Foreclosures Become a Tougher Find

Foreclosures Become a Tougher Find

Thirty-six percent of U.S. housing markets – or 78 out of 216 metro areas studied — are now below their pre-recession levels in foreclosures, according to the latest Foreclosure Market Report from RealtyTrac.

Foreclosure filings – including default notices, scheduled auctions, and bank repossessions – were down 8 percent from last year and make up 289,116 U.S. properties.

That marks a nine-year low and the lowest quarterly total since the fourth quarter of 2006, RealtyTrac reports.

“Despite a seasonal bump higher in March, foreclosure activity in most markets continues to trend lower and back toward more healthy, stable levels,” says Daren Blomquist, senior vice president at RealtyTrac. “More than one-third of the 216 local markets we analyzed were below their pre-recession foreclosure activity averages in the first quarter, and we would expect a growing number of markets to move below that milestone the rest of this year — while the number of markets with a lingering low-grade fever of foreclosure activity continues to shrink.”

Some of the metros seeing large dips in foreclosure filings below pre-recession levels in the first quarter of 2016 included Los Angeles (27 percent below pre-recession average); Dallas (down 65 percent); Houston (down 64 percent); Miami (down 19 percent); and Atlanta (down 57 percent).

However, in some markets, foreclosures remain elevated, including New York (80 percent above the pre-recession average); Chicago (up 17 percent); Philadelphia (up 97 percent); Washington, D.C. metro area (up 134 percent); and Boston (up 46 percent).

Source: RealtyTrac

Ultra-Luxury Sellers Are Slashing List Prices

Ultra-Luxury Sellers Are Slashing List Prices

More luxury home sellers are reportedly cutting their asking prices, hoping for a quicker sale, The Wall Street Journal reports.

In January, 4.1 percent of homes for sale at $5 million or above had their asking prices reduced – a 50 percent increase from a year ago, according to data from realtor.com®. The median price of the reduction was $501,000 or 7.2 percent of the list price.

For comparison, 12.2 percent of all homes for sale saw a reduction in their list prices, which is up just 4 percent over the year.

As sales have slowed among real estate’s priciest homes, home sellers are getting more realistic, The Wall Street Journal reports. In 2014, record sale prices grabbed national headlines. That prompted more luxury sellers to want to test the market with their hefty asking prices too. But in the second half of 2015, sales have fallen.

More luxury home owners are receding from “aspirational pricing,” which will help more deals move through, says Jonathan Miller of the appraisal firm Miller Samuel in New York. “The high-end of the market peaked well before the balance of the market.”

Source: “More Luxury-Home Sellers Drop Their Asking Prices,” The Wall Street Journal (April 12, 2016)

Ways Sellers Can Show Off Outdoor Space

Ways Sellers Can Show Off Outdoor Space

Take a close look at your listing from the eye of a home buyer. Are the bushes overgrown around the front windows? Has the mulch all washed away? Is the paint on the shutters fading?

These are the questions Jon Coile, chairman of the multiple listing service MRIS in Rockville, Md., asks in a recent column at The Washington Post that aims to help sellers examine the exterior of their homes. Here are some simple ways to solve common curb appeal issues:

Stick to similar plant groupings. Aim for a continuous flow with a landscape. “It can often make small spaces feel much larger,” Coile says. To do this, select only few different types of plants for the landscaping, instead of selecting a wide variety. The majority of the landscaping should consist of similar plants so the landscape doesn’t look look broken up into too many different sections, Coile notes. Then, feel free to use a small number of accent pieces to add color and visual interest.

Use visual markers. Visual markers help draw buyers’ eyes from one end of the yard to another. “The easiest way to do this is to lay a path that subtly transitions in the same places the yard does, at slight changes in elevation or where shaded areas transition to open sun,” Colie notes. “If that isn’t possible, then a few strategically placed taller plants, subtle decorations, or lighting fixtures can create the same impression.”

Show off the entertainment value. Show grassy areas where kids can play safely as well as places where adults can socialize, Coile writes. Consider these features for an added touch to show the possibilities of a space: Fire pits and outdoor gas flames, outdoor speakers, or a wet bar near a grill.

Source: “How to Enhance Your Home’s Curb Appeal,” The Washington Post (April 11, 2016)

Gen X Home Ownership Likely to Stay Low

Gen X Home Ownership Likely to Stay Low

Generation X suffered the most compared to any other age segment during the housing crisis, and they’re still in the process of recovering. In fact, home ownership rates will likely stay low for Generation X – those born between 1965 and 1984 – for years to come, according to a study by the Harvard Joint Center for Housing Studies.

Generation X has gone from being the most successful in terms of home ownership rates in 2004 to the least by 2015. In 2004, Gen Xers aged 25 to 34 at the time had a home ownership rate of 49.5 percent, the highest compared to any other age group, according to U.S. Census data. But last year, the home ownership rate for the now 35-to-44-year old age group fell to a more than three-decade low of 58.5 percent.

Baby boomers, who entered the housing market prior to the housing crisis in the early 2000s, have fared better in the aftermath than Gen Xers.

Generation X “came into the market at precisely the wrong time,” says Rick Sharga, executive vice president at Ten-X.com, an online real-estate brokerage. “We’ve effectively wiped out a group of home owners who historically would have been on their second or third properties by now.”

As such, housing analysts have mostly centered their talks on the millennials, those born between 1985 to 2004. Generation X consists of around 83 million people compared to the larger 87 million that make up the millennial cohort. By 2025, millennials are expected to grow to 93 million too, due to immigration. Generation X is expected to stay the same number. Housing analysts are betting on the millennials to have the largest impact on the housing market.

However, they may need Gen Xers to get moving. As Generation X continues to recover from the housing crisis, fewer middle-aged buyers are trading up with their homes. That is contributing to the severely limited inventory of homes available, which is plaguing many housing markets.

Source: “Housing Bust Lingers for Generation X,” The Wall Street Journal (April 9, 2016)

First-Time Buyers Use Guest House for Savings

First-Time Buyers Use Guest House for Savings

Some first-time buyers are finding ways to cover the costs of home ownership by purchasing a multi-unit home that can accommodate a mother-in-law apartment or another rental unit. The added money can then help them cover their mortgage.

“Renters like the privacy and homey feel of an accessory dwelling over renting a room in an apartment complex,” notes a recent article at RISMedia “Thanks to this demand, savvy buyers know they can rely on a steady stream of income from a rental unit. Many home owners use this money source as a way to save for retirement or pay down their mortgage.”

What’s more, at resale, buyers stand to net more for their multi-unit home. According to an article in the New York Times, 15 percent of buyers say they are willing to pay extra for a home with an accessory dwelling. These buyers say they want the extra space for a tenant, relative (multi-generational households are growing), or for a detached home office.

Taxes can also work to the advantage of multi-unit home owners. For example, owners may be able to deduct expenses from their taxes like repairs, maintenance, insurance, supplies, and travel.

Still, buyers to these properties likely will need to expect to pay more. Multi-unit homes tend to sell at a premium. Some fully permitted units fetch up to 60 percent more than single dwelling homes, according to some surveys. Also, buyers need to carefully consider whether they truly are ready to step into a landlord-type role and the responsibilities that can hold.

Source: “First-Time Home buyers: How to Save Money with an In-Law Apartment, Duplex, or Guest House,” RISMedia (April 7, 2016)

from  Robert F. Connor & Rachel Connor (04/11/2016)

“Anthony was a pleasure to work with. Always professional, very knowledgeable, and very detailed. He always got back to us quickly and had great availability. He made buying our first home very easy, really guided us every step of the way, and we would recommend using him.“