IS IT TIME TO SELL ? MAYBE.

  One of the consequences of the Real Estate downturn is many people have been forced to hold their properties longer then planned.  Now that our market is improving many owners are pondering whether to sell.  The reasons vary, retirement, downsizing, upsizing, etc. depending on household dynamics.  I have gleaned some data for you to use while thinking about moving to the next phase of homeownership.  At the top of the boom first quarter 2006 we were 39% overpriced leading to the crash.  Third quarter of 2012 we were 14% undervalued, and the third quarter of 2013 looks to be up 7% or only 7% undervalue.  This is showing good movement as we come out of this long downturn.  From May-July 2013 interest rose 1% generally a sign of consumer confidence in the market.  Yet rates are still historically low, affordability is strong, demand is high and supply is low.  The higher rates and rising prices have gotten buyers off the fence creating more sales.  Mortgage lenders are looking for purchase business as the refinance market slows, loan-value and debt-income ratios have eased.  This makes it easier for buyers to get financed of course not like the boom days that fueled the collapse.  The active listings on the market are down 13% from a year ago and days on market are down 28% to 54 days average.  Number of units sold in July was up 6.5% and 17% from July 2012.  The median sales price is up 13% from the year before, considering all these factors.   IS IT TIME TO SELL ?

New Year = Time to Declutter

• How to Get Rid of Stuff and Declutter Your Life

  You can get that warm, fuzzy holiday feeling and make a few bucks by responsibly ditching all the excess stuff you accumulate, particularly at this time of year. Read

Visit houselogic.com for more articles like this.

Copyright 2013 NATIONAL ASSOCIATION OF REALTORS®

CHANGE AND THE AUTUMN EQUINOX

The autumn equinox is always a time of change. Some parts of the country begin having the great colors of the change, we in the desert can look forward to non triple digit highs. The third quarter housing reports came out this week and they have good news for the industry and the country alike. Nationally the prices have risen 9.5% this is the biggest annual gain since January 2006 at 10.2%, the west had the largest gain at 16.3%. Home resales up 7.8% for August this is the highest monthly rise since May 2010 while we were in the midst of the stimulus. Inventory and market time are shrinking if nothing else were listed it would take 6.1 months to sell our inventory. One year ago this number was 8.2 months, average market time a year ago was 92 day and now is 70 days. First time buyers comprise 31% of the market and all cash purchases nearly one quarter. This is great data but we must look at the economy as a whole. Bank owned mortgages are at a 16 year low, many banks just do not want Real Estate investments. The lending standards have tightened since the collapse from the lax standard. Historically housing demand has fueled economic recovery and will require participation from the lending community. After the recessions of the mid 70s and early 80s home prices rose nearly 20% in the next 7 years. This downturn has been deeper and most likely will take longer to recover, but could be greater. The equinox and the third quarter reports are all pointing to changes blowing in. If you have been thinking about getting in, or back in the Real Estate market this could be a great time as the winds change direction. As always consult with a Real Estate and financial professional about the market.

Dog Days and Haboobs

As drove to Phoenix the other day I experianced something new. This started as a typical late summer dog day, clouds building on the horizon and crawling over the mountaintops like whipped cream on a sundae. The monsoon rain and wind came and went three times as I headed north, suddenly up ahead it appeared to be fog. I knew this could not be. But it seemed to be rolling across the interstate the way fog comes in from the ocean. As I came closer to it the color was a light tan not grey, it was dust and sand from the surrounding desert. It was not blowing the way dust storms do, it was hovering. As I drove it became thicker and darker this was something I had never experianced, yet my instincts told me to keep moving forward. Later I found out this was a small haboob or dust cloud. The heat of this dog day 112 and the monsoon wind patterns had created this phenomenon. I began pondering how our Real Estate market the past few years is much like this. We began seeing signs on the horizon much like monsoon clouds. Our market was very overheated and had wind patterns pushing in from other areas causing a large cloud to hover over the market. This haboob like storm has been new to us, it has been denser, more far reaching, and longer lasting than ever before in my career. Just like the cloud of sand I drove through this market will end also. It seemed I would never come out of the dust, just as sudden as it appeared it was gone. If I had not kept moving forward I could have been stuck in the storm. Do not allow yourself to become stuck keep moving forward with your life and plans. You may need to alter the plan as I had to alter my speed, but we will all come out the other side.

THE HEAT INDEX IS RISING

It's the end of July and things are heating up in our Real Estate Market. No it's not 2005 but those of us that have continued in the face of adversity are beginning to feel the rewards. I'm not talking about the elusive commission check only, but seeing people who had been priced out of the frenzied market able to step in now. With the great convergence of low interest rates and low prices the opportunities are boundless. Yes the search for a home can seem overwhelming since there are so many, most with distress of one kind or another. As a buyer you must have total trust in the team assisting you, lender, Realtor, inspector, and others. The process today is not easy with so many types of transactions available. Short sale is a trial of ones patience. It can be very humbling when you realize it does not matter who you are or how much cash you have, it will take time. I recently had a client buying a winter home that was a short sale, he had not purchased a home in over two decades. The process was confusing and irrating to him. After many weeks on a rollercoaster ride he has the home he wanted at the price he wished to pay. Foreclosed or REO properties have another set of challanges. Many of these properties have been empty a few monthes to over a year this is not good. The price point is very attractive yet condition gives one pause. Yes you can find a good REO home but be prepared to have an extended search. I am closing one next week with a young family that could not afford this home in the previous market. The home is move in condition, could use some updating but this can be done over time. With the low price and interest they will be able to do this soon and have a showplace. Do not be mislead todays market does have heat, it's all relative to your position.

SLOW MOVING TRAINS AND THE REAL ESTATE MARKET

As the freight train slowly made its way through town time seemed to slow down. It was

moving slow enough to read the graffiti on the boxcars and dream of the past. I was in a

long line of cars with a large SUV full of kids in front of me and a work truck behind. Next to

me was a carload of teens with the stereo blaring Hip Hop or Rap I'm not sure. I knew it was

going to be a wait as this train slowly rumbled by, the clickity clack sound was very meditative.

I placed my car in park and soon was drifting into memories of growing up in a small town on

a major train route between Chicago and Kansas City. I began thinking how simple life was

and how complicated it is now. If only we could return to those times. The sound of horns blaring snapped me back to see the train was gone and the SUV was moving.
Later that
afternoon those thoughts returned but I was not being lulled by the train sounds. My

family has always been in and around the building and Real Estate business so I have seen

many ups and downs. I began thinking about the times that I remember as simple and the

truth showed up. They may have been simpler yet also harder in some ways. No cell phones,

no Internet, selling a home was a long complicated procedure. To do business you had to always

be close by, I have negotiated contracts on the cell phone while standing on the Vegas Strip,

this is simpler than before. Suddenly a thought struck me about the Real Estate Market, we

remember 2000-2006 as a simpler time. We need to understand the way of business is

different today and not better or worse just different much like life when we were kids. If

we accept that the Market is on a course much like a train on tracks and will get to its

destination whether moving fast or slow our memories of this time will be fonder. Allow

yourself to meditate on the clickity clack of the slow moving Real Estate Market because it

will again be moving fast and you will not be able to read the graffiti.

TAXES, TAX CREDIT, AND LESSONS LEARNED

As the infamous Tax day nears many people are scrambling to finish on time. You would think we could learn from the past and make this a smoother process, yet it seems we are doomed to repeat the Tax scramble each year. The next deadline ticking down is the Homebuyers Tax Credit set to expire April 30,2010. You must have a property under contract by this date to be eligible for the Tax Credit. The Homebuyer has until June 30, 2010 to close the transaction. If you are wanting to take advantage of this Government Program you must focus your attention NOW. The weather is perfect for looking, call your REALTOR and go out ASAP. The convergence of high inventory, low interest, and the Tax Credit make this the perfect time to buy. Don't let this opportunity pass you by, it may never come around again.
My wish is that we have learned a lesson from the past couple years. Our countries economy is rooted in the Real Estate Industry and we must not allow it to get out of balance. Once we stabilize (and some areas are beginning) we are all responsible to call out bad practices. As we move forward please help us to help you by holding our feet to the fire if you see the past being repeated.