HARRY'S COLUMN

 

10 QUESTIONS ON THE VOLATILE housing market

 

Between January 2000 and April 2006, the national average home price nearly doubled. Since then, the average has fallen about 30%. (In Las Vegas, the average has fallen 53% and in Miami, about 39%, where almost ¼ of mortgage holders are delinquent in their payments or are in foreclosure). As the Wall Street Journal points out (Nov. 17, 2009), the value of your home might be determined more by whether your neighbors keep their jobs than by whether your house has ample closet space. The Journal goes on to list ten points you should consider if you are thinking of selling your home:

 

1. Is the housing market getting better?

High-end houses are a glut on the market. Fewer jobs and more foreclosures could keep all home prices low for a while.

 

2. When will housing bottom out?

It depends upon where you live. In the Virginia suburbs near Washington D.C., prices are already going up. In Florida, unsold condos will probably take years to sell.

 

3. What signals should I look for to determine whether my local market is improving?

One way is to measure the inventory of homes for sale. Over six months of inventory usually means prices are still going down. Give us a call and we will be happy to discuss inventories, prices in various neighborhoods and what your best course of action might be.

 

4. How can I figure out the value of my home?

 Call us.

 

5. Does it matter whether I am "under water"?

About 20% of owners of single-family homes with mortgages owe more than their homes will sell for on today's market. Your options: Stay put until the market comes back (You won't be able to get refinancing).Sell at a loss ..Walk away and take the consequences. Again, call us.

 

6. If I lose my home to foreclosure, how long will it take to repair my credit record?

It will be on your record for seven years, but you might be able to get another mortgage in three to five years.

 

7. If I'm renting, is now a good time to buy a house?

Rents are low now and should stay that way for a while, however, this is a great time to buy your home. Low mortgage-interest rates, low house prices and government tax credits are all good arguments to make your move. Give us a call and we can review your options.

 

8. Can I get a tax credit if I buy now?

You can, if you sign a contract by April 30, 2010 and close by June 30 and meet the requirements of the new tax credit. Give us a call and we can verify if you are eligible and we will walk you through the process.

 

9. Can I get a mortgage on attractive terms?

Maybe. Give us a call, answer a few questions and we will be able to give you a good idea of what you qualify for.

 

10. Should I invest in foreclosed homes?

Probably not. To quote the Journal, "This is a pursuit best left to people with a lot of time, nerve, cash and knowledge of the local market."

 

We are fortunate to live in the Pikes Peak area, where our unemployment rate is around 2% better then the national average. As a result, our housing market is much better than it is in most other areas of the country.

 

HOW ARE WE DOING? LOOK AT SALES TAX REVENUES

 

According to the Gazette, Colorado Springs sales-tax collections in October were the highest since January and saw the smallest year-to-year percentage decline since May of 2008. It's encouraging that September sales tax revenue was down only 0.82% from 2008. To give some examples of how consumer spending is going, here are some significant sales tax figures from October, 2009:

 

Some increases:

 

Clothing                           +30.5%

Groceries                         +13.0%

Department stores            +  8.0%

 

Some decreases             

 

Furniture, appliances        -27.8%

Building materials             -15.4%

 

Fred Crowley, Chief Economist for the Southern Colorado Economic Forum, said the numbers are exactly what would be expected as the region begins to emerge from the recession and consumers stop postponing purchases and start breaking out their wallets. "These are the things that come out of it first - the essentials. At some point, everything wears out. All of the economic indicators say that we're at the bottom and we're on the slow path toward recovery"

 

And, please remember, I would be honored to serve as your Broker for all of your residential real estate needs. I want to help you, my reader, make the most prudent and accurate Real Estate business decision.

 

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move. Please allow me to implement my negotiating skills on your behalf.

 

Just click on the icon at the top of this email to listen to my latest podcast. ..And, if you would like to learn more about our Job Loss Protection Program, or, about our CyberHomes Complete Market Analysis of a property, please contact us.