Housing Value Forecast till 2018

     Housing Projections, what is the market going to do.  According to a few surveys and top real estate experts we are in a normal market.  We are expecting to see standard gains over the next 5 years.  If you see the chart below the BULLS in the market think we will have a 40% increase in values, the BEARS predict a 16% increase and all projections pan out at 28%.  That is an average of 4% – 10% increase each year over the next 4 years.
Home Price Expectation Survey Year By Year
What else is  Happening?
     The percentage of distressed property sales is going down.  In fact in January of 2013 the percentage of home sales that were bank owned or Short Sales that was 35% of all transactions that occurred.  In Sept of 2013 that number dropped to 14%.  This means housing prices are continuing to go up and with the increase in housing values more people can now sell their homes without it being distressed.  This also allows more homes to come to the active market shifting our number 1 driving force in real estate “Supply and Demand”.  The Supply has gone up without an increase in Demand.  Homes will sit on the market a little longer than normal as home buyers will have more options to view before making that big decision.
If you want to buy a home should you wait?
   If you decide to wait to purchase 2 major events are  going to occur.  First housing prices are going continue to rise over the next couple years.  Second interest rates are going up.  “SEE CHART BELOW”  Fannie Mae predicts Rates will be at 5.3% in the 4th quarter of 2014, the national association of realtor’s believes rates will be 5.5%.  Example chart below, but on a $250,000 home purchase with a rate of 4.22% today your payment is $1225 a month in 1 year from now with a rate at 5.3% on a $250,000 purchase your payment is $1388 a month.  That is $168 dollars a month increase or almost $2000 a year.  Should you wait?  Why would you.

OH NO FHA LIMITS REDUCED, GOT A GOOD LENDER???

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I know news has hit “the street” about the reduction in the debt-to-income ratio going from 45% to 43%.  Also FHA loan limits have been reduced from $346,250 to $271,050.  Here are three (3) things to keep in mind:

1.       The reduction in the DTI ratio means buyers will only lose 5% in buying power.  Also exceptions are being made today based on 45% and will continue at 43%.  Any good lender looks at the borrower first and policy second

2.       HUD’s forecast of the median home price in Maricopa/Pinal counties in 2014 (median is the middle number, not the average, that means half the home values are above and half below) is $189,000 well below the new $271,050 loan limit

3.       The median home price for new homes in October was $245,800 which is also below the $271,050 FHA loan limit

 I think this news is good for the market in 2014.  It keeps home buying forefront on our clients’ minds.  It also sends the message that there is no better time to get off the sidelines and get into the market.  I think we will all see a strong 2014.

2013 Strategies for Softer Housing Market

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Across the U.S., housing is currently at a five-month supply. That’s considered a healthy seller’s market. But when supplies build to seven months or more, the advantage moves to the buyer.

If you’re a seller in a market that was hot but now not, you may be wondering what went wrong. Should you pull your home out of the race? Not if you want to sell.

Markets are constantly in motion even when they appear to be resting. The retreat in sales volume or sales prices may be short or it can last for a long time.

Most factors that impact housing are out of your control. You can’t influence mortgage interest rates or create jobs that bring down the unemployment rate. But there are things you can do to help your home sell in a softer market.

Don’t panic

Ask your real estate agent to give you a market analysis that will help you understand three-month to six-month trends. You’ll be better prepared if you know that it may take longer to find a buyer.

Compete on condition

The closer to move-in ready you can make your home, the better. Put your home in clean, white-glove condition and stage it attractively to show off its best features.

Plan for demanding buyers

Buyers may ask you to pay closing costs, or to provide a home warranty, or make other concessions. Your real estate agent should be able to tell you which incentives may work with your listing. So be prepared to leave the washer/dryer, stainless fridge or your favorite chandelier.

Price reasonably

If you want a quick sale, price below current comparables. If you can afford to wait longer to sell, price at current comparable’s. Whatever you do, don’t price above the market.

Expect low-ball offers

No matter what price you put on your home, you are bound to get ridiculously low offers. That’s the culture we live in. Encourage your agent to answer politely and to provide a copy of the comparables so the buyer can see you’ve priced to be competitive in the current market.

One thing you can count upon is that a softer market will get firmer. All it takes is home buyers willing to invest. By giving them a great home at a great price, you’ll make it easy for buyers to say yes.

Article Provided by Blanche Evans written sunday dec 8th 2013 on realtytimes.com

Enter To Win Free 50″ Vizio TV see Rules

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50″ Vizio TV Give Away

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How To Play

1. You must click “Like” on our Facebook Page

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2. Fill out the Information Below

Rules

You must be 18 years old to play.  You Must Like our Facebook Page East Valley Residential Resale Specialists. You Must fill out the Contact information Page with accurate information so we can contact you if you win. Once our Facebook Page reaches 500 likes we will have a drawing to see who wins the New Vizio 50″ Television. 

NOTE

We will add you to our contact data base and follow up with you.  If you elect to withdraw or remove your information from our contact management system you will remove yourself from the contest as we will no longer be able to reach you at the time of the drawing.