinking House: Downsizing the American Dream

By: Cindy Perman
CNBC.com Staff Writer


Home ownership has long been a symbol of the American Dream and for a while there, we SUPERSIZED it. But since the recession, we’ve been downsizing it.

The median home size in America was near 2,300 square feet at the peak of the market in 2007, with many McMansions topping 10,000 square feet.

Today, the median home size has dropped to about 2,100 square feet and more than one-third of Americans say their ideal home size is actually under 2,000 square feet, according to a survey by real-estate site Trulia.

“The whole glow of bigness kind of wore off all of a sudden,” said Sarah Susanka, an architect and the author of “The Not So Big House” book series.

Builders are responding by chopping out rooms that people just don’t use anymore, particularly formal living rooms and sitting rooms.

“You’re not having the king and queen of England to dinner but Joe and Kathy from next door — and they’d prefer to be in your informal space!” Susanka said.

Even media rooms, game rooms and libraries are on the way out, added Boyce Thompson, the editorial director for Builder magazine.

Every year, Builder does a concept home that represents where the market’s at. This year, it was called “A Home for the New Economy,” which weighed in at around 1,700 square feet – and, interestingly, was only designed virtually. (Take a virtual tour.)

Instead of having a formal living room and a family room, the Home for the New Economy has one big “great room” and instead of a home office, an extra bedroom on the main floor doubles as a guest room/home office—or even an in-law suite. They were even careful to chop out unnecessary hall space.

“The key today is to provide flexible space,” Thompson said.

So, instead of a game room, you may have a gaming area in part of your great room. Instead of a library, you may have a reading nook.

The “proliferation of bathrooms” is also on the way out, Susanka adds. For a while there, it seemed, every room had its own bathroom and people just didn’t use them. It’s time “to bring some sanity back to the equation,” she said.

But just because a house is small, doesn’t mean it has to feel small. Architects are finding all kinds of design tricks to make a home feel bigger, from varying the ceiling height — seeing that a ceiling is higher in the next room makes it feel even bigger — or putting a direct line of sight to an outdoor space like a porch or deck. As your eye sees past the room to the outside, the space feels bigger.

The Front Porch Makes a Comeback

It’s not just the inside of the house that’s changing, it’s the outside, too. The yards are smaller, with many developments favoring shared green spaces over big private yards.

And, the front porch is back. Builders are increasingly moving the garage to the back of the house and adding a big porch on the front.

Seeing a big porch through the dining room, and a shared green space beyond that adds to the illusion that you are getting more — and it makes you want to get out there and reconnect with your neighbors.

At the height of the market it was all about “suburban sprawl,” with everyone in their back yards, with their own deck, their own swingset, their own pool — and barely knowing their neighbors. Today, the buzz word is “smart growth” — smaller more sustainable communities that really have a sense of community.

That’s partly because it’s better for the environment and community building, but there’s a more practical reason.

“Most households now have two people working,” said John McIlwain, a senior resident fellow at the Urban Land Institute. “Who wants to spend their time cleaning their house … or taking care of big yards … when they have kids to take care of?”

He said a magnet on his daughter-in-law’s fridge sums it up: “A clean home is a sign of a wasted life!”
It’s not just young people, either — empty nesters don’t want to spend their weekend mowing the lawn either!

This shift is evident in Denver’s Stapleton neighborhood, a new urbanist community built on the site of the old airport, which is meant to bring that suburban, small-town feel into a neighborhood within the city limits.

Here, their yards are tiny by design and no one has a pool — not even the million-dollar homes. Instead, they have an 80-acre shared park, aptly named Central Park, smaller “pocket parks” that become shared yards and three — soon to be four — public pools.

The Friday Afternoon Club

The concept may seem offputting to some, who may not think they want to know their neighbors. But there’s a sense of community there that you scarcely find elsewhere, with passersby saying hello to families on the porch and making plans to head out to a pocket park to play, or attend a free concert or movie in the park.

“People have just accepted the tradeoff,” said Denise Gammon, a vice president at Stapleton’s developer, Forest City Enterprises. “They think, ‘I don’t have a big, private yard, but boy do I have this amazing range of open space that’s completely accessible to me,’” she explained.

“It creates a really cohesive community,” added Heidi Majerik, the director of development at Forest City, who lives and works in Stapleton. “We get 1,000 to 2,000 people at weekend events and there are tons of informal events like the Friday Afternoon Club, where people bring out chairs, wine and appetizers and the kids play,” she explained.

“There’s a lot of movement toward neighborhoods like this,” Susanka said.

Susanka is currently designing a home in a similar neighborhood, Libertyville, Ill., just north of Chicago.

Neighborhoods like Stapleton and Libertyville are more densely populated but more vibrant, highly walkable and have charming downtown areas — something the next crop of homebuyers is demanding.

“Gen Y is looking for that kind of vibrant downtown flavor with smaller homes,” Susanka said. “They realize that there’s a value to being connected to one another but still maintain their privacy. There’s a balance between privacy and community.”

This new love affair with the front porch reflects that desire for community, and extends into the downtown area.

“They’ll go from their house down to the local restaurants, which then becomes like a part of their house,” she explained.

It's 'Back to the Future': Green Edition

It feels a lot like “Back to the Future,” with this return to small-town life. But there’s one major difference: Energy efficiency.

If it’s one thing the recession taught us, it’s to stretch our dollars further and no where is that more evident than in energy consumption.

Energy consumption has moved from an option when building a new home to the standard when it comes to appliances, windows, furnaces and climate control.

“People are really concerned after the energy scare of 2008 — they’re worried about what it’s going to cost to run their house,” Thompson said. “No one wants a gas guzzler — especially because it impairs resale down the road.”

Among the energy-smart options you may see down the road, that are just being experimented with now, are master controls for a home’s energy efficiency (much like the master control for the lights, heat and stereo) as well as private wind turbines in the backyard that may be connected to the grid — or take the home completely energy independent.

Of course, there will always be some people who want that big backyard and the fact that land prices are so cheap right now will make that more accessible for those who want it, McIlwain said.

One thing’s for sure: The memory of the recession will continue to impact the decisions people make when it comes to the home for years to come.

People are asking themselves, “How are we going to make this house in proportion to the next economic downturn, so that we’re not out on a limb?” Susanka said.

Monday, October 18, 2010

6 Reasons to Reduce Your Home Price

By: G. M. Filisko
Published: March 19, 2010
Article from HouseLogic.com

While you'd like to get the best price for your home, consider our six reasons to reduce your home price.

These six signs may be telling you it’s time to lower your price.

1. You’re drawing few lookers
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.

2. You’re drawing lots of lookers but have no offers
If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.

3. Your home’s been on the market longer than similar homes
Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.

4. You have a deadline
If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.

5. You can’t make upgrades
Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.

6. The competition has changed
If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what's still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.

From a Maine House, a National Foreclosure Freeze


By DAVID STREITFELD
Published: October 14, 2010
DENMARK, Me. — The house that set off the national furor over faulty foreclosures is blue-gray and weathered. The porch is piled with furniture and knickknacks awaiting the next yard sale. In the driveway is a busted pickup truck. No one who lives there is going anywhere anytime soon.

Nicolle Bradbury bought this house seven years ago for $75,000, a major step up from the trailer she had been living in with her family. But she lost her job and the $474 monthly mortgage payment became difficult, then impossible.

It should have been a routine foreclosure, with Mrs. Bradbury joining the anonymous millions quietly dispossessed since the recession began. But she was savvy enough to contact a nonprofit group, Pine Tree Legal Assistance, where for once in her 38 years, she caught a break.

Her file was pulled, more or less at random, by Thomas A. Cox, a retired lawyer who volunteers at Pine Tree. He happened to know something about foreclosures because when he worked for a bank he did them all the time. Twenty years later, he had switched sides and, he says, was trying to make amends.

Suddenly, there is a frenzy over foreclosures. Every attorney general in the country is participating in an investigation into the flawed paperwork and questionable methods behind many of them. A Senate hearing is scheduled, and federal inquiries have begun. The housing market, which runs on foreclosure sales, is in turmoil. Bank stocks fell on Thursday as analysts tried to gauge the impact on lenders’ bottom lines.

All of this is largely because Mr. Cox realized almost immediately that Mrs. Bradbury’s foreclosure file did not look right. The documents from the lender, GMAC Mortgage, were approved by an employee whose title was “limited signing officer,” an indication to the lawyer that his knowledge of the case was effectively nonexistent.

Mr. Cox eventually won the right to depose the employee, who casually acknowledged that he had prepared 400 foreclosures a day for GMAC and that contrary to his sworn statements, they had not been reviewed by him or anyone else.

GMAC, the country’s fourth-largest mortgage lender, called this omission a technicality but was forced last month to halt foreclosures in the 23 states, including Maine, where they must be approved by a court. Bank of America, JPMorgan Chase and other lenders that used robo-signers — the term caught on instantly — have enacted their own freezes.

The tragedy of foreclosure is that some homeowners may be able to stay where they are if their lenders are more interested in modification than eviction. Without a job, Mrs. Bradbury is not one of them. Her family, including her 14-year-old daughter and 16-year-old son, lives on welfare and food stamps.

“A lot of people say we just want a free ride,” Mrs. Bradbury said. “That’s not it. I’ve worked since I was 14. I’m not lazy. I’m just trying to keep us together. If we lost the house, my family would have to break up.”

It has been two years since she last paid the mortgage, which surprises even her lawyers.

“Had GMAC followed the legal requirements, she would have lost her home a long time ago,” acknowledged Geoffrey S. Lewis, another lawyer handling her case.

GMAC, which began as the financing arm of General Motors, has received $17 billion from taxpayers in an effort to keep it from failing and is now majority-owned by the federal government. A spokeswoman for the lender declined to comment on Mrs. Bradbury’s case because it was still being litigated.

John J. Aromando of the firm of Pierce Atwood in Portland, Me., the lawyer for GMAC and Fannie Mae, the mortgage holding company that owns Mrs. Bradbury’s loan, did not return calls for comment on Thursday.

Fannie Mae and GMAC, which serviced the loan for Fannie, have now most likely spent more to dislodge Mrs. Bradbury than her house is worth. Yet for all their efforts, they are not only losing this case, but also potentially laying the groundwork for foreclosure challenges nationwide.

“This ammunition will be front and center in thousands of foreclosure cases,” said Don Saunders of the National Legal Aid and Defender Association.

Just a few miles from the New Hampshire border, this slice of Maine does not have much in the way of industry or, for that matter, people. Mrs. Bradbury grew up around here, married and had her children here, and married for a second time here. Her parents still live nearby.

In 2003, her brother-in-law at the time offered to sell her a house on property adjacent to his. It was across from a noisy construction supply site. But it was ringed by maple, evergreen and willow trees, and who does not want to be a homeowner, especially when GMAC Mortgage will give you a loan for the entire purchase price and then another loan to improve the property?

“I was very happy,” she remembered. “It was a new beginning.”

But Mrs. Bradbury lost her job as an employment counselor in 2006 and did part-time work after that. Her husband, Scott, was in poor health and had other problems. He could not work as a roofer. She fell behind and got a modification from GMAC. It increased her monthly payments and provided no relief.

Finally, in late 2008, she stopped paying altogether, and GMAC asked a court to approve her eviction without a trial. By the summer of 2009, this removal was well under way when Mr. Cox picked up her file.

Mr. Cox, 66, worked in the late 1980s and early 1990s for Maine National Bank, a subsidiary of the Bank of New England, which went under. His job was to call in small-business loans. The borrowers had often pledged their houses as collateral, which meant foreclosure.

“It was extraordinarily unpleasant, but it paid well,” he said. “I had a family to support.”

The work exacted its cost: his marriage ended and a serious depression began. He gave up law and found solace in building houses. By April 2008, he said, he was sufficiently recovered and started volunteering at Pine Tree Legal.

By the time Mr. Cox saw Mrs. Bradbury’s case, it was just about over. Last January, Judge Keith A. Powers of the Ninth District Court of Maine approved the foreclosure, leaving the case alive only to establish exactly how much Mrs. Bradbury owed.

Mr. Cox vowed to a colleague that he would expose GMAC’s process and its limited signing officer, Jeffrey Stephan. A lawyer in another foreclosure case had already deposed Mr. Stephan, but Mr. Cox wanted to take the questioning much further. In June, he got his chance. A few weeks later, he spelled out in a court filing what he had learned from the robo-signer:

“When Stephan says in an affidavit that he has personal knowledge of the facts stated in his affidavits, he doesn’t. When he says that he has custody and control of the loan documents, he doesn’t. When he says that he is attaching ‘a true and accurate’ copy of a note or a mortgage, he has no idea if that is so, because he does not look at the exhibits. When he makes any other statement of fact, he has no idea if it is true. When the notary says that Stephan appeared before him or her, he didn’t.”

GMAC’s reaction to the deposition was to hire two new law firms, including Mr. Aromando’s firm, among the most prominent in the state. They argued that what Mrs. Bradbury and her lawyers were doing was simply a “dodge”: she had not paid her mortgage and should be evicted.

They also said that Mr. Cox, despite working pro bono, had taken the deposition “to prejudice and influence the public” against GMAC for his own commercial benefit. They asked that the transcript be deleted from any blog that had posted it and that it be put under court seal.

In a ruling late last month, Judge Powers said that GMAC, despite its expensive legal talent and the fact that it got “a second bite of the apple” by filing amended foreclosure papers, still could not get this eviction right.

Even the amended documents did not bother to include the actual street address of the property it was trying to seize — reason enough, the judge wrote, to reject the request for immediate foreclosure without a trial.

But Judge Powers went further than that, saying that GMAC had been admonished in a Florida court for using robo-signers four years ago but had persisted. “It is well past the time for such practices to end,” he wrote, adding that GMAC had acted “in bad faith” by submitting Mr. Stephan’s material:

“Filing such a document without significant regard for its accuracy, which the court in ordinary circumstances may never be able to investigate or otherwise verify, is a serious and troubling matter.”

It was not a complete loss for GMAC — Judge Powers declined to find the lender in contempt — but nearly so. GMAC was ordered, as a penalty, to pay Mr. Cox personally what he would have been paid for his work on the deposition and related matters had he been charging Mrs. Bradbury. That, he says, is $27,000.

The court’s ruling on GMAC’s “bad faith” is already being taken up by foreclosure defense lawyers around the country. Mr. Cox “did a remarkable job of proving the lenders not only rubber-stamped these loans on the front end, but they rubber-stamped them on the back end,” said Mr. Saunders of the legal aid group.

GMAC, which this week expanded its foreclosure freeze to the entire country, is not giving up on Mrs. Bradbury. It will try for the third time to evict her when the case goes to trial this winter.

If Mrs. Bradbury is not quite victorious, she is still in her house, and for her that is the only thing that counts. If she can get her pickup fixed, she will go back to looking for a job.

“I am not leaving,” she said this week, standing out on her front lawn, the autumn splendor spread all around her. “We have nowhere to go.”

Original article: http://www.nytimes.com/2010/10/15/business/15maine.html?_r=1&emc=eta1

Tuesday, October 12, 2010

Wednesday, September 22, 2010

7 Reasons to BUY NOW


Check out Keller Williams Realty's newest e-book "7 Reasons Why Now is a Great Time to Buy a Home!" This guide provides excellent examples as to why now is the best time to buy a house. (Also available on the Buyers page of www.DonCallahan.com) Mortgage rates have never been lower, home prices are excellent, and the inventory is full. If you are ready to buy now, contact us today at don@doncallahan.com.

Monday, July 12, 2010