Tag Archives: Remodeling

Coldwell Banker Realty Check – Homebuyers Growing Optimistic

HomebuyersOptimistic
A new homebuyer/Agent sentiment survey by Coldwell Banker Residential Brokerage’s parent company has found a growing sense of optimism among buyers as the nation’s housing market continues to improve. In particular, buyers are becoming more confident about the stabilizing and increasing value of home prices.The annual homebuyer survey, which drew 5,865 responses, was designed to discover what was behind the recent increases in buyer demand. The key finding here seems to be a growing optimism about improving prices, which appears to be driven by an extreme shortage of homes for sale in many markets.While low interest rates and change in life situation were cited as the two highest factors motivating buyers, expectation that home prices will rise – a very new sentiment among buyers – came in a very close third. This optimism over values grew the most over the last 12 months (61 percent) closely followed by “increased optimism around selling” (51 percent).

Dan Barnett, senior vice president of marketing for Coldwell Banker Residential Brokerage’s parent company, said there is a very clear correlation between a growing optimism over prices and buyer frustration over the lack of homes for sale. The graph below depicts results by various NRT local operating companies:
GroiwingChart
Despite increased buyer and seller optimism overall, there still does not seem to be a big increase in move up buyers. About 42 percent of Agents said move-up buying was increasing “modestly” and only 7 percent said it was increasing significantly.Below are the results of the survey: What is motivating buyers to look now (factor is “very motivating” or “motivating”):

83% Low interest rates
60% Change in life situation
57% Expectation that home prices will rise
51% Job relocation
46% Real estate investment value
43% Confidece in personal economic outlook
42% Increased optimism around selling
37% Rising rental prices

Which factors have become more important now than a year ago:

61% Expectation that home prices will rise
51% Increased optimism around selling
44% Low interest rates
35% Real Estate investment value
34% Confidence in personal economic outlook
28% Rising rental prices
27% Change in life situation
22% Job relocation

What are buyers complaining about:
(% saying “frequently” or both frequently and “more often than not”)
41% (69%) Lack of inventory
19% (52%) Uncertainty in economy
11% (44%) Home affordability
19% (43%) Difficulty with mortgage appraisal
18% (42%) Difficulty qualifying for a mortgage

How do buyers cope with limited inventory (Agent could pick more than one):
87% considered expanding the geography they would consider
85% prepared to pay more
74% considered distressed properties
70% stopped looking
54% considered buying new construction
54% considered foregoing a move

What is happening in the overall market:

Prices:
63% of our Agents found that home prices were increasing, with larger increases identified on the west coast. Half of the San Francisco Agents described home prices as increasing significantly.

Inventory:
78% of our Agents found inventory to be decreasing. Atlanta, Florida, Hawaii and Sacramento are feeling the most constrained by low inventory.

Transaction volume:
Agents report that transactions are up somewhat – 40% – with the most activity being reported in the Midwest and West.

Buyer confidence:
60% of Agents report that buyer confidence is increasing, across the board. Sacramento and Harrisburg, while generally positive, lag the nation.

So what does all this mean for you? Every day, both buyers and sellers are growing more confident as the housing market continues its steady rebound. If you have been thinking about buying a home, you shouldn’t wait too long. We have a good window of opportunity right now when interest rates are low and prices are still very affordable. But that won’t last forever, as history has shown us. Even a small jump in mortgage rates could significantly change how much you’ll end up spending on a home. If you’ve been considering buying a home, there may not be a better time than now. I’m ready to help you find the home of your dreams today. Let’s get started!
©2013 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Coldwell Banker Residential Brokerage Office Is Owned by a Subsidiary of NRT LLC. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. DRE License #01908304

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow homeowners!

Be sure to follow us on Facebook at www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete blurb with it: Jack & Tracey Edwards, your real estate advocates, specialize in helping buyers and sellers in Elk Grove, CA,  and the greater Sacramento area.   Get information about available homes online at:  www.ElkGroveRealEstate.comOur mobile clients can find us at Mobile.ElkGroveRealEstate.com

 

Coldwell Banker Realty Check — July 2012

MontereytoTahoe
The words million-dollar home used to evoke thoughts of grand estates in the country or oceanfront homes with breathtaking whitewater views or a glamorous penthouse in a downtown high-rise. In some cases, a million still may buy you that – somewhere, at least.

But of course, the three rules in real estate still are location, location and location. What you get for $1 million today in Northern California varies dramatically depending on where you’re looking to buy.

MontereytoTahoe1

To see what buyers could get for their million dollars we decided to take a look at communities from the Monterey coast to Lake Tahoe, from Silicon Valley to Sacramento, and many locations in between. What we found made interesting and fun reading.

In the state capital, for example, buyers could purchase a spectacular lakefront custom home, approximately 4,700 square feet, only 10 minutes from downtown Sacramento for $989,000. This beautiful property features four bedrooms and four baths, a gourmet kitchen, grand staircase, and a huge master bedroom suite with separate sitting room and fireplace.

MontereytoTahoe4

 

If you want to trade that lakefront property for one near the ocean, be prepared to pay up. For $1 million you can snag a cute two-bedroom condo approximately 1,500 square feet in posh Carmel by the Sea. A few blocks off fashionable Ocean Avenue, this unit is about a mile or so from the Pacific Ocean.

The reason for the disparity, of course, is that property values are considerably more affordable in Sacramento than in Carmel. According to DataQuick, the real estate information company, the median sale price for a Sacramento home in May was $129,000 compared to Carmel and nearby Pebble Beach, which boast a median price of more than $1.2 million. Put another way, you could buy nearly 10 median-priced properties in Sacramento – or a good-size residential block – for the cost of one median-priced home in Pebble Beach.

The Monterey Peninsula doesn’t have a lock on valuable real estate. In fact, several communities in Silicon Valley and its surrounding suburbs topped that list, including Atherton with a median sale price of $3.5 million. Unfortunately, it is currently not possible to compare what $1 million would buy in Atherton because there are no properties listed for sale at that low of a price. The least expensive listing in Atherton: $1.35 million for a 1920s cottage.Elsewhere in Northern California, here’s what you can buy with $1 million based on current active listings in July:

  • Oakland – a four-bedroom, three-bath single-family home in the Oakland hills measuring approximately 3,100 square feet. This home includes 18-foot vaulted ceilings, a three-car garage and some views of the bay.
  • Pleasanton – a four-bedroom, two and a half bath approximately 2,700-square-foot contemporary home with views of Mount Diablo. Large backyard includes pool and spa with waterfall, and built in barbecue.
  • Tiburon – A one-bedroom, two bath approximately 950-square foot waterfront cottage. While the home is small in size it has sweeping views and is close to the ferry, the yacht club and Tiburon restaurants and shops.
  • Santa Rosa – a four-bedroom, four-bath custom home overlooking the Riebli Valley. This approximately 5,800-square-foot property features a high-end kitchen with Viking and Bosch appliances, a bedroom suite with fireplace, plus a media/theater room.
  • Palo Alto – a two-bedroom, one-bath approximately 1,150-square-foot cottage near the downtown area. This cute property actually is on leased land with 54 years left on the lease.
  • San Francisco – a uniquely rebuilt approximately 900 square-foot, one bedroom, two level compact single family house could be a perfect pied-a-terre in the City. It’s located near the Bay Club, Jackson Square, the waterfront and Ferry Building.
  • Davis – a four-bedroom, three-bath approximately 2,800-square-foot newly updated custom home with his and her walk-in closets, a gated pool, and a chef’s designer kitchen complete with Wolf ovens, six gas burners, and two Miele dishwashers.
  • Roseville – a five-bedroom, four-bath approximately 5,100-square-foot home in a gated community. Built in 2001, this expansive home features a solar-heated pool, a three-car garage and five fireplaces.
  • Truckee – a four-bedroom, three-bath approximately 3,200-square-foot mountain home situated a block from the golf course and a short drive to downtown Truckee and numerous ski resorts.

While it’s uncertain exactly what you can buy with $1 million today, one thing is clear: This may be a great time to take advantage of low mortgage rates and lower home prices to buy a home anywhere.In fact, for the first time in a long, long time, it’s actually cheaper to own a home than to rent the same home. That’s one of the findings of a new report by the Joint Center for Housing Studies at Harvard.

MontereytoTahoe2

Due to historically low mortgage rates and lower home prices post-recession, affordability levels for purchasing a home are as high as they’ve been over the past two decades. Conversely, the cost of renting is soaring in many regions, including right here in the Northern California.

San Francisco and Oakland had the biggest jumps in rent in the United States over the last year, with increases of 14.7 percent and 11.2 percent, respectively, according to Trulia, the online real estate site. Sacramento also saw a 4 percent increase and 24 of the 25 largest metropolitan areas had experienced year over year rent hikes.“With rents up, home prices sharply down, and mortgage interest rates at record lows, mortgage costs relative to monthly rents haven’t been this favorable since the early 1970s,” said Eric S. Belsky, managing director for the Joint Center for Housing Studies at Harvard.

 In its report, Harvard noted that the mortgage payment for the median priced home in the U.S. (when calculated in 2011 dollars) is roughly half as much as it was in 1990! Nationwide, the payment-to-rent ratio was as high as 1.45 in 1990. (A one to one ratio means the cost would have been the same to rent vs. to buy). That translates into a 45% premium in renting vs. buying in 1990. Today? The study says the ratio has tumbled to 0.77, making mortgage payments 23% less than rent payments for the median priced home.
MontereytoTahoe3
Many potential buyers have gotten the message and they are the reason that home sales in some parts of Northern California have rebounded nicely in the past year or two. The Harvard study says that others who have been sitting on the fence could join them soon as rental costs continue to rise, especially relative to homeownership costs.“Many would-be buyers have stayed on the sidelines waiting for the job outlook to improve and house prices to stop falling,” Belsky said. “But as markets tighten, these fence-sitters may begin to take advantage of today’s lower home prices and unusually low mortgage rates.”So if you’ve been putting off buying a home, there may not be a better time than now to jump into the market. Coldwell Banker Residential Brokerage professionals are ready to help. Just give me a call today and we’ll work together to find the home of your dreams.


Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow homeowners!
Be sure to follow us on Facebook at www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete blurb with it: Jack & Tracey Edwards, your real estate advocates, specialize in helping buyers and sellers in Elk Grove, CA,  and the greater Sacramento area.   Get information about available homes online at:  www.ElkGroveRealEstate.comOur mobile clients can find us at Mobile.ElkGroveRealEstate.com

 

Coldwell Banker Realty Check — May 2012

SAChousingturning
With spring in full bloom, there is growing evidence that the nation’s housing market is shaking off its long hibernation and heating up once again. Several recent industry studies have shown that home prices are stabilizing across the country and that the U.S. housing market may have already begun a turnaround.

This comes as welcome news for buyers, homeowners and potential sellers. Some prospective buyers have been waiting for the “all-clear” signal that the downturn is over before jumping back into the market. And all homeowners, of course, have to be encouraged by stabilizing prices and signs that demand for real estate is accelerating once again.

One of the most followed analysts of the nation’s housing market issued a new report this month entitled: Housing Markets Stabilizing, Affordability at 40-Year High. The Fiserv Case-Shiller analysis of home price trends in more than 380 U.S. markets found that the majority either rose slightly year-over-year or had very modest declines -– the smallest since the housing recession began.

“Nearly all non-price metrics – existing home sales, rising home order volumes, increased spending on home improvement, a jump in multi-family construction – indicate that the housing sector hit bottom last year and has started along a path of slow recovery,” says David Stiff, chief economist, Fiserv.

Fiserv said the rebound in the market will be driven by investors who buy primarily in lower-cost markets, and then spread to the rest of the market segments. The firm expects that home prices, which it says generally lag sales activity by nine to 12 months, “will stabilize by the end of this summer and then rise at an annualized rate of 3.9 percent over the next five years.”

Nationwide, home prices are roughly 35 percent lower than their peak in the first quarter of 2006. Due to this “unprecedented decline and record-low mortgage rates,” Fiserv noted, “affordability has improved dramatically.”

The monthly payment for a median-priced home using a conventional 30-year mortgage now represents just 12 percent of median-family income – the lowest percentage on record (since 1971), the firm said.

Analysts at Fiserv say record-level affordability will eventually bring more first-time and trade-up buyers back into the housing market, especially as the cost of renting an apartment continues to increase and new households are formed. In many parts of the country, it is now actually cheaper to buy a median priced home and build up equity than to pay rent to a landlord each month!

No doubt the housing downturn and resulting drop in home equity were contributors to the recent recession. “However, very low prices have also started to draw in more buyers,” Fiserv said. “As demand for houses ramps up, construction activity will increase and residential investment will begin to make a substantial contribution to the recovery and GDP overall.”

Other widely followed industry analysts and media outlets are also growing more bullish on the housing market. For example, a recent Forbes magazine article declared, Home Prices Are Stabilizing, Signifying A Housing Market Bottom.

In the article, Forbes reporter Morgan Brennan says that data from a variety of research firms “reinforces a notion already asserted by many an economist, real estate agent and Wall Street Investor that 2012 is the year of the bottom.”

The law of supply and demand seems to be at work here. While the economy steadily improves and buyer demand grows, housing inventory levels have been steadily declining. Forbes reports that at the end of the first quarter this year, “there were 2.4 million existing homes on the market, nearly 22 percent less than last year.”

The shrinking inventory levels have actually led to bidding wars and upward pressure on prices in some areas. We’ve seen that in some parts of the Sacramento and Tahoe region, where attractively priced homes in good neighborhoods often attract three, five, or even more offers and often sell for over the asking price.

JP Morgan CEO Jamie Dimon, in his annual letter to investors, joined the chorus of housing market bulls. Dimon noted the dwindling supply of homes and condos for sale as one of nine reasons why he believes the housing market has reached a turning point.

As inventory of homes available for sale has been steadily declining, the U.S. population has grown by 3 million people per year since the housing crisis began four years ago, Dimon points out. At that growth rate, there would typically be a need for 1.2 million additional housing units, but builders are producing far fewer homes today.

As the job market continues to improve, demand for housing will quickly outpace supply, Dimon argues.

According to Forbes’ sources, completed home sales jumped 4.7 percent in the first quarter of 2012 and pending homes sales rose 12.8 percent since March 2011. Forbes reported that. “As inventory levels continue to tighten, a recovery, however nascent, can begin to materialize.”

Growing sales and a shortage of inventory are already having an impact on prices. The National Association of Realtors reported that in the first quarter of 2012, the median existing single-family home price rose in 74 of the 146 metro areas that the association follows. By comparison, in the fourth quarter of last year only 29 metro areas saw price increases.

Real estate research firm CoreLogic released data this month showing that home prices nationwide, including distressed sales, rose 0.6 percent from February to March for the first month-over-month increase since last summer.

Mark Fleming, the chief economist for CoreLogic has reported that “This spring the housing market is responding to an improving balance between real estate supply and demand, which is causing stabilization in house prices.”

While there have been signs of a balancing market the past couple of years, Fleming said the difference this year is that stabilization is occurring without the support of tax credits and in spite of fewer distressed sales.

So where does this all leave us? If you’ve been waiting for the “all-clear signal” to get into the market, the time may be here. While no one knows for sure when a turnaround happens until after it happens, there is growing evidence that the housing market has indeed begun to rebound.

If you’ve been thinking about taking advantage of record affordability and attractive home prices, now is the time. Coldwell Banker Residential Brokerage is ready to help you get into the home of your dreams while the market is still in your favor.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow homeowners!
Be sure to follow us on Facebook at www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete blurb with it: Jack & Tracey Edwards, your real estate advocates, specialize in helping buyers and sellers in Elk Grove, CA,  and the greater Sacramento area.   Get information about available homes online at:  www.ElkGroveRealEstate.comOur mobile clients can find us at Mobile.ElkGroveRealEstate.com

 

Should I Buy an Older Home or a Newer Home?

The best answer to that question, of course, is, it depends!!!

Since I just received a similar question from one of my clients, I figured that I should put together some real-time numbers before answering.

Her question was, “How much more does a newer resale home cost than an older home?”

Graphic of homesSo, I looked up sales in the past 6 months for 3 bedroom, 2 bath homes that were built between 1987 and 1999 in the Laguna Creek neighborhood of Elk Grove, California.  A simple market analysis of these homes showed that the average home was about 1,448 square feet in size and that the average sales price was about $159,000.  Therefore, the average price per square foot was about $110.

Then, I looked up the sales in the past 6 months in the East Franklin neighborhood of Elk Grove, California. Only looking at 3 bedroom, 2 bath homes that were built between 2000 and 2007.  The average home in this neighborhood was about 1,692 square feet in size and the average sales price was $197,000. That amounts to an average cost per square foot of $116.

So, on the surface, the older home was about $6 per square foot cheaper, but was also much smaller.

Does that mean that I could tell her that the older home was a better buy?  Again, it depends.

Most of the homes built before 1991 in our communities had cedar shingle roofs.  Most of them are in need of replacement.  So, if you bought an older home with a shingle roof, you would need to consider the cost of a new roof when you compare these older homes with the newer homes that have tile roofs.  Generally, you are not going to replace a shingle roof with a tile roof because the older home was not engineered to handle the weight of a tile roof.  The alternative would be a standard composition shingle roof.  How much does it cost to replace the old shingles with a composition shingle roof?

I went online to the Service Magic site that provides the homeowner with estimators for such tasks. http://www.improvenet.com/HomeOwner/ProjectTools/index.html  Based on the the roofing estimator, depending upon the type of roof you were replacing and the quality of the roofing materials you were using, the cost could be somewhere between $5,000 and $10,000 to replace the roof.

Unfortunately, the older roof is not the only consideration.  What about paint and carpeting?  You may have that expense for the newer home, as well as the older home, but since the newer home is generally larger, the cost for paint and carpet will be higher in the newer home.

Also, the kitchen and bathroom may need updating in the older home.  And, last, but not least, you may need to consider replacing windows in the older home. That can add another $15,000 or more to the cost of upgrading the older home.

It seems like it is pretty easy to bring the cost of the older home up to the cost of the newer home if you do the roof, windows, kitchen and bathroom.  You still have an old heating and air conditioning system to deal with too.

Although the older home was an average of $42,000 cheaper than the cost of the newer home, was it the better investment or not?

If it’s a home that I am buying as a rental, then maybe I will lean towards the older home because I probably won’t do anything other than the roof and paint and carpet.  If I am going to live in it, then I will want to do it all and my overall cost will probably be about the same.

In the end, I guess it is all a matter of personal choice. Some people really like the look and feel of the older, more mature neighborhood. Some want the newer neighborhood.

With the above info, you should be in a position to make the best choice for you. And, when you are ready to move forward, give us a call at www.ElkGroveRealEstate.com, and we will be happy to answer your questions and help you experience the joy of home ownership.


Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow homeowners!
Be sure to follow us on Facebook at www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete blurb with it: Jack & Tracey Edwards, your real estate advocates, specialize in helping buyers and sellers in Elk Grove, CA,  and the greater Sacramento area.   Get information about available homes online at:  www.ElkGroveRealEstate.comOur mobile clients can find us at Mobile.ElkGroveRealEstate.com

 

Just in Case You're Not Naturally Handy…

Here is a great website that will help you with projects around your home.  This is really helpful if you don’t have a Black and Decker Home Maintenance book.  It’s a good substitute.  Check it out!

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

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