Real Estate Outlook: New Home Sales Rise 3.3 Percent

New home sales rose during the month of April. This 3.3 percent rise reported by HUD and the U.S. Census Bureau is consistent with predictions of sustained growth through the rest of the year.

On a regional basis, new-home sales rose 7.7 percent in the Northeast, 28.2 percent in the Midwest and 27.5 percent in the West in April. The South was the only region to post a decline for the month, of 10.6 percent.

"The increase in April sales activity is in line with other important housing measures that have shown continued, gradual improvement from the first quarter as more consumers look to take advantage of today's low interest rates and affordable home prices," noted National Association of Home Builders (NAHB) Chairman Barry Rutenberg, a home builder from Gainesville, Fla. "In markets where demand is rising, we could be seeing a faster pace of recovery if not for persistently tight lending conditions that are slowing both the building and buying of new homes."

Inventory for new homes is now at a 5.1-month supply -- slim by historic standards.

A rise in sales is always good news in this post-recession economy. The National Association of Home Builders (NAHB) is committed to showing current and future homeowners the opportunities which homeownership brings. That is why the month of June is National Homeownership Month.

"Anyone thinking of buying a home shouldn't wait any longer," added NAHB Chairman Barry Rutenber. "Housing markets around the country are improving, home prices have stabilized, there is a great selection of available homes for sale, and interest rates are at near historic low levels."

You can read more information about homeownership, threats to the American Dream, current housing proposals, and mortgage information atProtectHomeownership.com -- run by the NAHB.

"Homeownership remains a core value to American families," said Rutenberg. "Even more important than the financial advantages of homeownership, is that first and foremost, a home is where your family can relax, spend quality time together and build lifelong memories."

A recent NAHB study (January 2012) found that despite a still struggling economy, the dream of homeownership is alive. The study found that 96 percent of homeowners are happy they own. That is a big statement considering the number of underwater owners. Nearly seven out of 10 American adults who are not currently home owners said it was a goal of theirs to buy a home.

Will we continue to see improving sales and housing growth? Lawrence Yun, National Association of Realtors chief economist, said new jobs are the key. "Ongoing job creation, which is at a higher level this year, is fueling an underlying demand for commercial real estate space, assisted by a steady increase in consumer spending," he said. "The pattern shows gradually declining commercial vacancy rates, with consequential but generally modest rent growth."


Written by Carla Hill
June 18, 2012

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Before You Sell

Deciding to put your home on the market can bring on a wide range of emotions. You may feel excitement at the prospect of moving on or moving up. Some sellers feel anticipation about what the future holds and about what kind of deals buyers may bring to the table.

On the opposite end of the spectrum you may be feeling sadness or even regret. That's because selling your house can feel a lot life selling your home. Any and all of these emotional responses are normal! In order to stick to your guns and to keep on the sunnier side of the selling process it's important to do five key things before you sell. Feeling prepared and in control of a situation is paramount in feeling good about your decision.

Here are the five pre-selling tips:

Organize Paperwork: You most likely have papers regarding any home warranties. Prospective buyers are going to want to have these. Having them ready for viewing is a great selling point. You might also consider putting together a list of current contacts for pool maintenance, lawn care, and even repair work companies.

Get an Inspection: Even almost new homes can have hidden damage. Most every buyer in today's market will be getting an inspection. Beat them to the punch and have your own inspection performed so that you are not surprised come negotiation time.

Perform Repairs/Get Estimates: Having your own inspection gives you the time to identify problem areas and either repair them or get estimates to have ready for prospective buyers. They'll love how organized and up-front you are!

Get Organized: Start packing as soon as you decide to list your home. Removing or packing away some of your personal belonging has two great benefits. First, it allows your home some breathing room to be staged and cleaned for showings (see #5). Buyers want to be able to see the house, not your stuff. Second, it starts the process of moving on. As you pack up your stuff you'll find that the house will feel less and less familiar, which can be great for letting go of attachment.

Stage: This means it's time to amp up your curb appeal for starters. Trim trees and shrubs and pick up any debris from your yard. Keep you lawn in showing ready state all year around. You should also consider staging outdoor areas with freshly potted flowers, comfy chairs, and even outdoor accessories, such as lanterns, throws, and dinnerware.

You may wonder what these very practical tasks have to do with emotions, but the truth is they are so inextricably linked! Our experiences dictate our emotions. So, take the time to prepare for the selling process. Dot all your i's and cross all your t's and then sit back and enjoy your journey into a new stage of life!


Written by Carla Hill
June 14, 2012

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An 'Outside the Box' Buyer

Are you in the market to buy, but are limited by certain financial restrictions? You're not alone. The recent recession of 2009 has left a mark on the bank accounts and labor markets of today.

Today's market is considered a "buyers market". What does this mean? It means that certain factors (inventory levels, home prices, days on markets, and supply versus demand) give buyers more leverage at the negotiating tables.

In today's buyers market there are lots of sellers who will be willing to go a more non-traditional route with a sale. They are ready to move on and are eager to find a buyer.

Sometimes it takes thinking outside the box to get the results we want. It's a great time to buy. Affordability is at a generational high and interest rates remain remarkably low, but if you have limited savings or a less than stellar credit report you might find yourself unable to enter the ranks of homeowner.

In cases such as these it's a good idea to explore your options. It's time to think outside the box.

First, be sure to talk to your close family to see if anyone would be willing to help out. This could come in the form of a downpayment gift, a friendly loan for closing costs, or even a more financially stable relative offering to be your "lender." Family loans almost always come with exceptionally low or non-existent interest rates.

These people know you best. Your credit report might say you're high risk, but they know and trust you'll make this kind of payment on time.

They might even be willing to share in a "shared appreciation" or "shared equity" set up. This means they are part owners of the property. Their name is on the mortgage. When the time comes down the road to sell or tap into that equity, they are there for a payday. It's an investment opportunity.

Next, check out what downpayment assistance programs might be available in your area, state, or even on a national level. Search online and ask your local real estate professional for tips on who to call and where to look. Additionally, be sure to visit www.hud.gov for tips and programs available through the federal government.

Finally, talk to the seller about their thoughts on non-traditional sales. This might come in the form of a lease with the option to buy. You lease the home and pay a specific dollar amount each month. In essence the seller becomes your landlord.

This gives you time to save up money for the downpayment. You could arrange to buy the home then in a year or several years down the road. If the seller is generous they may even put that monthly "rent" payment towards the final amount of the home.

If they aren't interested in this option, see if they would be willing to serve as the lender for your home. You make payments to the seller instead of a bank. This will generally only work if the seller is in a financial position to wait to get their money.

There are options out there no matter your situation. Be sure to research the options and decide which path is right for you.


Written by Carla Hill
June 13, 2012, Published by Realty Times

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Future of the forest: Lake Tahoe plan could set Sierra precedent, officials say

LAKE TAHOE — A wide-ranging plan to manage more than 150,000 acres of forest surrounding Lake Tahoe could be precedent-setting for the entire Sierra Nevada range, according to a coalition of conservation groups.

The U.S. Forest Service Lake Tahoe Basin Management on Friday released the draft environmental document for an update to its forest plan. The existing plan has not been updated since 1988. Once passed, the proposed plan will guide management of Lake Tahoe forests for 15 years.

“We've developed four alternatives that we believe reflect what we've heard to date about how we can best manage National Forest System lands in the Lake Tahoe Basin,” Nancy Gibson, forest supervisor for the Lake Tahoe Basin Management Unit, said in a Friday statement. “Now we're encouraging the public to take a look at these alternatives and tell us what measures they prefer and why.”

Each alternative differs in how it addresses watershed health, forest health, hazardous fuels, wildlife habitat, recreation and access to national forest land. The alternatives will be available for review and comment until Aug. 30.

In a separate statement from a coalition of eight environmental groups, Sarah Matsumoto, senior representative with the Sierra Club, said the plan is an opportunity to take a 21st Century approach to forest management.

“Many eyes will be watching the Lake Tahoe Basin forest plan process, as it will be the first out of the gate for forest planning throughout the Sierra region,” Matsumoto said. “It is also positioned to set precedent for a series of upcoming forest plans in the Sierra, stretching from Sequoia National Forest in the south all the way to the Oregon border.”

Restoring forest ecology, protecting watersheds, safeguarding old growth forests and conserving wildlife habitat are all priorities for the groups in their examination of the plan.

Meaningfully addressing the impacts of climate change, like including protected corridors for animals to move to higher elevations, also needs to be addressed in the plan, according to the statement.

A “key component” conservationists hope to see in the plan is a recommendation to protect the Upper Truckee River and its tributaries in the Meiss Meadows area as a Wild and Scenic River, according to the statement.

Some Alpine County residents near the river have expressed concern that the designation could limit activities on their properties.

The final environmental document for the forest plan is expected to be complete in late 2012.

More information on the forest plan is available by calling Matt Dickinson at 530-543-2683 or Denise Downie at 530-543-2769. Documents relating to the plan are also posted at tinyurl.com/tahoeforestplan.

By Adam Jensen
Tahoe Daily Tribune

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Record-Setting Low Fixed Mortgage Rates Persist

Freddie Mac released the results of its Primary Mortgage Market Survey®, showing average fixed mortgage rates falling to new all-time record lows for the sixth consecutive week amid weak economic and job data helping to keep homebuyer affordability high.

30-year fixed-rate mortgage (FRM) averaged 3.67 percent with an average 0.7 point for the week ending June 7, 2012, down from last week when it averaged 3.75 percent. Last year at this time, the 30-year FRM averaged 4.49 percent.

15-year FRM this week averaged 2.94 percent with an average 0.7 point, down from last week when it averaged 2.97 percent. A year ago at this time, the 15-year FRM averaged 3.68 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.84 percent this week, with an average 0.7 point, the same as last week. A year ago, the 5-year ARM averaged 3.28 percent.

1-year Treasury-indexed ARM averaged 2.79 percent this week with an average 0.4 point, up from last week when it averaged 2.75 percent. At this time last year, the 1-year ARM averaged 2.95 percent.

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

"Fixed mortgage rates reached new record lows for the sixth consecutive week as long-term Treasury bond yields declined further following downwardly revised economic growth and job creation data. Gross domestic product rose 1.9 percent in the first quarter, after originally being reported as 2.2 percent, led by gains in inventories, more government cutbacks and the slowest increase in corporate profits in over three years. In addition, the economy added 69,000 jobs in May, less than half of the market consensus forecast and revisions subtracted a total of 49,000 workers in March and April. Lastly, the unemployment rate ticked up from 8.1 percent in April to 8.2 percent."


June 8, 2012, Published by Realty Times

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The Scoop on Closing Costs

Are you a buyer preparing to close on a house? Now is a good time to refresh yourself on the most common closing costs.

There are more expenses to buying a house than just the monthly mortgage payment. More than likely you'll need to come up with some cold, hard cash in order to finalize the deal.

Here's some common closing costs to consider:

Down Payment: Due to today's economic climate most buyers will need to put down at least 20 percent. This makes good financial sense. If you can't afford to put 20 percent down then you probably can't afford to buy this particular house.

Loan Origination: This is what the lender charges you to underwrite the loan, meaning what they charge for their time and all the paperwork they need to do.

Points: You'll often see that different lenders have different "rates" and different "points" they charge. Buy paying points you can receive a lower interest rate, but this means more cash at closing.

Credit Score: You can access your credit report for free at annualcreditreport.com, however, in order to see your credit "score" -- the magic number that lenders use to determine your interest rate -- you'll need to pay a small fee.

Home Inspection: You want to be sure, no matter if the house is new or old, that you get a home inspection by a qualified inspector. You may love the house and the price, but if you find out that a big ticket item needs replaced you will be able to renegotiate the price or decide to change your tune on buying the home. A typical inspection will run you from around $300 to $500.

Private Mortgage Insurance (PMI): This is what a lender charges if you are putting less than 20 percent down on the cost of the home. It usually runs about .5 to 1 percent of the total cost of the loan and is simply a safeguard to protect the lender should you default.

Other Small Fees: Insurance escrow, property tax escrow, notary feeds, land surveys, deed recording, etc. Be sure to ask your real estate agent which will apply to your contract and what the expected costs will be.

Congratulations on the decision to buy. Owning a home can be a wonderfully fulfilling experience. Just be sure you're ready for the closing costs coming your way!


Written by Carla Hill
June 5, 2012

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Rates Hit All-Time Record Lows, Again

In Freddie Mac's results of its Primary Mortgage Market Survey®, fixed mortgage rates followed bond yields lower to new all-time record lows. The 30-year fixed averaged 3.75 percent setting a new all-time record low for the fifth consecutive week. The 15-year fixed averaged an unprecedented 2.97 percent bringing three of the four benchmark mortgage rates below 3 percent for the first time in Freddie Mac’s weekly survey.

30-year fixed-rate mortgage (FRM) averaged 3.75 percent with an average 0.8 point for the week ending May 31, 2012, down from last week when it averaged 3.78 percent. Last year at this time, the 30-year FRM averaged 4.55 percent.

15-year FRM this week averaged 2.97 percent with an average 0.7 point, down changed from last week when it averaged 3.04 percent. A year ago at this time, the 15-year FRM averaged 3.74 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.84 percent this week, with an average 0.6 point, up from last week when it averaged 2.83. A year ago, the 5-year ARM averaged 3.41 percent.

1-year Treasury-indexed ARM averaged 2.75 percent this week with an average 0.4 point, unchanged from last week. At this time last year, the 1-year ARM averaged 3.13 percent.

According to Frank Nothaft, vice president and chief economist, Freddie Mac:

"Market concerns over tensions in the Eurozone led to a decline in long-term Treasury bond yields helping to bring fixed mortgage rates to new record lows this week. Compared to a year ago, rates on 30-year fixed mortgage rates are almost 0.9 percentage points lower which translates into nearly $1,200 less in annual payments on a $200,000 loan. Meanwhile, the S&P/Case-Shiller 20-city composite home price index (not seasonally adjusted) showed annual home-value gains in March in seven cities and a monthly gain in 12 cities."


June 1, 2012, Published by Realty Times

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