Who’s Representing You?
Missouri law allows real estate licensees to work for the interest of one or both of the parties to the transaction. The law also allows the licensee to work in a neutral position. The general public, and even many licensees, believe that if you are working with a licensed real estate agent, they are working on your behalf. However, Missouri law requires that you must enter into a written agreement if you want representation.
At the onset of communication, a licensee must make you aware of the choices available to you in terms of representation. Without a written agreement stating the type of relationship you have with an agent, that agent is working in a neutral position, not as an advocate for you or, if they are the listing agent on a property you have interest in, most likely they are working for the seller. In a neutral, or Transaction Brokerage, position the agent still has a duty to be honest and fair with all parties and cannot disclose any of your confidential information. If you’d like a copy of the types of representation that are available call or email me.
Be sure you understand from the start, who the agent you are dealing with is working for. Ask for recommendations from friends and coworkers. Ask the agent for previous clients you can contact for insight into their real estate experience. Many buyers are concerned about entering into an exclusive agreement with an agent in case a “deal” comes along that they could “save” on commissions. I have assisted numerous sellers over the years who are struggling to re-sell that “deal” they cut for themselves. Consider enlisting an experienced, knowledgeable, reputable agent to work on your behalf. A great agent can save you time, money and a great deal of headaches down the road.
Now for an update on the current lake market. A year ago, I wrote that I was seeing an upward trend in the number of homes sold, the total sales volume and an increase in the upper range of sales prices. I was cautiously optimistic that the lake home market was starting toward a slow but positive recovery.
As you’ll see in the chart below, our market has continued a steady growth.
This chart lays out the number of homes sold, average sales price, and average days on the market based on data from our Bagnell Dam Association of REALTORS Multiple Listing System comparing the time frames of January 1 thru April 15 of each year from 2003 to the 2012.
Chart here please
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Showing posts with label Lake of the Ozarks Real Estate. Show all posts
Showing posts with label Lake of the Ozarks Real Estate. Show all posts
Monday, April 23, 2012
April Lake of the Ozarks Real Estate Report
The latest lake home sales figures show an increase once again. This rate is above year ago levels by 26.7 percent. Condo sales have also shown a large increase in 2012 vs. 2011 with a 22.8 percent growth in units sold. Average days on the market for lake homes has dropped from 214 to 168 however, condo market times have seen an increase of 23 days over the same time last year.
Lawrence Yun, NAR chief economist, said underlying factors are much better compared to one year ago. "The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market," he said. "Although relatively unusual, there will be rising demand for both rental space and homeownership this year. The great suppression in household formation during the past four years was unsustainable, and a pent-up demand could burst forth from the improving economy."
Regionally, the results were mixed. Declines were seen in both the Northeast and West. The Northeast dropped 3.3 percent in February, with median prices declining 1.9 percent from a year ago.
The West posted a 3.2 percent monthly decline, but is up 6.1 percent of February 2011 as well as up 3.1 percent in median prices.
The Midwest and South were both up, rising 1.0 and 0.6 percent respectively. The median price in the Midwest was down half a percent to $120,000, the lowest median price in the nation.
Decreasing inventory, combined with virtually no new residential construction during the past three years, assure that rents will continue to rise as well as likely home price increases in 2012. I also feel the decrease will drive lot sale which have been almost non-existent the past few years.
So, back to the same song, second verse: you’re not going to find a better time to purchase at Lake of the Ozarks. If you are considering selling, prices are holding steady. If you’re looking to sell and purchase another property, any value loss in your existing home will be offset in the lowered value of the purchased home.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Lawrence Yun, NAR chief economist, said underlying factors are much better compared to one year ago. "The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market," he said. "Although relatively unusual, there will be rising demand for both rental space and homeownership this year. The great suppression in household formation during the past four years was unsustainable, and a pent-up demand could burst forth from the improving economy."
Regionally, the results were mixed. Declines were seen in both the Northeast and West. The Northeast dropped 3.3 percent in February, with median prices declining 1.9 percent from a year ago.
The West posted a 3.2 percent monthly decline, but is up 6.1 percent of February 2011 as well as up 3.1 percent in median prices.
The Midwest and South were both up, rising 1.0 and 0.6 percent respectively. The median price in the Midwest was down half a percent to $120,000, the lowest median price in the nation.
Decreasing inventory, combined with virtually no new residential construction during the past three years, assure that rents will continue to rise as well as likely home price increases in 2012. I also feel the decrease will drive lot sale which have been almost non-existent the past few years.
So, back to the same song, second verse: you’re not going to find a better time to purchase at Lake of the Ozarks. If you are considering selling, prices are holding steady. If you’re looking to sell and purchase another property, any value loss in your existing home will be offset in the lowered value of the purchased home.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
March Lake of the Ozarks Real Estate Report
As the market stabilizes some buyers are defeating themselves and reducing the value they could gain from buying at the bottom of the market, in terms of both home prices and interest rates. Here are just a few ways buyers are setting themselves up for failure.
Looking too long and at too many homes. It is not unusual to hear buyers today say they've been searching for a year, 18 months, even two or three years. Often these buyers have made low offers on multiple properties and have lost out on several “deals”. When you take that long, you become susceptible to overpaying out of sheer exhaustion. It can also cause you to settle for a home that doesn’t meet your needs. To avoid this problem understand and be clear on the differences between what you want and what you need, and work with a local real estate professional you trust. Look to your agent to help keep your expectations based in reality so you can make better decisions about your purchase. Look at homes in a price range where you're likely to find something that will work for you and will allow you to be successful in your efforts to obtain one.
Delaying making a decision because they think prices may get even lower or a better deal will come along. The lake home market has stabilized and I predict a small increase in values over the course of 2012. Inventory is being reduced and days on the market are almost a month and a half shorter than last year.
Making offers way too low. Overbidding seems like an obvious way to cancel out the bargain potential of your deal but making excessively low offers that sellers couldn't afford to take if they wanted to can have the very same result. Buyers who think they can operate strictly on the basis of what the news keeps reporting as a buyer's market are shooting themselves in the foot. If you don't actually secure the home, the bargain basement price you offered is no deal at all. Even if you are willing to come up in price, you’ve probably insulted the seller which will make negotiations more difficult when you make a better offer.
Stressing out. There is so much information available now that it can be overwhelming for a buyer to know how to move forward. Some buyers try to apply national headlines about home prices being depressed to the superlocal dynamics of the Lake of the Ozarks market. Many deny that basic truths apply to them. For example buying a short sale listing can result in a great deal for you however every step in the process is a long drawn out affair, know going in that you will have to have patience and remain calm. Stress over buying a home often leads to panic-based and fear-based decisions, which can be costly in the short and long term.
Manage your expectations by working with a trusted broker or agent you feel comfortable having advise you about the lake area market. Make sure they are knowledgeable about the location where you want to purchase and that they have the negotiation skills to secure the best deal possible on the home that fits your wants and needs.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Looking too long and at too many homes. It is not unusual to hear buyers today say they've been searching for a year, 18 months, even two or three years. Often these buyers have made low offers on multiple properties and have lost out on several “deals”. When you take that long, you become susceptible to overpaying out of sheer exhaustion. It can also cause you to settle for a home that doesn’t meet your needs. To avoid this problem understand and be clear on the differences between what you want and what you need, and work with a local real estate professional you trust. Look to your agent to help keep your expectations based in reality so you can make better decisions about your purchase. Look at homes in a price range where you're likely to find something that will work for you and will allow you to be successful in your efforts to obtain one.
Delaying making a decision because they think prices may get even lower or a better deal will come along. The lake home market has stabilized and I predict a small increase in values over the course of 2012. Inventory is being reduced and days on the market are almost a month and a half shorter than last year.
Making offers way too low. Overbidding seems like an obvious way to cancel out the bargain potential of your deal but making excessively low offers that sellers couldn't afford to take if they wanted to can have the very same result. Buyers who think they can operate strictly on the basis of what the news keeps reporting as a buyer's market are shooting themselves in the foot. If you don't actually secure the home, the bargain basement price you offered is no deal at all. Even if you are willing to come up in price, you’ve probably insulted the seller which will make negotiations more difficult when you make a better offer.
Stressing out. There is so much information available now that it can be overwhelming for a buyer to know how to move forward. Some buyers try to apply national headlines about home prices being depressed to the superlocal dynamics of the Lake of the Ozarks market. Many deny that basic truths apply to them. For example buying a short sale listing can result in a great deal for you however every step in the process is a long drawn out affair, know going in that you will have to have patience and remain calm. Stress over buying a home often leads to panic-based and fear-based decisions, which can be costly in the short and long term.
Manage your expectations by working with a trusted broker or agent you feel comfortable having advise you about the lake area market. Make sure they are knowledgeable about the location where you want to purchase and that they have the negotiation skills to secure the best deal possible on the home that fits your wants and needs.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Monday, January 9, 2012
January 2012 Real Estate Update
The lake area home market continues it’s slow, steady progress. The number of homes sales are up slightly with 50 more units sold from January 1 to December 20, 2011 over the same time frame in 2010 according to data from the Bagnell Dam Association of Realtors Multiple Listing System. Average sales price remains unchanged, a positive sign that the downward spiral has come to an end.
Nationwide existing-home sales rose again in November and remain above a year ago, according to the National Association of Realtors®. The latest monthly data shows total existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 4.0 percent in November over October, and are 12.2 percent above November 2010.
With more people taking advantage of the buyer’s market sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing. We are seeing healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today’s market.
Houses haven’t been this affordable since appliances came in harvest gold or avocado green. The benchmark of affordability—the ratio of median home price to median family income—has fallen to 2.6, below the historical ratio of 2.9. Another measure, the percentage of monthly family income consumed by a mortgage payment (principal and interest, using a mortgage rate of 4.1 percent), is 12 percent nationally, the lowest since 1971.
I feel the lake area prices will continue to hold steady through 2012 with some increases in certain property types then I expect a small increase to begin in 2013 assuming things are left to work themselves out and there are no further shocks to the economy.
Buyers who invest now or in the first few months of 2012 will be able to take full advantage of the bottom of the market. With both property prices and interest rates at historical lows, buyers will reap the benefits of this affordability as well as buying on the cusp of an increase in values.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Nationwide existing-home sales rose again in November and remain above a year ago, according to the National Association of Realtors®. The latest monthly data shows total existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 4.0 percent in November over October, and are 12.2 percent above November 2010.
With more people taking advantage of the buyer’s market sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing. We are seeing healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today’s market.
Houses haven’t been this affordable since appliances came in harvest gold or avocado green. The benchmark of affordability—the ratio of median home price to median family income—has fallen to 2.6, below the historical ratio of 2.9. Another measure, the percentage of monthly family income consumed by a mortgage payment (principal and interest, using a mortgage rate of 4.1 percent), is 12 percent nationally, the lowest since 1971.
I feel the lake area prices will continue to hold steady through 2012 with some increases in certain property types then I expect a small increase to begin in 2013 assuming things are left to work themselves out and there are no further shocks to the economy.
Buyers who invest now or in the first few months of 2012 will be able to take full advantage of the bottom of the market. With both property prices and interest rates at historical lows, buyers will reap the benefits of this affordability as well as buying on the cusp of an increase in values.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Tuesday, November 1, 2011
November Lake of the Ozarks Real Estate News Update
News continues to be promising in the Lake of the Ozarks real estate market. Sales of lakefront homes are up again over last year with 8.8% more homes sold in 2011 vs. 2010, both up from 2009 numbers. The average lake home sales price is up 12% and sales of condos continue to hold steady both in units sold and value. Existing home sales in the Midwest have experienced large increases over the other regions in the country.
The luxury home market saw an increase of 45.4% in 2011 over 2010 and the luxury home inventory is down to levels we saw four to five years ago. This should help owners of luxury building lots since that market has been flat for several years due in large part to the decrease of values in the luxury home market. Some values fell as much as 30%, making buying an existing home much more affordable with the market offering a large inventory of options. According to information from Camden County planning and zoning just 17 new home permits were issued through August of this year.
Home foreclosures in 2011 are even with last year; the majority of these foreclosures are offwater homes. There are 14% less Lakefront home foreclosures vs. offwater homes. All home foreclosures in the area are 7% below the national average.
With the volatile real estate environment we’ve experienced here at the lake along with the rest of the country, it is important that you understand property values. I’d like to stress the importance of seeking out a professional who has the experience and knowledge to guide you through the potential pitfalls of buying or selling in today’s market and protect your investment. They should be familiar with properties that have sold as well as ones currently on the market. A skilled Realtor can also assist you on how to best position yourself in the negotiation process, help buyers through today’s more stringent finance process and guide all parties through escrow to a successful closing. They can also help you to stay calm and neutral through what is for many a very personal and sometimes emotional situation.
Sales data is from the Bagnell Dam Association of Realtors MLS from January 1, 2010 to October 15, 2011.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
The luxury home market saw an increase of 45.4% in 2011 over 2010 and the luxury home inventory is down to levels we saw four to five years ago. This should help owners of luxury building lots since that market has been flat for several years due in large part to the decrease of values in the luxury home market. Some values fell as much as 30%, making buying an existing home much more affordable with the market offering a large inventory of options. According to information from Camden County planning and zoning just 17 new home permits were issued through August of this year.
Home foreclosures in 2011 are even with last year; the majority of these foreclosures are offwater homes. There are 14% less Lakefront home foreclosures vs. offwater homes. All home foreclosures in the area are 7% below the national average.
With the volatile real estate environment we’ve experienced here at the lake along with the rest of the country, it is important that you understand property values. I’d like to stress the importance of seeking out a professional who has the experience and knowledge to guide you through the potential pitfalls of buying or selling in today’s market and protect your investment. They should be familiar with properties that have sold as well as ones currently on the market. A skilled Realtor can also assist you on how to best position yourself in the negotiation process, help buyers through today’s more stringent finance process and guide all parties through escrow to a successful closing. They can also help you to stay calm and neutral through what is for many a very personal and sometimes emotional situation.
Sales data is from the Bagnell Dam Association of Realtors MLS from January 1, 2010 to October 15, 2011.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Wednesday, May 11, 2011
Foreclosure Tax Ramifications
Be aware of a possible tax liability in a short sale or foreclosure. In regards to a short sale or foreclosure, usually under the tax laws, if your debt ir canceled or forgiven, that is taxable income to you. Basically, the difference between the amount of the loan the price the property brings.
If you lose your house by foreclosure or short sale, to add insult to injury, you may have to pay tax on this "income". There may be some relief if the debt was on your principal residence. Under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million.
If the debt was on a second home or an investment property, then you are out of luck; the amount that was forgiven (or canceled) is taxable income to you.
If your canceled debt was on a refinanced loan, the law is murky. If you used the refinance proceeds to substantially improve your house, the there is no tax to pay. But if you used those proceeds for other purposes the cancellation creates a taxable event for you.
If you are facing possible foreclosure or short sale, be sure to contact a good tax accountant and or attorney to discover what your options and possibilities are.
The IRS has an excellent, free publication on this topic, called "Cancelled Debt, Foreclosure, Repossessions and Abandonments." It is Publication 4681, and will soon be published at the following link on the IRS website: http://irs.gov/pub/irs-pdf/p4681.pdf or by calling 800.829.3676 or 800.Tax.Form
If you lose your house by foreclosure or short sale, to add insult to injury, you may have to pay tax on this "income". There may be some relief if the debt was on your principal residence. Under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million.
If the debt was on a second home or an investment property, then you are out of luck; the amount that was forgiven (or canceled) is taxable income to you.
If your canceled debt was on a refinanced loan, the law is murky. If you used the refinance proceeds to substantially improve your house, the there is no tax to pay. But if you used those proceeds for other purposes the cancellation creates a taxable event for you.
If you are facing possible foreclosure or short sale, be sure to contact a good tax accountant and or attorney to discover what your options and possibilities are.
The IRS has an excellent, free publication on this topic, called "Cancelled Debt, Foreclosure, Repossessions and Abandonments." It is Publication 4681, and will soon be published at the following link on the IRS website: http://irs.gov/pub/irs-pdf/p4681.pdf or by calling 800.829.3676 or 800.Tax.Form
Monday, April 11, 2011
Tax Time And Homeownership
If you are a homeowner, make sure you take advantage of all the credits available to you when you file your taxes this year. Numerous deductions and credits are available for homeowners. These include capital gains and mortgage interest deductions, as well as credits for energy-efficient upgrades.
To get the latest information on energy credits for this year's tax return, visit EnergyStar.gov. You may be able to deduct portions of improvements on everything from windows and doors to water heaters.
Why do homeowners get such special treatment? For starters, the National Association of Realtors reports that "home owners pay 80-90 percent of all U.S. federal income taxes." And the credits and deductions don't just benefit wealthy homeowners.
Ninety-one percent of home owners who claim the mortgage interest deduction earn less than $200,000 a year, and the ability to deduct the interest paid on a mortgage can mean significant savings at tax time. For example, a family who bought a home in 2010 with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file this year. (NAR)
NAR President Ron Phipps says that homeownership has many positive impacts. "Recent proposals to reduce or eliminate the mortgage interest deduction and remove government support of the housing finance market could have disastrous consequences for the economy, not to mention making it harder or nearly impossible for millions of families to own their own homes. We believe America must continue to invest in home ownership, for the future of our families and our nation.”
Need some tips for this tax season? Take a trip over to houselogic.com, a free source of information from NAR, for the latest tips.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
To get the latest information on energy credits for this year's tax return, visit EnergyStar.gov. You may be able to deduct portions of improvements on everything from windows and doors to water heaters.
Why do homeowners get such special treatment? For starters, the National Association of Realtors reports that "home owners pay 80-90 percent of all U.S. federal income taxes." And the credits and deductions don't just benefit wealthy homeowners.
Ninety-one percent of home owners who claim the mortgage interest deduction earn less than $200,000 a year, and the ability to deduct the interest paid on a mortgage can mean significant savings at tax time. For example, a family who bought a home in 2010 with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file this year. (NAR)
NAR President Ron Phipps says that homeownership has many positive impacts. "Recent proposals to reduce or eliminate the mortgage interest deduction and remove government support of the housing finance market could have disastrous consequences for the economy, not to mention making it harder or nearly impossible for millions of families to own their own homes. We believe America must continue to invest in home ownership, for the future of our families and our nation.”
Need some tips for this tax season? Take a trip over to houselogic.com, a free source of information from NAR, for the latest tips.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Monday, October 26, 2009
October Real Estate Sales
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
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
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.
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
Saturday, September 6, 2008
Now is the Time to Secure a Great Real Estate Deal at the Lake
Lake Real Estate values continue to increase and although the number of sales are down this year, the average time on the market remains the same as last year. If you are considering purchasing a lake property or adding to your investment portfolio, now is an excellent time to do so. Waiting a year or two to “see if the market will drop” may very well cost you as much as 5% to 20% more on your purchase price. Just this year our residential values are up almost 5% and that is after the so-called bubble burst.
Gattermeir Elliott is promoting a Summer Sell Down event at Tuscany Condominiums. Developers are offering up to $40,000 price reductions on select developer owned units.
Tuscany is located at the 31 mile marker by water and on Lake Road 5-31, Pier 31 Road by land. Tuscany offers 2 and 3 bedroom units with stunning lake views. Garages, PWC slips and up to 16’x40’ covered slips are available and water and shore power is offered.
The complex includes a large lakeside pool, clubhouse, elevators and exquisite landscaping. A vast array of custom options are available for new units.
On Saturday, September 6th from 10 a.m. to 4 p.m. visit an open house with two homes side by side at a total package price of $1,839,500. Situated on an interior point lot in six mile cove these two adjoining properties total 184’ of gentle lakefront with lakeside pool and two large dock systems, each with cruiser slips., 9 bedrooms, 11 baths with a total of 10,125 square feet of living area plus multiple outdoor entertainment areas. Located on a private end of cul de sac setting, these homes are also available separately. Take Horseshoe Bend Parkway to Cherokee, to Linn Creek to Cornett Branch Road to Ginseng Court or view the Visual Tour at www.GinsengCourt.com
For more information on these properties or other lake real estate questions, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Gattermeir Elliott is promoting a Summer Sell Down event at Tuscany Condominiums. Developers are offering up to $40,000 price reductions on select developer owned units.
Tuscany is located at the 31 mile marker by water and on Lake Road 5-31, Pier 31 Road by land. Tuscany offers 2 and 3 bedroom units with stunning lake views. Garages, PWC slips and up to 16’x40’ covered slips are available and water and shore power is offered.
The complex includes a large lakeside pool, clubhouse, elevators and exquisite landscaping. A vast array of custom options are available for new units.
On Saturday, September 6th from 10 a.m. to 4 p.m. visit an open house with two homes side by side at a total package price of $1,839,500. Situated on an interior point lot in six mile cove these two adjoining properties total 184’ of gentle lakefront with lakeside pool and two large dock systems, each with cruiser slips., 9 bedrooms, 11 baths with a total of 10,125 square feet of living area plus multiple outdoor entertainment areas. Located on a private end of cul de sac setting, these homes are also available separately. Take Horseshoe Bend Parkway to Cherokee, to Linn Creek to Cornett Branch Road to Ginseng Court or view the Visual Tour at www.GinsengCourt.com
For more information on these properties or other lake real estate questions, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Monday, August 4, 2008
Home Sales Rise Modestly Before Upturn in Second Half Of 2008
A modest gain in the level of home sales occurred in the first half of the year and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages, according to the latest forecast by the National Association of Realtors®.
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in April, rose 6.3 percent to 88.2 from a reading of 83.0 in March. It’s the highest index since last October.
The PHSI in the West rose 8.3 percent to 98.8 in April and is 4.0 percent higher than April 2007. In the Midwest, the index jumped 13.0 percent to 83.7 in April. The index in the South increased 4.6 percent to 88.8 and, in the Northeast, the index declined 1.9 percent in April to 79.3.
NAR President Richard F. Gaylord said the market may be breaking its holding pattern. "It appears that more buyers are realizing they can take advantage of a favorable combination of mortgage interest rates, home prices and family income," he said. "Overall affordability conditions are the best we’ve seen since the middle of the housing boom in 2004, but with far more choices and much less pressure than buyers experienced four years ago to make an investment in their future. Recent declines in mortgage rates on conforming jumbo loans and a return to sound but not overly stringent underwriting standards will permit more people to qualify for a loan."
NAR’s housing affordability index has been trending up this year and is projected to rise 15 percentage points to 128.0 for all of 2008.
Yun said the underlying fundamentals point to a pent-up demand. "Home sales are at about the same level as they were 10 years ago, yet the population has grown by 25 million people and we have over 10 million more jobs," he said. "The housing market has been underperforming by historical standards, partly because buyers were hampered by mortgage availability issues, but that’s improved and an upturn is more likely. On the other hand, it’s unclear what role consumer confidence will play in the coming months."
Existing-home sales should increase from an annual pace of 5.05 million in the second quarter to 5.83 million in the fourth quarter. For all of this year, existing-home sales are expected to total 5.40 million, and then rise 6.3 percent to 5.74 million in 2009. "Sales gains will be greatest in areas that underwent sharp price declines," Yun said.
Fore more information on Lake Real Estate values, contact Michael at 877.365.cme1 (2631) OR cme@yourlake.com
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in April, rose 6.3 percent to 88.2 from a reading of 83.0 in March. It’s the highest index since last October.
The PHSI in the West rose 8.3 percent to 98.8 in April and is 4.0 percent higher than April 2007. In the Midwest, the index jumped 13.0 percent to 83.7 in April. The index in the South increased 4.6 percent to 88.8 and, in the Northeast, the index declined 1.9 percent in April to 79.3.
NAR President Richard F. Gaylord said the market may be breaking its holding pattern. "It appears that more buyers are realizing they can take advantage of a favorable combination of mortgage interest rates, home prices and family income," he said. "Overall affordability conditions are the best we’ve seen since the middle of the housing boom in 2004, but with far more choices and much less pressure than buyers experienced four years ago to make an investment in their future. Recent declines in mortgage rates on conforming jumbo loans and a return to sound but not overly stringent underwriting standards will permit more people to qualify for a loan."
NAR’s housing affordability index has been trending up this year and is projected to rise 15 percentage points to 128.0 for all of 2008.
Yun said the underlying fundamentals point to a pent-up demand. "Home sales are at about the same level as they were 10 years ago, yet the population has grown by 25 million people and we have over 10 million more jobs," he said. "The housing market has been underperforming by historical standards, partly because buyers were hampered by mortgage availability issues, but that’s improved and an upturn is more likely. On the other hand, it’s unclear what role consumer confidence will play in the coming months."
Existing-home sales should increase from an annual pace of 5.05 million in the second quarter to 5.83 million in the fourth quarter. For all of this year, existing-home sales are expected to total 5.40 million, and then rise 6.3 percent to 5.74 million in 2009. "Sales gains will be greatest in areas that underwent sharp price declines," Yun said.
Fore more information on Lake Real Estate values, contact Michael at 877.365.cme1 (2631) OR cme@yourlake.com
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