Faulty Appraisals Harming Housing and the Economy
Twenty-six percent of builders are seeing signed sales contracts fall through the cracks because appraisals on their homes are coming in below the contract sales price, according to a nationwide survey conducted by NAHB.
“Home builders are increasingly concerned that inappropriate appraisal practices are needlessly driving down home values. This, in turn, is slowing new home [...]
First-time Buyers Drive February Sales.
.
Existing-home sales increased in February, reversing losses in January, according to the latest report by the NATIONAL ASSOCIATION OF REALTORS®. However, sales activity remains relatively soft, reflecting additional layoffs and buyers waiting for housing provisions in the economic stimulus package to take effect, according to NAR.
Existing-home sales— including single-family, townhomes, condominiums and co-ops—rose 5.1 percent to a seasonally adjusted annual rate of 4.72 million units in February from a pace of 4.49 million units in January. Existing-home sales are 4.6 percent below the 4.95 million-unit level in February 2008. Seasonal adjustment factors are more volatile in winter months, but sales rates over the past few months show dampened sales activity, according to NAR.
Lawrence Yun, NAR chief economist, says first-time buyers accounted for half of all home sales last month, with activity concentrated in lower price ranges. Full Story.
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Zillow Report Shows Homeowners Facing Reality, Sort Of.
When it comes to real estate, more Americans are moving from denial to acceptance. Zillow.com, a Web site that provides housing-market information, says it found in a recent survey that 57% of participants believe their homes lost value during the past year. That was up from just 38% in a similar survey during last year’s second quarter.
Zillow estimates that values declined on 76% of all U.S. homes during 2008. Full Story
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
New House or an Old One?
As you embark on your venture to buy a home, one of the first decisions to make is whether
to buy new or purchase an existing home. Each choice has its advantages, and there is no
single answer that works for everyone.
You may be drawn to the shiny new, energy-efficient appliances, the great room, and the
beautiful master suite offered in a new home. But you may also like the charm, the canopy of
trees that drape over the sleepy neighborhood streets, and the increasing value of an
existing home you’ve been eying.
Here are some things you’ll want to ponder as you decide which route to take.
Existing homes offer many considerations for potential homebuyers, including:
* The neighborhood. Many people are drawn to developed neighborhoods for the sense of
community that has been established. The mature landscaping and developed trees are often a
considering factor.
* Maintenance and repair. If you’re considering an existing home, be sure you have a
good handle on the working status of all major systems. Hire a professional home inspector
to check out the house. As appliances and systems age they naturally require repair and
replacement, something which may be reflected in a purchase price.
* Home improvement. If you enjoy small repairs and home improvement projects around the
house, then an existing home would be your cup of tea.
* Existing features. When you buy an existing home, you typically don’t have to worry
about buying the extras, such as blinds for the window, a security system, or a landscaped
back yard.
* Land. In most metro centers, new homes may have less land than newer properties. Why?
Because of changes in land-use patterns.
* Location. Existing homes are often found in older, more convenient metro core areas
rather than outlying suburbs.
* The opportunity to remodel. In some cases buyers may prefer an older home in a
particular location which can be modernized or expanded. In effect, use the existing home as
a base to build a unique property.
* Price. In general terms, existing homes tend to be less expensive than new properties.
As well, existing homes are likely to come complete with items which may represent new home
extras—blinds, landscaping, built-ins, etc.
* Track record. When you purchase an existing home, you know how much the property has
appreciated over the years — in effect, you have an index of sorts which measures the
community’s marketplace appeal. At the same time, like stocks and bonds, you know that past
results do not guarantee future marketplace performance.
* Taxes. Depending on your state, you will likely have lower property tax rates. Also,
many older households aren’t required to pay for local bonds associated with new
development, such as schools, parks, or road or transportation improvements.
* Traditional layout. If you like the formal living and dining rooms, an existing home
will likely satisfy you.
Full story from www.Realtor .com.
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
US home sales see surprise rise
© BBC MMIX
US home sales unexpectedly rose in December as buyers took advantage of much lower house prices, industry figures have showed.
Sales of existing homes rose 6.5% to an annual rate of 4.74 million, up from 4.45 million units in November, the National Association of Realtors said.
Analysts had been expecting December sales to total 4.4 million.
For 2008 as a whole, sales fell 13.1% to 4.91 million units, the worst year in a decade.
“It appears some buyers are taking advantage of much lower home prices,” said Lawrence Yun, the association’s chief economist.
“Buyers will continue to have an edge over sellers for the foreseeable future.”
The association said that existing home prices fell by 15.3% in December from the same period a year earlier, with 45% of transactions viewed as “distress sales”, where the seller was forced to sell at a discounted price.
2009 rebound?
The rise in home sales was also down to a fall in the number of unsold homes on the market.
However, analysts said that this trend could reverse, as sellers were likely to resume putting their homes up for sale in the spring.
“The bottom line is that existing home sales have weakened markedly following the credit market seizure in September,” said Paul Ashworth, senior economist at Capital Economics.
“The subsequent decline in mortgage rates may spur a rebound in 2009, but nothing is guaranteed,” he added.
New home construction has also been hit by the economic slowdown.
Housing starts in the US fell by 15.5% in December to hit an all-time low, official statistics released last week showed. The rate of new construction was down 45% from December 2007.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/7852011.stm
Published: 2009/01/26 17:07:33 GMT
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Home prices see sharp dip.
A new government report reveals declines that are steeper than usual – even for this market.By Les Christie, CNNMoney.com staff writer
NEW YORK (CNNMoney.com) — Home prices continued to plunge in November, according to a new government report released Thursday. Full story.
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Time away.
CNNMoney: Protecting your home while away
The Holidays were right around the corner, but before you take off for the holiday weekend, make sure your home is safe when you’re not there. Here are some guidelines to keep your home protected.
Existing home sales increase by largest amount in 5 years
Sales of existing homes rose by the largest amount in more than five years in September, a real estate trade group said Friday. The data is a possible glimmer of hope that the housing slump could be starting to bottom out.
The National Association of Realtors said Friday that sales of existing homes rose by 5.5 percent in September compared to August, the best showing since a 5.6 percent increase in July 2003, during the five-year housing boom.
More on this story at AikenStandard.com
