Tag Archives: South Salem NY Homes for Sale

Current Confidence Index for Single-Family Homes Steady | South Salem NY Real Estate

The majority of REALTORS® continued to report rising home prices and improving days on the market.  However, REALTORS®   reported that  the market remains hampered by a “demanding and rigid loan qualification process”  that  has made mortgage underwriting  “a nightmare”  and “the toughest hurdle.” This has led to cash  buyers and investors easing out  first time buyers using mortgage financing.   Low inventory  persists and REALTORS® have reported homes selling above the list price.  Policy uncertainty on a variety of economic and and tax issues, mainly due to the tepid job growth and  measures to avert the the fiscal cliff  — continues to dampen  the market. Hurricane Sandy also caused a temporary market slowdown in the affected areas, although a recovery is anticipated in the coming months.

What Does This Mean for REALTORS®?

Concerns over the residential home sale market are probably reflective of  current economic uncertainties.  In fact, the home sales markets have been recovering in price and sales in many areas, and mortgage rates are low—although finding a mortgage may take a number of applications.  REALTOR® confidence is well above its level two years ago, and prices and sales are slowly increasing.  Assuming that the economy continues  and that the fiscal cliff issue is addressed — which is the assumption of most economists  —  one would expect a continued expansion of home sales.

CoreLogic: Prices Rose 7.9 Percent in 2012 | South Salem Realtor

December 2012 home prices are expected to rise by 7.9 percent on a year-over-year basis from December 2011 and fall by 0.5 percent on a month-over-month basis from November 2012 reflecting a seasonal winter slowdown, CoreLogic said today.

Excluding distressed sales, December 2012 house prices are poised to rise 8.4 percent year-over-year from December 2011 and by 0.7 percent month-over-month from November 2012, according to the CoreLogic Pending HPI.

Home prices nationwide, including distressed sales, increased on a year-over-year basis by 7.4 percent in November 2012 compared to November 2011. This change represents the biggest increase since May 2006 and the ninth consecutive increase in home prices nationally on a year-over-year basis. On a month-over-month basis, including distressed sales, home prices increased by 0.3 percent in November 2012 compared to October 2012. The HPI analysis shows that all but six states are experiencing year-over-year price gains.

Excluding distressed sales, home prices nationwide increased on a year-over-year basis by 6.7 percent in November 2012 compared to November 2011. On a month-over-month basis excluding distressed sales, home prices increased 0.9 percent in November 2012 compared to October 2012. Distressed sales include short sales and real estate owned (REO) transactions.

“Housing was one of the past year’s biggest surprises. Even without significant gains in income, housing mounted an impressive recovery in 2012,” said CoreLogic Chief Economist Mark Fleming. “While the economy is strengthening, there is more to be done. For example, concerns remain around structural unemployment and the falling labor force participation rate.”

Highlights as of November 2012:

  • Including distressed sales, the five states with the highest home price appreciation were: Arizona (+20.9 percent), Nevada (+14.2 percent), Idaho (+13.8 percent), North Dakota (+11.3 percent), California (+11.1 percent).
  • Including distressed sales, the five states with the lowest home price depreciation were: Delaware (-4.9 percent), Illinois (-2.2 percent), Connecticut (-0.5 percent), New Jersey (-0.5 percent) and Rhode Island (-0.3 percent).
  • Excluding distressed sales, the five states with the highest home price appreciation were: Arizona (+16.5 percent), North Dakota (+12.9 percent), Nevada (+12.6 percent), Hawaii (+11.6 percent) and Idaho (+11.6 percent).
  • Excluding distressed sales, this month only two states posted home price depreciation: Delaware (-3.5 percent) and Alabama (-2.2 percent).

The Difference between Strategy and Tactics | South Salem Realtor

Apple World

The purpose of this post is to clearly delineate the distinct differences between strategy and tactics, and show how they work in tandem for your organization.

Often, we use the terms strategy and tactics interchangeably and in a haphazard manner.  When probing at online definitions and dictionaries, they often share many of the same characteristics, making them difficult to differentiate.  Rather than debate Greek military etymology, Sun Tzu philosophy, or latest publication from the Harvard Business Press, here’s strategy and tactics delineated by their associated actions:

[The difference between strategy and tactics: strategy is done above the shoulders, tactics are done below the shoulders]

While a tweet-worthy catch phrase, this metaphor risks glib over-simplification. To explore deeper, let’s dissect strategy vs tactics in the following breakdown:

Breakdown: The Difference between Strategy and Tactics

StrategyTactics
PurposeTo identify clear broader goals that advance the overall organization and organize resources.To utilize specific resources to achieve sub-goals that support the defined mission.
RolesIndividuals who influence resources in the organization. They understand how a set of tactics work together to achieve goals.Specific domain experts that maneuver limited resources into actions to achieve a set of goals.
AccountabilityHeld accountable to overall health of organization.Held accountable to specific resources assigned.
ScopeAll the resources within the organizations, as well as broader market conditions including competitors, customers, and economy.  Yet don’t over think it, to paraphrase my business partner Charlene Li, “Strategy is often what you don’t do”.A subset of resources used in a plan or process. Tactics are often specific tactics with limited resources to achieve broader goals.
DurationLong Term, changes infrequently.Shorter Term, flexible to specific market conditions.
MethodsUses experience, research, analysis, thinking, then communication.Uses experiences, best practices, plans, processes, and teams.
OutputsProduces clear organizational goals, plans, maps, guideposts, and key performance measurements.Produces clear deliverables and outputs using people, tools, time.

Strategy and Tactics Must Work in Tandem
These two must work in tandem, without it your organization cannot efficiently achieve goals.  If you have strategy without tactics you have big thinkers and no action. If you have tactics without strategy, you have disorder.  To quote my former business partner, Lora Cecere, she reminds me that organizations need big wings (strategic thinking) and feet (capability to achieve).

Examples:
To illustrate, here’s some specific examples across different industries of how strategic goals can be communicated with clear tactical elements, in a linear and logical order:

  • Strategy: Be the market share leader in terms of sales in the mid-market in our industry. Tactics: Offer lower cost solutions than enterprise competitors without sacrificing white-glove service for first 3 years of customer contracts.
  • Strategy: Maneuver our brand into top two consideration set of household decision makers. Tactics: Deploy a marketing campaign that leverages existing customer reviews and spurs them to conduct word of mouth with their peers in online and real world events.
  • Strategy: Improve retention of top 10% of company performers. Tactics: Offer best in market compensation plan with benefits as well as sabbaticals to tenured top performers, source ideas from top talent.
  • Strategy: Connect with customers while in our store and increase sales. Tactics: Offer location based mobile apps on top three platforms, and provide top 5 needed use cases based on customer desire and usage patterns.
  • Strategy: Become a social utility that earth uses on an daily basis. Tactics: Offer a free global communication toolset that enables disparate personal interactions with your friends to monitor, share, and interact with.

Action: Using Strategy and Tactics to advance your Organization
First, educate your staff and colleagues on the differences of terms and how they vary.  Next, ensure that all tactics align to business strategy, and all strategies take into account tactics on how they will be achieved.  Finally, cascade in all communication how strategy and tactics work in tandem, advancing how your organization can see the larger goals, and better utilize resources to achieve.

That’s my take, but please expand the conversation with your perspective, in the comments below.

Image credit: “Telescope” by Kristin Marshall, used within creative commons licensing.

For-sale Inventory Only Half of 2006 Level | South Salem NY Real Estate

Only half of many homes in America are listed for sale compared to the height of the housing  boom in 2006 while median list prices are about the same as they were a year ago.

The size of the inventory declined steadily in 2012, with the number of for-sale properties in December roughly 50 percent below the levels observed at the height of the housing crisis.  The national for-sale inventory continued to decline in December, falling by -6.51 percent over the month and by -17.32 percent on an annual basis. The large year-over-year decline in the for-sale inventory is a positive sign that the market has worked through much of its excess inventory, which should help to bolster housing prices and potentially set the stage for additional growth.

However, while list prices also increased significantly over the first half of the year, they have declined in recent months, with the median list price in December now roughly the same as it was one year ago.  In addition, a growing number of housing markets-primarily in older industrialized areas-are registering year-over-year list price declines, according to December data from Realtor.com

These potentially off-setting trends suggest that house price appreciation in the upcoming year is likely to be more moderate than it was in 2012. The median list price in December ($187,900) was essentially the same as it was a year ago despite the significant gains that occurred earlier in the year, when the median list price rose to as high as $195,000 in June 2012.

On a year-over-year basis, December median list prices were up by 1 percent or more in 66 of 146 MSAs, and up by 5 percent or more in 49 MSAs.  Median list prices were down by 1 percent or more in 49 markets, while 14 experienced a decline of more than 5 percent.  The remaining 31 markets have not experienced significant changes in their median list price compared to a year ago.

Over the past few months, the number of markets experiencing year-over-year price declines has steadily increased, while the number experiencing list price increases has steadily declined. In fact, compared to one year ago, the number of markets ending the year with a year-over-year price decline has more than doubled (49 in December 2012 vs. 20 in December 2011) and a significantly lower number of markets have a year-over-year price increase (66 in December 2012 vs.101 in December 2011).

California markets continue to dominate the list of areas experiencing the largest year-over-year increases in their median list prices.  In addition, Phoenix, AZ, Atlanta GA, and Seattle, WA are among the top performers. The 10 markets with the largest year-over-year list price increase are shown below.  All but one of these markets (Phoenix) experienced year-over-year declines in their for-sale inventories of -20 percent or more, while six of these markets had inventory declines of 40 percent or more.

For more than a year, older industrialized markets that never experienced the rapid run-up in prices that led up to the housing crisis have been registering the highest rates of list price declines.  This pattern continued in December.  While Jersey City and Chicago had year-over-year inventory declines of -31 percent and -22 percent respectively, most of the remaining areas experienced inventory declines that were well-below the national average (-17 percent).

The median age of inventory of for sale listings was 111 days in December,  up by 9.90 percet from November, but -9.01 percent below the median age one year ago (December 2011).  While the median age of the inventory is highly seasonal, the year-over-year decline is consistent with other data showing a general tightening of market conditions over the year.

Real Estate Q&A: Lessons Learned | South Salem Realtor

Each month, San Diego State University lecturer and Zillow Blog contributor Leonard Baron will answer two questions from readers regarding buying, selling and investing. Have a question? Send it to Leonard@ProfessorBaron.com

Real estate lessons learned

Hi Professor — I enjoy reading the guidance you give in your Zillow blog and writings. I’m just getting started in learning about real estate investing, and I wanted to know more specifics about some of those “hard lessons” you’ve learned. Andrea R., Des Moines, IA

Hi Andrea — Oh there have been so many! Real estate is truly a business that we learn as we go. Where do I start? None of these will I ever do again:

  • Fixer-uppers: It seems like it will be fun and profitable to buy a fixer-upper and fix it up! It’s not. There are too many buyers chasing these, so the prices get pushed above what they are worth. Plus it always costs a lot more to renovate and takes a lot longer than you anticipate. Plus you have to pay for all the cost overruns right out of your own pocket. Some people can make these work, but I suggest leaving the fixers to the contractors who are skilled and in the business of renovating properties.
  • Prize, negative cash flow properties: I own a really nice beach property that I bought 10 years ago. I didn’t know that rents in prize areas are way too low for the prices the properties command. I’m just breaking even — almost — on the rent, less expenses, after a decade. Moderately priced properties can be cash-flow positive from year one. Buy those!
  • Vacation rentals: These are the worst. You’ll hear people say the monthly income pays the entire year’s mortgage, which may be true. The problem is there are all kinds of other expenses, and those expenses as a portion of rental income can approach 80 percent, just like a hotel. A normal rental property is typically 35-40 percent.
  • Land investment: Land is 100 percent speculative. Buy assets that pay rental income, dividends or interest, and skip assets where you don’t get some cash return back along the way.

Ask me again in a few months, and I’ll throw more mistakes onto the above list!

Selling one property to buy another

Hi Leonard — I am thinking about selling an investment property I have to buy another. The current one is a good property, pays me nice cash flow, has plenty of equity and has done well for me. But I want to sell and buy something bigger. Can I do a 1031 exchange. Bob M., Los Angeles.

Yes Bob, you can. But I’m wondering why you would. If you have a great property, that you know well, and it’s doing well, keep it! If you sell, even if you do a 1031 tax-deferred exchange, you’ll spend about 10 percent of the property value in transaction costs, so that equity is wiped out. Keep it! If you want to buy more real estate, find out about a cash-out refinancing on the existing one so you can add another property to your portfolio while keeping the great one you have.

Also, 1031 exchanges are complicated, and you have to be on tight timing. I’ve seen many people sell one property and rush to buy another one — even though it’s a really bad property — because that is the only one they can purchase in the IRS-allowed time frame, and their only goal is to avoid paying taxes. So they sell a good property to buy a real dog.

To summarize, if you have a good property, keep it!

South Salem 2012 sales rise 23.5% – Prices down 2.6% | RobReportBlog

South Salem 2012 sales rise 23.5% – Prices down 2.6%  | RobReportBlog

South Salem NY Sales
2012 2011
63Sales5123.50%UP
$575,000.00Median Price$590,822.002.60%DOWN
$185,000.00Low Price$191,000.00
$1,557,000.00High Price$2,000,000.00
2842Ave. Size2583
$232.00Ave. Price/foot$234.00
235Ave. DOM198
93.66%Ave. Sold/Ask94.45%
$652,715.00Ave. Sold Price$590,821.00