Summit Realty

Existing Home Sales Approach Bull Market Territory

The housing market finished 2011 with strength, and is carrying measurable momentum into 2012.

According to data from the National Association of REALTORS®, on a seasonally-adjusted, annualized basis, December’s Existing Home Sales climbed by 120,00 units overall from the month prior on its way to an 11-month high.

An “existing home” is a home that’s been previously occupied; that cannot be considered new construction.

After 4.61 million existing homes were sold in December, there are now just 2.38 million homes for sale nationwide. The last time the national home supply was this sparse was March 2005.

At today’s sales pace, the complete, national home inventory would be exhausted in 6.2 months — the fastest pace since before the recession. A 6.0-month supply is believed to represent a market in balance.

The December Existing Home Sales report contained noteworthy foreclosure and short sale statistics, too :

• Foreclosures sold at an average discount of 22% to market value
• Short sales sold at an average discount of 13% to market value
• Together, foreclosures and short sales accounted for 32% of all home sales

Clearly, “distressed homes” remain a large part of the U.S. housing market.

Furthermore, in its report, the real estate trade group also noted that one-third of homes under contract to sell nationwide succumbed to contract failure last month. That’s up from 9% one year ago.

Contract failure occurs for a multitude of reasons, most notably homes appraising for less than the purchase price; the buyer’s failure to achieve a mortgage approval; and, insurmountable home inspection issues. December’s high failure rate underscores the importance of getting pre-approved as a buyer, and of buying homes in “good condition”.

For today’s home buyer in Carlsbad , December’s Existing Home Sales figures may be construed as a “buy signal”. Home supplies are dropping and buyer demand is rising. This is the basic recipe for higher home prices ahead.

If your 2012 plans call for buying a home, consider that home values throughout California are expected to rise as the year progresses. The best values of the year may be the ones secured this winter.

Tags: Existing Home Sales, Existing Home Supply, NAR

Join Summit Realty Group for the San Diego CDPE training event

JOIN US
for an Exclusive Webinar!

We just want to say how excited we are to be coming to San Diego to teach a live CDPE class.

Attend the fastest growing real estate training in your own neighborhood…

-You don’t have to fly
-You don’t have to stay in hotels
-You can simply wake up in your own bed and receive the training that day.

But first, we want you to fully understand why we were asked to come to San Diego and put on this training…

We don’t expect you to stop and drop everything you have been working on to sign up for a class that you don’t know much about.

We want to invite you to see why Summit Realty Group has decided that the CDPE is a crucial tool to help further your real estate business.

Please click on this link to view your free webinar!

Learn how over 24,000 real estate agents:

Close 21 More Transactions Per Year than a NAR agent
Average a 4-6 Week Short Sale Processing Time
Have 7 Times More Listings than Agents without the Designation
Find out what it takes to build a bulletproof business in an ever-changing real estate market!

Register for your San Diego webinar TODAY!

What is a CDPE and how can this designation help you grow your real estate business?

A Certified Distressed Property Expert®  (CDPE) has a thorough understanding of complex issues in today’s turbulent real estate industry and knowledge of foreclosure avoidance options available to homeowners. CDPEs can provide solutions, specifically  short sales, for homeowners facing market hardships. CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.

Join Summit Realty Group at the San Diego Sheraton in Mission Valley for this business building certification class! Contact Summit Realty Group today and ask about how to receive your $150 discount to this training event. Join Summit Realty Group and attend the San Diego CDPE class and receive an extra $50 credit!

Tags: CDPE, Certified Distressed Property Expert, San Diego short sale

When Should I Change My Home’s Air Filters?

How long has it been since you last changed your home’s air filters?

Home air filters trap and remove dust and particles from the air you breathe; leaving “clean air” to circulate your home.

Clean air in your home is important because it promotes better health.

One way to keep to keep your home’s air as clean as possible is to replace its used air filters at least once per quarter; or once monthly in homes with shedding pets or that otherwise “get dusty”.

Changing air filters is among the easier do-it-yourself chores for a Carlsbad homeowner; a task that takes less than one minute. The secondary benefit of doing it is that new filters help keep your HVAC unit in tip-top shape.

Here’s how to change your home’s air filter :

1. Open the air filter compartment door/slider on your HVAC unit.
2. Note the size of your current filter. It’s typically written on the frame.
3. Note the direction in which the filter is pointing. There may be an arrow on its frame.
4. Purchase a new filter at a hardware store. Make sure the sizes matches the size from Step 2.
5. Remove the old filter.
6. Replace old filter with the newly purchased one from Step 4. Make sure the arrow is pointing in the same direction as the original filter’s arrow.
7. Using a marker, note the date of filter change on the side of the filter.
8. Close the air filter compartment door/slider.

And that’s it.

When you find a filter type and style that you like, consider buying them in bulk — it can be helpful to have extra air filters laying around the home for when you need them — especially during season changes when you may want to replace filters more frequently.

In addition, when purchasing air filters, don’t opt for the cheapest available. Often, the least expensive filters allow large particles to recirculate through the HVAC unit, and back in to your home. Choose a middle- or top-line product instead.

Your home and your health will thank you.

Tags: Air Filter, Health, HVAC

Behind The Housing Starts Headlines, The Story That Matters

When it comes to housing data, sometimes you have to look past the headlines. December’s Housing Starts data offers a terrific illustration of why.

Each month, the Census Bureau tallies Housing Starts for the month prior. A “housing start” is a home on which construction has started.

The Housing Starts report is separated by property type. There is a count for single-family homes; a count for 2-4 unit homes; and a count for buildings of 5 units or more, a category including apartments and condominiums.

In December, as reported by the government, Housing Starts fell 4 percent nationwide overall. This runs contrary to recent strength in housing and the story was quickly picked up by the press :

• U.S. Housing Starts Fall More Than Forecast (BusinessWeek)
• U.S. Housing Starts Fall (MarketWatch)
• December Housing Starts Are Worse Than Expected (Fox Business)

Now, although these headlines are factually true, they’re also are a little bit misleading.

Housing Starts did fall 4 percent last month but that was for all Housing Starts, across all three property types. Data like this is somewhat irrelevant to home buyers in California or anywhere else nationwide.

Few buyers purchase 2-4 unit homes, and almost nobody purchases an entire apartment building. Rather, it’s the Housing Starts reports’ “single-family” tally that matters because that’s the home type that the majority of home buyers purchase.

In December, for the fourth straight month, Single-Family Housing Starts increased.

Single-family housing starts climbed 4 percent last month to 470,000 units on a seasonally-adjusted, annualized basis. This is the highest number of Single-Family Housing Starts since April 2010 — the last month of last year’s home buyer tax credit.

The Single-Family Housing Starts data is the latest in a series of data that point to a housing rebound nationwide. New Home Sales, Existing Home Sales, Pending Home Sales and Homebuilder Confidence has each posted multi-month highs and all are poised for strong gains into 2012.

If you’re planning to buy a home in 2012, consider buying in between now and March rather than at some point later. Home prices — and mortgage rates- are likely to move higher.

Tags: Homebuilder Confidence, Housing Starts, New Home Sales

Home Builders See More Sales, Higher Prices Ahead

Homebuilder confidence is soaring.

For the fourth straight month, the National Association of Homebuilders reports an increase in its Housing Market Index. The index climbed 4 points to 25 this month – its second four-point gain since October.

With home sales activity increasing across all four regions, the monthly HMI has now nearly doubled in value since June 2011.

The HMI is now at a 55-month high.

The Housing Market Index itself is a composite reading; the result of three home builder surveys sent by the National Association of Homebuilders to its members monthly. Home builders report back on current single-family home sales volume; projected single-family home sales volume for the next 6 months; and current buyer “foot traffic”.

The NAHB then results compiles the surveys into a single reading.

In January, home builders reported improving sales conditions across all three categories :

• Current Single-Family Sales : 25 (+3 from December)
• Projected Single-Family Sales : 29 (+3 from December)
• Buyer Foot Traffic : 21 (+3 from December)

The Housing Market Index corroborates recent U.S. government data that suggests housing is mending in California. Both Housing Starts and New Home Sales have out-performed expectations of late, it’s been shown, and the stock of new homes for sale nationwide is dwindling.

All of this, of course, is happening as demand from buyers heats up.  Foot traffic through builder homes is higher than it’s been in more than 3 years, say the builders — a time period that includes the duration of the 2010 home buyer tax credit.

It’s no surprise, therefore, that builders expect a strong 2012.

Jobs data is improving, mortgage rates remain low, and housing momentum is building. For home buyers in Oceanside , however, it may spell higher home prices ahead. Big demand and small supply creates scarcity and scarcity correlates to rising prices.

If you’re shopping new homes, the best “deal” may be the one you find today.

Tags: HMI, Housing Market Index, NAHB

Foreclosure Filings Fall To 49-Month Low

Foreclosure filings are fewer these days, according to foreclosure-tracking firm RealtyTrac.

In December 2011, the number of foreclosure filings nationwide fell 9 percent from the month prior. Not since November 2007 has foreclosure activity been this sparse across the country.

The drop does not appear to be seasonal, either.

Last month’s foreclosure filings were down 20 percent from December 2010 with “foreclosure filing” defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession. As a result of a unexpectedly strong year-end, 2011′s annual foreclosure rate was the lowest in 4 years.

One reason why the year may have closed so strongly is that Nevada, California, Michigan and Arizona — four states typically associated with high rates of foreclosures — each posted big drops in foreclosure filings between November and December, plus double-digit drops between December 2010 and December 2011.

In fact, among the country’s top 10 states for foreclosure activity, nine showed an annual foreclosure filing reduction.

Only Delaware worsened.

It’s also noteworthy that just 4 states accounted for half of last month’s total foreclosure filings.

• California : 25.8 percent of all foreclosure filings
• Florida : 12.0 percent of all foreclosure filings
• Michigan : 6.4 percent of all foreclosure filings
• Illinois : 6.2 percent of all foreclosure filings

Foreclosures are heavily concentrated, in other words. By contrast, the last 1% of activity is spread across 14 states.

As a Oceanside home buyer — first-timer or investor — foreclosures can be a great way to find value.

According to the National Association of REALTORS®, distressed homes typically sell at “deep discounts“ as compared to like, non-distressed homes. However, when you buy a foreclosure home from a bank, it’s different from buying a home from a “person”. Purchase contract negotiations are different and months may pass before your closing is approved.

If you’re buying foreclosure, therefore, seek the help of a professional real estate agent. Real estate agents have experience working in the process-heavy world of foreclosures and can help you come out ahead.

Tags: Foreclosures, RealtyTrac, REO

How To Clean An Exposed, Interior Brick Wall

Exposed interior brick can add a nice, decorative touch to your Carlsbad home, but because brick is a porous material and prone to staining, it can be cumbersome to clean.

Standard household detergents alone are rarely enough to clean brick properly, so if your home features exposed interior brick, plan to use alternative cleaning methods instead.

Here is how to do it.

First, find a pair of sturdy rubber gloves to protect your hands from the harsh brick surface and from your cleaning agents. Then, with a dry dish cloth, gently wipe the entire surface of the brick wall to remove loose dirt and dust.

Next, pour a grease-cutting dish detergent into a small bucket. Do not add water to the detergent. Add a small amount of table salt instead.

Mix well.

Next, apply a thin layer of the soap-and-salt mix to the bricks using a cloth and allow the mix to sit on the bricks for 10-15 minutes. Then, with a hard-bristled scrub brush, gently scrub the brick to remove the stubborn dirt.

Lastly, dip a clean dishcloth into a warm water-filled bucket and use the dishcloth to remove the detergent mix from the wall.

Allow the wall to air dry.

Cleaning exposed interior brick is more complicated than cleaning other household surfaces but a clean brick wall can help reduce in-home health hazards and keep your brick in its best possible condition for the long-haul.

Tags: Brick, Cleaning, DIY

California Govenor Brown to scrap Department of Real Estate

New Budget Proposal DRE 

 

Brown to scrap Department of Real Estate

 

January 10th, 2012, 1:00 pm · · posted by Jeff Collins

 

The California Department of Real Estate would be eliminated and its functions transferred to the state Consumer Affairs Department under Gov. Jerry Brown’s 2012-13 budget proposal unveiled Thursday, the Sacramento Bee has reported.

 

However, because the agency gets its revenue entirely from fees instead of taxes, the plan isn’t expected to gut the department or eliminate its enforcement and fraud prevention activities. The consolidation is one of dozens of changes Brown is proposing as part of his plan to streamline state government and cut spending.

 

Other proposed changes affecting housing:

 

Eliminating the Office of Real Estate Appraisers and moving its functions to Consumer Affairs.

• Moving the functions of the California Housing Finance Agency into the Department of Housing and Community Development.
• Merging the Department of Corporations and the Department of Financial Institutions into a new Department of Business Oversight.

DRE already is strapped. Its $47.8 million budget supports a staff of around 400 employees, of which only about 130 are attorneys, auditors and investigators involved in investigating and enforcing laws designed to prevent real estate fraud.

That includes cracking down on loan modification and foreclosure scams, which have been rampant in recent years.  The Orange County District Attorney, by comparison, has 155 investigators.

The department oversees nearly 436,000 real estate licensees, consisting of both real estate agents and mortgage brokers. Among its duties is administering the real estate license exams and preventing unlicensed residents from acting as real estate agents.

San Diego CDPE certification event on February 15-16th

February 15 & 16, 2012

Sheraton San Diego – Mission Valley
1433 Camino Del Rio South
San Diego, CA

Save $150 with the Summit Realty Group discount code. Join our 100% real estate commission brokerage and receive an additional $50 credit on this event! Contact an area recruiter for more information!

Tags: 100% Commission Brokerage, CDPE, San Diego short sale, Summit Realty Group San diego

Will Home Values Rise This Year

Will your home gain value over the next 12 months? Nobody can know for sure, of course, but should recent housing trends continue, there’s concrete cause for optimism.

The housing economy has suffered since 2007, knocking home values down nearly 20% nationwide. And while some areas have fared better as compared to others but, in general, home values are down.

Mortgage rates are down, too, and that’s good news for buyers in Carlsbad. The combination of low rates and low prices has led home affordability to an all-time high. As you’ll hear in this 4-minute interview with NBC’s The Today Show, carrying a mortgage costs 25% less per month as compared to just 3 years ago.

Some other notes from the interview include :

• There are more buyers out looking for homes today, which leads to more sales
• The housing market is expected to get gradually better, month-by-month, in 2012
• Foreclosures will continue to be a big part of the housing market

With housing supplies shrinking, buyers throughout California may find their best “deals” today — before the Spring Buying Season begins in February.

However, we can’t forget that housing markets are local — not national. Each town and neighborhood has its own market drivers and prices where you live may have already started to climb.

For accurate, up-to-date data on the housing market, talk with a local real estate agent.

Tags: Home Values, NBC, The Today Show