Brian Leavitt, REALTOR®

Lowest interest rates on record

This is an excellent time to refinance.  Northstone Mortgage rates are significantly lower than the national average.  Check them out at northstonemortgage.com

 

Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), coming on the heels of the Federal Reserve's recent announcements. The conventional 30-year fixed averaged an all-time record low at 4.01 percent; likewise the 15-year fixed averaged an all-time record low at 3.28 percent for the week. Of the five regions surveyed in Freddie Mac's survey, the West region recorded the lowest average rate for the 30-year fixed dipping below 4.00 percent to 3.95 percent.

30-year fixed-rate mortgage (FRM) averaged 4.01 percent with an average 0.7 point for the week ending September 29, 2011, down from last week when it averaged 4.09 percent. Last year at this time, the 30-year FRM averaged 4.32 percent.

15-year FRM this week averaged 3.28 percent with an average 0.7 point, down from last week when it averaged 3.29 percent. A year ago at this time, the 15-year FRM averaged 3.75 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.02 percent this week, with an average 0.6 point, matching last week when it also averaged 3.02 percent. A year ago, the 5-year ARM averaged 3.52 percent.

1-year Treasury-indexed ARM averaged 2.83 percent this week with an average 0.6 point, up from last week when it averaged 2.82 percent. At this time last year, the 1-year ARM averaged 3.48 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac, reports, "Fixed mortgage rates fell to all-time record lows this week following the Federal Reserve's announcement of its Maturity Extension Program and additional purchases of mortgage-backed securities. Interest rates for ARMs, however, were nearly unchanged as the Federal Reserve plans to sell $400 billion in short-term Treasury securities, which serve as benchmarks for many ARMs."

"Meanwhile, the spring and summer home-buying season gave a boost to a number of house price indexes. The Federal Housing Finance Agency reported that its National index (not seasonally adjusted) rose for the fourth consecutive month in July. Similarly, the S&P/Case-Shiller® 20-City composite index, which has a broader scope of properties, rose 0.9 percent between June and July with 17 of the cities experiencing positive monthly growth. Finally, CoreLogic® reported that its index, excluding distressed sales, increased at a 1.7 percent monthly rate for the same month."

U.S. Cities Where Homes Sell the Fastest - Seattle #2

In a recent article where CNBC uses Zillow's data to rank cities across the US, Seattle Ranks number 2 behind two Bay Area Powerhouses, San Francisco and San Jose(tied for first) Below is the complete article.

Although the U.S. housing market continues to struggle, many local markets are doing significantly better than the country as a whole, with some places virtually missing the housing bust altogether.

While shifts in home values are important in any market, it's important for sellers to determine the length of time a property can expect to be on the market before it will be sold. The faster that homes sell, the faster an inventory backlog can be cleared, suggesting heightened demand and an upward trajectory in prices. Additionally, if a home is on the market for an extended period of time, it may may turn off prospective buyers and force sellers to accept less-favorable offers.

To find the cities where this trend is the most extreme, real estate website Zillow.com analyzed the numbers to identify the cities where homes sell the fastest, according to the median number of days on the market. The numbers presented here are representative of home sales between mid-April and mid-July 2011.

During this time, the national median for time spent on the market stood at 117 days, while New York (168 days), West Palm Beach (175 days), and Indianapolis (180 days) were the cities where homes sold the slowest.

Also included in the analysis is the Zillow Home Value Index (ZHVI), which represents the median measure of home valuations covered by Zillow. The information presented here also includes the proportion of listings with price cuts, the average amount those listings were reduced, and the “final discount from list price,” which is the average amount that was negotiated off the original list price before the sale.

So, where do homes sell the fastest? Read ahead to find out!

5. (Tied) Oakland, California

Median time to sell: 81 days
Zillow Home Value Index: $316,400

Listings with price cuts: 26.17%
Average price cut amount: 8.70%
Final discount from list price: 1%

5. (Tied) Woodbridge, Virginia

Median time to sell: 81 days
Zillow Home Value Index: $230,500

Listings with price cuts: 20.54%
Average price cut amount: 5.66%
Final discount from list price: N/A

4. Alexandria, Virginia

Median time to sell: 74 days
Zillow Home Value Index: $402,500

Listings with price cuts: 33.30%
Average price cut amount: 4.47%
Final discount from list price: 2%

2. (Tied) Seattle, Washington

Median time to sell: 73
Zillow Home Value Index: $347,700

Listings with price cuts: 33.55%
Average price cut amount: 6.88%
Final discount from list price: 2%

2. (Tied) San Jose, California

Median time to sell: 73
Zillow Home Value Index: $494,500

Listings with price cuts: 26.16%
Average price cut amount: 5.58%
Final discount from list price: 1%

1. San Francisco, California

Median time to sell: 59
Zillow Home Value Index: $655,400

Listings with price cuts: 22.55%
Average price cut amount: 6.05%
Final discount from list price: 1%

Is now a good time to buy?

Ask Brian

We've heard so much about the stock market and the real estate market that we don't know if we should buy a house or not. Give us one good reason why we should take the plunge!

Ask Dolly Lenz, the most successful real estate agent in America. The other day, on a down-day in the stock market, she was interviewed on Fox Business.

First, she said that in most areas of the country, the real estate market is recovering. That means homes are probably priced about as low as they will be.

When asked who should be buying a house right now, she said it should be someone with a stable job that pays enough to afford the monthly mortgage payment. And that person would probably be someone who has been waiting for the right time to buy.

I could have told you that myself, but now you have the same advice from one of the foremost experts in America.

Lenz usually sells to a Hollywood star, a billionaire or a foreign dignitary. One of her sales in 2005was the Burnt Point mansion in Wainscott, New York. It sold for $45 million.

 

Looking for a short sale?

Right now, some attractive properties could qualify for a short sale. That means the lender agrees to sell the property for less than the amount owed on the mortgage.

The lender in these cases decides that it's better to make the short sale than to foreclose on the home, which would cost the bank or mortgage company more money in the long run.

The buyer doesn't have to feel sorry for the people who can't maintain the mortgage, because the short sale rescues them from foreclosure.

Obviously, it's a more complicated process than simply taking out a mortgage, but if you have the time and patience, the short sale could work out well for you.

And it is a good decision for both the lender and the seller.

If you're interested, I can start looking for properties that would interest you and that could be considered for a short sale.

Staying calm during home negotiations

After much soul-searching and working the numbers, you decided to put your home on the market. You may be selling to change cities for a job or are needing to downsize. Regardless of the reason, this is a big and important decision!

The time has come, though. You have received an offer on your home. How can you make it through? This can be a very trying time. How do you know which offer to take or what counteroffer to make?

Here are 10 tips to help you stay calm during negotiations.

• Trust your Agent: You hired your agent for a reason. He has experience handling negotiations and contracts. Feel free to ask him any questions you have, but don't let the pressure of every minute detail overwhelm you.
• Eat and Sleep: Our body needs to refuel in two ways: food and rest. Be sure to get plenty of both so that your brain is well-prepared for any big decisions you may need to make. Pack a bag lunch or some snacks if you think you may be too busy to stop for lunch or dinner on the way to your agent's office.
• Have Downtime: Getting your mind off of a stressful situation means you can come back later refreshed and ready for a challenge.
• Open Communication: Express real concerns to your spouse, significant other, or business partner. You never really know what someone else is thinking unless you talk openly. ·  Exercise: This is a great way to clear your mind and to gear your body up for the stress of selling. Walks, runs, and even a trip to the gym can be extremely beneficial.
• Meditate: Take a moment and find a quiet space. Sit quietly with your eyes closed and focus on your breath coming in and going out of your body. Be still and be in the present moment. As thoughts and worries come in your mind, acknowledge that they came and then pull your focus back to your breathing. Even a few minutes can do wonders at centering the mind.
• Run the Numbers: Seeing the facts in black and white can help take emotion out of this business decision. Should you accept this offer? Is it too low? Do the math and know for sure.
• Practice Patience: Buyers may take their time to consider your counter-offers. Be patient and know that an answer will eventually come.
• Leave Impulse at the Door: This is not a time to make rash decisions. You want to be sure that this is the right deal and the right time.
• Enjoy the Process: Yes, it's a stressful time, but it can also be the doorway to your new life. Embrace it and stay positive.

It was a big day when you decided to list your home for sale and it will be a even bigger day when you close with a seller. Take care of your body, relax your mind, and trust in your team of professionals and you're sure to make it through this stressful time.

Carla Hill /  Realty Times

Selling in today's market

In today's market many sellers want to know the secret to selling their homes quickly. They want to know ways to hold on to the equity they've built over the past decade. Unfortunately, there is no golden equation that equals the perfect sale. Yet, while there is no "sure thing" in the housing market these days, there are certain factors that affect how quickly and for how much your home sells. Here are the top ten. Consider how these apply to your own home, how that affects marketing, as well as what aspects of your home you should "play up" to elicit a better response from buyers. 1. Price: It's a common misconception in today’s market that location is the leading factor of whether or not a home sells. It is, instead, price. Think about this scenario. You have a home located in a prestigious and sought-after neighborhood, yet the list price is tens of thousands of dollars over the comps for the area. No one will be interested. This same property priced just below the competition will fly off the market. 2. Location: Okay, location is still very important. A home that sits next to a transfer station, crime-ridden neighborhood, or busy street is less desirable than one that backs up to green space. If your home has a premier location, then by all means boast about it in your marketing. 3. Livability: This is fast becoming a hot button word in real estate. Buyers today are looking for neighborhoods that deliver amenities such as golf course, restaurants, and theaters.  I am surprised how often people map the walking distance to the nearest Starbucks.   They want good schools, walkable neighborhoods, and plenty of things to keep them entertained. 4. Condition: There is a certain segment of the market that is made up of renovators, flippers, and investors. You won't find as many people these days eager to buy your run-down property that is in a good location. They simply can't sell the property fast enough before monthly mortgage payments begin eating up their profit. Homes that are well-maintained or in move-in ready condition appeal to a broader range of buyers. Even simple fixes, such as new paint, cleaned carpets, or power-washed decks, can have an effect. 5. Competitive Advantage: Don't make the mistake of assuming that you're in this race alone. Past area sales, as well as current listings and foreclosures, are your direct competition. You must take these into consideration when settling on a list price for your home. What amenities and upgrades do these homes have? Do the homes in your neighborhood all have updated baths, kitchens, or landscaped yards? In order to price in line with them you must be able to boast these same things. 6. Curb Appeal: Curb appeal is the first impression of the home. You must keep the yard orderly and maintained when your home is on the market. 7. Staging: Once inside your home, a buyer must be wowed. Intoxicate their senses. They want to see up-to-date furnishings, smell a clean home, touch cabinets that are in good repair, hear peace and quiet, and of course "taste the good life." 8. Kitchens: A kitchen sells a house. It is where families gather and connect. Minor kitchen remodels rank high among the list of top remodeling projects, with owners updating cabinets, counters, and floors. Nobody wants an outdated kitchen. What fixes are in your budget? If your kitchen is already spectacular, be sure you play this up in any marketing. 9. Agents: An accomplished, knowledgeable agent can be your biggest ally during the selling process. They know the latest market trends and have built a network of agents and contacts to whom to market your home. With an arsenal of marketing tools available to agents today, from video tours and webcasts to brochures, websites, and mls listings, they are part of your selling team. 10. Marketing: Marketing has gone global. With the power of the Internet, you can showcase your home to millions of potential buyers. Sit down with your agent and develop a solid marketing plan. This is why you are paying them a commission. Make them earn it! The market is not what it once was. You must be realistic about what selling in today's market means. You value your home, but it may not be "worth" as much today as it was yesterday, last month, or last year. Consider these top ten ways a home sells and help your home put its best face forward.