Dream Home Wish List

There are millions of homes for sale across the country. How do you know which is the right one for you?

The key to getting just the right fit is to develop a wish list. From the lifestyle you want to live to the style of home that best fits your needs, a wish list is a great way for you and your real estate agent to be clear on your objectives.

1. Fixer-upper vs. Move-in ready: Many buyers look at homeownership as a way to make their mark on a property. They are confident in their renovating skills, or are eager to hone them. Part of the appeal may also be that many fixer-upper homes cost considerably less than comparables which are move-in ready. Be sure to sit down and consider what you want homeownership to mean for you.

2. Location: Are you needing to be near public transportation, rail lines, and subways? Keep in mind that in larger metro areas, close proximity to transit can send prices sky high. You'll also want to think about entertainment, restaurants, and night life. Is it important to be near the hustle and bustle, or away from it?

3. Schools: It's no secret. The quality of various public and private schools range widely. Be sure to research school districts before starting your home search.

4. Architectural Style: Some people are drawn to the clean lines and light and bright spaces of a modern design, while others enjoy the cozy charm of a Victorian home. Leaf through magazines, do searches online, and read up in architectural books to decide on what style of home best fits your aesthetic.

5. Upgrades: Are you geared towards granite? Do you marvel at marble? There are certain upgrades that buyers covet. Make a list of what upgrades you would most like to see in your dream home. This can include professional-grade appliances, luxury tiles, or energy efficient upgrades.

6. Interior Styling: If you have allergies, then you may abhor carpet. And while replacing flooring isn't a budget breaker for some, it can be for others. Interior stylings can be changed, but time and money are always a factor. By having in mind the type of interior you most desire, you can cut out homes that will be too much work.

7. Great Yard Expectations: For some buyers, the perfect yard is one that requires zero maintenance (hello, condo owners). For others, however, the ideal yard is large, private, and landscaped. Be sure to contemplate on what best fits your lifestyle.

8. Old vs. New: Old homes can carry a lot of charm, but they can also require hefty maintenance. New homes are not maintenance free, but they may come with certain warranties from the builder to protect you for a few years down the road.

9. To Garage or Not Garage: Do you want a detached or attached garage? Detached garages are perfect for homeowners who work on noisy or smelly projects. This way the house maintains a distance. Other buyers prefer to have a warm walk from the kitchen to their car each morning. What works best for your lifestyle?

10. Detached or Attached: Single-family detached, condo, or income property? There are many choices when it comes to homes. Condo owners love the ease and convenience of living in a community with extra amenities. Single-family dwellers love the privacy and space their homes provide. And income property owners love having a renter that helps pay part of their mortgage.

It's important to remember that chances are you won't get all of the items on your wish list, but having a solid list written out will help guide you in the right direction during the search for your dream home.


Written by Carla Hill
February 22, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Homeownership's Amazing Benefits

Homeownership brings with it a host of amazing benefits. It's the American Dream for good reason. From health to wealth, it stands out as a great long-term investment, and that's why 67 percent of American households are owner-occupied.

The National Association of Realtors (NAR) knows a little something about how homeownership affects American lives. And that's why they are getting the word out about why you should be a homeowner. According to NAR:

• Homeowners are happier and healthier and enjoy a greater feeling of control over their lives.

• Homeowners pay 80% to 90% of federal income taxes, contributing to federal programs that benefit all Americans.

• Most homeowners enjoy stable housing costs—a fixed rate mortgage payment might not change for 15 or 30 years while rent typically increases 3% a year.

• Children of homeowners … are more likely to participate in organized activities and spend less time in front of the television.

• People who own their own homes … volunteer more and contribute more to their neighborhoods.

• Home owners do not move as frequently as renters, providing more neighborhood stability. In turn, this stability helps reduce crime and supports neighborhood upkeep.

• Children of home owners do better in school, stay in school longer.

Many economists have been touting a jobs recovery as the key to the housing recovery, but perhaps it is the other way around.

Recent data indicates that housing makes up more than 15 percent of our Gross Domestic, and for every home purchased, up to $60,000 is pushed into the economy over time in improvements and furniture.

Additionally, each home sale touches 80 different occupations!

According to the NAR, "America needs jobs. Housing creates jobs. That's one of the many reasons home ownership matters to people, to communities, to America. Strong federal government support of home ownership equals strong support for American jobs. We urge the Obama Administration and the U.S. Congress—as they debate the new federal budget and reform proposals for the nation's mortgage finance system—to continue federal support for home ownership."


Written by Carla Hill
February 17, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Explaining Credit Scores

Have you ever wondered what makes up your credit score? The three major credit reporting agencies, Experian, TransUnion, and Equifax, use a number of factors to calculate your score.

Credit scores range from 300 to 850 and are a buyer's key to attaining loans. From cars and homes to everything in-between, if you need a loan, you need good credit. The way it works is simple. A high score is a door to lower interest rates and larger sums of credit. The higher your score, the less of a risk your pose to a lender, and therefore the more likely they'll be to approve you for a loan.

The score is compiled by analyzing the following:

1. Length of Credit History: The longer you've had credit the better. The agencies will be looking at the time that's passed since accounts were opened, the time since account activity, and then the time passed since accounts were opened based on what type of accounts (myfico.com).

2. Payment history: Do you make your payments on time? Have you missed payments or filed for bankruptcy? If you've defaulted on an obligation, your credit score will drop. On the other hand, if you pay faithfully each month, your credit score will rise to reflect it!

3. Percent of Credit Used: Think of it this way. You have two lines of credit open with credit limits of $5,000 each. That means you are able to use a total of $10,000. If you have a $2,000 balance on one card and $3,000 on the other, you are using 50 percent of your available credit. The smaller percentage you are using the better. Fifty-percent is very high.

Many people ask if they should close an unused card. If you are paying monthly or yearly usage fees to the credit card company for a dormant card -- then the answer is probably yes. But keep in mind, if you close one of those $5,000 credit limit cards, your new credit limit is just $5,000. If you now are using $3,000 of your $5,000 limit, you are using 60 percent of your available credit. This is bad news for your score.

And on top of this, how much do you owe total? If you are carrying a large amount of debt, banks and lenders may see you as at risk for default. This means no new loan for you.

4. New Credit: Have you recently opened several new accounts? This is a red flag of risk to lenders. They'll wonder if you're on a spending spree and about what other lines of credit you'll be opening alongside theirs.

5. Types of credit: According to some experts, it is good to have more than one type of credit open. This means to have some credit cards, a mortgage, and installment loans.

6. Settlements: Did you default on a loan? Have you filed for bankruptcy or foreclosure? Did you reach a settlement with a credit card company? These factors will lower your score dramatically, as they show you are a risky borrower.

7. Errors: From identity theft to clerical errors in reporting, mistakes on your report can cost you. You are allowed to view your report three times a year atmyannualcreditreport.com. Check it often to ensure accuracy.

Will a low score haunt you forever? Have no fear, your credit score changes over time. It will rise if you are a responsible spender and make your payments on time. Your credit score truthfully reflects your credit history. So, the power to change it is in your hands.


Written by Carla Hill
February 16, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Ways to Increase Your Home's Value

It is no secret. 2010 was a hard year for home values. According to Zillow.com, homes were expected to lose $1.7 trillion in value. This is an even greater loss than what was seen in 2009.

They report that "the bulk of the total value lost during 2010 was in the second half of the year. From January to June, the housing market lost $680 billion. From June to December, Zillow projects residential home value losses will top $1 trillion."

Some of the largest losses in value were seen in the West. Los Angeles' values fell by $38,000 over the course of 2010. And they are down a whopping $676,000 from the peak in the second quarter of 2006. Phoenix, Arizona, saw values falls by $36,000 in 2010. This is down $222,000 from peak times.

There were exceptions to this loss trend. The Boston metropolitan statistical area (MSA) gained $10.8 billion in value, while the San Diego MSA gained $10.2 billion.

Now, while you cannot protect yourself against market corrections such as these, you can take small steps to help increase your home's value and make it more marketable. The following tips are meant to inspire and motivate you to treat your home like the investment it was meant to be.

1. Make Repairs: Homes require regular maintenance and repairs are a necessary component of homeownership. Procrastination gets you nowhere when it comes to home value. Stay on top of repairs as they are needed. And be sure to address large projects before placing your home on the market. For example, roofs are expensive to replace or repair. Many buyers will pass up your otherwise wonderful home when faced with roof issues.

2. Curb Appeal: Curb appeal is about first impressions. It is also about neighborhood values. Drive down a street lined with manicured lawns and well-maintained homes and the values are sure to reflect the care their owners take. On the other hand, streets with overgrown trees, junky yards, and chipped and faded paint are fighting an uphill battle in the values game.

3. Community Involvement: The classic quote from Chinese philosopher Lao-tzu says, "A journey of 1,00 miles begins with a single step." This is especially true for improving the health and wealth of a community. Change starts with yourself. By becoming an active member of your community, you can inspire the change you desire. Family, friends, and neighbors will follow your lead of civic duty. How can you get involved? Run for city council, join the PTA, volunteer, and help organize fund raisers and events that inspire community togetherness.

4. Updated Kitchen: Kitchens are a real selling point. Outdated cabinets, counters, and appliances will stick out like a sore thumb to buyers. Be sure, however, that you research your comparables before beginning a remodel. You don't want to price yourself out of the running. This means if while you love granite and travertine, other homes in your area are selling with laminate, you will probably not be able to ask for a drastically higher price that covers the price of the granite.

5. Updated Bath: Bathrooms also hold much of a home's value. New low-flush toilets cost as little as $100. And tubs and showers can be easily replaced or resurfaced. Be sure, above all else, that your bathrooms are clean for showings.

6. Energy Savers: Buyers are looking for homes that are energy efficient. Low-flush toilets, solar panels, water filtrations systems, and insulated windows are all inexpensive fixes for energy zappers.

Consider these simple tips and decide for yourself what may help your home retain its value.


Written by Carla Hill
February 9, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Explaining Credit Scores

Have you ever wondered what makes up your credit score? The three major credit reporting agencies, Experian, TransUnion, and Equifax, use a number of factors to calculate your score.

Credit scores range from 300 to 850 and are a buyer's key to attaining loans. From cars and homes to everything in-between, if you need a loan, you need good credit. The way it works is simple. A high score is a door to lower interest rates and larger sums of credit. The higher your score, the less of a risk your pose to a lender, and therefore the more likely they'll be to approve you for a loan.

The score is compiled by analyzing the following:

1. Length of Credit History: The longer you've had credit the better. The agencies will be looking at the time that's passed since accounts were opened, the time since account activity, and then the time passed since accounts were opened based on what type of accounts (myfico.com).

2. Payment history: Do you make your payments on time? Have you missed payments or filed for bankruptcy? If you've defaulted on an obligation, your credit score will drop. On the other hand, if you pay faithfully each month, your credit score will rise to reflect it!

3. Percent of Credit Used: Think of it this way. You have two lines of credit open with credit limits of $5,000 each. That means you are able to use a total of $10,000. If you have a $2,000 balance on one card and $3,000 on the other, you are using 50 percent of your available credit. The smaller percentage you are using the better. Fifty-percent is very high.

Many people ask if they should close an unused card. If you are paying monthly or yearly usage fees to the credit card company for a dormant card -- then the answer is probably yes. But keep in mind, if you close one of those $5,000 credit limit cards, your new credit limit is just $5,000. If you now are using $3,000 of your $5,000 limit, you are using 60 percent of your available credit. This is bad news for your score.

And on top of this, how much do you owe total? If you are carrying a large amount of debt, banks and lenders may see you as at risk for default. This means no new loan for you.

4. New Credit: Have you recently opened several new accounts? This is a red flag of risk to lenders. They'll wonder if you're on a spending spree and about what other lines of credit you'll be opening alongside theirs.

5. Types of credit: According to some experts, it is good to have more than one type of credit open. This means to have some credit cards, a mortgage, and installment loans.

6. Settlements: Did you default on a loan? Have you filed for bankruptcy or foreclosure? Did you reach a settlement with a credit card company? These factors will lower your score dramatically, as they show you are a risky borrower.

7. Errors: From identity theft to clerical errors in reporting, mistakes on your report can cost you. You are allowed to view your report three times a year atmyannualcreditreport.com. Check it often to ensure accuracy.

Will a low score haunt you forever? Have no fear, your credit score changes over time. It will rise if you are a responsible spender and make your payments on time. Your credit score truthfully reflects your credit history. So, the power to change it is in your hands.


Written by Carla Hill
February 16, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Why Hire a Real Estate Agent or REALTOR?

As spring rolls in, many people start listing their home for sale. The weather warms up and buyers, having recovered from the holidays, begin to house hunt.

Many buyers will go it alone. They hit the Internet for their first line of attack in house hunting. They peruse magazines and open houses. But they miss an important key player in their house-hunting mission–the real estate agent.

The real estate agent is not a go-between paper shuffler. Your real estate agent is the connection to the inside world of real estate. Yes, the Internet can provide you with lots of information, but it can't replace a knowledgeable real estate agent.

Finding the best agent who meets your needs is like finding a good friend. I'm not kidding. Having to work with an agent that doesn't understand your needs for housing can result in endless headaches, but working with an expert in the industry takes away the worry and stress, and streamlines the process.

It can be a jungle out there. Navigating through the foreclosures, short sales, and excessive inventory can make some buyers feel overwhelmed. The result? They continue to rent!

If you have the right team of experts surrounding you and looking out for your best interest, you're not afraid to aim high and go after exactly what you want. An agent isn't your cheerleader but is there to help you get precisely what you want and the best deal possible.

The agent has a fiduciary duty to you–to provide trust and confidence. Up to now, we've talked mostly about an agent–a person licensed to sell real estate but is that the same as a REALTOR®? The answer is no. And since the terms are often confused, it's worth taking a moment to explain how the National Association of REALTORS® (NAR) defines them.

Both are licensed to sell real estate but REALTORS® are members of the National Association of REALTORS® and are required to follow the REALTOR® Code of Ethics. According to NAR, there are 17 articles in the Code of Ethics and they are strictly enforced.

Here's what is stated in the 2011, Code of Ethics and Standards of Practice from NAR, "The term Realtor® has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal."

Whether you hire a real estate agent or a REALTOR®, the most important thing you can do is research their background, reputation in the market, and get references. This is likely the biggest financial move you'll make, so taking the time to find information about the agent or REALTOR® you're about to hire is a wise investment.

Visiting real estate offices and meeting with their staff is another good way to explore who will fit with your personality and match your needs. Contacting friends for referrals is a good start, but don't just hire your friend's agent or REALTOR® because the real estate transaction worked out for your friend. Spend a little time to effectively communicate your needs, goals, and desires, and then listen carefully to how the agent or REALTOR® responds.

It may not be a marriage but it's certainly a relationship that could last a lifetime, creating a successful financial situation for all.


Written by Phoebe Chongchua
February 11, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Ready to Move Up?

Today's market has created an environment where it is a great time to be a buyer. Interest rates are still at historical lows, the job market is improving, and affordability is near generational highs.

Those with growing families and steady jobs may be asking themselves if now is the time to "move up". To answer this question, consider these points:

1. Finances: Is your job steady and secure? Moving up can mean taking on the responsibility of a bigger monthly mortgage payment, along with higher property taxes. And any buying process will involve fees and costs that add up quickly. If you have steady income and at least eight months of emergency fund saved up, then now could be a great time to move on up.

2. Equity: Some buyers use the equity they have built in their current house to help fund their "move up." Now is a good time to research the local housing market. Trends are incredibly localized when it comes to housing. Some neighborhoods may have experienced dramatic declines in home values, while others have maintained a healthy level. Find out how much equity you have built in your house by examining the comparables in your area, as well as your latest appraisal.

3. Housing Trends: Now that you have researched the local housing trends, you must ask yourself whether or not you feel comfortable making a move in your particular economic climate. Are you confident that values will hold in your region? Do you feel that there is a healthy balance of buyers and sellers, should you need to move and sell? Your local real estate agent can answer many questions pertaining to local market trends.

3. Family Considerations: Moving up may mean moving away from friends, family, and school districts. Be sure to take this into consideration before jumping into a life changing situation. Move ups, however, can also be a blessing for growing families. Space can become limited as children or aging parents are included into the daily structure.

4. Energy: A bigger house means more energy consumption. This translates into a bigger carbon footprint, as well as a heftier monthly bill. If you are moving up, consider looking for homes that meet green standards. Energy star rated appliances, adequate insulation, and even new insulated windows can make a huge difference.

Remember, homeownership is a long-term investment. In today's troubled market it is best to keep in mind that home values may not be at their bottom. But if you meet the financial qualifications outlined above, then a long-term investment, and a "move up" sound like a good fit! Now, have fun picking out your dream home!


Written by Carla Hill
February 8, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Ready to Move Up?

Today's market has created an environment where it is a great time to be a buyer. Interest rates are still at historical lows, the job market is improving, and affordability is near generational highs.

Those with growing families and steady jobs may be asking themselves if now is the time to "move up". To answer this question, consider these points:

1. Finances: Is your job steady and secure? Moving up can mean taking on the responsibility of a bigger monthly mortgage payment, along with higher property taxes. And any buying process will involve fees and costs that add up quickly. If you have steady income and at least eight months of emergency fund saved up, then now could be a great time to move on up.

2. Equity: Some buyers use the equity they have built in their current house to help fund their "move up." Now is a good time to research the local housing market. Trends are incredibly localized when it comes to housing. Some neighborhoods may have experienced dramatic declines in home values, while others have maintained a healthy level. Find out how much equity you have built in your house by examining the comparables in your area, as well as your latest appraisal.

3. Housing Trends: Now that you have researched the local housing trends, you must ask yourself whether or not you feel comfortable making a move in your particular economic climate. Are you confident that values will hold in your region? Do you feel that there is a healthy balance of buyers and sellers, should you need to move and sell? Your local real estate agent can answer many questions pertaining to local market trends.

3. Family Considerations: Moving up may mean moving away from friends, family, and school districts. Be sure to take this into consideration before jumping into a life changing situation. Move ups, however, can also be a blessing for growing families. Space can become limited as children or aging parents are included into the daily structure.

4. Energy: A bigger house means more energy consumption. This translates into a bigger carbon footprint, as well as a heftier monthly bill. If you are moving up, consider looking for homes that meet green standards. Energy star rated appliances, adequate insulation, and even new insulated windows can make a huge difference.

Remember, homeownership is a long-term investment. In today's troubled market it is best to keep in mind that home values may not be at their bottom. But if you meet the financial qualifications outlined above, then a long-term investment, and a "move up" sound like a good fit! Now, have fun picking out your dream home!

Written by Carla Hill
February 8, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Should I Buy A Home Now?

The Zillow Home Value Index fell 26% since its peak in June 2006. That’s a greater decline than seen in the Depression-era years of 1928 to 1933.

According to Zillow.com, "November marked the 53rd consecutive month of home value declines, with the Zillow Home Value Index (ZHVI) falling 0.8% from October to November, and falling 5.1% year-over-year.”

But the news isn’t all bad. If you’ve gathered around the office water cooler to catch up with colleagues, maybe you’ve noticed a bit of optimism blossoming. it’s not just a feeling, it’s real. According to Zillow Research, the economy is improving. The improvement is expected to gradually increase "household formation and consumer confidence”. But the housing market may still face greater declines due to "excess inventory of homes, high negative equity and foreclosure rates, and weakened demand due to elevated unemployment,” reported Zillow.com.

However, if you’ve been watching, waiting, and wondering, when to buy ... . Now’s the time to take note. While no one has a crystal ball to predict what will happen with the housing market, some experts are reporting that an uptrend will occur later this year. They’re basing their beliefs on the job market (some predictions indicate it will improve half-way through this year), and "Homebuilder exchange traded funds are above their 200-day moving averages,” according to ETFTrends.com

If all these things have you confused, a simple way to look at real estate is to understand your specific needs, wants, and long-term goals. Do you need a place to live? Are you planning to stay in your home for at least a couple of years? (Most buyers live in their home on average seven years). Does owning your home matter? Have you saved money for a downpayment?

Answering these questions will help point you in the right direction. Assuming that buying a home is the best scenario for you, how can you rest easy that you’re getting the best price? Ah, the $64-million question. You can’t.

Timing the market is like trying to win the lottery. There is no absolute way to know when it’s the bottom of the real estate market. That’s why you must know your specific needs, wants, and long-term goals.

If your needs include a home to live in for a lengthy period of time, then homeownership will likely rank higher on your priority list. If building credit, potential of appreciation–yes, there is still appreciation–especially when you buy a sensibly priced home in a good location. However, the appreciation may be slower and not shoot up into the double digits that we saw in some areas.

Consider this, with high inventory, sellers are motivated. You can scoop up a home at a perfect price and you can minimize your potential for low appreciation. If you choose a home that is in the lower-tier of prices (and still within your target price), your home will be less vulnerable in down markets and better situated in up markets because the higher-priced homes help elevate your home’s value.

Homeownership has many benefits including tax deductions, the opportunity to make your own creative changes to your home, and the potential for income if you later rent it out.


Written by Phoebe Chongchua
February 4, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Good Looking Hood

One of the advantages of a homeowner association is to keep the hood looking good by enforcing architectural and design standards. These appearance standards are designed to protect the HOA members' property values. The theory is that if all homes follow the same basic theme, the average home buyer will be willing to pay more.

Non-HOA subdivisions have appearance standards too, but only a civil lawsuit can stop someone determined to violate them. Since most neighbors hate confrontation, appearance standards usually go by the wayside opening the door to the things like RVs parked along side the house, tarped "classic" cars and eye wincing paint colors. Thus, the need for appearance standards and the enforcement thereof.

The governing documents usually outline the appearance standards when they are very strict but often say little when they're not. They may define the standards but not the enforcement method. leaving the Board in an awkward position when confronted with multiple appearance "challenges". This is a great topic for the Resolution Process. Resolutions are board policies that deal with complex issues like collection of money, pets, parking and appearance standards. Resolutions provide a framework to deal with them effectively. By the way, resolutions cannot amend or change the meaning of the governing documents, only expand on the authority. Amending the governing documents requires an appropriate vote of the homeowners.

After your Appearance Standards Resolution is drafted, ask your attorney to review it for compliance with statute and your governing documents. Then, allow the other owners to participate in the outcome. Once drafted, it should be circulated to all the owners for a 30 day review and comment period. The approval process shouldn't be rushed. Change is difficult for some.

A good way to broach the subject with the membership is to send out a newsletter discussing the reason why: to preserve property values. Consistent appearance standards are in everyone's best interests. Describe how, for example, junk vehicles, unkempt lawns, collapsing fences and weathered or outlandish paint colors drag property values down for everyone without naming names (Mrs. Lavendar Chartreuse, you know who you are). Encourage attendance to a special meeting to discuss the Appearance Standards Resolution.

After the new Appearance Standard Resolution is cussed, discussed, amended and approved, it's time to start enforcement. Select the closest equivalent you have to Henry Kissinger and a Mafia Hitman. If you have none of these, after appropriate written notifications, make good use of your attorney to turn up the heat. Never be guilty of selective enforcement. Treat everyone the same.

Appearances do count and it's up to the board to watch dog what happens in the community. Don't wake up one day and ask "Where am I and why am I in this handbasket?" Protect your HOA appearances by keeping the hood looking good.

For more innovative homeowner association management strategies, seeRegenesis.net.


Written by Richard Thompson
January 26, 2011

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Buyers Advice: Housing Affordability

You may be asking yourself, "Is now a good time to buy?" It's a very important question. As a buyer, you're concerned with getting the best deal possible. Will you be buying at the top of the market? Or will you purchase when the market is in favor of you, the buyer?

According to the National Association of Home Builders (NAHB) and their Home Builders/Wells Fargo Housing Opportunity Index (HOI), affordability is high for the 5th consecutive quarter.

How is affordability calculated? In general terms, if housing costs don't exceed 30 percent of the monthly household income, then it meets the standards. Anything more than 35 percent is too high.

"Today’s report is very encouraging because it indicates that homeownership continues its more than year-long trend of remaining within reach of more households than it has for almost two decades," said NAHB Chairman Bob Jones, a home builder from Bloomfield Hills, Mich. "With interest rates still hovering at low levels, companies starting to hire new employees and the economy beginning to rebound, this should encourage more home buyers to enter the market and help further stabilize housing and the economy."

The HOI indicates that 72.2 percent of all new and existing homes sold in the first quarter of this year were affordable to families earning the national median income of $63,800.

Some of the best markets for affordability is:

• Syracuse, New York

• Dayton, Ohio

• Grand Rapids-Wyoming, Michigan

• Indianapolis, Indiana

• Youngstown, Ohio, and

• Bay City, Michigan

Of course, affordability, like most aspects of the housing market, is a local issue. The local economy has a direct effect on home prices, market favor (buyers or sellers), and the like.

Take for example, New York-White Plains-Wayne, New York-New Jersey. The NAHB says this region continued to lead the nation in poor affordability. Less than 21 percent of all homes sold in the 1st quarter 2010 were affordable.

Other markets where affordability is low:

• San Francisco, California

• Honolulu, Hawaii

• Santa Ana-Anaheim-Irvine, California, and

• Los Angeles-Long Beach-Redwood City, California

Be sure to talk to your local REALTOR® about where your local market fits into the affordability equation.


Written by Carla L. Davis

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com