home prices will continue to remain low

At the Mortgage Bankers Association convention going on in Boston this week, the experts told attendees that the national home prices are going to decline in 2008. Thomas Lund, the executive vice-president at Fannie Mae says that prices will flatten in 2009, before gradually rising in 2010.

Any questions? e-mail me through my website at: www.audreybutlerhomes.com

Goals for a seller

Are you a "for sale by owner"? Here are some tips to help you in selling your home:

1. Don't have a bloated price tag, in hopes of negotiating a better deal.

There is a misconception that a home can still get the same asking price as in 2005. Not in this market. Homes have dropped significantly in price, and buyers will not be interested in seeing a house with a high price.

2. Try to get as many people in to see the house in the first 2 weeks.

If the house is on the market for a very long time at a high price, people will begin to think there is something wrong with it.

3. Realtors can be your friend.

You may have had a bad experience with a Realtor, or just don't want to pay the 6% commission fee. However, in this market, exposure and savvy marketing are key. Also, pricing it compared to the other houses in the neighborhood is important so you can have potential buyers see your home. When there are so many houses on the market, an agent can help you discuss how yours can stand out.

If you had a bad experience, talk to others that like/liked their Realtor. Ask to speak to some of their past clients. An experienced agent will be invaluable in pricing your home correctly and getting it seen in this market.

Check out my website at: www.audreybutlerhomes.com

Let's party like its 1999

The big question out there: Is it time to buy, or not time to buy?

Here are the three latest sources to weigh in on the subject:

Time to buy

Forbes magazine: based on estimated 2008 inventory, sales rates, etc. the authors notes that Orlando has had a 2.4% decline but it is expected to turn around fairly quickly.

Not time to buy

PMI Mortgage Insurance Co.: Orlando is one of 11 metro areas with a greater than 50 percent chance of price declines over 2008 and 2009.

Time to buy

Jerry Jackson at the Orlando Sentinel: Resales of existing homes and condos had it's worse month in September in more than 8 and a half years.

Predicting the lowest point is a lot like predicting the stock market.....Yet remember, any home purchase can be a good investment if it is considered a LONG TERM investment.......

Some things to consider when purchasing.....

It's easy to call a "for sale" sign posted in the yard and ask the price....but that is not the only number you should consider...

1. What are the taxes on the home? Most likely they will go up when you purchase the house.

2. What are the utility costs? Have you figured them into your future budget?

3. How old is the roof and the appliances? You may have to repair or replace them, sooner than you expected if they are old.....

4. What was the price of the comparable sold properties in the neighborhood?

5. What is the home insurance payment going to look like?

These are just some of the questions to ask when making a purchase.....let a realtor give you the special treatment, and get these answers, and many more, for you!

Who do you trust for homebuying advice?

My friend Sara at the office shared the following today:

Los Angeles economist Gary Watts gave a talk to the Orange County California Realtors where the main message was - keep news about housing in perspective. The popular press has called an end to housing for some time, says Watts:

"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000." Business Week, 1969

"The median price of a home today is approaching $50,000 ... housing experts predict price rises in the future won't be that great." National Business, 1977

"The golden age of risk-free run-ups in home prices is gone." Money Magazine, 1985

"A home is where the bad investment is." San Francisco Examiner, 1996

Property is always a great long-term investment, and can benefit some in the short-term. Talk to a qualified Realtor to know what is going on in an area, and to learn what the media doesn't know yet.....

Watch the naysayers when it comes to real estate

The media is saying that the market is slow, and people should wait. Why? Here's the problem with their theory:

1. How do you know how low it will go? (boy, that sounded like Dr. Seuss!) You will only know when the market picks up, and prices are not declining. How long does it take for this information to get to you in the media? At least a month. They wait for statistics from the NAR, and those reports are created monthly. So let's say you want to buy at a low point. By only looking at the media, you will not get in at the lowest point----you will only hear that the market is picking up, and you have missed it.

2. Instead of going to the second source, why not use the source they use? A qualified realtor. Don't ask just one. Interview three of them. We all have statistics, and can provide actual numbers to help you make your decision.

3. Don't just consider the home prices. Look to the interest rates as well. Even if the prices continued to drop and the interest rate rose, you may not achieve a great bargain waiting. This week, Freddie Mac reported that the interest rate for a 30-year fixed-rate mortgage averaged 6.17%, the first decline since early March. At this time, the rate is low because inflation is low in most areas, except in the area of energy.

4. Have you considered your own timing? How long are you planning on staying in an area? Because the market is going back to normal at this time, you don't want to hold the property a short time. You want to keep it for a while so you can see a good return on your investment.

Should I buy now?

Buyers are looking at houses, and they see that they have been on the market for up to a year. They ask, "if I buy now in a slow market and I want to sell in a few years quickly, am I stuck?"

Short answer: Not likely.

Long answer: There is no doubt that home prices are soft, and there are lower interest rates. Yet people in Orlando need to remember that we are coming off a period of very quick appreciation. In 2005 and the beginning of 2006, due to limited supply, home prices skyrocketed. Prices in Orlando had been low, compared to other areas of the country. Investors flocked to invest and make some great money.

Some of the people who put their properties on the market at the beginning of 2006 did not sell them as expected, and the market took a dramatic slow down from August to December of last year. Some property prices have been overinflated, trying to capitalize on what happened in 2005.

As for a home appreciating, the projected existing home prices are expected to increase in the coming years. The stronger gains will most likely happen in 2008. It won't take off like 2005, but appreciation is likely.

Why is the market sluggish now? Because there are a lot of properties on the market. The real estate market is cyclical, and it does not respond quickly to shifts. Because of the time it takes to build a house and/or a person to decide to sell and list their house, the housing market does not bounce back in a matter of days---it can take months.

With the strong economic factors expected in Orlando due to employment, new business, and the average number of people moving here daily, there is no reason to expect a recession, leading to depreciated property rates next year.

Osceola County---great and growing

Forbes has recently reported that Osceola County, Florida is one of the fastest growing counties in the US. It is in the top 25, according to the Census Bureau's analysis between April 1, 2000 and July 1, 2006. This is one of several counties in Florida that is viewed as an alternative to the priciest areas in South Florida.

Some home selling tips

Yes, it's a buyer's market.

Sellers, want to know how to make your house more of a "hit" on the market? In a survey conducted by HouseHunt, Inc., the North Carolina Realtor's Association reported that:

3 out of 4 buyers found "closing costs paid" as an incentive to purchase

A distant second was "free upgrades"

Third: "free property inspection"

Fourth: "free appliances" or "flooring credits"

Study says home prices are stabilizing

The U.F. Bergstrom Center for Real Estate Studies reported on March 9th that single family home prices have leveled out. They conducted a survey of 318 industry experts, including market analysts, attorneys, financial advisors and industry executives. Wayne Archer, Director of the center is quoted as saying: "If you're thinking of buying a house, there's probably not much to be gained by holding out at this point. It doesn't look like prices are going to fall anymore."

Seems that buyers are agreeing with him. In February 2007, there were 2,387 new contracts in Orange and Seminole County. The lowest dip in the last year was December 2006, with 2,012 contracts.

The average mortgage rate for February 2006 was 5.92% for our area, compared to 6.07% for the same time last year.

National home prices take a dramatic drop

The Dow Jones Business News reported that US home prices fell .7% in the fourth quarter, according to the new Case-Shiller price index.

Why is this statistic important? It is the fastest rate that national home prices have fell since 1992. Prices in the metro areas are down 2%, and overall home prices rose only .4% last year.

None of the price gains were in Orlando; The biggest gains were in Seattle, Portland, and Charlotte.