Realtors expect home prices to grow the most in California, Florida and Texas

As the first second quarter of the year is near us, results of 2014 real estate market report are in.  Overall, NAR members expect a slowdown from the 2013 big growth.  Good news, right? Good news in certain states. Home prices are expected to increase over the next 12 months in California, Texas, Florida, and other states with a median price increase of 4%.  

A home with a purchase price of $300,000 today could be $312,000 in a year from now. 

Keep in mind that price movements depend on the local housing demand and supply, and the access of mortgage financing.

Search homes at www.BetancourtRealEstateGroup.com/properties or call us (818) 384-5928 to discuss your options in the real estate market.

Source: HousingWire.com

JUST SOLD!! Norwalk California Home

Congratulations to our clients on their new home! Successfully represented buyer. 

Find homes for sale at http://www.BetancourtRealEstateGroup.com.  

Find the value of your home at http://www.BetancourtRealEstateGroup.com

Rising First-Time Landlords

It's been an interesting real estate year so far and as prices goes up, there is an increase of first-time landlords entering the market.  Typically, if a homeowner want to buy a new house, they would sell the old one and use the equity as a down payment.  Especially for homeowners who move out-of-town.

With rising rents, there is a new approach.  Buy a new house. Keep the old house and rent it out.

Perhaps this is one reason why there is limited inventory for homes for sale.

If you would like a complimentary rental market report for your property, contact us.

New Homes for Sale in Sherman Oaks, California

View New Homes for Sale in beautiful Sherman Oaks! (http://bit.ly/SONewHomes)

Thinking of selling your home? Click here for a FREE home value market report from a professional real estate agent in Sherman Oaks! 

10 Top Things Home Buyers Want in a Neighborhood

To find homes for sale in your area, visit www.BetancourtRealEstateGroup.com or email us for a no-cost home value report. 

North Hollywood OPEN HOUSE LIST!!! FREE!!

Great properties to view this week!!! Especially this beautiful move-in ready home on Killion Street listed by Rashad Winston, REALTOR

(http://bit.ly/NoHoOPENHOUSE)

Looking to list your home? Contact me!! Let me give you a complimentary market value home report. 

WIN BIG WITH KELLER WILLIAMS MOBILE APP

Enter your chance to win $50,000 by downloading myKW mobile app! Activate app with my code: KW2J1P79A. No Purchase necessary. Contest ends March 31, 2014!  

*NO PURCHASE NECESSARY. Legal residents of the 50 United States (D.C.) 18 years and older. Ends 3/31/14. To enter and for Official Rules, including odds, alternate method of entry if applicable, and prize descriptions, visit http://bit.ly/1jgVljU. Void where prohibited.

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

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....

JUST SOLD - Renovated Condo in Sherman Oaks

 5003 TILDEN AVE                                                                                                              

Sherman Oaks, California
2 Bedrooms | 2 Baths | 949 sqft

JUST SOLD! Closed in 27 days!

Move in ready condo with recent renovations.  Walking distance to beautiful Park and downtown Sherman Oaks! Successfully Represented Buyer.

View Larger Map

Prediction of Price Growth Will Slow Down

2013 has been a rollarcoast in home prices and setting breaking levels in certain areas.  Many buyers are asking if this new trend is a bubble and will it end?  Let's take a look.

Since June of last year, home prices have rose by 11.9%.  On a seasonally basis (real estate has seasons) there was a 0.6% from May (spring) to June (summer).

According to Wall Street Journal's Nick Timiraos, prices will still rise but not as fast as this previous year.  This could mean that the 'bubble' everyone was asking about...isn't a bubble that will burst.

WHY????

Economists from Goldman Sachs Group offered three reasons why home price gains will be moderate:

1) Housing is no longer that cheap.  Prices in relations to incomes and that relation to rents - home prices are no longer "undervalued" as they did two years ago.  Recent home prices gains have put home prices on a national basis back at "fair value."

2) Sharp spike in mortgage rates led buyers to pause. With the low historical interest rates created an urgency to jump into the market.  Since the 1% increase in June, buyers are stepping back and re-considering their options.

3) Biggest drivers of price gains are going to play a smaller role going forward.  Home price have increased in part of the decline in foreclosure and distressed homes.  Investors are slowing down their purchase because the bargains of last year has dried up.

So.... unit there is new construction which is gearing up to open by next year (go to NewHomeSource for upcoming development communities) - it looks like this upward trend will continue into 2014.

Source: The Wall Street Journal

Home Sellers: Overprice or Underprice your Home on the Real Estate Market?

It's a seller's market with buyers overbidding on properties and this trend doesn't seem to be dying down.  When setting an asking price, homeowners are coming across two school of thought:  

1) OVERPRICING 

Homeowners and agents believe that a higher asking price will draw higher offers from potential buyers.  This technique works when inventory is low when there is little "ACTIVE" homes on the market.  

2) PRICE BELOW NEARBY PROPERTIES

Homeowners and agents believe that pricing homes below nearby properties by 5% ot 10% will create a bidding war.   This technique works great in a heated market and for buyers who are looking for a bargain.  The bidding war has seen a potentially of 10% or 15% to the sale price! 

Which technique is best? 

Every house is different and discussing with a Local Realtor like myself will help you determine with strategy works for your home and you.

For a complementary home value report and our marketing strategies, contact us at www.BetancourtRealEstateGroup.com.  We cover Encino, Sherman Oaks and surrounding areas.

Source: WSJ.com

Graphs and Charts: Redfin.com

How Will Mortgage Interest Rates Effect Your Mortgage Payment

by Yvette Betancourt

Interest rates jumped one percent within a week in the month of June 2013.  Talking with the mortgage lenders I have done business in the past, told me that same thing -  the era of historical low interests are O-V-E-R!!!  The same week that interest rates jumped a whole percent, I read an article on my LinkedIn network that rates would continue to rise by the end of the year.  Some analyst dared to mention six percent interest rates.  

But what does all these numbers mean?  How will it effect buyers and sellers?  

It all comes down to numbers.  For sellers, the interest rate affects the refinancing of their home.

For buyers, it means a change in your purchase price range as price of homes continue to rise. 

Let's look at three Case Studies that will reflect a mortgage payment at three different interest rate:

Case Studio #1  at 3.5% rate

Conventional Loan

Purchase Price of Home: $450,000
10% downpayment of: $45,000
Loan amount for home: $405,000

Closing Costs in month of July

Fixed Cost: $7,893  
Pre-Paid Cost: $4,267
Total: $12,160 

Grand Total Due at Closing of Escrow (downpayment + closing costs): $57,160.00

Payment Info:

Principal and Interest: $1,818.63
Haz. Insurance: $131.25
M. Tax: 462.00
PMI: $178.88

PITI: $2,590.76

Case Studio #2  at 4.5% rate

Conventional Loan

Purchase Price of Home: $450,000

10% downpayment of: $45,000

Loan amount for home: $405,000

Closing Costs in the month of July

Fixed Cost: $7,893  

Pre-Paid Cost: $4,433

Total: $12,326

Grand Total Due at Closing of Escrow (downpayment + closing costs) : $57,326

Payment Info:

Principal and Interest: $2,052.08

Haz. Insurance: $131.25

M. Tax: $462.00

PMI: $178.88

PITI: $2,824.20

Case Studio #2  at 6% rate

Conventional Loan

Purchase Price of Home: $450,000

10% downpayment of: $45,000

Loan amount for home: $405,000

Closing Costs in the month of July

Fixed Cost: $7,893  

Pre-Paid Cost: $4,683

Total: $12,576

Grand Total Due at Closing of Escrow (downpayment + closing costs) : $57,576

Payment Info:

Principal and Interest: $2,428.18

Haz. Insurance: $131.25

M. Tax: $462.00

PMI: $178.88

PITI: $3,200.30

The increase of 1% in interest rates is $233.44 mortgage payment difference and $250.00 of closing cost difference. If interest rates rise to 6%, the difference is increase by $609.54 mortgage payment and $416 of closing cost difference. 

Is now a good time to enter the real estate market?

Contact me for more information about today's real estate market.

Making ‘Green’ More Affordable for Everyone

Consumer demand for high-efficiency homes is rising. But the value of “green” isn’t always factored in by appraisers, and is typically ignored by mortgage lenders.  

A Senate bill supported by a broad coalition of business, real estate, energy and environmental groups seeks to put energy cost savings into the underwriting equation.  The bill which is being called the SAVE Act (for Sensible Accounting to Value Energy), the legislation could make energy-efficient features more affordable to average-income home buyers by allowing them to qualify for a larger loan amount.  he legislation would require Fannie Mae, Freddie Mac and the Federal Housing Administration to incorporate energy efficiency into their underwriting policies.

Read NYTimes.com article

New to the Market in Hollywood Hills

MORE INFORMATION

5 Easy and Budget-Friendly Tips to Get Your Home Ready to Sell

We can all learn a little something from professional home stagers.  I know I can! 

To stage or not to stage? It's a sensitive subject to homeowners.  Do you allow someone to move your furniture and personal items to appeals the general public of buyers? For me, it almost implies that the home you’ve been living in quite comfortably isn’t actually good enough for everyone else. 

The truth of the matter is that we can all learn a little something from professional home stagers. The good news is that many of these things are easy to do and budget-friendly to boot!   

1. Declutter and Get Organize

The number one rule of home staging is to get rid of all clutter. The best way to do that is to have a designated place for everything whether it's file boxes in the office or storage jars in the kitchen. 

TIP: This task can seem daunting (which is why there are probably companies you can hire to do this for you) but if you think of tackling one room per weekend you could have a well organized and clutter-free house by end of summer. 

2. Freshen Up with Paint

Home stagers will tell you that in order to have the best chance of selling your home you should choose neutral paint colours that appeal to a wide spectrum of buyers. There is no denying that a freshly painted house seems cleaner, brighter and more welcoming. 

TIP: If it's been a few years (or decades!), you might want to consider a touch up. You’ll be amazed at what a difference a little paint can make. 

3. Rearrange Furniture

Oftentimes, all it takes to revitalize your home is a simple reshuffling of the existing furniture. Don’t be surprised if your home stager tells you to move some of your items into storage and distribute what's left around the house. 

TIP: In order to create more space and flow you might want to remove some of the chairs from your dining room and add them to your living space. Conversely, you might take an occasional chair from your living room and place it in the hallway. See what rearranging your own furniture can do for your space. 

4. Add Decorative Touches

The role of a good stylist is to add those small decorative touches that turn a ho-hum space into something intriguing and dynamic. 

TIP: Take a look through your closets and see what accessories you have that could make your place look a little more pulled-together. Look for items that are either all in the same colour palette or the same shape. Repetition is key!   

5. Create Zones

Potential home buyers like to imagine their life in your space. By creating distinct zones of eating, relaxing, studying, playing and working, you allow them to envision a harmonious day-to-day routine in their new digs. 

TIP: Take the time to walk around your house to see if there are any spaces that are not being used to their full potential. Try to think as a stranger -- what would bother you if you weren't already totally used to it? 

Are you thinking of selling? Contact me, Yvette Betancourt, for a complimentary home value.

Individual Buyers Dominate Home Sales as Opposed to Investors

Another sign that the housing recover is more sustainable than before.  Mortgage applications were at all time high in January.  For the last couple of years, investors with cash have driven the recovery of the housing market.  But in the last five months, application for new mortgages have risen and now regular buyers are having to play a bigger role in the housing recovery. 

This is the significant change the market has been waiting for! Why? Many in the real estate industry are worry that once home prices rise to a point where it's not as worthwhile for investors to buy, prices would drop off.  Now that individual buyers dominate home sales, we may see a more sustainable recovery under way. 

This doesn't mean that investors have loosen their grip on the market.  Now,  investors are buying homes at an extremely affordable price with plans to rent them out and flip them for a profit when the market is right. 

With these news, individual buyers will likely play a larger role in the housing recovery however the change will be a slow one.  The importance is that it has started to happen. 

Source: CNNMoney.com

Mortgage rates set record low for sixth week in row

Mortgage rates fell to new lows for the sixth straight week! According to Freddie MAc, lenders are offering the 30-year fixed rate loan at the average 3.67% down from 3.75% a week ago.  


15-year fixed-rate loan average 2.94% down from 2.97% last week.  


Why are rates dropping?


Frank Nothaft, Freddie Mac economist, claims that reports showing weak growth in jobs and the economy.  This puts pressure to central bankers to keep rates down.  


With rent prices continuing to climb, home buying is becoming more appealing for some renters. 




To read the LATimes article, click here.

How to View An Open House

Whether you are just looking because you are considering to jump into the market or you have been searching for weeks and come across an open house near your neighborhood... here are some guidelines to make your Open House tour a pleasant experience.  


1. Have a Game Plan:  If you plan to give up an hour on a Sunday to view local open houses, set aside most of the afternoon.  This will allow yourself enough time to see each home and travel to the next one. 


2. Be Polite to the Real Estate Host: Even if you already are working with a real estate agent, don't give the agent house the cold shoulder. Smile and greet them.  Sign In, if you wish.  If the agent seems pushy or is trying to solicit your business, kindly tell him you already have an agent.  Thank them when you leave.  


3. Focus on the Property:  Prepared sellers will hand out a property description sheet with information like square footage, number of bedrooms and bathrooms and special features.  Use it to take notes and check off things as you walk through the house. 


4. Ask before you take pictures or record video:  The home is still someone's private residence so before you snap a photo or pull out the camcorder, ask permission. 


5.  Feel before you sit:  Some homes for sale are empty and staged with furniture.  Make sure to check the furniture is stable before plopping on the sofa or chairs. 


6. Look In (Not Rummage through) Closets, Built-In Drawers, and Cabinets:  Make sure there's enough storage in the home, but don't go through someone else's private belongings.  Check the width and depth of the closets, kitchen and bathrooms drawers, and cabinets.  And while you're at it, see if anything is broken or squeaks.  


7. Hold the Criticism til after you leave:  The seller calls the place home, so don't badmouth it during the tour.  Who knows who may be listening - the seller, a neighbor, a friend?  If you end up in a multiple offer situation where price and terms are similar, you don't want the seller choosing the other buyer because he heard you criticizing his home. 


8. Avoid TMI (too much information): There is nothing wrong with a conversation but keep the conversation foucs on the property and not about your situation and how your home search is going and when you need to move.  Use your best poker face.  Even if you've walked inot your ultimate dream home, don't show any emotion.  


Remember, the agent works for the seller so you don't want to share any information that could compromise your bargaining position.  


9.  Ask probing questions, politely:  It's okay to ask about the seller's motivation and if there are any offers.  Find out if there are special assessments or other fees.  It doesn't hurt to get the agent's insight on the neighborhood and nearby schools. 


NOTE: sometimes the open house is filled with open house agent than the actual listing agent who may or may not know the answers to your question.  


10. Listen to other buyers:  They may be your competition, but they may know something you don't about the property or he/she can't answer certain questions (like those that fall under fair housing laws).  


For more tips, advice and information on open house, visit FRONTDOOR's openhouse website.

This Month in Real Estate Video for June 2012

Click here to view This Month in Real Estate for June 2012