According to two newly released price indexes, home values rose again in May. The Federal Housing Finance Agency’s House Price Index found a 0.4 percent increase from April. And though the improvement was slight, it market two-consecutive months of gains following 10 straight months of decline. Also, the FNC Residential Price Index showed home prices continuing a notable upward trend, climbing 0.8 percent in May. In a press release, FNC said the single-family housing market continues to show signs of price stabilization in line with rising activities in new housing starts and building permits.

Home price indexes tend to be heavily influenced by foreclosure and distressed property sales. Which means the higher the percentage of distressed sales, the more prices will appear to fall. According to CoreLogic’s home price index, however, housing values increased in April by 0.7 percent and, when excluding distressed sales, values were down just 0.5 percent from a year earlier, when the homebuyer tax credit boosted sales. By comparison, prices declined 7.5 percent year-over-year when including distressed sales. Mark Fleming, chief economist for CoreLogic, said the month-over-month increase was the first since government support for home buying was removed and, though it doesn’t yet indicate a long-term trend, it is a positive sign and reason for cautious optimism. More here and here. Contact Jan Delimont, Principal Broker at (541) 290-1850 or visit www.coosbayproperties.com.

Though short-term prospects are muddied by the ups-and-downs of a recovering market, home buyers have an opportunity to capitalize on a long-term outlook that is increasingly positive. Buyers in today’s market benefit from mortgage rates near 50-year lows, high affordability, and the likelihood that decreasing numbers of distressed property sales will relieve pressure on home values and lead to a rebound in prices. Anthony Sanders, a real-estate finance professor at George Mason University, told the Wall Street Journal that, though there may not be rapid growth in the short-term, there are a number of positive indicators that will fuel a rebound, including demographics, rising rent, and improvement to the general economy and job market, which make now a good time to buy. More here.  Contact Jan Delimont, Principal Broker, at (541) 290-1850.  www.coosbayproperties.com

Buying a home is now cheaper than renting in 4 out of 5 major U.S. cities. And, along with affordable home prices, low mortgage rates, and building economic confidence, the increase in rent makes market conditions ripe for prospective house hunters this spring and summer. Ken Shuman, of Trulia, said people looking to buy a house this summer should be encouraged by improvements in the market and feel optimistic about their chances of finding an affordable home, much more so than in previous years. Conditions are particularly good for buyers looking to stay in their home for at least five years. Because prices are expected to appreciate slowly, industry experts say the market is best for buyers looking to plant roots or find a family home.

Chances are that your Coos Bay OR home and your retirement are closely linked to your financial future. Retirement accounts have taken a big hit through the course of the recession and many people are considering tapping into the equity of their homes. Tapping into home equity has become a less frequent option for many home owners over the past couple of years, due to both the lack of equity in homes today and tighter lending principles.

 

For those who need money for the funding of retirement or other issues it is safer to borrow equity in a home today than it was four years ago, in theory. Those who borrowed four years ago are more likely to be underwater today, especially when adding up a primary mortgage and a HELOC together.

 

Today’s home owner is most likely tapping equity at or near the bottom of the market, so if they have equity today there should be equity in the future, as home values rise again. That being said, borrowing equity is risky and should not be done without consulting an accountant or financial adviser.

 

Is the money that you have tied up in your home your best asset for future finances? If so, perhaps selling your Coos Bay home and buying a smaller, less expensive home would make financial sense. This would enable home ownership and free up some capital to invest at the same time. There are options for home owners facing retirement age, education being the key tool for success.

 

For the best information on how to use your Coos Bay home to fund your future, contact Jan Delimont, a Coos Bay Realtor with a MBA, at 541-290-1850 or by email today!

 

Click here to read an article from Market Watch titled “Tapping Home Equity in Retirement”.

Selling real estate can be an arduous process, but it is important to remember to leave a home clean for the closing. Today many homes are languishing on the market, offering up long periods of time that a seller has to keep a home tidy for showings and open houses. Cleaning may be the last thing on a seller’s mind come closing day.

Most buyers will clean a home, possibly paint a home, and maybe even rip carpet and flooring up to replace, but it is still a positive move to leave your home in the best possible condition for the new owner.

What should a seller do? Remove all personal effects from the home, clean the floors, clean the appliances inside and out, clean the bathrooms, wipe down walls, wipe cabinet fronts and interior shelving and drawers, and check attic, basement, and garage spaces as well.

Your real estate contract most likely has language in it that states what condition your home should be in when ownership changes hands. If you don’t know, check with your REALTOR. Most importantly, try to think about what condition you would appreciate finding your home in on move-in day.

Contact Jan Delimont, Principal Broker, (541) 290-1850 or by email.

Fannie Mae’s latest National Housing Survey found 78 percent of respondents believe housing prices will hold steady or increase this year, up from 73 percent in January 2010. The survey, which polled homeowners and renters between October and December of last year, is meant to assess Americans’ confidence in homeownership as an investment, the current state of their household finances, and views of the housing market and general economy. Also in the survey, 65 percent of respondents believe now is a good time to buy a house, virtually unchanged from a year ago. Doug Duncan, vice president and chief economist at Fannie Mae, said most respondents continue to lack confidence in the strength of the overall economic recovery but there are encouraging signs in the positive attitude toward homeownership among younger Americans and the belief that housing prices will remain stable this year. More here, here, and here.

The National Association of Realtors’ Pending Home Sales Index declined 2.8 percent in January based on contracts signed during the month. Still, the index remains 20.6 percent above its cyclical low last June and just 1.5 percent below January 2010 when the homebuyer tax credit was in place. Lawrence Yun, NAR’s chief economist, said the housing market is healing with sales fluctuating at times. He said the recovery shouldn’t be expected to take a straight upward path and believes it will zig-zag at times. More here and here.

Cozy warm Sunroom/Art room for her, with heated tile floor. Shop, Rv parking, 3 car garage for his toys. Edge of town privacy on 3.5 acres. Lovely fenced garden with water feature.

Sales of new single-family homes fell 12.6 percent in January from December’s rate, according to estimates from the U.S. Census Bureau and the Department of Housing and Urban Development. New home sales surged 17.5 percent in December, in part because of an expiring state tax credit in California. Sales in the west fell 36.5 percent in January after rising 62.5 percent the month before. The median sales price for a new house was $230,600; the average sales price was $260,300. There was a 7.9-month supply of new homes for sale at the end of January. More here and here.