Housing Inventories Rise for Eighth Straight Month

Housing inventories rose in many U.S. cities for the eighth straight month in August in a sign of the continued headwinds facing a soft housing market. The number of available homes for sale in 26 major metropolitan areas at the end of August increased 0.4% from one month earlier, according to figures compiled by ZipRealty Inc., a real-estate brokerage firm based in Emeryville, Calif. The figures include all single-family homes, condominiums and townhouses listed on local multiple-listing services in markets where the firm operates. (See the full data). Inventories traditionally rise modestly in August. Zelman & Associates, a research firm, says listings have typically risen by 2% in August over the past 28 years. The less-than-average gain in inventories is troubling, nonetheless, because demand has fallen sharply since a tax credit to spur sales expired earlier this year. At the current pace, it would take 12.5 months to clear the backlog of unsold homes, according to the National Association of Realtors. A healthy market typically a six-month supply of homes. Inventories nationally remain at their highest levels since November 2008, according to Zelman data. The August inventory in the 26 markets tracked by ZipRealty showed a 10.6% year-over-year increase in the number of unsold homes listed for sale. A number of cities, including Houston, Philadelphia, and Orange County, Calif., remain at 18 month highs. “It’s across the country where you’re seeing really big inventory levels,” says Pat Lashinsky, chief executive of ZipRealty. The biggest gains in inventory continue to come from overheated Western markets where bidding wars on foreclosures pushed the housing supply down to very low levels one year ago. Las Vegas saw inventory rise by 9.3% from July, while listings were up by 4.6% in Phoenix and 3.8% in San Diego. Compared to one year ago, inventories are up by 59% in San Diego, 43% in Orange County, Calif., and 25% in Los Angeles. One big problem facing the market are the number of home sellers who can’t lower their prices any further without selling their home for less than they owe. Those sellers are often unwilling to reduce prices. Buyers, meanwhile, think prices are going to drop and interest rates aren’t going to rise soon, leaving them little incentive to make a deal now. Sellers and buyers “are waiting for the other one to make a move, and neither one is,” says Mr. Lashinsky. One of the biggest misconceptions about the market right now, he adds, is that there’s no interest in housing. There are plenty of buyers waiting the buy, he says, but not at current prices. On a monthly basis, inventories fell in half of all markets, led by Austin, Texas, which was down 3.8%, followed by Charlotte, N.C., (down 3%) and Boston (down 2%). For the year, inventories are down in Miami (8.6%), Chicago (2.2%) and Orlando, Fla., (2.2%). Inventories are falling in more markets in part because sellers are just taking their homes off the market. “Sellers have realized, ‘I just can’t get the price I want. Instead, I’m going to stay here,’” says Mr. Lashinsky. While that may work for buyers who just can’t lower their prices any further, he says, “if you think you can put it back on nine months later for 10% more, that’s not a very wise strategy.”

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MBA: Mortgage loan applications increase 2.7%

Wednesday, September 1st, 2010, 7:21 am

 

The number of mortgage applications last week rose 2.7% on a seasonally adjusted basis from the prior week, once again pushed up by refinancing activity that remains at the highest level since May 2009, according to the Mortgage Bankers Association.

The MBA said the index rose 2.3% on an unadjusted basis. The seasonally adjusted refinance index climbed 2.8% for the week ended Aug. 27 from the week earlier. The purchase index rose 1.8% for the week.

“Refinancing activity picked up again last week, reaching new 15-month highs, as borrowers took advantage of even lower mortgage rates,” MBA vice president of research and economics Michael Fratantoni said. “The drop in mortgage rates was in line with Treasury rates as the latest data continue to show weak economic growth and an exceptionally weak housing market.”

In four-week moving averages, the seasonally adjusted market index is up 5.2%, the purchase index is down 0.2% and the refinance index is up 6.3%.

Fratantoni said the sharp decline in the firm’s purchase application index in May foreshadowed the drops in home sales the following two months, and he doesn’t expect sales activity to increase for August or September.

Refinancings accounted for 82.9% of all mortgage applications last week, up from 82.4% the week prior and at the highest level since January 2009. MBA said the unadjusted purchase index decreased 0.4% from the prior week and is 37% lower than the year ago.

Interest rates for 30-year fixed and 15-year fixed mortgages continue descending to the lowest rates ever recorded by the MBA survey. The average rate for the 30-year fell to 4.43% from 4.55% and the 15-year decreased to 3.88% from 3.91%.

The Mortgage Maxx weekly index, which adjusts data to reflect the number of households applying for a mortgage, showed application activity rose 6.9% last week after dropping 2.4% the week before.

8 Tips for Adding Curb Appreal and Value to Your Home

Curb appeal has always been important for homesellers. With the vast majority of today’s homebuyers starting their search on the Internet, the appearance of your property is more critical than ever. You only have a few seconds to catch their attention as they scroll through listings online to get them to stop and take a closer look.

But the role of curb appeal goes beyond just making a good first impression. The way your house looks from the street can impact its value. It can also shorten the time it takes to sell your house.

We asked real estate agents, appraisers, home stagers, landscape designers, and home inspectors which curb appeal projects offer the most value when your house is on the market, both in terms of its marketability and dollars. Here is what they told us:

1. Paint the house.

Hands down, the most commonly offered curb appeal advice from our real estate pros and appraisers is to give the exterior of your home a good paint job. Buyers will instantly notice it and appraisers will note it on the valuation. 

Just make sure you stay within the range of accepted colors for your market. A house that’s painted a wildly different color from its competition will be marked down in value by appraisers.

2. Have the house washed.

Before you make the investment in a paint job, though, take a good look at the house. If it’s got mildew or general grunge, just washing the house could make a world of difference, says Valerie Torelli, a California real estate agent with a background in accounting.

Torelli specifies pressure-washing—a job that should be left to professionals. Pressure washing makes the house look “bright and clean in addition to getting rid of unsightly things like cobwebs, which may not be seen from the yard but will detract from the home’s cleanliness when seen up close,” she says.

The cost to have a professional cleaning should be a few hundred dollars—a fraction of the cost of having the house painted.

3. Trim the shrubs and green up the yard.

California real estate agent Valerie Torelli says she puts a lot of emphasis on landscaping, such as cutting down overgrown bushes and replacing them with leafy plants and annuals mulched with beautiful reddish-brown bark. “It runs me $30 to $50,” says Torelli. “Do you get a return on your money? Absolutely. It sucks people in.”

You also don’t want bare spots. Take the time to throw out some grass seed, and if need be, add some sod.

4. Add a splash of color.

It could be a flower bed of annuals by the mailbox, a paint job for the front door, or a brightly colored bench or an Adirondack chair. “You can get a cute little bench at Home Depot for $99,“ Torelli notes. “Spray paint it bright red or blue and set it in the yard or on the front porch.”

It’s not a bad idea, but don’t plan on getting extra points from an appraiser for a red bench, says John Bredemeyer, president of Realcorp in Omaha. “It’s difficult to quantify, but it does make a home sell more quickly,” Bredemeyer says. “Maybe yours sold a couple weeks faster than the house down the street. That’s the best way to look at these things.”

5. Add a fancy mailbox and house numbers.

An upscale mail box and architectural house numbers or an address plaque can give your house a distinctive look that stands out from everyone else on the block. Torelli makes them a part of her exterior makeovers “I’ve gotten those hand-painted mailboxes,” she says. “A nice one runs you $40 to $50.” Architectural house numbers may run as high as a few hundred dollars.

6. Repair or clean the roof.

Springfield, Va.-based home inspector and former builder Reggie Marston says the roof is one of the first things he looks at in assessing the condition of a home. He’ll look at other houses in the neighborhood to see if there are a lot of replaced roofs and see if the subject house has one as well. If not, he’ll look for curls in the shingles or missing shingles. “I’m looking at the roof for end-of-life expectancy,” he says.

You can pay for roof repairs now, or pay for them later in a lower appraisal; appraisers will mark down the value by the cost of the repair. That could knock thousands of dollars off your appraisal. According to Remodeling Magazine’s 2009-2010 Cost vs. Value Report, the average cost of a new asphalt shingle roof is more than $19,000.

“Roofs are issues,” Lucco says. “You won’t throw money away on that job. You gotta have a decent roof.”

7. Put up a fence.

A picket fence with a garden gate to frame the yard is an asset. A fence has more impact in a family-oriented neighborhood than an upscale retirement community, Bredemeyer says, but in most instances, appraisers will give extra value for one, as long as it’s in good condition. “Day in a day out, a fence is a plus,“ Bredemeyer says. Expect to pay $2,000 to $3,500 for a professionally installed gated picket fence 3 feet high and 100 feet long.

8. Perform routine maintenance and cleaning.

Nothing sets off subconscious alarms like hanging gutters, missing bricks from the front steps, or lawn tools rusting in the bushes. It makes even the professionals question what else hasn’t been taken care of.

“A house is worth less if the maintenance isn’t done,” Lucco says. “Those little things can add up and be a very big detractor. When people say, ‘I’d buy it if it weren’t for all the deferred maintenance,’ what they’re really saying is, ‘I’d still buy it if you reduce the price.’” 

 Read more: http://www.houselogic.com/articles/8-tips-adding-curb-appeal-and-value-your-home/#ixzz0xYRKA2wn

What is going on with the Salt Lake Real Estate Market?

I have not seen it this slow in the 7 years.  Right now showings are slow…very slow.  Prices are very attractive and interest rates are crazy low.  So where are all of the buyers? Most of my buyers need to sell first and that has been the problem.  Prices will need to come down a little more to intice buyers.  We will keep you posted.

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