This Month in Real Estate, Jan. ’12

According to a national survey of real estate transactions, it takes about twelve weeks for the typical buyer to find their next home.

Since the vast majority of homebuyers start their search online, the weather becomes less of a factor for sellers marketing their house to those buyers.

NEWS YOU CAN USE

The traditional home buying season starts in the spring. And for good reason.

Families with kids need to be settled in time for the new school year, and houses just plain show better with a lawn of green grass and leaves on the trees.

Sounds good, right? Well, there are some strong arguments in favor of listing your house right now, instead of waiting until spring. Here are just a few …

• Since it takes almost three months for the average buyer to find a home, houses listed right now are in a better position to market to buyers looking to close in the spring.

Cheers to 2012

“Discipline is the bridge between goals and accomplishment.” – Jim Rohn

At the turn of a new year one thing always crosses my mind, “Did I achieve everything I set out to accomplish?” There were some I was able to say yes to and others required in-depth evaluation on what needs to be done differently.

2011 was a great year! There were many valuable relationships made and lessons learned. I began the year as the CEO/Team Leader of the Keller Williams Realty-Folsom office and had the continued support of a loving wife, beautiful daughter and caring family. Starting the new year I have decided to move on with my real estate and business career by getting back to what I love…helping you, your family and friends buy, sell or invest in real estate. The past nine months as Team Leader taught me invaluable leadership skills, business operations and most importantly what I’m capable of. I plan to implement what I have learned to assist you in your real estate goals while coaching fellow real estate and business professionals push beyond their entrepreneurial spirit.

On the home front, my wife and I are expecting our 2nd baby in June. This pregnancy seems to be going by A LOT faster than the first. Is that normal? Ha ha! Our first child, Presley just turned 2 going on 10. She’s growing up so fast. Her vocabulary is better than mine, she’s a non-stop ball of energy and I couldn’t ask for a more loving personality. I am truly a lucky man.

So, I want to wrap up with two things: 1) Make sure to acknowledge your accomplishments of 2011. What did you do this year that you’re extremely proud of? 2) Acknowledge someone else for their accomplishments. I promise you’ll make their day!

I wish you and your loved one’s a very prosperous new year and if you need any assistance in regards to buying, selling or investing in real estate….please think of me!

This Month in Real Estate, Dec. 2011

Now, our Top Story. According to KW research, most sellers put their house on the market because of one or more of the following factors …

• A desire to move so they could upgrade or “move up” to a bigger house or a house in a better neighborhood.

• A need to relocate because of work

• A change in family status, like retirement, children going off to college or those expecting a baby.

KW ranked highest on the annual Training Top 125 from Training magazine among real estate franchises

Last week, Keller Williams Realty received word that we had been named the highest ranked real estate franchise on the annual Training Top 125 from Training Magazine: proof positive that your dedication to top-notch training is second to none.

From Training Magazine:

“Training Top 125 companies realize how vital training is to their success and continue to invest in it, even in trying times,” said Lorri Freifeld, editor-in-chief of Training magazine. “Equally important, though, they maintain a laser focus on tying training to the achievement of corporate strategic goals and making sure they have the results to prove it. Congratulations to all the companies named to the 2011 Training Top 125.”

The Top 125 includes ranking based on myriad benchmarking statistics such as total training budget; percentage of payroll; number of training hours per employee program; goals, evaluation, measurement, and workplace surveys; hours of training per employee annually; and detailed formal programs.
The Top 125 ranking is determined by assessing a range of qualitative and quantitative factors, including financial investment in employee development, the scope of development programs, and how closely such development efforts are linked to business goals and objectives.

Read full article here

Real Estate Is ‘as Affordable as it Gets’

Now is a good time to buy real estate, according to data from Moody’s Analytics. Home affordability has returned to pre-housing bubble levels or even fallen below the average in many U.S. markets.

In fact, housing affordability by the end of September had returned to or fallen below the average reached between 1989-2003 in 47 of the 74 housing markets that Moody Analytics tracked.

In September 2010, the ratio of home prices to annual household income had fallen to 1.6–below the historical average of 1.9 between 1989 and 2003. The ratio peaked in 2005 at 2.3.

“Based on incomes, this is as affordable as it gets,” says Mark Zandi, chief economist at Moody’s Analytics. “If you can get a loan, these are pretty good times to buy.”

Some of the most undervalued markets include Cleveland, Detroit, Las Vegas, Atlanta, and Phoenix.

But those cities also are facing high rates of foreclosures and more borrowers defaulting on their mortgages that could decrease values further in those cities before they start to improve, Zandi says.

In Phoenix, for example, “it’s become cheaper to buy than to rent,” Jon Mirmelli, a real estate investor in Scottsdale, Ariz., who rents out foreclosed homes, told The Wall Street Journal. “But the question is: can you qualify for a loan?”

Source: “Home Affordability Returns to Pre-Bubble Levels,” The Wall Street Journal Online (Feb. 8, 2011)

California home sales, median price rise in December

California home sales rose in December, posting their highest level since May, according to data from C.A.R. The statewide median price increased from November, but was down from a year ago.

“December’s sales increase reflects buyers taking advantage of rock bottom interest rates and improved affordability since the first half of the year, when prices were higher,” said C.A.R. President Beth L. Peerce. “Most of December’s sales opened escrow in October and November. Rates hit their absolute lowest in October but began edging higher in November, prompting buyers to get off the fence,” she said.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 520,680 in December. December’s sales were up 5.9 percent from November’s revised pace of 491,590 but were down 6.8 percent from the revised 558,840 sales pace recorded in December 2009.

Following three consecutive monthly declines, the median price of an existing, single-family detached home sold in California increased 1.7 percent from a revised $296,690 in November but was down 1.6 percent from the revised $306,860 median price recorded for the same period a year ago.

Mortgage Applications Bounce Back

U.S. mortgages were back on the rise last week after a holiday-related slowdown in mid-January, the Mortgage Bankers Association reported.

Mortgage applications gained 11.3 percent in the week ended Jan. 28, according to MBA’s seasonally adjusted index. In the week prior, applications had fallen nearly 13 percent.

Meanwhile, refinancing applications rose 11.7 percent. Loan requests for home purchases also increased 9.5 percent.

Source: “U.S. Mortgage Applications Rose Last Week,” Reuters News (Feb. 2, 2011)

Cities Where It’s Cheaper to Buy Than Rent

Sacramento MapIt’s cheaper to buy a home rather than rent one in 72 percent of the 50 largest U.S. cities, according to Trulia’s rent vs. buy index, which compares the total cost of home ownership to the cost of renting.

“Since the start of the ‘Great Recession,’ many former home owners have flooded the rental market,” Pete Flint, CEO of Trulia, said in a news release about the index. “Following the principles of supply and demand, renting has become relatively more expensive than buying in most markets.”

The index compares the median sales price of homes with the median rent on two bedroom apartments, condos, and townhomes that were listed on Trulia as of Jan. 10, 2011.

Here are the top 10 cities where it’s best to buy than rent, according to the index:
1. Miami
2. Las Vegas
3. Arlington, Texas
4. Mesa, Ariz.
5. Phoenix, Ariz.
6. Jacksonville, Fla.
7. Sacramento, Calif.
8. San Antonio, Texas
9. Fresno, Calif.
10. El Paso, Texas

Source: “Cheaper to Buy Than to Rent in 72% of Largest U.S. Cities,” Inman News (Jan. 24, 2011)

Keller Williams Realty Signs Deal with CitiMortgage to Provide Unique Money-Saving Benefits to Consumers

AUSTIN, TEXAS (January 24, 2010) – Keller Williams Realty, Inc. announced today that it has entered into an agreement with CitiMortgage to create a customized mortgage services program for the company’s offices across the United States. This type of agreement is the first of its kind for Keller Williams Realty and CitiMortgage.

CitiMortgage will now offer Keller Williams Realty clients reduced fees on jumbo loans, and as a part of the SureStart Pre-Approval® program, will not charge a pre-approval fee for Keller Williams agent’s buyers. As a part of CitiMortgage’s commitment to exceptional service, they also offer all Keller Williams borrowers an On Time Closing Guarantee of $1,500.

“Our goal is to ensure that our associates have access to the best resources possible so they can focus on their main priority-their client. We are confident that with five million mortgage customers, CitiMortgage has the experience and expertise to support our Market Centers and associates at the highest level possible,” said Anthony Azar, director of strategic business alliances at Keller Williams Realty.

CitiMortgage will also support Keller Williams Realty in its efforts to help associates win more business. In addition, Market Centers will have the opportunity for an in-house mortgage representative, as well as a dedicated support and fulfillment team for Keller Williams associates and their clients.

“CitiMortgage was looking for a national realtor partner and after reviewing Keller Williams business model and culture, we realized this was a perfect fit for both companies,” said Fred Bolstad, managing director of National Sales for CitiMortgage. “CitiMortgage can provide the strong training and tools their agents need to succeed. Our service-oriented national lending platform can help their customers realize the dream of home ownership in a more efficient and effective way.”

This Month In Real Estate, January 2011

This Month In Real Estate, January 2011