Real Estate Information

Maybe you've been eyeing the real estate market and you think that you're finally ready to purchase your first home...if so, read on to be sure you're in the best position.

The rules have drastically changed in the real estate market. At one time, getting a mortgage seemed to require little more than just simply stating your income on paper. Today, the credit tightening continues. Banks want extra documentation that you can truly afford the home you want to buy.

But don't let that scare you. Your dream of becoming a homeowner is still a viable option. Here are a few tips to help you achieve your dream. First take a good look at your credit. It's sad, but true, many people have no idea how their credit reports look. They can't remember if they've ever seen their report and they don't know their credit score.

Unfortunately, that puts buyers in a poor position. If there are errors on their credit reports, those must be handled before you try to purchase a home. Sometimes there are marks that truly shouldn't be on your credit. Other times there are knocks against your credit that you may be able to get removed.

Check your credit score at least three to six months before you apply for a mortgage. This will give you time to address any issues.

Start saving now. These days a down payment for a home doesn't come easy. You may need as much as 20 percent down. However, there are still some loan programs that will allow you to put down much less.

Make sure you are working with an experienced team of real estate professionals. This kind of purchase requires lots of information, education, and knowledge. Having a team of industry professionals to guide you through the first-time home-buying experience will make the process so much easier.

When you're preparing to buy a home, if you haven't already, make a budget and start watching where every dollar goes. It's amazing how few people do this. It's even more amazing to see how much money is wasted. Those extra trips to the coffee shop, the donuts in the morning, the manicures, or shopping sprees, all are areas where you can likely cut back to save for your down payment.

Picture your home. It might sound silly but you need to envision the home you want to buy. This will help you tremendously once you start your search. Start looking online, in magazines, and around your chosen neighborhoods.

You can even use online tools like Pintrest.com to pin images and videos you see on an online storage board to refer to later. This is a great tool for collecting photos of home decor.

The point here is to make sure you have an idea of what is important to you in a home. Since you've been renting, this might not be crystal clear at first. But as you make your list and explore homes with your agent, you'll begin to see which things are deal breakers and which things are a must-have.

Buying a home is like looking for the right relationship. It can be exciting at first, frustrating at times, and so comforting once you've finally found the right one. Happy house hunting!

Published: March 23, 2012 Realty Times

The latest Pending Home Sales Index from the National Association of Realtors showed promising results this month, with pending sales in upward movement.

This is the highest point seen since April of 2010, when buyers took advantage of the first time home-buyer tax credit.

Lawrence Yun, NAR chief economist, said this is a hopeful indicator going into the spring home-buying season. "Given more favorable housing market conditions, the trend in contract activity implies we are on track for a more meaningful sales gain this year. With a sustained downtrend in unsold inventory, this would bring about a broad price stabilization or even modest national price growth, of course with local variations."

Regionally, the South led the way increasing 7.7 percent in January. The Northeast also saw a 7.6 percent rise for the month. The Midwest and West both fell, however, falling 3.8 and 4.4 percent respectively.

"Movements in the index have been uneven, reflecting the headwinds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery," Yun said. "If and when credit availability conditions return to normal, home sales will likely get a 15 percent boost, speed up the home-price recovery, and thereby significantly reduce the number of homeowners who are underwater." In the new homes market, sales declined in January to a seasonally adjusted pace of 321,000, but were up 3.5 percent over last year at this time.

NAHB Chief Economist David Crowe reports, "This is indicative of the incremental, steady progress that the market is making toward recovery in conjunction with modest economic and job growth. Increasingly, potential buyers are feeling better about their financial situation and their ability to buy a home, but the challenges posed by tight credit conditions and appraisal issues continue to slow that process."

Despite the decline for the month this is the fastest pace seen again since April 2010. Finally, the Mortgage Bankers Association reports that mortgage applications declined this last week by 0.3 percent. Michael Fratantoni, Vice President of Research and Economics reports that "more than 20 percent of refinance applications were for HARP loans.

He continued that "the HARP share of total refinance applications has increased over the past month. Purchase application volume increased over the week, but remains within the narrow and anemic range of activity we have seen since the expiration of the homebuyer tax credit in May 2010."

Realty Times, Published: March 5, 2012

Despite a slow sales season to begin 2011, single-family residence and condominium sales in the Dayton area greatly improved as the year progressed, according to the figures released by the Dayton Area Board of REALTORS® Multiple Listing Service. And for the first time in two years, home sales stood on their own without the aid of federal tax credits.

10,463 single-family and condominium sales were posted in 2011, down just 2.7% from 2010. Total sales volume reached just over $1.2 billion, compared to $1.3 billion in 2010, a decline of 7.7%. The average sale price per unit came in at $115,891 for the year, down 5% from last year’s $122,117. The median sale price was $94,000, a 9.6% drop-off compared to 2010’s $104,000 median.

The first half of 2011 was largely responsible for losses totaled during the year. Until July, the number of homes sold simply could not compete with the 2010 statistics. Many consumers took advantage of the homebuyer tax credits that were offered (up to $8,000 for first-time homebuyers and $6,500 for other buyers), and that helped to drive sales in 2010. From July on, the 2011 figures fared much better, since they were being compared to 2010 home sales that occurred after the expiration of the tax credits. Sales in the second half of the year topped those of 2010’s second half by 9.1%. Sales volume was up 8.2%. Median and average prices were strong but still slightly down at -2.9% and -0.8% respectively. As compared to the first half of 2011 though, the median improved by 9% and the average price by 7.3%.

Total listings submitted during 2011 reached 21,724, compared to 24,855 in 2010, down 12.6%. 2011 began with 7,722 listings in the inventory, peaked at 9,486 in May, and ended with the lowest total of the year at just 7,171 available listings. A negative figure in this instance could prove to be beneficial, as fewer homes on the market have the potential to raise prices going into 2012.

In 2011, sales totals in year-over-year comparison surpassed those of 2010 in five of the last six months of the year, excluding only December, when 765 sales came just 10 units shy of December 2010’s figure.
The accumulated sales volume resulting from December’s transactions reached nearly $84 million, and produced an average sale price of $109,674, and a median sale price of $89,900. These figures were down 9.5% and 11.8%, respectively.

The overall MLS inventory for single-family and condo listings at the end of December stood at only 7,171, the lowest inventory total of the year, and represented a supply of 9.37-months, down from 10.5-months at the end of November. Last year at the same time the supply stood at 10.7-months.

It may be cold outside, but it's no time hibernate when it comes to home maintenance. Have you ever wondered how some friends or neighbors live in older homes that are still in good working order? This isn't just a lucky coincidence.

Houses require careful attention, especially in the Winter, in order to keep in good working order. If you take the extra time each season to check your home over and perform the necessary maintenance, then you'll be sure to have a sturdy home for years to come.

First, it's important to keep your family safe and warm when it's chilly outside. Do a twice yearly check on your windows and doors for air leaks. Under most circumstances you can easily fix these with caulking. Are your windows in need of a more energy efficient upgrade? Have you thought about installing storm windows and doors? These are important questions to ask yourself. If you have older, non-insulated windows it may be time to replace them. You can even deduct some of these upgrades from your incomes taxes!

If you find leaks, then take the necessary action to fix them pronto. You may find that some doors continue to leak air even after you've made them "air-tight." This means it is time for Plan B. Storm doors work wonders for keeping out the elements. Many stores also sell draft blockers that sit at the bottom of you doors.

Next, schedule a time to service your heating system. Central heat and air units need to be checked over. When a unit is well-serviced it will save you fuel and thus money.

If your home is older, then you might consider a trip to the attic to check ductwork. You never know what critter has chewed through ducts or what parts have become disconnected.

While you're in the attic take a hard look at the state of your insulation. Is it adequate for your region? Is ductwork well-insulated? Older homes can sometimes be completely devoid of attic insulation. If so then it's time to bring in some reinforcements. Insulation is relatively inexpensive and can save you big in the long run.

Do you heat using a wood burning fireplace? Is it imperative for your safety to have your chimney cleaned and checked multiple times during the Winter season if you use your fireplace regularly. Chimney fires happen all the time.

There are smaller issues to attend to as well. Did you know that your ceiling fans have two settings for the blades? You want to be sure to reverse your fan in the Winter so that it pushes the hot air (which naturally rises) back down into your living spaces.

Gutters become full of leaves and other debris. If you fail to clean your gutters they can begin to hold water which can eventually rot away the siding and roof of your home. When the weather drops below freezing you need to keep your pipes from freezing. Let faucets drip and unhook all outdoor hoses.

Finally, every responsible homeowner is stocked with the proper tools. Keep sand or salt on hand to de-ice slipper steps and sidewalks. Invest in a heavy duty snow shovel or snow blower. Your home is your biggest asset and literally keeps a roof over your head. Be kind and take care even during the chilly Winter months.

Carla Hill, Realty Times Published: January 19, 2012

Residential and condominium sales reported by the Dayton Area Board of REALTORS®’ Multiple Listing Service for November rose in year-over-year comparison for the fifth consecutive month, with 731 sales representing a 12.4% increase compared to last November’s 650 sales.

Sales volume reached $84.4 million for the month compared to $75.5 million last year, an increase of 12%. This activity generated an average sale price for November of $115,700, down just .45% from last year. The median sale price was up 1.4%, $91,250 compared to $90,000 a year earlier.

Sales year-to-date through 11 months now total 20,610, compared to 23,201 last year at the same point, down 2.7%. Before the recent streak of five straight increases in year-over-year sales, year-to-date sales were down 13.7%. This improvement is a very encouraging sign as we near a new year of activity.

Sales volume for single-family and condo sales year-to-date is now well over the billion-dollar plateau at $1.2 billion. The average sale price is currently remaining steady and shows a figure of $116,404 through November, still down 4.73%, compared to November 2010. The median sale price year-to-date is $94,900, down 8.7%, compared to $104,000 in 2010.

Single-family and condo listings submitted in November totaled 1, 247, down significantly (14.7%) from the 1,463 listings added during the same period in 2010. The January-November listing total has now reached 20,610, down 11.2% compared to 23,201 in 2010.

Overall MLS inventory at month’s end had declined to 7,683 compared to 8,245 in October and 8,010 last year at the same time. The supply of available active listings, based on November’s sales pace, stands at 10.5-months, up from a 9.5-month’s supply last month. This slowdown from last month is normal this time of year as the winter months and the holiday season draw a number of potential buyers toward other priorities.

If you're selling your home then you should know that one of the popular rooms that tops buyers' favorites list is the kitchen. So it makes sense to spend time, energy, and even a little money to make it shine.

That thought can make some sellers cringe. The thought of spending money to fix up a kitchen in a home that they're about ready to sell is unpalatable. However, it could make the difference between a buyer making a higher offer or even any offer at all. Kitchen makeovers don't need to make your blood boil and break you out in a sweat, fearing the loss of money that will soon be drained from your bank account. You can tidy up your kitchen and even give it a fresh, stylish, updated look, on a frugal budget. Let me show you how. It starts with simple things. The kind of tasks you can do yourself.

Deep cleaning. Nothing beats a deep cleaning. This means pulling the refrigerator out from the wall, moving furniture and giving the floor, baseboards, crown molding, walls, back splash, counters and all surfaces a good scrubbing. It's amazing how much crumbs and other debris accumulate in the kitchen (even in a well-cared-for kitchen there's usually a fair amount hidden in between appliances).

Scrub down the appliances. It's so unattractive when you walk into a listed home and you can tell what the family had for dinner just by opening the oven. Think buyers don't open your appliances? Think again! They're considering your home as their own. They will check out your refrigerator, oven, kitchen cabinets, and your closets. So, be careful what you stuff inside them. I often caution sellers to remove medication from your cabinets before having an open house. I know it's more work but it's safer and retains your privacy.

Buy hardware in bulk. You don't have to hire a remodeling company to come in and resurface your cabinets or replace them; that can be very costly. Giving them a deep cleaning or painting them (depending on their surface) can be an excellent way to freshen them up. Then, if you have worn-looking or outdated hardware, buy some knobs. When you buy the hardware in bulk you can often get a better price and easily replace them to give your cabinets a better look.

Experiment with custom high-end additions. Sounds like I'm talking about high-priced additions but actually you can head to a mass retailer and find additions like trim and even plate rack shelving that has a custom, high-end look at a moderate price. Then clear the clutter out of those cabinets and shelves and display beautiful plates in a spacious plate rack. Think of what you're used to seeing in a print or TV ad for home decor. It's like a computer ad that shows the solo computer without all the wires - clean, elegant, attractive.

Add molding to your cabinets. This can turn an every-day looking cabinet into a chic kitchen look. Painting your cabinets can give the entire kitchen an upscale look. However, be sure you know what kind of paint will adhere to your cabinets. Custom hood range. Adding a custom hood range–again it doesn't have to be outrageously priced–can really complete the look of your kitchen. It's a subtle difference that makes it look and feel more like a high-end remodeled kitchen.

A bit of planning and careful budgeting can go a long way in creating a kitchen that sparks an interest in prospective buyers.

By Phoebe Chongchua, Realty Times

Published: December 2, 2011

It's the holiday season! For many people out there this season is taking on a whole new meaning.

Cold weather, rain, and snow won’t keep a good buyer down. There are great deals to be had all year round. Buying doesn't always happen on schedule. It can take weeks or months to find the perfect house, you may need to move suddenly to follow a new job opportunity, or move to be closer to ailing parents.

Buying happens for a myriad of reasons and during every month of the year. Yet, buying during the holidays can be challenging, especially if you're a family with lots of traditions or with children.

If you have children, then here are some tips to make a move during the holidays a big deal in a good way!

First, children follow the lead of their parents. If you are depressed about missing out on Aunt Sue's famous turkey or daily noting the bad luck of buying during the holidays, your children will likely pick up on this. So start by adjusting your attitude first. Focus on the positive aspects of the move. Try to keep a cheery, upbeat attitude.

Will a child be getting their own room? Will their new room be "awesome"? These can be reasons to celebrate! Talk up all the great new area parks, restaurants, and kid-friendly attractions.

Older children may be a harder sell, especially if you're moving them away from their school or friends. Do a little research and find out more on area malls, sports teams, or youth groups that your child may be interested in.

Also consider rewarding children especially well for their good behavior during a move. Maybe now is a time for that allowance raise (if it doesn't seem too much like a bribe), to let them select the new decor for their new room, or to have one extra pizza night this week.

Communication is key for getting through a move, regardless of the season. Have a family meeting to discuss concerns and fears, or have one-on-one talks with each kid to assess their feelings.

Finally, make every attempt to keep traditions alive. This is important for adults and children alike. If your family loves having a fully decorated tree, then you might have to set it up twice this year -- once at your current home and then quickly again when you first arrive in your new home.

Boxes and chaos aside, you can still sit down for a fun family dinner or for an evening of singing songs and opening presents. Keep your traditions alive and your move this holiday season will be an easy one!

By Carla Hills, Realty Times  Published: November 8, 2011

For the third month in a row, home sales in the Miami Valley have improved over last year, according to the Dayton Area Board of REALTORS®’ Multiple Listing Service data released today.  Single-family and condominium sales registered in the MLS database for September showed 921 transactions, a healthy 95 unit or 11.5% increase compared to September 2010. These sales generated a dollar volume of $109.7 million, a 12% increase over last September. This translated to an average sale price of $119,133 and a median sale price of $98,000, also increases of 0.7% and 1.5% in year-over-year comparison.   

Sales through the first three quarters of the year have now reached exactly 8,000, down 5.6% from last year’s 8,475 during the same reporting period. This is a marked improvement from the first two quarters of 2011 when the figures showed a year-to-decline of 13.7% at the end of June.  

Total sales volume through September reached $928.6 million, down 11% compared to the end of the third quarter last year. The year-to-date average sale price per unit stood at $116,078 while the median sale price hovered at $94,500, declines of 5.8% and 10%, respectively.

Single-family and condominium listings added in September totaled 1,606, a drop of 15% compared to September 2010 when 1,896 submissions were tallied. Listings year-to-date totaled 17,783, a decline of 11.3% compared to 20,048 listing posted at the same time in 2010.  

The overall MLS inventory after three quarters shows 8,575 listings available for sale. This is the lowest inventory level MLS has shown since January of this year. The supply of properties for sale stands at 9.3-months based on the pace of sales during September. This is a slight increase from last month’s 9-month supply, when the sales pace was slightly higher.  

 Statistics provided by John Junker, MLS Data Specialist

For four weeks in a row, mortgage rates are seeing historic lows. The 30-year fixed average interest rate fell from 4.09% to 4.01% in the end of September. This marks the lowest rate since 1951.

Also, economists call the 15-year fixed mortgage drop to 3.28% the lowest ever for that loan. It appears they could go even lower as the Federal Reserve announced that it will push long-term rates down further. These historically low mortgage rates aren't necessarily rapidly selling homes. Across the country contract signings have been down. According to USAToday.com, “July's index fell 5.8% in the Northeast, 3.7% in the Midwest and 2.4% in the West. It rose 2.6% in the South.”

The index of sales agreements, tracked by the National Association of Realtors, showed a 1.2% drop down to 88.6 (100 is considered healthy). Still the opportunities for homeownership keep getting better. Some markets are more affordable than ever; prices have been cut in half in some metro areas. Of course, getting a loan can be part of the barrier to entry in the housing market. These days, to qualify for a loan a 20% down payment coupled with a high credit score are required by some lenders.

Now, a new credit score service being introduced in November claims it will give lenders a more accurate picture of a borrower's outstanding debts. The company's website has a countdown to the release of CoreScore (credit report from CoreLogic). It touts the system as a way to “see borrowers as you've never seen them before.”

Some lenders are being extremely strict because they have difficulty determining previous credit behavior. But according to CoreLogic, everything will soon change. The CoreScore credit report is a supplement, not a replacement for the current credit reporting systems.

According to the company, “The supplemental information the CoreScore credit report provides will expand your view of borrower credit profiles and deliver important insight into unseen risk and opportunities.”

Among the information that the CoreScore report will deliver to lenders are the following:

1. Properties owned—with and without debt obligations Mortgage obligations with companies that may not report to traditional credit reporting agencies

2. Property legal filings, such as notices of default

3. Property tax amounts and payment status

4. Estimated market values on all U.S. properties owned

5. Rental applications and evictions

6. Inquiries and charge-offs from pay-day and online lenders

7. Consumer-specific bankruptcies, liens, judgments and child support obligations

With mortgage restrictions tighter than ever and more supplemental information being offered to lenders about borrowers' debts and credit behavior, it's vital for borrowers to understand the most important qualifying factors that influence lenders.

The chief concern is the ability to repay the loan followed closely by the willingness to repay. Borrowers can place themselves in better standing with lenders by doing two key things: paying off as much debt as possible before applying for a mortgage. This is always good as it lowers the debt-to-income ratio. Secondly, lenders examine borrowers' track record of repayment to determine how they will behave if they are issued a loan. Making sure that credit behavior is monitored and any discrepancies are handled before applying for a loan will help borrowers have a cleaner record and increase the chances of qualifying for a mortgage.

Published: October 7, 2011 Realty Times

Sales totals reported to the Dayton Area Board of Realtor’s MLS in August for single-family and condo properties improved in a year-over-year comparison for the second month in a row. The 991 transactions were an improvement of 7.6%, or 70 units, over last Augusts 921 sales. The sales volume for August reached $121.6 million, a 4.6% jump from August 2010. The average and median sale price figures tapered off compared to a year earlier, after a healthy upward bump in July. The average came in at $122,767 per unit and the median sale price at $104,000. These were slight declines of 3.2% and 2.2% compared to the same reporting period last year.

Sales figures for the first eight months of 2011 remain lower in year-over-year comparisons. There have been 7,022 single-family and condo sales reported through August compared to 7,625 in 2010, a decline of about 8%. A year-to-date sales volume of $811.5 million has produced an average of $114,689 and a median of $93,700, declines of 7.5% and 12.4%, respectively.

Listings submitted during August totaled 1,987, 15% fewer than last July’s 2,339. The first eight months of 2011 have seen 16,188 single-family and condo submissions made available for sale. This compares to 18,250 in 2010, a decline of 11%. Total MLS inventory as of month’s end showed 8,981 listings for sale, a decline of 380, or 4% from last month. Coupled with Augusts’ increase in sales, the supply ratio has dropped from 10 months in July to 9 months of available listings in August.  Last year at the same time, the supply was also 10 months.

Statistics provided by MLS Data Specialist John Junker.