Real Estate 411: Real Estate 411 Archives

January 25, 2008

Who's To Blame For the Mortgage Mess?

According to an online survey conducted by the Wall Street Journal and the Harris Interactive Personal Finance Poll, the majority of people polled said the government should NOT provide financial assistance to borrowers who can no longer afford to pay their mortgages to keep them out of foreclosure. Here are the findings:

42% felt the government should NOT provide financial help.
25% felt the government should provide financial help

The poll went on to ask who’s responsible for the mortgage quagmire:

52% said it was mortgage lenders and brokers.
21% fingered government regulators
16% faulted home buyers themselves.
11% blamed someone else.

Of note is that nearly half (48%)feel Direct Lenders are most responsible for making sure borrowers are able to pay their mortgages and should be required to modify loan terms for mortgage holders who couldn’t afford their current terms.

“Even though the sub-prime crisis directly affects only a small proportion of Americans, the damage to Americans’ trust of direct mortgage lenders is widespread and may long outlast this crisis. Direct lenders should reach out to their customers and potential customers now to begin to restore their trust,” commented Harris Interactive’s financial services Sr. VP, Peggy Lebenson.

From where I sit I must say I'm not shocked by the survey results. Caveat Emptor seems to be the prevailing sentiment. But that doesn't temper my sadness for those who are loosing their houses due to poor decisions they made regarding financing, decisions in MY opinion which were largely based upon recommendations from a loan professional who they put their trust and faith in to guide them in making good decisions. Shame on them.

Sure, there were some buyers who knew better and who were looking to make a fast buck while the market was heading for the stratosphere, and for them I have no pity, but unfortunately those who didn't know better are now being punished pretty severely.

Let's just hope that a BIG lesson is learned from this and remembered the next time we enter a real estate market with high demand, low inventory, and home lenders whose main criteria of qualification is fogging a mirror...

You can read the entire survey here

Posted by Jeff at 12:54 PM | TrackBack

December 28, 2007

President Signs Home Seller Tax Relief Bill

A bill signed by President Bush last week lets homeowners off the hook for a little-known tax bite that occurs when mortgage debts are forgiven. The reprieve applies to households that use short sales or other mortgage relief efforts during 2007, 2008 and 2009.

The National Association of Realtors is among those saluting the president's action, calling it "an issue of fairness and not kicking people when they are down."

December 26, 2007

Home Prices Post Record Decline

According to a report just released by the Associated Press U.S. home prices fell in October for the 10th consecutive month, posting their largest drop since early 1991.

The record 6.7 percent slide in the Standard & Poor’s/Case-Shiller home price index also marked the 23rd consecutive month that prices either fell or grew more slowly than the month prior.

“No matter how you look at these data, it is obvious that the current state of the single-family housing market remains grim,” said Robert Shiller, who helped create the index, in a statement.

To read the entire release click here.

Posted by Jeff at 7:19 PM | TrackBack

December 5, 2007

Americans Say They Want To Buy Homes, But Aren't Actually Doing It

According to the 2007 National Housing Pulse Survey from October, 59 percent of Americans think "now is a good time to buy".

Now reconcile that with these housing-related gems hitting the wires this week:

* Existing Homes Sales dipped to 4.97 million in October, the lowest since 1999
*New Homes Sales counted 728,000, just off its 12-year lows
*The supply of homes on the market is now at 10.8 months

Somewhere, there is a disconnect.

However, you can put me in the camp of "now is a good time to buy". But not for reasons you would expect.

Yes, home values are relatively low and so are mortgage rates. But, with mortgage guidelines getting more airtight with each passing week, I am concerned that even strong credit borrowers will have financing difficulty as soon as six weeks from now.

Now is a good time to buy because getting financing may be too challenging for some people very, very soon.

(Image courtesy: Wall Street Journal Online)

Posted by Jeff at 7:21 PM | TrackBack

White House Pushes To Freeze Rate Adjustments

President Bush Thursday is set to unveil details of a plan to help head off a wave of mortgage foreclosures hitting homeowners whose adjustable-rate loans are resetting to monthly payment they can’t afford.

Under terms of an agreement hammered out between the administration and lenders, interest rates would be frozen for five years on certain subprime mortgages, congressional aides said.

To read the entire article click here.

Posted by Jeff at 6:27 PM | TrackBack

November 28, 2007

Calfornia Home Sales Down 40%

Home sales decreased 40.2 percent in October in California compared with the same period a year ago, while the median price of an existing home fell 9.9 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

“Financing issues have dogged entry-level buyers since early 2007, but they spilled over into the middle and upper-tier markets in the last few months,” said C.A.R. President William E. Brown. “The decline in sales at the upper end of the market contributed to a significant decline in the statewide median price as even well-qualified borrowers had difficulty securing financing.”

Closed escrow sales of existing, single-family detached homes in California totaled 265,030 in October at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 40.2 percent from the 443,320 sales pace recorded in October 2006.

To read the entire article click here.

Posted by Jeff at 7:40 PM | TrackBack

November 27, 2007

Mortgage Cancellation Debt Relief Legislation

Another piece of legislation that REALTORS® have been advocating for to help struggling homeowners is H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007. If a homeowner must sell a property due to financial problems or through a foreclosure and is unable to repay the full amount of any outstanding mortgage debt, the lender may forgive some or the entire shortfall (this is known as a “short sale”). When some portion of a debt is forgiven, income tax is imposed on any amount that a lender forgives.

H.R. 3648 would remove taxes from mortgage cancellation relief provided on a mortgage on a primary residence. The tax relief would apply only to the original purchase price, plus personal improvements of a primary residence, and would not cover any amount over the original purchase price if a loan has been refinanced with a “cash out” option.

H.R. 3648 was marked up to cost $2 billion over 10 years. Under the 110th Congress’ Pay As You Go rules, and in order to offset this loss in revenue, H.R. 3648 made changes to corporate estimated tax rates and to rules governing second homes that are converted into primary residences.

H.R. 3648 passed through the House Ways & Means Committee on September 26 by a unanimous voice vote and will now head to the full House for a vote.

Posted by Jeff at 10:58 AM | TrackBack

November 22, 2007

What Buyers Buy and Why

The NATIONAL ASSOCIATION OF REALTORS® recently released its 2007 NAR Profile of Home Buyers and Sellers. The Profile reports on results from a survey of consumers who recently purchased or sold a home (or both) that was conducted by NAR Research. Analysis of the results validate what many real estate professionals already know: people don’t just buy a house or a condo – they purchase a home.

To learn what NAR found out about buyers, their motivations, and what they're looking for in a home click here.

Posted by Jeff at 10:36 AM | TrackBack

November 8, 2007

Fed Chairman Proposes New Mortgage Guarantees

As Congress and the financial services industry struggle to cope with rising mortgage defaults and a deepening housing slump, Federal Reserve Chairman Ben Bernanke Wednesday proposed that the federal government guarantee so-called “jumbo” home loans worth up to $1 million.

Bernanke proposed that so-called “government sponsored entities” like Freddie Mac and Fannie Mae pay mortgage insurance fees to the federal government. These GSEs would then guarantee loans that are larger than the current $417,000 limit on so-called “conforming” mortgages

Read the entire story here.

Posted by Jeff at 7:28 PM | TrackBack

November 5, 2007

Five Tips to Sell Homes Quickly, for the Highest Valuation

Despite grim news in the media noting the pending home sale index has hit a record low, and it “hasn’t hit rock bottom yet”, savvy home sellers have discovered the secret to selling their homes.

Here are a few ways strategic thinkers prepare to sell their homes:

– Pre-Sale Home Inspections. These inspections allow sellers to identify and repair problems rather than lose money during the sale. Statistics show that for every $1 of identified repairs, the buyer would ask for double that in a price reduction. Paying $5,000 to repair a roof is far more enticing than losing $10,000 in the sale.

– Neighborhood Environmental Reports. These reports provide important information on known and potential contamination that may exist on or in the vicinity of a property. The seller could use this information to ensure buyers that the home is in an environmentally safe neighborhood.

– An overview of the neighborhood’s assets. A list of the neighborhood’s assets can help sellers market the area’s positive attributes along with those of the home. Nearby schools, parks, community pools or other features can add value for a buyer.

– Minor interior cosmetic enhancements. Upgrading or enhancing elements in a home gives potential buyers the feeling that they can move in and feel comfortable in the home right away. Besides making kitchen and bathroom upgrades and cleaning floors and windows, the entry way should be well lit, clean and uncluttered, as it’s the first room a potential buyer evaluates.

– Minor exterior cosmetic enhances, curb appeal. Establish the right first impression by making a home’s exterior more appealing. Make certain the lawn is green and mowed. Evaluate any stone walkways to be certain they’re even. Plant flowers to add color and vibrancy.

Posted by Jeff at 6:56 AM | TrackBack

October 21, 2007

Bankers Say More Mortgage Contraction Ahead

Members of the Mortgage Bankers Association meeting at their annual convention in Boston heard predictions from the organization’s chief economist that mortgage originations will fall 18 percent in 2008 and another 6 percent in 2009.

"We have not yet seen fully the impact of the credit shock to the U.S. and world economies, and the severity of that impact will depend on how long it takes for the markets to return to normal functioning and where credit spreads ultimately settle," MBA chief economist Doug Duncan told reporters in a preview of his Wednesday convention speech.

The MBA expects sales to hit bottom in the third quarter of next year, after existing-home sales decline a projected 12 percent this year to 5.72 million units sold. Existing-home sales are expected to decline a further 10 percent next year before growing by 5 percent in 2009.

The MBA forecasts a 2 percent home price decline both this year and next year, with prices flattening out in 2009.

With the current glut of homes for sale, "any significant increase in homebuilding is probably years off," Duncan said.

Posted by Jeff at 7:47 AM | TrackBack

October 18, 2007

How to Handle a Loan Modification

You’re suddenly notified of a higher monthly mortgage payment and you’re unable to afford it. Yet you already have a substantial down payment on your home and have been paying your mortgage on time for a few years, building up some equity.

You would think that would make you a good candidate for a loan modification, a change in the terms of your mortgage that would result in a payment you can afford. But you could be in for a surprise.

Lenders may actually be quicker to foreclose on your home than they would on that of your neighbor, who put no money down and owes more than the home is worth!

Why? Lenders would rather foreclose when they believe they can sell the home and recover out-of-pocket expenses, principal and interest and fees. If you have substantial equity in your home, the chances the lender can sell and recoup the entire mortgage balance are much greater.

Although it seems counterintuitive, you might have a better chance at negotiating a loan modification if you start letting your payments lapse. A missed loan payment can strengthen your case.

If you do seek a loan modification, expect to feel like you’re beating your head against a brick wall. But don’t give up. Too many people do. This is a problem that will not go away by itself. It will result in a sheriff’s sale, foreclosure and eviction.
Loan modification is “not a panacea. There’s just not a perfect solution to these problems. Typically, servicers will insist upon accrued interest.

This generally means that a modification will lower your monthly mortgage payment or let you skip a few payments, but the term of your loan will be extended. Bottom line: You’re paying off at least the same amount of debt and sometimes more.

Expect frustration

To get the process started, it’s always best to ask for a lender’s “loan mitigation department” or the “real estate owned (REO) department.” Still, getting a modification can prove frustrating.
I can tell you the process takes a few hours a day regularly — for anywhere from four to eight weeks. Some servicers have set up call centers in India.

Expect documents and records to get lost as they’re faxed back and forth. Get a supervisor’s name, and expect the process to repeat itself. It can be a tough task if you have to work for a living.
The key is to prepare in advance, and let your lender know up front, with complete documentation, what kind of payment you can afford.
This involves some homework before getting on the phone. Round up recent pay stubs, current or prior year W-2 forms, bank statements, property tax bills and insurance bills. If possible, obtain appraisal information for your home. Many property assessors’ offices will have data online or you can obtain an estimate of value on real estate Web sites, although those are often inaccurate.

Have you already tried unsuccessfully to sell your home? Have copies of your property listing agreement with the real estate agent. This way, you can demonstrate, for example, that you owe $200,000 on the mortgage and you haven’t received a single offer on your $180,000 listing price in three months.

Calculate your debt-to-income ratio in advance. This can be key to determining what kind of payment you can afford. A number of online calculators can help with this calculation.

Make a point of showing and documenting to people you communicate with that there’s no possibility I can afford the debts exceeding monthly income. I need to cut my payment to X dollars per month to make mortgage payments.

Credit dings

Always keep in mind that the lender and servicer don’t want to go through the expense of evicting you. They prefer the option makes them more money or costs the least. Present your solution with that in mind.

Remember that interest-rate reductions don’t show up on credit reports. But expect any payment modification to show up on your credit report and hurt your future efforts to obtain loans. Don’t expect a loan modification to necessarily get you out of debt either. A loan modification may be faster and more lucrative than attempting to sue your lender for predatory lending violations, if you think your jump in payment is abusive.

Simply because a mortgage is facing an interest rate reset doesn’t mean a homeowner was a victim of predatory lending. Those that buy mortgages look over the paperwork carefully for loans written in violation of predatory lending laws.

Posted by Jeff at 6:58 AM | TrackBack

October 4, 2007

Traders Bet That Home Prices Will Fall 10%

Traders are betting that home prices in 10 major cities will drop by 10 percent between mid-2007 and November 2011, according to an analysis of housing futures traded on the Chicago Mercantile Exchange.

The contracts have been trading since May 2006, but last month were modified so that traders could bet on prices as long as 60 months into the future. The trading, which has been fairly light so far, is based on expected movements in the S&P/Case-Shiller house price indexes.

Here are the expected four-year changes in average home prices for selected metro areas, based on the futures contracts:

All 10 metro areas: -10.2 percent
Chicago: -6.6
New York: -12.1
Washington, D.C.: -13.3
Boston: -13.8
Denver: -14.4
Los Angeles: -15.0
Las Vegas: -18.1
San Diego: -18.6
San Francisco: -25.9
Miami: -27.9

Source: The Wall Street Journal, James R. Hagerty (10/04/2007)

Posted by Jeff at 3:04 PM | TrackBack

September 21, 2007

The Dark Side of Good Home Staging

A nicely staged home can do wonders for turning casual lookers into serious buyers. For the seller, it's often a worthy investment. But according to a new report from the National Association of Exclusive Buyer Agents (NAEBA) a staged home could draw attention away from a home's negative features.

To read the entire article click here.

Posted by Jeff at 6:33 AM | TrackBack

September 20, 2007

Could An End Be In Sight For Market Downturn?

According to a report published in today's Sacramento Bee Sacramento's 2-year-old real estate downturn has a good chance of hitting bottom in 2008.

At the first of several fall forecasts that look ahead to next year, new home builders were told to expect months more of the slowed sales and heavy discounting that have marked 2007. The session came a day after the Federal Reserve made significant cuts in interest rates and triggered hopes among builders of improved consumer confidence.

"By and large, we're of the view that next year is not a recovering year," said Jim Goodchild, chief lending officer of Houston-based RBC Builder Finance, which loans money to home builders and land developers. "We're looking at next year as, finally, the year we bottom out."

To read the entire article click here.

Posted by Jeff at 7:17 AM | TrackBack

September 12, 2007

Housing Market Pushes Economy Downward

Ongoing weakness in the housing market will push the national economy to the brink of recession, but growth in other areas should put the country back on a slow road to recovery by 2009, according to an economic forecast released Wednesday.

To read the entire story click here.

Posted by Jeff at 6:04 AM | TrackBack

August 30, 2007

Home Sales Decrease 22.7 Percent in July

According to the California Association of Realtor who released information today home sales decreased 22.7 percent in July in California compared with the same period a year ago, while the median price of an existing home increased 3.2 percent.

“The decline in sales we experienced in July continues to be driven by both tighter underwriting standards since the start of the year and the adverse psychological impact of news and information regarding increases in foreclosures and the subprime situation,” said C.A.R. President Colleen Badagliacco. “Although the median price posted an increase statewide, there is a disparity between the lower-priced or entry-level markets where prices generally are soft at best and sales have declined sharply, and some higher priced markets that continue to experience price appreciation along with somewhat smaller decreases in sales.”

To read the entire article click here.

Posted by Jeff at 6:48 AM | TrackBack

August 16, 2007

July Home Sales Hit 11-year Low

It was two years ago this month that some housing experts began seeing the first signs that the Sacramento region's housing boom had begun to peak. "The bell has tolled," said Lyon Real Estate owner Mike Lyon in August 2005, declaring that the era of skyrocketing home values and sales may have hit its high-water mark.

Read the full story here:
http://www.sacbee.com/103/story/327973.html

Posted by Jeff at 7:09 AM | TrackBack

August 9, 2007

Inconvenient Truths...

Selling a house is often romanced and presented differently than it's reality, prettier seen from a distance than up close. Most people who have been through it have a thing or two they would have done differently had they known from the beginning all that would be required of them. In this newsletter I treat readers as mature adults able to, as Jack Nicholson famously put it, "handle the truth." Over the years I've observed certain behaviors that highly successful sellers engage in that others do not--I believe mostly linked to their understanding of and willingness to accept and manage the "inconvenient truths" of house selling. Now, more than ever, it is important for you to understand, and as Jack says "handle" the truth.

Here are a few examples to wet your appetite...

#1-There Is No Tomorrow, No Yesterday, There Is Only Today.
The inconvenient truth is buyers will only be responsive to a price that is solely based on present moments, not the recent past or the promise of tomorrow's market.

#2-Being Cheap Costs More.
The inconvenient truth is bargains are most often offered by those less capable, and in the end aren't really bargains at all and end up costing you more.

#3 Experience Matters (A Lot).
The inconvenient truth is not all agents are of equal value. Not even close. You're asking for trouble if you focus on ANYTHING other than ability to perform the required task at the highest and best level (see #3 above).

#4 If It's Meant To Be It's Up To Me.
The inconvenient truth is you can fight, resist, or ignore your agent's advice and in spite of the agent performing their job perfectly your home can take longer to sell or not sell at all.

There is great temptation to shop for an advisor who give you advice you like and agree with. This is the temptation that virtually guarantees frustrating failure. Remember, unwelcome advice from a worthy voice is often the very advice you should follow.

Posted by Jeff at 9:45 AM | Comments (0) | TrackBack

April 29, 2007

Forecloser Filings Rise 47%

Home speculators hurting across country, especially in desert boomtown.

According to the Assocaiated Press many investors who missed the early stages of the "flipping" craze are now in deep trouble.

Read the entire article here.

Posted by Jeff at 7:03 PM | Comments (0) | TrackBack

January 4, 2007

Real estate predictions for 2007

The beginning of the year brings forecasts for the housing market.

Businessweek.com predicts in their article titled How Bad Will the 2007 Property Market Be?

MarketWatch.com shares it's predictions here: This week's Real Estate stories

The National Association of Home Builders reports that an upswing in November new home sales and buyer demand may point to an increase in sales activity in 2007.

How will the rental market be affected? The Wall Street Journal reports that Renters Gloat Over Housing Slump

Posted by Jeff at 7:52 PM | Comments (0) | TrackBack

Real estate predictions for 2007

The beginning of the year brings forecasts for the housing market.

Businessweek.com predicts in their article titled How Bad Will the 2007 Property Market Be?

MarketWatch.com shares it's predictions here: This week's Real Estate stories

The National Association of Home Builders reports that an upswing in November new home sales and buyer demand may point to an increase in sales activity in 2007.

How will the rental market be affected? The Wall Street Journal reports that Renters Gloat Over Housing Slump

Posted by Jeff at 7:52 PM | Comments (0) | TrackBack

November 19, 2006

10 Tips on Choosing A Neighborhood

=============================================================
10 Tips on Choosing A Neighborhood

© Jeff Hoffman- All Rights reserved
=============================================================
Where you live is as important as the house you live in.

Tip #1: Commute: Do I need a quick commute to work? Keep in mind short commutes limit your neighborhood options.

Tip #2: My personality: Do I prefer country, suburban or urban living?

Tip #3: Family: Is a certain school district important to me? Do I need to live near my elderly parents?

Tip #4: Downtime: Do I want to live close to my church or temple or have a short commute to night school?

Tip #5: Future zoning and development: Is the park behind my house going to be developed in the future? Does this small town have plans to build a mega-shopping mall?

Tip #6: Neighborhood age: What will a new neighborhood look like in 10 years? Am I satisfied with an older neighborhood, knowing it may not change much?

Tip #7: Time of day: Does the neighborhood feel the same at night as it does during the day? Is weekend traffic heavier than during the weekday?

Tip #8: Extra costs: Can I afford the county or city taxes or any homeowners' association fees?

Tip #9: Homeowners' Associations: What are the homeowners' association rules? Are they good for protecting home values?

Tip #10: Neighborhood investment: Have the homes in this neighborhood held or increased in value?

Using these ten tips as a guide will help you avoid the mistake of buying wrong home for the wrong reasons.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

Want the inside secrets of saving money when you buy your house or condo? Request a free copy of my new Report titled "8 Secrets For Saving Thousands When Finding, Buying and Financing Your Next Home"A Helpful Guide For Buying The Right Home, At The Right Price, And Getting The Right Financing.

This well-written well-researched consumer Report gives you practical, step-by-step advice and tips on how to avoid the traps and pitfalls that so many home buyers routinely make when buying their home. Order your FREE copy by clicking here.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

Posted by Jeff at 7:12 AM | Comments (0) | TrackBack

November 9, 2006

Delinquency Rate Soars on Riskiest Loans

Residential loans to the riskiest borrowers are sinking into delinquency 50 percent faster in 2006 than last year, according to UBS Securities.

UBS, one of the top 10 underwriters of mortgage bonds, says 2006 subprime loans that are delinquent more than 60 days rose to 2.4 percent after six months, compared with 1.6 percent for loans originated last year.

Subprime mortgage bonds, sold on Wall Street as "home-equity asset-backed securities," have nearly doubled since 2002 to $565 billion outstanding.

Second-lien loans and mortgages with a high loan-to-value level also are deteriorating faster this year than they did last year, according to the analysts.

Source: Reuters News, Al Yoon (11/08/2006)

Posted by Jeff at 6:16 PM | Comments (0) | TrackBack

October 28, 2006

Surplus Homes Help Keep Area Rental Rates Low

©Sacramento Bee, 2006

Sacramento-area renters continue to pay some of California's slowest-rising rents, even as the monthly payments have risen sharply the past year in most of the state's other major cities, according to an apartment industry researcher.

The reason: more supply than demand in a Sacramento region that built thousands of new apartments in recent years. The area's 94.2 percent occupancy rate -- barely up from 93.9 percent a year ago -- is the lowest for all of California's 23 largest metro areas, according to Novato-based RealFacts, which tracks trends in the apartment industry.

Industry experts also report a growing surge in single-family homes being rented as owners tire of trying to sell them in a sluggish housing market. That trend has actually led to lower rents in some cases and is likely to play a significant role in keeping apartment occupancy rates lower.

"I've actually seen rents go down," said Sheri Lutrrell of Sacramento-based Pacifica Management, which leases houses. "Even my real strong markets like Gold River, I'm lowering them $200 or $300."

Janet Regan, a broker with Citrus Heights-based Horizon Properties and president of the Sacramento chapter of the National Association of Residential Property Managers, said some home sellers are giving up.

"We use to have all these different reasons why people put up their houses for rent. Now it's, 'I can't sell my house,' " she said. "These are people who have moved to other cities and other states. They're stressing."

According to RealFacts, the region's average monthly rent at apartment communities was $948 in July, August and September, a $24 increase from the same time last year. Monthly rent averaged $710 in Yuba and Sutter counties. The highest rents for the 378 large area apartment communities surveyed by RealFacts was $1,250 in Davis and $1,169 in Folsom.

Statewide, rents average $1,339 a month.

The combination of supply and demand factors is pushing the region toward a fourth year of slow-rising rents, even though analysts have maintained through much of 2006 that the trend is nearing its end.

Now, Barbara Lemaster of Sacramento-based M&M Property Management, one of the region's largest apartment managers, believes the trend to slow-rising rents may end after the winter months.

"I have clients who live in the Bay Area and say rents have gone up. I haven't seen it happen yet," she said.

Rents have risen just 2.6 percent the past year in El Dorado, Placer, Sacramento and Yolo counties, and 1.3 percent in Yuba and Sutter counties, RealFacts reported.

That compares with a 10.4 percent rise in San Jose, 7.5 percent in the overall Bay Area and 7.4 percent in Los Angeles and Long Beach. Rents also have risen 6 percent or more in Bakersfield and Riverside-San Bernardino as more residents compete for fewer apartments.

Data for Amador and Nevada counties were not available.

"Sacramento definitely has lagged, particularly when you compare it to the Bay Area," said RealFacts spokesman Chris Bates.

An estimated 35 percent of households in the capital region rent.

Posted by Jeff at 7:01 AM | Comments (0) | TrackBack

October 25, 2006

Default Notices on the Rise

©Sacramento Bee, 2006

The number of homeowners on track to lose their homes after missing at least two mortgage payments continues a yearlong rise across California and much of the capital region, new pre-foreclosure statistics indicate.

Notices of default in July, August and September -- the first indication that homeowners are having trouble paying their mortgages -- more than doubled over the same time last year in most of the region's eight counties, according to La Jolla-based DataQuick Information Systems.

"There's always a certain amount of financial distress out there. But it's no longer being masked by home appreciation," said DataQuick analyst Andrew LePage.

While the numbers are up from historic lows of last year, they remain well below 1990s highs in all but Placer County. Placer County's 443 notices topped the county's previous record of 322 in the first quarter of 1996.

But DataQuick officials noted the county has more than doubled its numbers of homes since the early 1990s.

Sacramento County's 1,388 notices during this year's third quarter were more than 1,000 fewer than its previous 1997 quarterly record of 2,441.

Yolo County's 101 notices were 62 below its second-quarter 1998 peak of 163, while El Dorado County's 120 were below a quarterly 1992 high of 167.

Comparisons were not available for other area counties.

Statewide, DataQuick reported 26,705 notices sent by lenders to homeowners after missed payments in July, August and September, more than double the lows of the same time last year.

Traditionally, only 5 percent to 6 percent of default notices end up in foreclosure. But the percentage is growing with the state's housing downturn. DataQuick said 19 percent of California homeowners who found themselves in default earlier this year lost their homes to foreclosure during July, August and September.

"Most people still get out of it by selling the house, paying off the lender or somehow managing to get their payments current," LePage said. "Most people avoid foreclosure sales."

Posted by Jeff at 8:59 AM | Comments (0) | TrackBack

October 20, 2006

'07 Drop in Sales, Prices Predicted

©California Association of Realtors, 2006

LOS ANGELES (Oct. 18) – The rate of home price appreciation will post a modest decline next year following several years of steep increases, while the sales pace will decrease as the market stabilizes throughout 2007, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) "2007 California Housing Market Forecast" released today. The forecast will be presented this afternoon during the California REALTOR® EXPO 2006 (www.realtorexpo.org), running from Oct. 17 – 19 at the Long Beach Convention Center in Long Beach, Calif. The trade show attracts more than 12,000 attendees and is the largest state real estate trade show in the nation.

The median home price in California will decline 2 percent to $550,000 in 2007 compared with a projected median of $561,000 this year, while sales for 2007 are projected to decrease 7 percent to 447,500 units, compared with 481,200 units (projected) in 2006.

“The housing market clearly downshifted in 2006 from the record-setting sales and robust price gains of the last few years,” said C.A.R. President Vince Malta. “The residential real estate market in 2006 was characterized by a gap between buyer and seller expectations. Sellers sensed that the peak of the market was approaching, yet still hoped to obtain the highest possible prices. Buyers’ sense of urgency waned as the number of homes on the market grew and they took longer to identify and subsequently purchase a home.

“Although the 2007 sales decline is not expected to be as steep as what we experienced this year, the psychology of the market -- matching the differing expectations of sellers and buyers -- will continue to be a factor as REALTORS® help consumers navigate their way through a changing market.

“While we’re projecting a modest decline in the median price of a home, over the long term, residential real estate in California has been and will continue to be a solid investment. Since 1968, the long-term average price appreciation is 9.1 percent,” he said.

“While we recognized that the frenetic sales pace of the past four years could not continue indefinitely, the housing market in 2006 did not fare as well as we initially expected,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “The anticipated slowdown that began in October 2005 was heightened by dual natural disasters in the Gulf Coast, a significant drop in consumer confidence, rising energy and raw materials costs, and a series of Federal Reserve interest rate hikes that began in June 2004. Fixed-rate mortgages also hit and passed the psychological threshold of 6 percent, while adjustable rate mortgages passed 5 percent, ultimately causing a decline in affordability. Affordability concerns also will continue to constrain sales for many households in California throughout 2007, especially for first-time home buyers.

“Looking to 2007, we expect that some regions of the state, including the Central Valley, San Diego and Riverside/San Bernardino regions, will experience sales declines greater than the state as a whole,” she said. “That also holds true for several second-home markets, including the desert areas of Southern California and the Wine Country.”

Posted by Jeff at 7:08 AM | Comments (1) | TrackBack

October 19, 2006

Home Slump Deepens

©Sacramento Bee, 2006

Home prices are still falling -- and this time it doesn't matter where you live.

Three months after Sacramento, Placer and San Diego counties topped California for falling prices, the malaise has spread across the capital region and parts of the Bay Area and Southern California, new September sales figures show.

All eight Sacramento-area counties reported lower median sales prices in September compared with the same month in 2005, the first time declines have become so widespread since home sales prices began falling a year ago...

read the entire article here

Posted by Jeff at 6:41 AM | Comments (0) | TrackBack

September 25, 2006

Home Sales Fall Again

©Associated Press, 2006

Home Sales Fall Again

First year-over-year decline in more than 11 years...

The Associatied Press reported today that Sales of existing homes fell for the fifth consecutive month in August as the once-booming housing market slowed further.

The National Association of Realtors released figures showing existing home sales slipped by 0.5 percent to a seasonally adjusted annual rate of 6.30 million units.

The slowdown in sales was weighing on home prices, with the median price of an existing home sold in August dropping to $225,000, 1.7 percent below August 2005. It marked the first year-over-year price decline in more than 11 years.

Read the entire story here

~~
Jeff Hoffman is the President of Hoffman Realty Group, Inc. and has assisted thousands of sellers and buyers during his real estate career. He is the creator of a powerful home selling system designed for the home seller not the real estate agent. To learn more about this amazing program visit Smart Seller Listing Home Marketing System

Posted by Jeff at 8:27 AM | Comments (0) | TrackBack

August 7, 2006

The Secret to Selling Without Cutting Your Price

=============================================================
The Secret to Selling Without Cutting Your Price

It’s no secret that home prices are dropping. Seller’s across the valley are turning to their Realtors, desperately asking for help in coming up with ways to get buyers to take notice of their homes.

Because of the red-hot market of recent years many newer Realtors (maybe yours?) haven’t been exposed to a real estate market that needed a strategy that reached beyond a yard sign to find a buyer. That was then, this is now.

Fortunately I have a proven, battle-tested strategy to getting a home seen, shown, and sold...

That’s were the 2-1 Buydown fits in.

Never heard of it? It’s been around for decades.

Here’s how it works: Instead of slashing your price, promote your home with Buydown financing for your buyer. On a $525,000 home a 2-1 Buydown can save a buyer over $624 per month in the first year they own their home! And there’s more: If the buyer has good credit and a downpayment, the lender will qualify the buyer at the lower interest rate, allowing them to buy more home for what they’d be paying for a smaller home in less desirable area.

The next time your agent asks you to cut your price ask them to try offering a 2-1 Buydown. It could just be the trick that gets your home sold!

Posted by Jeff at 8:31 PM | Comments (0) | TrackBack

July 11, 2006

Selecting the Best Agent to Sell Your Home

=============================================================
How to choose the best real estate agent for the very important job of selling your home

There’s a lot of hype and misinformation out there, mostly offered up real estate agents themselves, about how to go about selecting your real estate professional.

For most people the sale of the family home is the largest financial transaction they’ll take part in during their lifetime. Every property, every seller, every buyer, and every financing technique can be unique. Yes there are commonalities, but, based on my experience, no two sales are ever exactly alike. Do a poor job selecting your real estate professional and the chance of loss is great, do a good job and the chance of loss is minimal (our Agent Selection Guide contains all the tools you’ll need to interview, select, and hire the best agent for your situation).

One of the best ways to see what an agent will do…is to look at what they’ve done…according to the National Association of Realtors 77% of all agents sell less than 4 homes and make less than $30,000 per year…half don’t make $20,000…when you’re hiring a real estate agent or company to market your home, make sure you hire an agent who has a proven track record of success because that’s the best way to know if they have the experience and financial resources to fully market your home to expose it to every possible buyer so that your home gets sold…that is a key point.

The reward for working with an experienced real estate agent who consistently sells a large number of homes each year is simple-- no more struggling to come up with marketing ideas, no more guessing about what will or won’t work…less stress, less exposure to liability, more customers, a shorter time on market, and a better home selling experience all the way around.

The Benefits of Selecting an Experienced Real Estate Agent

EFFICIENT and RESPONSIVE SERVICE
top agents typically employ expertly trained and efficient support staff which means they have MORE time for you and more time to do what you hired them to do -- sell

WORRY-FREE SALE
top agents are meticulous planners, highly systemized, every “i” is dotted, every “t” is crossed, more peace of mind for you so you can finally relax…

SHORTER SELLING TIMES
top agents spend more marketing and advertising dollars than lesser agents, creating more DEMAND for your home, resulting in a short selling times

MORE MONEY-MAKING OPPORTUNITIES
top agents are well schooled in negotiating contracts, often possessing secrets and tactics that get you from a negotiation to a sale more often

Follow this advice you will improve your chances of satisfaction and success when you sell your home.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

The Ultimate Guide to Worry-Free Home Selling

Want the inside secrets of selling your house or condo quickly? And for top dollar? Jeff Hoffman knows how to make that happen. For over 18 years Sacramento Valley home sellers have relied upon his tips for solid advice on all aspects of selling a home. Now '18 Notorious Home Selling Problems & How I Solved Them' gives you practical, step-by-step information, how to avoid the traps and pitfalls that so many home sellers routinely face when selling their homes. Check it out here.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

Posted by Jeff at 7:12 AM | Comments (0) | TrackBack

June 29, 2006

Area Home Values Ripe for a Fall

©Sacramento Bee, 2006

After a searing five-year housing boom that vaulted Sacramento-area home values to unprecedented levels, the capital region has become one of the nation's leading at-risk markets for falling home values, according to a leading national mortgage insurer.

Home prices in El Dorado, Placer, Sacramento and Yolo counties have a 58.5 percent chance of declining during the next two years, said Walnut Creek-based PMI Mortgage Insurance Co. That's up from 41.8 percent at the same time last year, PMI reported.

Read the entire article here.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

The Ultimate Guide to Worry-Free Home Selling

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

Posted by Jeff at 6:51 AM | Comments (0) | TrackBack

May 25, 2006

Concerns About Growing Agent Population

=============================================================
Concerns About Growing Agent Population

=============================================================
Home sales may have stalled across California, but that hasn't stopped more people from wanting in on the action.

The California Department of Real Estate reported Wednesday that the number of licensed real estate agents reached an all-time high of 495,000 in April. The state now boasts a licensed agent for every 52 adults, the department reported.

On May 11th new legislation was passed in the State Assembly to require more education for new agents prior to issuing a license. This is great news for consumers. The rising numbers of newly licensed agents has meant more poorly trained, inexperienced agents have been inserted into the marketplace. Consumers, anxious to save commission dollars when hiring an agent to sell their home have become increasingly aware of the shortcomings many of these agents have in the areas of experience, expertise, resources to market a home correctly, and the ability to negotiate on the client's behalf. There's a big difference between "the learning" and "the doing" and home sellers who've taken short cuts in hiring a newbie agent because they’re willing to “work on the cheap” are paying dearly for those mistakes now with the changes our market has undergone.

Request a copy my free Agent Selection Guide before you interview and hire an agent to sell your home. Included in the guide are 13 key questions you must have answers to before you hire an agent and 22 agent selection factors that cut through the hype and expose an agent's true level of experience to help you select an expert agent to sell your home. Order your copy here.

Read the entire article on the growing agent population and what's being done to address concerns.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

The Ultimate Guide to Worry-Free Home Selling

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

Posted by Jeff at 6:19 AM | Comments (0) | TrackBack

May 13, 2006

Tips for Coping with Rising Mortgage Payments

=============================================================
Tips for Coping with Rising Mortgage Payments

=============================================================
As interest rates drift upward, many home owners are faced with growing mortgage loan payments. Here are 4 excellent tips to help you cope with an increasing monthly payment

1) Think creatively on that home-equity line. Some borrowers are saving interest on a month-to-month basis by shuffling balances from their home-equity lines to credit cards offering zero-interest deals. This works, but only if the borrower is vigilant about reading the small print and shifting the money back at the right time.

2) If you've borrowed a lot on a home-equity line of credit, replace it with a fixed-rate second mortgage. You can lower your rate slightly, eliminate the chance that a rate rise will increase your costs, and set a fixed term so you're not paying for those home improvements forever.

3) Mortgage bankers who want customers back are offering home-equity credit lines with interest rates of prime plus zero or even below prime. They might get a borrower over the hump.

4) Borrowers who took out an option mortgage might consider using the option of making interest-only payments while they shop for a better loan. They won't be building equity, but they won't be hurting their credit score either. If you're buying a home and looking for a new loan, shop for a fixed-rate deal.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

The Ultimate Guide to Worry-Free Home Selling

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

Posted by Jeff at 6:07 AM | Comments (0) | TrackBack

May 2, 2006

The Emotions of Buying and Selling

=============================================================
The Emotional Effects of Simultaneously Buying and Selling

=============================================================
Selling a home, especially in today's shifting market, can leave sellers feeling a bit unnerved when they think about hanging the 'For Sale' sign. It's even more intense for bridging homeowners -- those who decide to simultaneously sell one home and buy another -- and as anyone who's ever done it can attest, the process can send even the savviest of homeowners into a whirlwind of exhilarating highs and frustrating lows

RealEstate.com recently surveyed 550 bridging homeowners (who had completed the process within the past five years) to better understand their unique challenges. The findings shed light on how emotionally taxing the process of selling and buying can be. Read the entire story here

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

The Ultimate Guide to Worry-Free Home Selling

Want the inside secrets of selling your house or condo quickly? And for top dollar? Jeff Hoffman knows how to make that happen. For over 17 years Sacramento Valley home sellers have relied upon his tips for solid advice on all aspects of selling a home. Now '18 Notorious Home Selling Problems & How I Solved Them' gives you practical, step-by-step information, how to avoid the traps and pitfalls that so many home sellers routinely face when selling their homes. Check it out here.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

Posted by Jeff at 5:37 PM | Comments (0) | TrackBack

March 1, 2006

Keys to Setting the Perfect Pricing

=============================================================
Keys to Setting the Perfect Pricing- by Jeff Hoffman

=============================================================
There’s an axiom in real estate that selling your home for top dollar revolves around the three “P’s”…Pricing, Promotion, and Presentation.

Of the three, pricing is the most confusing to the typical home seller.

I’ve put together for you a list of the 6 Keys to Perfect Pricing that any seller must be aware of, and follow, to be successful in selling their home on time, and for the most money possible. As an added bonus, I decided to add seven additional keys to perfect pricing, totaling thirteen in all, to make sure that every tip, trick and secret was made available to you to help you in your particular situation.

Here are the 13 Keys to Perfect Pricing…

Evaluate the Total Market. Do not rely solely upon neighborhood statistics. Consider supply and demand. Analyze data about the current and predicted market direction and factor this information into your pricing decision. Maybe you’re in a hot market where demand outstrips supply, and you can try for a higher price than you normally would if your time line will allow for the market to catch up to your above market asking price.

Compare “Apples to Apples.” If your property lacks something that’s important to many buyers—such as a garage—and other surrounding homes have a garage, this must be reflected in your price. Conversely, if your home has a feature that is substantially different than surrounding homes it could very well add to your price.

Let the Market Dictate the Price. Neither you nor your real estate professional should dictate price; the market does. Forget the subjective opinions and focus on substantiated objective factual data in arriving at your price.

What Terms Can You Offer? Price is often influenced by terms. If you can carry a second deed of trust or are willing to lease with an option to buy you can command more money for your home because you’ve created a market differentiation where previously there wasn’t one.

Remove Emotion From Your Pricing Decision. Perfect pricing is realized by factual data based upon market conditions which influence supply and demand. Your feelings and emotions about your home aren’t factors in the final price a buyer is willing to pay.

Don’t Price Your Home Based Upon Need. Don’t let the price of your new home dictate the list price of your current home. The amount of money you need has no relationship on the price you’ll sell your home for. A buyer doesn’t care that you are moving to a higher priced part of the country. Value is a not a function of what you have in your home, but what you get out of it.

Factor in Your Home’s Condition. If floors are scuffed and the place is cluttered, it will negatively affect pricing and your ability to sell. Buyer’s often dramatically discount price when they make offers on homes that need TLC.

Evaluate Recent Closed Sales Within the Last 60 Days. If there are few closings, look at the current pending sales in and around your neighborhood to determine the perfect range of value your home would be competitive within the market.

Consider Your Time Line. Assess the current market strength for they size and style of home you have before you set your asking price. Time is the biggest “lever” a seller has. Run out of it and there is only one solution, cutting your price.

Don’t Rely Upon a Refinance Appraisal to Set Your Price. The purpose of the appraisal often affects the outcome. Appraisals are typically done for many reasons including fire loss, divorce, insurance reassessment, taxation reassessment, replacement cost, and mortgage refinancing. None of these may relate directly to your need to sell. Your purpose is to establish market value not replacement value. Remember, market value is the value that would appeal to many people and result in a sale in a reasonable amount of time, value represents typically what one person might be willing to pay for a home, or in the case of an appraisal, what one person thinks is the value.

Don’t Choose Your Price Based Upon What You Paid For Your Home. There is no relationship between acquisition cost and current market value. If you received your home in an inheritance at no cost to you, you would certainly hope to sell it for current market value, not the price you paid which was zero. Conversely, if you paid $500,000 and today’s market reflects a price less than that, you still would sell your home for current market value, not what you paid for it.

Don’t Attempt to Build in Bargaining Room When You Set Your List Price. There’s a common belief amongst home sellers that all buyers will come in somewhat lower than the asking price. Therefore, they have to price their homes higher as sellers to work towards a negotiated price that is representative of market value. But in reality, bargaining room is often results in fewer showings and lower priced or no offers. This mentality often has the affect of causing a seller to overprice their home. Sellers don’t lose buyers as much in the negotiation phase as they do in the showing phase, because when you overprice your home, the buyers may not even see it, and if they don’t see it they won’t buy it.

Don’t Factor in Selling Costs When Setting Your List Price. Cost of sale has no bearing on market value. If you sold your home without paying real estate fees it adds profits to your net proceeds, just as paying fees would subtract from your net. In either case, what it costs to sell a home doesn’t add or subtract from it true market value, only the profits a seller realizes at closing.

Conclusion

Arriving at the perfect price for a home is both art and science. Follow the 13 Keys to Perfect Pricing and you’ll sell your home quicker, for top dollar, and without costly false starts and long delays.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

The Ultimate Guide to Worry-Free Home Selling

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

Posted by Jeff at 7:07 AM | Comments (0) | TrackBack

February 7, 2006

When To Walk Away From the Negotiating Table

=============================================================
When To Walk Away From the Negotiating Table- by Jeff Hoffman

=============================================================

The art of negotiating to a successful outcome is to keep your emotions out of negotiation. Doing so will dramatically increase your opportunity to arrive at a “win-win” outcome that gets the deal closed. As Kenny Rogers once sang “You’ve got to know when to hold em and know when to fold em…”

There are two and only two reasons to “fold em” and walk away from the negotiation table, here they are:

1. You are truly fed up and will not budge another inch and see no way to make the deal come together. You’ve counter offered, negotiated concessions, and tried to accommodate a number of buyer requests but can’t get a point where you get the thing or things you really truly need out of the sale to make it a good deal for you. If you’ve truly gone the “extra mile” in an attempt to satisfy the buyer’s needs and you still can’t get them to give you what you need, then throw in the towel and move on to other offers.

2. For effect. You really are willing to give some more, but you want the buyer to think you’ve made your last, best offer. As a tactic, walking away can get negotiations started again, and sometimes get you your price. Or, it can cost you the deal. There are no guarantees when negotiating real estate so be prepared for the outcome before you play your “bluff” hand. The effectiveness of this tactic depends greatly on;

• How good a poker player you are
• How motivated you are to sell
• How motivated the buyer is to buy
• How good your real estate agent is at playing the part and conveying the bluff

A Final Big Tip

Here’s one other tip that will make or save you money when you find yourself entering the negotiation; if you’re a buyer know what you want BEFORE you make your offer, and if you’re a seller, know what you need BEFORE the offer is tendered to you.

Sounds simple enough right? Few buyers and few sellers actually do this and it costs them valuable time and thousands of dollars when they find themselves in a negotiation. Timing is everything in a negotiation. Responding quickly to an offer or counter offer is a huge advantage because as I said in the opening, people tend to negotiate emotionally, and when emotions are high you can often use that emotion to your advantage if you’re properly prepared. As a seller, your chance to strike the highest price is right after the buyer tenders an offer because they’re excited and emotionally caught up in the moment, wait too long to respond and you’re giving them time to let logic creep in, eroding that valuable emotion, often costing you thousands of dollars. As a buyer, you can get a seller to concede price much more effectively when you respond quickly to their counter offer because they too are excited at the possibility of being done with the uncomfortable process of selling a home. Your quick response shows the seller you know what you want, and you don’t have to think twice about it. If you don’t get it you’re ready to move on to the next house, which is a very intimidating message to convey to the seller.

Decide early on what you want and what you need out of your negotiation. Doing so will all but eliminate the possibility of having to walk away from the negotiating table empty handed.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

The Ultimate Guide to Worry-Free Home Selling

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

Posted by Jeff at 5:41 AM | Comments (0) | TrackBack

January 30, 2006

How America's Buyers Buy Their Homes

=============================================================
How America's Buyers Buy Their Homes- by Jeff Hoffman

=============================================================

Technology is transforming how Americans buy and sell homes in unexpected ways, including how they work with real estate agents and brokers, according to one of the largest surveys of real estate consumers ever conducted. The study was released today by the National Association of Realtors®.

Nine out of 10 home buyers use a real estate agent in the search process, but use of the Internet to search for a home has risen dramatically over time, increasing from only 2 percent of buyers in 1995 to 77 percent in 2005; it was 74 percent in 2004. The next largest source of information for buyers is a yard sign, mentioned by 71 percent of buyers.

When asked where they first learned about the home purchased, 24 percent of buyers identified the Internet, up strongly from 15 percent in 2004 and only 2 percent in 1997. Although most buyers use an agent to complete the transaction, 36 first learn about the home they buy from a real estate agent and 15 percent from yard signs; five other categories were 7 percent or less.

The 2005 National Association of Realtors® Profile of Home Buyers and Sellers, based on more than 7,800 responses to a questionnaire mailed to a large national sample of consumers located through county deed records, is the latest in a series of surveys evaluating demographics, marketing and other characteristics of home buyers and sellers.

Read the entire article here.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

The Ultimate Guide to Worry-Free Home Selling

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

Posted by Jeff at 3:26 PM | Comments (0) | TrackBack

January 22, 2006

2006 California Housing Forecast

======================================================================

2006 California Housing Forecast

- by Jeff Hoffman

© Jeff Hoffman- All Rights reserved
======================================================================
The market and economic conditions that gave rise to an outstanding 2005 performance will largely hold steady and contribute to another very good year in 2006, so says Robert A. Kleinhenz, cheif economist for the California Association of Realtors in this month's Special Housing Forcast Report within CAR magazine.

These conditions include:

• Steady but moderate economic growth accompanied by moderate growth in the labor market and low inflation.
• Rising but still very favorable interest rates along with innovations in real estate finance.
• Current and long-run demand forces continuing to encounter supply constraints.

Market Forces at Work

Current market conditions may be best explained by the unsold inventory index (the ratio of listings to sales. According to Kleinhenz "since the start of this decade, the unsold inventory index has never exceeded four months, and actually averaged less than three months from 2002 through 2004. This contributed to the torrid 20 percent average annual price appreciation that prevailed during that time. With the index improving to just over three months in 2005, increases in the statewide median price were more tempered at a mere 16 percent annually.

For 2006, inventories should remain in the same range as in 2005, but could easily head up if potential sellers decide they want to cash out and try to test the market. Still, inventory levels should remain low enough to contribute to further price appreciation in 2006."

In summary CAR is predicting a "cautiously optimistic" outlook for 2006. This outlook is based upon the prediction that the market will continue to be buoyed by repeat homebuyers using equity gains to trade up to or buy a second home. The market has yet to show signs of this as we approach the end of January, perhaps by mid to late March the writing will be on the wall for what kind of year we can expect.

Follow this link to read the entire article

~~
Jeff Hoffman is the President of Hoffman Realty Group, Inc. and has assisted in over 100 relocation transactions during his real estate career. He is the creator of a powerful home selling system designed for the home seller not the real estate agent. To learn more about his Smart Seller Home Selling System visit
www.SmartSellerListing.com

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
"Finally! A Quick and Easy Way For YOU to sell your home ON TIME, for TOP DOLLAR, eliminating the frustration and stress many sellers routinely face...

Click Here=> NEW FREE Book "18 Notorious Homes Selling Problems & How I Solved Them"-

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

** Attn Ezine editors / Site owners **
Feel free to reprint this article in its entirety in your
ezine, blog, autoresponder, or on your site so long as you
leave all links in place, do not modify the content and
include our resource box as listed above.
If you do use the material please send us a note so we can take a look. Thanks.

Posted by Jeff at 1:30 PM | Comments (0) | TrackBack

January 13, 2006

The Five Simple Elements to Selling Any Home in Any Market

=============================================================
The Five Simple Elements to Selling Any Home in Any Market- by Jeff Hoffman

You want to sell your house. You want to sell it on time for top dollar. So how do you do it?

There are five simple elements to selling any home in any market. Pay attention to all five and you’ll quickly have a sale for a fair price.

Five Elements to Selling a Home

1. Price
2. Location
3. Exposure
4. Appearance
5. Time

Price It Right, and Buyers Will Appear
Since most home buyers still comparison shop today, it’s important that your home be priced competitively to other recently sold homes that are similar in the size, amenities and location of your home. To receive the most money in the shortest time, you must price at within the market value range of comparable properties.

The sold properties represent the most accurate determination of market value. These are the homes that have actually come into the market, found a buyer, and have sold. You must rely upon market facts, and not the personal opinion you or your agent has.

There is a saying among real estate experts that goes like this: The market may be up or down, but it never is wrong.

Of course, the strength or weakness of your local real estate market will influence your pricing strategy. If you happen to be in a strong seller’s market, and you have a long enough time horizon, you can sometimes get away with overpricing your home, and within a r