Existing Home Sales UP 3%

Existing Home Sales Up 3%
Good news for real estate markets across the country as the National Association of REALTORS (NAR) reported a 3.1 percent increase in the rate of existing home sales through the month of July. NAR’s revised home sales forecast now stands at 5.0 million units for 2008, up from the 4.84 million units estimated in June.
Provisions in the recently passed housing stimulus package have created additional opportunity for buyers. NAR president Richard F. Gaylord explains, “Buyers who’ve been on the sidelines should take a closer look at what’s available to them now in terms of financing and incentives.”
Average (Mean) Sales Price of Existing Homes by Region
Date U.S. Northeast Midwest South West
2006 268,200 299,700 205,300 230,000 371,300
2007 266,000 307,100 200,500 225,600 365,900

03/08 247,100 310,800 183,200 209,600 325,200
04/08 247,200 294,400 188,500 212,900 327,000
05/08 252,600 309,100 190,700 219,000 326,700
06/08 257,900 298,700 201,900 230,500 328,500
07/08 254,000 307,300 202,800 223,900 314,800

Statistics from the National Association of REALTORS®

Overall mortgage interest rates remain at their historic lows, currently hovering in the low-to-mid 6 percent range for a 30 year fixed rate loan. The combination of low interest rates and higher housing inventories makes this one of the best buyer markets in recent history.
First Time Homebuyer Tax Credit Up to $7500!
The recently passed Housing and Economic Recovery Act of 2008 has created a tax credit helping first time homebuyers. The tax credit is applied to a qualified purchase of a primary residence from April 9, 2008 through June 30, 2009. The amount of the credit is 10 percent of the home’s purchase price, and is not to exceed a maximum of $7500. The tax credit is to be paid back within 15 years, effectively making this an interest-free loan from the US government. Be sure to contact us for more details on this helpful program!

Staging your home to get it SOLD!!!

Below is an article about staging your home to sell.  It is more important than ever in a “Buyer’s market” to stage your home. Buyer’s have many homes to choose and only the homes that present them selves in the best light and are priced effectively will sell.

Have you ever walked into a beautifully decorated model home and been captivated by it? Did you find yourself dreaming of bathing in that spa-like bathroom, cooking meals in the gourmet kitchen or curling up with a book in that luxurious reading nook? If so, then you have been the successful target of the secret weapon called staging.

You want the best possible price for your home, but do not want to pay more than your return to achieve this. You need expert and objective home staging guidance that comes from experience and a highly trained eye in order to compete in a buyers market.^TM (ASP^TM).

Staging can entail simple tasks like removing clutter. Clutter eats equity. Stagers aren’t maids or house-cleaners; they don’t do repairs or paint. Rather they create a neutral, harmonious, spacious, and beautiful environment. They often set tables for dinner so that a prospective buyer can envision themselves in the property having a family dinner.

Think of staging like detailing a car. A smart auto seller would detail a car before selling it to add value. That’s precisely what staging can do for a house. As a REALTOR®, I think that staging helps; it makes the property stand out. In turn, good staging can determine which properties sell fast and which do not. It is no longer a market where staging helps the property sell for more. In today’s market, it enables the property to have more potential of selling at all. It’s a buyer’s market, so make your home stand out by creating a sophisticated ambiance.

While some sellers may be hesitant to spend more money on staging in a down market, this is the winning way to get a property sold; and often for a higher asking price.

Professional stagers can see your house as buyers will, and they’ll set the scene so that buyers can imagine living there. They’re likely to simplify or streamline the furniture in a room for better traffic flow and to enhance its spaciousness. They may neutralize a too-personal color scheme or add touches of color or accessories where needed. In vacant homes that feel cold and lack visual landmarks, stagers often bring in rental furniture to create warmth. This helps Buyers mentally move in and feel that when it’s time for them to move in, thy will be able to kick back and relax.

REALTORS® and sellers can hire stagers by the hour or the room. Homeowners typically pay from $200 to $3,000 depending on the level of service required. But the pay-off in time saved and higher sales price can be nice. If all your listings looked like model homes, do you think you’d have an easier time selling them? And do you think they might command a higher selling price? Statistics show this to be true.

Buying a house is largely an emotional decision because people are not just purchasing a home; they are buying a dream … a lifestyle. If you can help them with their vision so they don’t have to rely completely on their imagination, you positively impact how they feel in the home, which will be reflected in the sales price and number of offers you receive. All human beings want comfort, excitement, prestige and love, and all these are at work in the psychology of the home purchase. Effective staging maximizes those feelings, creating an atmosphere that makes people want to linger and imagine themselves living in the space. Ultimately, staging creates a home the prospective buyer will not be able to live without.

People today have busy lives, they want to walk in and look at a home and say, “This is mine. I can move into this home without doing anything.”

Provided by Debra Allen of Realty Times

Call The Nelson Team today for a FREE consultation on staging your home at 503-803-0562

 

 

A Letter From Barbara

Greetings from the Nelson Team! We have had so many changes these past few months!

First, our website has a brand new look you should see. Check it out over at NOPLACELIKEPORTLAND.COM.

Second, we continue to expand into cyberspace with the launch of the new blog your are reading. This new online magazine from the Nelson Team brings to you the very latest in Real Estate News and Information as well as Portland area events. Leave a comment about what you like for a chance to win a $25 Starbucks Card!

Third, I have New eBooks on Home Buying and Home Selling! I normally reserve these eBooks for current clients but to celebrate the launch of our blog, I am Giving Them Away! If you know someone who could use the invaluable knowledge in these two eBooks or if you want to click through them yourself, just give us a call or send us an email for your personal password to download these two eBooks from our online blog!

Last, We Have Moved! In order to better suit our clientele both past and present, we have relocated to the Sunset Corridor Market Center in Tanasbourne. Of Course, no matter where we move to, our home is still NOPLACELIKEPORTLAND.COM and Now WWW.NOPLACELIKEPORTLAND.WORDPRESS.COM. We hope you and your friends will come visit us!

Loan to Value Ratios and Adverse Marketing Fee

Have you heard about the increased adverse market fee coming October 1st from FNMA? Freddie Mac will not be far behind either. Starting in October look for the average cost to obtain conventional financing to increase a .250% discount point. This means on an average loan amount of $300,000, it will cost your buyers $750 more in closing costs OR $24.59 more each month in mortgage payments.

If you take action to purchase a home prior to October 1st you may end up saving money and frustration.

Jumbo Loan Changes

In the past, mortgages of $417,000 or more have been considered “jumbo” loans that were more expensive to finance. Thanks to recent provisions, however, those jumbo loans were able to qualify for better financing rates in some parts of the country. Although those provisions were set to expire, they are being extended–with a minor change to the maximum amount eligible. This is great news that may save you a ton of cash, so call me to find out how this impacts our area, and if it could help you.

First Time Homebuyer Tax Credit

First-time home buyers who purchase their primary residence between April 9, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, as long as they haven’t owned a home in the last three years. The credit is actually a generous interest-free loan, so we’ll have to talk about some income parameters and payback terms. But if you’re a new home buyer – or know someone who is renting or in the market to buy have them Call the Nelson Team at 503-803-0562!

National Market Update

Existing home sales increased 2 percent during the month of May, according to a published report from The National Association of REALTORS® (NAR). This increase has lead NAR to revise its 2008 existing home sales prediction, which now stands at 4.99 million units, up from 4.89 million units published in May.

The national median home price was reported at $208,600 in May. According to NAR President Richard Gaylord, “Home buyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages,” he said. “Today’s buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth.”

Freddie Mac reported the national average 30-year, conventional, fixed-rate mortgage rose to 6.04 percent in May, up from 5.92 percent in April. Despite the recent increase, overall mortgage rates are down from 6.27 percent, available May 2007.

Existing home inventory is reported at 4.49 million units. According to Lawrence Yun, chief NAR economist, “The large supply of homes on the market clearly favors buyers, and it should take several months to draw the inventory down. Stabilization in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales, particularly in distressed markets.”

A number of areas nationally are experiencing increased activity over May 2007, including Sacramento, the San Fernando Valley and Monterey County in California; Sarasota, Florida, and Battle Creek, Michigan.

A letter from Barbara…

Dear Friends,

 

The number one question I get these days is “How’s the Market?”  Well, we are beginning to see some recovery both locally and on a National level.  Our current Market report through the Realtors Multiple Listing Service shows 10.3 months of inventory.  In other words, it would take 10.3 months to sell all the homes actively listed in the Metropolitan Portland area with the current pool of buyers.  This is what we call a “Buyer’s Market”. 

When the market reaches an inventory of 6 months we are considered an “even” market and anything less than six months becomes a “Sellers Market.  Many of you remember the frenzy of 2005.  There were double digit gains in appreciation and multiple offers.  It was the epitome of a Sellers market.  But I like to say “The market is the market” and it really depends which side of the table you sit. 

Now is a good time to buy!  Sellers are motivated, interest rates are still relatively low and there are an abundance of homes on the market.   One thing I know about the market is that it will change and the only way you know if home values have hit bottom is when home values are on their way up…and then you have missed the wave.  If you are considering moving or perhaps thinking this may be the time to acquire an investment, call me for a FREE consultation! 

Sincerely,

Barbara Nelson