Posted on Tue, Jul 13, 2010
Allow Plenty of Time - While it may be tempting to try and visit as many properties as possible on a single day, "overbooking" won't give you enough time to linger and fully tour each individual home. If you find a house you truly like, you will probably spend more time reviewing each room in greater detail. Assume that each house you view will hold your interest enough for a lengthy exploration.
Dress Comfortably - House hunting isn't a job interview, so dress casually and comfortably for the season. Wear slip-on shoes and adequate socks - homes with new carpet or flooring will often include "please remove shoes" signs. You will be doing a lot of walking and taking trips up and down stairs, so supportive footwear is a must. Clothing should fit comfortably enough to accommodate reaching up or bending/crouching down to examine cupboards both high and low.
Carpool - Taking just one car is particularly convenient when viewing multiple properties on the same day. A one vehicle approach ensures that no one gets separated or lost. Also, by moving over to the passenger seat you're free to consider the merits of each last house and pay attention to the neighborhood near each property, rather than focus your energy on squinting at street signs.
Pay Attention to the Surroundings - Speaking of the neighborhood; make sure you pay attention to the area close by each home on the way in. What kind of shopping opportunities and facilities are within a short distance? Are there appealing destinations within walking distance? What are the schools like nearby? How far will your commute be? Are many other homes for sale in the immediate area?
The idea is to have some feeling of whether or not the neighborhood is right for you before you ever set foot in the actual home. If you're lucky enough to fall in love with the house itself, knowing the lay of the land ahead of time can give you the confidence to make an immediate offer.
Use Your Nose - Generally speaking, a bad (or unidentifiable) smell inside or outside the home is not a good sign. Likewise, be somewhat suspicious if the home is overpowered by the smell of potpourri or intense candles in every room, as this can be an attempt by the seller to mask problematic odors. Mildew and mold smells indicate much larger problems - mold removal can cost thousands of dollars, and locating/fixing moisture leaks can be a difficult task. Pet smells or smoke smells can be minimized with cleaning, but will likely take time to fully dissipate. If you are interested in a home with a strong smell, hire a qualified and experienced home inspector who will unmask the cause of the odor.
Posted on Thu, Feb 11, 2010
Just over 40% of available homes for sale had reduced prices in January 2010, compared with 44% in December 2009, according to a monthly survey of home listings in 27 markets.
With fewer reduced price homes available in January, sellers were able to ask for their original list prices, rather than cut them to attract buyers.
"Sellers are taking a realistic look at current market conditions before listing their homes," said Pat Lashinsky. "We have a lot fewer homes for sale right now than we did last year, and we are seeing more sellers sticking to their original list prices, rather than cutting them to try to attract buyers."
Results of the survey include:
- January was the fifth consecutive month of fewer priced reduced homes on the market, with sellers reducing list prices by $21,925 on average across 27 markets
- Homeowners in San Diego reduced prices by the highest dollar amount, cutting an average of $44,901
- Homeowners in Houston reduced prices by the lowest dollar amount, cutting an average of $10,000
- Markets with the lowest percentage of price-reduced MLS-listed homes were Los Angeles and San Diego (both at 32.6%), San Francisco (31.9%), and Denver (29.5%)
- One out of every two home listings in Jacksonville (49.9%) and Phoenix (48.8%) had cut their list prices, the highest percentage in the survey
Source
Posted on Sun, Dec 27, 2009
Reported today from the LA Times:
Home buyers hoping to take advantage of a new or extended tax credit should not procrastinate: This third bite at the apple will be the last.
Proponents of the $8,000 credit for first-time buyers and the $6,500 credit for move-up buyers made it clear during the debate on Capitol Hill that the benefits would not be renewed when they expire. And a lobbyist for the National Assn. of Realtors confirmed that at the group's annual convention last month.
Lawmakers "made us promise practically in blood that we would not come back" for another extension, Linda Goold, the Realtor group's director of tax policy, told her members.
During the debate, Sen. Johnny Isakson (R-Ga.), a former real estate broker and a longtime proponent of the tax credit, promised his colleagues, "This is the last extension."
And Senate Finance Committee Chairman Max Baucus (D-Mont.) said, "It is important that this tax credit does not become a permanent fixture of the tax code."
As it stands now, buyers who meet the income eligibility requirements have until midnight April 30, 2010, to ink a deal and must close by midnight June 30 to qualify.
Congress enacted the original $7,500 first-time buyer credit as part of the Housing and Economic Recovery Act of 2008. But because the credit had to be paid back it was more like a no-interest loan than a true credit and there were relatively few takers.
So in the American Recovery and Reinvestment Act of 2009, lawmakers upped the ante to a maximum of $8,000 for new buyers who closed before Dec. 1. They also said the new credit need not be paid back unless the taxpayer moves out within the three-year period following the purchase.
This second attempt at stimulating sales worked so well that the housing lobby implored Congress to help keep the momentum going. So lawmakers extended the deadline for first-timers and added a "long-term resident" tax credit for repeat buyers who owned their current home for at least five consecutive years out of the last eight.
Incidentally, the credit is not a flat $8,000 for new buyers and $6,500 for repeat buyers. It is 10% of the purchase price up to those ceilings. There is no credit if the price of the house is above $800,000.
Read more at the LA Times article.
Posted on Mon, Nov 23, 2009
Comparison to hurricane-battered market and 2009 homebuyer tax credit are factors |
HOUSTON — (November 19, 2009) — The lingering effects of Hurricane Ike back in October 2008 combined with recent homebuying activity spurred by the federal government’s $8,000 first-time homebuyer tax credit produced positive numbers for the Houston real estate market in October.
For the second month in a row, both property sales volume and pricing recorded gains. According to the latest monthly data compiled by the Houston Association of REALTORS® (HAR), October volume of single-family home sales across the greater Houston area rose 13.8 percent compared to October 2008. Total property sales climbed 14.1 percent in October on a year-over-year basis.
At $149,000, the October single-family home median price—the figure at which half of the homes sold for more and half sold for less—rose 5.0 percent from one year earlier, representing the sixth straight monthly increase in median price. The average price of a single-family home in Houston was $198,639, up 3.2 percent last month versus October 2008. Both figures reached the highest levels ever for a month of October in Houston.
Foreclosure property sales were flat month-over-month in October, making up 18.6 percent of all single-family home sales in the Houston area, but down compared to 25.8 percent in October 2008 and the 12-month peak of 34.0 percent in January of this year. The median price of October foreclosure sales reported in the Multiple Listing Service (MLS) rose 3.8 percent to $88,293 on a year-over-year basis.
Sales of all property types in Houston for August totaled 5,716, up 14.1 percent compared to October 2008. Total dollar volume for properties sold during the month was $1.0 billion versus $942 million one year earlier, representing an increase of 15.9 percent.
“Hurricane Ike had a lasting effect on the greater Houston real estate market last fall, so it’s no surprise to have the kind of year-over-year improvement we’ve now seen for two months in a row,” said Vicki Fullerton, HAR chair and broker of record at RE/MAX of The Woodlands & Spring. “Many Houston REALTORS® have reported that the first-time homebuyer tax credit was extremely effective at drawing consumers to the marketplace, and we believe momentum will build with the federal government’s extended and expanded incentive program.”
October Monthly Market Comparison
The month of October brought Houston’s overall housing market positive results when all listing categories are compared to October of 2008. Total property sales, total dollar volume and both median and average single-family home sales prices were all up on a year-over-year basis.
The number of available properties, or active listings, at the end of October fell 7.3 percent from October 2008 to 45,424. That housing inventory represents 96 fewer active listings than one month earlier, in September 2009.
October’s month-end pending sales—those listings expected to close within the next 30 days—totaled 3,673, which was 2.6 percent higher than last year. An increase typically signals that the next month’s sales will improve further, however because this data compares to a period in which Hurricane Ike interrupted many local real estate transactions, that signal is unclear. The months inventory of single-family homes for October came in at 6.1 months, down from 6.3 months one year earlier, and remains healthier than the national months inventory of single-family homes of 7.8 months, reported by the National Association of REALTORS® (NAR).
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| CATEGORIES | OCTOBER 2008 | OCTOBER 2009 | PERCENT CHANGE | | Total property sales | 5,010 | 5,716 | 14.1% | | Total dollar volume | $942,371,320 | $1,092,415,904 | 15.9% | | Total active listings | 49,016 | 45,424 | -7.3% | | Total pending sales | 3,579 | 3,673 | 2.6% | | Average single-family sales price | $192,453 | $198,639 | 3.2% | | Median single-family sales price | $141,950 | $149,000 | 5.0% | | Months inventory* | 6.3 | 6.1 | -2.8% |
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| * Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market. |
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Single-Family Homes Update
At $149,000, the median sales price for single-family homes rose for the sixth consecutive month, up 5.0 percent from October 2008. That represents the highest median price ever recorded in a month of October in Houston. The national single-family median price reported by NAR is $174,900, illustrating the continued higher value and lower cost of living that consumers enjoy in the Houston market. The average price of single-family homes in October was $198,639, an increase of 3.2 percent from one year earlier. That represents the highest average price ever recorded in an October in Houston.
October sales of single-family homes in Houston totaled 4,834, up 13.8 percent from October 2008. This is the second consecutive monthly increase in sales volume.
HAR also reports existing home statistics for the single-family home segment of the real estate market. In October 2009, existing single-family home sales totaled 4,049, a 15.6 percent increase from October 2008. At $140,000, the median sales price for existing homes in the Houston area rose 7.7 percent compared to last year. The average sales price of $185,117 climbed 7.0 percent from its October 2008 level.
Townhouse/Condo Update
The number of townhouses and condominiums sold in October rose compared to one year earlier. In the greater Houston area, 514 units were sold last month versus 418 properties in October 2008, translating to a 23.0 percent boost in year-over-year sales.
The median price of a townhouse/condominium rose 1.1 percent year-over-year to $126,340. The average price edged up 0.6 percent to $159,853 from October 2008 to October 2009.
Lease Property Update
Demand for single-family home rentals fell 12.4 percent in October compared to a year earlier. Year-over-year townhouse/condominium rentals declined by 5.6 percent.
Houston Real Estate Milestones in October Single-family homes sales increased for a second consecutive month, by 13.8 percent; Existing single-family home sales increased for a second consecutive month, by 15.6 percent; Total property sales increased for a second consecutive month, by 14.1 percent; The median price of a single-family home was up for the sixth straight month, reaching the highest level ever recorded in an October ($149,000); The average price of a single-family home reached the highest level ever recorded in an October ($198,639); Month’s inventory of single-family homes dropped from 6.3 to 6.1 months compared to the national average of 7.8 months. Founded in 1918, the Houston Association of Realtors® (HAR) is a 24,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest local association/board of Realtors® in the United States as well as the largest individual membership trade association in Houston. Source |