Real Estate Information

Freddie Mac released its U.S. Economic and Housing Market Outlook with five projections for 2012.

Frank Nothaft, Freddie Mac's vice president and chief economist, said there are indications that the economy and housing market are slowly gaining ground. "Sustained and increased job growth beyond the average monthly payroll gains of 130,000 so far this year ending in November are essential," he said in a statement.

Nothaft also expects mortgage rates to remain low through the middle of 2012, and for rentals to continuing leading housing market improvements.

"All told, next year will be another bumpy ride," he said.

Five outlook highlights:

• Economic growth will likely strengthen to about 2.5 percent in 2012.
• The U.S. unemployment rate will decline but likely remain above 8 percent.
• mortgage rates will likely remain very low, at least through mid-2012.
• Housing activity will be better in 2012, but not robust.
• Expect less single-family originations but more multifamily lending in 2012.

For more info:

http://realtormag.realtor.org/daily-news/2011/12/15/freddie-macs-2012-outlook-housing-slowly-gain-ground

Fixed mortgage rates dropped even more this week and reached an all time low. The 30-year fixed-rate mortgage averaged 3.94 percent this week while 15-year rates sank to 3.21 percent — both all-time lows from their previous record lows set on Oct. 6. The 5-year adjustable-rate mortgage also set a new record this week. 

The Federal Reserve at a meeting this week reaffirmed its commitment from this summer that it would keep interest rates low for the next two years.

Here’s a closer look at rates for the week ending Dec. 15.

• 30-year fixed-rate mortgages: averaged 3.94 percent — a new record low — with an average 0.8 point, dropping from last week’s 3.99 percent average. A year ago, 30-year rates averaged 4.83 percent.
• 15-year fixed-rate mortgages: averaged 3.21 percent — also a new record low — with an average 0.8 points, a drop from last week’s 3.27 percent average. Last year at this time, 15-year rates averaged 4.17 percent. 
• 5-year adjustable-rate mortgages: averaged 2.86 percent this week, with an average 0.6 point, dropping from last week’s 2.93 percent average. Last year at this time, 5-year ARMs averaged 3.77 percent. 
• 1-year ARMs: averaged 2.81 percent with an average 0.6 point, inching up slightly from last week’s 2.80 percent average. Last year at this time, 1-year ARMs averaged 3.35 percent.

For more info:

http://realtormag.realtor.org/daily-news/2011/12/16/mortgage-rates-sink-record-lows-again

When it comes to remodeling, exterior replacement projects have routinely rewarded home owners with more bang for their buck. This year, Realtors recently rated exterior improvements as among the most valuable home investment projects as part of the 2011-12 Remodeling Cost vs. Value Report.

“This year’s Remodeling Cost vs. Value Report shows the value of putting your home’s best façade forward, so to speak,” said National Association of REALTORS^® President Moe Veissi. “Inexpensive exterior replacement projects are not only crucial to a home’s regular upkeep, but are also expected to recoup close to 70 percent of costs. Specific exterior projects such as siding, window and door replacements are part of regular home maintenance, so many homeowners are already undertaking them. These projects also do not require expensive materials and they have the added bonus of instantly adding curb appeal.”

The 2011-12 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels, and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 14th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood LLC, was completed in cooperation with NAR

For more info:

http://realtormag.realtor.org/daily-news/2011/12/16/which-home-improvement-projects-offer-best-returns

Buying or selling a home can seem pretty overwhelming. The right Realtor can make the process a whole lot easier for you! A Certified Residential Specialist (CRS), with years of experience and success will help you make smart decisions in a fast-paced, complex, and competitive market.

To receive the CRS Designation, Realtors must demonstrate outstanding professional achievements such as, high volume sales and pursing advanced training in areas such as finance, marketing, and technology. They must also maintain membership in the National Association of Realtors and abide by its Code of Ethics.

Coming up with enough cash for a down payment on a home can seem scary, but according to CBS Money Watch, saving money for such a great, major investment can be a lot easier than anticipated. Here are a few easy strategies that can add up fast:

1. Make it automatic- Create a savings account that is only for the down payment. Devote a comfortable amount of your paycheck to it every time you get paid. Having this down automatically would be helpful to because then you don't even have to think about that amount that your putting away.

2. Sell things you don't need online- Antiques, furniture, purses, or clothing items, chances are someone out there would buy it. Price things accurately on sites like eBay.

3. Skip the morning latte- Those $4 coffees add up to thousands of dollars each year. Cut any other indulgences from your routine that are wasting your money. Start using coupons too.

4. Get rid of your landline- Use your cell phone as your primary phone. Also try and get a cheaper phone plan.

Selling your home during the holidays can be tricky for many different reasons. It's not a popular home buying season, many homeowners have guests in town which makes showings difficult. It is possible to sell your home during these months, just a little harder!

Here are a few "hints":

1. Keep decorations to a minimum. Do not let your religious affiliations be shown because potential buyers may not agree or become offended.

2. Try not to plan open houses on or around big holidays like Hanukah, Christmas, or New Year's Eve

3. Make sure your agent will be available during the holidays. Make sure you know when they will be in town!

Selling a home in the cold, dreary winter months may not be ideal but there’s still plenty you can do to get a home to standout just as it would in the warm, hot summer months!

“Buyers out looking at homes in December or January are, as a group, quite serious about buying,” Laura Ortoleva, a spokesperson for the RE/MAX Northern Illinois, told RISMedia. “Therefore, sellers tend to benefit because each showing is more productive, and fewer showings are needed to sell the property.” 

Here are some GREAT tips to make your home sparkle:

Turn on the lights: Counter winter’s cloudy and short days by turning on all of the lights in a home for each showing. “Also, it’s a great idea to keep the lights on in the front of the house even if no showings are scheduled,” says Marlene Granacki of RE/MAX Exclusive Properties in Chicago. “People are always driving past the house, and keeping it lighted makes it look happy and welcoming.”

Have a place for shoes: Prospective buyers may arrive at the front door with shoes coated in snow or salt. “Make it easy for buyers to deal with their shoes when they arrive,” says Barbara Hibnick of RE/MAX Showcase, Long Grove, Ill. “Put a festive area rug at the front door for a great first impression and so visitors can wipe their feet. Have slippers or disposable booties available, along with a bench or chair, if there is room for one, where a visitor can sit and easily remove or put on their boots.”

Watch for odors: Homes can get stuffy in the winter. “Pet odors can be especially worrisome in winter,” says Mike Mondello of RE/MAX Synergy in Orland Park, Ill. “Use a room fragrance if needed, but nothing too strong, and I recommend that in winter sellers clean more often.”

Don’t make it too toasty: “Don’t blast buyers with hot air,” the RISMedia article notes. Keep the temperature at a comfortable 65 degrees during your showings (although keep in mind that a comfortable temperature for your thermostat can vary form house to house.) Potential buyers will most likely be wearing their winter coats when they tour the house so no reason to make them sweat.

For more info:

http://realtormag.realtor.org/daily-news/2011/12/02/winter-selling-tips-for-overcoming-gloom

Open houses are a great way to show off a home, but they also can open you and your home to privacy issues and concerns. Potential buyers will look through nearly every inch of your home (closets, storage, etc). Consider ways to protect your belongings and your confidential information.

Go through your drawers and cabinets before others have the chance to do so. Potential buyers have reason to open and pull on them to determine how stable fixtures are, and it's easy to glimpse personal items. Remove medications out of the bathroom cabinets too.

Your home should read like a clean slate, one that anyone could live in, so be sure to remove things like diplomas, wedding photos, and other person items from the walls. This protects your identity by keeping your name, college or church affiliations undisclosed, and gives buyers a blank canvas.

Also, shut down your computer or answering machine if you have one. Personal messages should not be accessible to others.

The idea of having strangers in your home is unsettling, so be sure your Realtor is always present during open houses.

More families may be feeling a little extra generous this holiday season and are offering loved ones help with a down payment on a home. 

Coming up with the down payment has become a major obstacle to home ownership. The survey found that 51 percent of 758 renters surveyed said coming up with the money for a down payment was what was preventing them from buyer and 36 percent said qualifying for a mortgage was holding them back.

But with the holiday season approaching, some lucky family members may find a down payment gift under the Christmas tree. 

However, if giving a down payment gift, gift givers must remember that “under federal tax law, each individual is permitted to give away money or valuables worth up to $13,000 to a single recipient in a calendar year,” according to an article at The New York Times. “A married couple could jointly bestow up to $26,000 a year per recipient.” Anything above the maximum annual exemption could be considered a taxable gift and must be reported to the IRS.

Info taken from:

http://realtormag.realtor.org/daily-news/2011/12/02/perfect-holiday-gift-down-payment

Averages on fixed-mortgage rates continue to be down "low" for the week. Adjustable-rate mortgages went down slightly to reach NEW record lows.

"mortgage rates were little changed this past week, with the average 30-year fixed-rate mortgage at or below 4 percent for the fifth consecutive week,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement. “The extraordinarily low mortgage rates of the past month may provide a needed spur to housing activity.”

This week, the National Association of REALTORS® reported a 10.4 percent jump in pending homes sales in October, the BEST it has been since November 2010.

Here’s a closer look at rates for the week ending Dec. 1:

• 30-year fixed-rate mortgages: averaged 4 percent, with an average 0.7 point, ticking slightly up from last week’s 3.98 percent average. A year ago at this time, 30-year rates averaged 4.46 percent.
• 15-year fixed-rate mortgages: averaged 3.30 percent, with an average 0.8 point, holding at last week’s average. Last year at this time, 15-year rates averaged 3.81 percent. 
• 5-year adjustable-rate mortgages: averaged 2.90 percent, with an average 0.6 point, dropping slightly from last week’s 2.91 percent average. Last year at this time, the 5-year ARM averaged 3.49 percent. 
• 1-year ARMs: averaged 2.78 percent this week, with an average 0.6 point, dropping from last week’s 2.79 percent average. A year ago at this time, the 1-year ARM averaged 3.25 percent.

For more info:

http://realtormag.realtor.org/daily-news/2011/12/02/mortgage-rates-continue-hover-record-lows