The Kallhoff Team

Wednesday, June 5, 2013

Home Prices Soar to Largest Gain in 7 Years

DAILY REAL ESTATE NEWS | WEDNESDAY, JUNE 05, 2013

The housing recovery has picked up speed, as home prices posted their highest year-over-year gain since February 2006, according to the latest housing data from CoreLogic.

CoreLogic's home price index climbed 12.1 percent in April over year-ago levels. Home prices have been on the rise for more than a year.

"The pace of the housing market recovery quickened in April as home prices rose across the U.S.," says Anand Nallathambi, CoreLogic's chief executive officer. "We expect this trend to continue, bolstered by tight supplies and pent-up buyer demand."

CoreLogic economists predict home prices will rise another 2.7 percent in May.

The following five states had the largest price gains over the past year:

Nevada: +24.6%
California: +19.4%
Arizona: +17.3%
Hawaii: +17%
Oregon: +15.5%

Source: “April home prices see biggest yearly gain in seven years: CoreLogic,” Reuters (June 4, 2013) and “U.S. Home Prices In April Jumped Most in 7 Years,” The Associated Press (June 4, 2013)

http://realtormag.realtor.org/daily-news/2013/06/05/home-prices-soar-largest-gain-in-7-years

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Tuesday, June 4, 2013

Downsizing Trend Reverses, Americans Want Big Homes Again

DAILY REAL ESTATE NEWS | TUESDAY, JUNE 04, 2013

For the past three years, the average size of new homes has been on the rise. The median new-home size in 2012 reached a record high at 2,306 square feet, according to newly released data from the Census Bureau. That is an 8 percent increase from 2009.

During the Great Recession, Americans showed a preference for smaller homes, and many housing experts were saying it meant the end of the McMansion.

But Jeffry Roos, a regional president for homebuilder Lennar, told CNNMoney that it wasn’t that Americans wanted less space, they just couldn’t afford more space at the time.

Now, they’re upsizing again. A spokeswoman for GL Homes says that the builder has been selling homes that average 7 percent larger than during the first five months of 2012.

Some consumers are choosing to buy larger because they have more people under their roof. Lennar offers homes known as Next Gen, which feature separate suites for a mother-in-law or college grad who has moved back home.

Home shoppers tend to buy bigger than what they originally plan, Fred Cooper, a spokesman for Toll Brothers, told CNNMoney.

"In the downturns, in upturns, whenever, our customers typically added another 18 to 20 percent of floor space onto what already was a very nice house to begin with," Cooper says.

Source: “McMansions are making a comeback,” CNNMoney (June 4, 2013)

http://realtormag.realtor.org/daily-news/2013/06/04/downsizing-trend-reverses-americans-want-big-homes-again

Monday, June 3, 2013

Make an Offer That Sellers Can't Refuse

DAILY REAL ESTATE NEWS | MONDAY, JUNE 03, 2013

With shrinking inventories, many home buyers are finding only competitive offers will win them the house they want. A recent article by Kiplinger’s Personal Finance highlighted several ways that home buyers can make more competitive “irresistible” offers.

1. Be preapproved: About three or four months before home buyers even shop for a home, they should review their credit reports to make sure they’re accurate and take short-term steps to improve their credit score, says Michael Corbett, author of Before You Buy! Corbett says buyers then should get a bank’s preapproval. While that won’t guarantee they’ll get the loan, it shows sellers that a lender has verified the buyer’s income and credit score to determine that she can afford payments on a mortgage for a certain amount.

2. Don’t lowball: Buyers may only get one chance to get the home they want in a competitive market. They may not get a second try to sweeten the deal later, so a lowball offer the first time around could cause them to lose out. Buyers should use sales prices of comparable properties in the neighborhood to submit their best offer the first time around.

3. Consider an escalator clause: These purchase contract clauses are becoming more popular again. This is when the buyer agrees to increase their offer if there’s a higher bid from another buyer.

4. Add earnest money: The extra deposit can show sellers how serious the buyer is. Some buyers may even double the amount that the seller requests to show their commitment in purchasing the home.

5. Keep contingencies to a minimum: Sellers prefer no contingencies, but buyers want to protect their interests too. “Offset a financing contingency with preapproval and a strong earnest money deposit,” Kiplinger’s Personal Finance reports. “If you have enough cash, temper an appraisal contingency by assuring sellers that if the appraisal comes in lower than the purchase price, you'll pay the difference or split it with them (up to a certain amount).”

6. Write a letter: Personal love letters about the home addressed to the sellers are winning over some hearts lately. The letters tell the seller about the buyer (e.g. “We’re relocating from ...”) and what drew the buyer to the home (e.g. “We especially love ...”).

Source: “Making an irresistible home offer,” Kiplinger’s Personal Finance (May 31, 2013)

http://realtormag.realtor.org/daily-news/2013/06/03/make-offer-sellers-cant-refuse

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Friday, May 31, 2013

Mortgage Rates Climb to Highest Level in Year

DAILY REAL ESTATE NEWS | FRIDAY, MAY 31, 2013

Fixed-rate mortgages soared higher this week, reaching their highest averages in a year, Freddie Mac reports in its weekly mortgage market survey.

The 30-year fixed-rate mortgage -- the most popular choice among home buyers -- has climbed nearly half a percentage point since the beginning of this month -- from 3.35 percent to 3.81 percent this week.

"Fixed mortgage rates followed long-term government bond yields higher, following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance,” says Frank Nothaft, Freddie Mac’s chief economist. “Improving economic data may have encouraged those views.”

Despite the uptick, mortgage rates remain low by historical standards, Freddie Mac reports.

The mortgage giant reports the following national averages with mortgage rates for the week ending May 30:

30-year fixed-rate mortgages: averaged 3.81 percent, with an average 0.8 point, rising from last week’s 3.59 percent average. A year ago at this time, 30-year rates averaged 3.75 percent.
15-year fixed-rate mortgages: averaged 2.98 percent, with an average 0.7 point, rising from last week’s 2.77 percent average. Last year at this time, 15-year rates averaged 2.97 percent.
5-year adjustable-rate mortgages: averaged 2.66 percent, with an average 0.5 point, also up from last week’s average of 2.63 percent. Last year at this time, 5-year ARMs averaged 2.84 percent.
1-year ARMs: averaged 2.54 percent, with an average 0.5 point, dropping from last week’s 2.55 percent average. A year ago, 1-year ARMs averaged 2.75 percent.

Source: Freddie Mac

http://realtormag.realtor.org/daily-news/2013/05/31/mortgage-rates-climb-highest-level-in-year

Thursday, May 30, 2013

Mortgage Applications Drop 9% Last Week

DAILY REAL ESTATE NEWS | WEDNESDAY, MAY 29, 2013

Interest rates soared to their highest level in a year while mortgage applications fell again last week by 9 percent, the Mortgage Bankers Association reports.

For the third consecutive week, refinance applications dropped, falling 12 percent for the week ending May 24. That marked the single largest weekly drop this year for refinance applications. Refinance applications are at their lowest level since December.

Meanwhile, applications for purchases -- viewed as a leading gauge of future home sales -- rose 3 percent last week, the MBA reported.

The average 30-year fixed-rate mortgage rose to 3.9 percent -- the highest since May 2012, the MBA reported. The average 15-year fixed-rate mortgage was also on the rise, increasing to 3.1 percent from 2.96 percent the week before.

Source: “U.S. mortgage applications down 9% last week: MBA,” The Wall Street Journal (May 29, 2013)

http://realtormag.realtor.org/daily-news/2013/05/29/mortgage-applications-drop-9-last-week

Survey: RE/MAX is No. 1 Name in Real Estate

Posted 5/28/13
New survey results prove what you knew from experience, and what your prospective clients need to hear: When asked to name real estate brands, more buyers and sellers think of RE/MAX than any other brand in the U.S. and Canada.

And there’s more: RE/MAX is the brand they think of first.

These are the findings of a third-party survey of U.S. and Canadian homebuyers and sellers completed in March for RE/MAX, LLC.

The survey results are the basis for ready-to-use marketing statements that differentiate RE/MAX from the competition.

You can access the marketing statements using the Marketing Claims and Sloganssection of RE/MAX Mainstreet. Click on the “U.S. Claims” or “Canadian Claims” links.

You can also:
• Download a summary of the U.S. survey and claims• Download a summary of the Canadian survey and claims

In the survey’s “aided awareness” results, nearly 90 percent of U.S. respondents recognized RE/MAX when they read a list of real estate brand names. In Canada, the percentage was even stronger at nearly 97 percent.

But the ultimate test of a brand’s strength is “unaided awareness,” when respondents are asked to name companies without being presented with a list of names. In this portion of the survey, RE/MAX was mentioned more than any other real estate brand. RE/MAX also was the brand most often mentioned first – giving it the highest top-of-mind awareness in both the U.S. and Canada.

The phone survey was conducted between November 2012 and March 2013 by MMR Strategy Group. Respondents included recent homebuyers, sellers and those who intended to buy or sell a home. In the U.S., the sample size was in excess of 2,500. A similar methodology was used in Canada with a sample size of more than 600. In both countries, the results were statistically significant to a 95-percent confidence level.

http://public.remax.net/public-news/Pages/CI-REMAX1Name.aspx

Wednesday, May 29, 2013

Investors Place Big Bets on Widespread Housing Recovery

DAILY REAL ESTATE NEWS | WEDNESDAY, MAY 29, 2013

Investors are picking up shares of appliances, building materials, and even pickup trucks in betting on a widening housing recovery, The Wall Street Journal reports. Investors say that the increase in residential construction and home renovation represents a big opportunity on Wall Street.

The recovery is in "the very early innings," Russell Croft, a portfolio manager at Croft Leominster Inc., told The Wall Street Journal. "[I’m trying] to find the secondary or tertiary stocks that might be influenced by housing."

Following a run-up in shares of homebuilder stocks -- like Lennar, KB Home, and Toll Brothers -- investors are now diversifying, looking at such companies like appliance maker Whirlpool (which has surged more than 170 percent since the end of 2011) and Ford Motor Co. for pickup trucks. Investors are looking for anything housing-related, including companies that manufacture related items from roofing and floorboards to drywall and faucets.

Home improvement retailers Lowe’s and Home Depot have each soared by about 60 percent over the last 12 months.

With home prices still below about 28 percent from their 2006 peak, investors are seeing plenty of opportunity ahead for the housing market.

"The housing market is one of the best investible themes out there for 2013 and for 2014 as well," says analyst Kevin O'Keefe with Brown Advisory, which oversees $33 billion in assets.

Source: “Investors Spread Their Housing Bets,” The Wall Street Journal (May 27, 2013)

http://realtormag.realtor.org/daily-news/2013/05/29/investors-place-big-bets-widespread-housing-recovery?om_rid=AACssQ&om_mid=_BRpi0MB8y26XTu&om_ntype=RMODaily

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