Real Estate Information Archive

 December 6, 2011 - The number of improving housing markets continued to expand for a fourth consecutive month in December, rising from 30 to 41 on the latest National Association of Home Builders/First American Improving Markets Index (IMI), released today. The December list featured 20 new additions, including several major markets such as Washington, D.C.; San Jose, Calif.; and Toledo, Ohio. Meanwhile, nine smaller markets dropped off the list, primarily due to softer house prices.

The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months.

New entrants to the list in December include the following:

Ann Arbor, MI
Athens, GA
Boulder, CO
Burlington, VT
Canton, OH
Charleston, WV
Danville, VA
Fort Wayne, IN
Grand Forks, ND
Jackson, MS
Kingsport, TN
Laredo, TX
Lincoln, NE
Muncie, IN
Muskegon, MI
San Jose, CA
Scranton, PA
Toledo, OH
Washington, DC
Winchester, VA

"The increases we continue to see in the number and geographic diversity of improving metros are quite encouraging, and evidence of the fact that all housing markets are dependent on uniquely local factors," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. He noted that as of December, a total of 21 states and the District of Columbia are represented on the improving markets list -- up from14 states represented in November.

"The December IMI results are very much in keeping with the latest government housing data and our own builder surveys, which have shown modest signs of improvement in certain individual markets where employment is gaining and distressed properties are not as numerous," said NAHB Chief Economist David Crowe. "These gradual improvements are now becoming evident not just in small, energy-producing metros that have previously dominated the IMI, but also in several larger markets and areas with more diverse economies."

The nine markets that dropped off the IMI in December include Alexandria, La.; Fairbanks, Alaska; Hinesville, Ga.; Houma, La.; Jonesboro, Ark.; Lima, Ohio; Pine Bluff, Ark.; Sumter, S.C. and Waco, Tex. All but two of these metros fell from the list due to softening house prices. The exceptions to the rule were Jonesboro and Waco, where declines were registered in employment and single-family housing permits, respectively.

The total list of improving housing markets in December, as defined by the IMI, includes the following 41 entries (listed alphabetically by state):

Anchorage, AK
San Jose, CA
Boulder, CO
Fort Collins, CO
Washington, DC
Athens, GA
Davenport, IA
Waterloo, IA
Kankakee, IL
Fort Wayne, IN
Muncie, IN
Monroe, LA
New Orleans, LA
Ann Arbor, MI
Muskegon, MI
Jackson, MS
Fayetteville, NC
Winston-Salem, NC
Bismarck, ND
Grand Forks, ND
Lincoln, NE
Canton, OH
Toledo, OH
Pittsburgh, PA
Scranton, PA
Williamsport, PA
Kingsport, TN
Amarillo, TX
Corpus Christi, TX
Laredo, TX
McAllen, TX
Midland, TX
Odessa, TX
Sherman, TX
Tyler, TX
Danville, VA
Winchester, VA
Burlington, VT
Charleston, WV
Casper, WY
Cheyenne, WY

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.

Please visit www.nahb.org/imi for additional data, tables and a list of future economic release dates.

The Psychology of Color on your Home

            Agents frequently suggest that homeowners paint before placing their homes on the market. Don’t be offended!

Agents understand “color psychology,” which focuses on color’s effect on human behavior and emotion. Since people’s reaction to color is immediate, color has a tremendous influence on the choices they make every day.

            “Color choices are very personal and when selling your home, it’s critical to appeal to the greatest number of potential buyers,” said Allegra Dioguardi, president of Styled and Sold Home Staging in New York. “With so many people beginning their search for a home on the Internet today, your home and listing photos must stand out from your competition. Color is one very simple way to do this.”

            Added Eric Brown, one of the authors of House Selling for Dummies: “Painting your house’s exterior before you put it on the market will give the biggest bang for your fix-up buck, as long as you are using colors that conform to the neighborhood’s decorating norm.”

            Colors affect human beings in many ways, and by using the principles of color psychology, you can make your home stand out from the competition, sell more quickly, and at a higher price. In short, the stimulus and effect of colors normally cross cultures. Blues will feel cool, reds and oranges feel warm. Deeper shades of color imply intimacy and serenity.

Your home’s exterior color is the first thing most potential homebuyers see when they drive up or inspect the property on the Web. The correct color may be the most powerful and cost effective design tool at your disposal.

What is “correct” these days? Brown’s research shows that homes painted in pale yellows with cream or beige accents have sold fastest during the past few years.

In general, lighter colors are favored for exterior as they make the property seem larger. Conversely, painting your sideboards with a darker color will make the house seem smaller, though dark colors can draw more attention to home’s details.

            For those painting an older home, you may want to consider historical accuracy, as this could be a big selling point as well.

            When choosing interior colors for the home, consider the purpose of each room. Kitchen and dining areas painted in “food colors” such as coffee browns, celery greens and scrambled-egg yellows will make the rooms feel more natural.

            Hallways are a great place to bring in the exterior colors for overall harmony.

According to Jeanette Fisher’s book Joy to the Home: Secrets of Interior Design Psychology, since, deeper shades of color imply intimacy and serenity, she recommends painting master bedrooms a medium shade of green or blue for warm selling seasons, and rouge red for cooler weather. Other bedrooms can be painted in creamy tones of green, blue, or a pale shell pink.

            For your bedroom and bathroom, cool colors can form a relaxing atmosphere with paint. Consider shades of blue, green or even lavender.

            Of course, common sense should help you with any color choices. You need to match other things in your home and keep a comfortable environment as well.

Guide to Buying vs. Renting

Is it better to Buy or Rent? Whether renting is better than buying depends on many factors.  The information listed here will assist you in helping answer this question.

Rent-to-Own Deals: Smart Questions to Ask...

For Sellers:

• Who will tend to the property and pay for routine maintenance?
• Who pays for major repairs?
• What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?
• Will you manage the property yourself, or hire an agent?
• What if the renters change their minds? Who keeps the money in the escrow account?
• If the buyers change their minds, what will be required to put the property back on the market?

For Buyers:

• How much of the rent is going to the down payment?
• How locked in are you if you change your mind?
• What will it cost you to get out of the deal?
• How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?

First Time Home Buyer Choices

by Connie Yoshimura

 If you’re a first time homebuyer looking to purchase your first residence under $250,000, you are in luck due to the lowest interest rates in over 50 years.  For you, buying is cheaper than renting—something I do not usually say because not all renters are well-suited to home ownership.  If you’re transient, in limbo about your life and goals, want to change careers or just not sure what the immediate future holds for you, then you should stay put until you’re ready to take that first big step to home ownership.  

 However, if you feel secure in your job, a good credit score, relatively free of long term and short term debt, you probably should seriously think about using your PFD check to check out owning your own home.  One reason is that due to the lack of apartment construction in Anchorage over the past five years, you can count on your rent increasing so consider fixing that monthly payment now while you can purchase a thirty year mortgage for under four percent—a rate unheard even one or two years ago.  Mortgage rates aren’t going to go any lower but property values will increase due to lack of affordable homes to choose from and the high cost of building new ones.

 So what’s out there to consider?  The Anchorage MLS lists 79 single family homes under $200,000 for sale.  But a closer look reveals that this category also includes trailers on single family lots and attached zeroes where you share a common party wall but, unlike condos, you own the lot your home sites on. I can say, with some assurance, there are no brand new single family homes for sale (most are 40 to 50 years old) in this category.  Even the attached zeroes are usually 20-30 years old.  Old is not necessarily bad but if you  purchase an older property be prepared for the extra costs of  maintenance and repair items whether it’s a new roof or new dishwasher. 

 If you say no thanks to an older property, you’re probably going to land in a condo development.  So the question is how to find the best condominium for your lifestyle.

A close location to work is fast becoming a pre-requisite for many buyers who are rejecting drive-time. Even in Anchorage, where the average commute is probably a half or a third of what it is in other metropolitan areas, more and more buyers are looking at properties that are only five to ten minutes from work. You save on gas and personal time.

 Another, more subtle consideration, is whether or not the condo is part of a well-planned community.  Does it have common areas? An attractive entrance sign? Is it close to a park or a school? A lot of condominium developments were thrown up during the l990’s without any consideration for what we call in the business ‘place making’ where every unit looks the same, even down to the paint color.

 A good condominium development has name recognition in the real estate industry as well as the general public.  It has varied exterior architecture yet maintains a homogeneous quality. As a first time homeowner, you want to be able to say with pride, “I live at……”  If you can’t say that phrase when you’re standing in the driveway of your potential first home, keep looking. 

 Another important factor is whether or not all the condos in the development are the same size and style. If every condo has the same number of bedrooms, bathrooms and garage space, and there are a hundred units in the development, chances are you’ll face some tough resale competition when you decide to sell and move-up. Variety in style and size adds diversity to the development and keeps it socially vibrant.

For more information please visit www.cyalaska.com

I received a compliment (complaint) via another Realtor about our company and thought I would tell you about it.  In this case we had a listing next door to the other licensees, and yes they work for a different brokerage.  The sellers were of course friends and spoke to each other on a regular basis.  Our seller was telling his neighbor about the reports we were sending to him on a daily basis, which he then complained to his Realtor about.

The Realtor came to us wanting to know what we're sending and why are we making them look bad (yes we are friends with our competition).  We explained to them that we were just keeping them up to date on the local market.

Here's the real story and why is it important to you.  See here at Prudential Jack White Vista Real Estate we have a great tool called Online Sellers Advantage (OSA).  OSA keeps seller informed of all market activity near their home.  The receive daily updates on price changes and any new competitors that may have come on the market.  They can see when other homes are pended (sold ). This is a vital tool and or sellers really like this information. 

The reports also show how many people have looked for a home in their price range and then it shows them if the prospective buyers actually looked at their home.  This tool shows you when more buyers have entered the market, or if someone really likes your home and has saved it as a favorite.

Our seller was very happy with this information and was very happy with our service as we help prospective buyers find his home.  This eventually lead to a sale and a very happy seller became homeless, which in this case was a great thing.

If you have questions about Online Seller's Advantage please call a Prudential Jack White/Vista Realtor and they will show you why it is a tool that will work for you.