What February Looked like in Home Real Estate

Found a great article which I am quoting below on RIS Media below.  They do a great job of gathering information and putting it out there.  There are some interesting statistics below, but the main message is low inventory, rising prices, historically low interest rates, good time to buy:


February existing-home sales and prices affirm a healthy recovery is underway in the housing sector, according to the National Association of REALTORD®. Sales have been above year-ago levels for 20 consecutive months, while prices show 12 consecutive months of year-over-year price increases. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 0.8 percent to a seasonally adjusted annual rate of 4.98 million in February from an upwardly revised 4.94 million in January, and are 10.2 percent above the 4.52 million-unit level seen in February, 2012.

February sales were at the highest level since the tax credit period of November 2009.

Lawrence Yun, NAR chief economist says that conditions for continued housing improvement are at play.  "Job growth in the improving economy and pent-up demand are causing both home sales and rental leasing to rise.  Though home prices are rising much faster than rents, historically low mortgage rates are still making home purchases affordable,"  he says.  "The only headwinds are limited housing inventory which varies greatly around the country and credit conditions that remain too restrictive.

Total housing inventory at the end of February rose 9.6% to 1.94 million existing homes avialable for sale, which represents a 4.7 month supply at the current sales pace, up from 4.3 months in January, which was the lowest supply since May, 2005.  Listed inventory is 19.2 % below a year ago when there was a 6.4 month supply. 

The national median existing home price for all housing types was $173,600 in February, up 11.6% from Febraury, 2012.  The last time there were 12 consecutive months of year-over-year price increases was from June, 2005, to May, 2006.  The February gain is the strongest since November, 2005, when it was 12.9% above a year earlier. 

"A strong rise in home values is contributing to housing wealth recovery, which has risen by $1.4 trillion in the past year and looks to top that increase this year." Yun said.  "The extra consumer spending arising from growth in housing wealth is expected to be $70 billion to $110 billion this year. 

Distressed homes-foreclosures and short sales--acounted for 25% of February sales, up from 23% in January but down from 34% in February, 2012.  Fifteen percent of February sales were foreclosures, and 10% were short sales.  Foreclosures sold for an average discount of 18% below market value in February, while short sales were discounted 15%. 

Accoding to Freddie Mac, the national average commitment rate for a 30-year, conventional fixed-rate mortgage rose to 3.53% in Feburary from 3.41% in January;  it was 3.89% in Feburary 2012.
NAR President Gary Thomas, says interest rates remain extraordinarily low.  "In the history of mortgage interest rates since 1971, the 30-year fixed rate has been below 4% in only 15 months, and they have all been in the past 15 months," he sayd.  "Even with rising home prices, affordability remains historically favorable because home prices over-corrected during the downturn.  This means there is still great value for buyers in the current market."

The median time on market for all homes was 74 days in  February, which is 24% below 97 days in February, 2012.  Short sales were on the market for a median of 101 days, while foreclosures typically sold in 52 days and non-distressed home took 77 days.  One out of three homes sold in February was on the market for less than a month.

First-time buyers account for 30% of puchases in February, unchagned from January; they were 32% in February 2012.

All-cash sales were at 32% of transactions in February, up from 28% in January;  they were 33% in February 2012.  investors, who account for most cash sales, pruchased 22% of homes in February, up from 19% in January; they were 23% in February 2012. 

What is UNPOPULAR with Today's Buyers?

Just read a great article about 4 things that turn buyers away from a house.  Then the people reading it could add their two cents and I picked up a pretty good list.  Not sure I agree with all of them, but some of them.

1.  POPCORN CEILINGS, dated, dirty, possibly has asbestos.  Bad thing to remove is they need scraping and are dusty, dusty to do.  If they've been painted over, even worse to get rid of.  One person said you can get thin sheetrock and cover them and then not have the dust and the asbestos abatement problem.  I LIKE THAT IDEA.  May check into that for my remaining 2 rooms that still have popcorn.  Not sure I could go thru another scape and dust job.

2.  Shiny, brass light fixtures.  Don't spend money to replace them, just paint them.  One can of paint might cover several fixtures.

3.  Hollywood light strips in bathrooms.  I'm sorry, I love mine.  Wouldn't want a bathroom without them for me. 

4.  Carpeting.  Most people they said want hardwoods.   EXCUSE ME, but I've had as many customers who hated hardwoods because of the coldness on their feet and preferred the carpet.  Others wanted stained concrete.  My suggestion is unless its ugly carpet, just get it cleaned.  If you are going to spend money on the floors, try doing hardwood in the dining room at least. 

5.  Mauve and peach.  Those colors scream old lady (Funny, I have mauve below the chair rail in my den because the carpeting on the stairs is a mauvy red.  I guess I need too paint.  Wait!!  I am old, I have 5 grandkids.)  Neutrals are better than almost any "color".

6.  Having rooms all different colors.  That is fine when you have kids and they want their favorite colored walls, but once you get ready to sell, neutralizing in one color is great.  I have started upstairs where the boys lived doing just that.  One had a black room.  I textured over that and painted it a neutral and have done the blues clues bathroom the same neutral.  I'm not sure I'll neutralize the blue bedroom up there just yet because there is blue carpeting in there; but will before I sell.  Most of my downstairs is blue so I'm sure when I get ready to sell, there will be alot of painting to be done first.

7.  Wallpaper.  Dated flowers are gone.  Today its painted walls or geometric wallpapers, but those can be offputting to the more conservative buyer.  Safer to stick with neutrals, but I have seen people go ga ga over red kitchens, so maybe sometimes it is ok to have a punch of color in a kitchen.

8.  Laminate.  WAIT,  I love my laminate.  I tored out the 4 inch tiles to get rid of grout and the laminate is so easy to clean!!  Well, buyers today prefer granite even though it doesn't hold up as well as laminate.  So if you have the $$$, change everything to granite; but if you don't I like the laminate that resembles granite.  Sometimes as realtors we have to touch it to tell the difference.  No one is using corian or 4 inch tiles any more.  Dont waste your money there.   Decorative tumbled stone back splashes are GREAT. 

9.  Front doors.  Absolutely I've seen people judge a home before they enter based on whether the door is nice or not.  Actually they judge it more if the door is rotted, peeling paint, or dirty.  Then they presume that the whole house has not been taken care of  So be sure your front door is pristine when you put your house on the market. 

10.  As realtors we say "classic" bathrooms when we mean PINK, BLUE, YELLOW, GREEN bathrooms, all done in 4 inch tile, including tub, toilet and sink.  Please at least change the toilet and sink.  There is a paint for the tiles that will cover and neutralize. 

I'm sure I could go on and on about things I see, but for today I'll stop with these.  They are in no particular order, as each is important to some buyers.  Some walk out upon seeing popcorn ceilings, some stay until they reach the classic bathrom.  Some won't enter if it has carpet, and some won't enter with hardwoods, so each person is different and this is just a list of "normal" irritating things buyers mention.  I'd love to hear what you HATE in a house when shopping for one. 

Contemporary home in Puckett was Totally Unique

I just saw the most amazing house in Pucket in Amarillo, Texas.  5568 sq ft for just $379,000.  That's about $60 a sq ft.  It was custom built with a garden room, two huge living rooms both with fireplaces, two staircases, 5 bedrooms, 5 baths, 2 master suites, 3 car garage, and a kitchen that all the cabinets were handpainted by an artist and no two sets of doors match the ones around them.  Very contemporary design.  Two staircases, and you could look down on the lower levels for a great view.  there was an upstairs deck.  Backyard featured a hot tub.  It was amazing.

8 Steps to Getting Your Finances in Order

8 Steps to Getting Your Finances in Order

1. Develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.

2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 percent and 10 percent of your total income.

3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing downeverything you spend for one month. You’ll probably see some great ways to save.

4. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.

5. Save for a downpayment. Although it’s possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.

6. Create a house fund. Don’t just plan on saving whatever’s left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.

7. Keep your job. While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.

8. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.

Judy Dendy

Prudential Ada, Realtors

3300 Danvers

Amarillo, Texas 79106

806-355-9601 Office

806-672-3082 Cell