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Home Price Increase Exceeds Experts’ Forecasts

June 26, 2012 by PeterGreijn

NEW YORK — U.S. home prices picked up in April for the third month in a row, the latest indication a recovery in the housing market is gaining traction.

But in a sign of the struggles still facing the broader economy, separate data on Tuesday showed consumer confidence fell to its lowest level in five months in June as Americans’ view of the economy in the coming months soured.

The Standard &Poor’s/Case-Shiller composite index of 20 metropolitan areas gained 0.7 percent on a seasonally adjusted basis, topping economists’ expectations for a 0.4 percent gain.

Compared to a year ago, home prices fell 1.9 percent in the 20 cities, above expectations for a decline of 2.5 percent, and an improvement from the 2.6 percent annual decline seen in March.

April’s gain made for the longest streak of consecutive monthly gains since prices were boosted by the homebuyer tax credit from mid-2009 into early 2010.

“The housing recovery in this cycle has been painfully slow to develop, but it is unmistakably here,” said Chris Low, chief economist at FTN Financial in New York.

“This time, unlike 2010 when the first-time homebuyer tax credit lifted sales, it is happening with only limited help from the government.”

Recent data has pointed to a housing market that has finally hit bottom and is stabilizing, including a report on Monday that showed new home sales hit a two-year high in May.

A Long Way to Go

Still, the housing market has a long way to go before full recovery as it faces a large pipeline of foreclosures, tight credit restrictions and weak demand.

Even as the housing market is firming, the broader economy is struggling under the weight of a sluggish labor market and fears over the fallout of Europe’s debt crisis.

The Conference Board, an industry group, said its index of consumer attitudes fell to 62.0 from a downwardly revised 64.4 in May, falling short of economists expectations. It was the lowest level since January.

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While consumers’ assessment of their current situation improved, they were less upbeat about their expectations for the next six months. Fewer respondents expected business conditions or employment would improve in the coming months.

The index is down nearly 10 points from the peak hit in February. Consumer spending — a major engine of economic growth during the housing boom — accounts for about 70 percent of U.S. economic activity.

“It does reinforce that confidence continues to wane, which does keep pressure on the recovery,” said Sean Incremona, economist at 4Cast Ltd in New York.

Financial markets saw little reaction to the data as investors had their attention on Europe after Spain’s short-term borrowing costs nearly tripled at auction.

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Is That House Worth the Asking Price? (Video)

August 22, 2011 by PeterGreijn

Filed under: News

With home values all over the map and local markets faring very differently in the wake of the housing bust, how do you know if the seller’s list price is on the money?

For most buyers, it starts with what’s known as comparable properties, or comps. In theory, a seller could price their home however they please — but comparative home research allows an educated buyer to place the real value of a home within a reasonable range. If you’re working with a real estate agent, they will compile their comp research into what’s known as a Comparative Market Analysis (CMA).

These reports break down three important considerations: recently sold properties, on-market properties (i.e., asking prices of unsold homes), and off-market properties (i.e., pending sales). The most important of the three is always sold properties, because this will give the best sense of what people are willing to pay for similar homes.

Comparable properties should be similar in size and type to your home, sold preferably within the past six months to a year, and located within a set distance (aim for a half-mile or less). You’ll want to find about three to six homes to form a basis for comparison.

Price Shopping

Unfortunately, the most effective tool for finding comps in many areas, the local Multiple Listing Service, is only available to real estate agents. This is just as well in some cases, as first-time homebuyers should seriously consider consulting with an agent before tackling the market on their own. There are, however, certain websites that can provide enterprising buyers with a rough estimate of local home prices. Keep in mind, though, that these figures mainly draw from public sales records and may not always portray an area in the most accurate light.

More Art Than Science

No home is exactly like any other, despite our best efforts to compare homes as apples to apples. This can be especially true in the current market, where recently sold comps are harder to come by.

“There is fashion involved, in a sense,” says New York appraiser Alice Palmisano. She looks at everything from the ceiling heights and type of flooring, down to special architectural flourishes and the general “flow” of the room. “I look from the perspective of the buyer,” she says. “It’s very subjective. People fall in love or they don’t. I’m looking for what’s appealing in the market, and for things people think they’ll have to fix up.

While some buyers may be willing to pay a premium for certain amenities, it doesn’t mean that all improvements in a home will suit your particular needs or tastes. “What good is a $ 50,000 gourmet kitchen if you don’t cook?” asks Rob Hahn, a Texas-based lawyer and real estate consultant.

Also keep in mind that those less-than-desirable amenities will become your responsibility to either maintain or replace, should you choose to purchase the home — a financial burden that house hunters should take into account when shopping around.

A Word of Caution

When securing a mortgage on your home, it’s ultimately up to your lender’s appraiser to determine what the home is worth. Since the housing bust, appraisers have been particularly conservative with their estimates to avoid the kind of unreasonable mortgage debt that got many Americans in trouble during the boom years. Similarly, high concentrations of foreclosures in an area — an unfortunately common occurrence in today’s market — can also skew appraisal values.

While it’s important to do your homework before placing an offer on a home, know that the amount you’ll ultimately be able to borrow is contingent on this appraisal. If it falls short of the established price, you can opt to pay the difference out of pocket, renegotiate the price, or walk away.

The Takeaway

Whether you choose to consult with a real estate professional or go it alone, it’s useful to get a leg up on research. Searching for home valuation estimates online is a good way to start the process, but keep in mind that numbers only tell half the story. At the end of the day, nothing beats hitting the pavement and visiting the homes in person.

Also see these videos:
Inside the Mind of an Appraiser
Real Estate Appraisals 101

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See more celebrity real estate

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What is an average price to replace 294 windows ?

July 29, 2011 by PeterGreijn

$ 72k is high in my book. I could get that done here in a more expensive state like CA for much less. Out the door, you should not be paying more than $ 200 per, including tax and install.

I would go with the last suggestion of simply replacing the broken glass panes, much more cost effective!
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Today’s Head-Scratcher: Ellen, Portia Raise Home’s Price

July 7, 2011 by PeterGreijn

Filed under: Celebrity Homes

Today’s head-scratcher is that Ellen DeGeneres and Portia DeRossi have raised the asking price of their Beverly Hills home by almost 15 percent — from $ 55 million to a cool $ 63 million. Did the sale of Jennifer Aniston’s place in nearby Trousdale Estates get them thinking they should have asked more? Is the Beverly Hills market seeing a rebound and are prices climbing again? Or is it that, deep down, they really don’t want to sell and this is a way to ensure that they won’t?

No explanation was offered from the Westside Estate Agency, which has the listing (the agency’s website notes that the price is “available upon request”). But our money is on the first two. When Aniston listed her home at $ 42 million, Doubting Thomases — both private and public — lined up to ridicule her pie-in-the-sky asking price. When she sold the home for what’s been reported as between $ 37 million to $ 38 million — a price-per-square-footage record for the area — the DTs crawled back into the woodwork.http://realestate.aol.com/blog/2011/05/31/ellen-degeneres-portia-de-rossi-house-for-sale/

As for Ellen and Portia’s place, it’s located in an extremely private and prime section of Beverly Hills behind gates — and is actually on its own street. State-of-the-art security and all that. The modern compound sits on more than three acres and includes a 9,200-square-foot main house, two guesthouses/studios (with a total of approximately 15,000 square feet), and another detached three-bedroom house that can serve as either another guesthouse for the estate or a separate home office. The property features spectacular grounds and gardens, and city views.

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Josh Altman, star of Bravo’s “Million Dollar Listing” show, and who sells in Beverly Hills under the Hilton & Hyland Realty shingle, says “record sales are happening all around us.” He says the high end of the Los Angeles market “is on fire” right now because of overseas’ money. Candy Spelling’s buyer, for her most-expensive-listing in America at $ 150 million, was from Great Britain, and Beverly Hills reportedly is seeing a lot of Middle Eastern and Chinese investors.

Agents in Beverly Hills have been saying that the high end of the market has been stable for quite some time and that properties that are priced right move very quickly. Yeah, but does pricing “right” mean raising your asking?

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