Real estate showing signs of new life

March 28, 2013 By 2 Comments

 

By Jane K Dove on March 28, 2013

Some green shoots appear to be pushing up to bring the first hints of new life to Lewisboro’s real estate market.

Sales for 2012 and the first quarter of 2013 are up and the median home price has stabilized instead of declining.The Ledger sat down last week with Houlihan Lawrence Associate Broker Mary Anne Condon, a longtime expert on our town, to review the numbers and discuss what they mean.

2012 recap and comparisons

“For all of 2012, we had 116 sales, compared to 97 in 2011,” she said. “This represents the highest level since the economic downturn began. One hundred-sixteen are the most homes sold since 2007, when 131 changed hands. However, the 116 sold in 2012 is well below the 2004 peak, when 189 homes were sold at the height of the real estate boom.”

Ms. Condon said the still modest though improving sales are a reflection of several factors, including tough mortgage approval standards, requirements for significant down payments, and the need for impeccable credit.

“Fortunately, today’s buyers are typically well-qualified and have the 20% down payment that is now typically required,” Ms. Condon said.

A “for sale” sign adorns the front yard of a home on Church Tavern Road in South Salem. Home sales in Lewisboro are up for 2012 and the first quarter of 2013, and the median home price has stabilized. (Photo Matt Spillane)

On the price side, 2011 saw the lowest median house price in 10 years — $560,000. “But 2012 saw an uptick to $610,000,” Ms. Condon said. “This is a positive sign, but still well below our 2007 all-time high median price of $825,000.”

“The 2012 median was impacted by the fact that a number of more expensive properties were sold in 2012. So everyone’s home price did not go up an automatic 8.9% in 2012. The typical house price is still close to flat year-to-year.”

Comparing median prices in adjacent towns, Bedford had a 2012 median price of $745,000 and Pound Ridge came in at $777,500.

“Again, these prices are still way below the peak of the local market in 2007,” Ms. Condon said.

Prices ranged widely in 2011, from a low of $185,000 for a short sale in South Salem to a high of $2.3 million for a 10-acre estate with pool and tennis court in Waccabuc. A waterfront home on Lake Truesdale commanded a sale price of $1,551,000.

“A significant amount of sales activity in 2012 was at the lower end,” Ms. Condon said.

She cited numbers that showed 40 of the 116 houses sold in 2012 coming in at under $500,000. By comparison, the “boom year” of 2007 had only 15 homes sold at under $500,000. “As prices go upward, sales drop off,” she said.

Property tax impact

When asked by The Ledger what impact Lewisboro’s high property taxes had on the marketability of its homes, Ms. Condon said taxes are always a factor in the purchase of a home.

“When a buyer is looking at a home, they consider the entire monthly cost, which includes both their mortgage and their property taxes,” she said. “Most homeowners write out a single check to their bank each month and look at the two numbers added together to determine how much they can afford to spend. Taxes do matter. Currently Lewisboro’s are higher than those on properties in adjacent school districts.”

Ms. Condon said many buyers still seek out homes in the Katonah-Lewisboro school district because of its good reputation.

“But if the taxes are too high, they may find the house they want is simply out of reach,” she said.

Lewisboro tax assessor Lise Robertson told The Ledger that current taxes on a $500,000 Lewisboro home average $14,000. On an $850,000 home they come in at $23,800.

Current quarter

Ms. Condon said she believed 2013 would prove to be a stronger real estate year than 2012 if new numbers hold up.

“For the first quarter of 2013, we have had 19 sales and another 22 are in contract, with a median list price of $511,000,” she said. “The first-quarter median sale price so far is $620,000, an insignificant change from 2012’s figure of $610,000.”

“As an optimist, I believe the rest of the year will continue to show improvement. The stock market is dong very well and jobs reports are better. Overall, people just seem to be feeling better about the economy, and on a national basis, house prices are going up and builders are getting back to building.”

Ms. Condon said she expected interest rates to remain at historically low levels, another boon to the market.

“But I would advise my sellers not to expect a quick rebound to the good old days,” she said. “Buyers are still very cautious and want a deal. They come into our office armed with information about the complete financial histories of the homes they want to see and are ready to drive a hard bargain.”

Ms. Condon said it could be a long time, if ever, for Lewisboro to see prices like those in the frenzied years of the real estate boom.

“That might be an anomaly we never see again, but I can say for sure that right now, things are definitely looking better and the market is slowly coming back to life.”

All figures used here are from the Westchester-Putnam Multiple Listing Service.

Courtesy of your Arcadia Real Estate Agent

Filed Under: Market Tagged With: , , , , , , , , , , ,

US housing starts rise

March 20, 2013 By Leave a Comment

By Christopher S. Rugaber THE ASSOCIATED PRESS

WASHINGTON —  U.S. builders started more homes in February and permits for future construction rose at the fastest pace in 4-1/2 years. The increases point to a housing recovery that is gaining strength.

The Commerce Department said Tuesday that builders broke ground on houses and apartments last month at a seasonally adjusted annual rate of 917,000. That’s up from 910,000 in January. And it’s the second-fastest pace since June 2008, behind December’s rate of 982,000.

Single-family home construction increased to an annual rate of 618,000, the most in 4-1/2 years. Apartment construction also ticked up, to 285,000.

The gains are likely to grow even faster in the coming months. Building permits, a sign of future construction, increased 4.6 percent to 946,000. That was also the most since June 2008, just a few months into the Great Recession.

And the figures for January and December were also revised higher. Overall housing starts have risen 28 percent higher over the past 12 months.

Separately, a private report showed the number of Americans with equity in their homes increased last year. That suggests one of the biggest drags from the housing crisis is easing and could clear the way for more people to put homes on the market.

“The road ahead for housing is still, so far, looking promising,” Jennifer Lee, an economist at BMO Capital Markets, said in a note to clients.

The pair of positive housing reports helped drive early gains on Wall Street. But stocks edged lower later in the day as investors awaited the outcome of a vote on an unpopular bailout plan in the European nation of Cyprus. The Dow Jones industrial average was down 35 points in afternoon trading.

Housing starts jumped in the Northeast and Midwest, while they fell in the South and West. Permits rose in the South, West and Midwest, falling only in the Northeast.

The U.S. housing market is recovering after stagnating for roughly five years. Steady job gains and near-record-low mortgage rates have encouraged more people to buy.

In addition, more people are seeking their own homes after doubling up with friends and relatives in the recession. That’s leading to greater demand for apartments and single-family homes to rent.

Still, the supply of available homes for sale remains low. That has helped push up home prices. They rose nearly 10 percent in January compared with 12 months earlier, according to CoreLogic, the biggest increase in nearly seven years.

Higher prices mean that more Americans have equity in their homes. Last year, about 1.7 million Americans went from owing more on their mortgages than their homes were worth to having some ownership stake, CoreLogic reported Tuesday. That benefits both home owners and the broader economy.

When homeowners have some equity stake, it makes it easier for them to sell or borrow against their homes. Still, 10.4 million households, or 21.5 percent of those with a mortgage, remain “under water,” or owe more on their home than it is worth.

The number of previously occupied homes for sale has fallen to its lowest level in 13 years. And the pace of foreclosures, while still rising in some states, has slowed sharply on a national basis. That means fewer low-priced foreclosed homes are being dumped on the market.

Those trends, and the likelihood of further price gains, have led builders to step up construction. Last year, builders broke ground on the most homes in four years.

Homebuilders have become much more confident over the past year.

Courtesy of your Arcadia Real Estate Agent

Filed Under: Brettany Harrison, Brian Peralez, Bussiness, Market, Mortgage Tagged With: , , , , , , , , , , , , , ,

3 Top Tips To Selecting The Right Home For Your Family

March 14, 2013 By Leave a Comment

Published March 12, 2013

New Home With Family

Whether you are moving to a new house with children or you are buying your first Greenville home with the intention of raising future little ones there, many factors will come into play when making your decision.

You will want to find a house with the right size and layout, that has a suitable number of bedrooms and bathrooms, is in an excellent neighborhood and has all of the local amenities your family will need.

Here are three important factors to consider during your new home search:

Location

Take a look at the area where the property is located.

Is it close to a school that your kids can attend when they are old enough?

Is there a playground where they can play with their friends?

Are you near any convenient shopping areas or stores for picking up groceries?

Location is one of the most important factors to consider when choosing a place to raise your family.

Neighbors

Take a look at the demographics of the neighborhood.  You may want to spend some time walking the neighborhood and learning about the surrounding area.

Taking evening walks in the neighborhood might allow you the opportunity to meet other people who are living there and learn what they think is important about the area.

If it has mostly young families around the same age as you, your children will likely have plenty of neighbors to play with as they grow up.

Affordability

You may think that spending as much as you can possibly afford on an expensive home is the best thing for your kids, but you might be wrong.

In fact, you could end up stressed out from working too hard to make your mortgage payments and feel like you never get enough time to spend with your family.

Another option would be to buy a more modest house that you can reasonably afford and have more time with your children.

Choosing the right place to live is difficult. It might take a while to find the right house, but when you do, it will be worth it.

When you do, you will have a wonderful place to fill with love and memories, where your children can grow up in peace and happiness.

If you’ve been seriously contemplating purchasing your first home, or possibly the next home, the best thing you can do is contact a licensed real estate professional to determine what is available in the market that would fit your needs.

Courtesy of your Arcadia Real Estate Agent

Filed Under: Brettany Harrison, Brian Peralez, Bussiness

Look For Improvements In The Real Estate Market In 2013

March 7, 2013 By Leave a Comment

Published March 7, 2013

Home Prices Improving March 2013

The previous couple years’ doom and gloom outlook is looking like it is turning more upbeat and robust for the rest of 2013.

Home Prices Climb Nearly 10% Over Past Year

In fact, a recently released report by CoreLogic stated that home prices were up 9.7 percent from one year previously.

That kind of increase is a very good sign that the momentum may be building for a strong real estate market this year.

Many other economic experts are predicting that things might be improving this year, including increases in both home prices and sales.

Here are some of the ways that these positive changes may impact home buyers and sellers this year.

For Buyers:

Attractive Financing Options

Interest rates could remain at the lowest levels they have been in years, which can make purchasing a home more affordable.

Stiffer Competition

More buyers will be competing for the homes that are available which could mean bidding wars on homes with more than one interested party.

Be sure to take this into consideration before making your offer, and have a licensed real estate professional representing you in your purchase negotiations.

Great Home Prices

Housing remains affordable in many areas of the country. Although home prices are rising, the cost of real estate is well below what it was ten years ago.

And For Sellers:

Marketing Is Vital

Working with a skilled property professional is imperative to ensure the best advertising and marketing for your listing.

Real estate agents have access to the Multiple Listing Service (MLS), which is where other agents and buyers look for properties that are listed and available for purchase.

Contract Negotiations Prevalent

Multiple offers will become more commonplace. Do your research on how to best handle contract negotiations.

Maximize Your Selling Price

Make sure you get the most for your home. Know what other properties are selling for in your neighborhood, and consider hiring a designer to stage your home for showing.

With the Greenville real estate market shifting, both buyers and sellers need to be aware of how the changes could affect them.

Whether you’re looking for your dream house or wanting to get the highest return on your home for sale, a great next step would be speaking with a qualified real estate professional.

 

Courtesy of your Arcadia Real Estate Agent

Filed Under: Uncategorized Tagged With: , , , , , , , , , ,

How the Student Loan Crisis Drags Down Home Prices

March 4, 2013 By Leave a Comment

By: 
Image Source | Getty Images

Pity the college graduate, burdened with shocking levels of student-loan debt and looking for a job in the worst employment market in two decades.

But save a little pity for the rest of us.

The staggering amount of outstanding student debt — nearly $1 trillion owed – is beginning to impede the U.S. economy as a whole, a new report from the New York Federal Reserve suggests, chiefly by robbing the housing market of its richest crop of new buyers: young college graduates.

The statistics in the report are dismaying in themselves. With the number of borrowers approaching 40 million nationally, including more than 40 percent of 25-year-olds, the average balance on their loans has risen to $25,000. About 6.7 million of all student borrowers, or 17 percent, are delinquent on their payments three months or more.

“Delinquent student loan borrowers have a very difficult time accessing credit and the share of those borrowers is greater today than in the past,” said Donghoon Lee, a senior economist for the New York Fed and one of the authors of the report.

(Read More: Student Debt Climbs as Credit Gets Tighter)

For the average homeowner, the worst news is that these overleveraged and defaulting young borrowers are no longer qualify for other kinds of loans — particularly home loans. In 2005, nearly nine percent of 25- to 30-year-olds with student debt were granted a mortgage. By late last year, that percentage, as an annual rate, was down to just above four percent.

The most precipitous drop was among those who owe $100,000 or more. New mortgages among these more deeply indebted borrowers have declined 10 percentage points, from above 16 percent in 2005 to a little more than 6 percent today.

“These are the people you’d expect to buy big houses,” said student loan expert Heather Jarvis. “They owe a lot because they have a lot of education. They have been through professional and graduate schools, but their payments are so significant, they have trouble getting a mortgage. They have mortgage-sized loans already.”

 

For years, economists and student advocates warned that the greater debt load would have an adverse impact on graduates’ borrowing power. Now the statistical evidence is mounting. Last month, a Pew Research Center survey found that the share of millennials who own their homes had fallen from 40 percent to 34 percent during the recession, with a similar decline in residential debt.

Everyone has had a harder time qualifying for a mortgage since credit standards tightened in 2008, of course. And it could be that younger people suddenly prefer renting (or living at home). But by looking at mortgage originations, the New York Fed’s report ties college graduates’ lack of home ownership more directly to borrowing woes.

The implications for the housing market are serious. The number of first-time homebuyers, more than half of whom are aged 25 to 34, has been shrinking since the recession struck, and young buyers now make up their smallest share of the housing market in more than a decade.

(Read More: Four Ways to Make Your Tax Refund Pay You Back)

In February, the Consumer Financial Protection Bureau asked private lenders to suggest options for relief of student loan borrowers. “They are increasingly concerned about the effect of student debt on household formation to see if there’s anything they can do to thaw the marketplace,” said Mark Kantrowitz, publisher of the financial aid website Finaid.com.

But existing efforts to prevent delinquency on federally backed loans — such as basing the size of borrowers’ payments on their income — have sometimes made getting a mortgage more difficult. “It confuses the mortgage process,” said Jarvis. “Income-driven programs do help them afford a home and ought to make them more creditworthy, but they have not communicated well.”

The best fix for everyone would be a faster growing economy, which would provide jobs and higher incomes to those who have borrowed. Until then, Jarvis sees the average college grads’ situation as a Catch-22. “If you don’t prioritize your student loan debt you won’t be able to get credit in the future,” she said, “and if you do pay it, you won’t be able to afford anything else.”

Courtesy of your Arcadia Real Estate Agent

Filed Under: Arcadia Real Estate Agent, Community, Pasadena News, Trending Topics Tagged With: , , , , , , , , , , ,