It Sure Seems Like Spring
Even though
there has been snow in some parts of the country very recently, it feels like
springtime with regard to the economy. We continue to have some fairly positive
economic news released. The releases have included a stronger than expected
retail sales report and leading economic indicators for March. Any good news
regarding consumer spending is good news for the economy as a whole. The news
from the real estate sector we received last week was much less promising and
again we wonder how much this news was affected by the weather.
This week is a
very important week and will go a long way to let us know whether the cold
winter slowdown is behind us. We start out with pending home sales then follow
with consumer confidence and a meeting of the Federal Reserve and then towards
the end of the week personal income and spending numbers are released. And that
is just the warm up. After the private payroll data is release by ADP on
Wednesday, the jobs report closes out the week.
Lately there has
been no report more important than the release of the employment numbers for
the month. With the Federal Reserve making their post-meeting announcement on
Wednesday, personal spending data on Thursday and the employment report release
on Friday, it could be a week with plenty of fireworks. Any one release could
give us a surprise that could shake up the markets. At this point, the markets
believe that the economy is waking up. We just might see if the economy awakens
groggily or with plenty of vigor.
The 2013 State of Hispanic
Homeownership Report, published by the National Association of Hispanic
Real Estate Professionals, finds that Hispanics are expected to comprise 50
percent of all new home buyers by 2020. The U.S. Hispanic population accounted
for an increase of 2.6 million owner households—or nearly 47 percent of all
home ownership growth in the country between 2000 and 2013. The population of
Hispanic people in the United States is growing rapidly and is a key indicator
of housing demand, the report notes. The Hispanic population in the U.S. is
currently about 53 million. Between now and 2050, that number is expected to
grow 167 percent—compared to a 42 percent growth rate projected for the rest of
the U.S. population. “This is a story of pent-up demand,” says Jason Madiedo,
president of NAHREP. “Latinos are ready to buy homes now. Their biggest
obstacle coming into today’s market isn’t credit; it’s lack of available
housing. The readiness of this first-time buyer market represents a whole new
purchase cycle that can drive recovery in local communities and put the housing
recession behind us once and for all.” Source: RISMedia. Click Here
For The Full Report.
The number of
homes for sale is on the rise, a long-awaited welcome to home buyers who are
finding more selection than last spring and less competition, according to
realtor.com®’s National Housing Trend Report for March of the 146 markets it
tracks. Inventories of for-sale homes on realtor.com® in March increased 9.5
percent higher than year ago levels, according to the report. The median list
price is $199,900 – 5.3 percent higher than in March 2013. The median age of
inventory has also risen – 22.9 percent above year ago figures to a median of
102 days on the market. “These figures suggest that the market is more balanced
than it was in 2013, when a shortfall in available supply led to double-digit
increases in many markets’ housing prices,” according to the realtor.com®
report. “Having more homes on the market may mean more affordable prices for
first-time and move-up buyers. Lack of inventory in 2013 led to intense
competition, creating another barrier to home ownership.” Bidding wars were
frequent last year and caused prices to rise and become out of reach to some
first-time home buyers who could barely save for a down payment, says Steve
Berkowitz, CEO of Move, Inc. “While inventory is still low, the continuing
annual lift in the number of homes on the market that we’ve seen over the first
months of 2014 is an indicator that buying conditions this year may be notably
improved from the frenzied pace of last spring,” says Berkowitz. Source:
realtor.com®
Both parties
have to come together in a transaction, and real estate professionals sometimes
find themselves wedged in the middle of buyer and seller disagreements. Some
sellers may accuse the home buyers of being too pushy with their demands. Here
are several ways that homebuyers have been annoying some sellers recently,
including:
·
Disrespectful house visitors: Some
buyers may not be respectful when touring a home, letting their child run wild
or bounce on the furniture, cranking up the heat and air conditioning, or even
using the restroom.
·
Submitting a long list of defects: Ron
Phipps, principal with Phipps Realty in Warwick, R.I., and a former president
of the National Association of Realtors®, says that buyers are doing themselves
a disservice when submitting an offer with a long list of what’s wrong with the
house. It makes sellers question why the buyers would want this place. Instead,
Phipps recommends a gentler approach:
·
Too many visits: After buyers
have committed to purchase a home, they want to make lots of visits to their
future home, bringing the decorators, architects as well and entire family with
them, says Mike Lubin, associate broker for Brown Harris Stevens in New York.
The sellers may find the constant visits disruptive, however, as they’re busy
packing and possibly doing repairs to meet a deadline.
·
Renegotiation: Buyers may
agree on the price but then repeatedly demand concessions and discounts. The
home inspection can be a culprit. For example, buyers may realize the furnace
has about five good years left and then make a demand for a new furnace or
monetary equivalent. “A realistic buyer knows everything’s not going to be
perfect,” says Matt Laricy, managing partner with Americorp Real Estate in
Chicago. Source: Bankrate.com
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