Sellers, Make Your Home Shine Brighter than the Competition!

With so many homes for buyers to choose from, sellers, now more than ever, have to make their home shine brighter than the competition.

Here's a link for some great ideas to set the stage. And remember, in a "Buyer's Market", the buyer is always right!

This has been a busy summer and have not had time to post. The 2009 Indian Market was a huge success in Santa Fe and business has ticked up a bit. I am keeping busy with more buyers and several really nice listings. Still swamped with real estate work, but thought I would share some more positive news in my industry from this recent article:

Positive Signs: Home Prices on an Upswing in Second Quarter 2009Read more:

RISMEDIA, August 26, 2009-Data through June 2009, released by Standard & Poor’s for its S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, show that the U.S. National Home Price Index improved in the second quarter of 2009. The S&P/Case-Shiller U.S. National Home Price Index- which covers all nine U.S. census divisions- recorded a 14.9% decline in the 2nd quarter of 2009 versus the 2nd quarter of 2008. While still a substantial negative annual rate of return, this is an improvement over the record decline of 19.1% reported in the 1st quarter of the year. The 10-City and 20-City Composites recorded annual declines of 15.1% and 15.4%, respectively. These are also improvements from their recent respective record losses of -19.4% and -19.1%.
“For the second month in a row, we’re seeing some positive signs,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s. “The U.S. National Composite rose in the 2nd quarter compared to the 1st quarter of 2009. This is the first time we have seen a positive quarter-over-quarter print in three years. Both the 10-City and 20-City Composites posted monthly increases, as did most of the cities. As seen in both seasonally adjusted and unadjusted data, there are hints of an upward turn from a bottom. However, some of the hardest hit cities, especially in the Sun Belt, show continued weakness.”
As of the 2nd quarter of 2009, average home prices across the United States are at similar levels to what they were in early 2003. From the peak in the second quarter of 2006, average home prices are down 30.2%.
The 10-City and 20-City Composites posted their second consecutive monthly increases. Both indices were up 1.4% in June over May, and up 0.5% in May over April. Eighteen of the 20 metro areas saw improvement in their annual returns compared to those of May. Looking at the monthly data, the same 18 metro areas reported positive returns in June.
In spite of the recent positive data, the overall numbers remain weak, with all metro areas and the two composites posting negative annual returns, and 15 out of the 20 metro areas reporting double digit annual declines. While not alone, Las Vegas and Detroit continue to be two markets that are struggling severely. These are the only two markets that fell in June and saw deterioration in their annual rates of return. Since their relative peaks they have fallen 54.3% and 45.3%, respectively.
More upbeat news is seen in the monthly data across other markets; Dallas and Denver have reported four consecutive months of positive returns. In addition to the two composites, 13 of the MSAs reported positive monthly returns for June that were greater than +1.0%.
The table below summarizes the results for June 2009. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data.

2009 Q2 2009 Q2/2009 Q1 2009 Q1/2008 Q4 1-Year

Level Change (%) Change (%) Change (%)

U.S. National

Index 132.64 2.9% -7.4% -14.9%

June 2009 June/May May/April 1-Year

Metropolitan Level Change (%) Change (%) Change (%)

Area

Atlanta 107.52 1.5% 0.5% -13.7%

Boston 152.71 2.6% 1.6% -5.9%

Charlotte 120.66 0.7% 0.9% -9.6%

Chicago 124.99 1.1% 1.1% -16.7%

Cleveland 106.38 4.2% 4.1% -3.0%

Dallas 119.68 2.7% 1.9% -2.2%

Denver 126.92 2.5% 1.3% -3.6%

Detroit 69.49 -0.8% 0.2% -25.0%

Las Vegas 107.31 -2.0% -2.6% -32.4%

Los Angeles 160.90 1.1% -0.1% -17.8%

Miami 145.37 0.5% -0.8% -23.4%

Minneapolis 113.48 3.1% 1.1% -19.8%

New York 171.49 0.4% 0.2% -11.9%

Phoenix 104.73 1.1% -0.9% -31.6%

Portland 148.47 1.0% 0.1% -15.2%

San Diego 147.31 1.6% 0.4% -16.0%

San Francisco 124.70 3.8% 1.4% -22.0%

Seattle 149.53 0.4% -0.3% -16.1%

Tampa 140.90 0.4% 0.0% -19.5%

Washington 174.32 2.8% 1.3% -11.8%

Composite-10 153.20 1.4% 0.5% -15.1%Composite-20 141.86 1.4% 0.5% -15.4%

For more information, visit http://www.standardandpoors.com/.

Read more: http://rismedia.com/2009-08-25/positive-signs-home-prices-on-an-upswing-in-second-quarter-2009/#ixzz0PIMrKYHC

What's Going on with Inflation and Interest Rates?

Whats Going on with Inflation and Interest Rates?by Barry Habib, Chairman, Mortgage Success Source

With concerns over inflation increasing, FOX Business News called in Mortgage Success Source’s Barry Habib to break down what’s really going on and what it means to consumers. Watch as Barry Habib, who is chairman of Mortgage Success Source, explains how inflation impacts rates and what to look for in future!

Watch This Informative Video Now!

As Chairman of the Board, Barry Habib is the driving force behind Mortgage Success Source. With more than 23 years experience in the mortgage industry, Barry is recognized as an expert in mortgage and housing. In addition to his mortgage experience, Barry has successfully managed a Hedge Fund, authored a stock advisory newsletter, owned an insurance agency, and acted as managing partner in a real estate investment company. Barry’s financial advice and experience is highly sought after by major news networks, like CNBC and FOX, and he is a highly recognized speaker in the banking and mortgage industry.

Existing-Home Sales Rise 3.6% in June

Things are looking up!

Ok, I'm a little lazy with this post, but I have actually been very busy with real estate. A good read none-the-less.

Signs of Change: Existing-Home Sales Rise 3.6% in June

RISMEDIA, July 24, 2009-Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June, according to the National Association of Realtors®.
Existing-home sales-including single-family, townhomes, condominiums and co-ops-increased 3.6% to a seasonally adjusted annual rate of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2% lower than the 4.90 million-unit level in June 2008.
Lawrence Yun, NAR chief economist, is hopeful about the gain. “The increase in existing-home sales occurred in all major regions of the country,” he said. “We expect a gradual uptrend in sales to continue due to tax credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many Realtors® are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year.”
A June survey of NAR members shows 3% experienced at least one lost sale as a result of the new Home Valuation Code of Conduct, with seven out of 10 reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85% report a perceived reduction in appraisal quality.
“Clearly the process needs to be revised, but the most logical approach is to use appraisers with local expertise, industry designations and access to local data, who make a physical examination of the property and use apples-to-apples comparisons with nearby home sales,” Yun said. “In many cases, normal homes are being compared with distressed homes sold at a discount, which often are in subpar condition-this is causing real harm to both buyers and sellers.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.42% in June from 4.86% in May; the rate was 6.32% in June 2008. Mortgage interest rates have trended lower in recent weeks.
Total housing inventory at the end of June fell 0.7% to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May. Raw inventory totals are 14.9% below a year ago.
“This is another hopeful sign-if we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,” Yun said.An NAR practitioner survey in June showed first-time buyers accounted for 29% of transactions, unchanged from May, and that the number of buyers looking at homes is up nearly 12 percentage points from June 2008.
NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are very good opportunities. “Despite some of the challenges, the housing market continues to demonstrate signs of recovery,” he said. “The temporary first-time buyer tax credit is clearly helping people make a decision and is contributing to the overall stimulus impact, but since it’s taking longer to close transactions, many would-be beneficiaries may not be able to take advantage of the credit before the December 1 expiration date. As a consequence, consumers need the expertise of Realtors more than ever to navigate both the obstacles and opportunities in today’s market.”
The national median existing-home price for all housing types was $181,800 in June, which is 15.4% below June 2008. Distressed properties, which accounted for 31% of sales in June, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Single-family home sales rose 2.4% to a seasonally adjusted annual rate of 4.32 million in June from a level of 4.22 million in May, and are 0.2% higher than the 4.31 million-unit pace a year ago. The median existing single-family home price was $181,600 in June, which is 15.0% below June 2008.
Existing condominium and co-op sales jumped 14.0% to a seasonally adjusted annual rate of 570,000 units in June from 500,000 in May, but are 3.1% below the 588,000-unit level in June 2008. The median existing condo price was $183,300 in June, down 18.9% from a year ago.
NortheastRegionally, existing-home sales in the Northeast rose 2.5% to an annual pace of 820,000 in June, but are 4.7% below a year ago. The median price in the Northeast was $249,400, down 5.9% from June 2008.
MidwestExisting-home sales in the Midwest increased 0.9% in June to a level of 1.10 million but are 1.8% lower than June 2008. The median price in the Midwest was $157,000, which is 9.1% below a year ago.
SouthIn the South, existing-home sales rose 4.0% to an annual pace of 1.81 million in June but are 3.7% below a year ago. The median price in the South was $163,200, down 11.9% from June 2008.
WestExisting-home sales in the West improved by 6.4% to an annual rate of 1.16 million in June, and are 11.5% higher than June 2008. The median price in the West was $214,800, which is 24.9% below a year ago.
For more information, visit http://www.realtor.org/.Read more: http://rismedia.com/2009-07-23/signs-of-change-existing-home-sales-rise-36-in-june/#ixzz0MEinhc7f

Market Confusion?

In a CNN interview, Warren Buffet was talking about coping with the current economy. He said, “If you are fearful and confused, you don’t get over being fearful until you get over being confused.”

Not all homes are created equal in the Santa Fe market. For people looking to buy a home here, the cost per square foot is all over the board. The range can be anywhere from $180 per square foot to over $1,000 per square foot! "On paper" a listing may look great when you're calculating price per square foot, but when you actually see it, disappointment settles in.

So how do you avoid the confusion? So many things need to be factored in when trying to determine market value: location, views, finish level, details, materials used, single or two story, lot size, floor plan, design, functional and economic obsolescence and more. Work with a professional who knows the market inside and out.

Now to address the other part of Buffet's statement: getting over being fearful. Start by defining what you're fearful of. Are you terrified of overpaying and not buying at the very bottom of the market? Do you think a better house will come on the market if you wait? Are you thinking interest rates will go down even further?

Remember, there won't be a red light indicator to announce that we have finally arrived at the bottom of the market. You have to watch the market closely and look for the indicators. Things like prices stabilizing, more properties selling, fewer discounts, and a closer balance of supply and sales.

Santa Fe was relatively insulated from the rest of the country with foreclosures and rapid appreciation. Unlike the Las Vegas, Miami and California markets, Santa Fe grew at a conservative, steady pace. I believe that built stability into our market and helped preserve equity.

No one likes to overpay and everybody wants the lowest interest rate. I believe that our market hit the bottom about 2 months ago and has stabilized. While I think prices will be somewhat flat for the next 3 years, interest rates will not. Look for increases in the next 9 to 12 months. And when rates go up, I believe it will be so fast, almost overnight and with a 1 to 2% move. Take advantage of the low prices and maximize your buying power with low interest rates.

Hope you're a little less confused after reading this. I'm always happy to meet with you in person and talk in-depth about the various factors in the Santa Fe real estate market. I love the City Different and am happy to help demystify your home buying or selling process however I can.

Time to Buy!

Timing is everything! A few weeks ago on a Friday, we were blessed with a foot of fresh snow at Ski Santa Fe. The bummer was that the ski area had closed two weeks prior, so to take advantage of this "gift," you had to hike up the mountain on your own. Not an easy task considering the elevation starts around 9,500' above sea level up to over 12,000'!

On Saturday, the weather cleared with lots of sun and just a little bit of wind. The conditions were perfect. Waiting another day would turn the light, fresh powder into mush which wouldn't be worth skiing. I seized the opportunity and had a blast, not to mention a great workout.

Our current real estate market conditions are somewhat the same. Timing is everything. The upside today is that home prices have come down and interest rates are ridiculously low. But there's a downside looming around the corner--inflation. The current administration is spending so much money that inflation is inevitable. Your hard earned dollar will have less buying power with inflation.

So what does inflation do for the real estate market? My research indicates that one way inflation will affect the real estate market is by causing interest rates to go up. Some estimates indicate that by the end of the year, we'll be looking at 6.75% on a 30-year fixed mortgage (non-jumbo). Today, they're around 4.75%. So what will a 2% shift cost you? Well, on a $400,000 mortgage, that 2% difference will cost you more than $500 more per month! Here's a link to a great article with more details.

Talk about less buying power! That same mortgage payment on $400,000 at 4.75% is equal to, more or less, about a $320,000 mortgage at 6.75%, so you just lost $80,000 of buying power. Not my idea of a good deal!

The time is NOW not only to acquire real estate at a low price, but also to get the most out of your money with a fixed mortgage at a low interest rate. Carpe Dinero!

Spring Snow Storms

Spring time in New Mexico! You just never know what the weather will do. Last Monday, I thought that I had skied my last run at Ski Santa Fe by hiking up (ski area closed April 5th) and skiing the fresh foot and a half of snow they received. Then, another storm rolled through on Friday and dumped another foot of powder. Just too much to resist, so hiked up again with a few friends and, as you can see from the picture, had a great run down Parachute.

The local real estate market is kind of like the weather, somewhat unpredictable, but exciting none-the-less.

There seems to be a bit of a positive shift in the market with buyer confidence gaining ground. With tax day behind many buyers, they are getting out and about and taking advantage of low prices, good selection and low interest rates. Showing activity is up on my residential listings, but land is still very, very slow.

The second home segment of the market is lagging behind, so prices are more negotiable than they have been in the past. So if you're considering a second home, now is a great time to cut a deal.

Santa Fe offers a great quality of life, a lot to do for the active lifestyle, incredible weather, world-class dining, culture and natural beauty. What more could you want? Live your dream!