Real Estate Information

WASHINGTON (April 26, 2012) – Pending home sales increased in March and are well above a year ago, another signal the housing market is recovering, according to the National Association of Realtors.

The Pending home sales,  a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9. The data reflects contracts but not closings.

The index is now at the highest level since April 2010 when it reached 111.3.

Lawrence Yun  NAR chief economist, said 2012 is expected to be a year of recovery for housing. “First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good,” he said.

“The housing market has clearly turned the corner. Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses,” Yun said.

The PHSI in the Northeast slipped 0.8 percent to 78.2 in March but is 21.1 percent above March 2011. In the Midwest the index declined 0.9 percent to 93.3 but is 16.9 percent higher than a year ago. Pending home sales in the South rose 5.9 percent to an index of 114.1 in March and are 10.6 percent above March 2011. In the West the index increased 8.7 percent in March to 108.0 and is 9.0 percent above a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

The rain last Friday did not deter our second round of garage sales in Lakewood.  We had a great turnout on Saturday on Hazelbrook, Graywood, Fidler, Dagwood, Premiere and Brierecrest.  We are looking forward to the next round scheduled for May 5th on Ashworth, Lakewood Ponderosas, Pearce, Lorelei, Whitewood, Coldbrook and Dunrobin.  Looking forward to seeing everyone!

Do you owe more on your home than it is worth?  Looking For an honorable solution That can help you and your credit recover? If you, or anyone you know are considering doing a short sale you will need to make a swift decision.  Many short sales are taking anywhere from 4 to 8 months to complete, so time is running out to qualify under the Mortgage Forgiveness Debt Relief Act and Debt Cancellation.   If you do not complete your short sale before January  1, 2013 you may be held responsible for the difference as taxable income. At this moment in time there no clear understanding as to whether Congress will extend this deadline or not.

Web Link To IRS: http://www.irs.gov/individuals/article/0,,id=179414,00.html

We have successfully helped short sale owners and/or buyers and we can assist you too!

Example: If you owe $400,000 on your property and it sells for $300,000, at a 28% tax rate, the settlement difference of $100,000 is $28,000 in taxes you may owe! But, if you complete your short sale prior to the expiration date you may not have to claim that $100,000 as taxable income.

A short sale is a tool which enables you to avoid foreclosure and lessen potential long term damage to your credit rating, as well as the negative tax implications you may experience on a foreclosure. Short sales are not easy, nor are they fun, but they can save sellers from      having a foreclosure on their credit record for 10 years and in many cases  allow them to  obtain a new loan in as little as 2 years.  Time is of the essence, so please  contact us  as soon as possible and let us use our considerable experience to help guide you through this      challenging process.     Perhaps you should consider a no-cost short sale.  There is no obligation.   Please call (562) 221-2794 or (562) 900-6761

New Prudential Real Estate Poll: Americans Increasingly Optimistic About Homeownership

Prudential Real Estate released a new national survey showing that Americans are significantly more optimistic about homeownership than they were a year ago.

According to the second-annual Prudential Real Estate Outlook Survey, a full 60 percent of Americans have favorable views toward the real estate market. That’s up 8 points since last year.

The survey shows that signs of increasing optimism are widespread:

• With interest rates at historically low levels, 96 percent agree or somewhat agree that now is a good time to buy.

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• A full 70 percent of respondents have some degree of confidence that property values will improve over the next two years; with an 8 point increase in those very confident or confident compared to last year.
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• 63 percent believe that real estate is a good investment despite the recent market volatility; that’s up 11 points from last year.

The survey confirms that despite the recession, homeownership remains a central part of the American Dream. Eight in 10 respondents said homeownership is very important to them; only 15 percent said the economic downturn made homeownership less important.

We just completed our first round of yearly Garage Sales in Mayfair on Pepperwood, Blackthorne, Bonfair, Adenmoor and Bellflower Blvd.  The turnout was fantastic and everyone was able to clean out their garages and make some extra money!

The next round is scheduled for April 14th on the following streets: Hazelbrook, Graywood, Fidler, Premiere, Dagwood and Briercrest.   Hope to see everyone out with all of their treasures!

Optimism and hope returning to the housing market right in time for the spring market.

HARRIS REAL ESTATE UNIVERSITY has been predicting/ expecting that Spring/ Summer 2012 would be the best in years.

Here are the positive signs:

1) Housing starts surprise increase

2) Low Rates

3) Delinquencies eased a bit but, the foreclosure pipeline is bigger than ever. Remember, there are CURRENTLY 6 Million homes in default, 11 Million underwater and if you include the ‘near underwater’ owners the real number of underwater owners is closer to 20 Million.

4) Record traffic to Internet sites.... More traffic from buyers!

5) The least hit markets have already hit bottom and in many areas are actually appreciating! 

It’s a sign of the times!

Most of us grew up thinking that if we planned well and played by the rules, we’d never have to stand by as our financial lives unraveled. 

But upheaval on Wall Street, unacceptable rates of unemployment and plummeting real estate values have taken their toll.  Since 2007, 7.9 million homeowners have lost their homes to foreclosure. Current estimates are that one in four homeowners owe more on their mortgages than they could get from the sale of their home. Millions more homes will be lost to foreclosure before this real estate crisis runs its course.

The sad fact is that foreclosure is not an isolated event. For months leading up to the loss of a home, financially strapped homeowners live under a cloud of uncertainty.  And then for many years afterwards, the blow to credit gets in the way of buying another home or buying anything on credit. Foreclosure even complicates employment prospects.

The impact of foreclosure is huge and the sad fact is that it’s often avoidable.

As real estate professionals who have earned the Certified Distressed Property Expert (CDPE) designation, our mission is to provide financially strapped homeowners with options to foreclosure, ensure that they steer clear of scams, and help navigate them through the solution that best meets their needs.

Among the most important facts to keep in mind: the sooner help is sought, the better the options.

These are tough times, but more help is available than ever before. If you or someone you care about is ready to navigate away from the dark cloud of an unmanageable mortgage and realize that hope and blue skies are within reach, contact us today and let’s get started.

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.