Kay McArdle’s Toledo Real Estate Looking More Positive in 2013!

The real estate market in Toledo, Ohio may be looking more positive in 2013 than in other areas of the country. The National Association of Realtors’ chief economist Lawrence Yun predicted recently that home values could rise 15% and number of homes sold 20% this year. And he said the Toledo area should be leading the numbers because it has been a bit behind in the general national recovery.

Some other developments that point towards a healtier market are…

Local City of Toledo and suburban areas housing inventory is down making for more competition, multiple offers, quicker sales and putting some upward pressure on prices. We’re especially seeing some shortages of high end homes in Sylvania and Perrysburg.

We are finally seeing more 1st time buyers enter the market creating the snowball effect of helping current home owners move to other more desired homes.

Federal regulators have reached yet another agreement with 10 large banks who wronged homeowners in the foreclosure process and will make modest payments to those people. How much help this will have for the housing market is debateable. But, $5.2 million of that settlement will be available for banks to do loan modifications for people at risk of foreclosure and keeping families in their homes will certainly help the housing market.

New rules by the Consumer Financial Protection Bureau to take effect in 2014 are going to require that lenders only make loans that borrowers can afford. Banks and Mortgage Brokers will have to verify and inspect borrowers financial records (odd that hasn’t been regular practice) and lend only an amount that keeps the borrowers’ total debt including credit cards, student debt and car payments to 43% of their total income. And finally “interest only” loans and “no doc” loans are being banned.

There was an extension of the Mortgage Cancellation Relief through January 1, 2014 as part of the fiscal cliff deal just reached. This has to do with the amount forgiven by mortgage holders in short sales not being taxed as income to the poor people losing their homes. It is good for the housing market because short sale homes are generally in better condition and sell for more than foreclosed homes.

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Good News April Existing-Home Sales Up, Prices Rise Again

MIAMI - DECEMBER 22:  Real estate agents Shell...

From the National Association of Realtors

WASHINGTON (May 22, 2012) – Existing-home sales rose in April and remain above a year ago, while home prices continued to rise, according to the National Association of Realtors®. The improvements in sales and prices were broad based across all regions.

Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 3.4 percent to a seasonally adjusted annual rate of 4.62 million in April from a downwardly revised 4.47 million in March, and are 10.0 percent higher than the 4.20 million-unit level in April 2011.

Lawrence Yun, NAR chief economist, said the housing recovery is underway.  “It is no longer just the investors who are taking advantage of high affordability conditions.  A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices,” he said.  “The general downtrend in both listed and shadow inventory has shifted from a buyers’ market to one that is much more balanced, but in some areas it has become a seller’s market.”

Total housing inventory at the end of April rose 9.5 percent to 2.54 million existing homes available for sale, a seasonal increase which represents a 6.6-month supply2 at the current sales pace, up from a 6.2-month supply in March.  Listed inventory is 20.6 percent below a year ago when there was a 9.1-month supply; the record for unsold inventory was 4.04 million in July 2007.

“A diminishing share of foreclosed property sales is helping home values.  Moreover, an acute shortage of inventory in certain markets is leading to multiple biddings and escalating price conditions,” Yun said. He notes some areas with tight supply include the Washington, D.C., area; Miami; Naples, Fla.; North Dakota; Phoenix; Orange County, Calif.; and Seattle.  “We expect stronger price increases in most of these areas.”

The national median existing-home price3for all housing types jumped 10.1 percent to $177,400 in April from a year ago; the March price showed an upwardly revised 3.1 percent annual improvement.  “This is the first time we’ve had back-to-back price increases from a year earlier since June and July of 2010 when the gains were less than one percent,” Yun said.  “For the year we’re looking for a modest overall price gain of 1.0 to 2.0 percent, with stronger improvement in 2013.”

Distressed homes4 – foreclosures and short sales sold at deep discounts – accounted for 28 percent of April sales (17 percent were foreclosures and 11 percent were short sales), down from 29 percent in March and 37 percent in April 2011.  Foreclosures sold for an average discount of 21 percent below market value in April, while short sales were discounted 14 percent.

To read the rest of the article click here

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Buying a Home? The COST Is More Important Than the PRICE

English: Mortgage debt

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Snippets of an article found at the KCM blog, read full article here.

We have often advised buyers to look at the COST of purchasing a house more than the PRICE of the home. Obviously, price is part of the cost equation. The other piece, assuming you are not an all cash buyer, is the mortgage rate. The mortgage rate to finance a purchase can have a dramatic impact on the overall cost.

Lawrence Yun, chief economist for the National Assoc of Realtors, recently wrote:

“Mortgage rates will be starting to rise. From the 3.9 to 4.0 percent average rate in the past five months on a 30-year fixed mortgage, the new rates will soon be in the range of 4.3 to 4.6 percent.

Dan Green of The Daily Market Reports recently stated:

“The Fed sees growth coming faster than originally expected. There’s suddenly less chance that the Federal Reserve will intervene to help keep mortgage rates low. Absent Fed intervention, mortgage rates are apt to rise and Wall Street is now betting that the Fed has bowed out. With no stimulus, mortgage rates rise.”

 

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