Existing Home Sales Rose in August
Existing-home sales rose in August following a big correction in July, according to the National Association of Realtors®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 4.13 million in August from an upwardly revised 3.84 million in July, but remain 19.0 percent below the 5.10 million-unit pace in August 2009.
Lawrence Yun, NAR chief economist, said home sales still remain subpar. “The housing market is trying to recover on its own power without the home buyer tax credit. Despite very attractive affordability conditions, a housing market recovery will likely be slow and gradual because of lingering economic uncertainty,” Yun said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.43 percent in August from 4.56 percent in July; the rate was 5.19 percent in August 2009.
Yun added, “Home values have shown stabilizing trends over the past year, even as the economy shed millions of jobs, because of the home buyer tax credit stimulus. Now that the economy is adding some jobs, the housing market needs to steadily improve and eventually stand on its own.”
The national median existing-home price for all housing types was $178,600 in August, up 0.8 percent from a year ago. Distressed homes3 rose to 34 percent of sales in August from 32 percent in July; they were 31 percent in August 2009.
Total housing inventory at the end of August slipped 0.6 percent to 3.98 million existing homes available for sale, which represents an 11.6-month supply at the current sales pace, down from a 12.5-month supply in July.
Existing-home sales rose in August in the single-family category by 7.4 percent to a seasonally adjusted annual rate of 3.62 million in August from a level of 3.37 million in July, but are 19.2 percent lower than the 4.48 million level in August 2009. The median existing single-family home price was $179,300 in August, up 1.2 percent from a year ago.
Single-family median existing-home prices were higher in 10 out of 19 metropolitan statistical areas reported in August from a year ago (the price in one of 20 tracked markets was not available). Existing single-family home sales were down in all 20 metro areas from August 2009.
Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 680,000 in August but are 24.4 percent below August 2009. The median price in the Northeast was $260,300, up 7.6 percent from a year ago.
Existing-home sales in the Midwest increased 5.0 percent in August to a pace of 840,000 but are 26.3 percent below a year ago. The median price in the Midwest was $149,600, up 0.4 percent from August 2009.
In the South, existing-home sales rose 5.2 percent to an annual level of 1.62 million in August but are 13.4 percent below August 2009. The median price in the South was $155,000, down 1.5 percent from a year ago.
Existing-home sales in the West jumped 13.8 percent to an annual pace of 990,000 in August but are 16.1 percent lower than August 2009. The median price in the West was $214,700, which is 2.5 percent below a year ago.
Hopefully, real estate is on the road to recovery as evidenced by the data that shows existing home sales rose in August.
Condo Staging
Condo staging is the practice of decorating in such a way that the condo is as attractive as possible to prospective buyers, but Realtors and their clients selling condos should be careful not to overdo it. Industry experts call it “over staging.”
Some of the things commonly done as a part of condo staging including removing clutter from floors and tables, as well as putting family pictures out of sight and taking away extra pieces of furniture. These things are done to open up the space and make it easier for visiting prospective buyers coming to a showing or open house to better visualize themselves living in the condo.
But as the old saying goes, “everything is good in moderation.” Don’t go overboard taking too many things away. You run the risk of giving your condo a cold appearance, devoid of character. Condo staging is a delicate balance, because going overboard the other way is bad also. For instance, do not leave put out place settings or other decorations that could be recognized as either contrived props, or just clutter. Anything too big or unusual that would take away the attention from the house itself is also discouraged. “Over staging” is the term used in the industry for these over-the-top practices.l
If real or artificial flowers are used to brighten up rooms, owners are cautioned to make sure the flowers are correct for the time of year. So, for instance, tulips can be used in the spring, but replaced by flowers that bloom later in the year when summer comes around. Otherwise, a casual observer might get the impression that the condo was on the market for a long time, since the flowers were in bloom. In the case of real flowers, make sure they are not wilted. There is definitely an art to condo staging.
Whether or not to upgrade a condo being sold is a related issue. Some people feel obligated to add all the newest appliances and popular touches, such as granite countertops, in order to sell their homes. But “condo stagers,” as the industry experts are known, say that the homeowner might not recoup their money n the final selling price, so it wouldn’t be worth going to that expense in most markets. But perhaps in an area with luxury condos, where all the sellers who have those upgrades, the cost might be worth it.
Holiday decorations can also become an issue regarding condo staging. The industry experts say that while a Christmas tree and perhaps a few other decorations are appropriate for homeowners who celebrate the holiday, there is no need to decorate the whole house in a holiday theme.
Home Ownership Rate
The home ownership rate fell to a level not seen since 1999 in the second quarter, according to a report from the U.S. Census Bureau and the U.S. Department of Commerce. The rate had previously fallen to 2000 levels in the first quarter.
The rate, 66.9 percent, was about 0.2 percentage points lower than the first quarter's rate of 67.1 percent, and about 0.5 percentage points lower than 2009's second-quarter rate, 67.4 percent, the report said. Homeownership peaked in 2004, when it was at 69.2 percent for both the second and fourth quarters.
Rental and homeowner vacancy rates -- 10.6 percent for rentals and 2.5 percent for homeowner housing -- remained essentially flat compared to the first quarter and the second quarter of 2009.
The former is the highest second-quarter vacancy rate since the agency began keeping records in 1956. The second-quarter peak for homeowner vacancy was in 2008, when it was 2.8 percent. The overall vacancy rate nationwide in the second quarter was 14.4 percent.
Regionally, the West and the South saw the biggest quarter-over-quarter declines in the home ownership rate, to 61.4 percent from 62.5 percent in the West, and to 69.1 percent from 70 percent in the South. The Midwest had the highest rate and was the only region to see its rate increase in the past year: to 70.8 percent from 70.5 percent. The rate in the Northeast stayed roughly level at 64.2 percent.
Approximately 85.6 percent of the real estate housing units in the United States in the second quarter 2010 were occupied and 14.4 percent were vacant. Owner-occupied housing units made up 57.3 percent of total housing units, while renter-occupied units made up 28.3 percent of the inventory in the second quarter 2010. Vacant year-round units comprised 11.0 percent of total housing units, while 3.4 percent were for seasonal use. Approximately 3.4 percent of the total units were for rent, 1.5 percent were for sale only, and 0.7 percent were rented or sold but not yet occupied. Vacant units that were held off market comprised 5.4 percent of the total housing stock. Of these units, 1.6 percent were for occasional use only, 0.9 percent were temporarily occupied by usual residence elsewhere (URE), and 2.9 percent were vacant for a variety of other reasons.
For the second quarter 2010, the home ownership rates were highest in the Midwest (70.8 percent) and lowest in the West (61.4 percent). The homeownership rates in the South and West were lower than a year ago, while rates in the Northeast and Midwest were not statistically different from their corresponding second quarter 2009 rates.
For the second quarter 2010, the homeownership rates were highest for those householders ages 65 years and over (80.4 percent) and lowest for the under 35 years of age group (39.0 percent). The rates for householders 35 to 44, 45 to 54, and 55 to 64 years old were lower than their respective rates a year ago, while those householders less than 35 years old and those 65 years and over showed no significant change from their corresponding rates in the second quarter 2009. REO properties were not included in this report.
What to do After the Contract is Signed
The Contract is signed, you have your dream home in the bag and you can finally sit back and relax right? Unfortunately this is not the case. When you sign a contract to purchase a property, there are some important steps you need to know about, that come after signing the contract. You want to make sure that in the time between signing the contract and closing on the home, you have had an attorney review, obtained a loan commitment, handed in earnest money, had the property inspected and you have all your financed in order before the closing.
The first step you always want to take is making sure that you have an attorney review after the contract is signed. Most standard Real Estate contracts include an attorney review period of 5 days. It is during this time that your attorney will either accept the contract as is, or will make some modifications that will ultimately benefit and/or protect you. During this period of time, it is still considered and offer until the attorney review period has ended. If your attorney makes some modifications that the seller does not accept, then the seller has the right to back out of the deal. Every homebuyer should make sure an attorney approves the contract. This will save you time and money in the end.
The next thing you want to make sure you do after you sign the contract is secure your financing. You want to make sure that you qualify for the purchase. It is one thing to be pre-approved, but you need to make sure that you get the loan commitment from the lender. This letter should lock in your rate for a period of time and secure your loan and its terms. Again, most real estate contracts include a financing contingency in the contract that states that the person has to be qualified to purchase. On the flip side, if the buyer does not get approved within a specified period of time, then they have a right to opt out of the contract.
One of the most important steps you need to take before you close is to get a home inspection. The last thing you want is to purchase the home of your dreams just to find out that your purchase was a money pit. The inspector will explain everything that is wrong with the home and everything that needs fixing. This contingency could sway the contract one way or the other. Sometimes the seller will offer cash to the buyer to fix the issues, but sometimes the issues are so large that they buyer has to back out of the deal.
Once the contingencies are met and before the due date, you want to make sure to get a certified check or money order and send in the earnest money to the seller.
Make sure to always follow up with the lender, attorney and sellers’ real estate agent or your own real estate agent, to make sure that things are on track for the close. After you close and the keys are handed over, you can finally sit back and relax and enjoy your dream home.
Miami Condos
If you are looking for a low-maintenance lifestyle, maybe in a popular downtown location or near the beach there is no better place to look than Miami Condos. Living in a condo in Miami can offer many benefits that you will not find in a home in the suburbs. They can offer more plentiful amenities from beach access, pools, golf courses, lawn maintenance and much more. All of these things offer a different lifestyle that many find appealing but there are a few things you might want to consider.
- Condos usually have an association that has guidelines, some may be casual but others can be strictly enforced. Get a copy of the rules and guidelines and make sure they will fit in with your lifestyle. Being at odds with the association and possibly your neighbors can make home a much less appealing place to live.
- Many Miami condos come with a variety of benefits but also a cost. Most associations have fees that cover many of the amenities which convinced you to entertain the idea of condo living in the first place. Some associations charge a small maintenance fee to cover the basics but depending on the extravagance of what are offered in your complex they can run much higher. Associations are anxious to provide you with their list of fees, what they cover, and what is expected of you as an owner. One last thing to consider regarding fees is to find out if the association is planning on any improvements or upgrades that can raise costs.
- Before you jump at that Miami condo find out about the community you are buying into. Does it fit the lifestyle you want? What is the financial status of the condo association? How many units are vacant? How many units are rented? If possible, talk to some of the owners and find out if they are happy living there, how well the complex is being run, or if they have had past problems and how those problems were resolved. You are buying into an entire community and it is important that you know all you can before making a decision.
There are many Miami condos in all types of locales from downtown Miami to Coconut Grove to Key Biscayne offering something no matter your taste or budget. No matter if you are retiring to south Florida to sit on the beach or find a vacation property there can be no more exciting location than Miami.
Closing Procedures
A sale is not a sale until it is closed, and in order for the closing to go smoothly, all parties need to be aware as to what the closing procedures are and what is to be expected of the clients before and at the closing. It is important that all parties are prepared for what to bring and how the closing will go. There are certain responsibilities of the buyer and other responsibilities of the seller.
Before the closing the Buyer needs to make share that he/she gets the correct numbers from the attorney on what amount of money should be brought to closing. The buyer needs to know this amount because a certified check needs to be provided at the time of closing. The buyer should get the amount first, then get a certified check. It is always a good idea to bring a checkbook in case there are any variations. It is important for the buyer to bring his/her drivers’ license to the closing for verification purposes as well. Always make sure that you confirm the time and date of the closing.
At the closing, the lender will typically deliver a package of documents to the title company. This package includes the note and mortgage and also disclosures and agreements. The buyer’s attorney needs to walk the buyer through all of the documents and explain what they mean.
Another part of the closing procedure is that the seller needs to come to the closing with a package of documents. This package will include the deed to the property. The buyer’s attorney will review the documents to make sure that the buyer is purchasing and the seller is conveying the property correctly, that there are no liens on the property and that the title is clear. This usually entails a review of the documents and a survey provided by the buyer.
At the actual closing, the closing agent conducts the settlement meeting and reviews to make sure that all the documents are signed and recorded and that the closing fees and escrow payments are paid and properly distributed. Typically in a closing, the buyer pays for fees charged for obtaining a mortgage, inspection fees, homeowners’ insurance, transfer taxes, title insurance and escrow fees. The seller typically pays the loan payoff fees, the real estate commissions, title insurance, termite repairs for the property and all or part of the transfer taxes and escrow fees.
All buyers and sellers should be aware of the closing procedures so that the transaction closes and both parties walk away with a win-win situation.
