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.

New Type of Investor in Today's Market

 

A new type of investor is emerging in today's real estate market. Gradually fading is the "all cash" investor or institution that has been buying up distressed properties as quickly as they came up for sale.  

 

Cash  investors played an important part of the housing recovery, erasing shadow inventory and driving prices upward. Now reports show that this investor, along with  the foreign investor is retreating.

 

Today, a more conservative and value oriented investor has emerged.  These value investors are  looking for nice homes in areas where the market is sustainable and they are thinking "long term investment".  As the housing recovery continues I believe that we will see more and more of this reliable type of investor.

 

Our Central Coast has always been an attractive place for future retirees and for those who are interested in purchasing a second home or investment property.   The beautiful coastline, mild weather and easy style of living continues to be a wonderful place to call home!

 

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 Enhancement Checklist for Sellers

 

 

After toughing it out through the recession, many homeowners are now ready to put their home on the market.

 

If that is you, here is a checklist to get your property ready for sale.

• Tidy Up

 

When a home is cluttered, a buyer cannot see the potential that the home has to offer.  Storing unnecessary items will help you get your home sold and often for a higher price. Remember "less is more".

• Clean Up

A clean home gives the impression that a home has been well cared for. Remember that paint in the can is worth $20 but up to $1000 on the wall!

 

• Patch Up

Minor repairs can distract potential buyers and become major stumbling blocks. Avoid this issue by taking care of those minor repairs. 

 

• The Finishing Touch

Make your home stand out by doing the little extras.  Remember that your home is competing with others.  Small details like a quality doormat at the entry helps set the stage for a great first impression.

 

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, or would like to receive a FREE complete Home Enhancement Checklist, 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.

First-Time Home Buyers Face Challenge

The desire to purchase a home remains strong among potential first-time home buyers as do some of the challenges they face when the decision is finally made to move forward.  Here are some challenges that first-time home buyers have to deal with.

 

• All Cash Offers - One of the most frustrating situations for the first-time homebuyer is the investor. Investors paying with all cash often snatch up homes that the first-time buyers are hoping to purchase.  Generally speaking, sellers will consider the "all cash" offer less risky and choose to take the investor's offer instead of a financed one.  Fortunately, there are still some sellers who actually prefer to sell to someone who will love their home as they do, but we find this situation less often.  

 

• Low Inventory - Sellers are not moving up to a "bigger and better"  home at the same pace that they have in the past.  This component of the market has caused a shortage of inventory, especially in the lower priced homes.

 

• Lending Conditions - The good news is that mortgage rates remain low at approximately 4.4 % for a 30-year fixed rate loan.  A mortgage loan today is not as hard to get as it was during the recession, however, there are continued strict lending rules which will continue to hamper first-time buyers entry into the market.  

 

Traditionally first-time home buyers have been the pillar of a strong housing market.  For the market to remain strong in this area, homes will need to be available and affordable.

 

My advice to the first-time home buyer who wants to buy now is this.  First, meet with a reputable lender in your area. Do not rely on internet qualification as obtaining a mortgage can be complicated.  Next, find a real estate agent who knows the market and has a proven track record.  A good agent will guide you through this challenging but not insurmountable journey.  And yes, it is worth it!

 

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.

 

 

The Truth About Home Appraisals

Ever wonder what the real truth is about home appraisals?  Here a few misconceptions shared by buyers, sellers, lenders and even real estate agents about home appraisals. 

 

The following are common myths about appraisals shared by David Bunton, president of The Appraisal Foundation.

 

1. Myth - A lender and an appraiser cannot communicate before, during or after the appraisal is complete.  

 

Fact:  Not only are lenders permitted to communicate with the lender, they must. Communication is essential for the appropriate exchange of information.

 

2. Myth - The appraiser sets the value of the home.  

 

Fact:  Appraisers do not set the value of the home, nor do they confirm a home's sales price.  Their role is to provide a credible opinion of value that reflects the current market.

 

3. Myth - Appraisers only rely on comparable sales and do not take into consideration the cost to build a home.

 

Fact:  Appraisers do need to take into consideration the cost to build a home, and at times, provide a cost approach to deliver a credible appraisal.  However, because cost does not always equal value, appraisers cannot only look at cost to build a home to provide an opinion of value.  They must perform research and analysis to determine what the marketplace is willing to pay.

 

If you would like to read Mr. Bunton's full article regarding common myths concerning real estate appraisals, go to Facebook.com/Nancy Puder Realtor or NancyPuder.com/blog.

 

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.