Looking Forward

4 CNY Housing Issues to Watch in 2013

What does 2013 have in store for the CNY Housing Market? With marked gains in 2012 we expect the housing market to continue to gain momentum in 2013. Here are 4 areas we will be watching very closely.

·        Inventory: Onondaga County is holding steady at a 5 month supply of homes which is below what the National Association of Realtors believes is a balanced market. With this slight under supply will prices begin to rise?

·        Will rising prices spur demand: Will more buyers find the urgency to act quickly due to rising prices?

·        Mortgage Issues: Will the historically low rates continue to draw renters into the market? In many cases it is now cheaper to own and more and more renters are expected to make the jump into home ownership

·        The Broader CNY Economy: Of all commodities housing is the one most impacted by the local economy, will the CNY economy continue its steady path? If so housing will continue to surge.

One note to remember, housing prices are driven by hyper-local factors. The same home in Manlius has a very different value if it is picked up and moved to Clay. Contact one our professionals to determine what the trends are in your neighborhood.

5 Year Lows on Foreclosure Rates

Yesterday, RealtyTrac released its "U.S. Foreclosure Market Report" for both the third quarter of 2012 and for the month of September. According to the report, foreclosure rates keep declining as opposed to rising like so many analysts had predicted. In fact, the rates are down 7% from last month and 16% from September 2011. This is the lowest they have been since July 2007! This is also the ninth consecutive quarter in which rates have decreased.

Unfortunately, delayed foreclosures in some states may cause some issues. States where foreclosures must be approved by the court (Florida, Ohio, and New York to name a few) have reported large increases in foreclosure activity. States that have seen the largest drops in foreclosure activity though, typically in states that do not need court approval, include California, Texas, and Michigan.



Read the full RealtyTrac here.

Low Levels for Shadow Inventory

According to a recent CoreLogic report, shadow inventory has dropped to a three year low. But what is shadow inventory you might ask? CoreLogic defines the term as properties that are delinquent for at least 90 days, in the process of foreclosure, and properties that have finished the process of foreclosing but have yet to be placed on the market.

In fact, shadow inventory has decreased by 300,000 since April of last year!

Some of the cities that have had the largest decrease in shadow inventory are: Arizona (-37%), Nevada (-27.4%), and Minnesota (-18.1%).



Read the full CoreLogic report.

Don't Spluge on Kitchen Updates

Do you have an extra $111,000 lying around? Not many of us do; but that is the average estimate for a complete kitchen redo according to Remodeling magazine. What if you were thinking about doing a minor kitchen upgrade instead? The magazine estimates those projects to be around $20,000. So how are you to update one of the most popular gathering spaces in the home without breaking the bank? Here are a few low cost ideas to update your kitchen:

1- Paint  One of the easiest and least expensive ways to update your kitchen is to add a fresh coat of paint. Remember when painting to base your color off of elements in the room that are likely to not be changed anytime soon, such as your floor, appliances, and any tiling you may have.

2- Stainless Steel  If you find that you are in the need of new kitchen appliances and decor try to purchase stainless steel. This look is universally appealing.

3- Lighting  Lighting can make the world of difference in a kitchen. Think about adding recessed lighting to create a welcoming effect, under cabinet lights to help perform tasks, and a few decorative lights to create a mood.

4-Pseudo Island  If you have the space, adding an island to your kitchen is a great idea, but since we are trying to update your kitchen without spending a lot of money think about placing a stainless steel counter height table in the center of your room. Make sure the table features room for storage underneath to help free up counter space and other clutter in your kitchen.

5-Tile  Replace (or add) the tiling on the back splash. Think about using glass tiles in a vertical pattern for a creative look.

6-Open the Room  An open floor plan is very attractive to potential buyers, so think about taking part of a wall (or the entire wall) down between your kitchen an an adjoining room.



Read the full RealtorMag article

Great News For Home Affordability

Mortgage rates took yet another dip to reach new all-time record lows according to Freddie Mac.

Take a look at the latest average rates:
-30 year fixed rate: 3.84% This rate has reached a new historical low; the last record for  a 30 year fixed rate mortgage was set in February of this year at 3.87%
-15 year fixed rate: 3.07% This also had reached a historical low. The last record for a 15 year fixed rate mortgage was set in April of this year at 3.11%
-5 year adjustable rate: 2.85% Last year, these rates were at 3.47%
-1 year adjustable rate: 2.7% Again, this is a record low for this mortgage rate!



Read the full Freddie Mac Press Release

Bidding Wars: Don't Be Surprised!

It's the return of the bidding war! Markets across the Untied States are finding increased competition for the same home. But why the competitive bidding? The answer lies within the active inventory.

Many markets are seeing a decrease in the amount of homes for sale, thus leaving prospective buyers with plenty of competition for the same home. Analysts believe that this shortage in supply is caused by homeowners unwilling to list their home for a price that is less than what they had originally purchased it for. Some economists believe that the inventory is being held low because previously foreclosed homes have failed to be listed by Fannie Mae & Freddie Mac and banks that currently own them.



Courtesy of the Wall Street Journal



But why so many buyers now? Rent prices are currently on the rise while mortgage rates are still at record lows. According to the Wall Street Journal, the monthly mortgage payment on a median-priced home is lower than any time since the 1990s. It is still most certainly the time to buy.



Read the full Wall Street Journal article

The Tax Benefits of Home Ownership

According to NAR President Moe Veissi, "Our government encourages home ownership because it benefits families, communities, and our nation’s economy; home ownership is an investment in our collective futures.”  In fact, there are tax benefits that encourage buyers to become homeowners. These benefits include: tax credits for energy efficient projects, deductions for property taxes, and mortgage interest deductions.

The National Association of REALTORS consumer site is a great place for all home owners and potential homeowners to visit to browse all the tax benefits of home ownership.  An entire section is even dedicated to all the tax incentives!

New Commercial!

John Arquette Properties has a new commercial airing during  NBC's "Today Show"! Watch it live during the 7am-8am time slot. What do you think about it!?

New Records for Housing Affordability

The fourth quarter of 2011 proved that a buyer's purchasing power has never been better. The Housing Opportunity Index (HOI) showed that 75.9 percent of both new and existing homes sold within the fourth quarter were affordable to families that made the national medium income ($64,200 yearly).

Youngstown-Warren-Boardman, Ohio, Pa. ranked as the most affordable large housing market during the fourth quarter. 95.1 percent of all the homes sold were deemed affordable based on the area's medium income. Other highly affordable major markets were Lakeland-Winter Haven, Fla.; Harrisburg-Carlisle, Pa.; and Toledo, Ohio.

When it came to smaller housing markets,  Kokomo, Ind. was the most affordable with 99.2 percent of the homes being deemed affordable based on the area's medium income. Other affordable smaller housing markets included Fairbanks, Alaska; Lima, Ohio; and Rockford, Ill.

The least affordable major housing market was New York-White Plain-Wayne, N.Y.-N.J. Only 29 percent of the homes sold during the fourth quarter were considered affordable to those making the area's medium income. Some of the other top least affordable major housing markets were Honolulu; San Francisco-San Mateo-Redwood City, Calif.; and Los Angeles-Long Beach-Glendale, Calif.

The least affordable smaller housing market was Ocean City, NJ. where only 47.5 percent of homes were considered affordable based on the area's medium income. Other small housing markets that were considered least affordable were Laredo, Texas; Santa Cruz-Watsonville, Calif.; and Brownsville-Harlingen, Texas.



Read the full National Association of Home Builders article.

Relief for Homeowners

When the housing bubble burst a crisis ensued as many people lost their homes. But, a $26 billion dollar agreement may be able to offer some form of relief to both current and former homeowners.

This settlement will not only hold banks accountable for foreclosure abuses, but will hopefully end the downward trend in the real estate market. Almost one million people will be able to refinance their homes at a lower rate or will have their mortgage debt reduced. Another 750,000 people whose homes were foreclosed on between September 2008 and the end of last year will recieve $2,000 checks.


Read the full article.

Affordability Making a Blast From the Past

Not much (if anything) in 2012 is even close to the cost and affordability of goods and services from 1971; One thing that has found the same level of affordability as 41 years ago though are homes. In fact, homes are more affordable to purchase now then they were in 1971!

Home sales rose in the last month of 2011 according to the Housing Scorecard. Homeowners are also bringing home double the funds needed to purchase an average home.

According to Bob Nielsen, chairman of the National Association of Home Builders, "With interest rates at historically low levels and markets across the country beginning to improve, homeownership is within reach of more households."  In fact, the Natioanl Association of Home Builders reports that there are 76 imporoving markets for the month, a 53% increase form last month.



Read the full Housing Predictor article.

Moving Right Along

According to an Atlas Lines Migration Pattern Study, Americans are making the move to the East Coast and leaving the Rust Belt states behind.

Some of the top outbound states for moves were: Ohio, Nebraska, Louisiana, Delaware, and Hawaii.
Washington D.C. had the highest percentage of inbound moves for the fifth year in a row.

Some of the other top inbound states for moves were: Virginia, Rhode Island, North Dakota, and North Carolina.

Most western and southeastern states have stayed fairly balanced when it comes to outbound and inbound moves. Atlas also reports that the summer is the most popular time to move.



Read the full Atlas Van Lines study.

Keeping Rates Low

2011 saw record low mortgage interest rates, but will they last?

According to Freddie Mac, interest rates on 30-year mortgages will begin to inch up but stay considerably low (4.5% in 2012 and 5.4% in 2013). The Federal Reserve also promises to keep rates low this year.

If you didn't take advantage fo the historically low interest rates of 2011 don't fret over the slight rate increases that will occur in 2012. You will still be getting a considerably low interest rate this year compared to the interest rates from the past. For example, in 1981 and 1982 the rates for a 30-year mortgage were at 16 percent! In 2000, rates lingered near 8 percent.



Check out the full Los Angeles Times article.