EXISTING HOME SALES BY REGION

Sales are up everywhere but whether prices are up depends on where the home is located.

To see how this applies to your unique situation, please call, text or email.

The Importance of Your New Home Walk-through

Advice from the National Association of Home Builders

Before You Move In: The New Home Walk-Through

Before you go to settlement on your purchase of a newly constructed home, you and your builder will do a walk-through to conduct a final inspection.
This walk-through provides an opportunity to spot items that may need to be corrected or adjusted, to learn about the way your new home works and to ask questions about anything you don't understand.
Often, a builder will use the walk-through to educate buyers about:

• The operation of the home's components.
• The buyer's responsibilities for maintenance and upkeep.
• Warranty coverage and procedures.
• The larger community in which the home is located.

Operation of Home Components
When you buy a new appliance or piece of equipment, such as a printer or a washing machine, you usually have to read the instructions before you understand how to use all of the features. With a new house, you will receive a stack of instruction booklets all at once. It helps if someone takes the time to show you how to operate all of the kitchen appliances, heating and cooling systems, water heater and other features. Such an orientation is particularly useful because people often are so busy during a move that they have trouble finding time to carefully read instruction booklets.
Maintenance Responsibilities
Part of your walk-through will be learning about maintenance and upkeep responsibilities. Most new homes come with a one-year warranty on workmanship and materials. However, such warranties do not cover problems that develop because of failure to perform required maintenance. Many builders provide a booklet explaining common upkeep responsibilities of new home owners and how to perform them.
Should a warranted problem arise after you move in, the builder is likely to have a set of warranty service procedures to follow. Except in emergencies, requests for service should be in writing. This helps to ensure that everyone clearly understands the service to be performed.
Builder Visits During the Year
Many builders schedule two visits during the first year — one near the beginning and the other near the end — to make necessary adjustments and to perform work of a non-emergency nature. Don't expect a builder to rush out immediately for a problem such as a nail pop in your drywall. Such problems occur because of the natural settling of the house and are best addressed in one visit near the end of the first year.

Your Inspection Checklist

Create a checklist when inspecting the house. The list should include everything that needs attention, and you and your builder should agree to a timetable for repairs. Builders prefer to remedy problems before you move in because it is easier to work in an empty house. Some items may have to be corrected after move-in. For instance, if your walk-through is in the winter, your builder may have to delay landscaping adjustments until spring.  

It is important that you be thorough and observant during the walk-through. Examine all surfaces of counters, fixtures, floors and walls for possible damage carefully. Sometimes disputes arise because a buyer may discover a gouge in a counter top after move-in, and there is no way to prove whether it was caused by the builder's workers or the buyer's movers. Many builders ask their buyers to sign a form at the walk-through stating that all surfaces have been inspected and that there is no damage other than what has been noted on the walk-through checklist.

Ask a lot of questions during the walk-through and take notes on the answers. Don't worry about asking too many questions. That is how you learn. It is important to view the walk-through as a positive learning experience that will enhance the enjoyment of your new home.

As one who has built hundreds of homes, I know how critical the walk-through can be.

If you would like to discuss how this relates to your unique situation call, text or email.

FREDDIE MAC OPTIMISTIC ABOUT HOUSING. ARE YOU?

Housing Market: Freddie Mac Remains Optimistic

April 20 2015

The April 2015 U.S. Economic & Housing Market Outlook from Freddie Mac revealed that they are optimistic about the real estate market in 2015. As a matter of fact, the sub-title of the report was “Great Expectations”.

What made Freddie Mac so optimistic? Here are a few highlights from the report:

“For the remainder of the year we should see a resumption of solid economic growth and acceleration in housing activity. Notwithstanding a disappointing March jobs report the acceleration is already underway.”

“With spring upon us, housing markets are poised to accelerate and we expect the best year for home sales since 2007. Despite harsh winter weather to start the year, home sales through February are only off from the 2013 pace by 7,000 sales... Pending home sales were up 3.1 percent in February to the highest level since June 2013. This marked the fourth consecutive month for rising pending home sales showing positive momentum in general for the housing market.”

Their projections…

“By the end of the spring home buying season in June, we should be well above the pace of home sales for any year since 2007.”

“We are as optimistic about trends in housing markets moving forward as we have ever been since the depths of the Great Recession.”

Regarding prices…

“Due to strong growth, we are expecting house prices to increase 4.0 percent in 2015.”

But there were some warnings…

On available supply:

“With low mortgage rates, improving labor markets, and rising demand, one key issue for housing over the next two years will be the lack of supply of for-sale and for-rent homes.”

“Many metro areas that have seen robust job growth and population increases are facing shortages of available for-sale inventory.”

On interest rates:

“However, by the end of the year long-term interest rates should only increase modestly, ending the year at about 4.3 percent for the 30-year fixed rate mortgage.”

Note: Freddie Mac worded this as being not that crucial. However, a 4.3% mortgage rate is about a .75 increase over current rates.

Bottom Line

Things are looking good for the real estate market. If you are thinking of selling, contact me to discuss how this applies to your neighborhood.

HISTORIC MORTGAGE RATES

No I don't have a crystal ball.  But today's mortgage rates are lower than they have been in any of the last 4 decades.
Whether you are a first time buyer or looking to move-up the interest rate you can get today is truly an historic opportunity.

When you want to see how this applies to your unique situation, just call, text or email.

FINANCIAL SENS OF OWNING A HOME

Does Homeownership Make Sense Financially?

April 16 2015

Everyone knows the social advantages of home ownership. However, some question the financial benefits of owning a home. Three recent studies shed some light on the issue.

RealtyTrac recently released a report comparing home price appreciation to wage growth over the last two years. The study revealed that home price appreciation has outpaced wage growth in 76% of U.S. housing markets during that time period. By how much? Here is a graph showing their findings:

And we all know the importance of home appreciation in determining the net wealth of most American families. Merrill Lynch just issued a report covering the issue. Their findings are shown here:

It obviously makes financial sense to be a homeowner.

But, does it make sense to buy now?

The survey company Pulsenomics just issued their findings on the cost of owning versus the cost of renting. They compared historical averages to the cost you can expect to pay today.

The cost of buying is far below historical averages. Renting is another story.

To see how this applies to your unique situation, just call text or email me.

Selling Your House in 2015? Don’t Miss this Opportunity

April 15 2015

Every seller wants to get the best price for their house. We learned in high school that the best price for any item will be determined by the demand for that item relative to the supply of that item.

We have reported that the inventory of houses for sale is well below normal numbers.

There is historical evidence that the demand for housing is about to increase dramatically. Each year, more homes sell in May, June, July and August than any other four months of the year. Here is a graph of homes sales last year by month:

Bottom Line

You want to make sure your house is available for sale during peak selling season. If you are thinking of selling this year, contact me today.

Just call, text or email to see how this apples to your unique situation.

TODAY'S RENTERS DON'T WANT TO BUY? REALLY?

Evidently not all renters feel that way

If you are one of these renters wanting to buy OR if you have a home to sell to them, call, text or email me to see how this applies to your unique situation.