Top 10 US metros for price appreciation

Zillow stats showcase markets off the beaten path

By Inman News
Inman News®

Editor’s note: This article is based on data compiled by Zillow, using the Zillow Home Value Index.

Metro areas off the beaten path like Tulsa and Oklahoma City, Okla., bucked national trends to win a place on a top 10 list of markets with the greatest year-over-year median home-value increases from October 2010 to October 2011, based on data compiled by Zillow. None of the top 20 U.S. metro areas by population size cracked the top 10.

The Tulsa metro area topped the chart at a 6.2 percent median home value increase to $101,000 — the lowest value of the top 10 — in that one-year timespan, followed by Oklahoma City’s metro area at a 3.1 percent bump. However, the rosy home value increase news fades by No. 10 on the list — the Green Bay metro area — where a place in the top 10 no longer represents an increase in median home value, but a sliver of a decline — 0.3 percent.

Metropolitan Pittsburgh, at No. 22 in U.S. metro population size with 2.35 million people in 2010, according to U.S. Census data, was the most populated metro area in this top 10 list, coming in at No. 8, with a slight median home-value increase of 0.4 percent, and, interestingly, the only metro area in the top 10 to experience a population dip from 2000 to 2010.

Metro areas in this top 10 averaged a 1.6 percent median home-value increase over the one-year timeframe, with six of the 10 having median home values hovering around $100,000. Honolulu, Boulder, Fort Collins and Madison stretched the upper end of the spectrum with median home values of $474,200, $304,000, $217,300, and $192,400, respectively.

Metro: Tulsa, Okla.

Tulsa Skyline via Shutterstock

Metro: Oklahoma City, Okla.

Flickr/Matthew Rutledge

Metro: Lincoln, Neb.

Lincoln, Nebraska Sign via Shutterstock

Metro: Madison, Wis.

Madison on the Water via Shutterstock

Metro: Honolulu, Hawaii

Flickr/Mike McHolm

Metro: Fort Collins, Colo.

Mountains backdropping Fort Collins via Shutterstock

Metro: Fort Myers, Fla.

Fort Myers Beach via Shutterstock

Metro: Pittsburgh, Pa.

Flickr/Sakeeb

Metro: Boulder, Colo.

Flickr/Aidan M. Grey

Metro: Green Bay, Wis.

]]> http://www.nwhomesearch.com/2011/12/top-10-us-metros-for-price-appreciation/feed/ 0 http://www.nwhomesearch.com/2011/12/what-buyers-are-looking-for/ http://www.nwhomesearch.com/2011/12/what-buyers-are-looking-for/#comments Wed, 14 Dec 2011 17:55:58 +0000 Troy Anderson http://www.nwhomesearch.com/?p=1811 Read More]]>  

Some buyers are looking for a home that’s located in a specific neighborhood. Others have more flexibility regarding where they live. But most buyers share one thing in common: They want a home that’s in move-in condition.

Start working on attracting buyers to your home by putting the property in good condition before it goes on the market. In most cases, it’s not a good idea to show your home to a prospective buyer before it’s ready to be shown. Photos should also wait until your home presents itself well.

Pay attention to “curb appeal”; first impressions are lasting. Some buyers drive by without taking a look inside if they don’t like the way a house looks from the street. The yard should be clean and tidy. Replace the front lawn if it’s dead; the same goes for plants that have seen better days. Flowering plants make your home look festive and inviting.

Peeling paint should be touched up, if possible. If an entire exterior paint job is called for, consider changing the color scheme to enhance the appeal. One seller repainted the exterior of his home before selling without consulting his agent or a colorist. He repainted using the existing color scheme, which was out of date. The house didn’t sell quickly. When it did, the first thing the buyers wanted to do was change the color of the exterior.

Repair deferred maintenance, particularly if it’s visible from the street. You want to convey the impression that your home has been well maintained. If you can’t afford to repair and paint the white picket fence in front of your house, it would be better to remove it than leave it.

Houses that don’t have much architectural appeal can often be improved by the addition of shutters. Houses that don’t show much from the street can be enhanced with an architecturally intriguing gate or entryway. You want to peak buyers’ interest in seeing what they can’t see from the street.

HOUSE HUNTING TIP: List with an agent who can provide wide exposure for your home, including extensive Internet advertising. The vast majority of homebuyers search for homes online. Buyers discount Internet listings that do not have photos, and they gravitate toward those with many photos and quality photos. Make sure that the agent you list with will not put your home on the multiple listing service or Internet without plenty of quality, representative photos — 15 or more is good.

The importance of Internet advertising should not be underestimated. The Internet is global and available 24/7. Buyers often find the listing they want to buy on the Internet before their agent has seen it. After surfing the Internet, some buyers decide to buy outside the area they were focusing on if they see something elsewhere that appeals to them.

Local marketing may work in some cases, but you wouldn’t want to cut yourself short. Broad exposure of your listing to the market is an integral part of selling.

Although the buyer for your home could come from anywhere, you do want it to be exposed to the local agents. Your agent should hold the listing open for real estate agents as soon as it’s ready to be shown. Repeat broker open houses may be necessary to make sure a representative number of agents see the listing.

Public open houses are good exposure. Some buyers still find the home they buy at an open house. However, they don’t pay off like they did during the bubble market. Encourage private showings, which require that you make it easy for agents to show your home to their buyers.

THE CLOSING: The best way to attract buyers to your listing is to price it right for the market. Otherwise, all of your efforts will be for naught.

By Bill and Kevin Burnett
Inman News™

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Q: Our house was built around 1940; the fireplace is original; and we installed forced-air gas heating about 10 years ago. We haven’t had the fireplace or furnace inspected. What do you guys recommend to get the fireplace and the furnace ready for winter?

A: Regular inspection and servicing of fireplaces and furnaces adds to comfort, makes them more economical, and most important, keeps them safe. Regular inspections can prevent a deadly house fire or the introduction of a silent killer: carbon monoxide.

Here’s our checklist to keep you cozy and safe during the winter months:

Wood-burning fireplaces

1. Inspection by a certified chimney sweep is a must. For heavy use, the chimney should be inspected and cleaned annually. Go up to five years if the fireplace is used only occasionally. The sweep should inspect for proper operation of the damper and for cracks in the flue liner, as well as sweeping the flue to remove creosote and other combustion byproducts.

2. Close the damper when the fireplace isn’t in use.

3. Install a chimney cap if you don’t already have one. You don’t want creatures building their nest in your flue.

4. When starting a fire, “prime” the flue by holding lighted newspaper at the back wall of the firebox to start the warm air rising.

5. Burn aged, dry hardwood if possible. Fir or pine burns hot and deposits creosote in the chimney. Don’t burn construction debris. It may contain toxic chemicals that will vaporize in the fire and could enter the living space.

6. Do not clean out the fireplace when the ashes are still hot. And dispose of the ashes in a place where wayward embers won’t start a fire.

Fireplace with gas starter

1. If the flame goes out, wait at least five minutes before attempting to relight the fireplace. This allows time to clear the fireplace of gas.

2. Be alert for unusual odors or odd-colored flames, which are often a sign that the fireplace is not operating properly. In such cases, contact your dealer or licensed technician for servicing. Contact the gas company if you smell gas when the unit is off.

Gas furnace maintenance

1. An annual maintenance check of a gas furnace extends the life of the appliance and ferrets out any hidden problems. A qualified heating contractor should vacuum out the unit, inspect the blower motor, inspect the heat exchanger for cracks, check the electronics and perform a multipoint checklist to make sure the furnace is operating properly.

2. Clean or replace the furnace filter frequently during the heating season. This ensures that air returning from the inside of the house is unobstructed and clean when entering the combustion chamber.

3. Keep vents, space heaters and baseboards clear of furniture, rugs and drapes to allow free air movement.

4. Ensure there is free airflow around your furnace and make sure there are no storage items obstructing airflow.

5. Do not store or use combustible materials, such as chemicals, paint, rags, clothing, draperies, paper, cleaning products, gasoline, or flammable vapors and liquids in the vicinity of the furnace.

6. Carbon monoxide is a colorless, odorless and lethal gas that can occur any time there is incomplete combustion or poor venting. Any home that contains fuel-burning appliances, such as a fireplace or furnace, should have a carbon monoxide alarm installed according to the manufacturer’s instructions.

Disclaimer: The information that I am sharing here is NOT to promote KeyBank. As a professional REALTOR®, representing both buyers and sellers, it is my responsiblity to have a broad knowledge of available financing to achieve my client’s home ownership (or home sale) goals. Lender guidelines vary, the most significant of which is FICO score minimums. I have experienced some lender FICO requirements as high as 720. KeyBank’s 620 benchmark is extremely borrower friendly.

The 100% program is actually called the ‘Key Community Mortgage‘. I entered the meeting a skeptic. I left a believer. And I can’t wait to share this incredible financing opportunity with my clients. No other lender that I am aware of is offering a truly obtainable community mortgage such as this. I was even able to get a glowing recommendation about the program from a title officer who I know and trust, who has successfully closed a Key Community Mortgage.

Meeting Summary

Question: Why is KeyBank offering this program? It seems too good to be true, or too good to last.
Answer: This is Key’s way of meeting federal requirements for community investment.

Question: What does this mean, realistically, in terms of purchase price and interest rate, for the borrower?
Answer: A $500 minimum investment, approximately .25% add on to the interest rate (example: yesterday’s rate was 3.875% + .25% over yesterday’s FHA rate), and, based on income guidelines, works ideally on a purchase price up to $200,000.

Question: Are the funds available for this program limited, capped or budgeted?
Answer: NO

Cool Program Details

  Minimum FICO score is 620. This is also true for their FHA and VA loans.

  Income limits are based on Borrower’s Income only, not Household Income, which is problematic sometimes with Utah Housing Loans (another 100% option)

  Income limits do not apply in Target Areas (refer to the program guide, pages 6-9, to determine tract income level of subject property and financing guidelines)

  No First Time Homebuyer Requirement

  No Mortgage Insurance, so the .25% rate add is a non-issue

  Can be used to refinance at 90% CLTV

  And, the coolest of the cool, is that each Key Community Mortgage is manually underwritten. Aha! A lender that realizes that a person, and their life, cannot simply be reduced to a three digit number and an underwriter guideline.

For More Information Contact: Mark Sweere, Mortgage Advisor Phone: 425-223-8805 Email: mark_a_sweere@keybank.com

Tell Him You Read About the Program Here!

The county’s “housing affordability index” score, a measure devised by the Washington Center for Real Estate Research at Washington State University, hit a record high of 127 in the third quarter.

That means a typical family’s income was 27 percent higher than what it needed to make payments that won’t bust the household budget on a median-price house.

The third-quarter score topped the previous high of 124.6, recorded in the second quarter of 1998. The all-time low — 65 — came in the third quarter of 2007, when home prices reached their peak. The median price of existing houses resold in King County in July, August and September that year was $472,000.

The median price for the third quarter this year was $350,000, the center’s latest score card says, down 10.3 percent from the same quarter last year.

Interest rates also hit new lows, said Glenn Crellin, the center’s director, and the county’s median family income — despite persistent high unemployment — remained relatively stable.

“You put those three together and you get greater affordability,” he said.

The median price of houses sold in King County in October — a month not included in the calculations — fell to a new post-bubble low of $320,000, according to Northwest Multiple Listing Service statistics released last week.

If that signals a trend, it could push the affordability score even higher, Crellin said.

To calculate the index score, which it has tracked since 1994, the center plugs in the county’s median family income (a measure that excludes one-person households), the median price of all resold houses (not including new construction or condos), and the average interest rate on mortgage loans.

It assumes a 20 percent down payment and a 30-year fixed-rate mortgage. It also assumes 25 percent of the family’s income will go to pay principal and interest.

Snohomish County’s third-quarter affordability-index score was 171.5. It was 185.4 in Pierce County, 160.7 statewide.

Interest rates are the big driver in improving affordability, said Tim Ellis, who writes the real-estate blogSeattlebubble.com.

Prices have slipped to 2004 or 2005 levels, he said, but higher interest rates back then meant buyers were paying more each month on conventional mortgages.

“It’s a great time to buy if you want to keep your monthly payments low,” Ellis said.

By some measures, it’s now cheaper to own than to rent in the Seattle area. Mortgage payments for median-priced condominiums are 35 percent lower than rent for the average two-bedroom, two-bath apartment in King County, apartment-research firm Dupre + Scott said in its October market report.

The standard mortgage payment on median-priced houses sold in the county in September is $400 a month less than rent on the typical house, it added.

But monthly payments aren’t the only consideration when people decide whether to buy. Financing remains a problem for many, Dupre + Scott said, and many consumers, especially younger people, value the flexibility of renting.

Then there’s the continuing slide in home prices. That makes some potential buyers hesitate, Ellis said — especially when they realize that just to break even, they must sell their homes for about 10 percent more than they paid to cover commissions, taxes and other closing costs.

Homeownership is dropping and will continue to do so, Brian Fritz, a vice president with apartment developer Avalon Bay Communities, said at a real-estate industry breakfast this week.

That’s partly because more people who could buy are choosing to rent, he said: “They tell me, ‘Why would I buy something that will be worth less tomorrow?’ “

In addition to its overall housing-affordability index, the Center for Real Estate Research calculates an index for first-time buyers. That one assumes a lower down payment, slightly higher interest rate, lower income and less-expensive house.

King County’s third-quarter score was 67.5, suggesting affording a starter home remains a challenge for many.

Still, it’s probably less challenging than in the third quarter of 2006, when that index hit an all-time low of 38.6.

Eric Pryne: 206-464-2231 or epryne@seattletimes.com

Time to Fall Back!

Brought to you by Team Troy @ Keller Williams Realty

www.nwhomesearch.com or call us 206-504-3660

In other news, the Yen has been steadily climbing in value over the US Dollar, but the country put a halt to the increasing value of the Yen.  They did this to help make their exports more attractive and it helps to make our US Dollar stronger and our exports to Japan less attractive.  This has hurt the US Stocks a bit today.

Overall though, the stock market should finish up for the month of October.

Rates are still at an all time low and there is still time to be “Home for the Holidays!”

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SEE ALL OPEN HOUSES:http://www.bellevueseattlehomes.com/listings/areas/49247/propertytype/SINGLE,CONDO,MULTI,LAND,MOBILE,INCOME,COM,RENTAL/listingtype/Resale%20New,Foreclosure%20Bank%20Owned,Short%20Sale,Lease%20Rent,Auction/openhouse/1/

Annual real estate sales rise for 3rd straight month (CHARTS)

National median home price declines 3.5%

By Inman News
Inman News™

At a glance: Existing-home sales (September 2011):

Source: National Association of Realtors.

Existing-home sales rose year over year for the third straight month in September, according to the latest monthly report from the National Association of Realtors.

Sales of single-family homes, townhomes, condominiums and co-ops increased 11.3 percent last month to a seasonally adjusted annual rate of 4.91 million. Existing-home sales have been rising by double digits on an annual basis since July. On a monthly basis, sales fell 3 percent in September, compared with a 7.7 percent rise in August.

Nationwide, existing homes sold for a median $165,400 last month, down 3.5 percent from September 2010. Distressed homes, typically sold at discount, accounted for 30 percent of sales last month (18 percent were foreclosures, 12 percent were short sales), down from 35 percent a year ago, the report said.

Unsold inventory fell 2 percent in September to 3.48 million — an 8.5-month supply at the current sales pace.

All-cash buyers, most of whom are investors, accounted for 30 percent of purchases last month, up slightly from 29 percent in September 2010, according to a separate NAR survey. Investors accounted for 19 percent of sales last month, up from 18 percent a year ago. First-time buyers made up 32 percent of sales, unchanged year over year.

“Existing-home sales have bounced around this year, staying relatively close to the current level in most months,” said Lawrence Yun, NAR’s cheif economist, in a statement.

“The irony is affordability conditions have improved to historic highs and more creditworthy borrowers are trying to purchase homes, but the share of contract failures is double the level of September 2010. Even so, the volume of successful buyers is higher than a year ago and is remaining fairly stable — this speaks to an unfulfilled demand.”

Eighteen percent of survey respondents reported contract failures last month, unchanged from August but up from 9 percent in September 2010.

“Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including home inspections and employment losses,” the report said.

Regionally, the Northeast was the only region to see existing-home sales rise on both a monthly and annual basis. Sales rose 2.6 percent month to month and 6.8 percent year over year to an annual level of 790,000 last month. The region’s median price fell 3.3 percent year over year to $229,400.

The Midwest saw sales rise the most on a yearly basis in September: up 17.2 percent, to 1.09 million. Sales dipped 0.9 percent compared to August. The region also saw the smallest median price slip compared to a year ago: 1.4 percent to $137,400.

The South also saw a double-digit annual increase in sales last month: up 10.5 percent to 1.89 million. Sales fell 2.6 percent compared to August. The region’s median price fell 3 percent year-over-year to $144,400.

Though existing-home sales rose 10.7 percent year-over-year last month in the West, the region also saw the biggest decline in sales compared to August, an 8.8 percent decline to 1.14 million.

Yun attributed the decrease to lenders lowering mortgage loan limits in case sales didn’t close before the expiration of higher conforming loan limits at the end of September.

The West also saw the biggest year-over-year price decline, -4.5 percent, to $207,400.

In a separate report, the California Association of REALTORS® reported sales of existing, single-family homes in the Golden State fell 2.1 percent month to month in September, but rose 4.1 percent year over year, to an annual rate of 487,940 units. The state’s median price fell even more precipitously last month than in the region as a whole: down 8.3 percent to $287,440.

Nationwide, sales rose on an annual basis in all price ranges last month, with homes under $100,000 seeing the biggest jump, according to the NAR report.

Homes $250,000 and under accounted for 70 percent of all existing-home sales.

Source: National Association of Realtors.

Among 19 metro areas tracked by NAR, all but two saw sales rise year over year in September. Miami-Ft. Lauderdale, Fla., saw the biggest jump (34.1 percent), followed by Minneapolis-St.Paul, Minn. (27.7 percent) and New Orleans (27.3 percent).

Median prices fell year over year in all but five metros. Atlanta saw the biggest decline (15.7 percent to $94,000), followed by Miami-Ft. Lauderdale (11.8 percent to $180,000). Only Indianapolis, New Orleans and San Antonio saw their median price rise more than 1 percent.

Source: National Association of Realtors.

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http://www.bellevueseattlehomes.com/listing/mlsid/185/propertyid/280010/syndicated/1/cgltguid/8A2401B8-1425-4368-B660-D2D61C929B6E/?ts=crg

Listing Courtesy of Troy Anderson, Keller Williams Greater Sea