Both here at Lake of the Ozarks and across the nation we are seeing encouraging numbers on the real estate front. New housing construction and increases in sales of existing homes continue to point toward a sustained recovery in the months ahead.
Existing-home sales in August 2009 gave back some of their strong gain in July but remain above year-ago levels, according to the National Association of Realtors®.
Existing-home sales- including single-family, townhomes, condominiums and co-ops- declined 2.7% in August vs. July but remain 3.4% above August 2008. In the previous four months, sales had risen a total of 15.2%.
Lawrence Yun, NAR chief economist, said the tax credit is working. “Home sales retrenched from a very strong improvement in July but continue to be much higher than before the stimulus. The first-time buyer tax credit is having the intended impact of bringing buyers into the market, allowing them to take advantage of very favorable affordability conditions,” he said.
Judging from the increase in real estate activity here at Lake of the Ozarks, I feel we can expect this continual, steady increase in sales through Fall and continuing into 2010. Median prices are showing modest increases as well both at the lake and nationally. I don’t see this as an increase in property values but rather an increase in the price ranges being sold which is another good indicator of consumer confidence beyond the buyer’s taking advantage of the first time buyer credit.
Mortgage Rates dropped about a fifth of a percent in mid August, pushing average 30 year fixed rates to 5.2 percent and 15 year rates to just 4.5 percent. The Mortgage Bankers Association reported that loan applications to purchase houses jumped four percent in August for three straight weeks of higher applications. The $8,000 tax credit is still in place for homes purchased before December 1st so many are taking advantage of all these factors to purchase a home.
I feel we are seeing the bottom of the residential real estate market at the lake. There are excellent values (or “deals” if you prefer) available right now. I’m not forecasting a skyrocketing return to the quick sales and increase in property values that we were experiencing a couple of years ago, overall lake area sales numbers are still down but they are starting to rebound.
Whatever your take on the overall economy, you've got to admit: It's looking much better out there for real estate.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Monday, October 26, 2009
September Lake Real Estate Sales Report
Both here at Lake of the Ozarks and across the nation we are seeing encouraging numbers on the real estate front. New housing construction and increases in sales of existing homes continue to point toward a sustained recovery in the months ahead.
The Commerce Department reports that single family starts last month were up nearly two percent over the prior month, while permits for future construction jumped by six percent. Starts and permits are now at their highest levels in ten months.
Existing home sales and price reports from around the country show the rebound getting underway. Judging from the increase in real estate activity here at Lake of the Ozarks, I feel we can expect this continual, steady increase in sales through Fall and continuing into 2010. Median prices are showing modest increases as well both at the lake and nationally. I don’t see this as an increase in property values but rather an increase in the price ranges being sold which is another good indicator of consumer confidence.
Mortgage Rates dropped about a fifth of a percent in mid August, pushing average 30 year fixed rates to 5.2 percent and 15 year rates to just 4.5 percent. The Mortgage Bankers Association reported that loan applications to purchase houses jumped four percent in August for three straight weeks of higher applications. The $8,000 tax credit is still in place for homes purchased before December 1st so many are taking advantage of all these factor to purchase a home.
I feel we are seeing the bottom of the residential real estate market at the lake. There are excellent values (or “deals” if you prefer) available right now. I’m not forecasting a skyrocketing return to the quick sales and increase in property values that we were experiencing a couple of years ago, overall lake area sales numbers are still down but they are starting to rebound.
Whatever your take on the overall economy, you've got to admit: It's looking much better out there for housing.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
The Commerce Department reports that single family starts last month were up nearly two percent over the prior month, while permits for future construction jumped by six percent. Starts and permits are now at their highest levels in ten months.
Existing home sales and price reports from around the country show the rebound getting underway. Judging from the increase in real estate activity here at Lake of the Ozarks, I feel we can expect this continual, steady increase in sales through Fall and continuing into 2010. Median prices are showing modest increases as well both at the lake and nationally. I don’t see this as an increase in property values but rather an increase in the price ranges being sold which is another good indicator of consumer confidence.
Mortgage Rates dropped about a fifth of a percent in mid August, pushing average 30 year fixed rates to 5.2 percent and 15 year rates to just 4.5 percent. The Mortgage Bankers Association reported that loan applications to purchase houses jumped four percent in August for three straight weeks of higher applications. The $8,000 tax credit is still in place for homes purchased before December 1st so many are taking advantage of all these factor to purchase a home.
I feel we are seeing the bottom of the residential real estate market at the lake. There are excellent values (or “deals” if you prefer) available right now. I’m not forecasting a skyrocketing return to the quick sales and increase in property values that we were experiencing a couple of years ago, overall lake area sales numbers are still down but they are starting to rebound.
Whatever your take on the overall economy, you've got to admit: It's looking much better out there for housing.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
When the Hammer Falls: Luxury Lake Home Auctions
Curiosity combined with a desire to be on top of the Lake real estate market led me to attend the July 18th Luxury Home Auctions here at Lake of the Ozarks.
Each of the four homes advertised for auction were investment speculation homes. None of these were distress sale situations and certainly none were anyone’s personal home they were in danger of being put out of. All of these homes had minimum reserves or bid requirements set.
The results of the auction were interesting. One home was contracted before the auction took place, the remaining three were contracted on auction day as a result of the auction however, two of these are now back on the market leaving one home sold at auction still under contract at the time of this writing.
Each of the four homes are listed with various real estate companies and the listing agents worked with the auction house to facilitate and market the auction process. The auction process was handled very professionally and had a large attendance.
In a down real estate market, sellers are looking for an edge and buyers are looking for a deal. A real estate auction is simply another method of selling real estate. It is a real estate marketing process that involves the public sale of any property -- most certainly including those that are nondistressed -- through open cry, competitive bidding.
Any auction can also be affected by national and world economic situations. Auction dates are set weeks in advance. A rash of bad news in the days before an auction can affect bid prices, and, ultimately, the sale price.
As a seller, you need to do your homework to know what services are offered, how your property will be promoted, what fees and commissions you will be responsible for and the auction house’s track record. Most auction houses charge an upfront marketing fee in addition to commission.
As a buyer, you need to complete your due diligence and have your financing in order before the auction. No inspection clauses or financing contingencies are allowed in most auction sales. Most auctions charge a buyer premium or percentage of the purchase price; at the auctions I attended it was a 6% fee. You also need to realize the auction house is representing the seller and you’ll want to be sure to obtain any required documents in advance for review.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Each of the four homes advertised for auction were investment speculation homes. None of these were distress sale situations and certainly none were anyone’s personal home they were in danger of being put out of. All of these homes had minimum reserves or bid requirements set.
The results of the auction were interesting. One home was contracted before the auction took place, the remaining three were contracted on auction day as a result of the auction however, two of these are now back on the market leaving one home sold at auction still under contract at the time of this writing.
Each of the four homes are listed with various real estate companies and the listing agents worked with the auction house to facilitate and market the auction process. The auction process was handled very professionally and had a large attendance.
In a down real estate market, sellers are looking for an edge and buyers are looking for a deal. A real estate auction is simply another method of selling real estate. It is a real estate marketing process that involves the public sale of any property -- most certainly including those that are nondistressed -- through open cry, competitive bidding.
Any auction can also be affected by national and world economic situations. Auction dates are set weeks in advance. A rash of bad news in the days before an auction can affect bid prices, and, ultimately, the sale price.
As a seller, you need to do your homework to know what services are offered, how your property will be promoted, what fees and commissions you will be responsible for and the auction house’s track record. Most auction houses charge an upfront marketing fee in addition to commission.
As a buyer, you need to complete your due diligence and have your financing in order before the auction. No inspection clauses or financing contingencies are allowed in most auction sales. Most auctions charge a buyer premium or percentage of the purchase price; at the auctions I attended it was a 6% fee. You also need to realize the auction house is representing the seller and you’ll want to be sure to obtain any required documents in advance for review.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Tuesday, July 7, 2009
What to Do When the Sale Price Leaves You Short
If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.
1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:
• Your property is worth less than the total mortgage you owe on it.
• You have a financial hardship, such as a job loss or major medical bills.
• You have contacted your lender and it is willing to entertain a short sale.
2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:
• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
• Help you set an appropriate listing price for your home, market the home, and get it sold.
• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
• Ease the process of working with your lender or lenders.
• Negotiate the contract with the buyers.
• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.
3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:
• A hardship letter detailing your financial situation and why you need the short sale
• A copy of the purchase contract and listing agreement
• Proof of your income and assets
• Copies of your federal income tax returns for the past two years
4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:
• If you have only one mortgage, the review can take about two months.
• With a first and second mortgage with the same lender, the review can take about three months.
• With two or more mortgages with different lenders, it can take four months or longer.
When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)
5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:
• You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
• Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
• Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.
1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:
• Your property is worth less than the total mortgage you owe on it.
• You have a financial hardship, such as a job loss or major medical bills.
• You have contacted your lender and it is willing to entertain a short sale.
2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:
• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
• Help you set an appropriate listing price for your home, market the home, and get it sold.
• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
• Ease the process of working with your lender or lenders.
• Negotiate the contract with the buyers.
• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.
3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:
• A hardship letter detailing your financial situation and why you need the short sale
• A copy of the purchase contract and listing agreement
• Proof of your income and assets
• Copies of your federal income tax returns for the past two years
4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:
• If you have only one mortgage, the review can take about two months.
• With a first and second mortgage with the same lender, the review can take about three months.
• With two or more mortgages with different lenders, it can take four months or longer.
When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)
5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:
• You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
• Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
• Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.
With Affordability Up and Interest Rates Down, Home Buyers are Starting to Return
Thanks to record low mortgage rates and declining home prices, 55 million families – or half of all U.S. households -- can afford today’s median-priced new home, according to figures released by the National Association of Home Builders (NAHB).
"That’s an increase of 17 million households from conditions just two years ago and the best housing affordability number we have seen in years," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "We are now seeing the first signs that home buyers are returning to the marketplace."
Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income and save nearly $500 per month on their principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB.
"With affordability up dramatically, reports from our builders in the field indicate that foot traffic in new homes is on the rise and consumer interest is increasing with each passing day. These are encouraging signs that the housing market may be finally reaching a bottom," said Robson.
Entering the crucial spring home buying season, there are other signs that buyers are starting to return to the market.
Single-family permits were up 11 percent in February, new and existing home sales also posted gains and the huge inventory backlog is being slowly whittled down. In a survey last month among prospective first-time home buyers who indicated they were likely to purchase a home in the next two years, a majority – 78 percent – said that now is a good time to buy a home. Of those responding to an online poll, 68 percent said that now is a better time to buy than six months ago.
Another sign that consumers are considering jumping back into the housing market is the growing interest in the $8,000 first-time home buyer tax credit included in the recently enacted economic stimulus package. During February and March, 1.5 million visitors logged on to NAHB’s consumer Web site, federalhousingtaxcredit.com, to learn more about the tax credit. Further, a new survey commissioned by Move, Inc. found that nearly 20 percent of those who plan to purchase a home this year are doing so to take advantage of the tax credit, which expires at the end of November.
"With home values in many markets at the lowest level since 2003, an $8,000 tax credit available to first-time home buyers, fixed-rate mortgages under 5 percent, and an outstanding selection of homes to choose from, buyers are starting to recognize that this has the makings for a one-time opportunity to break into the market," said Robson.
Housing is a critical component of the U.S. economy, accounting for about 15 cents of every dollar spent in this country, so any upturn in the housing market should be viewed as good news for the overall economy, said Robson.
Construction of an additional 500,000 single-family homes – the difference between today’s anemic construction rate and one that would move closer to meeting the underlying demand for housing – would generate 734,000 jobs and $35 billion in wages in the construction industry and another 790,000 jobs and $37.7 billion wages in manufacturing, trade, and service sector jobs, he noted.
Additionally, another half-million housing starts would bolster the tax base for government, generating $45 billion in federal, state and local tax revenues. And the benefits go well beyond the completion of each home. Within the first year after buying a home, those half million households will spend about $2.5 billion more on appliances, furnishings and property alterations. Clearly, housing will be central to any economic recovery we experience in the months ahead.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
"That’s an increase of 17 million households from conditions just two years ago and the best housing affordability number we have seen in years," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "We are now seeing the first signs that home buyers are returning to the marketplace."
Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income and save nearly $500 per month on their principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB.
"With affordability up dramatically, reports from our builders in the field indicate that foot traffic in new homes is on the rise and consumer interest is increasing with each passing day. These are encouraging signs that the housing market may be finally reaching a bottom," said Robson.
Entering the crucial spring home buying season, there are other signs that buyers are starting to return to the market.
Single-family permits were up 11 percent in February, new and existing home sales also posted gains and the huge inventory backlog is being slowly whittled down. In a survey last month among prospective first-time home buyers who indicated they were likely to purchase a home in the next two years, a majority – 78 percent – said that now is a good time to buy a home. Of those responding to an online poll, 68 percent said that now is a better time to buy than six months ago.
Another sign that consumers are considering jumping back into the housing market is the growing interest in the $8,000 first-time home buyer tax credit included in the recently enacted economic stimulus package. During February and March, 1.5 million visitors logged on to NAHB’s consumer Web site, federalhousingtaxcredit.com, to learn more about the tax credit. Further, a new survey commissioned by Move, Inc. found that nearly 20 percent of those who plan to purchase a home this year are doing so to take advantage of the tax credit, which expires at the end of November.
"With home values in many markets at the lowest level since 2003, an $8,000 tax credit available to first-time home buyers, fixed-rate mortgages under 5 percent, and an outstanding selection of homes to choose from, buyers are starting to recognize that this has the makings for a one-time opportunity to break into the market," said Robson.
Housing is a critical component of the U.S. economy, accounting for about 15 cents of every dollar spent in this country, so any upturn in the housing market should be viewed as good news for the overall economy, said Robson.
Construction of an additional 500,000 single-family homes – the difference between today’s anemic construction rate and one that would move closer to meeting the underlying demand for housing – would generate 734,000 jobs and $35 billion in wages in the construction industry and another 790,000 jobs and $37.7 billion wages in manufacturing, trade, and service sector jobs, he noted.
Additionally, another half-million housing starts would bolster the tax base for government, generating $45 billion in federal, state and local tax revenues. And the benefits go well beyond the completion of each home. Within the first year after buying a home, those half million households will spend about $2.5 billion more on appliances, furnishings and property alterations. Clearly, housing will be central to any economic recovery we experience in the months ahead.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
With Affordability Up and Interest Rates Down, Home Buyers are Starting to Return
Thanks to record low mortgage rates and declining home prices, 55 million families – or half of all U.S. households -- can afford today’s median-priced new home, according to figures released by the National Association of Home Builders (NAHB).
"That’s an increase of 17 million households from conditions just two years ago and the best housing affordability number we have seen in years," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "We are now seeing the first signs that home buyers are returning to the marketplace."
Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income and save nearly $500 per month on their principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB.
"With affordability up dramatically, reports from our builders in the field indicate that foot traffic in new homes is on the rise and consumer interest is increasing with each passing day. These are encouraging signs that the housing market may be finally reaching a bottom," said Robson.
Entering the crucial spring home buying season, there are other signs that buyers are starting to return to the market.
Single-family permits were up 11 percent in February, new and existing home sales also posted gains and the huge inventory backlog is being slowly whittled down. In a survey last month among prospective first-time home buyers who indicated they were likely to purchase a home in the next two years, a majority – 78 percent – said that now is a good time to buy a home. Of those responding to an online poll, 68 percent said that now is a better time to buy than six months ago.
Another sign that consumers are considering jumping back into the housing market is the growing interest in the $8,000 first-time home buyer tax credit included in the recently enacted economic stimulus package. During February and March, 1.5 million visitors logged on to NAHB’s consumer Web site, federalhousingtaxcredit.com, to learn more about the tax credit. Further, a new survey commissioned by Move, Inc. found that nearly 20 percent of those who plan to purchase a home this year are doing so to take advantage of the tax credit, which expires at the end of November.
"With home values in many markets at the lowest level since 2003, an $8,000 tax credit available to first-time home buyers, fixed-rate mortgages under 5 percent, and an outstanding selection of homes to choose from, buyers are starting to recognize that this has the makings for a one-time opportunity to break into the market," said Robson.
Housing is a critical component of the U.S. economy, accounting for about 15 cents of every dollar spent in this country, so any upturn in the housing market should be viewed as good news for the overall economy, said Robson.
Construction of an additional 500,000 single-family homes – the difference between today’s anemic construction rate and one that would move closer to meeting the underlying demand for housing – would generate 734,000 jobs and $35 billion in wages in the construction industry and another 790,000 jobs and $37.7 billion wages in manufacturing, trade, and service sector jobs, he noted.
Additionally, another half-million housing starts would bolster the tax base for government, generating $45 billion in federal, state and local tax revenues. And the benefits go well beyond the completion of each home. Within the first year after buying a home, those half million households will spend about $2.5 billion more on appliances, furnishings and property alterations. Clearly, housing will be central to any economic recovery we experience in the months ahead.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
"That’s an increase of 17 million households from conditions just two years ago and the best housing affordability number we have seen in years," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "We are now seeing the first signs that home buyers are returning to the marketplace."
Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income and save nearly $500 per month on their principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB.
"With affordability up dramatically, reports from our builders in the field indicate that foot traffic in new homes is on the rise and consumer interest is increasing with each passing day. These are encouraging signs that the housing market may be finally reaching a bottom," said Robson.
Entering the crucial spring home buying season, there are other signs that buyers are starting to return to the market.
Single-family permits were up 11 percent in February, new and existing home sales also posted gains and the huge inventory backlog is being slowly whittled down. In a survey last month among prospective first-time home buyers who indicated they were likely to purchase a home in the next two years, a majority – 78 percent – said that now is a good time to buy a home. Of those responding to an online poll, 68 percent said that now is a better time to buy than six months ago.
Another sign that consumers are considering jumping back into the housing market is the growing interest in the $8,000 first-time home buyer tax credit included in the recently enacted economic stimulus package. During February and March, 1.5 million visitors logged on to NAHB’s consumer Web site, federalhousingtaxcredit.com, to learn more about the tax credit. Further, a new survey commissioned by Move, Inc. found that nearly 20 percent of those who plan to purchase a home this year are doing so to take advantage of the tax credit, which expires at the end of November.
"With home values in many markets at the lowest level since 2003, an $8,000 tax credit available to first-time home buyers, fixed-rate mortgages under 5 percent, and an outstanding selection of homes to choose from, buyers are starting to recognize that this has the makings for a one-time opportunity to break into the market," said Robson.
Housing is a critical component of the U.S. economy, accounting for about 15 cents of every dollar spent in this country, so any upturn in the housing market should be viewed as good news for the overall economy, said Robson.
Construction of an additional 500,000 single-family homes – the difference between today’s anemic construction rate and one that would move closer to meeting the underlying demand for housing – would generate 734,000 jobs and $35 billion in wages in the construction industry and another 790,000 jobs and $37.7 billion wages in manufacturing, trade, and service sector jobs, he noted.
Additionally, another half-million housing starts would bolster the tax base for government, generating $45 billion in federal, state and local tax revenues. And the benefits go well beyond the completion of each home. Within the first year after buying a home, those half million households will spend about $2.5 billion more on appliances, furnishings and property alterations. Clearly, housing will be central to any economic recovery we experience in the months ahead.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Spring Market Showing Increasing Activity
April has shown a great increase in the number of potential buyers looking to make a purchase in time to enjoy the 2009 Summer Season.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
1st Time Homebuyer Credits and Low Interest Rates
If you haven’t owned a home in the past 3 years, I advise you to consider getting back into home ownership. With the 1st Time Homebuyer Credit at $8,000, interest rates at an historic low and am ample selection of homes to choose from combined with motivated sellers there may not ever be a better time to buy.
The homebuyer’s credit is available on purchases made from January 1, 2009 to November 30, 2009 and actually reduces the amount of taxes due by the amount of the credit. If you owe less in taxes than the credit, you will receive a check for the difference. Many people don’t realize they are eligible for this credit or what the details are. If you would like me to send you a copy of NAR’s frequently asked questions guide, please call or email.
Daryl Weatherman, long time lake area builder and developer has recently chosen me to market his newest development, Pointe Royale Resort Community. Located at the 3.5 mile marker of the Big Niangua and on State Route EE at Greenview, this development is perfectly situated to take advantage of quiet water and roads but is just minutes to activities, dining and shopping.
Daryl has secured 4.875% 30 year fixed rate financing with NO points for buyers. Take advantage of this along with the 1st Time Homebuyer Credit and you’ll have a great value! Prices range from $128,900 to $192,850 for 2 and 3 bedrooms units. The quality of construction provides low maintenance, excellent sound proofing and fine upscale details usually found in higher end custom homes.
I’ll be glad to send you a full information packet for Pointe Royale or you can stop by the decorator model 10 a.m. to 4 p.m., 7 days a week. For a virtual tourvisit us 24/7 at www.PointeRoyaleCondominiums.com
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
The homebuyer’s credit is available on purchases made from January 1, 2009 to November 30, 2009 and actually reduces the amount of taxes due by the amount of the credit. If you owe less in taxes than the credit, you will receive a check for the difference. Many people don’t realize they are eligible for this credit or what the details are. If you would like me to send you a copy of NAR’s frequently asked questions guide, please call or email.
Daryl Weatherman, long time lake area builder and developer has recently chosen me to market his newest development, Pointe Royale Resort Community. Located at the 3.5 mile marker of the Big Niangua and on State Route EE at Greenview, this development is perfectly situated to take advantage of quiet water and roads but is just minutes to activities, dining and shopping.
Daryl has secured 4.875% 30 year fixed rate financing with NO points for buyers. Take advantage of this along with the 1st Time Homebuyer Credit and you’ll have a great value! Prices range from $128,900 to $192,850 for 2 and 3 bedrooms units. The quality of construction provides low maintenance, excellent sound proofing and fine upscale details usually found in higher end custom homes.
I’ll be glad to send you a full information packet for Pointe Royale or you can stop by the decorator model 10 a.m. to 4 p.m., 7 days a week. For a virtual tourvisit us 24/7 at www.PointeRoyaleCondominiums.com
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Monday, March 16, 2009
STATE OF THE LAKE ADDRESS
I am writing this on the day that President Obama will give an address in front of Congress with heavy emphasis on the economy. The White House Press Secretary has stated that he feels the President will discuss restoring to Washington a sense of fiscal responsibility and understanding that we have to live within our means. We currently have a $1.3 Trillion annual budget deficit.
This speech follows a week after the signing of a $787 Billion stimulus bill. It comes at a time polls indicate that nearly three out of four Americans are scared about the way things are going in this country. The stock market closed yesterday at it’s lowest since 1997.
Well, how’s that for a rosy picture? Add to that, the decrease in homes sales over the past 3 years at Lake of the Ozarks and you may wonder if it is a wise choice to buy a home at the Lake.
My answer is a resounding YES. While the number of homes sold has fallen, property values have held steady. The key to purchasing is to have full knowledge of what is happening in the Lake market. You should still base your purchase on what your and your family’s needs are in a home and on your budget. From there you need to research the neighborhood, property condition, what similar properties have been selling for as well what trends the market data has shown over the previous 3-5 years.
If you are looking to purchase based solely on investment, there are some decent buys out there. While the number of foreclosures is less than 5% of all homes currently available through the Bagnell Dam and Lake of the Ozarks Multiple Listing Service, they do exist and some present a great opportunity. I am also seeing some short sale situations. Again, whether you are on the buying or selling end, knowledge of the market is crucial and hiring a real estate agent that is experienced and educated in these matters will prove to be well worth the fee you’ll pay.
Lake of the Ozarks is constantly moving forward. MODOT is progressing with the by-pass and other surrounding road improvements that make us easily accessible from all directions and simple to navigate while here. New commercial projects continue all over the lake area which will open new jobs and increase our visitors. All of this will reflect positively on the lake’s economy and, in turn, our real estate values.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
This speech follows a week after the signing of a $787 Billion stimulus bill. It comes at a time polls indicate that nearly three out of four Americans are scared about the way things are going in this country. The stock market closed yesterday at it’s lowest since 1997.
Well, how’s that for a rosy picture? Add to that, the decrease in homes sales over the past 3 years at Lake of the Ozarks and you may wonder if it is a wise choice to buy a home at the Lake.
My answer is a resounding YES. While the number of homes sold has fallen, property values have held steady. The key to purchasing is to have full knowledge of what is happening in the Lake market. You should still base your purchase on what your and your family’s needs are in a home and on your budget. From there you need to research the neighborhood, property condition, what similar properties have been selling for as well what trends the market data has shown over the previous 3-5 years.
If you are looking to purchase based solely on investment, there are some decent buys out there. While the number of foreclosures is less than 5% of all homes currently available through the Bagnell Dam and Lake of the Ozarks Multiple Listing Service, they do exist and some present a great opportunity. I am also seeing some short sale situations. Again, whether you are on the buying or selling end, knowledge of the market is crucial and hiring a real estate agent that is experienced and educated in these matters will prove to be well worth the fee you’ll pay.
Lake of the Ozarks is constantly moving forward. MODOT is progressing with the by-pass and other surrounding road improvements that make us easily accessible from all directions and simple to navigate while here. New commercial projects continue all over the lake area which will open new jobs and increase our visitors. All of this will reflect positively on the lake’s economy and, in turn, our real estate values.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Tuesday, February 3, 2009
Great Time to Buy a Vacation Home
Lower prices and less competition are the tip of the iceberg-sized list of factors that make it a good time to consider a vacation home purchase.
According to statistics from the Bagnell Dam Association of Realtors Multiple Listing System, in 2007 1,604 homes sold for a total sales volume of $387 million. In 2008 1,153 homes sold with a total volume of $262 million. 2007 Condos sales totaled 815 at $161 million, average sales price was $198,638. 2008 condo sales totaled 559 at $110 million, average sales price was $197,224. In 2007, 734 lakefront homes sold for a total of $268 million and average sales price of $366,302. 2008 lakefront homes totaled 504 at $178 million and $353,590 average sales price.
While the number of properties sold is down considerably, values are remaining reasonably steady. A host of market conditions have converged to make buying a second home a smart move right about now.
Stock market woes have always pushed people to look for alternate investments, and real estate is a consistent stronghold. Home sales are down right now but they have always rebounded. I wouldn't recommend buying a second home with the expectation of flipping it for a quick buck, but if you hang onto it for a while -- and better still, turn it into a vacation rental property -- you'll make a nice profit.
Interest rates are cooperating. As of the writing of this article, 30 year fixed rates are averaging 4.96%. The rate hasn't been lower since Freddie Mac started surveying these averages in 1971. Rates have been reasonably low for awhile, following earlier rate cuts last year toward the beginning of the year. That's good news for anyone who's in the market for a mortgage.
The pressure of bidding wars is off. Housing bubble or no housing bubble, you're not going to get bargain basement prices on a lakefront home or condo but because houses aren't flying off the shelf, there's less pressure on you to make a quick decision. You can afford to take your time, do your research, and refine your plan.
Vacation rental demand is on. Economic pressures on travel budgets are forcing those who once traveled abroad to stick closer to home. To further save travel dollars, domestic travelers want the most bang for their getaway bucks. Vacation homes provide all the comforts and options of home (eating in, game rooms, wireless access, etc.), often at a per-person rate that's cheaper than a hotel.
A vacation home can pay for itself. If your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year. Other costs, including bills for your phone, power, cable, and association dues, may be paid out of your earnings from approximately five off-week rentals.
The calculations don't consider the added cost of a property manger you may need if you are not a do-it-yourselfer.
Despite the convergence of positive factors pointing to an opportunity to buy a second or vacations home, the fundamentals still apply. Strong credit, low debt, high savings and other assets are a plus.
If you have strong credit, you can find a lender who'll work with you. Also, don't rush into a decision. It's more important to take your time, make sure the property is right for you.
For more information or to ask lake real estatequestions, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
According to statistics from the Bagnell Dam Association of Realtors Multiple Listing System, in 2007 1,604 homes sold for a total sales volume of $387 million. In 2008 1,153 homes sold with a total volume of $262 million. 2007 Condos sales totaled 815 at $161 million, average sales price was $198,638. 2008 condo sales totaled 559 at $110 million, average sales price was $197,224. In 2007, 734 lakefront homes sold for a total of $268 million and average sales price of $366,302. 2008 lakefront homes totaled 504 at $178 million and $353,590 average sales price.
While the number of properties sold is down considerably, values are remaining reasonably steady. A host of market conditions have converged to make buying a second home a smart move right about now.
Stock market woes have always pushed people to look for alternate investments, and real estate is a consistent stronghold. Home sales are down right now but they have always rebounded. I wouldn't recommend buying a second home with the expectation of flipping it for a quick buck, but if you hang onto it for a while -- and better still, turn it into a vacation rental property -- you'll make a nice profit.
Interest rates are cooperating. As of the writing of this article, 30 year fixed rates are averaging 4.96%. The rate hasn't been lower since Freddie Mac started surveying these averages in 1971. Rates have been reasonably low for awhile, following earlier rate cuts last year toward the beginning of the year. That's good news for anyone who's in the market for a mortgage.
The pressure of bidding wars is off. Housing bubble or no housing bubble, you're not going to get bargain basement prices on a lakefront home or condo but because houses aren't flying off the shelf, there's less pressure on you to make a quick decision. You can afford to take your time, do your research, and refine your plan.
Vacation rental demand is on. Economic pressures on travel budgets are forcing those who once traveled abroad to stick closer to home. To further save travel dollars, domestic travelers want the most bang for their getaway bucks. Vacation homes provide all the comforts and options of home (eating in, game rooms, wireless access, etc.), often at a per-person rate that's cheaper than a hotel.
A vacation home can pay for itself. If your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year. Other costs, including bills for your phone, power, cable, and association dues, may be paid out of your earnings from approximately five off-week rentals.
The calculations don't consider the added cost of a property manger you may need if you are not a do-it-yourselfer.
Despite the convergence of positive factors pointing to an opportunity to buy a second or vacations home, the fundamentals still apply. Strong credit, low debt, high savings and other assets are a plus.
If you have strong credit, you can find a lender who'll work with you. Also, don't rush into a decision. It's more important to take your time, make sure the property is right for you.
For more information or to ask lake real estatequestions, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
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