RE/MAX National Housing Report - May 2016

May 2016 RE/MAX National Housing Report

May 17, 2016

DENVER (May 17, 2016) – With the 2016 home-buying season just starting, April sales saw a 7.5% increase over March and a 3.2% rise over April last year, which nearly matches the average year-over-year sales increase of 4.3% so far in 2016. The Median Sales Price in April was $215,000, which was 5.4% higher than one year ago and 7.5% above the median price in March. The inventory of homes for sale remains very tight in many markets across the country, with the April inventory 15.2% lower than April 2015. At the rate of home sales in April, the national Months Supply of Inventory was 3.2, down from 3.7 in March.  
 
“Even though inventory remained tight, April still saw a demand for homes at a level higher than one year ago. Homebuyers realize that interest rates are historically low and mortgage accessibility appears to be improving along with the overall economy. Price increases make it possible for homeowners to feel comfortable selling, but they aren’t at a level that keeps first-time buyers out of the market,” said Dave Liniger, RE/MAX CEO, Chairman of the Board and Co-Founder.
 
“The steady annual increase in home values shows sustainable growth and an improving economy. We always look for gains to be similar to inflationary growth while avoiding the hikes that could lead to bubble fears. We’re currently in that range, which should come as a more comforting sign to many homeowners,” added Bob Walters, Quicken Loans, Chief Economist. 
 
Closed Transactions – Year-over-year change
In the 53 metro areas surveyed in April, the average number of home sales was 3.2% higher than one year ago, and was 7.5% higher than the previous month. The sequential monthly increase was in line with the 6.8% average seen over the last seven years. Like February and March, home sales continued to be strong the Northeast. Across the nation in April, 34 of the 53 metro areas surveyed reported home sales higher than one year ago, with 16 experiencing double-digit increases, including Hartford, CT +27.4%, Providence, RI +27.1%, Augusta, ME +23.4%, Manchester, NH +22.3%, Boston, MA +21.1% and Tulsa, OK +16.2%.
 
Median Sales Price – Median of 53 metro median prices
The Median Sales Price in April was $215,000, up 7.5% from March, and up 5.4% from the Median Sales Price in April 2015. April is the 51st consecutive month without a drop in price from the previous year. In 2015, the monthly average of year-over-year price increases was 7.6%. The 5.4% rise in April may mark a moderation in price increases, which would have a positive impact on home affordability. Among the 53 metro areas surveyed in April, only two had a year-over-year drop in prices, Tulsa, OK -2.7% and Trenton, NJ -0.4%. The remaining 51 metros reported higher prices than last year, with 11 rising by double-digit percentages, including Providence, RI +17.5%, Portland, OR +15.5%, Boise, ID +13.5%, Fargo, ND +12.5%, Nashville, TN +11.7% and Burlington, VT +11.4%.    
 
Days on Market – Average of 53 metro areas
The average Days on Market for all homes sold in April was 64, down 7 days from the average of 71 in both March and April 2015. April becomes the 37th consecutive month with a Days on Market average of 80 or less. In the three markets with the lowest inventory supply – San Francisco, Denver and Seattle – Days on Market was 23, 27 and 32 respectively. The highest Days on Market averages were seen in Augusta, ME 159, Des Moines, IA 110 and Burlington, VT 108. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed. 
 
Month’s Supply of Inventory – Average of 53 metro areas
The number of homes for sale in April was just 0.2% lower than in March, but 15.2% lower than in April 2015. The average loss of inventory on a year-over-year basis in 2015 was 12.2%. While inventory remains much lower than last year, there are signs of stabilization month-to-month. Based on the rate of home sales in April, the Month’s Supply of Inventory was 3.2, which is nearly identical to last month and last year, 3.7 and 3.6 respectively. A 6.0 month’s supply indicates a market balanced equally between buyers and sellers. The number of metros with a month’s supply below 2 has jumped significantly. While January and February saw 5 and 6 metros below 2, March and April both reported 11 metros with a supply less than 2 months. Those with the lowest Month’s Supply are Denver, CO 1.1, Seattle, WA 1.1, San Francisco, CA 1.2, Omaha, NE 1.2, Portland, OR 1.3 and Dallas-Ft. Worth, TX 1.6. 
 
Contact
For specific data in this report or to request an interview, please contact (303) 796-3405 orshaunwhite@remax.com.

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House For Sale Sullivan, WI 53178

House For Sale Sullivan, WI 53178

N3951 Vista Rd Sullivan, WI 53178

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Like the Idea of Lake Living?

Like the idea of lake living?  I can help you find the perfect lake home in fabulous Lake Country!

Heidi Buchberger RE/MAX Realty Center 262-443-2672 heidi.buchberger03@gmail.com

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Staging Tips for Sellers

STAGING TIPS FOR SELLERS

Spring has arrived, which means real estate season is upon us. When selling your home or property, attracting full price offers is always top priority, and a properly staged home can be your number one asset in drawing as many offers as possible. Here are staging tips to help you prepare your home for the market.

Enhance Your Entry

It's the first thing buyers see, and most likely serves as the first impression of your house. Utilize the entry by updating the front door color, change out the door hardware (or clean and polish the current hardware). Make potential buyers welcome with a nice mat and some potted plants or flowers.

Clean Out Clutter

The majority of us have too much stuff, and clutter is a huge killer for potential buyers. Be ruthless when it comes to clutter -- if you haven't used it in three months, box it up. If you haven't used it in a year, sell or donate it. Go one room at a time. It's ok to have empty space. If you can't part with something, get creative on how to store it. Rolling bins that fit under beds are perfect for hiding items and getting things out of the way. Too much furniture will also make a home look cluttered and smaller than it is. You want to create space – ask what you can live without. Every square foot is prime real estate.

Move or Float Furniture

Once you've moved out the clutter, turn to the remaining furniture. Furniture doesn't need to be pushed up against walls. Moving and floating pieces can help rooms look and feel bigger. Try moving pieces around, even from other rooms, but remember to keep the perimeters clear with clear pathways.

Let the Light In

Natural light does wonders for a home and makes rooms more inviting. Take down heavy drapery and replace with gauzy and airy fabrics. If you have views, play them up! Look into roman shades, which help with privacy but also let light in. Simple curtain panels made from airy fabrics like cotton twill or translucent linen will let the light in during the day and still help with privacy at night.

Re-purpose Rooms

Do you have a designated junk room? Re-purpose rooms that have lost their identity. Most designers look at junk rooms and envision fantasy spaces: an exercise room, meditation space, art studio, etc.. Re-purpose a clutter/junk room into something that will add value to the house. Also consider loft spaces, stairwell nooks and other areas not utilized or gathering dust as possible areas for increased space.

Light It Up

Many homes are poorly lit, making rooms too dim or harsh on the eyes which can deter buyers when they walk into your house. Try to aim for a total of 100 watts for every 50 square feet. Don't be afraid of dimmers, and replace light-switch covers that are old, dingy or broken. Uplights also help add depth to a room, especially when positioned behind a plant or piece of furniture.

Add Some Color

Color on the walls or as an accent can really make a room pop. Painting is an inexpensive and easy way to give your house a new look. Neutral colors don't mean beige or off-white; warm tans, honey and soft blue-greens all attract the eye and help to make a room feel warmer without going overboard. Accent walls can also add a burst of color. If painting is too daunting, add richly colored accessories, pillows and throws for subtle bursts of color.

Add Art and Accessories

De-cluttering is important, but so is playing up what you have in your house. Adding art to a drab wall can also add character to a room. Try breaking up the art by patterning and grouping pictures or images together. Add a small touch by accessorizing your room -- layer accessories in threes, with varied heights and widths. The eye naturally reads a room from left to right, so adding a large or striking object in the far right corner will draw the eye to it and make the room seem bigger. Another accessory not to be overlooked: plants. A vase of fresh flowers, branches, twigs or greenery will add depth and character to a room.

Zero Down Mortgages Available to Veterans

Road Signs – Zero Down Mortgages Available to Veterans

By Michael Zuren, PhD.

If you are a veteran and do not own a house, now may be the best time to consider homeownership.  Interest rates are extremely low, and home prices in most areas are below 2009 prices.  A veteran can purchase a house with no money down and no monthly private mortgage insurance.  Any veteran that has served in wartime service or during times of peace is eligible for a mortgage insured by the Veterans Administration (VA).  The veteran must also have been honorably discharged, or if they are still active in the Armed Forces, they must meet certain service requirements.  In addition to veterans, VA mortgages are available to spouses of veterans, if they meet certain criteria.

If you're eligible for VA financing, you will need to apply for your certificate of eligibility from the Veterans Administration.  For this form, you will need a copy of your most recent discharge paper (DD214) and to complete VA form 26-1880.  Once you have obtained your certificate of eligibility, you can than apply for a mortgage through any eligible lender.  A lender, who has been approved by the Veterans Administration for automatic processing and the lenders appraisal processing program (LAPP), will be able to completely process your mortgage without waiting for VA's approval of your credit application and the appraisal.

The factors that a lender will look at when underwriting your loan file include the following:

1. Employment - You will be required to show a minimum of your last two years employment history as well as stable income. Periods of unemployment or income fluctuation over the past two years may disqualify you for a loan.

2. Satisfactory Credit History - Although, the Veterans Administration has not set a minimum credit score requirement for a VA loan, most lenders will require a middle credit score of at least 640. There are many exceptions to this rule. Compensating factors such as current housing expense, reserves, and down payment may all affect the final credit decision.

3. Debt to Income Ratio - There is a single debt ratio for VA loan, which is 41% of your gross income.  The debts used to calculate this ratio include: the mortgage payment, auto loans, installment loans, credit cards, student loans, and any other unsecured debt. Utility bills and cell phone bills are not included in this calculation.

4. Residual Income Calculation - In addition to the debt to income ratio, VA loans are subject to a residual income factor.  This is a calculation used to determine how much money the veteran will have left over after paying their mortgage and all other debts. These debts include state, federal, and Social Security taxes, as well as maintenance and utilities, child care expense, installment loans, revolving debts, and mortgage payment(s).  Residual income is the money that you have left over each month after you pay your debts.  Residual income would typically be used for personal items such as groceries, gas, movies, going out to dinner, etc.  In the Midwest, residual income is based on family size and mortgaged amount.  For example, a family size of two, who apply for a mortgage of 80,000 or above, will need to have residual income of at least $738 per month.  To verify the residual income for your household, you can either contact the Veterans Administration or your mortgage lender.

5. Satisfactory Appraisal - A VA appraisal will be required on the home that you intend to purchase.  It will need to meet the health and safety standards set by the Veterans Administration, or repairs will need to be completed prior to closing on the house.

All VA loans must be owner-occupied residential properties.  Considering, the current prices of houses in most parts of the country and that interest rates have fallen to their lowest level in years, now may be the perfect time to purchase a home.

Contact me today for more information on VA Loans!!  

Keep Your Home Purchase on Track

KEEP YOUR HOME PURCHASE ON TRACK

By: G. M. Filisko

You’ve found your dream home. Make sure missteps don’t prevent a successful closing.

A home purchase isn’t complete until you make it to the closing. Until then, the transaction can fall apart for many reasons. Here are five tips for avoiding mistakes that cause a home sale to crater.

1.  Be truthful on your mortgage application.

You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan you need to fund your home purchase. Plus, intentionally lying on a mortgage application is a crime.

2.  Hold off on big purchases.

Lenders double-check buyers’ credit right before the closing to be sure their financial condition hasn’t weakened. If you’ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, your credit score may have dropped enough to make your lender change its mind on funding your home loan.

Although it’s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing.

3.  Keep your job.

The lender may refuse to fund your loan if you quit or change jobs before you close the purchase. The time to take either step is after a home closing, not before.

4.  Meet contingencies.

If your contract requires you to do something before the sale, do it. If you’re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, don’t stall. If you have 10 days to get a home inspection, call the inspector immediately.

5.  Consider deadlines immovable.

Get your funds together a week or so before the closing, so you don’t have to ask for a delay. If you’ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines as sacrosanct.

www.heidibuchberger.com

How to Assess the Real Cost of a Fixer Upper

HOW TO ASSESS THE REAL COST OF A FIXER-UPPER HOUSE

By: G. M. Filisko

When you buy a fixer-upper house, you can save a ton of money, or get yourself in a financial fix.

Trying to decide whether to buy a fixer-upper house? Follow these seven steps, and you’ll know how much you can afford, how much to offer, and whether a fixer-upper house is right for you.

1.  Decide what you can do yourself.

TV remodeling shows make home improvement work look like a snap. In the real world, attempting a difficult remodeling job that you don’t know how to do will take longer than you think and can lead to less-than-professional results that won’t increase the value of your fixer-upper house. 

• Do you really have the skills to do it? Some tasks, like stripping wallpaper and painting, are relatively easy. Others, like electrical work, can be dangerous when done by amateurs.

• Do you really have the time and desire to do it? Can you take time off work to renovate your fixer-upper house? If not, will you be stressed out by living in a work zone for months while you complete projects on the weekends?
• 
  

2.  Price the cost of repairs and remodeling before you make an offer.

• Get your contractor into the house to do a walk-through, so he can give you a written cost estimate on the tasks he’s going to do.

• If you’re doing the work yourself, price the supplies.

• Either way, tack on 10% to 20% to cover unforeseen problems that often arise with a fixer-upper house.
• 
  

3.  Check permit costs.

• Ask local officials if the work you’re going to do requires a permit and how much that permit costs. Doing work without a permit may save money, but it'll cause problems when you resell your home.

• Decide if you want to get the permits yourself or have the contractor arrange for them. Getting permits can be time-consuming and frustrating. Inspectors may force you to do additional work, or change the way you want to do a project, before they give you the permit.

• Factor the time and aggravation of permits into your plans.
• 
  

4.  Doublecheck pricing on structural work.

If your fixer-upper home needs major structural work, hire a structural engineer for $500 to $700 to inspect the home before you put in an offer so you can be confident you’ve uncovered and conservatively budgeted for the full extent of the problems.

Get written estimates for repairs before you commit to buying a home with structural issues.

Don't purchase a home that needs major structural work unless:

• You’re getting it at a steep discount

• You’re sure you’ve uncovered the extent of the problem

• You know the problem can be fixed

• You have a binding written estimate for the repairs
• 
  

5.  Check the cost of financing.

Be sure you have enough money for a downpayment, closing costs, and repairs without draining your savings.

If you’re planning to fund the repairs with a home equity or home improvement loan:

• Get yourself pre-approved for both loans before you make an offer.

• Make the deal contingent on getting both the purchase money loan and the renovation money loan, so you’re not forced to close the sale when you have no loan to fix the house.

• Consider the Federal Housing Administration’s Section 203(k) program, which is designed to help home owners who are purchasing or refinancing a home that needs rehabilitation. The program wraps the purchase/refinance and rehabilitation costs into a single mortgage. To qualify for the loan, the total value of the property must fall within the FHA mortgage limit for your area, as with other FHA loans. A streamlined 203(k) program provides an additional amount for rehabilitation, up to $35,000, on top of an existing mortgage. It’s a simpler process than obtaining the standard 203(k).
• 
  

6.  Calculate your fair purchase offer.

Take the fair market value of the property (what it would be worth if it were in good condition and remodeled to current tastes) and subtract the upgrade and repair costs.

For example: Your target fixer-upper house has a 1960s kitchen, metallic wallpaper, shag carpet, and high levels of radon in the basement.

Your comparison house, in the same subdivision, sold last month for $200,000. That house had a newer kitchen, no wallpaper, was recently recarpeted, and has a radon mitigation system in its basement.

The cost to remodel the kitchen, remove the wallpaper, carpet the house, and put in a radon mitigation system is $40,000. Your bid for the house should be $160,000.

Ask your real estate agent if it’s a good idea to share your cost estimates with the sellers, to prove your offer is fair. 

7.  Include inspection contingencies in your offer.

Don’t rely on your friends or your contractor to eyeball your fixer-upper house. Hire pros to do common inspections like:

• Home inspection. This is key in a fixer-upper assessment. The home inspector will uncover hidden issues in need of replacement or repair. You may know you want to replace those 1970s kitchen cabinets, but the home inspector has a meter that will detect the water leak behind them.

• Radon, mold, lead-based paint

• Septic and well

• Pest

Most home inspection contingencies let you go back to the sellers and ask them to do the repairs, or give you cash at closing to pay for the repairs. The seller can also opt to simply back out of the deal, as can you, if the inspection turns up something you don’t want to deal with.

If that happens, this isn’t the right fixer-upper house for you. Go back to the top of this list and start again.

Contact me today to find your next FIXER 

UPPER!! 

N71W35558 Mapleton Lake Dr. Oconomowoc, WI 53066- SOLD

SOLD! $355,000

N71W35558 Mapleton Lake Dr. Oconomowoc, WI 53066

Lake Property in Oconocomowoc, WI




Congratulations to my clients on purchasing a WONDERFUL lake home!! 

Pickets Country Store- FOR SALE

N3951 Vista Rd Sullivan, WI- NEW PRICE

New Listing- 1561 Haymarket Rd Waukesha WI 53189

How Much Chinese Money Is Really in the U.S. Real Estate Market?

How Much Chinese Money Is Really in the U.S. Real Estate Market?

With no accurate source of foreign-investment data, analysts must be creative

BY FANG BLOCKORIGINALLY PUBLISHED ON APRIL 20, 2016

Inscrutable investors: Why is it so hard to put a single number on Chinese real estate holdings in the U.S.?

ROY SCOTT / GETTY IMAGES

According to ongoing news reports, Chinese buyers are snapping up properties all over North America, artificially inflating values and causing consternation among local buyers who feel priced-out.

But exactly how many Chinese buyers are investing in American and Canadian real estate — and how much are they spending??

The answer, it turns out, is not easy to come by. Unlike most European countries, the U.S. and Canada do not collect official statistics on foreign buyers, making it difficult to obtain accurate, authoritative foreign-buyer data. Factor in the role of shell companies, and the situation becomes even more complex.

As a result, real estate companies and research institutions are turning to a number of other methods to track Chinese buyers' data.

IDENTIFYING BUYERS BY THEIR SURNAMES

According to a report published last year by Andy Yan, an adjunct professor of planning at the University of British Columbia, 66% of the buyers of single-family homes in certain wealthy Vancouver communities are new Chinese immigrants.

According to The Globe and Mail, Yan arrived at this figure by analyzing 172 transactions from August 2014 to February 2015 in three communities of West Vancouver and screening for non-Anglicized Chinese names. David Eby, a local politician who assisted Yan with the research, told The Province that the study “bears out the anecdotal feelings that people have about [the high numbers of] mainland China buyers.”

Critics were quick to question both the validity of Yan’s data and the assumptions that were drawn from his conclusions. Bob Ransford, an urban planning consultant, voiced worries over analyzing buyers by ethnicity and connecting them to hot-button issues.  Speaking with theVancouver Sun, he said there is danger in “singling out certain groups of people saying they're to blame for this.”

Yan’s defenders noted that this “is the same name analysis methodology used by governmental organizations for public health and political science.”

THE JOURNALISTIC APPROACH

“Collecting real estate transaction data is difficult,” said Arthur Margon, a partner at Rosen Consulting Group, a California-based real estate economics consulting firm, “and it is more difficult when foreign sellers and buyers are involved, especially when they are Chinese."

As Margon explained, Chinese buyers tend to keep a low profile and are reluctant to make public announcements, even when they’re partners on a large project. To counter this, Margon’s group — working with the Asia Society — is taking a journalistic approach.

For a report due to be published online in May, RCG is compiling Chinese buyers’ home-buying transactions in the U.S. According to Margon, the data comes from several sources, including the federal government's EB-5 Immigrant Investor Program and bank loan records. They’re also verifying buyers through first-hand interviews.

“This is going to be the most comprehensive and authoritative report on Chinese investments in U.S. real estate market,” Margon promised.

ASKING THE AGENTS

Every year, The National Association of Realtors sends a questionnaire on foreign property investment to 150,000 of its one million members. Additionally, every month, it surveys 50,000 real-estate agents about the number of foreign buyers they’ve worked with.

By cross-referencing these results with economic models from other sources, including U.K.-based consultancy Knight Frank, the association breaks out the investments coming from different countries.

Their 2015 Profile of Home Buying Activity of International Clients reported that Chinese buyers put $28.6 billion into American real estate. That number was then widely reported by international outlets such as The New York Times.

EXTRAPOLATING FROM BROADER STATISTICS

In 2014, KPMG, a world-renowned accounting firm, began releasing a semi-annual report entitled, “China Inbound Investing in U.S. Real Estate.”

According to the second 2015 report, the first half of that year saw Chinese companies making 88 direct investments in the United States for nearly $6.4 billion. KPMG noted that, “Real estate and hospitality continues to be the biggest draw, accounting for 65 percent of total investment.”

Using these numbers, it’s tempting to conclude that Chinese real estate (and hospitality) investment for the first half of 2015 was 65% of $6.4 billion, or $4.16 billion. The problem: KPMG  only tracks investments made by commercial organizations, and their data comes from partnerships with institutional organizations.

KPMG's next report is due in May.

THE BIGGER PICTURE

No matter the method, locking down a single, conclusive number on Chinese investment is tricky business. However elusive, it remains an important issue — not just for buyers from China.

“The aggregate scale of Chinese investment in U.S. real estate should get attention by the policy-makers during the next several years,” said Margon. “It affects such policy areas as EB-5 program, tax system and security risks.”

The challenge will be reliably and accurately calculating the scale of that investment.