Catherine Sawatsky Fresno Real Estate

Housing and Economy Headed for Sustainable Recovery; First-Time Homebuyers Lead the Way

Catherine Sawatsky — Thu, 19 Nov 2009 18:49:00 GMT

Housing and Economy Headed for Sustainable Recovery; First-Time Homebuyers Lead the Way

Posted By susanne On November 17, 2009 @ 4:32 pm In Home Buying 101, Real Estate, Today's Marketplace, Today's Top Story, Today's Top Story - Consumer | Comments Disabled

^[1]RISMEDIA, November 18, 2009—Aided by the home buyer tax credit, the outlook for housing and the economy appears headed for a sustainable recovery, according to the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said the projections are enhanced by a tax credit expansion to more home buyers through the middle of 2010. “Given the success of the first-time buyer tax credit to date, and the need for qualified buyers to continue to absorb inventory that will include additional foreclosures over the coming year, we are hopeful about the impact of the expanded tax credit because it will stabilize home prices,” he said. “In fact, the credit is working better than first projected – it now looks like we’ll have 2.3 to 2.4 million first-time buyers this year.”

The 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows first-time buyers accounted for a record 47% share of home sales over the past year, up from 41% in the 2008 survey. The share has risen steadily since a cyclical low of 36% in 2006.

Existing-home sales are expected to total 5.01 million in 2009, a gain of 2.0% over last year, and then are forecast to rise 13.6% to 5.69 million in 2010. “A steady draw down of inventory will help home values to turn positive in 2010, but risks such as unemployment remain in the economy,” Yun said.

New-home sales are projected at 397,000 this year, recovering to 549,000 in 2010. Housing starts, including multifamily units, should total 564,000 units this year but grow to 752,000 in 2010.

The 30-year fixed-rate mortgage will probably average 5.3% in the fourth quarter, rising gradually to 5.8% by the end of next year. NAR’s housing affordability index will set a record in 2009, averaging 30 percentage points higher than 2008. Affordability will decline from record highs next year but will remain at historically attractive levels for home buyers.

“We’ve seen a steady downtrend in housing inventory for well over a year and home prices appear to be in the early stages of stabilizing. With the expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3 and 5% in 2010, but with wide geographic differences,” Yun said. He expects growth in the U.S. gross domestic product to be at a pace of 2.5% in the current quarter, with GDP up 2.8% in 2010.

The unemployment rate is close to peaking and is projected to ease to 9.5% by the end of next year.

“The size of the U.S. budget deficit is a concern going forward, and carries the risk of higher inflation. At this point, that risk appears to be restrained,” Yun said. Inflation, as measured by the Consumer Price Index, is seen contracting 0.4% this year, then rising 1.6% in 2010. Inflation-adjusted disposable personal income is estimated to grow 0.4% this year and 1.2% next year.

For more information, visit www.realtor.org ^[2].

The Real Estate Report

Catherine Sawatsky — Tue, 29 Jul 2008 16:36:00 GMT

Catherine Sawatsky

This Month in the Real Estate Report:

.	Common red flags for home buyers
.	Is buying a home to live in a good investment?

The Real Estate Report is brought to you courtesy of:

Catherine Sawatsky
Century 21 C.Watson
7520 North Palm
Fresno, CA 91711

Mobile:
(559) 307-6564
Main:
(559)261-4663
http://www.fresnohomes.us
Catherine@FresnoHomes.US

August 2008

Volume 18 No. 8

Common red flags for home buyers

By Dian Hymer

Besides physical defects, don't overlook financing and agent professionalism

Last year, before the subprime crisis hit, a home buyer was on the verge of purchasing his first home. His mortgage broker told him that qualifying for a mortgage would not be a problem.

After reviewing the numbers of an attractive teaser-rate adjustable, the buyer had second thoughts. He called a knowledgeable friend and asked her to review the loan documents with him. After fully understanding how much the loan would ultimately cost, he decided not to go through with the sale.

In the residential real estate business, a red flag refers to a condition affecting a property that might be a material fact that needs further investigation. A material fact is something that would affect the buyers' decision to buy or the price they would be willing to pay. For example, a hole in the roof is a red flag that the roof might need replacing.

Although red flag is a concept commonly associated with the physical aspects of a property, it's a valuable notion for home buyers to keep in mind throughout all aspects for their home search and purchase. If more buyers had raised questions about the mortgages they took out during the past several years when lending practices were lax, there would be fewer foreclosures today.

HOUSE HUNTING TIP: Home buying is an exciting experience. It can also be stressful. To ensure a satisfying home-buying experience, resolve to stay actively involved in the process. Commit to being hypervigilant. Watch out for red flags and investigate anything questionable.

Working with an excellent real estate agent will increase your confidence level. However, your agent acts on your behalf and should not make decisions for you. Always remember that you are in the driver's seat. This applies to sellers as well.

Make sure that you work with quality professionals in your area. If your real estate agent or mortgage person doesn't return your calls promptly, this could be a red flag this relationship won't work well for you. Likewise, if your agent keeps showing you properties that don't match your criteria, you could be in for a frustrating and time-consuming experience.

If you get conflicting information about a property, this could also be a red flag. It might indicate carelessness. Or, it could mean that someone is concealing a material fact. Follow through and find out answers to all your questions. There are no stupid questions when it comes to buying and selling real estate.

It's a red flag if an inspector you hire to inspect the house you're buying tells you that he already inspected the property for the seller, but you were never given a copy of the report.

Don't make any assumptions without following through to verify that they are accurate. For instance, if there's a downstairs living area with a second kitchen, don't assume you can rent it to a tenant even if the seller has in the past.

If the property is located in a neighborhood zoned for single-family residences only, renting the downstairs might be a zoning violation. If you're counting on income from the lower living area, you could find yourself in a house you can't afford if the zoning regulations are enforced.

Don't overlook upcoming changes in the neighborhood. For example, the seller should, but might not, tell you that a school is going to be built across the street. If you're sensitive to noise, this could become a problem for you. Vacant land close to the property is a red flag.

THE CLOSING: Find out what will be built there before making a final decision.

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Is buying a home to live in a good investment?

By Dian Hymer

Despite benefits, price appreciation not guaranteed in today's market

Anecdotal evidence suggests that in some markets investors are buying foreclosure properties at bargain prices. These properties are located in areas that appear to have good growth potential, and they generate enough rental income to at least offset the holding and maintenance costs. The deal needs to make sense financially regardless of whether there is a big run up in appreciation. The plan is to hold the property for the long term.

There was a time not long ago when investors bought condos and houses even if they didn't produce enough cash flow to cover the carrying costs. Prices were rising so quickly, they could afford a little negative cash flow. The holding period was short and the appreciation payoff was big. According to Standard & Poor's/Case-Shiller 20-city home-price index, prices increased almost 75 percent between February 2000 and February 2008.

In most housing markets, it's not possible to count on appreciation now. The market could be bottoming out in some places, according to some economists. Or prices could move lower before leveling off. It could be years before significant appreciation is again part of the housing picture. With this in mind, is buying a home to live in still a good investment?

Just as the lenders are moving back to basics in terms of qualifying borrowers for mortgages, home buyers should examine the fundamentals of home ownership to determine if they are good candidates.

HOUSE HUNTING TIP: The equity in your personal residence shouldn't be used to pay for vacations, education, new cars and credit-card debt. Many homeowners who participated in serial refinancing when rates were low and money was easy found they had no equity left when the credit crunch hit in August 2007. A good portion of these repeat refinancers now owe more than the current value of their home.

Along the same lines, it's risky to look at your home as a retirement account. It's not a good idea to rob your pension plans in order to purchase a home. This money should be kept for retirement. Some financial advisors suggest that you don't consider the equity in your home as part of your financial portfolio. After all, you will always need to live somewhere. Most people will always need to budget part of their net worth for housing.

Buying a residence hoping for appreciation to increase your net worth is dicey. You may earn appreciation. Nationally, home prices have tended to rise over the long term. But, this doesn't mean that your home will appreciate during the time period you own it.

However, there are plenty of good reasons to buy your own home, if you can afford it. The government subsidizes the cost of home ownership by permitting taxpayers who itemize deductions to write off some or all of the mortgage interest and property taxes they pay. Restrictions do apply. So, check with your tax advisor before making a purchase.

Owning your own home gives you a sense of security. You can choose the community in which you live. You're not at the mercy of a landlord who might issue an eviction notice. If you buy with a fixed-rate mortgage, you know how much you'll be paying over time. Rents, in most places, are subject to increases. It doesn't make sense to spend money fixing up someone else's house so that it feels like yours. And, most landlords will have a say in what you can and can't do -- even down to paint colors.

THE CLOSING: But, if you own it, you can redecorate to your taste and possibly add value by doing so.

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Equal Housing Opportunity

Single Story For Sale in Clovis East

Catherine Sawatsky — Wed, 04 Jun 2008 16:18:00 GMT

• 3,544 sq. ft., 4 bath, 4 bdrm single story - MLS® $799,900 - HUGE PRICE REDUCTION!!!

Clovis East, Clovis - WOW! IMAGE CUSTOM HOME ON 2.44 ACRES IN CLOVIS - MINUTES FROM CLOVIS COMMUNITY HOSPITAL!

Ideal for horses or country living. Large great room with tumbled marble fireplace and full wall built-in Cherry Entertainment Center. Formal Living room/large office located near entry. Formal dining room able to accommodate a table for 12 with built-in buffet. Gourmet Kitchen with cherry cabinets,Granite counter with tumbled marble backsplash, top of the line appliances including microwave, double ovens, gas stove, built-in desk, oversize walk-in pantry, huge center island and breakfast bar. Breakfast nook overlooks large covered patio. Master Suite is large enough for a sitting area yet warm & inviting with cozy gas fireplace, large walk-in closet for 2 full wardrobes with rm to spare. Master bath has split His/Her Vanities, large shower with dual showerheads and jetted tub. 2nd & 3rd rooms are spacious with plenty of closet/storage and are joined by a Jack & Jill bath. Isolated 4th bedroom with French doors to the patio is ideal for guests, in-laws or game room. Home features double 2 car garage,18x18 tile floors, oversized baseboards, crown moldings, designer paint throughout and plenty of closets/storage.

Catherine Sawatsky Fresno Real Estate

Housing and Economy Headed for Sustainable Recovery; First-Time Homebuyers Lead the Way

The Real Estate Report

Single Story For Sale in Clovis East

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2 Story For Sale in Fig Garden

Single Story For Sale in Selma

Price Reduced on 2084 W Birch Ave in Northwest Fresno

Open House in Clovis East on Sunday

Open House in Northwest Fresno on Sunday

WOW! Check out this home on a huge lot....

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Over The Fence - February 2008 Newsletter

Help is on the way for California BUYERS...

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BRAND NEW HOME.... $103 Sq. Ft. (REO)

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Single Story For Sale in Clovis East

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Open House in Northeast Fresno on Sunday

Single Story For Sale in Clovis

Welcome to my world.

Lot / Land For Sale in Madera