Sellers Settle Into 'Waiting Game':

Sellers are starting to get the message that the market is no longer tilting in their favor.

The number of Americans who say now is a good time to sell plunged 17 percentage points from the previous qu...arter, according to Redfin's latest Real-Time Seller Survey, which polls 295 current and potential sellers in 30 of the country's large real estate markets.

Some would-be sellers say they're holding out for higher prices before selling; 59 percent of respondents say they want to wait for the maximum price on their home.

"Sellers hoping for higher prices will face reality soon, as all signs point to lower price growth and less competition among buyers in coming months," says Redfin Chief Economist Nela Richardson. "Buyer demand is there, but only at the right price."

Some potential sellers — 36 percent — are waiting to list their homes because of low inventories, believing that the small pool of homes for sale reflects a sluggish market, Richardson says.

"The lack of homes for sale creates a vortex of short supply that can only be relieved when potential sellers find homes they want to buy and then list their own homes," according to Redfin's research. Several markets are reporting that inventory levels are starting to climb over last year's numbers, but supplies remain tight in many areas.

For the sellers who are willing to list, they're coming to terms with the fact that they may not be able to price their home as aggressively as they thought. The double-digit home-price gains of last year have mostly vanished across the country.

"While some sellers are disappointed that they can no longer expect double-digit price gains, increasing inventory and stabilizing prices provide relief for everyone — buyers and sellers — that we are moving toward a much more balanced market," says Shawn Flynn, a Redfin real estate professional in Boston. Source: “Seller Confidence Wanes in October,” Redfin Research Center (Oct. 27, 2014)

Call Rick Funk Century 21 Alpha 408)629-6099 or write me at: C21Funk@aol.com Or search right here on my Facebook page for your 1st or next home. For a FREE home value review with no hassle to sell, just ask.
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September Marked 2014 High in Home Sales:

Existing-home sales bounced back in September, surging to the highest annual pace of the year, according to the latest report from the National Association of REALTORS®. All regions except for the... Midwest reported gains in sales last month.

“Low interest rates and price gains holding steady led to September’s healthy increase, even with investor activity remaining on par with last month’s marked decline,” says Lawrence Yun, NAR’s chief economist. “Traditional buyers are entering a less competitive market with fewer investors searching for available homes, but may also face a slight decline of choices due to the fact that inventory generally falls heading into winter.”

Existing-home sales rose 2.4 percent in September, reaching an annual rate of 5.17 million. Sales are at the highest pace of 2014 but remain 1.7 percent below the 5.26 million level from last September, NAR reports.

Snapshot of Housing Indicators for September
• Home prices: The median existing-home price was $209,700 in September, 5.6 percent higher than a year ago. It is the 31st consecutive month for year-over-year price gains.
• Days on market: Homes stayed on the market longer in September — 56 days, compared with 53 days in August. Short sales remained on the market for a median 116 days in September, while foreclosures sold in 59 days. About 35 percent of homes sold in September were on the market for less than a month, according to NAR.
• Inventory: Total housing inventory dropped 1.3 percent to 2.30 million existing-homes for-sale, representing a 5.3-month supply at the current sales pace. Unsold inventory is 6 percent higher than a year ago.
• All-cash sales: Sales involving all cash made up 24 percent of transactions in September, down from 33 percent compared to a year prior.
• Distressed homes: Foreclosures and short sales rose slightly in September to 10 percent, from 8 percent in August. Distressed sales, however, are down from 14 percent a year ago. Foreclosures and short sales in September sold for an average discount of 14 percent below market value.

By the Region

Here’s an overview of how existing-home sales performed across the country in September:
• Northeast: Existing-home sales rose 1.5 percent to an annual rate of 680,000, but were 1.4 percent below sales levels from a year ago. Median price: $249,800 (up 4.8 percent from a year ago)
• Midwest: Existing-home sales fell 5.6 percent to an annual rate of 1.17 million, and remain 4.9 percent below September 2013 levels. Median price: $165,100 (up 4.9 percent from a year ago)
• South: Existing-home sales rose 5 percent to an annual rate of 2.12 million, and are 1.4 percent higher than September 2013. Median price: $180,900 (up 5.1 percent from a year ago)
• West: Existing-home sales surged 7.1 percent to an annual rate of 1.20 million, remaining 4 percent below levels from a year ago. Median price: $294,200 (up 4 percent from a year ago)
Source: National Association of REALTORS®

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Home Equity Rebound Slows its Pace:

 More home owners are eeking out equity again on their properties, but with slowing home appreciation, millions of home owners may still be at risk of foreclosure.

Equity-rich properties – those with at... least 50 percent equity – grew to 10.8 million, or 20 percent of all properties with a mortgage, in the third quarter, according to RealtyTrac’s third quarter U.S. Home Equity & Underwater Report. That percentage is up from 19 percent of properties in the second quarter of 2014.

Another 8.5 million properties – or 16 percent of all homes with a mortgage -- are teetering on the edge of equity, with between 10 percent of negative equity and 10 percent of positive equity.

But many home owners have yet to regain equity. There are 8.1 million U.S. residential properties seriously underwater – in which the combined loan amount secured by the property is at least 25 percent higher than the property’s estimated market vale, according to RealtyTrac. The number of properties with negative equity has fallen to the lowest level since RealtyTrac began tracking such data in 2012. The peak was in the second quarter of 2012 when 12.8 million properties – or 29 percent of all properties with a mortgage – were seriously underwater.

“The decrease in underwater properties is promising but the estimated $1.4 trillion in negative equity means that the flood waters are not receding as quickly as they were before, corresponding to slowing home appreciation,” says Daren Blomquist, vice president at RealtyTrac. “Slower price appreciation means 8 million home owners seriously underwater could still have a long road back to positive equity.”

To paint a picture of the typical underwater home owner, RealtyTrac found it’s often a home owner who bought or refinanced during the housing bubble years (from 2004 to 2008), owns a home worth less than $200,000, and who lives in the Sun Belt or Rust Belt.

On the other hand, the highest percentage of equity rich home owners were those who bought or refinanced between 1994 and 1998; have properties valued at $500,000 or more; and tend to live in New York, California, and Washington, D.C.

The States With the Highest Levels of Negative Equity

The following states had the highest percentage of residential properties seriously underwater in the third quarter, according to RealtyTrac:
• Nevada: 31%
• Florida: 28%
• Illinois: 26%
• Michigan: 25%
• Rhode Island: 22%

The metro area (with population of 500,000 or more) with the highest percentage of properties seriously underwater was Las Vegas at 34 percent.

The Equity-Rich Markets

The following metros had the highest percentage of equity-rich properties – those with at least 50 percent equity or more – during the third quarter:
• San Jose, Calif.: 45%
• San Francisco: 41%
• Honolulu: 36%
• Los Angeles: 32%
• New York, N.Y.: 31%
Source: RealtyTrac

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Landscaping Boosts Home Values Up to 12%:

You might want to take a closer look at your listing's curb appeal: Upgrading a home's landscape from average to excellent can raise its overall value by 10 percent to 12 percent, according to res...earch from Virginia Tech.

Researcher Alex X. Niemiera with the Department of Horticulture at Virginia Tech found that a $150,000 home with no landscaping could fetch an additional $8,300 to $19,000 by adding a landscape with color and large plants.

The value of landscaping differed greatly from state to state. For example, the change in value from a home with no landscape to well-landscaped ranged from 5.5 percent in Louisiana to 11.4 percent in South Carolina. Michigan homes saw the biggest difference in landscaping appeal, with a home's value being increased by 12.7 percent.

"The most preferred landscape included a sophisticated design with large deciduous, evergreen, and annual color plants and colored hardscape," according to Niemiera. Adding different plant sizes to a front yard, for example, can boost curb appeal, as well as mixing fruit trees and flowers for added color.

The following landscape elements were found to be most important to survey respondents:
• Design sophistication
• Plant size
• Diversity of plant material type

"Survey results showed that relatively large landscape expenditures significantly increase perceived home value and will result in a higher selling price than homes with a minimal landscape," Niemiera writes in the paper. "Design sophistication and plant size were the landscape factors that most affected value. The resulting increase in 'curb appeal' of the property may also help differentiate a home in a subdivision where house styles are similar and thereby attract potential buyers into a home. This advantage is especially important in a competitive housing market." Source: “Does Landscaping Increase Your Homes Value?” Realty Times (Oct. 13, 2014)

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Mortgage Rates Dip Below 4%

Threshold: Borrowing costs sank to the lowest amounts in more than a year as the 30-year-fixed rate mortgage averaged 3.97 percent this week, Freddie Mac reports in its weekly mortgage market survey. The 30-yea...r fixed-rate mortgage is at its lowest average since the week of June 20, 2013, when it averaged 3.93 percent.

"Mortgage rates were down sharply following the decline in the 10-year Treasury yield for the second straight week,” says Frank Nothaft, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 16:
• 30-year fixed-rate mortgages: averaged 3.97 percent, with an average 0.5 point, posting a big drop from last week’s 4.12 percent. A year ago, 30-year rates averaged 4.28 percent.
• 15-year fixed-rate mortgages: averaged 3.18 percent, with an average 0.5 point, dropping from last week’s 3.30 percent average. Last year at this time, 15-year rates averaged 3.33 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.92 percent, with an average 0.5 point, dropping from last week’s 3.05 percent average. A year ago, 5-year ARMs averaged 3.07 percent.
• 1-year ARMs: averaged 2.38 percent, with an average 0.4 point, also down from last week’s 2.42 percent average. Last year at this time, 1-year ARMs averaged 2.63 percent.
Source: Freddie Mac

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Despite Price Gains, Affordability Still In Play:

Despite the jump in the latest median single-family home price — $220,600, up from around $160,000 just a few years ago, according to the National Association of REALTORS® — the large pric...e gains are not denting affordability.

Even with home prices climbing, home ownership remains affordable because low mortgage rates have helped to offset the price gains, writes Lawrence Yun, NAR’s chief economist, at NAR’s Economists’ Outlook blog. Also, incomes have risen slightly as the unemployment rate has fallen, which also has helped to improve the affordability picture.

A home buyer buying a median-priced home at the current mortgage rate and having a 20 percent down payment would make a monthly payment of about $867. That is 15.9 percent of monthly gross family income, compared to an average of 21.3 percent over the past 30 years, Yun notes. Source: “Affordability in Monthly Mortgage Payments,” National Association of REALTORS® Economists’ Outlook blog (Oct. 14, 2014

For a FREE no hassel meeting to discuss your 1st steps in finding that affordable home, call or write me today! I'm here for you

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Foreclosures Back to Pre-Crisis Levels:

A new sign that the foreclosure crisis may largely be in the rearview mirror, new filings in the third quarter of this year were down 16 percent from a year ago — bringing overall foreclosure activity down to its level before the housing crisis, according to RealtyTrac's Foreclosure Market Report. What's more, default notices, scheduled auctions, and bank repossessions in September dropped 9 percent from the previous month and were down 19 percent from a year ago. That's the lowest level since July 2006.
"September foreclosure activity was back to pre-housing-bubble levels nationwide, in large part thanks to a continued slide in bank repossessions," says Daren Blomquist, vice president at RealtyTrac. "However, a recent rise in scheduled foreclosure auctions in many markets across the country shows lenders are continuing to clean house of lingering delinquent loans. This rise in scheduled auctions foreshadows a corresponding rise in bank repossessions and auction sales to third-party buyers in the coming months."
While foreclosure filings fell last month, they were up slightly by 0.42 percent in the third quarter from the previous quarter. It's a small percentage, but it does mark the first quarterly increase since the third quarter of 2011, according to RealtyTrac. The uptick was largely attributed to a 2 percent increase in default notices and a 7 percent quarterly increase in scheduled foreclosure auctions.
That proves the foreclosure crisis isn't over in every market quite yet. Default notices in the third quarter rose from a year ago in 10 states, including Indiana (up 59%); Oklahoma (49%); Massachusetts (38%); New Jersey (19%); Iowa (12%); and New York (2%).
Lenders are taking longer to process foreclosures, too. The foreclosure process took an average of 615 days in the third quarter, up 13 percent from a year ago. That's the longest average time to complete a foreclosure since RealtyTrac began tracking such data in 2007. The states with the longest foreclosure wait times are New Jersey (1,064 days); Florida (951 days); Hawaii (937 days); New York (902 days); and Illinois (889 days).
The five states with the highest foreclosure rates in the third quarter were:
• Florida
• Maryland
• New Jersey
• Nevada
• Illinois
Source: RealtyTrac
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Former Chairman of the Federal Reserve Can't Refinance His Mortgage:

 Ben Bernanke, the former chairman of the Federal Reserve, got $250,000 just for giving a 40-minute speech in March 2014. He inked a reportedly seven-figure book deal ear...lier this year. He leads a think tank now, but in his previous position, he was responsible for setting the interest rate policy for the entire country.

With all that, you'd think that Ben Bernanke would have no problems when it comes to his mortgage. But Bernanke, speaking at a conference in Chicago on Oct. 2, recently admitted that he "recently tried to refinance [his] mortgage," but was "unsuccessful in doing so."

"I'm not making that up," Bernanke said, when his audience laughed at what they considered to be a clever joke.

Bernanke's current home cost $839,000 and is assessed at $815,000. He should have no problem refinancing his mortgage (he's already refinanced twice) — especially if he can line up just a few more 40-minute speaking engagements. But Bernanke, who went from holding the position of chairman of the Federal Reserve to being a fellow at the Brookings Institution, could be considered a a higher credit risk because of his recent job switch.

Bernanke said it's "entirely possible" that lenders have established too-tight mortgage credit conditions.Source: Bloomberg News (Oct. 3, 2014)

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Are You a Distracted Driver?

 

 For many real estate practitioners, doing business from their cars is a necessity. Here are some tips for doing it more safely.
If you use your vehicle as a moving office, listen up. Driver inattention, especi...ally due to cell phone use, is the leading factor in most crashes and near-crashes, according to a new report by the National Highway Traffic Safety Administration and the Virginia Tech MC Trấn Thànhsportation Institute.

In a year-long study of 241 drivers in 100 sensor-equipped vehicles in the Washington, D.C. area, the drivers were involved in 82 crashes and 761 near-crashes.

Cell phones and other hand-held communication devices were linked to the highest frequency of crashes and near crashes, according to researchers. Driver inattention was a factor in 80 percent of all crashes and 65 percent of all near crashes.

Drowsy drivers are the second-leading cause of on-the-road mishaps; they were at least four times more likely to crash or narrowly escape an accident than rested motorists, according to the new report. Drowsiness contributed to 20 percent of all crashes and 16 percent of near crashes.

Among the report’s other key findings:
• Reaching for a moving object increased the risk of a crash or near-crash by 9 times; looking at an external object by 3.7 times; reading by 3 times; applying makeup by 3 times; dialing a hand-held device (typically a cell phone) by almost 3 times; and talking or listening on a hand-held device by 1.3 times.
• Drivers who engage frequently in distracting activities are more likely to be involved in an inattention-related crash or near-crash. However, drivers are often unable to predict when it is safe to look away from the road to multitask because the situation can change abruptly leaving the driver no time to react even when looking away from the forward roadway for only a brief time.

Tips for Staying Safe on the Road

More and more communities are outlawing cell phone conversations for drivers, but if you're not breaking the law and you absolutely must continue to drive and talk on the phone, here are some suggestions.
• Get organized. If you’re going to use your car as an office, get organized to limit distraction. Make sure the things you need to use while in the car, including your phone and note-taking materials, are within an easy reach. You shouldn’t be digging through your bag to look for your phone or rummaging through the glove compartment for a pen.
• If you must take that call, inform callers that you are driving. Alert others that your conversation requires more concentration than you can give while operating your car. Either ask for a moment to pull off the road or suggest that you return the call when you can respond safely. Pull off the road to make notes in your planner or message yourself to return the call.
• Don’t use the phone in high-traffic areas or in dangerous conditions. Cell phone users are known by researchers to be 24 percent slower in applying their brakes than drivers not using phones, says a study by Miami University. Some communities are considering ordinances that will outlaw cell phone use by drivers in high traffic areas or on roads with dangerous conditions. Snow, ice, sleet, rain, and other hazardous driving conditions compound dangers on most roads, so get into the habit now of staying off the phone on that blind curve or in wet conditions.
• Acknowledge risks of using hands-free devices. Just because you’ve switched to a hands-free cell phone doesn’t mean you’re safe. Researchers at the University of Rhode Island found that eye movements of drivers who are talking on the phone decrease to a dangerous tunnel vision range. That means they stare straight ahead, losing peripheral vision. Also, most hands-free phones don’t eliminate the need for dialing phone number, which is when drivers who use cell phones are most likely to crash, according to The National Highway Traffic Safety Administration.
• Move to slower lanes. Increase the distance between your car and other vehicles. Since cell phone drivers are 24 percent slower to hit the brakes than non-cell phone users, that translates to at least 10 more feet needed between you and the next car per 10 miles per hour.
• Limit phone use while driving with passengers. In this case, courtesy can be a life-saver. Talking on the telephone puts you in a private conversation with whoever is on the other end, excluding people who may be in your company. If you have passengers, they deserve your attention to the road. If you are waiting for an important call, such as permission to show a home you are on the way to view, be brief and to the point with the caller. Make calls that are associated with your passengers only; save other business and personal calls for later.
• Don't think that cell phone calls are as safe as passenger conversations. Most defenders of phone use while driving point out that talking on the phone is no more dangerous than chatting with a passenger. But new research says this isn't so. Drivers using cell phones don't move their eyes around, losing critical peripheral vision, as mentioned above. This "tunnel vision" goes on for minutes after phone use while the driver "thinks" about the conversation. Finally, passengers can alert drivers to dangerous situations, while cell phone parties are unable to do so.
• Practice with your phone. Make yourself very familiar with features such as speed-dialing. Use voice activation if available. Learn to dial emergency numbers such as 911 without looking at your phone and practice ending calls without looking at your phone.
• Avoid stressful calls. Stress isn't compatible with keeping your attention on the road. If you screen or return your calls while on the road, save the detail-intensive or stressful calls and deal with them later. Don't take notes until you are off the road.

(c) Copyright 2006 Realty Times. Reprinted with permission.

Century 21 Alpha Rick Funk (408)629-6099, but not while driving....
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Who pays the highest property taxes in the USA?

 

 Northeast Owners Pay Highest Property Taxes:

New Jersey once again topped the nation with the priciest median real estate tax bill at $7,331, according to the newly released 2013 American C...ommunity Survey. On the other hand, Alabama has the lowest in the nation at $532.
Depending on where you live can greatly influence how much – or how little – you pay in real estate taxes. The highest property tax states are mostly centered in the Northeast, while the lowest are often in the South, according to the survey.
“When comparing residential tax bills across states it is important to consider government financing,” researchers note at the National Association of Home Builders’ Eye on Housing blog. “Property taxes may represent 40.3 percent of state and local tax receipts, but some states rely less heavily on property taxes as a source of revenue than others.” For example, in New Hampshire the median real estate bill is the third highest in the nation at $5,017, but residents there do not pay an individual income tax at the state level. However, in West Virginia, which has one of the lowest median real estate taxes at $605, residents face the highest marginal rate for individual state income tax at 6.5 percent, according to NAHB.
The following are the states where home owners can expect to pay some of the highest median real estate taxes:
1. New Jersey: $7,331
2. Connecticut: $5,280
3. New Hampshire: $5,017
4. New York: $4,559
5. Massachusetts: $3,955
6. Illinois: $3,939
7. Rhode Island: $3,872
8. Vermont: $3,727
9. Wisconsin: $3,202
10. Maryland: $3,075
11. California =$3,015
On the other hand, home owners will likely find the cheapest median real estate taxes in:
• Alabama: $532
• West Virginia: $605
• Arkansas: $674
Source: “Real Estate Taxes by State – 2013,” National Association of Home Builders

Rick Funk Century 21 Alpha over 34 years of Real Estate excellence!
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Why the West is Key to Every Market:

  For a glimpse of where the overall housing market may be heading, look west, according to report from Clear Capital.

After all, the West boasts some of the largest metro markets in the nation. When it...s housing markets boomed a few years ago, other markets across the country soon followed. When the downturn struck, many Western cities felt the shake up first.

Lately, the West has posted a significant drop in distressed sales, as fewer properties fall into foreclosure. In 2009, slightly more than half of all sales in the West were from distressed properties; that has since fallen to just over 12 percent.

Investors have been branching out, particularly reaching into other markets in the South and Midwest as they sniff out for more bargains.

Clear Capital analysts explain that the West is seeing sharper drops in home price appreciation than some other parts of the country.

“That is why the West is really that leading indicator, the canary in the coal mine, because as the West goes, both on the downturn and in the recovery, we’ve seen the rest of the country go as well,” says Alex Villacorta, vice president of research and analytics at Clear Capital.

But some economists view the easing in appreciation from last year as a healthier overall sign for the housing market.

"Many of those Western markets overshot equilibrium by a lot," says Mark Fleming, a CoreLogic economist. "Now we are moving toward things driving the housing market the way they used to." He says those factors include demand, an improving economy, and more jobs.
Source: “Home Prices Headed for a Triple Dip,” CNBC (Oct. 7, 2014)

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