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Underwater Homes are Returning to Positive Equity

In the beginning of the year, the market shift into an overhaul of multiple offers and fast rising home values.  This new change has created a change in home equity which has allowed 791,000 properties to return into a situation in which the borrower no longer owes more than the home is worth.

On December 17th on HousingWire.com article, the overall national value of negative equity continues to fall as home prices rise.  The rise is giving more homeowners a chance to benefit from refinancing and stay in their homes with the current low interest rates.   Or sell their property without harming their credit score as with a short sale and have a good chance to re-buy in the near future.

Highest Percentage of Mortgage Properties in Negative Equity

1) Nevada (32.2%)
2) Florida (28.8%)
3) Arizona (22.5%)
4) Ohio (18%)
5) Georgia (17.8%)


For more information regarding your home's current value, email us at ybetancourt@kw.com to get a free home value report.  Let us help you find out if your home has rise in value to avoid foreclosure/short sales.

Article source:  Housingwire.com

Home Seller: Why Isn't My Home Selling?

Have you gone thru more than one price reduction?  Don't understand why your neighbor's home is already in escrow while your home is still on the MLS showing "Active"?

The majority of the time, price is the reason why the home isn't selling.  Buyers will think the value of your house is less than the list price you have.

Market Value is the worth of what a buyer is willing to pay and a seller willing to accept.  Arriving to the magic price to enter escrow and close is a difficult negotiation.  By hiring a real estate agent and listen to their professional opinions you can market your home and sell fast.  It's not wise to go with an agent because they say they can get you more than what the other agents think the house will sell for.

Here is a list of most common mistakes sellers make when setting a price:

1) Price Based on Need:
What you want to make from the sell of your home will certainly fail because buyer will not take your needs into a factor.  Base the price on current market value that will sell your home fast and save you money in the long run.

2) Price Based on Ego:
Let say that your neighbor home sold for $200,000 last year and you want to $250,000 because you "know" your house is better regardless that the market increased five percent since your neighbor sold.  Unfortunately for sellers,  buyers enter the market being educated about the fair market value which weights on their decision to consider looking at your home and placing on offer.

3) Price Based on Greed: 
Even if you "test the waters" and price your home higher than a market value because "you never know, someone could come along who just has to have it.  Besides we can always lower the price later."  The issue is that buyers realize the price is unrealistic and discourages them from taking a second look.  If there is a price reduction but not enough to current market value, the home will sit even longer and pretty soon you have a listing that has been on the market so long buyers decide there is something wrong and steer clear from the home.

To price your home right, real estate agents can give your Competitive Market Analysis (CMA) which breaks down the sales price of homes that are similar to yours in location, size, age and condition.

The market is always changing and your agent should be updating your CMA whenever anything comparable to your property sells.  

4) Put on a Good Show:
Second biggest reason a home isn't selling is your home is clutter and is unorganized.  Buyers are looking to feel a "connection" to the home.  They want to be able to imagine their daily routine and future in the home they want to purchase.

5) Can't buy what they can't see:
Allow Appointment-Only showings or a lockbox to allow buyers to view the home before placing an offer.  When you make it difficult for people to see your property, then the chances of a sale at the price you want could drop considerably.

6) Out of Your Hands:
It's not always the seller's fault that a house isn't selling.  The market changes with in time and buyers tend to disappear.  Perhaps new construction homes are opening up nearby and taking all the attention your home could have gotten.

Selling your home takes necessary adjustments to make buyers place an offer on your home in today's market.

For a FREE Competitive Market Analysis in your neighborhood, click here to fill out the your request. A report will be given within minutes. Or give me a call at (818) 384-5928.


Source: Realtor.com

Reducing Energy Usage Around Your Home

Reducing energy usage around the home will save you money and help the planet too. Reducing energy doesn't have to be complicated, or hard work. Here's a look at various ways it can be achieved.

2014 Market: Potential Balance Real Estate Market?

This morning I came across this great article on Housingwire.com regarding the current market of 2013 and a small glimpse of the market to come in 2014.  During the mid-year, predictions of a strong Seller's market was predicated in 2014 with interest rates up in the 5% range.  As the fall and winter season approached, a real estate shift from seller's to balance market.

Home buyers are more cautious in the buying process as home prices rise especially with buyer's who reluctance to buy a home that deemed too expensive.  Builders are trying to make up for the lack of inventory with new homes claims Lawrence Yun, chief economist for the National Association of Realtors.

This is a good and bad news.  Good news for owners and home sellers who are getting appreciation and increase in housing equity which helps the economy in terms of consumer spending.  Bad news for potential homebuyers getting discourage from buying due to rising home prices and strict lending.

I agree with Brena Swanson, author of the article, when she writes, "If prices increase, homebuyers may choose to step out of the market if sellers do not adjust their list prices."

It looks like Sellers will be in a good shape in 2014 as prices will edge upward with little room to move further.  Only time will tell....

Mortgage Rates Rise for 30 year fixed loan to 4.29%

Last week, interest rates rise before the Thanksgiving holiday.  Freddie Mac has stated that the average interest rate rose from 4.22% to 4.29% for a 30-year fixed loan rate.  Rates for a 15-year loan rates rose from 3.27% to 3.33%.  

According to the Standard & Poor's/Case-Shiller index released last Tuesday, showed home prices increase in 20 major cities by 13.3% from September 2012.  For example, a home on the market last year was listed at $350,000 will have list price of $396,550 in the current market.  

How is the increase of mortgage rates effect the real estate market?  One factor is the home sales prices are declining which is stabilizing the multiple offer situation we saw earlier this year.  The seasonal trend for the fall and winter is normal to be low.  

The National Association of Realtors reported a pending sale decrease for the fifth consecutive month. 

It will be interesting to see how the market will shift in January 2014 and in the peak season of Spring 2014.  

For more information about the local market and local homes for sale, visit www.BetancourtRealEstateGroup.com or email us with a list of your search criteria.

Source: LATimes.com