Are Appraisals Finally Playing Catch-Up?

Are Appraisals Finally Playing Catch-Up? Image courtesy of tungphoto / FreeDigitalPhotos.net

Many real estate professionals have been blaming low appraisals for derailing transactions over the last few years. But now home prices are heating up across the country. Are appraisals still coming in lower than the agreed-upon sales price?

Even with prices rising and the number of foreclosures falling, some appraisers say assigning a value to a property isn’t getting any easier. One of the big reasons, they say, is because of low inventories in many markets. “An undersupply of available homes has prompted bidding wars above list price, a price that isn’t necessarily justified by an appraisal,” The Chicago Tribune reports.

“That’s been happening a lot this winter and spring — the appraisal isn’t coming in,” Alvin “Chip” Wagner, of A.L. Wagner Appraisal Group Inc. told The Chicago Tribune. “It’s an appreciating market, and the closed data that appraisers use is behind what the homes are actually selling for right now. We’re just now on the cusp of good data.”

Appraisers say they are using sound data to base their valuations, including motivations of buyers and sellers.

Consumers “don’t always value us in a friendly light because we are the person coming in and saying yea or nay, and we’ve been the bearer of bad news for too many years,” says Sharon Bagby, an appraiser at Crystal Lake Appraisal Service Inc. “Home owners don’t really know where the values are. They’re hearing some really rosy values in some markets, but we have to work with the value that’s there.”

Source: “As housing warms up, appraisers feel the heat,” The Chicago Tribune (June 21, 2013)

Don’t Let Your Clients Get Scammed by Movers.

Don’t Let Your Clients Get Scammed by Movers. Image courtesy of sdmania / FreeDigitalPhotos.net

Complaints are rising over a scam that involves moving companies providing low-ball estimates to customers and then later inflating fees once the truck is loaded, and holding customers’ possessions hostage until they pay more. The scammers threaten to auction off the person’s belongings unless they come up with more money to pay them.

How can your clients avoid being duped by moving scams? Consumer Reports suggests collecting estimates from at least three companies and being cautious about using companies that are unable to provide an address or licensing information. Interstate movers are licensed by the Federal Motor Carrier Safety Administration. You can search for registered movers and complaint histories at their Web site.

Consumer Reports also recommends using a mover who has a marked truck and who puts everything in writing. Avoid moving companies that require large upfront deposits, Consumer Reports warns. Check the Better Business Bureau for any complaints against companies.

Recently, New Jersey officials uncovered 25 unlicensed moving companies with listings on such sites as Craigslist and Angie’s List that are accused of duping customers with moving scams.

Those who feel they’ve been scammed should contact their state attorney general, consumer protection agency, or licensing agency. Consumers should contact the police if they feel a mover is illegally holding their possessions.

Source: “Low-Ball Movers Put The Moves on Unsuspecting Consumers,” RealtyTimes (June 20, 2013)

10 Best Cities for the Young, Broke and Single.

10 Best Cities for the Young, Broke and Single. Image courtesy of imagerymajestic / FreeDigitalPhotos.net

Yes, there are perfect cities for the “young, broke and single” too, according to a new survey by advice web site MoneyUnder30. The site conducted a national survey to reveal the top cities that offer young professionals the best employment opportunities, lowest cost of living, and  highest number of singles between the ages of 18 and 44.

Here are the cities that emerged in the top 10 and what helped put them on the list:

1. Austin, Texas: Rents are low comparable to other big cities, there are estimates of some 530 bars and restaurants, and unemployment is low at 5.1 percent.
2. Salt Lake City, Utah: The city boasts “mild winters and toasty summers” and is “one of the top places for gays to reside,” according to MoneyUnder 30.
3. Durham, N.C.: It’s known as the “City of Medicine” and has also appeared on Forbes list of America’s Best Cities for Young Professionals.
4. Columbus, Ohio: It’s home to Ohio State University, the nation’s largest college campus.
5. Baton Rouge, La.: Louisiana State University is in this city, which features mild weather (the average high for January is 61 degrees), and has appeared in other surveys as a top-ranked place for young adults.
6. Omaha, Neb.: It features “a very cool music scene,” a revitalized downtown, and diversified employment base.
7. New Orleans-Metairie-Kenner, La.: The area has earned the nickname “Hollywood South;” it’s home to Tulane University, and boasts a thriving oil industry and world famous enertainment and restaurants.
8. Des Moines-West Des Moines, Iowa: It has a low 5.8 percent unemployment rate and Forbes has ranked it as a “Best Place for Business” and among “America’s Best Cities for Young Professionals.”
9. Seattle-Tacoma-Bellevue, Wash.: It’s “got a healthy overabundance of coffee shops”, is home to businesses like Microsoft, and has become the “focal point of an entrepreneurial/high-tech triangle that includes Portland, Ore., and Bend, Ore., to the south.”
10. Oklahoma City, Okla.: It averages a yearly temperature of 72 degrees, has a growing population, and strong employment bases in the energy industry and federal government.

Source: MoneyUnder30

Home Ownership Makes Happier, Healthier Families, Survey Shows.

Home Ownership Makes Happier, Healthier Families, Survey Shows. Image courtesy of photostock / FreeDigitalPhotos.net

Owning a home can make families healthier, happier, and more financially secure, according to new research by Canada Mortgage and Housing Corp. on the benefits of home ownership. Researchers worked with Habitat for Humanity families to evaluate how their lives changed after moving into their homes.

Eighty-nine percent of the Canadian families surveyed said their lives improved since they moved into their homes. Eighty-six percent said they’re happier since owning a home.

The survey also found home ownership led to an improvement in children’s school performance. The families reported that the children had increased confidence, improved behavior, higher grades, and enjoyed school more after becoming home owners.

What’s more, more than 75 percent of families surveyed say their health had improved since becoming home owners. They reported fewer illnesses caused by colds, flu, allergies, and stress, according to the study.

Canada’s home ownership rate — at about 70 percent — is one of the highest in the world.

The study’s release coincided with the National Association of REALTORS(R) recent release of a new publication, “Social Benefits of Homeownership and Stable Housing.”

“There is evidence from numerous studies that attest to the benefits [of home ownership] accruing to many segments of society,” according to Canadian researchers. “Home ownership boosts the educational performance of children, induces higher participation in civic and volunteering activity, improves health care outcomes, lowers crime rates and lessens welfare dependency.”

Source: “Owning a Home Makes Families Happier, Healthier,” Realty Times (June 18, 2013)

Loan Demand Falls as Rates Continue to Edge Up.

Loan Demand Falls as Rates Continue to Edge Up. Image courtesy of jannoon028 / FreeDigitalPhotos.net

Mortgage rates rose to their highest level in more than a year, which decreased demand for home loans last week, the Mortgage Bankers Association reports.

Mortgage applications for home purchases, considered a leading indicator of future home sales, dropped 3 percent last week.

Meanwhile, mortgage applications for refinancing dropped 3.1 percent.

The MBA reports that 30-year mortgage rates rose 2 basis points last week to average 4.17 percent, the highest level since March 2012. This marked the sixth consecutive week for rate increases.

The MBA’s index covers 75 percent of the nation’s retail residential mortgage applications.

Source: “Mortgage applications tumble as rates rise further: MBA,” Reuters (June 19, 2013)

Housing Markets turn around.

Housing Markets turn around. Image courtesy of ddpavumba / FreeDigitalPhotos.net

Kiplinger Personal Finance recently singled out 12 metro areas’ housing markets as faring the best in 2012. Kiplinger attributed strengthening economies, below-average unemployment rates, and increasing buyer confidence as turning these metros into seller’s markets.

The 12 metros are:

• Phoenix
• Provo, Utah
• Cape Coral-Ft. Myers, Fla.
• Minneapolis
• Akron, Ohio
• Youngstown, Ohio
• Seattle, Wash.
• Salt Lake City, Utah
• Boise, Idaho
• San Jose, Calif.
• Washington, D.C.
• Tucson, Ariz.

“I was really surprised to see some of the cities that ended up on the list,” says Pat Esswein, associate editor for Kiplinger’s Personal Finance Magazine. “Provo, Utah, and Salt Lake City surprised me, but these are cities that had very little boom or bust. They plugged along, their economies are growing and their populations are rising. They also have relatively low rates of unemployment.”

Source: “Rising Home Prices: Coming Soon to Your Town?” RISMedia (June 17, 2013)

Big Milestone in Home builder Confidence.

Big Milestone in Home builder Confidence. Image courtesy of renjith krishnan / FreeDigitalPhotos.net

Home builder confidence is at its highest level in seven years, reaching a big milestone in June, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The index, which measures home builder sentiment over the new-home market, rose eight points in June to 52 — any reading above 50 indicates that more builders view sales conditions as good rather than poor.

“This is the first time the HMI has been above 50 since April 2006, and surpassing this important benchmark reflects the fact that builders are seeing better market conditions as demand for new homes increases,” says NAHB Chairman Rick Judson. “With the low inventory of existing homes, an increasing number of buyers are gravitating toward new homes.”

The index measures builders’ perceptions of single-family home sales, buyer traffic, and sales expectations for the next six months. The index measuring just builders’ expectations for future sales surged nine points in June to 61, reaching its highest level since March 2006.

“Builders are experiencing some relief in the headwinds that are holding back a more robust recovery,” says NAHB Chief Economist David Crowe.

NAHB is predicting a 29 percent increase in housing starts this year, which would put housing starts at the 1 million mark for the first time since 2007.

Source: National Association of Home Builders