Home Prices Dip Slightly in June

Home prices dipped slightly in June but homeowners should not be alarmed as this is just part of the recovery process. The real estate market adjusts itself every 3 weeks and is affected by several other economic factors like job growth, wages and the amount of other competing homes on the market.

 

The good news is that this is definitely a great time to buy or sell real estate. VP and chief economist at C.A.R. Leslie Appleton-Young, commented that “Home prices are finally increasing at a healthier pace, and the smallest year-over-year price gain in more than two years suggests that prices are stabilizing...Last year’s frenzied market of multiple offers, which drove sales prices above listing prices, has tapered off as the sales-to-list price ratio has dropped to a more normal level at nearly 99 percent, which signals a return to a more balanced market.”

 

Here are some statistics you may find interesting..

 

• Statewide housing inventory edged slightly higher in June, with the available supply of existing, single-family detached homes for sale increasing from 3.6 months in May to 3.7 months in June. The index was 2.9 months in June 2013.  The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate.  A six- to seven-month supply is considered typical in a normal market.

• The statewide median number of days it took to sell a single-family home also rose in June, up from 31.6 days in May to 33.9 days in June and up from 27.8 days in June 2013. 

• Mortgage rates dipped in June, with the 30-year, fixed-mortgage interest rate averaging 4.16 percent, down from 4.19 percent in May but up from 4.07 percent in June 2013, according to Freddie Mac.  Adjustable-mortgage interest rates in June averaged 2.40 percent, down from 2.43 percent in May and down from 2.60 percent in June 2013.

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder & Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.

 

 

China Leads the Way in U.S. Real Estate

Chinese buyers have become the fastest growing segment in the real estate market, followed closely by the Canadian buyer.  Chinese buyers have also become the largest source of foreign cash in the U.S. real estate sales in the United States.

 

Over the past several years, American real-estate markets have been viewed alternately as a safe haven and a bargain amid concerns over geopolitical instability or unsustainable asset values abroad.

 

U.S. real-estate also continues to be popular thanks to the dollar’s weakness against some currencies, though the currency advantage has dimmed somewhat for Canadian buyers that had been particularly aggressive property buyers in the U.S. in 2011 and 2012. Some agents say that American higher education is also a top draw for some trophy-property buyers.

 

Steve Brown, president of the National Association of Realtors (NAR) said that “Foreign buyers are being enticed to U.S. real estate because of what they recognize as attractive prices, economic stability, and an incredible opportunity for investment in their future. "

 NAR estimates that 35% of Chinese buyers selected homes in California. Around 40% of Canadians bought homes in Florida, while 23% of Canadians bought in Arizona.

 

China was the largest source of transactions on a dollar basis, and it represents the fastest growing buyer segment. But Canada remained the largest share of clients. Canadians accounted for 19% of property buyers last year, down from 23% in the previous year. Chinese accounted for 16% of buyers, up from 12%. The NAR survey includes buyers from Taiwan and Hong Kong in that tally.

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder &Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com Nancy Puder Realtor and "like" her page to access other real estate related articles.

 

8 Reasons to Choose a New Home Instead of a Resale

There are several reasons to buy a brand new home when you are ready to purchase. Here are 8 top reasons to choose a new home over a resale.

 

1. Customization -  Even in a semi-custom home where options are limited, a homebuyer can frequently choose the type of flooring, colors, fixtures, appliances, etc., therefore, putting their own personal signature on the home.  In addition, if there are several homes in a subdivision, the buyer can handpick their lot.

 

2. Efficiency - Building codes have required higher energy-efficiency standards over the years.  In many cases, your utility costs will be lower because of energy efficient products in the home that are now government mandated.  As homes that meet code are being built, it's pretty clear that they are going to be more efficient.

 

In addition, newer homes tend to have a tighter-sealed building envelope, or the enclosed part of a structure, that helps prevent conditioned air — cool air in the summer, warm air in the winter — from escaping. Features that create this envelope include higher-efficiency insulation, doors and windows.

 

Owners of existing homes can always retrofit their property or buy higher-efficiency appliances, but doing so can be expensive.

 

3. Fewer repairs - The features of new homes should also hold up better than those of existing homes, which may have experienced years of wear and tear.

 

4.  Less maintenance - Today’s new homes are engineered specifically to minimize maintenance requirements. 

 

5. Warranty - Builders often agree to take care of the necessary repair work in a new home for at least the first year.  Some builders even offer a 2/10 warranty which provides limited coverage for up to ten years.

 

6 Fire safety - New homes often include fire-safety features that may not be in properties built years ago. For example all new homes are required to include hard-wired smoke detectors.  In addition, some homes are equipped with fire sprinklers and fire retardant materials. 

 

7. Concessions - Builders are accustomed to selling homes on a regular basis and have the experience and knowledge of how to transact a fair deal with the buyer.  This experience will often allow them to be flexible in areas where a private seller may not be able to.

 

8. Financing - Sometimes home buyers can take advantage of mortgage-financing perks available through their builder.

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder & Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.

 

 

Tips for Kitchen Remodel

Have you wanted to update your kitchen for a long time and are finally ready to get started? Be sure to read these tips first to be sure that some of your ideas have not become dated.

1.  Chef Stove - a stove with a flat griddle or area to place a searing pan or an extra burner ranks top choice. Even people who don't cook are attracted to a cool looking stove.

 

2.  Eco-Friendly features - Energy star and green certified appliances were among the most popular as people are becoming more environmentally conscious.

 

3.  Granite or Quartz Countertops - Granite still ranks most popular, but quartz is beginning to emerge as a top choice because it is stain resistant and doesn't burn as easily if a hot pan is set on it.

 

4.  Tile Backsplash - Tile is the number one choice for the backsplash in the kitchen  rather than other choices that are available. Many people consider the backsplash the "jewelry" of the room.  This is where you can add a pop of color if you choose or get a little creative.

5.  Flooring  - Hardwood is still the number one choice of flooring with tile coming in at a close second. 

6.  Stainless Steel - Stainless steel appliances continue to be the number one choice among buyers and homeowners when thinking about their dream kitchen.  

 

7.  Islands -  Islands are desirable but if you don't have adequate room for one, don't do it.  Having to squeeze around an island because the kitchen is not large enough to accommodate one will make you regret spending a big part of your budget on this item.

 

8.  Transitional Style - Transitional design has elements of the past, but presents them in an updated, fresh way.

 

9.  White Cabinetry- White or off-white cabinets continue to grow in popularity.  White kitchens look clean and un-fussy and continue to gain in popularity.

 

10. Shades of Grey - Although it is hard to go wrong with a white kitchen, grey tones have been very popular over the past couple of years.

 

Remodeling a kitchen can be exciting. The best advice I can give you is to keep these trends in mind when remodeling but be sure not to get carried away.  What might seem exciting and cool to you now, may not seem that way to a buyer purchasing your home in a few months or a few years.  You do not want to ask yourself down the road "What were we thinking?"

 

If you are thinking if selling or remodeling your home and would like a free consultation and perhaps a little direction before spending your hard earned money, call me at (805)710-2415. I always enjoy hearing from you!

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. at Nancy Puder & Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or Nancy@NancyPuder.com.  Go to Facebook.com/NancyPuderRealtor and "like" her page to access other real estate related articles.

Today's Home Buyer

Who is today's buyer? With the ever changing real estate market the question I am frequently asked is this question. 

 

 

 

Here are some national facts and stats regarding today's home buyer. 

 

• 66% of homebuyers today are married couples (this number is up since 2001).

• The median income for buyers is $83,300.

• The median home purchased was built in 1992 and was within 12 miles of their previous residence.

• The typical home purchase was 1900 square feet.

• 30% said that owning their own home was their primary reason for buying.

• More than half of buyers said that finding the right home was the most difficult step in the buying process.

• The typical buyer searched for 12 weeks and viewed 10 homes.

• The typical buyer was 42 years old.

• 3 out of 5 buyers, according to Realtor.com, said that they would go "over budget"  to have their children go to the school of their choice.

• 80% of homebuyers purchased a single family detached home.  Note: a detached home refers to a free-standing home as opposed to a condominium or PUD that shares a common wall.

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder &Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.

 

Home Values Reaching New Highs

After only 2.5 years from the end of the worst recession since the Great Depression, housing prices are steadily coming back.  Some housing markets are actually experiencing new highs in home prices indicating just how robust our housing recovery is.

 

Recent reports show in approximately 20 percent of the metro housing markets, the decline in home values is gradually being erased. In 60 of the over 300 areas covered by Zillow, it is reported that homes prices either already have or are expected to exceed pre-recession peaks in the next year.  These metro areas include San Jose, Dallas, Houston, Denver, Pittsburg, San Antonio & Austin.  

 

In the majority of metro areas, housing affordability remains strong, but in a handful of areas like San Francisco, San Diego, Los Angeles and San Jose, housing has become unaffordable.  Mortgage rates remain low which helps the affordability issue, but some potential homeowners may have to seek housing further away from the urban areas in order to be able to buy.


As buyers look further away from urban areas to purchase an affordable home, we may see prices decrease in these urban areas because the demand for those homes may weaken.

 

Overall, this is a good report for home sellers who are ready to put their home up for sale.  Buyers are looking and they are also buying in today's market.  A word of caution to sellers is be careful not to get ahead of the rise in home prices as buyers are still being careful not to pay what they perceive as too much for the property.

 

The expected increase of home prices in 2014 is 5-6 percent.  For example, if  your home is valued at $600,000 today, it may or may not be worth as much as $630,000-$636,000 this time next year.  Currently, low  mortgage rates are holding pretty steady, but they are expected to go up and that could slow things down again. 

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder &Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.

 

Boomerang Buyers Have Arrived

New on the scene is the "boomerang buyer".  The boomerang buyers are homeowners who either lost their home through foreclosure or sold under the terms of a short sale over the past several years. I believe that these buyers will continue to be a driving force in the housing market over the next few years.

Less strict guidelines for mortgages are allowing many homeowners who lost their home through a foreclosure or short sale to now be in a position to buy again.  Of course, there is certain criteria that a buyer will need to meet like re-establishing credit since the foreclosure or short sale and they may be required to make a larger down payment.

As a real estate professional, it is gratifying to be able to help these buyers purchase again after experiencing the sometimes devastating loss of their family home. 

As always, It is important to remember that nothing is as "black and white" as it seems.  Be sure to speak to a good lender to assess your own situation.  If you need a referral or would like a consultation, call me at (805)710-2415 or email Nancy@NancyPuder.com. I always enjoy hearing from you!
 

The latest information that I have received is that these are the waiting period for short sale or foreclosure.

• Freddie Mac - short sale 4 years, foreclosure 7 years

• Fannie Mae - short sale 2 years with 20 percent down payment, foreclosure 7 years

• VA - short sale or foreclosure - 3 years

• FHA - short sale or foreclosure - 1-3 years

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder & Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.