Real estate has finally started to bounce back across the country -- even roar back in some places.
Low mortgage rates and pent-up demand have coaxed buyers back into the market, and homeowners who list their houses are seeing more traffic. That quaint relic of the bubble, the bidding war, has even started to reemerge in some cities.
Consider the mounting evidence that the long national real estate nightmare is over: During the past year, home prices increased in 92 of the country's 100 largest metropolitan areas, according to data provider CoreLogic, with prices rising as high as 23% in Phoenix and 17% in San Francisco. Sales volume rose in 69 of the top 100 markets, and 35 of those showed double-digit gains.
Yet while most economists agree that the bottom is behind us and the five-year outlook for housing is on solid footing, the shorter term is shakier. "Two thousand thirteen and 2014 are going to be transition years," says Mark Fleming, CoreLogic's chief economist. "The market's improving, but it's not totally healed." How Much is Your Home Worth - FREE MARKET VALUE REPORT
BUYERS
Thinking about buying a home? For the first time in more than half a decade, the economics of the market are working against you in most places.
Inventory is tight, and bidding wars are back in some parts of the country. To snag your dream home, you'll have to pay up and contend with continuing strict loan requirements. The bright side: Despite rising prices and mortgage rates that are edging upward, buying a home is still cheaper than renting in the majority of the top 100 markets.
Don't waste time with a low-ball offer.
Yes, home prices are still way down from their highs, but the days when you could scoop up a house for 20% less than the list price are long gone. The typical home sells for pretty close to what the owners asked for, and even in shaky markets, sellers have gotten more realistic about pricing.
The median sales-to-list-price ratio in Detroit, for example, is 98%; the national number is 97%. (To find the figure for your market, go to zillow.com/local-info and click on "More metrics.")
Here's how to figure out how much to offer initially: In places where homes are still selling below list price but deals are being made in less than two months, come in no more than 2% to 3% below the asking price, says Michael Murphree, a realtor in Birmingham, Ala. Where homes are selling above the listing price, make your first offer the asking price.
Be the winner in a bidding war. How Much is Your Home Worth - FREE MARKET VALUE REPORT
In January and February, 73% of agents with broker Redfin said their clients' offers faced rival bids, up from 56% who said so in the fall of 2011.
You win bidding wars, of course, by raising your price; it also helps to have few contingencies and to move quickly, since today's sellers don't want multiple go-rounds. "You have to give your best offer," says Dallas real estate agent Mary Beth Harrison. "Step up to the plate or walk away." Be flexible about closing too: Quick deals -- the median time on the market for homes is 71 days, down from 99 a year ago -- have left many sellers scrambling for alternative housing. Leave the closing date blank on your contract for the seller to fill in, or negotiate a leaseback if the seller needs to stay put for a while.
Outsmart the pros who bring cash.
Thinking about investing in a rental property in a downtrodden market before prices there really start to take off?
To beat out the professional investors who have scooped up houses in these areas by offering all-cash deals, lead with your best offer; investors count on nabbing properties at a big discount and are unlikely to boost their bid by more than 5% to 10%. "They'll just move on to another house," Harrison says. Also include a bank prequalification letter or statement of funds to show that your money is as reliable as investors' cash.
Assess the risk in your local market.
Though prices have revived in most areas of the country, they don't all have the same staying power. In markets that bounced back last year merely because prices had fallen so far, you can't assume a continued streak; once investors clear out, demand will die down.
"In rebounding markets, recent price gains might not last," says Trulia chief economist Jed Kolko. Some near-term value setbacks may not be a problem if you plan to stick around for a long time, but a short time horizon calls for greater caution.
To get an idea of a neighborhood's prospects, start with the foreclosure rate heat map at RealtyTrac.com (click on "Stats & Trends" at the top). The deeper the color you see, the weaker the market's fundamentals. A broker should also be able to tell you whether cash-only offers dominate -- a sure sign of an investor-driven market.
Play bankers off one another.
While it's old news that credit unions and small banks tend to offer lower rates, they also can be less rigid about their underwriting, says Guy Cecala, publisher of Inside Mortgage Finance. To obtain your best deal, says Cecala, get a good-faith estimate from one lender (you'll have to shell out for a credit check). Then show the offer to other lenders and ask if they'll beat it.
Tactics like this will work, he says, because market conditions have changed: "Some lenders want to build up market share and are willing to offer more aggressive pricing than their competitors." In the past two months, he says, a few have sliced their profit margins on loans. How Much is Your Home Worth - FREE MARKET VALUE REPORT ######################################If you are considering selling your home located anywhere in Central Florida, please call Joe Bornstein, Broker/Owner of Rock Springs Realty. I welcome the opportunity to perform and provide you a FREE comparative market analysis on the current value of your property....all at no cost or obligation! The Central Florida market has the lowest inventory levels since 2005, interest rates are at historic low levels and demand in high. Call or email today. Toll# 877-333-2811, Office# 407-252-8092, joe@rockspringsrealty.net homes for sale in apopka fl, houses for sale in apopka fl, search homes for sale in apopka fl 32703, search homes for sale in apopka, fl 32712, apopka real estate, houses for sale apopka fl, homes for sale apopka fl, apopka homes for sale, houses for sale apopka florida, homes for sale apopka florida, apopka fl homes for sale, apopka florida homes for sale, villas and townhomes in apopka fl, houses for sale apopka, homes for sale apopka, list home in apopka, list home in apopka fl, mls apopka florida, mls apopka fl, homes for sale in orlando fl, houses for sale in orlando fl, search homes for sale in orlando fl, orlando real estate, homes for sale orlando fl, houses for sale orlando fl, orlando fl homes for sale, orlando fl houses for sale, orlando florida homes for sale, orlando florida houses for sale, orlando fl real estate, orlando real estate, mls orlando florida, mls orlando fl, list home in orlando fl, list home in orlando florida , sell your home, sell, sell home, sell home in apopka, sell home in orlando, list home, list your home, list your home in apopka, list your home in orlando, get home sold, listing agent, listing agent in apopka, selling agent in apopka, list home in apopka florida. www.rockspringsrealty.net, www.bestcentralfloridaproperties.com, www
As reported on Mortgage News Daily (www.mortgagenewsdaily.com) How Much is Your Home Worth - FREE MARKET VALUE REPORT
Americans' attitudes toward most key housing measures remained stable between February and March. The National Housing Survey conducted monthly by Fannie Mae showed continued optimism toward housing and the economy although there were emerging concerns about personal finances.
The percentage of the 1,004 persons surveyed who believe this is a good time to purchase a home remained essentially unchanged from February at around 73 percent but the percentage who believe this is a good time to sell reached a survey high of 26 percent compared to 25 percent in February and is double the percentage with that opinion one year earlier.
Forty-eight percent of respondents expect home prices to increase over the next 12 months, unchanged from February. This is the highest rate since the survey was first conducted in 2010. Only 10 percent expect prices to decrease, unchanged from February. How Much is Your Home Worth - FREE MARKET VALUE REPORT
The average expectation for a price increase has moderated slightly from the record high 2.9 percent voiced by respondents in February to 2.7 percent. Doug Duncan, Fannie Mae's senior vice president and chief economist points out that, while homeowners are optimistic they are cautiously so. 'While the survey shows a string of 17 positive one-year-ahead home price expectations through March, the average expected gains have remained below 3 percent. By comparison, main measures of national home prices in early 2013 posted year-over-year gains of at least double or triple that figure."
Half of those surveyed expect rents to increase in the next 12 months, the same as in February while only 4 percent expect them to go down. The average expectation for rent increases is 4.1 percent, up from 3.9 percent the previous month.
Forty-six percent of respondents expect interest rates to increase over the next 12 months, up from 45 percent while only 6 percent think they will fall further. The share of respondents who said they would buy if they were going to move fell 3 percentage points to 64 percent.
At 35 percent, the share of respondents who say the economy is on the right track is down 3 percentage points compared to February. Right track responses have been on a general downward track since November when they peaked near 50 percent.
The percentage of respondents who expect their personal financial situation to get worse over the next 12 months rose by 4 percentage points to 21 percent. Sixty-one percent report little change in household income, a number that has been virtually flat for the past year while those reporting higher expenses over the past 12 months ticked up slightly to 32 percent.
Fannie Mae conducts its telephone survey each month since June 2010 to assess the attitudes of Americans toward owning and renting a home, home and rental price changes, homeowner distress, the economy, and household finances. Both homeowners and renters are contacted for the survey which includes more than 100 questions. The bulk of data collection for the current survey occurred during the first two weeks of March.
How Much is Your Home Worth - FREE MARKET VALUE REPORT
According to sales and inventory numbers released in January, the December price of an existing home increased 11.5% during 2012. Housing had a strong year in 2012 as measured by existing homes inventory dropping by 21.6% during 2012, which reflected the brisk uptick in sales of 12.8% during the year. On September 19 2012, Federal Reserve Chairman Ben Bernanke announced the latest round of monetary stimulus dubbed "QE3".
The goal of QE3 is lowering the cost of mortgages. Many observers have equated these actions to the faint sound of printing presses churning out newly minted $100 bills coming from Washington D.C. The fear of inflation coming from monetary stimulus has caused people to seek inflation-protected investments, like gold bullion; however, the prospects for direct residential real estate investments are much more compelling. Real estate investments have a better ability to maintain their value during inflationary times; they have the ability to produce income in the form of rents.
The way that governments and economists measure inflation is the consumer price index. The headline index is comprised of a number of components, the largest of which is "homeowners' equivalent rent", or the rent that an owner would get if they did not live there. When seeking inflation protection for your assets, real estate is a natural choice because the income potential from a particular piece of real estate is part of the index used to measure inflation.
When interpreting this chart, consider it a good time to buy a home when the green line is below the blue line. The main cost of buying a home, its mortgage payment, is as low as it has been in a decade. All the while, the income potential from the property continues to climb. The blue line has a stable march higher, just like inflation, because it is in fact a component of inflation.
For those seeking a pure investment, real estate is certainly compelling for the protection of one's assets against the ravages of inflation; additionally, for those who need to make a choice between renting or buying the chart makes the decision pretty clear: "buying a house today is cheaper than renting one."
##################Are you looking to sell your home anywhere in Apopka, Orlando, or Central Florida. Call today for a no-obligation Comparative Market Analysis of your home's current value. We will also send you additional tips to maximize your net proceeds and reduce your selling time on the market. Contact Joe Bornstein, Broker/Owner, Rock Springs Realty. Ph# 877-333-2811, Cell# 407-252-8092homes for sale in apopka fl, houses for sale in apopka fl, search homes for sale in apopka fl 32703, search homes for sale in apopka, fl 32712, apopka real estate, houses for sale apopka fl, homes for sale apopka fl, apopka homes for sale, houses for sale apopka florida, homes for sale apopka florida, apopka fl homes for sale, apopka florida homes for sale, villas and townhomes in apopka fl, houses for sale apopka, homes for sale apopka, list home in apopka, list home in apopka fl, mls apopka florida, mls apopka fl, homes for sale in orlando fl, houses for sale in orlando fl, search homes for sale in orlando fl, orlando real estate, homes for sale orlando fl, houses for sale orlando fl, orlando fl homes for sale, orlando fl houses for sale, orlando florida homes for sale, orlando florida houses for sale, orlando fl real estate, orlando real estate, mls orlando florida, mls orlando fl, list home in orlando fl, list home in orlando florida , sell your home, sell, sell home, sell home in apopka, sell home in orlando, list home, list your home, list your home in apopka, list your home in orlando, get home sold, listing agent, listing agent in apopka, selling agent in apopka, list home in apopka florida. www.rockspringsrealty.net, www.bestcentralfloridaproperties.com, www.topcentralfloridahomes.com
The share of surveyed Americans who believe home prices will tick up in the next year reached the highest level to-date, at 43%, up 6 percentage points from November, according to Fannie Mae's December National Housing Survey results. The Fannie Mae National Housing Survey polled 1,002 Americans to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances and overall consumer confidence.
Consumer confidence in the housing industry continued its upswing as home prices, rental prices and mortgage rate expectations increased in November. Thus, the growing confidence that housing indicators will continue well into 2013 is expected to boost home price activity during the year. "Combined with consumers' growing mortgage rate and rental price increase expectations, the positive home price outlook could incentivize those waiting on the sidelines of the housing market to buy a home sooner rather than later and thus support continued housing acceleration," said Doug Duncan, senior vice president and chief economist of Fannie Mae. The average 12-month home price change expectation rose to 2.6%, the highest level since the survey's inception in 2010.
The percentage of those surveyed that believe mortgage rates will rise continued to increase, rising 2 percentage points to 43%, the highest level recorded since August 2011. About 21% of respondents suggest it's a good time to sell, down two percentage points from last month's record high. However, this is still a 10-percentage point increase year-over-year.
The 12-month rental price expectation hit the highest level since the survey's inception in 2010, at 4.4%, up 0.4% from last month. About 49% of those surveyed said home rental prices will go up in the next year. Also, the share of respondents who said they would buy if they were to move declined slightly to 66%.
However, consumer outlook toward the economy and personal finances due to the fiscal cliff and debt ceiling caused volatility in perceptions of the larger economy. "This uncertainty seems to be prompting a growing share of consumers to expect their personal finances to worsen and may contribute to weaker near-term economic growth," Duncan said.
Full Article: http://www.housingwire.com/news/2013/01/07/about-43-americans-expect-home-prices-rise #########################If you are considering selling your home located anywhere in Central Florida, please call Joe Bornstein, Broker/Owner of Rock Springs Realty. I welcome the opportunity to perform and provide you a FREE comparative market analysis on the current value of your property....all at no cost or obligation! The Central Florida market has the lowest inventory levels since 2005, interest rates are at historic low levels and demand in high. Call or email today. Toll# 877-333-2811, Office# 407-252-8092, joe@rockspringsrealty.net homes for sale in apopka fl, houses for sale in apopka fl, search homes for sale in apopka fl 32703, search homes for sale in apopka, fl 32712, apopka real estate, houses for sale apopka fl, homes for sale apopka fl, apopka homes for sale, houses for sale apopka florida, homes for sale apopka florida, apopka fl homes for sale, apopka florida homes for sale, villas and townhomes in apopka fl, houses for sale apopka, homes for sale apopka, list home in apopka, list home in apopka fl, mls apopka florida, mls apopka fl, homes for sale in orlando fl, houses for sale in orlando fl, search homes for sale in orlando fl, orlando real estate, homes for sale orlando fl, houses for sale orlando fl, orlando fl homes for sale, orlando fl houses for sale, orlando florida homes for sale, orlando florida houses for sale, orlando fl real estate, orlando real estate, mls orlando florida, mls orlando fl, list home in orlando fl, list home in orlando florida , sell your home, sell, sell home, sell home in apopka, sell home in orlando, list home, list your home, list your home in apopka, list your home in orlando, get home sold, listing agent, listing agent in apopka, selling agent in apopka, list home in apopka florida. www.rockspringsrealty.net, www.bestcentralfloridaproperties.com, www.topcentralfloridahomes.com
It is now official! The latest and greatest "fiscal cliff" legislation makes MI premiums tax deductible for premiums paid on home mortgages through December 31, 2013. This has been made retroactive for tax year 2012 since MI premium deductibility was previously allowed to expire on December 31, 2011.
The quick and dirty is that there will be no interruption in MI tax deductibility through December 31, 2013.
With this tax benefit renewed, it is a great time to consider all the options MI may be able to open up for your customers. This tax deductibility can make choosing traditional financing options more reasonable. Not only is MI tax deductible, it can also be cancelled giving your customer more control.Additional reporting from mortgage professional stated the following: With the recent passage of the American Tax Payer Relief Act of 2012, Congress extended the ability to deduct mortgage insurance the same as qualified residence mortgage interest. This applies to homes with private mortgage insurance, FHA mortgage insurance (upfront and monthly) as well as VA and USDA funding fees.
A qualified home, as described by the IRS, is your primary residence or your second home. You cannot collect rent on your second home or it’s…. (are you ready for this?) an investment property and not eligible for this deduction.
This benefit is phased out for adjusted gross incomes over $100,000. Here is a chart compliments of MGIC regarding how much one may be able to deduct based on AGI:
The amount of mortgage insurance paid is disclosed on the Form 1098, along with the mortgage interest that was paid during that year.
For more information, please contact your personal CPA or tax professional. I am not a CPA. ######################
On Wednesday January 9, 2013, Joel Bornstein, Broker/Owner of Rock Springs Realty became a Certified Movoto Agent (www.movoto.com) covering all of the Orlando, Apopka, and Central Florida Region. About MovotoAt Movoto, we want to make real estate transactions easy for everyone. We're a licensed brokerage in over thirty states and we've made it our business to bring together everything you need when you're buying or selling a house. Since 2005, our colorful photo galleries, accurate listing information and top-rated agents have helped over 2,000 people purchase real estate. Our door is always open - come on in. Movoto's Mission
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