"...impossible not to think about the possibilities."

“It’s not about timing the market. It’s about time in the market,” says Steve Berkowitz, chief executive officer at Move, Inc., a leader in online real estate. “Once you know how long you expect to own a home, look at the historical value performance of properties in the neighborhood. Be confident about your own job security, down payment resources and tolerance for upkeep, as well as the lifestyle you want today and in the near term. While homeownership may not be for everyone, it is the right choice for hundreds of thousands of people. Today’s housing market, especially for first-time buyers, makes it almost impossible not to think about the possibilities.”

This is very well put. There is so much misinformation and apprehension about the nationwide real estate market that potential buyers and sellers don't stop to consider (a) their local market and (b) their very neighborhood.

Don't be discouraged by real estate trends.  Yes, these are rough times, but yes you CAN avoid discouragement without putting those rose-colored glasses, that got so many into trouble in the hey-day, back on.

• Weigh the pros and cons of investing in a property. Is it right for you?
• Do your due diligence or ask a real estate pro (hey, we know some of those in Spokane!) to help you do it.
• Consider mortgage rates, seller motivation, inventory, and historic appreciation.

*Full article and more good advice here.

American Express Report: Consumers think it's a good time to buy

Excerpt from the report:


"To sell their home in the current market, 44 percent of homeowners note that they would be interested in including appliances, while 28 percent would consider offering to make requested repairs or allowing an allotment for repairs."


Click here for the full article or to access the report.

National Real Estate Market Update!

We love answering the question, "Hey guys, how's the market?"

The housing market continues its gradual recovery without the aid of the tax credit. Sales are slower but growing. Although it will likely be uneven at times, slow growth is believed to be the trend moving forward. This is as true in Spokane, Washington as anywhere.

Home Sales: The Good News

Home sales continued to rebound in September, increasing 10% compared to the previous month. This builds on August’s gain of 7.6% that followed a large drop caused by the expiration of the federal tax credit in July. Sales are expected to gradually grow as the market moves toward recovery without government stimulus. The recent foreclosure moratorium has opened up opportunities for short sales.

Although it could make the near-term “choppy at times,” industry experts expect the overall trend to continue growing slowly.

Home Price: It's All About Your Perspective

After four months of prices remaining on par with year-ago levels, September showed a slight decline. Last September distressed properties were 29% of all home sales; this September that number rose to 35%. *The larger proportion of distressed sales, which are typically discounted, helps to explain the decline.*

Housing Inventory: Important but Oft-Overlooked Indicator

There are fewer homes on the market again in September, representing 10.7 months of inventory. While still at a relatively high level, months of inventory shrank by nearly a month in September from August’s 11.6 and nearly two months since the 12.5-month supply in July. This continues to represent an excellent opportunity for buyers and investors who have not yet taken advantage of the abundant opportunities of the market including record low rates, an ample but shrinking selection of homes, and highly affordable prices.

Affordability

Housing remains at near-record affordability levels, and prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. Housing is approximately 60% more affordable now than during the height of the market.

Look for more updates about Boise real estate trends. Educate yourself and you'll be ahead of the game!


[Many thanks to Keller Williams and the National Association of Realtors for this information]

Pay off Your Mortgage in Half the Time?

You could!

According to this Wall Street Journal article,"a growing number of homeowners are choosing to pay down their mortgages at a faster rate--even if it means a substantial jump in their monthly payments."

It represents a "shift" in borrower thinking from even just a few years ago.

The articles lists some lifestyle recommendations for those who might consider the increased payments.

"Mr. Walters [chief economist at online lender Quicken Loans] says you shouldn't take on a 15-year fixed-rate mortgage unless you have substantial savings, including at least a year's worth of living expenses in liquid accounts.

Also, he recommends having a debt-to-income ratio below 35%. So if you have a gross salary of $5,700 per month, for instance, your monthly debt--including any mortgage payments, taxes, insurance, homeowners-association dues as well as auto and student loans and credit-card debt--would have to be a max of $1,995 to get a 35% ratio.

Link here.

Highlights of the National Real Esate Market

Existing home sales strengthened in March to 5.35 million, up 6.5 percent from February and 16 percent from last March. This is the ninth consecutive month of year-over-year increases. According to NAR's chief economist, the “home-buyer tax credit has been a resounding success,” increasing demand and stabilizing the market. In March, a whopping 44 percent of sales were from first-time buyers.

What is Inventory Like?

The "bad" news is, total housing inventory rose slightly to 3.58 million in March, representing an eight month supply of sales (if homes continue to sell at the current pace consistently and no new homes come on the market). However, compared to the previous year, there are now 1.8% fewer homes on the market. This is the twentieth consistent month of inventory decline when compared to the previous year--one of several indicators that the market will likely “bottom out” in the next few months, according to NAR.

Affordability

Affordability remains near record levels, supported by the lowest mortgage rates in decades, low home prices, and the first-time home buyer tax credit. The home price-to-income ratio continues to remain well below the historical average of 25 percent. The ratio now stands at 14.7 percent.

Sources: National Association of Realtors, Freddie Mac

This could be a minor but important indicator of the housing market. Buyers and homeowners are starting to remodel again. Even where there is less demand, that decrease is, er, decreasing.

The article in RIS Media cites data from the most recent American Institute of Architects’ Home Design Trends Survey.

You might enjoy reading the lists the five most popular bathroom and kitchen remodels, too.

In fact, here are the five most popular kitchen products and features:

-Recycling center, a designated place to put cans, papers, etc., which could be in the form of a nook or even part of the lower cabinetry
-Larger pantry space
-Renewable flooring materials
-Renewable countertop materials
-Computer area/recharging stations, dedicated to such tasks as recharging laptops, cell phones and PDAs.

And speaking of tax credits...

Here is an EXCELLENT rundown of fact versus fiction on tax credits for energy-effecient improvements to your home, courtesy of the National Association of Home Builders (link here).

You can even download a handy-dandy little fact sheet.

Wondering what your remodeling project is worth? We can help you find the answer.

Three Things You Can Do With the Extended Home Buyer Tax Credit

1. Talk to your parents about selling their house. If (you or) your folks, like many of ours, have owned their home for years and years, they are in a unique situation to sell, actually make a profit and still find another house at a great price.

2. Stop sweating over that short sale. Are you one of the thousands of buyers taking advantage of the tax credit and trying to get your short sale closed? You aren't alone! Now you don't have to worry about getting it closed before December 1.

3. Buy. These tax credits are sweet, but they won't last forever. It's hard to imagine a better time to buy. When you're at the bottom, there's nowhere to go but up.

Spokane Short Sales Are Hard Work, But They Don't Have to "Suck"

We've been doing some reading online about "why short sales suck."

In one example, a real estate agent writes that he represented two well-qualified buyers on a moderately priced short sale. The listing agent (who represents the seller) in the transaction obtained approval from the bank within ten days...then called and said a "better" offer was on the table, effectively backing out of the contract thanks to language found in addendum RE 44 (which is not, as a matter of fact, required by Idaho law).

This is bad news all around--it has little to do with the transaction being a short sale.

Here's how we would have handled things as the listing agent: Once the bank accepted the first offer, we would never have let our clients get into a bidding war. It might be said that it is the listing agent's job to get the most money for the house. However, listing agents represent the seller, not the bank. In a short sale, if a listing agent has been successful in getting the bank to accept something, they should not introduce potential time delays.

Whiles the rules and regs are constantly changing, at the present time, if multiple offers are received before they are presented to the bank, then it only makes sense to write up the highest offer. But once the ball is rolling, only backup offers should be considered.

The writer/agent advised his clients not to move ahead, and he concludes with two parting thoughts:

"You’re much better off to find a clean, sharp home offered by a motivated seller who has enough equity to negotiate a fair deal with you.

[snip]

If you want/need to buy a home and get moved in, short sales are a total waste of time and energy for all concerned."

There are two issues here. Firstly, short sales are a fact of the present real estate environment. With Idaho one of the leaders in foreclosures nationwide, short sales are a way for home owners to potentially avoid this nasty experience (and "ding" on their credit report).

Secondly, it's about being a trustworthy, well-trained agent who is going to work towards a win-win situation every time.

In a perfect world there are no short sales and no bad agents. Since it's not, we work with what we've got...and we do it with excellence.

We'll write more on how we've been trained to handle short sales by a career loss mitigator and why that training means we are closing short sales every month.

"Saving Energy on the Cheap"

From the Wall Street Journal Real Estate Section

The author writes that her "electricity consumption this year has dropped 687 kwh from the same period a year ago; in the past two months alone, I saved about $86."

Also contains the definition of "Low-e" windows!

Searching Spokane Washington Real Estate Just Got A Lot Simpler

If only "picking" out a home were this easy.

Well, it just got easier.

With our new, state-of-the art "Key Word Search," you enter search parameters using key words, helping you hunt down amenities and property types you're looking for and weed out what you're not! Combined with # of bedrooms, bathrooms, location (or whatever), this brand new feature provides you with an incredibly efficient property search tool!

Some common keywords:

Investment
Short Sale
RV Parking
Single Level
Energy Star
Lease Option

Try it today! Use the advanced search to combine key words with search parameters like price and location (click here) or a quick search to search homes and properties by key word only.

Pet Showers? Really?

RIS Media just published an article highlighting real estate trends a la People Magazine's Best and Worst Dressed.

And it's almost as funny.

The "What's Out" section is largely accurate, but there's something humorous about the "What's In" section. Outdated thinking in regards to home-selling applies anywhere in the U.S., but where do pet showers and home elevators fit in? Not in Spokane, I don't think.

Other "ins" include destination bathrooms and floating bathrooms.

Read the article here and see what you think.

Cost versus Value: Using Your Remodeling Dollars wisely

What can you recoup from a remodeling project?

Money magazine has an article about what not to expect a return on, like a swimming pool.

But what WILL buyers pay for? An extra bathroom is high on the list. So is adding siding to your home.

We have the full report (we expect to see it updated for 2006 in December). Click here to request a summary of the report.