The New York Times: It May Be Time to Think About Buying a House
Do you own a crystal ball? Can you predict when the right time comes along to purchase your next home? If you answered yes to either one of these questions, then please submit your resume.
Most buyers tend to wait to enter the market until the housing market improves. What does this mean? It means that most buyers may wait too long by trying to time the market. By doing so, they could miss the lowest prices available.
To many veteran real estate professionals the feeling of pessimism is generally associated with the reality of hitting rock bottom. How do you feel about the stock market and the current economy?
Rob Lieber, writer for the New York Times, suggests that “we do not know when this golden age will begin, because we will be able to identify the bottom to the housing market only with benefit of hindsight.”
When the market begins to show signs of improvement, will you look in the rearview mirror and realize that you missed a golden opportunity?
Many analysts feel that rock bottom is now. Housing prices have fallen which means homeownership is becoming much more affordable. Not only are housing prices down, but mortgage interest rates are also down – hovering around 5.5% for a 30-year fixed-rate mortgage. In addition, it was recently announced that the federal government might step in and will try to lower them further. How does 4.5% sound? I have heard this number being thrown around for real estate purchases.
Who are we counting on to turn the housing market around? First-time home buyers. Why? They have a single characteristic that all sellers find appealing: They don’t have a home to sell. The benefit? There is no domino effect with first-time home buyers which mean the parties are able to close as quickly as possible.
Lieber provides advice to first-time home buyers. First, start now to improve your credit score. Second, begin to save for your down payment. The more you pay down at closing will enable you to borrow at the most competitive interest rates. Third, begin to pay off any outstanding credit card balances. In addition, cancel any underused credit cards. Lieber says you should eliminate credit card debt months before your apply for a loan. Fourth, check the three major credit reports and dispute errors. However, I suggest that you don’t check these reports too often as the frequency will have an adverse affect on your credit score.
The easiest way to budget for your purchase is to sit down with a loan officer and discuss your available financial options. If you need any assistance in finding a loan officer to start the conversation, please don’t hesitate to contact me. I would be more than happy to point you in the right direction.
When is the right time to buy? Now! Traditionally, as the mercury drops, so does housing prices. This time of year, many buyers take a break from the real estate market. This means that there is more inventory and greater options available to those buyers who remain in the market. Advantage, buyers. With greater inventory levels and options, buyers have best bargaining power.
The Internal Revenue Service is also providing relief to first-time home buyers. If you are a first-time home buyer and you close on your new home before June 30, 2009, you will be entitled to a $7,500 federal tax “credit” (subject to income phase outs). Unlike other credits, this one will require you to pay it back. It works the same way as an interest-free loan.
To summarize, you can never time a bottoming out in the market place. If you think of your house purchase as a long-term investment, then you will find success with your investment over the long-term. With the stock market behaving so volatile in recent months, many home owners believe that their home is the best and safest investment they have in their portfolio.
What are your thoughts regarding the current real estate market? What concerns do you have with buying or selling real estate in this current market? Please post your questions or contact me at (414) 412-7980 or e-mail at dray@shorewest.com.
Lieber tackles the current issues in the current housing market and provides advice to today’s real estate purchasers.
Click here to find out why now is a very good time to buy and what you can do to ensure locking-in on the most competitive interest rate possible>>>-----
Labels: Economy, Finance, Real Estate
National Association of REALTORS®: Curb Appeal Matters Now More Than Ever, Say Realtors®
Home sellers, do you know what features are important to today’s buyers? Should you invest in your home by updating your kitchen? How about your bathroom? How about building a rec room in your basement?
These are all very good answers.
However, this year’s Remodeling Cost vs. Value Report suggests that curb appeal is the most important feature of a home. According to Stephanie Singer, writer for the National Association of REALTORS® (NAR) magazine, “for the second year in a row, [the findings in this year’s report, produced by Hanley Wood LLC, suggests] that exterior remodeling projects return the most money as a percentage of cost.”
At a national level, wood deck additions and siding replacement projects returned more than 80 percent of project costs upon resale. Sorry watchers of HGTV’s “My House Is Worth What?” In the vast majority of cases involving remodeling projects, it is unlikely that a home seller will make dollar for dollar on any improvements made to the property. Therefore, why make improvements? Most improvements are made for your own personal enjoyment. However, the law of averages will suggest that you will make just over 80 cents per dollar on deck additions and siding replacement.
Why is curb appeal playing such a major role the past two years? Home buyers in this market have many options. Inventory levels are very high throughout the country. To ensure the best result, sellers must make a positive first impression. This first impression is called curb appeal.
Window replacement and kitchen remodel projects also provide a decent return. Home owners recovered the least amount of their investment for home office remodeling projects and sunroom additions.
According to Singer, the annual Remodeling Cost vs. Value Report “compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country.”
The Midwest has always been protected by huge swings in housing prices. Therefore, it shouldn’t be too surprising that the East North Central region (which includes Wisconsin) returned one of the lowest returns in the country.
Hanley Wood and the NAR understand that improvements are only one factor that affects the value of a particular home. Other factors affecting resale include: home’s overall condition, availability (e.g. inventory levels), condition of surrounding properties, location, and regional economic climate, just to name a few.
If you would like to know your home’s value during the current housing market based on all of these criteria, please call me at 414.412.7980 or e-mail at dray@shorewest.com. I would be more than happy to provide you with a comparative market analysis. Consultation is free.
Singer explains the purpose of this annual report and what it means to home owners who are looking to make improvements to their home.
Click here for more information regarding home improvement projects>>>-----
Labels: Real Estate
The National Association of REALTORS®: NAR Says Fed's Buying of Fannie, Freddie Debt Will Drive Down Interest Rates and Help to Stabilize Housing
Great news home buyers and home sellers! The Treasury Department has recently announced its plans to purchase up to $500 billion worth of mortgage-backed securities (MBS) from Fannie Mae, Freddie Mac, and Ginnie Mae.
Why is this great news for you and the economy? The Federal Reserve will soon unlock the money tied to MBS which will free up money for future home buyers. With this action, analysts predict that interest rates for long-term loans will fall even more from the already-low national average of 5.5%.
The National Association of REALTORS® (NAR) is confident that falling interest rates will jump start the housing market which will also jump start the overall economy. How? With falling interest rates, buyers are able to increase their purchasing power to buy their next home. Home buyers will be able to take advantage of these low interest rates which will increase home sales. The increase in the number of homes sold will decrease our current inventory levels. The decrease in the inventory levels will help stabilize prices. This domino effect will provide price stabilization for housing which will create a healthy housing and economic recovery.
Lucien Salvant and Mary Trupo of the NAR provide more details regarding the impact of the Treasury Department’s decision.
Click here to read why this move is critical for not only the health of the housing market, but the overall economy as well>>>-----
Labels: Finance
The Business Journal of Milwaukee: More condos being marketed as apartments
A few years ago, real estate investors were banking on an overnight success phenomenon – purchasing an apartment building that is already built-out for residential units and selling the apartment units as condominiums. In many cases, downtown Milwaukee saw inventory levels spike within the matter of hours. Examples of these developments include Cambridge Terrace, Courtyard Square, Gallun Tannery, Landmark on the Lake, Lake Bluff at East Pointe, London House, and The Blatz.
Now that we have a glut of condominiums in the downtown market, the developer of the newly-constructed River Renaissance, located on the banks of the Milwaukee River in the Historic Third Ward, is considering opting to rent nearly half of its 82-unit building. Rivren Group LLC of Milwaukee, the developer of River Renaissance, claims they have 44 condominiums currently under contract. Pete Millard, writer for The Business Journal of Milwaukee, suggests that River Renaissance is “one of the largest and first condo projects in Milwaukee to offer both apartments and condos.”
What this means to you?To me, this tells me that the market is finally changing. Unlike most investments, real estate doesn't respond to changing economic times as quickly as other investments. Rivren's decision tells me that our supply of inventory is now beginning to respond to demand.
As I mentioned earlier, we witnessed a significant loss of rental options a few years ago as developers were purchasing apartment complexes and converting them into condominiums. Let's face it, not everyone wants to own real estate. I think it was very damaging to downtown's economy when many apartments were being converted into condominiums.
It was just a matter of time for the demand for downtown condominiums impacting the decision-makers of downtown condominium developments.
For real estate sellers and prospective buyers of downtown condominiums, Rivren's decision will have a significant positive impact on downtown housing. With the further tightening of supply in downtown condominiums, we will soon be seeing prices leveling at their lowest point. We must get to this point before we will see housing prices increase.
Other Downtown DevelopmentsMillard highlights the progress and sales of Park Lafayette, Lake Bluff at East Pointe, Residences on Water, and New Land Enterprises’ latest luxury tower to be built behind the Goll mansion on North Prospect Avenue.
For more information regarding River Renaissance, Park Lafayette, Lake Bluff at East Pointe, and Residences on Water, please do not hesitate to contact me at 414.412.7980 or e-mail at dray@shorewest.com.
Click here to read about Rivren Group’s decision to include apartment units with the River Renaissance condominium association>>>-----
Labels: Real Estate
Downtown Milwaukee Events: Through January 31, 2009
Comedy:Jim Gaffigan – December 30-31 - The Pabst Theater
Frank Caliendo – January 17 – The Riverside
Colin Mochrie & Brad Sherwood – January 23-24 – The Pabst Theater
Dance:Ballet Nutcracker – December 18-28 - Marcus Center for the Performing Arts
Film:Santa vs. The Snowman – Through January 4- Humphrey/IMAX Dome Theater
Mysteries of the Great Lakes – Through March 19, 2009 – Humphrey/IMAX Dome Theater
Ghosts of the Abyss – Through May 24, 2009 - Humphrey/IMAX Dome Theater
Holiday Events:Milwaukee Holiday Lights Festival – Through January 4 – Downtown Milwaukee
Harlem Globetrotters – December 31 – Bradley Center
Museum Exhibits:American Steel – Through January 4, 2009 – Milwaukee School of Engineering
Thinking Outside the Treasure Chest – Through April 4, 2009 – Milwaukee Public Museum
Titanic: The Artifact Exhibition – Through May 25, 2009 – Milwaukee Public Museum
Nunnemacher Arms Collection – Through August 15, 2009 – Milwaukee Public Museum
Numismatics! – Through August 15, 2009 – Milwaukee Public Museum
Star Light Star Bright – Through December 31, 2009 – Milwaukee Public Museum
Music:The Producers – Through January 4 - Broadway Theatre Center
The Sleighriders – December 15 – Shank Hall
Celtic Thunder – December 16 – Milwaukee Theatre
Sister Hazel – December 17 – The Rave
Mike Bustin - December 18 – Vino 100
Ann Davis – December 19 – Vino 100
Atlantic Wave – December 19 – Paddy’s Pub
MSO: Cathedral Classics – December 19 - Cathedral of St. John the Evangelist
Outhouse Poet – December 19 – Live
Paul Cebar Tomorrow Sound – December 19 – Shank Hall
Primer 55 - December 19 – The Rave
Reilly – December 19 – Paddy’s Pub
5 Card Studs Holiday Extravaganza – December 20 – Shank Hall
Cheap Shots – December 20 – Live
Acoustic Christmas – December 21 – Shank Hall
Christmas Dreams: Joe Puerta & Maji – December 21 – Turner Hall Ballroom
Hinder – December 21 – The Rave
Mannheim Steamroller – December 22-23 – Milwaukee Theatre
Phil Norby - December 26 – Live
Pat McCurdy – December 27 – Shank Hall
The White Tie Affair – December 27 – The Rave
Twenty Four Roses – December 27 – Live
Rusted Root – December 29 – The Rave
A New Year's Eve with Cake – December 31 – Riverside Theater
Crystal Method – December 31 – The Rave
MSO: Breaking Through to Joy – Dec. 31 – Jan. 3 – Marcus Center for the Performing Arts
Pat McCurdy – January 2 – Shank Hall
Copper Box – January 3 – Shank Hall
Framing Hanley – January 8 – The Rave
Philip Gatewood – January 9 – Shank Hall
Revolush, Chief – January 9 – Shank Hall
The Lobster Boys – January 9 - Vitucci's
.357 String Band – January 10 – Turner Hall Ballroom
The Blacktop Kings, Robert Allen Jr. – January 10 – Shank Hall
Unearth – January 10 – The Rave
Reel Big Fish – January 11 – The Rave
Metallica – January 12 – Bradley Center
MSO: Classical Connections – January 15 - Marcus Center for the Performing Arts
Rotting Christ – January 15 – The Rave
Disturbed – January 16 – The Rave
Douglas Acres – January 16 – Shank Hall
Pezzettino – January 16 – BBC
MSO: Darkness and Light – January 16-17 - Marcus Center for the Performing Arts
The Wailers – January 17 – The Rave
The Wigs – January 17 – Shank Hall
Philomusica Quartet: Vienna Bonbons – January 18 - Wisconsin Conservatory of Music
Fever Marlene – January 23 – Shank Hall
MSO: Romantic Journeys – January 23-24 - Marcus Center for the Performing Arts
Cradle of Filth – January 24 – The Rave
Hounds Tooth – January 24 – Shank Hall
We Six: All Our Own – January 29 - Wisconsin Conservatory of Music
Big Head Todd and The Monsters – January 30 – The Rave
Greg Koch – January 30 – Shank Hall
Scott Weiland – January 30 – The Pabst Theater
Animation (A Tribute to Rush) – January 31 – Shank Hall
MSO: My Favorite Things – January 30-31 - Marcus Center for the Performing Arts
Other Downtown Area Events:Monster Jam – January 16-17, 2009 – Bradley Center
Night of the Titanic – Through May 25, 2009 – Milwaukee Public Museum
Sports: Marquette University – Men’s Basketball @ Bradley CenterWestern Carolina – December 19
Presbyterian – December 28
Villanova – January 1
Cincinnati – January 4
West Virginia – January 10
DePaul – January 24
Georgetown – January 31
Sports: Marquette University – Women’s Basketball @ Marquette UniversityOregon – December 17
Wisconsin-Green Bay – December 20
Wisconsin-Milwaukee – December 31
Sports: Milwaukee Admirals @ Bradley CenterHouston – December 17
Iowa – December 21
Quad City – December 26
San Antonio – December 29
Iowa – December 30
Peoria – January 3
Toronto – January 8
Quad City – January 18
Quad City – January 20
San Antonio – January 23
Chicago – January 30
Sports: Milwaukee Bucks @ Bradley CenterL.A. Clippers – December 20
Utah Jazz – December 23
Detroit Pistons – December 27
Charlotte Bobcats – January 2
Toronto Raptors – January 5
Philadelphia 76ers – January 7
New Jersey Nets – January 9
Miami Heat – January 14
Dallas Mavericks – January 21
Sacramento Kings – January 24
Minnesota Timberwolves – January 26
Atlanta Hawks – January 31
Sports: Milwaukee Wave @ U.S. Cellular ArenaChicago Storm – December 31
Detroit Ignition – January 10
NJ Ironmen – January 16
NJ Ironmen – January 24
Sports: University of Wisconsin-Milwaukee – Men’s Basketball @ U.S. Cellular ArenaBradley – December 20
Valparaiso – January 5
Green Bay – January 9
SIU-Edwardsville – January 12
Youngstown State – January 15
Cleveland State – January 17
Loyola – January 28
UIC – January 31
Sports: University of Wisconsin-Milwaukee – Women’s Basketball @ Klotsche CenterCentral Michigan – December 20
Evansville – December 22
Green Bay – January 4
Wright State – January 15
Detroit – January 17
Valparaiso – January 29
Butler – January 31
Theater:Cudahy Caroler Christmas – Through January 4 – Marcus Center for the Performing Arts
Happy Days - A New Musical – January 6-11 - Marcus Center for the Performing Arts
I Do! I Do! – January 30 - Broadway Theatre Center
Visual Arts:Visions in Layers – Through December 30 – Cedar Gallery
Act / React: Interactive Installation Art – Through January 11 – Milwaukee Art Museum
Prints of the Flora and Fauna of America – Dec. 18 – Mar. 22 – Milwaukee Art Museum
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Labels: Events
