Title Insurance Explained

This is a great video about Title Insurance, which is a product that almost always has to be purchased when someone purchases a property, and most people pay it without questioning it, but they don’t really understand it. We’re always happy to explain and talk about this charge, as well as all other charges involved in purchasing real estate. Don’t be afraid to ask.

 

 

 

Affordability Grows Out of Reach in Some Housing Markets

 

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

As we continue to closely watch the housing recovery, it's interesting to point out how markets can contrast wildly with one another right now.

For instance, some housing markets are either chugging along slowly or still struggling to get values up to a level that pulls more local homeowners out of low or no equity situations. And other markets are so hot that you'd think the downturn never happened.

One of the statistics that is strikingly different in individual markets right now is affordability.

In some markets, we're still seeing some of the most affordable housing situations in decades. But in other markets where prices have risen more rapidly, affordability has already become an issue once again, pricing out some families.

John Burns Real Estate Consulting this month released data showing the share of median household income devoted to home mortgage payments recently surpassed historical averages in six of 30 major U.S. housing markets.

Five of the markets were in California – San Francisco, Los Angeles, Orange County, San Jose and San Diego. The sixth was Portland, Ore.

Burns said that during the downturn, prices in those cities were more affordable than their historical averages dating back to 1980. But prices have risen rather quickly along with the recovery.

Couple that fact with rising interest rates on mortgages and it's potentially a dangerous mix for first-time buyers in these markets who may struggle to get the right price point. Rates are still really low by historic standards, but a slight increase can make a huge difference in affordability for many families.

This new state of affordability for the six markets identified by John Burns should be a red flag for buyers who may be on the cusp. There's no time like today to make a move. Economists expect rates on mortgages to keep climbing. And in markets facing restricted supply, values will continue to increase a fast clip due to demand.

We will continue to watch these six markets, as well as the recovery at the national level. But for now, it seems like an obvious time to say "Carpe diem!" if you've been waiting to buy your first home.

Collection of Links

We’ve collected some great blog posts and articles that we think you will enjoy. Let us know if you think one is more useful than another, and if you implemented any of the ideas presented here.

  10 Things You Probably Own Too Much Of

In our household we have too much (according to this article from Apartment Therapy) of all 10 of these things. We’re working on it, and to start we picked sheets. We’re probably least emotionally attached to those, although we do like our sheets.

  Top 10 Home Improvements that Pay You Back

USUALLY you get some of your money back when you sell your improved home. However, be sure to check conditions in your area. Most of the time the cosmetic, somewhat quick improvements like painting pay off. Sometimes bathroom and kitchen improvements pay off, but it depends on how much you spend, and it’s sooooo easy to overspend. Be careful here, and be sure to take your Realtor’s advice.

  How Fast Can You Buy a Home?

The answer for Buyers is probably, “Not fast enough!” Well, a real estate transaction today is almost always not fast enough for anybody involved in the transaction. This article helps Buyers get everything lined up to have the fastest possible transaction, which, again, is almost always, “Not fast enough.”

  10 Things Burglars Don’t Want You to Know

In many local residential areas, it’s very easy to get very carefree about leaving our things out and about, and not worrying about theft. But, we can all be just a little more conscientious about our possessions, and making our property less inviting to burglars.

How to Prevent Mold & Mildew

This article suggests how we can prevent the common household problem. The video explains how to get rid of it once we get it, which we probably all do at one time or another.

House Flipping Heats Up at the High End

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

If house flippers flooding all ranks of the real estate market eight years ago was the sign of the impending market downturn, then what does it mean that investors are embracing high-end flipping today?

Reuters this week ran a story that looked at a growing trend in the flipping of high-end homes. "Flipping" is the term we give when someone buys a house at a low price, usually invests a bit – or a lot – of money in remodeling, then sells for a nice profit.

Flipping was once a street sport where you'd find just about anyone regardless of investing or real estate experience partaking in markets across the U.S. But it faded out pretty quickly when the downturn hit the housing market.

Even Jeff Lewis, star of Bravo's "Flipping Out" has since pivoted to a design services model.

It's back – but in a different form. And it could mean better things for the market rather than being an ominous sign for rampant speculation and decline.

This time, what Reuters reports is more flipping with luxury homes. According to Reuters, the number of flipped homes valued at $1 million or more has risen nearly 40% nationwide since 2011. It's important to note that RealtyTrac defines a flip as a home that's been purchased and sold within six months.

RealtyTrac cites a few specific markets where high-end flipping is rampant. Luxury house flipping was up 867% in Orlando between 2011 and 2012, and increased 456% in Phoenix. To get a deeper sense of what these percentages mean, the number of flipped high-end homes in Orlando went from 3 to 29 during this time, from 27 to 150 properties in Phoenix, and from 10 to 73 properties in Las Vegas.

What's driving this activity?

Well, as one source tells Reuters, the opportunity in flipping at the low end has all but dried up. And despite more risk with more dollars at the high end, the investments have paid off handsomely for those investors who know what they're doing.

I like to look at it as another example of why real estate is never just one story. With so many markets each centering on different local economies and so many different levels of each of those markets – low to high end – it's almost impossible to make blanket statements about the state of housing.

But it's easy to see how the growth in investment at the high end is a positive overall. If nothing else, the confidence investors must have going into these high-end deals is a wonderful strength that eventually will help strengthen overall confidence in the greater housing market.

Top 5 Reasons for Buying



August Newsletter

Reminder: We are not printing newsletters to mail out so if you want a hard copy of this great little piece you can print out the PDF. Enjoy!

http://teampatereau.files.wordpress.com/2013/08/over-the-fence-august-2013.pdf

Pending Sales Slip in June, but Soar Above Last Year's Levels

 

By Gino Blefari, President and CEO, Intero Real Estate Services, Inc.

 

Pending home sales, a key indicator pointing to short-term market projections, eased back from a six-year high in June as rising interest rates and restricted supply began to impact buyers.

 

The National Association of Realtors' latest Pending Home Sales Index was down 0.4% in June from 111.3% in May, but still 10.9% above the same month a year ago when it was 100%.

 

Regionally, the pending sales index fared the best in the West where it jumped 3.3% to 114.2% and is 4.4% above where it was a year ago. The index remained unchanged in the Northeast at 87.2, while coming in 12.2% higher than year ago levels.

 

In the Midwest, the index fell 1% to 114.3%, but was 19.5% higher than it was a year ago. And pending sales in the South fell 2.1% to an index of 118.3% in June, which was 9.5% higher than the same month last year.

 

Does this mean summer is over and markets will ease through the end of the year? Not necessarily.

 

The fact that pending sales are still notably higher across the U.S. than they were at this time last year bodes well. What we're seeing in the month-to-month slippage is more likely to be from the recent rise in interest rates, as well as continued low supply in markets where there is healthy demand.

In some places, buyers are either getting outbid due to excessive competition or they simply cannot find a home that suits their needs.

Because of this, new construction is another indicator we all should watch closely. I expect to see much more aggressive building in the next five years in markets where land is abundant.

 

With demand so high and interest rates still incredibly attractive, many markets could probably see sales increase substantially if there were more opportunities to buy.

 

Pending sales may have slipped, but the fact is the market is still moving pretty well in many areas. Supply is the wildcard this year.

 

Watch the video on the NAR's Pending Home Sales Index by clicking below:

 

 

Prize Drawing at Open House

2 Homes on 1 Lot - For Sale - 328 4th Street, Gilroy

As you can see from the pictures, this property needs some work. This is an AS IS sale so we got all the inspections (Property, Roof, Termite) and have the reports, along with the title report at the property and available to email to you. We’re going to have 328 open on Saturday & Sunday because it is vacant. The other house, 324, is rented so we’ll make an appointment for you to see that one. Just contact us. This is a probate sale, but it does not require court approval.

Property Flyer.

Summer's "Life Hacks"

We like most of these ideas. We think you might like a few of them too. However, about #2: Really? A great big bottle of shampoo at the beach. We think that's a dead giveaway that something's in that bottle besides shampoo.