Realtor Satisfaction

This post dedicated to making Realtors feel valued and feel good.

Home Sales to Remain Steady as Prices Expected to Rise in 2014

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

Now is the season when we start hearing a lot of predictions for the housing market in 2014. So what’s the prognosis?

I was at the National Association of Realtors conference in San Francisco last week and the group’s Chief Economist Lawrence Yundropped some numbers to paint a picture of what he expects going into next year.

So far, Yun is expecting a flat pace of sales – not a huge jump or a decline – and a 6% increase in prices. He’s also expecting interest rates to climb from their current average of 4.16% to 5.4% by the end of 2014.

Thanksgiving Pre-Prep

15 days until Thanksgiving. Time to talk Turkey. Let’s start with the pre-prep and get that oven ready for the big day. Here are some tips.

A Salute to a Very Special Veteran

This is Rick’s boot camp picture. He’s just as handsome today.

2013 Marine Corps Birthday Message: “Enduring Fortitude, Unfailing Valor”

Team Patereau is made up of a lifelong Marine, and a lifelong Marine supporter. Happy 238th Birthday Marine Corp. Semper Fi!

Electronics Recycling Opportunity

Gilroy Intero is sponsoring an E-Waste Recycling Day. Bring all your old and unwanted electronics by the office parking lot. So easy!

Delinquent Borrowers More Optimistic on Housing

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

Homeownership is a value that seems to be under constant assault in the media. Between the recent Nobel Prize winner who claims that owning a home is a bad investment to the frequent reports that our younger generations aren't equipped to buy homes, you'd think the real estate market was tanking.

That's why a recent survey of the ownership attitudes of delinquent borrowers caught my eye.

Fannie Mae's national survey finds that delinquent mortgage borrowers' views toward the housing market have become more favorable in 2013 compared to 2012, and the majority believes in the personal and financial benefits of homeownership.

This is significant news because this is a group of owners whose views on housing we would assume would be negative because of the bad feelings associated with falling behind on house payments.

But in 2013, delinquent borrowers' attitudes were positive overall and moved closer to that of the general population. The survey found that this group expects home prices will go up; they believe buying a home is a safe investment and say that it's highly likely they'll buy a home on their next move.

What Buyers Don't Want

This is pretty much what buyers want in the Gilroy area. Tell us what you don't want in your next home.

Happy Halloween

Keeping Mortgages Accessible

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

Access to mortgages has been a hot-button issue ever since the days of the housing boom. Back then, the issue essentially was loose underwriting that swayed so far in one direction that we ended up with a slew of borrowers who were in over their heads.

Then, as the housing recession set in and regulators started coming down on lenders, we saw a reverse in the opposite direction. For many months, lending became so tight that a lot of people no longer qualified to borrow money for a home.

A Magazine for Intero’s Premier Properties

By Alain Pinel, General Manager of Intero Prestigio international, Intero Real Estate Services, Inc.

This month marks the release of the 8th issue of Intero Prestigio Magazine.  Composed of some of the finest luxury estates Intero has to offer, this Prestigio Virtual Magazine gives you a glimpse into the world of high-end homes.  It was designed with ease of circulation in mind, so it can be instantly shared through social media, websites, or email.  As if reading a handheld magazine, you can browse through gorgeous pictures and find the property information and unique qualities of each one of the unique homes featured.

Prestigio is a division of Intero Real Estate Services specializing in the marketing of high end homes and estates in all relevant markets, whether local, regional, state-wide, national and international. We offer the widest scope of marketing coverage to multiply the opportunities of reaching the most qualified buyers.

It is wonderful to see how the program has become the reference in the industry for this type of publication and the standard by which others are judged. The release of our eighth issue attests of the mark that Intero has established in the global high-end market.  Take a look at the beautiful homes that are the finest in the San Francisco Bay Area and beyond… you just might find your next home.

 

View the virtual magazine yourself here.

Housing Shows Signs of Seasonal Cooling

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

Seasonal cooling in the housing market is normal and expected. And it appears we're now entering that period of cooling off, with existing home sales down in September after hitting post-recession highs.

Total existing home sales, including single-family homes, townhomes, condos and co-ops, fell 1.9% to a rate of 5.29 million last month from August, according to the latest numbers from the National Association of Realtors. However, sales are still trending 10.7% above year-ago levels.

Even as sales slowed, the national median existing-home prices for all housing types was $199,200, 11.7% above levels seen in September a year ago. This also marked the tenth consecutive month of double-digit annual increases in home values.

Buyers are Optimistic



Over the Fence - October

Late getting this up this month, but there are several items that might be helpful as we finish out October. Enjoy!

Seasonal Tips for a Great Looking Property This Fall

by Blog Contributor, Charlene Storozuk, Dezigner Digz

It’s hard to believe that fall is already upon us. Summer may be over, but now is not the time to neglect a home’s exterior, especially if it’s going to soon be listed for-sale this season. Here are a few tips to help you embrace the fall season and keep your property looking its best:

The most obvious tip: rake up leaves on a frequent basis;

Inspect your gutters regularly and remove any leaves that get trapped;

More…

Housing Gets a Solid B+

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

Slowly but surely, we're seeing more and more metropolitan areas return to pre-recession activity levels, giving more steam to the housing recovery at the national level and more confidence in housing overall.

In its latest data release, the National Association of Home Builders found that 52 out of approximately 350 metro areas nationwide have now returned to or exceeded their pre-recession activity in housing. NAHB's latest index puts housing at 85% of normal activity.

We're in solid B+ territory if we were to grade housing like a college professor.

The Government Shutdown And Housing

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

We're a little over a week into the government shutdown and many are wondering whether the closing of federal offices has or will impact the housing market.

The short answer at this point is no. But since none of us can predict how long this may last or what the outcome may be, it's hard to say with certainty that no glitches will arise.

Fannie Mae and Freddie Mac back the majority of mortgages in the U.S., and thus far have not been affected by the shutdown. However, the Federal Housing Administration is operating with a reduced staff, which means that FHA loans may experience delays in processing due to the lack of staff.

In fact, news sources say that the Department of Housing and Urban Development, which oversees the FHA, has just 64 of the nearly 3,000 employees who normally work at its offices reporting to work right now.

Features Buyers Value When Purchasing a Home

 

Low Interest Rates Continue to Fuel Housing

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

Remember earlier this year when interest rates started to rise and everyone worried that it spelled the end of the housing recovery? As interest rates have crept up for long-term mortgages throughout much of the summer, many have speculated the impact on home buying as inevitably negative.

 However, we're not seeing much evidence to support that.

Mortgage rates have continued to be really attractive throughout the year, with rates on the 30-year fixed-rate mortgage averaging 4.32% in Freddie Mac's survey last week, down from 4.5% the previous week. It marked the lowest level for rates since the week ending July 25.

Although rates on long-term mortgages are still higher than they stood a year ago, it's amazing how low they've remained and how it has yet to completely derail buying activity, as some expected.

FHA to Continue Lending During Shutdown

Applications for all government-backed mortgages will continue to be processed during a government shutdown, according to the U.S. Dept. of Housing and Urban Development (HUD).

HUD originally said on Friday that it would stop working on applications for loans guaranteed by the FHA if the government shutdown. However, it reversed that position over the weekend.

HUD said it will continue processing loans "in order to support the health and stability of the U.S. mortgage market."

Fannie Mae and Freddie Mac also said their operations will be unaffected by the shutdown. The GSEs pay for their operations out of the fees collected from lenders.

6 Ways to be a Good Neighbor

Developing relationships with your neighbors can make your life easier and your community safer—and may result in lasting friendships. The good news is that it’s easy to extend acts of courtesy to those who live close by.

Welcome new people to the neighborhood. Stop by and introduce yourself. Baking cookies is a traditional way to extend a warm welcome, but you can also bring them recommendations for local services, such as babysitters or landscapers; a children’s activity kit filled with coloring books, crayons, and games; or a list of local phone numbers.

Little gestures can go a long way. Offer to collect your neighbor’s mail, water their plants or feed their pet while they’re on vacation. If that’s too much of a commitment, you might offer to keep an eye out on their house while they’re away.

Keep up your house and yard. This will help maintain property values while keeping the neighborhood as a whole looking its best. Mow your grass regularly, trim your shrubs as needed, and make façade repairs in a timely manner.

Walls have ears. If you live in a condo or townhouse, think twice before plugging in noisy appliances near your neighbor’s walls. A television, a hair dryer or even the beep of a microwave may be a little white noise for you but an annoyance for your neighbors.

Know the news. Whether or not you’re head of your community watch program, there are always chances to help out. Keep your neighbors informed of relevant news, such as upcoming construction or recent crime. Extra eyes and ears are always welcomed.

Return kind gestures. If a neighbor lends you something, whether it’s their tools or their time, return the gesture quickly. It’s easy to move along with your project and forget they’ve done you a favor, so be sure to show your appreciation in a timely manner—your gratitude won’t be overlooked.

American Home Shield is providing the information for general guidance only. Due to the general nature of the property maintenance and improvement advice in this material, neither American Home Shield Corporation, nor its licensed subsidiaries assumes any responsibility for any loss or damage which may be suffered by the use of this information.

Home Sales Hit Highest Level in Six Years

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

Home sales ended the summer on a high note, reaching their highest level in over six years in August. Prices went along for the ride, with the median price trending nine consecutive months of double-digit year-over-year increases.

Recovery meets growth. Now we're making serious progress.

According to the most recent data from the National Association of Realtors, total existing-home sales – including single-family, condos, townhomes and co-ops – increase 1.7% to an annual rate of 5.48 million in August. The pace was up from 5.39 million in July and 4.84 million in August 2012.

How is Real Estate Benefiting From IPOs These Days?

Alain Pinel, General Manager of Intero Prestigio international, Intero Real Estate Services, Inc.

You know you’ve been in the real estate business for a while when, not only can you talk about the various market cycles of the past, but you actually experienced them first hand….You had a blast riding the good ones, and you somehow survived the bad ones. It makes for a great conversation piece at cocktail parties. You can offer your best take on why the up cycles usually last longer than the down slides and try to rationalize why it did not work that way during the last recession…

All Realtors have the nostalgia of good times, when sellers are getting a hefty price for their home in no time and most buyers are feeling no pain buying their dream home when they want and where they want. For me, the time my memory takes me to when thinking about good times is the late 90’s in Northern California. The market was hot. Crazy might be a better adjective in fact. Properties were moving as quickly as warm baguettes in a Parisian boulangerie in the early morning. Prices were being re-evaluated upwards every month, which did not slow the buying pace any as plenty of new money was available and anxious to be spent.

Buyer Questions

Change in FHA Guidelines Allows More People to Be Eligible

This article by Princeton Capital Admin is great news for many former homeowners in Gilroy and the surrounding area. Team Patereau works with Princeton Capital right in our office and will be happy to refer you to one of our expert loan officers to get you qualified.

If you lost a house to foreclosure or had to sell a home while in the foreclosure process, take a deep breath. You could be eligible to buy a home again sooner than you think.

The U.S. Department of Housing and Urban Development (HUD) released Mortgagee Letter 2013-26 which is the new guidelines allowing previous homeowners with a black mark on their credit history to qualify for a new mortgage as soon as 12 months after foreclosure or pre-foreclosure sale (typically a short sale), down from the 36-month minimum window set under previous guidelines.

Forbes magazine is reporting that there is a current surge in new eligibility from the homeowners who were foreclosed or had a short sale between September 2007 and August 2010 and became eligible under the old guidelines. This new guideline allows people who were foreclosed or had a short sale between September 2010 and August 2012 to also now become eligible again for a home loan.

Not all of these people will want to be homeowners again. Also from Forbes:

The ability and willingness of boomerang buyers to re-enter the market over the next year will be a key bellwether of the long-term health and direction of the U.S. housing market going forward for the next decade, and possibly beyond. The more who re-enter the market sooner rather than later — possibly spurred on by this new FHA rule enabling them to do so — the more likely we’ll see a return to a typical home ownership-dominated society and the more quickly institutional investors will pull out of the single family rental market and move on to other ways of making money.

So let’s talk about the new guidelines.

Guideline Particulars

Seasoning requirements on bankruptcies and foreclosures/short sales can be shortened if a borrower experiences and Economic Event. An Economic Event is defined as any occurrence beyond the borrower’s control that results in loss of employment, loss of income or a combination of both which causes a 20% reduction in household income.

Borrower must meet the following guidelines:

• Verify good credit prior to event
• Verify month of loss of employment/income with written VOE or written termination notice or other publicly available documentation AND documentation of receipt of unemployment income.
• Document household income decreased by 20% during a period of more than 6 months (income from all individuals residing at the borrower’s primary residence at the time of the Economic Event and who was a co-borrower on the borrower’s previous mortgage). Need signed tax returns or W2 evidencing prior income
• Post Economic Event Income. Verify and document borrower’s income after the onset of the economic event.
• Re-establish satisfactory credit for the past 12 months. No lates on housing payment
• Complete Housing Counseling and obtain certificate at least 30 days prior to loan application and no more than 6 months prior. All borrowers, including non-occupant co-borrowers must be on certificate.

Preparing For Getting Pre-Approved

Your best bet when buying a home is to be pre-approved and not just pre-qualified. Gather up:

• Employers’ names, addresses and phone numbers from the last 2 years
• Consecutive pay stubs
• W2s or 1099s from the last 2 years
• Completed federal income tax returns
• Proof of income from other non-employment sources
• Government-issued identification
• Recent statements from all of your checking, savings, money market, stocks, bonds, mutual funds and retirement accounts.
• Outstanding loans and credit card statements
• Student loan statements
• Divorce decree if paying alimony or child support
• If you have filed for bankruptcy, have all of that documentation as well.

Talk to a reputable loan officer about your situation. They spend a lot of time on the new programs and guideline changes and will work diligently to help find a good solution for your situation.

 

Pros and cons of renting vs. buying a home

 

We have been talking to a young couple about whether they should rent now because of their particular situation, or whether they should just go ahead and buy. There are certainly many things to consider, and we think this article from Zillow will be helpful. Let us know what you think.

At some point in your life, you will ask yourself the question, “Is it better to rent or to buy?” and the answer is almost always: “It depends on the state of housing and your circumstances.”

After 2008, when the U.S. economy bottomed out and the housing bubble burst, the standard belief that it’s always better to own, rather than rent, was turned on its head. When home values plummeted and many people found they were upside-down in their mortgages (owed more than the home was worth), the American dream of owning was shattered and renting was suddenly the desired living style.

That’s why the “Rent vs. Buy” question requires people to examine all the elements of the decision, since where we live is an emotional decision as well as an economic one. Here’s one way to break down the issues:

Pros of Renting

• Lower cost upfront – As a renter, you will be required to pay first and last month’s rent and perhaps a security deposit for a pet. If you buy, you will be required to pay a hefty down payment, plus costs for the home inspection, closing costs and other potential items such as a survey and sewer scope. It’s a difference of a few thousand dollars if you rent compared with tens or even hundreds of thousands of dollars if you buy.    Freedom and flexibility – If you are new to the area, you can rent and use this time to check out neighborhoods to see where you might possibly want to buy. By renting you can test an area without committing to it.

• Invest money elsewhere – You can take money that would normally be spent on a down payment and house costs and invest in the stock market or other investment opportunities that could get a better return on value, depending on location.

• Uncertainty in your career -- If you think you might need to move in the near future, or are mulling job changes where you could be relocated elsewhere in the country, renting affords the freedom to come and go as needed.

• Uncertainty in income – If you expect a pay hike or pay cut in the near future, that can change your borrowing ability as well as impact your ability to pay a mortgage.

• Time to establish credit – Got bad credit? By creating a history of on-time rental payments, it can help you build good credit that you would need to qualify for a mortgage.

• No maintenance – When the pipe leaks under the sink, you don't head to your nearest hardware store, you head for the telephone and call the landlord.

• Incidental expenses – Occasionally, the landlord might pick up costs for utilities such as water, sewer, garbage, and in some cases heat and hot water as well.

But there are downsides, too:

• You may have no control over the fluctuation of your rent
• You might be limited in decorating the home or apartment.
• You won’t build equity in your home.
• You are subject to the landlord’s decisions.

Pros of Buying

• Build equity – When you pay rent, you don't own anything. When you pay a mortgage, you increase your degree of ownership in your home with every payment. Also, you can borrow against your ownership (or equity) in the home to pay for major purchases and you can refinance your home at favorable rates to help fund major purchases.
  
• Tax deductions – You can deduct mortgage interest as well as your property taxes. Uncle Sam doesn't give renters this bonus. Not only that, but if you meet certain requirements the IRS won't apply a "capital gains" tax on your profits from the sale of your home. In addition, those who work from home may be eligible to take deductions for their home office and portions of utilities.
  
• Creative control – You like dozens of pictures on the wall? Well, hammer away -- they are your walls now. Like the color mango? Go ahead and paint. Wish you had another room? Go ahead and add one.
  
• Maintenance choices – If you own a home, you can decide how to approach maintenance, either doing it yourself or picking your own contractor. If you live in a rental, you are at the mercy of the landlord when repairs are made and how.
  
• Pride of ownership – It might not make sense for everyone, but having a home you own is still the ultimate American Dream.

While a home can be a good investment – and let's face it, you have to live somewhere – many financial experts caution against purchasing a home simply as an investment. Also, keep in mind that the dynamics of real estate markets across the U.S. vary greatly. This reality requires each consumer to be fairly sophisticated not only in terms of their own finances, but about all the data for the market in which they are looking.

 

Thanks, Zillow, for this insightful article.

Summer Magic Started in April for Home Sellers

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

When is the best time of year to list a house for sale?

It's a question asked as often as when is best to buy.

Historically, summer has been the fastest season for home sellers. That was also the case in 2013, as many sellers across the country experienced higher sale prices and shorter time on market.

Now that summer is coming to a close, we can look back on the season and make some observations – perhaps even pinpoint at which point of the summer is most optimal to hang the for-sale sign. Data released last week from realtor.com found that homes that were listed in April benefitted most with shorter days on market and higher sale prices.

The reason April was pinpointed as the sweet spot is because as summer progressed, more sellers put their homes on the market, spiking inventory a bit and slowing down the market slightly. It's a simple matter of supply and demand.

Renters: Make Sure Your Security Deposit Is Safe

For those of us considering moving out of our rentals, securing your security deposit can be a make-it-or-break it moment for our finances, as you will most likely be needing a security deposit for wherever you’re headed. Unfortunately, many renters never see their security deposit again. Recently, Rent.com surveyed 1,000 U.S. renters, and the results were startling:

More than a quarter (26 percent) of all renters have lost their security deposit at some point

37 percent of men and 44 percent of 18-24 year olds said they did not get their deposits back because they moved out early

More women (9 percent than men (3 percent) lost a deposit due to pet damage

End of Summer Housing Trifecta Tells a Good Story

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

Three highly watched housing indicators were released at the close of summer last week, giving us a high-level view of how housing is performing. While sales of existing homes appear to be slowing, negative equity and the foreclosure market are improving substantially, thanks in part to increasing home values.

Let's take a look at all three data releases below.

Pending sales slow

In the National Association of Realtor's latest index of pending sales, we saw a 1.3% decline in July from June. However, the forward-looking indicator was 6.7% above the same month a year ago.

Friday the 13th - A Poem

Friday The 13^th

To many the number thirteen
is a number to avoid and beware of,
add Friday in front of the number,
and you have a very scary day

To me the number thirteen,
has always been always been a lucky one,
and Friday the thirteenth,
even luckier still

Then again, if you are superstitious
any number can be unlucky.
If you want to think it so,
it just depends on how positive you are.

Now if you think negative,
you will be that way to,
so in your thinking,
just be like me.

Positive is lucky, negative is unlucky,
so train you mind,
to think positive
all the time.

By: David Harris
13 July 2007

8.3 Million Homeowners Will Soon See the Light

 

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

Here's a bit of fantastic news in the housing market: 8.3 million homeowners are about to resurface from the doldrums of negative equity.

Given the abysmal situation with lack of homes for sale in many markets nationwide, the takeaway from this news is that we could be looking at a lot more inventory becoming available by the beginning of 2015.

We hope.

According to RealtyTrac, 8.3 million homeowners, or about 18% of homeowners with mortgages, will gain enough equity to sell their homes in the next 15 months without resorting to short sales.

Top 5 Reasons You Need a Real Estate Agent

Here's our September newsletter. Enjoy!

 

September Newsletter

Home for Sale - 7471 Miller Avenue, Gilroy

The Past, The Future, and The Present

 

 

Alain Pinel, General Manager of Intero Prestigio international, Intero Real Estate Services, Inc.

 

Let’s talk economy and real estate, shall we?  The Past, we know. We’ve been there. The Future, long term, we kind of know or want to believe we do, but if we don’t that’s OK because we are not there yet. Now, what about the Present and the weeks ahead? Tough read or guess. The picture looks better than in years past for the economy in general and real estate in particular, but (there is always a “but” it seems like these days), we have a hard time figuring out where we really are. Too hazy out there; too many question marks and conflicting signals.

 

Part of the uncertainty has to do with the season. We are still dozing from the summer heat and the vacation fever. We can’t wait to reach September, with what it traditionally means in terms of rebounding business activity. However, this year, we are slowly sliding into the fall market the way bathers get into the water, one toe at a time and with apprehension. Don’t get me wrong, the real estate activity, hot over the first 5 months of the year, is still pretty good , but (here we are again!) we have the feeling that the speed of the recovery is stuck in 3rd gear while we expected to be in 4th. What’s between the foot and the accelerator pedal?

 

I can think of 3 main reasons. Here they are:

• The Fed’s song & dance on whether and when to start scaling back the stimulus is creating more confusion than good. Many buyers and sellers are frozen in place until they know what comes next. The easy money policies which have pumped billions into the economy have produced new records on Wall Street and propelled real estate out of the crisis and into new historical highs. That was yesterday. We know that the money faucet is going to be turned down in a few days or weeks. The mere mention of this inevitability has already caused the cost of mortgage money to go up 30% or so. It’s not going to get any better. Rates are still amazingly low however and seeing so many would-be sellers today dangerously waiting on the sideline rather than putting their home on the market to meet the pent-up demand, is at best mind boggling. Can you hear me screaming from where you stand?

• Investors, large or small, domestic or foreign, are largely gone. Their shopping spree has been huge, while it lasted. Taking advantage of cheap financing or the power of cash from 2009 to 2011, at a time when prices were at or close to bottom levels, small investors have been gobbling up millions of distressed properties throughout the US. During the same time, the big guys, institutional investors, put their name on some of the crown jewels in both commercial & residential properties with a big price tag. No more. With a better than double digit price appreciation last year and again so far this year, real estate in the most desirable regions is now out of reach or no longer attractive to speculators. Cannot count on foreign investors to make up the loss. In addition to the price hike, unfavorable exchange rates and weakening economies have severely reduced purchases. That’s especially the case for Indian’ buyers from the old country, a group which has had a huge impact on sales in California & New York over the last few years. With the rupee’s on-going fall against the dollar, these providential prospects have lost their buying power. Even the Canadians, who account for nearly a quarter of the international sales in the US, are now slowing their purchasing appetite, with a 9% decline y/y.

• Lack of clarity in terms of economic priorities. In a dream world, most everyone has a job and wages go up nicely and faster than the cost of living. We are not there. How do we get there or at least steer in the right direction? What comes first? The jobs? The wages? How? When? It takes money to buy real estate. It takes jobs to make money. It takes growth to create jobs. The results, so far, have been sweet & sour. Economic growth has been steady but far from inclusive. Jobs have multiplied but most of them are precarious and low-pay. The prospect of a “part-time economy” is hardly motivating & mobilizing at a time when we need people to commit to long term goals, like buying a home and raising a family.

It will take a little bit more time to switch to high gear and foster significant & sustainable growth for businesses and individuals. The 4th Quarter is going to be the test. It should be a good one in our industry after a long summer transition. It’s a new market, with plenty of good opportunities and plenty of good reasons to take advantage of them. Time for action. If you are looking to sell your home or buy one, waiting is not an option.

 

Renter Beware

Renters are being cautioned all over the Bay Area about rental scams. Please watch this Channel 11 NBC News report if you are a renter, or know someone who is.

When Team Patereau rents one of the properties we manage, we make appointments at the property to show prospects. If the prospect likes what they see we then give them an application. The prospect has met us and received our business cards with our business address and contact information. We don’t take applications until the prospect has seen the property.

If you have any questions about renting and the services we provide, please contact us.

 

 

 

Home Values Inching Closer to Record High

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

Have you checked out the sale-to-list price of some of the homes in your neighborhood recently?

I have. And the difference was over six figures.

Realizing of course, that home prices are different across markets, neighborhoods and school districts, something definitely has hit the value vein in the housing recovery.

The National Association of Realtors reports the median home price, $213,500 in July, was just 7.3% off the record high in 2006 when it was $230,400.

The median price was 13.7% higher than the same period a year ago, and the 17th consecutive month prices have risen year over year.

Clearly, values have bounced back.

But it's important to note that median literally is the middle number between the highest and the lowest. So the bounce back doesn't necessarily mean there's a recovery at all price points or for all.

Existing home sales also were up in July – increasing 6.5% to a seasonally adjusted annual rate of 5.39 million from 5.06 million in June. The pace of sales was 17.2% higher than July 2012.

NAR says that monthly existing home sales have now remained above year-ago levels for 25 months.

Along with the rise in values, inventory levels are also increasing, though still too low to fully meet demand in some markets. Total housing inventory at the end of July climbed 5.6% to 2.28 million existing homes for sale, representing a 5.1-month supply at the current sales pace.

Restricted inventory is the reason for the above-normal price growth in many markets.

The last piece of our housing snapshot is interest rates, which clearly have been increasing. Average rates on 30-year conventional fixed-rate mortgages were 4.37% in July, up from 4.07% in June. The question going forward will be how much will rates rise before starting to remove large swaths of buyers from the market?

We're likely to see all of these trends continue to the end of the year, making 2013 pivotal in the big picture of the housing recovery.

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.