Recent Statistics Point to Real Estate Rebound

Recent Statistics Point to Real Estate Rebound

Numerous signals have showcased the potential fact that the real estate market is now on the rise.  There has been a swing in regional real estate market improvements across the United States along with a 15% rise in housing starts in September, an increase in builder confidence and a surge in mortgage lending applications (people applying for credit to purchase a home).

Land for sale located within the Great Plains and include Iowa, Louisiana, Texas, Wyoming, Nebraska and the Dakota’s with Bismarck ND are showing the greatest amount of strength and are expecting to be the strongest market w/in the United States this coming year. Many people are using Brooks Construction to build beautiful luxury homes. In fact, Bismarck expects to see 5.6% increase in appreciation according to most statisticians.

Alternate markets expected to see the highest gains in appreciation include Washington DC, Honolulu, Fargo, Pittsburgh, Boston and Harrisburg/Carlisle.

Although the majority of real estate markets are not seeing substantial gains in appreciation, the markets contained within the United States won’t see values fall at rates seen w/in the past 3 years.   Even though the housing recovery is limited to a hand full of markets, the fact that some areas are seeing appreciation is encouraging for those in alternate real estate markets throughout the country.  Some would say that appreciation will begin to trickle down as time progresses.

Nevada, inland areas of California, Oregon and Washington State round of the weakest markets currently within the United States with Bakersfield, California  being the weakest due to a high amount of foreclosures in 2011 and projected foreclosures in 2012.

Friday: The Best day to Place Your Home on the Market

Friday:  The Best day to Place Your Home on the Market

For the best chance of selling your home, sellers should publicly list it on Friday’s–this according to a Seattle-based brokerage Redfin.

Upon evaluating 1.2 milling listing in 16 large markets within the United States the past 21 months, Redfin found that the homes listed on Friday were 12% more likely to obtain a buyer for the home and sell within 90 days.  Homes placed on the market on Thursday or Friday on average sold close to the current list price:  94.4% in comparison to 93.9% when homes are placed on the public market for sale on Sunday or Monday.  In a nut shell, this is a $1,000 difference in sales price when comparing to a $200,000 home.

Homes are 18.8% more likely to be toured by potential buyers when listed on Friday.  The least likely homes to be toured were, of course, made public on Sunday or Monday.

The theory behind this is that home buyers tend to view homes on Saturdays and Sundays.  Homes placed onto the market on Friday’s are the freshest in the buyers and their Realtors minds when planning for weekend viewings.  Realtors and buyers tend to sort potential homes to view by days on market in order to the have the best chance of getting a potentially great buy before other potential buyers have a chance.

 

Attention Investors!! Rental Vacancy Rates Hovering Around 3%

Attention Investors!! Rental Vacancy Rates Hovering Around 3%

It is an opportune time to be purchasing investment property.  Rental vacancy rates are at historic lows with the current rental vacancy rate hovering just above 3%.   Also, monthly rental rates have increased 10% within the last 3 months due to the supply and demand curve shifting to the landlord side.  To add some more icing to the cake, home pricing and interest rates are at all time lows.

Do you have cash in a savings or retirement account Which is collecting returns of .75%-2%?  If so, convert your money into a tangible asset (an investment property) and obtain nearly a 10% return on your money (not to mention the future appreciation of your asset).

Questions?  Call me directly to discuss taking advantage of the current investment opportunities!

-Matt, 208-869-3469

**Graph provided by Park Place Property Management

BOISE LISTED WITHIN “TOP 10 PLACES TO LIVE”

BOISE LISTED WITHIN “TOP 10 PLACES TO LIVE”

Relocate America announced the top 100 places to live in the United States and our great city of Boise is listed at #8.

RelocateAmerica’s research dvision developed the top 100 places to live after reviewing extensive information on factors which are important within the community:  safety, recreaction, the health of the economy and housing.  The firm also acquired input from local residents, community leaders and business associates.

They are:

1. Austin, TX
2. Grand Rapids, MI
3. Boulder, CO
4. Raleigh, NC
5. Dallas, TX
6. Greenville, SC
7. Augusta, GA
8. Boise, ID
9. Omaha, NE
10. Oklahoma City, OK

View the entire list of the Top 100 Places to Live for 2011 at:

http://www.relocateamerica.com/2011/08/02/relocateamerica-announces-top-10-cities-for-2011/

$20,000 Short Sale Incentive offered by B of A

$20,000 Short Sale Incentive offered by B of A

Bank of America is now offering homeowners located in states with high foreclosure activity up to $20,000 at closing (yes, $20,000) to sell their home as a short sale rather than allowing the home linger within the foreclosure proceedings.

Short sales which qualify for the cash at closing much be submitted for approval to Bank of America prior to November 30, 2011.  The closing must occur prior to August 31, 2012 and the home must not have any offers submitted on it currently.

As most know, a short sale is when the bank or lien holder accepts an offer to purchase for less than what is owed against the home.

The Bank of America strategy which has a minimum “cash at closing” payout of $5,000 is a true incentive to homeowners struggling to make their payment and on the brink of losing their home to foreclosure.

The national average timeline for foreclosure proceedings is 318 days.  This said, B of A providing an incentive will help homeowners receive incentive to sell the home prior to it sitting vacant for months—if not years.  Some call it a relocation fee yet it’s basically a “bribe” to make certain that the home owner leaves the home in good condition.  Some would say that providing an incentive of 20K makes sense considering that the bank may need to pay $20,000 (or more) to fix the home up prior to selling.  You see, in many circumstances the home owner which feels “cheated” by the bank will take /stead appliances, fixtures and intentionally damage the home.

Wells Fargo and Chase have similar programs for short sales which they call “cash for keys”.  In fact, Wells Fargo offers up to $20,000 on eligible short sales which are left in tip-top condition.  Although not advertised, these types of incentives are available w/in states with lengthy foreclosure durations.

In a nut shell, banks are now getting creative in order to get the distressed homes “off the books” and get back to a new normal.

HOME LOAN INTEREST RATES HIT RECORD LOWS!

Amid increasing concerns over the economic stability of the world, the average interest rate for conventional fixed rate mortgages (3o year) decreased below 4% for the first time in recorded history.

Averaging 3.94% for a 30 year loan, the current interest rates make purchasing a home very worthwhile.  A year ago today rates averaged 4.27%.

The fixed rate mortgage for the term of 15 years also decreased to the lowest level in recorded history for the 6th consecutive week–averaging 3.26%–down 3.28% from a week ago and 3.72% from 1 year ago.

The adjustable rate mortgage averaged an interest rate of 2.96%–down from 3.02% as of the 1st of October.  A year ago today the adjustable rate mortgage was holding steady at 3.47%.

On the flip side, interest rates increased for the 1-year ARM loan due to the Federal Reserve building their coffers from the 400 billion short term Treasury securities which serve as a “benchmark” for these particular types of loans.  The 1-year treasury ARM currently sat at 2.95% this week yet still lower than last years rate of 3.4%.

Growing concerns over global recession has caused the decrease in home loan interest rates.  Fortunately, consumer spending increased by .2% within the month of August yet personal income decreased 0.1%–the 1st decline since 2009.
(Source: www.zippaloans.com).

Also read about: Instant Bad Credit Loan.