Archive for the ‘News’ category

Housing: Year End Reports Reveal Market Coming Back

January 4, 2013

Housing: Year End Reports Reveal Market Coming Back

Every year-end housing report revealed that the real estate market is recovering quite nicely. Here is a quick synopsis of each:
Housing-Market
Existing Home Sales Report

Total existing-home sales rose 5.9 percent in November over last month
Sales are 14.5 percent higher than November 2011
Sales are at the highest level since November 2009
The national median existing-home price was $180,600 in November, up 10.1 percent from November 2011
Total housing inventory at the end of November fell to a 4.8-month supply; it was 5.3 months in October, and is the lowest housing supply since September of 2005 when it was 4.6 months
Pending Sales Report

Pending home sales increased in November for the third straight month and reached the highest level in two-and-a-half years
The index is at the highest level since April 2010 when buyers were rushing to beat the deadline for the home buyer tax credit
With the exception of several months affected by tax stimulus, the last time there was a higher reading was in February 2007
On a year-over-year basis, pending home sales have risen for 19 consecutive months
New Home Sales Report

Sales of new homes rose 4.4% in November to a two-and-a-half-year high
This is the highest level since April 2010, when a temporary tax credit boosted demand.
Sales are now 15.3% higher compared to one year ago
Case Shiller Home Price Index

Home prices rose 4.3% in the 12 months ending in October
In nineteen of the 20 cities covered, annual returns in October were higher than September

KCM repost

The facts about the 3.8% Tax in Health Bill

November 5, 2012

You may have seen the chain emails or heard the rumors about the new 3.8 Tax on Real Estate coming in 2013.  Most of the rumors and emails are inaccurate.  Here is a link to the facts about the new law.  Click the image to download the PDF file instantly.

 

 

Should I Rent My House If I Can’t Sell It?

October 5, 2012

There has been a lot written about how buying a home is less expensive than renting one in many parts of the country. Rents are skyrocketing and homes are at bargain prices. These two situations are also causing some sellers to consider renting their home instead of selling it. After all, they can get great rental income now and perhaps wait until house values increase in the future before selling.

This logic makes sense in some cases. We at KCM believe strongly that residential real estate is a great investment right now. However, there is a huge difference between deciding you want to become an investor (and landlord) and deciding that renting your primary residence might be ‘easier’ than trying to sell it. As a real estate professional, it is your job to educate the homeowner to the possible challenges that might arise if they rent their home.

Here are some questions every potential landlord should consider:

10 Questions to Ask BEFORE Renting Your Home

1.) How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).

2.) Because of the economy, over ten percent of homeowners can no longer make their mortgage payment. What percent of tenants do you think can no longer afford to pay their rent?

3.) Have you interviewed a few experienced eviction attorneys in case a challenge does arise?

4.) Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?

5.) Will you allow pets? Cats? Dogs? How big a dog?

6.) How will you actually collect the rent? By mail? In person?

7.) Repairs are part of being a landlord. Who will take tenant calls when necessary repairs arise?

8.) Do you have a list of craftspeople readily available to handle these repairs?

9.) How often will you do a physical inspection of the property?

10.) Will you alert your current neighbors that you are renting the house?

 

*KCM Blog repost, thanks!

How to Fight Foreclosure

September 21, 2012

Housing Market Year Over Year

September 21, 2012

The Truth about the 3.8% Obama’s HealthCare Plan

September 4, 2012

The Truth about the 3.8% Obama’s Healthcare plan

by bradpearson

I’m sure you’ve gotten the chain e-mails, read the websites, or had your clients, friends, or family ask you about the 3.8% tax under the “Obamacare” plan. Needless to say, I’ve had many of our agents forward them to me from their clients asking if I “knew about this”. Every time, I simply forward the truth from NAR’s website. These chain e-mails have ridiculous examples like “if you sell a $100,000 home after Jan. 1, 2013, you will have to pay $3,800 in tax”. This couldn’t be further from the truth! I’m a devout Republican, so putting politics aside, these emails are complete fear tactics created to detract from the Obama Administration and Obama’s Health Care initiative. They’re not true and end up getting believed by people who don’t know how to use Google to verify facts before panicking. Now, don’t get me wrong, I don’t like the tax, I don’t agree with it, but it’s not AS bad as it’s being made out to be and I simply don’t want us to get caught up in spreading incorrect information received in chain e-mails.

Of course as Realtors, we can NEVER give out TAX advice, and should always refer TAX questions to the appropriate professionals, but we can simply forward the correct information as published by a reliable 3rd party.

Below I have attached a link to download the National Association of Realtors PDF booklet that very clearly and simply explains the new law. It has simple scenarios as well as examples to make it easy to understand who this tax would apply to.

Click image to download PDF

Warren Buffett: It’s Time to Buy Real Estate

March 13, 2012

Warren Buffett appeared live on CNBC’s Squawk Box this week. During the interview, he was asked about the current real estate market and whether he felt now was the time to buy. His response was rather emphatic and has been used as a headline in hundreds of articles since the interview:

“If I had a way of buying a couple hundred thousand single-family homes I would load up on them.”

However, throughout the interview, he addressed the market from a few angles. Here is what he said:

Why invest in real estate now?

“It’s a way, in effect, to short the dollar because you can take a 30-year mortgage and if it turns out your interest rate’s too high, next week you refinance lower. And if it turns out it’s too low, the other guy’s stuck with it for 30 years. So it’s a very attractive asset class now.”

Is buying your own home better than investing in stocks right now?

“If I knew where I was going to want to live the next five or 10 years I would buy a home and I’d finance it with a 30-year mortgage… It’s a terrific deal.”

Should we buy multiple houses?

“If I was an investor that was a handy type and I could buy a couple of them at distressed prices and find renters, I think it’s a leveraged way of owning a very cheap asset now and I think that’s probably as an attractive an investment as you can make now.”

Over the last couple of months, there have been more and more financial analysts coming to the same conclusion: It’s time to buy real estate.