Daily Archives: April 11, 2013

Housing Is Back! Best Moves for Homebuyers | Bedford Corners NY Real Estate

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By Beth Braverman

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 re-emerge 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 percent in Phoenix and 17 percent 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. “2013 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.”

Related: Find Homes for Sale in Your Area

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 percent; the national number is 97 percent. (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

In January and February, 73percent 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.

Read the rest of this story on CNNMoney.

See more on CNNMoney:
Selling Your Home? The Cards Are In Your Favor
Own a Home? Take Advantage of Rising Home Equity

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.

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via realestate.aol.com

Best Places To Invest In U.S. Real Estate | Armonk NY Homes

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In optimizing the relationship of risk and return, many would argue there’s not a better investment right now than U.S. residential real estate, especially in various geographic regions of the country. Aside from directly investing in U.S. real estate, some other strong investment options are homebuilders such as KB Homes (KBH), Lennar (LEN), Toll Brothers (TOL), and Taylor Morrison (TMHC). Silver Bay (SBY) and Blackstone (BX) have also been extremely active in acquiring distressed real estate in various markets and leasing the properties. Last, but not least, one could also go the route of exchange traded funds with iShares Dow Jones US Real Estate ETF (IYR) and the SPDR Homebuilders ETF (XHB).

While the risk / return of U.S. real estate looks extremely attractive right now, the resurgence of residential real estate in the U.S. has been somewhat bifurcated. By applying four filters, this article identifies the best regions in the country for potential appreciation in home prices.

There are many variables that can impact real estate and prices, but one of the more significant variables that has impacted the recent resurgence of U.S. real estate is how various states conduct their foreclosure process. All U.S. states subscribe to either “Title Theory” or “Lien Theory” in how they go about the foreclosure process. “Title Theory” states basically process foreclosures in a more expedited manner using non-judicial proceedings, while “Lien Theory” states tend to have a much more protracted foreclosure process using judicial proceedings. With the Great Recession resulting in so many foreclosures across the country, “Title Theory” states have been able to process these foreclosures much faster than “Lien Theory” states. This has essentially allowed “Title Theory” states to clear their delinquent loans and reduce “shadow” inventory to an insignificant supply. As a function of the free market in these states, supply has been significantly reduced to a point well below equilibrium and thus the basic economic fundamentals of supply & demand have kicked in and prices have and continue to move up. Consequently, most “Lien Theory” states have not been able to process their foreclosures expediently, and hence they still have many delinquent loans and a higher potential for “shadow” inventory. Lender Processing Services provides a very thorough analysis of these differences as well as a state by state analysis, here’s their most recent report.

via seekingalpha.com