Existing-home sales rose for a third month in a row in June, and prices may stabilize in many areas by the end of the year if inventories continue to decline, the National Association of Realtors said today.
Sales of resale homes, including single-family homes, townhomes, condominiums and co-ops, rose 3.6 percent from May to June, to a seasonally adjusted annual rate of 4.89 million units -- virtually the same as a year ago, NAR said.
At that rate of sales, the 3.82 million homes on the market represented a 9.4-month supply, down from 9.8 months in May.
A six-month supply of homes is generally considered a healthier balance of supply and demand, but the "raw inventory" total, or number of homes on the market, is down 14.9 percent from a year ago.
A Wall Street Journal analysis of housing fundamentals in 28 major real estate markets during the second quarter showed considerable variation in inventory, ranging from a high of 18.1 months in Chicago to just 2.7 months in Sacramento, Calif.
"If we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,” said NAR Chief Economist Lawrence Yun in a press release.
Distressed properties accounted for 31 percent of sales in June, a factor in the 15.4 percent decline in median home price from a year ago, to $181,800, the group said.
Thursday, July 23, 2009
Blitz Report on Real Estate Markets
In the latest Blitz Report on Real Estate Markets, released July 13, economist Steve Blitz argues against the
notion that home prices are not going to recover on a national scale until the economy is growing and
unemployment is falling. He notes that changes in the labor market over the last two decades have made job
growth an increasingly less reliable indicator of whether the economy is turning up, and points out home prices
have recovered before the end of each recession since 1975. “Home prices are, in truth, rising before
consumers perceive the recession has ended and well before the employment rate starts to turn down,” says
Blitz. He predicts that home prices will recover in the coming months, and that 1-year average RPX prices will
gain 3.3% in 2010, 6.5% in 2011 and 10% in 2012.
notion that home prices are not going to recover on a national scale until the economy is growing and
unemployment is falling. He notes that changes in the labor market over the last two decades have made job
growth an increasingly less reliable indicator of whether the economy is turning up, and points out home prices
have recovered before the end of each recession since 1975. “Home prices are, in truth, rising before
consumers perceive the recession has ended and well before the employment rate starts to turn down,” says
Blitz. He predicts that home prices will recover in the coming months, and that 1-year average RPX prices will
gain 3.3% in 2010, 6.5% in 2011 and 10% in 2012.
Wednesday, July 15, 2009
Monday, July 13, 2009
the Anti-Checklist: What NOT to do when buying a home
Don't just pick up the phone, call the number on the sign, and go by yourself. First, it's unsafe. Second, you can end up looking at a bunch of properties that don't meet your search criteria or price range, wasting your time. Third, it can make sellers think you are unrepresented and, thus, that they have the greater bargaining leverage from the get-go. Let your Realtor do her job; if you drive by an interesting property your Realtor hasn't mentioned to you, call your Realtor with the property address and phone number from the sign, and let her research the asking price and property details, nine times out of 10, your Realtor hasn't sent it to you because the property doesn't meet one or more of your search criteria. The 10th time out of 10 - your Realtor can escort you there and show it to you while the seller is out of the house, and out of your hair.
Don't plan something for two hours later. You don't want to rush, you want to linger where necessary. Plus, if you find one you really like, you might spend more time there. And, with drive time, etc., it can easily take three hours to see seven houses - not to mention that you may find one you want to immediately write an offer on, which will take another hour or so.
Avoid taking separate cars on your buyer's tours. Every once in awhile a hot property will come up, your Realtor will call you from work, and you can meet her there. If you are going to be driving from house to house, get in the car with your Realtor -- even if it means you have to put the baby seat in your Realtor's car. This way, you don't get separated, no one gets lost, and you can spend the time between houses debriefing and providing your Realtor with the feedback she needs to narrow your search and hone in on your home.
Don't bring a triple Venti mocha frap with you on your buyer's tours. How can I say this? Uh, you don't want to be using everyone's bathroom, if you know what I mean -- especially if people still live in the house. Vacant houses are the best ones for pit stops, but because everyone knows that, they are also the most likely to have nothing in the way of toilet paper except a cardboard roll with a couple of spots of paper still stuck to the glue.
Plus, coffeehouse drinks usually have coffee and milk, not the most gastro-friendly substances. If you need to, plan ahead to stop in the middle of the tour for a snack and a pit stop, and do feel free to bring a bottle of water.
Don't wear lace-up shoes. Slip-ons, flip flops, etc. are ideal. Many well-prepared homes will have new carpet, and often the listing agent will have posted a "please remove shoes" sign to help keep the flooring clean. Having to untie and tie your shoes at every house can be a huge waste of time and really anti-climatic when you get to the front door of a house you really want to see. Note-those paper booties some "shoes off, please" agents provide can be slippery. Avoid them; if you can't stand the idea of walking barefoot through a house, make sure you wear socks with your slip on shoes.
Don't hesitate to look in drawers, cupboards and closets. If you really dislike a place, you needn't get really detailed in your viewing of a property. But if you don't hate it, you should open every door. I've had clients miss whole rooms and large storage areas by not opening a door they assumed went to a closet. Besides, you need to know how wide and deep the real closets are, which you can't find out without opening the door and having a look. If you really like a place, you should also open kitchen and bathroom drawers, cupboards and cabinets. You're not being nosy, you're gathering information. Rest assured that the sellers have had ample notice to straighten up those spaces in anticipation of your poking around.
Hold the trash talk. Sellers may be listening. I wish I was kidding, but often the seller just steps outside or next door. (I once represented a kooky seller who walked around with her purse on during the Open House "ooh"ing and "aah"ing like she was a prospective buyer.) And they don't always understand that it's the most interested buyers who pick the place apart to figure out exactly what they will need to do to it to make it theirs. If you end up in a multiple offer situation, you don't want to have an uphill battle because you badmouthed the sequined butterfly "artwork" the seller had hanging in the hallway. So, if you can't say something nice, don't say anything at all. Until you get in the car, and roll up the windows - then you need to let it rip so your agent can learn your likes and dislikes.
Don't think you can offend your Realtor. I always remind my clients that the house I'm showing them is not my house. So, if you like it, that's great. But if you hate anything about it, don't hesitate to say so. Don't be timid or polite and omit a criticism or concern you have. Doing so can result in you seeing more of the same, which is a waste of everybody's time.
Don't plan something for two hours later. You don't want to rush, you want to linger where necessary. Plus, if you find one you really like, you might spend more time there. And, with drive time, etc., it can easily take three hours to see seven houses - not to mention that you may find one you want to immediately write an offer on, which will take another hour or so.
Avoid taking separate cars on your buyer's tours. Every once in awhile a hot property will come up, your Realtor will call you from work, and you can meet her there. If you are going to be driving from house to house, get in the car with your Realtor -- even if it means you have to put the baby seat in your Realtor's car. This way, you don't get separated, no one gets lost, and you can spend the time between houses debriefing and providing your Realtor with the feedback she needs to narrow your search and hone in on your home.
Don't bring a triple Venti mocha frap with you on your buyer's tours. How can I say this? Uh, you don't want to be using everyone's bathroom, if you know what I mean -- especially if people still live in the house. Vacant houses are the best ones for pit stops, but because everyone knows that, they are also the most likely to have nothing in the way of toilet paper except a cardboard roll with a couple of spots of paper still stuck to the glue.
Plus, coffeehouse drinks usually have coffee and milk, not the most gastro-friendly substances. If you need to, plan ahead to stop in the middle of the tour for a snack and a pit stop, and do feel free to bring a bottle of water.
Don't wear lace-up shoes. Slip-ons, flip flops, etc. are ideal. Many well-prepared homes will have new carpet, and often the listing agent will have posted a "please remove shoes" sign to help keep the flooring clean. Having to untie and tie your shoes at every house can be a huge waste of time and really anti-climatic when you get to the front door of a house you really want to see. Note-those paper booties some "shoes off, please" agents provide can be slippery. Avoid them; if you can't stand the idea of walking barefoot through a house, make sure you wear socks with your slip on shoes.
Don't hesitate to look in drawers, cupboards and closets. If you really dislike a place, you needn't get really detailed in your viewing of a property. But if you don't hate it, you should open every door. I've had clients miss whole rooms and large storage areas by not opening a door they assumed went to a closet. Besides, you need to know how wide and deep the real closets are, which you can't find out without opening the door and having a look. If you really like a place, you should also open kitchen and bathroom drawers, cupboards and cabinets. You're not being nosy, you're gathering information. Rest assured that the sellers have had ample notice to straighten up those spaces in anticipation of your poking around.
Hold the trash talk. Sellers may be listening. I wish I was kidding, but often the seller just steps outside or next door. (I once represented a kooky seller who walked around with her purse on during the Open House "ooh"ing and "aah"ing like she was a prospective buyer.) And they don't always understand that it's the most interested buyers who pick the place apart to figure out exactly what they will need to do to it to make it theirs. If you end up in a multiple offer situation, you don't want to have an uphill battle because you badmouthed the sequined butterfly "artwork" the seller had hanging in the hallway. So, if you can't say something nice, don't say anything at all. Until you get in the car, and roll up the windows - then you need to let it rip so your agent can learn your likes and dislikes.
Don't think you can offend your Realtor. I always remind my clients that the house I'm showing them is not my house. So, if you like it, that's great. But if you hate anything about it, don't hesitate to say so. Don't be timid or polite and omit a criticism or concern you have. Doing so can result in you seeing more of the same, which is a waste of everybody's time.
Thursday, July 9, 2009
DRE LICENSE NUMBER MUST BE ON SOLICITATION MATERIALS
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
The California Department of Real Estate (DRE) has recently adopted a new regulation clarifying the law that requires DRE license numbers on business cards and all other solicitation materials intended to be the first point of contact with consumers. The licensing law came into effect on July 1, 2009 as we previously reported.Under the new section 2773 regulation adopted by the DRE, the solicitation materials that must contain the license identification number include the following items:Business cards;Stationery;Websites owned, controlled, and/or maintained by the soliciting real estate license; andPromotional and advertising flyers, brochures, email and regular mail, leaflets, and any other marketing or promotional materials designed to solicit the creation of a professional relationship between the licensee and a consumer, or intended to induce a consumer to contact the licensee about any licensed services.DRE's new regulation also states that the following items are not solicitation materials under the license number requirement:Advertisements in electronic media, including radio, cinema, and television ads, and the opening section of streaming video and audio;Print advertising in any newspaper or periodical; and"For Sale" signs placed on or around a property intended to alert the public the property is available for purchase or lease.The eight-digit DRE license number must be in a type size no smaller than the smallest type size used in the solicitation material. If the name of more than one licensee appears in the solicitation, then each person's license number must be disclosed. However, the license number of employing brokers or corporate brokers whose names, logos, or trademarks appear on solicitation materials along with the names and license numbers of licensed employees or broker-associates, need not appear on those materials.In addition to solicitation materials, a licensee's DRE license number must also be disclosed on real property purchase agreements when the licensee is acting as an agent in those transactions. C.A.R.'s standard form purchase agreements already conform to this new requirement.Sources: California Business & Professions Code section 10140.6 (filed September 25, 2008); Section 2773 of Title 10 of the California Code of Regulation (filing with the Secretary of State still pending).
The California Department of Real Estate (DRE) has recently adopted a new regulation clarifying the law that requires DRE license numbers on business cards and all other solicitation materials intended to be the first point of contact with consumers. The licensing law came into effect on July 1, 2009 as we previously reported.Under the new section 2773 regulation adopted by the DRE, the solicitation materials that must contain the license identification number include the following items:Business cards;Stationery;Websites owned, controlled, and/or maintained by the soliciting real estate license; andPromotional and advertising flyers, brochures, email and regular mail, leaflets, and any other marketing or promotional materials designed to solicit the creation of a professional relationship between the licensee and a consumer, or intended to induce a consumer to contact the licensee about any licensed services.DRE's new regulation also states that the following items are not solicitation materials under the license number requirement:Advertisements in electronic media, including radio, cinema, and television ads, and the opening section of streaming video and audio;Print advertising in any newspaper or periodical; and"For Sale" signs placed on or around a property intended to alert the public the property is available for purchase or lease.The eight-digit DRE license number must be in a type size no smaller than the smallest type size used in the solicitation material. If the name of more than one licensee appears in the solicitation, then each person's license number must be disclosed. However, the license number of employing brokers or corporate brokers whose names, logos, or trademarks appear on solicitation materials along with the names and license numbers of licensed employees or broker-associates, need not appear on those materials.In addition to solicitation materials, a licensee's DRE license number must also be disclosed on real property purchase agreements when the licensee is acting as an agent in those transactions. C.A.R.'s standard form purchase agreements already conform to this new requirement.Sources: California Business & Professions Code section 10140.6 (filed September 25, 2008); Section 2773 of Title 10 of the California Code of Regulation (filing with the Secretary of State still pending).
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