AndraBrewer.com

Is Housing as Cheap as It’ll Ever Get?

Andra Brewer — Tue, 08 May 2012 13:57:03 +0000

Is Housing as Cheap as It’ll Ever Get?

DAILY REAL ESTATE NEWS | THURSDAY, MAY 03, 2012

Home buyers who want a bargain may want to act now because the housing market is in the midst of a turnaround, economists say.

Home prices have fallen and mortgage rates are hovering near record lows, pushing home affordability for the average family to record highs. Meanwhile, rents have been on the rise, making owning a home cheaper than renting in most areas of the country, according to recent surveys.

But the housing deals aren’t expected to stick around much longer.

An improving job market, a decrease in the number of home owners falling behind on their mortgage, and an anticipated improvement in access to mortgages is expected to help home prices start bouncing back by next year, economists say.

Investors eyeing profits in rentals also have been snapping up bank-owned properties, which Clear Capital’s Alex Villacorte attributes as helping to lead to an increase in prices on foreclosed properties. This “could have a significant impact on the market overall in terms of providing a rising floor to home values,” Villacorte told CNNMoney.

Some areas are already seeing prices rise. In Phoenix, housing prices have already increased 8.4 percent during the three months ending April 30, and Miami saw prices bump up 4.6 percent quarter over quarter, according to Clear Capital data.

“Stuff I was selling six months ago for $60,000 to $80,000 is now $90,000 to $110,000,” Tanya Marchiol, founder of Team Investments in Phoenix, told CNNMoney.

Loan Rates, Demand Predictions

Buyers may want to act more quickly because mortgage rates are expected to tick up slightly by the end of the year. The increase is being sparked by greater demand, says Doug Lebda, CEO of LendingTree. He predicts 30-year fixed-rate mortgages will inch up to 4.5 percent by the end of the year, which is still low, however, by historical standards.

The Mortgage Bankers Association is also predicting a big leap in mortgage loans next year. For this year, MBA estimates that buyers will take out loans totaling about $415 billion, but by 2013 that number is expected to nearly double to $706 billion.

Source: “Buying a Home Won’t get Much Cheaper,” CNNMoney (May 3, 2012) and “Time To Trade The Lease For A Mortgage?” NPR (May 1, 2012)

Distressed sales. What are they? Do I want one? Where do I look?

Andra Brewer — Fri, 20 Apr 2012 20:40:25 +0000

Distressed properties

What is a distressed sale?

A distressed property usually is a pre-foreclosure, REO property or a HUD home. All these home have some sort of monetary obligation to meet and can be handled a number of ways. Time lines can be very lengthy and many times it will cause more of a disappointment than it’s worth. All properties under this criteria are in “As Is” condition. Before looking at these properties, make sure you are realistic about what you expect and your time line in closing.

Below is more details on each type of sale.

A Pre foreclosure, or short sale, is when the seller cannot make enough money on their home to pay the balance owed to the lenders. The seller makes an arrangement with the bank to accept less than they owe. This can be arranged a number of ways between the bank and seller. All short sales are different and all banks handle them differently. In general, the biggest headache of doing short sales is the timeline. I have had offers made to banks that have taken anywhere from a week or 4 months! Just to get a response. A lot of the prospective buyers lose interest or simply need to move before the process can complete. Most of the time, not always, the buyer may end up getting a good deal through a short sale, but it is never a guarantee and many never even see the closing table.

REO or “Real Estate Owned” is a home after it has been through the foreclosure process. It is a home owned by the bank. It is usually a little bit easier than a short sale. With any bank properties, it all depends on who the bank is. If they are local, you might have a smoother transaction since things are being done on a much smaller scale. If it is large bank, like Bank of America, expect a long turn around and usually a little bit of ridiculousness.

HUD homes are owned by the Government. These homes are all sold through the HUD site. All HUD homes are offered for sale at fair market value, based on a recent appraisal. The homes are available first to only owner occupants. If you buy a HUD as an owner occupant, you must occupy the home for 1 year. You can also only buy a HUD every 2 years, regardless or being Owner occupant or Investor.

If no bid as been accepted by HUD, on the 31^st day it is listed, Investors will be allowed to also bid.

There are also special financing options, specific to HUD homes. View HUD properties at www.hudhomestore.com Find one you like? Contact me to submit a bid for you!

Where to look for Distressed Properties online?

Most short sale and for properties are available online through the MLS system. Most sites you tend to find on your own or have to pay to see online are a waste of your time and money. Many will never actually become available. I recommend the following sites.

www.realtracs.com

www.hudhomestore.com

www.hometelosfirst.com

www.hudpemco.com

www.oforireo.com

How can I improve my credit score?

Andra Brewer — Thu, 05 Apr 2012 14:16:26 +0000

Q: I’m looking to apply for a mortgage in the near future. How can I improve my credit score? A: You’ve probably heard the routine answers of how to improve your credit score – pay your bills on time, keep your balances low, don’t apply for new credit when you already have plenty. Here are a few tips you might not be aware of: Dust off your oldest credit card. Credit history is important and the longer you have a card the better it looks to reporting agencies. What’s more, if you stop using your oldest card, issuers may stop updating them to credit bureaus. Don’t close unused credit card accounts. Canceling a card may actually lower your score. Don’t consolidate your accounts. Rather than shuffle your balances to a lower rate card, keep several small balances. Add an installment loan to your credit mix. A quick way to improve your score is to show you’re responsible with other types of loans, such as auto, personal and student loans. Rather than pay down your highest interest cards, pay down the ones closest to their max. As a rule of thumb, you should keep your balances at 30% or less of their max. If you need to shop for a personal loan, submit your applications within a two-week period. A cluster of credit inquires won’t be looked at unfavorably if they fall within a short period of time.

Source: The Buzz-Signature Title Services

Monthly Buzz

Andra Brewer — Fri, 16 Mar 2012 14:14:07 +0000

THE BUZZ

Spring historically marks a time when real estate activity increases. Activity is already positive. The National Association of Realtor’s (NAR) Pending Home Sales Index rose 8 percent over January of 2011 and 2 percent over December. The index is based on signed real estate contracts for existing single-family homes, condos and co-ops. NAR’s Chief Economist, Lawrence Yun, says this is a hopeful indicator going into the spring home-buying season. “Job gains, high affordability and rising rents are pushing the market into what appears to be a sustained housing recovery. If and when credit availability conditions return to normal, home sales will likely get a 15 percent boost.”

For homeowners who are underwater due to home values dropping, this is good news. It is also a sign that now is a good time to buy before prices rise.

JUST ASK Q: Is this home really for sale?

A: Not all sellers are motivated to sell. A motivated seller typically works with their agent to make a thorough analysis of local comparable listings as well as sales statistics for the last 12 to 15 months before they set their sales price. An unmotivated seller is often hoping for a qualified buyer who will pay cash and make a quick close. This type of seller is hoping for a buyer who doesn’t care about market research and will pay whatever the asking price is. In really hot markets, the unmotivated seller may just get lucky. But no seller wants to price their home so high it just sits on the market. As sellers, they not only want to price their home right, they’ll want to know what it will take to make it one of the first properties shown in their market niche. This is where a real estate agent’s expertise can help them position their house for high activity and, ultimately, a successful sale.

MY TOWN Spring begins on March 20th this year. That’s the day of the vernal equinox. This is one of two dates (the other occurring the first day of autumn) when the earth’s axis doesn’t tilt either towards or away from the sun, making the day and night each about twelve hours long. The name equinox itself comes from the Latin aequus (equal) and nox (night). Spring is a favorite season for many people, when the earth comes back to life after a long winter. Outdoor enthusiasts look forward to enjoying nature in warmer weather. It’s one of the best times to get out and garden, or start in on home improvement projects to increase the value and livability of your home. What do you look forward to most this spring?

When you hear “spring cleaning,” the first thing that comes to mind is probably the clutter in your garage or your home office. But how about cleaning up your computer? Free up disk space and improve its performance by following these tips. Whether you use a PC or a Mac, move those stray files on your desktop into Documents, Photos and Music folders. If you’re a PC user, look at your taskbar at the bottom right corner. It takes time for your computer to find and load all those icons, increasing the time it takes to boot up your computer. Right-click on the icons to close or delete the unnecessary ones. Remove any programs or files you don’t need. Videos especially use up a lot of space. Make sure you empty the Recycle Bin afterward. If you’re a PC user, you’ll need to use the Uninstall utility found in the Control Panel to remove a program. If you’re a PC user, defragment your hard drive (search for this in your computer’s Help). Over time, info is stored in fragments on your hard drive, slowing your computer’s performance. Performing a defrag reorganizes all this information. Macs don’t need this as much as PCs do, but you can find a number of free utilities too that will improve your hard drive’s performance by doing a web search. Use the keywords “mac spring cleaning” in your search. Finally, clear your browser cache. This will make browsing the web faster and clear up hard drive space. This function can be found in different menu locations in different browsers, so it’s best to do a web search for “clear browser cache” followed by “PC” or “Mac” and the type of browser you use (IE, Firefox, Safari, etc…).

Sources: Signature Title Monthly Buzz

Want to live on the most exclusive golf course in Tennessee?

Andra Brewer — Fri, 24 Feb 2012 18:29:37 +0000

http://1064thornbladedr.epropertysites.com/

The Golf Club of TN is one of Tennessee’s most exclusive courses. Now is your chance to own one of very few homes available in the gated, private community!

The Golf Club of Tennessee was founded in 1989 and designed by Tom Fazio. Find us on the web at http://www.thegolfcluboftn.com/

The Golf Club of Tennessee was established in order to provide dedicated golfers with an excellent course and quality facilities staffed to provide superior service and operated to enable its Members to play and enjoy golf as it should be played; without tee times, delays, or distractions, with the availability of quality caddies, in an exceptionally maintained environment of seclusion and exclusi…vity, amongst members that appreciate and befit the traditions and heritage of the game of golf.

The golf course opened for play in March, 1991 and received a runner-up award as Golf Digest’s Best New Private Course for 1991. Since that time, The Golf Club of Tennessee has hosted numerous local, state, and national amateur and pro-am events, while always providing enjoyable rounds of golf for Members and their guests. The Golf Club of Tennessee has assembled an exceptional group of Members, and the future both for the course and its membership is bright, indeed.

The Golf Club of Tennessee was established in order to provide dedicated golfers with an excellent course and quality facilities staffed to provide superior service and operated to enable its members to play and enjoy golf as it should be played; without tee times, delays, or distractions, with the availability of quality caddies, in an exceptionally maintained environment of seclusion and distinctiveness, amongst members that befit, appreciate, and support the unique experience that is The Golf Club of Tennessee.

The golf facilities include 18 holes of championship golf and a practice facility including a practice range, two short game areas, a practice putting green, and an indoor teaching room with state-of-the-art video teaching equipment.

The 31,000 square foot Clubhouse includes a lobby, a formal dining room, a mixed Grille, the Golf Shop, meeting rooms, a common living area, five Clubhouse guest suites, and locker rooms.

See links for virtual tour of this lovely home only 30 minutes from Nashville!

Home features 4 bedrooms, 7 bathrooms, over 4900 sq ft of living space on the 5th Fairway!

See link: http://1064thornbladedr.epropertysites.com/

Source: andrabrewer.com, realtracs.net, facebook.com/golfcluboftn

69 acre Horse Farm, 30 minutes from Nashville.

Andra Brewer — Tue, 21 Feb 2012 22:20:34 +0000

Take a virtual tour of this awesome farm featuring an indoor/outdoor arena. 16 stall barn and really cool rustic house all 30 minutes from Downtown Nashville.

http://755sharpethrd.epropertysites.com/

Housing Inventories Drop, List Prices Rise

Andra Brewer — Tue, 21 Feb 2012 22:18:55 +0000

Housing Inventories Drop, List Prices Rise

Daily Real Estate News | Tuesday, February 21, 2012

In a growing number of housing markets, sellers are facing less competition now compared to a year ago.

Inventory of for-sale homes has dropped by about 23 percent compared to this time last year, and fell by 6 percent alone from December 2011 to January 2012, according to Realtor.com data.

The age of the inventory is also declining, and is nearly 5 percent below levels last January.

The median age of for-sale housing inventory is lowest — 69 days or less — in Oakland, Calif.; Bakersfield, Calif.; Denver; Fresno, Calif.; Stockton-Lodi, Calif. and Phoexnis-Mesa, Ariz., according to January data from Realtor.com.

Meanwhile, as inventory is falling, the median list price has been on the rise: up nationally more than 3 percent year-over-year.

“Over the past year, an increasing number of markets have registered year-over-year increases in median list prices while fewer markets have experienced year-over-year list price declines,” a statement by Realtor.com notes.

The metro areas with the highest increases to median list prices year-over-year, from January 2011 to January 2012 are:

1. Miami, Fla.: 32.75%
Median list price (in January 2012): $265,500

2. Fort Myers-Cape Coral, Fla.: 21%
Median list price: $229,900

3. Punta Gorda, Fla.: 19%
Median list price: $179,000

4. West Palm Beach-Boca Raton, Fla: 18.6%
Median list price: $224,150

5. Boise City, Idaho: 18.15%
Median list price: $151,228

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

Predictions for the market in 2012

Andra Brewer — Thu, 29 Dec 2011 14:45:36 +0000

What’s in Store for Housing in 2012?

Daily Real Estate News | Wednesday, December 28, 2011

The worst for the housing market may finally be over, according to housing experts in a recent article in Kiplinger. After median home price have dropped nearly 40 percent nationwide, a rebound is taking shape -- although, housing experts say, the market may stay flat for awhile before gradually ticking up.

According to housing experts in a recent Kiplinger article, here are some predictions for the real estate market in the coming year:

Home prices stabilize: Mark Zandi, chief economist at Moody's Analytics, predicts that home prices nationwide may still drop another 3 to 5 percent in 2012, but the new year will most likely finally bring a leveling off of home prices before gains start to take shape in 2013. When markets do begin to stabilize in the new year, “price appreciation tends to spread unevenly, creating a lot of confusion about where the recovery is occurring and when,” David Stiff, chief economist at Fiserv Case-Shiller, told Kiplinger. “Even within a single city, more desirable neighborhoods will stabilize first, while prices in other neighborhoods may fall at a rapid pace.”

Housing affordability high: Housing affordability -- the ratio of median home prices to median family income -- will likely remain at record levels in 2012. Homes in many cities are “substantially undervalued,” the Kiplinger article notes. That may even lead to a mini bubble with double-digit spikes in prices, such as an increase of 10 to 15 percent in a given year in some markets, housing experts say.

Low mortgage rates: Helping to keep affordability high, low mortgage rates are expected to continue on in 2012 -- at least the first part of the year, economists predict. The 30-year fixed-rate mortgage, the most popular among home buyers, has been hovering under a 4-percent average the past few weeks, staying in record low territory. Rates are expected to stay between 4 to 5 percent in 2012, predicts Guy Cecala, publisher of Inside Mortgage Finance, an industry publication.

Sales increases: The National Association of REALTORS^® has already been showing a tick up in sales taking shape with increases in existing-home sales during the summer and early fall of 2011. High inventories of homes continue to flood the market but a drastic slowdown in new-home building the past three years is “gradually easing the surplus,” the Kiplinger article notes.

Foreclosures: Foreclosures remain the problem and still plague many markets. After a slowdown with lenders processing the paperwork, foreclosures have began to pick up once again. About 1.84 million home loans are 90 days or more delinquent and 2.17 million have finished the foreclosure process but aren’t up for sale yet, according to RealtyTrac data. Alex Villacorta, director of research and analytics at Clear Capital, told Kiplinger that he predicts regardless of the downward price pressure caused from foreclosures, overall home prices won’t fall as long as lenders bring additional foreclosures to the housing market at a steady pace.

Source: “What’s Ahead for Home Prices in 2012,” Kiplinger (January 2012)

Rentals expected to keep growing in 2012.

Andra Brewer — Thu, 29 Dec 2011 14:44:44 +0000

Rental Boom Takes Shape

Daily Real Estate News | Wednesday, December 28, 2011

The multifamily market continues to post gains.

"Rents are rising, vacancies are falling, household formations are growing and rental supply is limited," according to a recent report, “2012: The Year of the Landlord,” issued by Morgan Stanley. "We believe the demand for rental properties will continue to grow."

Vacancies of rental properties dropped to 9.8 percent in the third quarter of this year compared to 10.3 percent earlier this year.

Led by strong gains in multifamily housing, groundbreaking for new-housing market soared 9.3 percent in November. Construction of multifamily homes of at least two units increased 25.3 percent in November, the Commerce Department reported last week. Starts for structures with five or more units has increased more than 30 percent from October and is nearly double year-over-year levels, Reuters reports.

Rental costs are also on their way up, increasing 2.4 percent over last year compared with an increase of 0.6 percent in 2010, Reuters reports.

Source: “America Becoming a Nation of Renters,” Reuters (Dec. 27, 2011)

Home Energy Efficiency Tax Credits to Expire Dec. 31

Andra Brewer — Wed, 07 Dec 2011 16:53:41 +0000

Home Energy Efficiency Tax Credits to Expire Dec. 31

Daily Real Estate News | Wednesday, December 07, 2011

Home owners may be able to take advantage of several tax credits for energy efficiency home improvements from this year. But they need to hurry: The tax credits are set to expire Dec. 31, and Congress has yet to renew them for 2012. “Making efficiency improvements this year will lower home energy bills and improve home comfort for years to come, while also reducing 2011 federal income tax bills,” Kateri Callahan, president of the Alliance to Save Energy.

The allowance for the tax credits that home owners may be eligible for include: 10% of the cost of insulation and sealing materials, exterior doors, and certain types of energy efficient roofs. 10% of the cost, up to $200, of exterior windows or skylights. $300 for electric heat pump water heaters, electric heat pumps, central air conditioners, biomass stoves, and natural gas, propane, or oil water heaters. $50 for advanced main air circulating fans. $150 for natural gas, propane, oil furnace, or hot water boilers.

For more information about applying for these tax credits, visit the Alliance to Save Energy Web site.

Source: “Last Call for Energy Efficiency Homeowner Tax Credits,” RISMedia (Dec. 6, 2011)