The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9. The data reflects contracts but not closings.

The index is now at the highest level since April 2010 when it reached 111.3.

Lawrence Yun, NAR chief economist, said 2012 is expected to be a year of recovery for housing. “First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good,” he said.

“The housing market has clearly turned the corner. Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses,” Yun said.

The PHSI in the Northeast slipped 0.8 percent to 78.2 in March but is 21.1 percent above March 2011. In the Midwest the index declined 0.9 percent to 93.3 but is 16.9 percent higher than a year ago. Pending home sales in the South rose 5.9 percent to an index of 114.1 in March and are 10.6 percent above March 2011. In the West the index increased 8.7 percent in March to 108.0 and is 9.0 percent above a year ago.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

# # #

*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.

NOTE: Existing-home sales for April will be reported May 22, the next Pending Home Sales Index will be released May 30 and first quarter metro area home prices will be released May 9; release times are 10:00 a.m. EDT.

Information about NAR is available at www.realtor.org. News releases are posted in the website’s “News and Commentary” tab. Statistical data in this release, as well as other tables and surveys, are posted in the

Home Prices Rise in Half of U.S. Cities as Markets Stabilize
By Prashant Gopal – May 9, 2012 12:13 PM ET
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Prices for single-family homes climbed in half of U.S. cities in the first quarter as real estate markets stabilized.
The median sales price increased from a year earlier in 74 of 146 metropolitan areas measured, the National Association of Realtors said in a report today. In the fourth quarter, only 29 areas had gains.
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A development in Oswego, Illinois. Photographer: Daniel Acker/Bloomberg

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May 7 (Bloomberg) — Michelle Meyer, a senior economist at Bank of America Merrill Lynch, talks about the U.S. economy and real estate market. She speaks with Tom Keene on Bloomberg Television’s “Surveillance Midday.” (Source: Bloomberg)
The U.S. housing market is showing signs of bottoming as improving employment and record-low mortgage rates boost demand while inventories of available properties tighten. At the end of March, 2.37 million previously owned homes were available for sale, 22 percent fewer than a year earlier, the Realtors said.
“The housing market is still depressed but it had a good quarter,” Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts, said in a telephone interview today. “We’re on the mend but it’s still something that will take two or three years before we’re back to normal.”
The national median existing single-family home price was $158,100 in the first quarter, down 0.4 percent from the first three months of 2011, according to the Realtors group.
The best-performing metro area was Cape Coral, Florida, where prices increased 28.1 percent from a year earlier. Prices rose 19 percent in Grand Rapids, Michigan; 16.9 percent in Palm Bay, Florida; and 16.6 percent in Erie, Pennsylvania.
Biggest Declines
Kingston, New York, had the biggest decline, with the median selling price tumbling 22 percent in the quarter. It was followed by Stamford, Connecticut, with an 18 percent decline; Mobile, Alabama, at 14.7 percent; and Atlanta at 12 percent.
The median selling price is influenced by the mix of homes on the market and probably was boosted by a smaller share of transactions involving distressed properties. Those homes, which sell at discounts, accounted for 32 percent of first-quarter sales, down from 38 percent a year earlier.
Prices are more volatile than normal because they are affected by the prevalence of distressed sales and “sudden upswings” in buyer interest in some areas, said Lawrence Yun, the group’s chief economist.
‘Broad Shortages’
“We have broad shortages of lower-priced homes in much of the country, with very tight supply in Western states for homes through the middle price ranges,” Yun said in the report. “This is good news for many sellers who wish to list now, or for those waiting for prices to improve.”
Sales of previously owned homes rose 5.3 percent in the first quarter from a year earlier, according to the report. Purchases climbed 11.7 percent in the Midwest, 6.6 percent in the Northeast, 4.1 percent in the South, and 1.4 percent in the West.
Fannie Mae, the nation’s biggest mortgage-finance company, today reported a $2.7 billion first-quarter profit after a $6.5 billion loss a year earlier, citing smaller declines in home prices as one of the reasons for improvement. The Washington- based company said that it won’t need Treasury Department aid to balance its books for the first time since it was seized by federal regulators in 2008.

Housing market by the numbers
Are you a first-time home buyer eager to get into the market? Here are steps to take to help you decide whether you’re ready to take the plunge.

1. Check the selling prices of comparable homes in your area. Web sites such as Zillow and Homegain can give you a general idea of what you should expect to pay. You can also do a quick search of actual MLS listings in your area on a number of Web sites, including the site of the National Association of Realtors.

2. See what you can afford. Use Bankrate’s mortgage calculator to see what your payment would be. To get a sense of the maximum you should spend, use MSN Real Estate’s home affordability calculator (below).

3. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. To get a feel for the maximum amount you should spend, including taxes and insurance, use MSN Real Estate’s home affordability calculator. In some areas, what you’ll pay for your taxes and insurance escrow can almost double your mortgage payment. According to the Insurance Information Institute, the average yearly premium can range from $477 in Utah to $1,372 for unlucky Texans.

To get an idea of what you’ll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won’t be obligated to get the insurance, but you’ll have a good idea of what you’ll pay if you buy. For an idea of what you’ll pay in taxes, Zillow publishes property-tax information for homes all over the country. Just remember that exemptions and the intricacies of local tax law (such as Florida’s Save Our Homes value cap) can create differences between what a homeowner is currently paying and what you can expect to pay as a new homeowner.

What’s your home worth?

4. Find out how much you’ll likely pay in closing costs. The upfront cost of settling on your home shouldn’t be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowners association fees. You can see what closing costs average in your state by looking at Bankrate.com’s annual closing cost survey.

5. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor.

6. Talk to reputable real-estate agents in your area about the real-estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon?

Home affordability calculator
Combined annual income $
Other monthly obligations $
Cash for down payment $

7. Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there’s no landlord to turn to, and these costs can drain your bank account.

So consider whether you’re ready for the expense and effort of homeownership before pulling the trigger.

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Expect substantial repairs with any foreclosure purchase.
If you’ve decided that foreclosures are right for you, here are some simple tips to ensure that you get the right deal and don’t risk over-leveraging yourself.

Work out a budget

Map out your current financial assets and liabilities. Factor in recreation, savings, and other planned expenses, plus enough of a cushion to give you some security. The remainder is your available budget. Remember that even after the sale, a foreclosure will cost money before making it. You should expect repairs before the home is livable, followed by a period of vacancy while you shop the home to buyers or renters.

Line up financing

Foreclosures move fast–very fast. In some cases, a few minutes can make the difference between buying the house of your dreams. Now that you know what you can spend, you need to have a bank’s permission to spend it. Cash is king, but pre-approved financing is pretty close, and just the process of applying for financing will provide a good gut check of your budget estimates from step 1.

Bring an expert

The buying process for many foreclosed homes–particularly those being auctioned–leaves little time for individual inspection. Bring a licensed inspector with foreclosure experience. There’s no replacement for a roper inspection, but expert eyes can spot the biggest, most expensive issues up front and help you incorporate that feedback into your bid. Be sure to keep a running tally of repair costs and deduct that amount from your budget. You don’t want to bite off too much.

Stay focused

Once bidding begins, it’s easy to lose your head. The market is full of foreclosures. If you miss this one, you’ll get the next. Or one of the dozens after that. Stick to a sane bid in a range you can afford and eventually, you’ll find the right house at the right price.

This entry was posted in Buyers, Finance, Foreclosures & Short Sales and tagged acutions, foreclosure, homebuying, investment properties, rental property. Bookmark the permalink.

A leaky or blocked gutter can divert damaging water into your home’s walls.
Whether you live in rainy Oregon or snowy Vermont, winters are hard on homes. With spring winds and showers and a long hot summer coming, now is the time to perform a thorough spring maintenance to keep your home safe, beautiful, and at its highest possible value.

As you go through your regular maintenance routine, be sure to include checks of these five trouble areas.

Gutters

Debris-choked gutters are a leading cause of water damage. Even a single clog of leaves can redirect water out of gutters and into your home’s walls. Be sure to follow proper safety precautions when inspecting your gutters, and when you’re in doubt, hire a professional.

Plumbing

Cold winters can be brutal on pipes. Get into the basement and check your plumbing hill washing the dishes, watering the lawn, or taking a shower–any time you’re pushing a large amount of water for an extended time. Look for leaks, drips, or even surface moisture. A small leak is an easy fix that will save on your water bill, but if a leak grows and floods, pipe repair will be the least of your problems. Recheck the pipes an hour later for signs of dampness and slow leaks.

Foundation

Runoff and freezing temperatures can cause cracks in your foundation. Be sure to seal these cracks as you find them, and consult a pro if you have any questions about hidden damage or any impact on your home’s structural integrity. Pay special attention to any areas where water might pool against the foundation, often caused by lost soil.

Air Conditioning / Ventilation

Your AC unit will get a workout over the summer, so be sure your vents are free of debris and your filters are new. If you use window-mounted units, ensure that window seals are tight and wall-mounted supports are securely fastened.

Seals

Heat and cold are both hard on rubber seals and caulking. Replacing seals around your doors and windows can pay for itself in just a month and requires very little effort, so there’s no reason to avoid it.

This entry was posted in Homeowners and Sellers and tagged First-Time Homeowner, home maintenance, homeowner. Bookmark the permalink.

I know many of you, including myself, have made numerous repairs to your home. Things like new roofs, gutters, siding, and other repairs have been made thanks to the April storms. Now that these repairs are finished or will be shortly, what a great time to put your home on the market. Interest rates are at record lows and there is a fantastic selection of homes for sale. So, why is now a great time to be home shopping? It is true that home values are down and you may not be able to sell your home for what you could have a few years back. No denying that fact. However, combine the facts that you can buy a home at a great value with a low interest mortgage. You may be able to upgrade and have payments near or below what you are paying now.

The market will improve and with it will be higher prices and interest rates. That new home you just purchased will be valued much higher and your payments will remain the same. With the volatility of the stock market, it seems that real estate would be a very smart investment. Not to mention the enjoyment you and your family will have from owning a new home.

Give me a call today and let me give you a fair market value of your current home and show you what is on the market. You may be pleasantly suprised.