Woman stabbed to death: A woman was stabbed to death in a Fort Worth office on Monday afternoon, and the suspect thought to be involved is on the loose, according to police.
Sad, I feel for the woman's family.
#LizBobeck
Tuesday, December 31, 2013
Saturday, December 28, 2013
Why Zillow, Trulia and other online Real Estate Estimators are dangerous
I am still flabbergasted as to why the President of the United States of America would rather fly to California to meet with the President of Zillow, rather than to speak with the Oracle of Omaha on the status of housing in the US of A. It makes no sense to me that he thinks an online company that builds NOTHING is more important than a man who owns many businesses who employ thousands who build products and solutions for our great country. Especially when Zillow lies in its data presented.
Case in point, last Sunday, one of my new clients was interested in a house in Jacksonville Beach. It was a foreclosure that was listed by the foreclosure division of our offices, and the sign was still in the yard. The REO agents rarely return calls, just they way they "roll", so my client gets on "Zillow" and searches for information on the property. He finds it, Zillow shows it is still available and for sale. He asks me if we can go look at it.
I will give Zillow credit, often times they include the MLS number, which makes it easier to search on a 6 digit number than a long address which may or may not be in MLS correctly, again REO properties are all over the place in correctness. So I do the search on the property, only to find that the property was sold 3 weeks before and that the buyer has been lazy to remove the sign. Zillow, Trulia and other online sites that do not have direct access to listings and their data are doing harm to the Real Estate Profession.
With less than 8000 homes on the market in Jacksonville, we are under 5 months of supply of homes and an average days on market of only 79 days. The point here is that you cannot afford to look at crummy sites that are not current with data. If you are in the market for a house, work with your agent, they can send you a link to all the properties that come on the Multiple Listing Service, for your area just as soon as they are added. No cost, no fuss, and all in real-time. IF you must search, use the Realtor.com site, it is the best place for up to date data.
Zillow, Trulia and the others will have a day of reckoning, it may not be tomorrow, but their day is coming. They are not needed in the Real Estate business, their marketing is sloppy and ultimately hurts those who come to rely on their "data".
#LizBobeck
Case in point, last Sunday, one of my new clients was interested in a house in Jacksonville Beach. It was a foreclosure that was listed by the foreclosure division of our offices, and the sign was still in the yard. The REO agents rarely return calls, just they way they "roll", so my client gets on "Zillow" and searches for information on the property. He finds it, Zillow shows it is still available and for sale. He asks me if we can go look at it.
I will give Zillow credit, often times they include the MLS number, which makes it easier to search on a 6 digit number than a long address which may or may not be in MLS correctly, again REO properties are all over the place in correctness. So I do the search on the property, only to find that the property was sold 3 weeks before and that the buyer has been lazy to remove the sign. Zillow, Trulia and other online sites that do not have direct access to listings and their data are doing harm to the Real Estate Profession.
Zillow, Trulia and the others will have a day of reckoning, it may not be tomorrow, but their day is coming. They are not needed in the Real Estate business, their marketing is sloppy and ultimately hurts those who come to rely on their "data".
#LizBobeck
Tuesday, December 24, 2013
Merry Christmas to all!
I have had a wonderful 2013 and as we ready ourselves for 2014, we have some holidays that bring us together with our families. Christmas tomorrow, New Years Eve in a week, I want to wish everyone a happy holiday season and encourage you to do something with or for your fellow man this week. Give someone some change, a dollar, put some extra in the kettle for the people ringing the bell, or volunteer to ring the bell, give food to a church, help out a family, do something to help your fellow mankind, in this time of sharing, and maybe, just maybe, we can continue with this for next year. Christmas is not just one day, it can be an everyday thing!
Happy Holidays!
#LizBobeck
Happy Holidays!
#LizBobeck
Saturday, December 21, 2013
First Coast (Jacksonville, FL ) state (Florida) unemployment lowest since 2008
From The Florida Times Union -
By Drew Dixon Fri, Dec 20, 2013 @ 3:35 pm
The First Coast unemployment rate has fallen below 6 percent for the first time since 2008, according to a University of North Florida economist. Paul Mason, economist at UNF, reports the market survey area of Duval, St. Johns, Nassau, Baker and Clay counties saw a sharp drop in the jobless rate in November. The figure fell to 5.86 percent last month, down from the 6.3 percent jobless figure in October.
“It’s excellent news,” Mason said Friday. “I wouldn’t consider that full employment. But there are some at the national level that would consider that full employment — that if the national level got down to that would consider that full employment. … I would say we’re still 1 percent to a half percent from full employment.”
The Duval County jobless rate is still higher than the rest of the First Coast coming in at a 6.55 percent unemployment figure for November. That’s down from the 6.66 percent unemployment rate in October.
The total First Coast jobless figure is lower than the Florida unemployment rate for November, which is 6.4 percent, down from 6.7 percent in October. It’s the lowest state unemployment rate since July 2008.
All the local and state figures are below the national 7 percent unemployment rate, according to the U.S. Bureau of Labor Statistics.
Gov. Rick Scott said the news was good timing for North Floridians during the holiday season.
“The addition of more than 11,000 new jobs in Jacksonville means more individuals will be able to provide for their families during the holidays. While this is great news, we’ll continue working hard to grow jobs for families in Northeast Florida,” Scott said in a news release.
Mason said there was a reduction in the labor force on the First Coast in November. The number of workers fell by 180 people, dropping from 696,965 in October to 696,785 in November.
But the number of unemployed people on the First Coast dropped by 1,556, from 42,271 in October to 40,715 in November. The number of people employed increased from 654,694 in October to 656,070 in November.
Other observations on the First Coast economy from Mason include a consumer price index that increased by .46, going from 114.60 in October to 115.07 in November.
There were some increases in inflation, particularly in “food away from home,” meaning restaurant prices. Those prices jumped by about 7 percent in November.
Mason said that means more people are dining out and restaurateurs are confident in increasing prices.
Mason said the leading economic indicator and consumer price trends have been generally positive for the past six months and they point to an upbeat economic prognostication for 2014.
“It’s supposed to predict two or three months ahead. So, the fact that it’s been up five months in a row suggests that the first quarter and into the second quarter of 2014 should be positive, it should be a growth period,” Mason said.
This news should be good for every industry related to working with people. Job growth means wage growth and should allow more renters to move back into housing. Just in time for the holidays! #Jacksonville
#LizBobeck
By Drew Dixon Fri, Dec 20, 2013 @ 3:35 pm
“It’s excellent news,” Mason said Friday. “I wouldn’t consider that full employment. But there are some at the national level that would consider that full employment — that if the national level got down to that would consider that full employment. … I would say we’re still 1 percent to a half percent from full employment.”
The Duval County jobless rate is still higher than the rest of the First Coast coming in at a 6.55 percent unemployment figure for November. That’s down from the 6.66 percent unemployment rate in October.
The total First Coast jobless figure is lower than the Florida unemployment rate for November, which is 6.4 percent, down from 6.7 percent in October. It’s the lowest state unemployment rate since July 2008.
All the local and state figures are below the national 7 percent unemployment rate, according to the U.S. Bureau of Labor Statistics.
Gov. Rick Scott said the news was good timing for North Floridians during the holiday season.
“The addition of more than 11,000 new jobs in Jacksonville means more individuals will be able to provide for their families during the holidays. While this is great news, we’ll continue working hard to grow jobs for families in Northeast Florida,” Scott said in a news release.
Mason said there was a reduction in the labor force on the First Coast in November. The number of workers fell by 180 people, dropping from 696,965 in October to 696,785 in November.
But the number of unemployed people on the First Coast dropped by 1,556, from 42,271 in October to 40,715 in November. The number of people employed increased from 654,694 in October to 656,070 in November.
Other observations on the First Coast economy from Mason include a consumer price index that increased by .46, going from 114.60 in October to 115.07 in November.
There were some increases in inflation, particularly in “food away from home,” meaning restaurant prices. Those prices jumped by about 7 percent in November.
Mason said that means more people are dining out and restaurateurs are confident in increasing prices.
Mason said the leading economic indicator and consumer price trends have been generally positive for the past six months and they point to an upbeat economic prognostication for 2014.
“It’s supposed to predict two or three months ahead. So, the fact that it’s been up five months in a row suggests that the first quarter and into the second quarter of 2014 should be positive, it should be a growth period,” Mason said.
This news should be good for every industry related to working with people. Job growth means wage growth and should allow more renters to move back into housing. Just in time for the holidays! #Jacksonville
#LizBobeck
Friday, December 20, 2013
Holidays are for giving....
Not the normal post about Real Estate, but really the holiday season is about more than just Real Estate. My husband, +Jack Bobeck and I have three properties that we provide families homes in with #leasepurchase options to buy. We have seven other #rental properties with partners, but our issue today is with one of the lease purchase families.
A few weeks ago, one of the owners of our house learned he had a tumor growing in his small intestine. He had been feeling gassy all day and was taking Tums and Rolaids and they were not doing the job, then he collapsed at his place of work and had to be rushed to the hospital. Scary for him and his wife, the doctors did not know what was going on with him. The unknown is the worst part.
So he has been in the hospital for a few weeks, and they sent the tumor out for examination, it came back benign, some good news finally. So he is still in the hospital and he needs to be able to eat on his own, before the doctors will allow him to return home, then he is on bed rest for three weeks (I hope he stays there and does not try to get back out). Meanwhile, he has not been working for several weeks.
He has a 3 year old son and 6 month old daughter and a new wife at home, but he is a great guy and he has helped me on jobs as well. So my husband and I are going to buy him and the family food for the holiday, get a few presents for the kids and really try and bring some joy to the house. He is a good owner of the house and we are becoming friends.
Christmas is all about giving back, I wish we all had that feeling 365 days a year. Try giving back some the rest of 2013.
#LizBobeck
A few weeks ago, one of the owners of our house learned he had a tumor growing in his small intestine. He had been feeling gassy all day and was taking Tums and Rolaids and they were not doing the job, then he collapsed at his place of work and had to be rushed to the hospital. Scary for him and his wife, the doctors did not know what was going on with him. The unknown is the worst part.
So he has been in the hospital for a few weeks, and they sent the tumor out for examination, it came back benign, some good news finally. So he is still in the hospital and he needs to be able to eat on his own, before the doctors will allow him to return home, then he is on bed rest for three weeks (I hope he stays there and does not try to get back out). Meanwhile, he has not been working for several weeks.
He has a 3 year old son and 6 month old daughter and a new wife at home, but he is a great guy and he has helped me on jobs as well. So my husband and I are going to buy him and the family food for the holiday, get a few presents for the kids and really try and bring some joy to the house. He is a good owner of the house and we are becoming friends.
Christmas is all about giving back, I wish we all had that feeling 365 days a year. Try giving back some the rest of 2013.
#LizBobeck
Wednesday, December 18, 2013
Buyer and Seller Questions
Buyers and sellers have questions, yes they do! The largest single transaction most people will perform in their lifetime is bound to have many questions. My husband runs a dog grooming business and people have no problem spending $100 to bath, groom and fluff their dog every few weeks, but they cannot seem to pull the trigger on a purchase or sale of a $100,000 home. It is still a basic transaction, should we reverse the numbers so they can grasp that its not a colossal deal? Anyway, enjoy these, I did:
QUESTIONS, QUESTIONS, QUESTIONS. Every buyer and seller has them – in fact A LOT of them. Curiosity is at an all time high during the home search as buyers and sellers try to size up each other and their motivations. What are some of the most popular questions buyers and sellers ask during the home buying and selling process and WHY do they ask them? Read on so you can be prepared no matter what side of the “For Sale” sign you may be on.
BUYER QUESTIONS:
This question is used to assess the seller’s motivation or to try to find out if something is “wrong” as to why the property is still on the market. Goodness knows that no one wants to stay in the house forever, so if they sell, there MUST be something wrong....The longer the marketing time usually means it lags as a result of price in relation to its condition and competition or the neighborhood may be overlooked by buyers.
Every buyer wants to know this and is another question used to try to determine motivation. However, as a buyer you can’t assume that the seller’s reason for selling is going to make them any more motivated to sell the home for less than market value.
A good Realtor will have this information from property tax rolls, and from Realtor resources. Buyers always want to figure out how much equity sellers have in the property and how much room there may be on the price or asking for concessions like closing costs or repairs.
Buyers are always curious – especially on furnished homes that may not look lived in. They love trying to figure out if the property is just sitting, potentially costing the seller money every month or if it is actually being used.
An array of maintenance, home improvement and cost questions: – how old is the roof, the air conditioning system , can a pool be added, how much is insurance on the home, how much are utility bills, etc.
Answers to these questions may affect how much a buyer is willing to pay for the property or whether they will make an offer at all. They are trying to figure out if they are going to be taking on the money pit and can they do what they want to as far as possible future expansion to the property, even if they have no intention of doing so in the future.
SELLER QUESTIONS:
What type of financing are they doing – want to know so they can anticipate with handling an offer and how that could affect their obligations in the transaction with respect to any required repairs, appraisal, asking for closing costs, etc.
Do they have a house to sell first - the proverbial question – sellers always want to know the answer to this one. That may be less of an issue today than a few years ago when the market had experienced a slow down. So lots of good questions on both sides of the transaction. If you experienced some of these with a transaction, sorry we are late, but if you are looking and plan to buy or sell next year, keep these in mind for your transaction!
#LizBobeck
QUESTIONS, QUESTIONS, QUESTIONS. Every buyer and seller has them – in fact A LOT of them. Curiosity is at an all time high during the home search as buyers and sellers try to size up each other and their motivations. What are some of the most popular questions buyers and sellers ask during the home buying and selling process and WHY do they ask them? Read on so you can be prepared no matter what side of the “For Sale” sign you may be on.
BUYER QUESTIONS:
- How long has the property been on the market?
This question is used to assess the seller’s motivation or to try to find out if something is “wrong” as to why the property is still on the market. Goodness knows that no one wants to stay in the house forever, so if they sell, there MUST be something wrong....The longer the marketing time usually means it lags as a result of price in relation to its condition and competition or the neighborhood may be overlooked by buyers.
- Why is the seller selling?
Every buyer wants to know this and is another question used to try to determine motivation. However, as a buyer you can’t assume that the seller’s reason for selling is going to make them any more motivated to sell the home for less than market value.
- How long have they owned it? How much did they pay for it? What do they owe?
A good Realtor will have this information from property tax rolls, and from Realtor resources. Buyers always want to figure out how much equity sellers have in the property and how much room there may be on the price or asking for concessions like closing costs or repairs.
- Is someone living here now?
Buyers are always curious – especially on furnished homes that may not look lived in. They love trying to figure out if the property is just sitting, potentially costing the seller money every month or if it is actually being used.
An array of maintenance, home improvement and cost questions: – how old is the roof, the air conditioning system , can a pool be added, how much is insurance on the home, how much are utility bills, etc.
Answers to these questions may affect how much a buyer is willing to pay for the property or whether they will make an offer at all. They are trying to figure out if they are going to be taking on the money pit and can they do what they want to as far as possible future expansion to the property, even if they have no intention of doing so in the future.
SELLER QUESTIONS:
What type of financing are they doing – want to know so they can anticipate with handling an offer and how that could affect their obligations in the transaction with respect to any required repairs, appraisal, asking for closing costs, etc.
- How much of a down payment will they be putting? – Sellers want to assess the buyer’s financial viability i.e., how much skin in the game will they have with this?
- What other properties are they considering? Want to know what their competition is and perhaps where they stand in relation to it.
- Are they local or from out of the area? This may give an idea as to their timeframe – relocation buyers typically make decisions in a shorter timeframe
- What is their timeframe – when will they be deciding? Sellers get nervous once a buyer returns multiple times for a showing and are anticipating a decision.
Do they have a house to sell first - the proverbial question – sellers always want to know the answer to this one. That may be less of an issue today than a few years ago when the market had experienced a slow down. So lots of good questions on both sides of the transaction. If you experienced some of these with a transaction, sorry we are late, but if you are looking and plan to buy or sell next year, keep these in mind for your transaction!
#LizBobeck
Tuesday, December 17, 2013
Fewer homes for sale in Northeast Florida
Fewer homes for sale in Northeast Florida
There are fewer homes for sale in Northeast Florida than there have been at any time since late 2005, and less than half as many as there were since late 2007. There are 4.9 months supply of inventory, down from 6.7 months a year ago. Six months supply is considered a balanced market, but that local supply was more than 17 months in 2008.
While Northeast Florida Association of Realtors’ monthly report shows some continued improvement in the housing market, there are mixed signals as well.
The number of homes selling has dropped since summer, but that’s common. And while the number of pending sales where contracts have been signed is still well above last year’s pace, the number of closed sales in November was lower than November 2012.
That’s the first year-to-year drop in several years.
And while prices have also dropped since summer, homes are selling faster and for more than they were a year ago.
Carol Zingone, broker with Prudential Network Realty and president of NEFAR, said that summer, with kids out of school, is always going to be the peak of the season for sales and prices. But with the fewer number of homes for sale, particularly distressed homes, she’s surprised prices were higher in November.
“Perhaps people are being more flexible in what they’re selling their property for,” she said. “I’ve got people who are already in Seattle, so they had to make a concession on the selling price. They have to move on.”
Zingone said the market over the next few months is likely to be determined by mortgage rates.
“People get very antsy when they see the slightest increase,” she said, “which is funny considering what they used to be: Double digits and people were still buying homes.”
She said she was told by one lender that, starting Jan. 1, there will be a maximum borrower’s debt-to-income ratio of 43 percent. In other words, on an income of $50,000 a year, a borrower’s debt can’t exceed $21,500.
“People used to slide through with 46, 47, 48 percent,” she said. “That could really have an effect on some of the marginal buyers.”
Some key numbers from NEFAR’s report for November:
Pending sales — 1,813, down from 1,965 in October, up from 1,580 in November 2012.
Closed sales — 1,531, down from 1,793 in October and 1,561 in November 2012.
Days on the market until sale — 79, down from 80 in October and 106 in November 2012.
Median sales price — $154,000, down from $155,325 in October, up from $129,900 in November 2012.
Average sales price — $189,141, down from $197,066 in October, up from $176,561 in November 2012.
Percent of original list price received — 93.2 percent, down from 93.7 percent in October, up from 91.5 percent in November 2012.
Inventory of homes for sale — 9,203, down from 9,626 in October and 10,302 in November 2012.
The number of homes sold in November and the median prices for areas on the First Coast:
■ Ponte Vedra Beach North, 18, $471,000
■ St. Augustine east of U.S. 1, 4, $391,650
■ Ponte Vedra/Vilano/Palm Valley/Nocatee, 81, $325,000
■ Jacksonville Beach, 45, $288,500
■ Neptune Beach, 11, $270,000
■ Atlantic Beach, 15, $260,000
■ NE St. Johns County, 13, $257,500
■ NW St. Johns County, 114, $244,500
■ Green Cove Springs, 13, $240,000
■ Riverside/Ortega/Avondale, 29, $232,000
■ Fleming Island, 31, $208,000
■ SW St. Johns County, 9, $200,105
■ SE St. Johns County, 56, $182,996
■ Southside/Mandarin, 177, $171,000
■ Nassau County, 42, $169,450
■ Jacksonville North, 78, $156,700
■ Orange Park, 99, $140,000
■ Southside, 216, $139,900
■ Middleburg, 56, $139,325
■ Baker County, 6, $130,000
■ Marietta/Whitehouse/Baldwin/Dinsmore, 11, $130,000
■ Arlington/Fort Caroline, 118, $115,450
■ West Jacksonville, 80, $110,000
■ South Putnam County, 17, $65,000
■ Hyde Grove/Murray Hill/Lakeshore/Wesconnett, 56, $61,450
■ West Putnam County, 10, $50,950
■ Keystone Heights, 11, $45,000
■ NE Putnam County, 22, $31,500
■ Springfield/Downtown/Paxon/Trout River, 67, $25,900
Holiday season - Time for Cruise Control in the Real Estate Business? uh, no!
Hey, we made it to the end of the year, ups and downs, but is it time for us to take the well deserved break? What's that? I have investors, because of their religious beliefs take the weekend off, and I asked myself, what is that? It seems +Realtors get together on a weekend or at #holiday parties seem to discuss Real Estate, yeah, we obsess, just a small bit.
So what should we be doing as we wrap up 2013? This is a good article to get you ready for 2014:
Holiday prospecting is not limited to Christmas cards.....
Real estate is a face to face business, and you need to make your presence felt with eggnog and cookies. Or skip the eggnog and bring Champagne for celebrating! Attend as many holiday parties in your community as your digestive system can handle. Without fail someone at the party or event will ask how the real estate market is going.....and you thought that reruns of sitcoms were your plan for the season....
Door knocking. You didn’t think we would take it there, did you? A one-page informational flier on the market with some splashy color graphs (and NOT about yourself). Everyone is interested in local numbers. Use minimal text. It is just a way to get to know someone. Spread some holiday cheer, wish others a happy holiday season, more of a reason to see others!
It’s never too late or early to reconnect with industry peers. Ask others about their year both at the office and in the area. Your broker may be able to show you statistics and get an idea with others how to expand your business for 2014. Maybe you can get a jump by taking additional Real Estate classes. These things can help you learn more about current methods of customer service.
Lay the groundwork for 2014
When was the last time you Googled yourself? Odds are good that when a buyer or seller searches for your name online, he is going to find your profile on Google+, Trulia, LinkedIn and other national websites. Update your online profiles on these sites during the holidays to make sure those prospects get a great first impression of you.
Write your 2014 business plan. In a nutshell, your plan just needs to say how many transactions you need next year and where that business is going to come from. What will you do different this year, that you did not do last year? Perhaps contacting more investors? Perhaps more networking with others?
Re-examine your market niche. As a real estate agent, you can’t be all things to all people. You’ll get the most bang for your marketing buck if you choose a specific niche like luxury homes, investment properties, first-time buyers, historic homes, etc. If your marketing still revolves entirely around distressed properties, it may be time to to shift your focus to a new niche.
#LizBobeck
So what should we be doing as we wrap up 2013? This is a good article to get you ready for 2014:
- Review your November credit card statement and go through it with a fine-toothed comb. Are you spending money on real estate services that you haven’t used in more than six months and have no intent on using? Are you paying for things that are not generating growth for your business? Stop it.
- Clean up your contact database. 2013 was blissful mayhem for many agents, but the side effect of a hot real estate market is often sloppy lead management. Get that shovel out and start digging through every lead you acquired and make sure they are loaded in your contact management system, aka your customer relationship management (CRM) system.
- Remember how long the typical buying cycle is, or DOM (Days on Market) — it is entirely possible that you’ve got some hot leads hiding in there.
- A local Realtor added - “Our databank is our bank of business for now and the future. It requires constant addition, nurture and contact, or it dies.” Also, remember the touches you have of those on your databank, call, post card, coffee, lunch, you never stop touching those on your list!
- When was the last time you looked at your own real estate website? Time block an hour to read every page on your website to make sure the information is both current and visually appealing.
- Time for the annual cleanup and dump, go through your office, what can you toss, what do you need to keep, do you really need to keep that? Tame those dust bunnies and hit the recycling bin while things are a bit more quiet.
Holiday prospecting is not limited to Christmas cards.....
Real estate is a face to face business, and you need to make your presence felt with eggnog and cookies. Or skip the eggnog and bring Champagne for celebrating! Attend as many holiday parties in your community as your digestive system can handle. Without fail someone at the party or event will ask how the real estate market is going.....and you thought that reruns of sitcoms were your plan for the season....
Door knocking. You didn’t think we would take it there, did you? A one-page informational flier on the market with some splashy color graphs (and NOT about yourself). Everyone is interested in local numbers. Use minimal text. It is just a way to get to know someone. Spread some holiday cheer, wish others a happy holiday season, more of a reason to see others!
It’s never too late or early to reconnect with industry peers. Ask others about their year both at the office and in the area. Your broker may be able to show you statistics and get an idea with others how to expand your business for 2014. Maybe you can get a jump by taking additional Real Estate classes. These things can help you learn more about current methods of customer service.
Lay the groundwork for 2014
When was the last time you Googled yourself? Odds are good that when a buyer or seller searches for your name online, he is going to find your profile on Google+, Trulia, LinkedIn and other national websites. Update your online profiles on these sites during the holidays to make sure those prospects get a great first impression of you.
Write your 2014 business plan. In a nutshell, your plan just needs to say how many transactions you need next year and where that business is going to come from. What will you do different this year, that you did not do last year? Perhaps contacting more investors? Perhaps more networking with others?
Re-examine your market niche. As a real estate agent, you can’t be all things to all people. You’ll get the most bang for your marketing buck if you choose a specific niche like luxury homes, investment properties, first-time buyers, historic homes, etc. If your marketing still revolves entirely around distressed properties, it may be time to to shift your focus to a new niche.
#LizBobeck
Monday, December 16, 2013
Renters seem to have it more difficult this holiday season as rents are rising!
Renters seem to get it at both ends, on one side there are the Realtors who are saying "its never been as easy to buy as it is now", which we know is not true, since the easy buying of 2002-2005 is what led to the recession mess. Then they now have this information out that because properties are being gobbled up by investors, its getting harder to find good quality dwellings:
The share of renters stretched thin by their housing costs has spiked in the last decade, as rental rates have increased and wages have plummeted, according to a report released by the Harvard Joint Center for Housing Studies.
Half of U.S. renters spend more than 30 percent of their income on rent, up 12 percentage points from a decade earlier, according to the report. Renters facing severe financial burdens — those who spend more than half their income on rent — accounted for much of the increase, rising to a reported 27 percent from 19 percent of all renters a decade before.
Adverse economic conditions appear to have driven the nosedive in affordability. The center said that real median rents (adjusted for inflation) increased by 6 percent between 2000 and 2012, while real median income of renters fell by 13 percent.
“More than ever before, the private market struggles to provide decent housing that is affordable for people of even modest means,” the center said.
The good news, especially in Jacksonville, is that there are plenty of RENT TO OWN options. If you cannot afford to buy right now, due to credit issues or other issues, Rent to own or Lease with the option to buy, may be an excellent option for you. If you had a payment for a house LESS than what it costs to BUY, why not look at this, especially if the owner has the the place fixed up and will provide work for equity. Check out this option and let me know your thoughts:
3213 Plum Street
#LizBobeck
The share of renters stretched thin by their housing costs has spiked in the last decade, as rental rates have increased and wages have plummeted, according to a report released by the Harvard Joint Center for Housing Studies.
Half of U.S. renters spend more than 30 percent of their income on rent, up 12 percentage points from a decade earlier, according to the report. Renters facing severe financial burdens — those who spend more than half their income on rent — accounted for much of the increase, rising to a reported 27 percent from 19 percent of all renters a decade before.
Adverse economic conditions appear to have driven the nosedive in affordability. The center said that real median rents (adjusted for inflation) increased by 6 percent between 2000 and 2012, while real median income of renters fell by 13 percent.
“More than ever before, the private market struggles to provide decent housing that is affordable for people of even modest means,” the center said.
The good news, especially in Jacksonville, is that there are plenty of RENT TO OWN options. If you cannot afford to buy right now, due to credit issues or other issues, Rent to own or Lease with the option to buy, may be an excellent option for you. If you had a payment for a house LESS than what it costs to BUY, why not look at this, especially if the owner has the the place fixed up and will provide work for equity. Check out this option and let me know your thoughts:
3213 Plum Street
#LizBobeck
Some trends from Realtor.com and possible options in 2014.
More predictions for 2014 as we head toward the end of 2013, this time from Realtor.com, who has just a bit of insight into Real Estate around the country. Agree or Disagree?
Looking back at some 2013 data can give us a hint of the year ahead in 2014:
1. Inventory Should Gradually Stabilize and Return to Traditional Seasonal Levels
The beginning of 2013 could be characterized as the “year of low inventory” as buyer demand ramped up and homeowners waited for further price increases and evidence of a solid economic recovery before putting their homes on the market. The year began with a significant shortage of inventory, and then as early as February the level of shortages started to decline slowly. As 2013 comes to a close, inventory is approximately the same as a year ago. However, homes are selling faster than in 2012, with the median age of the inventory down by 11 percent.
2. More Homeowners Are Likely to Return to Positive Equity
Rising prices helped 2.5 million homeowners who were previously underwater regain positive equity status during the second quarter of 2013. However, approximately 7.1 million homes were still in negative equity at that time and an estimated 10 million homeowners, or about 21.1 percent of all homeowners with a mortgage, remained “under-equitied,” with less than 20 percent in home equity. The good news is that prices are expected to continue rising in 2014, which will lift more homeowners into positive territory. Median list prices for homes in October rose 7.57 percent above the same month of 2012.
3. Mortgage Rates Are Expected to Rise
Mortgage rates increased approximately 100 basis points in 2013 and are likely to rise in 2014. The new chairman-designate of the Federal Reserve, Janet Yellen, is expected to continue the policies of Chairman Ben Bernanke, including keeping mortgage rates low by buying blocks of mortgage-backed securities. However, the Fed has considered tapering its bond-buying activity as the economy improves, which could lead to a slight increase in interest rates.
4. Foreclosure Activity Is Expected to Slow
Foreclosure sales are likely to play a minimal role in the housing market in 2014. September 2013 was the 36th consecutive month with a year-over-year decrease in foreclosure activity. Foreclosure inventory has dropped to multi-year lows, down nearly 33 percent since the end of 2012. Foreclosure starts were down 39 percent in the third quarter of 2013 to the lowest level since the second quarter of 2006.
5. Further Declines in Home Affordability Are Expected
The National Association of REALTORS®’ Home Affordability Index, which compares home prices with income, dropped to a five-year low in 2013 as price increases outpaced income growth. If the U.S. economy begins to grow at a faster pace and incomes begin to rise, though, the affordability index will slide further from rising mortgage rates.
While no one can predict with certainty what the housing market holds in store for 2014, a constant in real estate is always that local markets vary widely in their performance. National numbers can tell a story about the economy in general, but home prices, inventory and foreclosure activity depend on local market conditions.
#LizBobeck
Looking back at some 2013 data can give us a hint of the year ahead in 2014:
1. Inventory Should Gradually Stabilize and Return to Traditional Seasonal Levels
The beginning of 2013 could be characterized as the “year of low inventory” as buyer demand ramped up and homeowners waited for further price increases and evidence of a solid economic recovery before putting their homes on the market. The year began with a significant shortage of inventory, and then as early as February the level of shortages started to decline slowly. As 2013 comes to a close, inventory is approximately the same as a year ago. However, homes are selling faster than in 2012, with the median age of the inventory down by 11 percent.
2. More Homeowners Are Likely to Return to Positive Equity
Rising prices helped 2.5 million homeowners who were previously underwater regain positive equity status during the second quarter of 2013. However, approximately 7.1 million homes were still in negative equity at that time and an estimated 10 million homeowners, or about 21.1 percent of all homeowners with a mortgage, remained “under-equitied,” with less than 20 percent in home equity. The good news is that prices are expected to continue rising in 2014, which will lift more homeowners into positive territory. Median list prices for homes in October rose 7.57 percent above the same month of 2012.
3. Mortgage Rates Are Expected to Rise
Mortgage rates increased approximately 100 basis points in 2013 and are likely to rise in 2014. The new chairman-designate of the Federal Reserve, Janet Yellen, is expected to continue the policies of Chairman Ben Bernanke, including keeping mortgage rates low by buying blocks of mortgage-backed securities. However, the Fed has considered tapering its bond-buying activity as the economy improves, which could lead to a slight increase in interest rates.
4. Foreclosure Activity Is Expected to Slow
Foreclosure sales are likely to play a minimal role in the housing market in 2014. September 2013 was the 36th consecutive month with a year-over-year decrease in foreclosure activity. Foreclosure inventory has dropped to multi-year lows, down nearly 33 percent since the end of 2012. Foreclosure starts were down 39 percent in the third quarter of 2013 to the lowest level since the second quarter of 2006.
5. Further Declines in Home Affordability Are Expected
The National Association of REALTORS®’ Home Affordability Index, which compares home prices with income, dropped to a five-year low in 2013 as price increases outpaced income growth. If the U.S. economy begins to grow at a faster pace and incomes begin to rise, though, the affordability index will slide further from rising mortgage rates.
While no one can predict with certainty what the housing market holds in store for 2014, a constant in real estate is always that local markets vary widely in their performance. National numbers can tell a story about the economy in general, but home prices, inventory and foreclosure activity depend on local market conditions.
#LizBobeck
Friday, December 13, 2013
Attention Santa's Little Helpers, new listing on Venetia Blvd, on the water.
My new listing on Venetia, million dollar home:
This beautiful home with 5 bedrooms and 3 baths is located in the lovely neighborhood of Venetia. The backyard is very tranquil with it's covered porch and large patio that leads out to the dock/boat lift on to Pirates Cove which is only seconds to St. Johns River.
Bring me a buyer, or yourself!
#LizBobeck
This beautiful home with 5 bedrooms and 3 baths is located in the lovely neighborhood of Venetia. The backyard is very tranquil with it's covered porch and large patio that leads out to the dock/boat lift on to Pirates Cove which is only seconds to St. Johns River.
Located here with this nice map:
Bring me a buyer, or yourself!
#LizBobeck
Wednesday, December 11, 2013
Don't forget to list the detached garage AS-IS in Historic Neighborhoods for your clients....
Life is made up of all your experiences, and I had one yesterday, for sure! I need to share with you that when you are working with Historic neighborhoods like #Avondale #Springfield #Riverside or #SanMarco, you need to ask your #Realtor to check on a few important items, because these homes are sooooooooo old, and remember on a good clear day, the #sun, the #salt air, the #wind, they are all beating on the house, and wood is an organic material, much like the people who built the homes, they will eventually decay. (morbid I know, but true).
So yesterday, I am writing an offer for a client in #Avondale. The owner of the house, the seller, needs X amount of money to be able to make the down payment for their next house down the street, down sizing. Not really important to the buyer, but the seller really has NO money for repairs. This will become evident in a minute. So a great historic house, with a garage, in a fantastic neighborhood.
Through an inspection of this $500,000 house, (and you should get an inspection for any house you are going to live in), we find that the carriage house/garage needs $18,000 in repairs. Wood Destroying Organisms have been eating this carriage house, alive. Many garages in Avondale are so old and decrepit, not to mention small because the cars that were around in the 20s are a weeeee bit smaller than they are today, they could blow over in a tropical storm, and some do.
Had the LISTING #Realtors put in the their paperwork that the garage/carriage house is being sold, AS-IS, then the real value of the property is the house, the land and the neighborhood. The fact that the value of the house is tied to a building on the lot of less value, it becomes an issue for the buyer because 1) the seller will not make any repairs, and 2) it could become hard to get insurance for something that is in such bad shape. Almost like condemning the space, but the new buyer then has to spend a small fortune to get the garage/carriage house operational.
#Realtors, wake up and help make it easier to sell #Historic properties for your sellers! Happy Holidays!
Through an inspection of this $500,000 house, (and you should get an inspection for any house you are going to live in), we find that the carriage house/garage needs $18,000 in repairs. Wood Destroying Organisms have been eating this carriage house, alive. Many garages in Avondale are so old and decrepit, not to mention small because the cars that were around in the 20s are a weeeee bit smaller than they are today, they could blow over in a tropical storm, and some do.
Had the LISTING #Realtors put in the their paperwork that the garage/carriage house is being sold, AS-IS, then the real value of the property is the house, the land and the neighborhood. The fact that the value of the house is tied to a building on the lot of less value, it becomes an issue for the buyer because 1) the seller will not make any repairs, and 2) it could become hard to get insurance for something that is in such bad shape. Almost like condemning the space, but the new buyer then has to spend a small fortune to get the garage/carriage house operational.
#Realtors, wake up and help make it easier to sell #Historic properties for your sellers! Happy Holidays!
Three Words That Will Save Your Life
During the holiday season, it is good for us to be kind to others, but unless we are happy with ourselves, are we really projecting a happy person to others? #Realestate can take a LOT out of people, and for us, as #Realtors, we need to look at ourselves daily to get an idea of who we are, and are we happy, or do we blame others for our position. This article struck a nerve with me, sent to me from my father-in-law, who I have blamed for issues in the past as well, but ultimately, #I #am #responsible.
By #Alex #Green, Wednesday, December 11, 2013
Talk about a model prisoner…
In 1985, Fleet Maull began serving a 14-year sentence for drug trafficking. During his incarceration, he completed a PhD in psychology, authored a well-received book, became an ordained priest, founded a prison hospice program, and launched the Prison Dharma Network, a non-profit organization that supports prisoner rehabilitation through contemplative spirituality.
Today, Maull works as a peace activist and personal effectiveness coach, lecturing at leading universities, in corporate boardrooms, in high-risk areas like Rwanda and the Middle East, and in what he calls "the forgotten world" inside our jails and prisons.
Maull has plenty of wisdom and experience to share. But he sums up his core message in a single phrase:
Radical Responsibility…
Maull believes we create everything that's happening in our lives, good and bad. It's only when we accept complete responsibility that we take the giant step from childhood to adulthood. Self-responsibility is the key to personal effectiveness in every sphere of life.
Yet many choose to embrace the psychology of helplessness and victimhood, preferring to explain all their struggles in terms of the actions of others.
Like you, I meet many middle-aged men and women who are still grumbling and complaining about earlier unhappy experiences, who are still blaming their problems on other people or "the breaks." They're angry with their parents, fuming at an old boss, or still simmering over their ex-spouse. They're trapped in the past and can't get free.
Yet the great enemy of success and happiness is negative emotions. Fear, self-pity, envy, jealousy, and anger hold us back, tie us down, and suck the joy out of life.
Studies show that there are four root causes of these emotions. Once you identify them, you can begin to banish them:
• Justification. You can be negative only as long as you convince yourself that you are entitled to be angry. Unhappy individuals will always be found explaining and elaborating on the profound unfairness of their situation.
• Rationalization. Rationalization is self-deception, an attempt to create a plausible explanation for a socially unacceptable act. (As in, "If I turn this in six weeks late, no one will care anyway.")
• Blaming. There is no quality more closely associated with unhappiness than the habit of blaming others for our difficulties.
• Poor self-esteem. Low self-esteem is generally characterized by a hypersensitivity to the opinions of others. No one wants to lose the respect of others, but conscientious people don't need to fret about what other people think. Management consultant Brian Tracy points out that there's a simple antidote to these factors that create negative emotions. You need only say three words: I am responsible.
Whether your problem is joblessness, addiction, overspending, obesity, or a damaged personal relationship, you move closer to a solution the moment you say, "I am responsible."
It's impossible to say these words and still feel angry. The very act of taking responsibility short-circuits and cancels out negative emotions.
As Tracy says, "Every time you blame someone else or make excuses, you give your power away. You feel weakened and diminished… Without the acceptance of complete personal responsibility, no progress is possible. On the other hand, once you accept total responsibility for your life, there are no limits to what you can be, do, and have."
Yet many would rather train for the Boston Marathon in three feet of snow than say these words. Why?
Psychologists say human beings have a natural propensity to accumulate pride and shun regret. Whether we recognize it or not, we tend to take responsibility for the positive developments in our lives and attribute unfavorable developments to others or circumstances.
This is not to say there aren't times when our lives are significantly influenced by outside forces. Maybe you're a great worker who lost her job due to a corporate downsizing or the poor economy. Maybe your parents really were poor role models. But victims don't create change. It's only when you choose to focus on what you can do and how you should act that you gain power.
Businesses and other organizations today are looking for people who are willing and able to think, who are self-directing and self-managing, who respond to problems proactively rather than merely waiting for someone else's solutions.
A study done in New York a few years ago found that people who ranked in the top 3% in every field had a special attitude that set them apart from average performers in their industries. It was this: They chose to view themselves as self-employed throughout their careers, no matter who signed their paychecks.
These are people who set goals, make plans, establish measures, and get results.
Radical responsibility changes everything. It means you own your thoughts, impulses, feelings, and actions. You are accountable for the consequences they bring and the impact they have on others.
This is not a burden, incidentally. It's a privilege and an honor to take ownership of your actions. It creates freedom and control. It gives meaning to life.
Self-reliance is the great source of personal power. We create ourselves, shape our identity, and determine the course of our lives by what we are willing to take responsibility for.
Want to change your life and solve your problems, starting today? Say three simple words:
I am responsible.
#LizBobeck
By #Alex #Green, Wednesday, December 11, 2013
Talk about a model prisoner…
In 1985, Fleet Maull began serving a 14-year sentence for drug trafficking. During his incarceration, he completed a PhD in psychology, authored a well-received book, became an ordained priest, founded a prison hospice program, and launched the Prison Dharma Network, a non-profit organization that supports prisoner rehabilitation through contemplative spirituality.
Today, Maull works as a peace activist and personal effectiveness coach, lecturing at leading universities, in corporate boardrooms, in high-risk areas like Rwanda and the Middle East, and in what he calls "the forgotten world" inside our jails and prisons.
Maull has plenty of wisdom and experience to share. But he sums up his core message in a single phrase:
Radical Responsibility…
Maull believes we create everything that's happening in our lives, good and bad. It's only when we accept complete responsibility that we take the giant step from childhood to adulthood. Self-responsibility is the key to personal effectiveness in every sphere of life.
Yet many choose to embrace the psychology of helplessness and victimhood, preferring to explain all their struggles in terms of the actions of others.
Like you, I meet many middle-aged men and women who are still grumbling and complaining about earlier unhappy experiences, who are still blaming their problems on other people or "the breaks." They're angry with their parents, fuming at an old boss, or still simmering over their ex-spouse. They're trapped in the past and can't get free.
Yet the great enemy of success and happiness is negative emotions. Fear, self-pity, envy, jealousy, and anger hold us back, tie us down, and suck the joy out of life.
Studies show that there are four root causes of these emotions. Once you identify them, you can begin to banish them:
• Justification. You can be negative only as long as you convince yourself that you are entitled to be angry. Unhappy individuals will always be found explaining and elaborating on the profound unfairness of their situation.
• Rationalization. Rationalization is self-deception, an attempt to create a plausible explanation for a socially unacceptable act. (As in, "If I turn this in six weeks late, no one will care anyway.")
• Blaming. There is no quality more closely associated with unhappiness than the habit of blaming others for our difficulties.
• Poor self-esteem. Low self-esteem is generally characterized by a hypersensitivity to the opinions of others. No one wants to lose the respect of others, but conscientious people don't need to fret about what other people think. Management consultant Brian Tracy points out that there's a simple antidote to these factors that create negative emotions. You need only say three words: I am responsible.
Whether your problem is joblessness, addiction, overspending, obesity, or a damaged personal relationship, you move closer to a solution the moment you say, "I am responsible."
It's impossible to say these words and still feel angry. The very act of taking responsibility short-circuits and cancels out negative emotions.
As Tracy says, "Every time you blame someone else or make excuses, you give your power away. You feel weakened and diminished… Without the acceptance of complete personal responsibility, no progress is possible. On the other hand, once you accept total responsibility for your life, there are no limits to what you can be, do, and have."
Yet many would rather train for the Boston Marathon in three feet of snow than say these words. Why?
Psychologists say human beings have a natural propensity to accumulate pride and shun regret. Whether we recognize it or not, we tend to take responsibility for the positive developments in our lives and attribute unfavorable developments to others or circumstances.
This is not to say there aren't times when our lives are significantly influenced by outside forces. Maybe you're a great worker who lost her job due to a corporate downsizing or the poor economy. Maybe your parents really were poor role models. But victims don't create change. It's only when you choose to focus on what you can do and how you should act that you gain power.
Businesses and other organizations today are looking for people who are willing and able to think, who are self-directing and self-managing, who respond to problems proactively rather than merely waiting for someone else's solutions.
A study done in New York a few years ago found that people who ranked in the top 3% in every field had a special attitude that set them apart from average performers in their industries. It was this: They chose to view themselves as self-employed throughout their careers, no matter who signed their paychecks.
These are people who set goals, make plans, establish measures, and get results.
Radical responsibility changes everything. It means you own your thoughts, impulses, feelings, and actions. You are accountable for the consequences they bring and the impact they have on others.
This is not a burden, incidentally. It's a privilege and an honor to take ownership of your actions. It creates freedom and control. It gives meaning to life.
Self-reliance is the great source of personal power. We create ourselves, shape our identity, and determine the course of our lives by what we are willing to take responsibility for.
Want to change your life and solve your problems, starting today? Say three simple words:
I am responsible.
#LizBobeck
Tuesday, December 10, 2013
With as many properties as we are seeing for investors, we should have our own Real Estate TV show
Call it investing in Historic +Jacksonville, as we could very easily have our own show on how to buy investment properties. Yesterday, my investors from Miami were here, looking at properties. I have touched on my displeasure with Realtors wasting our time with no cap rates or details on rents, 32205 Living in Historic Avondale: So how do you feel about Realtor listings that are....
I realized today that I owe at least a small debt of gratitude to cable channels like HGTV, TLC, and A&E which are full of real estate TV shows. They have done an OK job of setting expectations with buyers and sellers. Education is half the battle when working with buyers and sellers, so anytime people can watch a primetime "video" on Real Estate, albeit 30 minutes, its great to educate the masses. On the flip side, I recognize that they might make things seem a bit too easy. Nonetheless, I have frequently benefited from the lessons my clients have learned therein.
A few thoughts on this:
For buyers: I have found a number of clients who really enjoy watching shows like “House Hunters,” “My First House,” "Flip this House", and others. Consequently, it seems that some of them expect that they’ll look at only a few homes and we’ll get a contract in place quickly. I know that “House Hunters” features three homes, and they’re able to wrap things up neatly in 30 minutes. Needless to say, I appreciate the idea that we don’t have to visit a virtually endless number of homes to make a solid decision. I recently had a buyer who seemed to expect that we wouldn’t look at more than a handful of properties.
For sellers: Many times I can credit television programs for some of my seller clients who already have a strong understanding of the basics of home staging and de-cluttering, which makes my job a good deal easier. They also seem to respect that proper pricing is a critically important part of marketing the home, even if they have an idea of "how much their house is worth", and I have to manage this expectation. Frequently I hear, "Well the TV program made it sound so easy"....thanks to Survivor we have REAL Realty TV.
For agents: I have been in expansion mode as we move closer to 2014, having recruited experienced agents in the second half of this year. More than likely, I'll have some new people on my team in 2014. One interesting thing I’ve noted, particularly with younger, newer agents, is that they frequently mention how much they love watching real estate shows. It would seem that these shows have inspired a whole generation of budding agents. So when I watch the shows, we have something to relate with each other.
If you would like to be a star and possibly get a role on a Realty TV show, in many cases it is as simple as creating a demo tape/video (demo reel sounded so old or even demo tape) and submit to the show's producers on their website. As with real actors and actresses, this process can take time and lots of submissions, but then again, you are practicing on what directors/producers want to see. And you may be working on a new profession as a director/producer of Real Estate Videos!
#LizBobeck
I realized today that I owe at least a small debt of gratitude to cable channels like HGTV, TLC, and A&E which are full of real estate TV shows. They have done an OK job of setting expectations with buyers and sellers. Education is half the battle when working with buyers and sellers, so anytime people can watch a primetime "video" on Real Estate, albeit 30 minutes, its great to educate the masses. On the flip side, I recognize that they might make things seem a bit too easy. Nonetheless, I have frequently benefited from the lessons my clients have learned therein.
A few thoughts on this:
For buyers: I have found a number of clients who really enjoy watching shows like “House Hunters,” “My First House,” "Flip this House", and others. Consequently, it seems that some of them expect that they’ll look at only a few homes and we’ll get a contract in place quickly. I know that “House Hunters” features three homes, and they’re able to wrap things up neatly in 30 minutes. Needless to say, I appreciate the idea that we don’t have to visit a virtually endless number of homes to make a solid decision. I recently had a buyer who seemed to expect that we wouldn’t look at more than a handful of properties.
For sellers: Many times I can credit television programs for some of my seller clients who already have a strong understanding of the basics of home staging and de-cluttering, which makes my job a good deal easier. They also seem to respect that proper pricing is a critically important part of marketing the home, even if they have an idea of "how much their house is worth", and I have to manage this expectation. Frequently I hear, "Well the TV program made it sound so easy"....thanks to Survivor we have REAL Realty TV.
For agents: I have been in expansion mode as we move closer to 2014, having recruited experienced agents in the second half of this year. More than likely, I'll have some new people on my team in 2014. One interesting thing I’ve noted, particularly with younger, newer agents, is that they frequently mention how much they love watching real estate shows. It would seem that these shows have inspired a whole generation of budding agents. So when I watch the shows, we have something to relate with each other.
If you would like to be a star and possibly get a role on a Realty TV show, in many cases it is as simple as creating a demo tape/video (demo reel sounded so old or even demo tape) and submit to the show's producers on their website. As with real actors and actresses, this process can take time and lots of submissions, but then again, you are practicing on what directors/producers want to see. And you may be working on a new profession as a director/producer of Real Estate Videos!
#LizBobeck
Monday, December 9, 2013
So how do you feel about Realtor listings that are missing key parts of data?
I wanted to post something and ask my friends on Google+ what they thought about Realtors who post listings that are supposedly investor properties, but the amount of rents or the number of units appear to be missing. Investors are a funny breed, some like to look at cash flow as their basis, others look at MAO=ARV*.7-repairs, where MAO is the maximum allowable offer = after repair value * .7 (realtor costs, time value of money, what ifs) minus repairs. Then there are some looking for the CAP rate on the property, this is simply found taking the rents divided by the sale price.
Now if you are trying to sell an investor property and you know it is investor property because its a duplex or quad-plex or has 6 buildings each with a duplex inside, you would think that showing the details on the number of bedrooms, the number of baths, the amount of rent would all be important. My fellow Realtors, get off your lazy butts and figure this out, why do I have to call you out? (I wish Realtor.com allowed me to put a question mark or highlight next to each listing in the MLS).
I want to sell your properties, I have a cash buyer from South Florida and he wants to buy properties. Don't make this hard, make it easier on us all. Add the rents for the property, if there are no renters, find out the rents using rentometer dot com. This is NOT rocket science. Ask property managers in the area. Find out from other investors the criteria they use, as investors like to buy with confidence, and for pete's sake (sorry Pete), know what the heck you are talking about! My investor asked the listing Realtor questions about how to access the attics in the 6 properties, she said she had no idea. She did not know which buildings' AC units are using R-410 as refrigerant. Basic stuff about the property, there are sooooooooooooooooo many bad Realtors out here in the world. We need to get rid of many of them.
Till then, fill out the Investment properties so the other Realtors who want to sell property can do so without having to look around for data in an hunt. Easter is still months away, no need to repeat the Easter Egg hunt yet.
#LizBobeck
Now if you are trying to sell an investor property and you know it is investor property because its a duplex or quad-plex or has 6 buildings each with a duplex inside, you would think that showing the details on the number of bedrooms, the number of baths, the amount of rent would all be important. My fellow Realtors, get off your lazy butts and figure this out, why do I have to call you out? (I wish Realtor.com allowed me to put a question mark or highlight next to each listing in the MLS).
I want to sell your properties, I have a cash buyer from South Florida and he wants to buy properties. Don't make this hard, make it easier on us all. Add the rents for the property, if there are no renters, find out the rents using rentometer dot com. This is NOT rocket science. Ask property managers in the area. Find out from other investors the criteria they use, as investors like to buy with confidence, and for pete's sake (sorry Pete), know what the heck you are talking about! My investor asked the listing Realtor questions about how to access the attics in the 6 properties, she said she had no idea. She did not know which buildings' AC units are using R-410 as refrigerant. Basic stuff about the property, there are sooooooooooooooooo many bad Realtors out here in the world. We need to get rid of many of them.
Till then, fill out the Investment properties so the other Realtors who want to sell property can do so without having to look around for data in an hunt. Easter is still months away, no need to repeat the Easter Egg hunt yet.
#LizBobeck
Saturday, December 7, 2013
Are the Ultra-High End homes next to hit the foreclosure system?
I found this from a friend in the real estate business. Hence the reason you see the references from Houston. But the cities referenced, with Houston, are or were some of the hardest hit during the recession and had some of the largest inventory of distressed properties. So if you are on the hunt for the Ultra-High End properties in Jacksonville, call me to see if there some available in Historic +Avondale +Riverside +Sanmarco +Springfield +Ortega.
Looking for eight bedrooms, 13 bathrooms and 23,000-square feet in Houston?
For a cool $6.3 million you may be able to take it off the bank’s hands since it repossessed a house fitting this description in April.
According to RealtyTrac, foreclosures on ultra-high-end homes — those with a value over $5 million — are up 61% over last year, defying the trend in the overall market that has seen foreclosure activity down 23% through October.
Panoramic ocean views, stunning architecture and landscaping — even putting greens — are some of the hallmarks of these luxury properties.
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And although they account for a tiny part of the market — less than 200 total in 2013 so far — they can cost a foreclosing lender a sizable amount.
However, as Emmett Laffey, CEO of Laffey Fine Home International in New York City, said, “Any foreclosure properties in this kind of ultra-luxury market get purchased very quickly since there is one thing all super-rich buyers want — an outstanding deal on a real estate transaction, and in most cases foreclosures of this magnitude come with several million dollars of built-in value.”
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According to RealtyTrac the top market for foreclosures in the $5 million-plus range is in the Miami/Fort Lauderdale area, followed by Los Angeles.
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Rounding out the top five list are Atlanta, Ga.; Orlando, Fla.; and the New York City/Northern New Jersey area. Although Los Angeles made the top-five list, foreclosure activity in California as a whole is down compared to last year.
#LizBobeck
Looking for eight bedrooms, 13 bathrooms and 23,000-square feet in Houston?
For a cool $6.3 million you may be able to take it off the bank’s hands since it repossessed a house fitting this description in April.
According to RealtyTrac, foreclosures on ultra-high-end homes — those with a value over $5 million — are up 61% over last year, defying the trend in the overall market that has seen foreclosure activity down 23% through October.
Panoramic ocean views, stunning architecture and landscaping — even putting greens — are some of the hallmarks of these luxury properties.
And although they account for a tiny part of the market — less than 200 total in 2013 so far — they can cost a foreclosing lender a sizable amount.
However, as Emmett Laffey, CEO of Laffey Fine Home International in New York City, said, “Any foreclosure properties in this kind of ultra-luxury market get purchased very quickly since there is one thing all super-rich buyers want — an outstanding deal on a real estate transaction, and in most cases foreclosures of this magnitude come with several million dollars of built-in value.”
According to RealtyTrac the top market for foreclosures in the $5 million-plus range is in the Miami/Fort Lauderdale area, followed by Los Angeles.
Rounding out the top five list are Atlanta, Ga.; Orlando, Fla.; and the New York City/Northern New Jersey area. Although Los Angeles made the top-five list, foreclosure activity in California as a whole is down compared to last year.
#LizBobeck
Thursday, December 5, 2013
Early 2014 Prediction Home values will stabilize, mortgages will be easier to get next year
I thought this was an interesting article, especially since we have a few more weeks to go before we get into 2014. I believe that mortgages will be easier to get, I think that we have a great local economy with low unemployment and Real Estate seems to be leading the way in leading +Jacksonville out of the past recession. So what do you think?
Zillow is making four “bold” predictions for 2014:
Zillow Chief Economist Stan Humphries says that the more modest home value growth he predicts for 2014 reflects a more mature, stable market that will exist a year from now. “(In 2014), home value gains will slow down significantly because of higher mortgage rates, more expensive home prices, and more supply created by fewer underwater homeowners and more new construction,” Humphries said in a statement.
As the housing market resets toward more sustainable, realistic lending standards and home value appreciation expectations, Humphries expects home ownership to drop to below 65 percent, a level it hasn't seen since the mid-1990s.
Even though Zillow predicts mortgage rates will rise to above 5 percent by the end of 2014, the competition for fewer borrowers will force lenders to ease their standards, said Erin Lantz, Zillow’s director of mortgages. Home affordability will remain high, too, in many markets despite the rate increase, she said.
Based on projections for unemployment rates, population growth and the home values, Zillow predicts the following metros will have the hottest housing markets in 2014 (in order): Salt Lake City; Seattle; Austin, Texas; San Jose, Calif.; Miami; Raleigh, N.C.; Jacksonville, Fla.; San Diego; Portland, Ore.; and Boston.
Hey, its good to be in the top 10 of something positive, rather than all the negative stuff we saw for the last few years. Our market is indeed hot, there are less than 8,000 houses for sale in Jacksonville. Tight inventory for sure! Call me to discuss your Real Estate needs.
#LizBobeck
Zillow is making four “bold” predictions for 2014:
- Home values will increase by 3 percent;
- Mortgage rates will crack 5 percent;
- Borrowers will have easier access to a mortgage;
- Home ownership rate will drop to its lowest level in 20 years.
Zillow Chief Economist Stan Humphries says that the more modest home value growth he predicts for 2014 reflects a more mature, stable market that will exist a year from now. “(In 2014), home value gains will slow down significantly because of higher mortgage rates, more expensive home prices, and more supply created by fewer underwater homeowners and more new construction,” Humphries said in a statement.
As the housing market resets toward more sustainable, realistic lending standards and home value appreciation expectations, Humphries expects home ownership to drop to below 65 percent, a level it hasn't seen since the mid-1990s.
Even though Zillow predicts mortgage rates will rise to above 5 percent by the end of 2014, the competition for fewer borrowers will force lenders to ease their standards, said Erin Lantz, Zillow’s director of mortgages. Home affordability will remain high, too, in many markets despite the rate increase, she said.
Based on projections for unemployment rates, population growth and the home values, Zillow predicts the following metros will have the hottest housing markets in 2014 (in order): Salt Lake City; Seattle; Austin, Texas; San Jose, Calif.; Miami; Raleigh, N.C.; Jacksonville, Fla.; San Diego; Portland, Ore.; and Boston.
Hey, its good to be in the top 10 of something positive, rather than all the negative stuff we saw for the last few years. Our market is indeed hot, there are less than 8,000 houses for sale in Jacksonville. Tight inventory for sure! Call me to discuss your Real Estate needs.
#LizBobeck
Wednesday, December 4, 2013
A few tax breaks that are expiring at the end of 2013.....
I know we are all looking forward to the holidays in Historic +Avondale +Riverside +Springfield +Sanmarco and +Ortega. But, it would be prudent to at least plan on some of these tax issues NOW, rather than when we have had too much egg nog.....
Dozens of tax laws are set to expire at the end of 2013. Many of these provisions are quite popular and may be extended by Congress. Exactly when or how lawmakers will get around to doing this is unclear.
The situation is complicated by the fact that both the White House and Congress want to enact serious tax reform in 2014. Key members of Congress and the Obama administration have proposed that extending or making permanent some of these expiring provisions be made part of the overall tax reform process instead of being done piecemeal though special tax extension legislation.
The expiring provisions of most importance to the real estate industry include:
Mortgage insurance premiums deduction: Since 2007, qualifying homeowners have been able to deduct premiums for mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, the Rural Housing Service, and private mortgage insurance. Homeowners whose incomes are not too high can treat such payments the same as mortgage interest payments. Unless the law is extended, no deduction will allowed for amounts paid or accrued after Dec. 31, 2013.
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Discharge of indebtedness on principal residence exclusion: Since 2008, homeowners have been allowed to exclude from their taxable income up to $2 million of debt forgiven on their principal residence by a lender in a short sale, mortgage restructuring, or forgiven in a foreclosure.
Unless this provision is extended, the exclusion will not apply to indebtedness discharged after 2013. If this provision does expire, the impact will vary from state to state.
Tax credit for qualified energy efficiency improvements to principal residence: Homeowners have been able to claim a maximum lifetime tax credit of up to $500 for installing energy efficiency improvements in their main homes, including the cost of insulation, windows, doors and roofs. The credit expires at the end of 2013.
Since 2008, homeowners have been allowed to exclude from their taxable income up to $2 million of debt forgiven on their principal residence by a lender in a short sale, mortgage restructuring, or forgiven in a foreclosure."
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Section 179 expensing deduction: IRC Section 179 allows small-business owners to deduct the cost of business property in a single year instead of depreciating the cost over several years. Section 179 is subject to an annual dollar limit. During 2010 through 2013, the annual limit was $500,000. The limit is scheduled to go down to $25,000 in 2014.
Bonus depreciation: Since 2007, businesses have been able to take advantage of special “bonus depreciation” rules that permit them to deduct in a single year 50 percent of the cost of qualifying business property. Bonus depreciation will end on Dec. 31, 2013, unless extended by Congress.
Energy-efficient commercial buildings deduction: Since 2006, a special deduction has been available to commercial building owners who upgrade their existing buildings to make them more energy efficient, or design more energy-efficient new structures. A deduction of up to $1.80 per square foot was available for energy upgrades to a building’s interior lighting system, heating, cooling, ventilation, and hot water system, or building envelope. This deduction ends in 2013, unless extended.
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Credit for construction of new energy-efficient homes: Since 2006, certain contractors have been allowed an efficient-home credit of $1,000 or $2,000 for constructing or manufacturing qualifying energy-efficient homes. Like the other energy efficiency deductions, this is set to expire at the end of 2013.
With all of this, it looks like the government may not be raising taxes, but essentially doing away with deductions, which kinda sorta looks like a tax increase. Hopefully Congress will be able to save some of these for the consumer, especially the energy efficiency programs.
Happy Holidays
#LizBobeck
Dozens of tax laws are set to expire at the end of 2013. Many of these provisions are quite popular and may be extended by Congress. Exactly when or how lawmakers will get around to doing this is unclear.
The situation is complicated by the fact that both the White House and Congress want to enact serious tax reform in 2014. Key members of Congress and the Obama administration have proposed that extending or making permanent some of these expiring provisions be made part of the overall tax reform process instead of being done piecemeal though special tax extension legislation.
The expiring provisions of most importance to the real estate industry include:
Mortgage insurance premiums deduction: Since 2007, qualifying homeowners have been able to deduct premiums for mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, the Rural Housing Service, and private mortgage insurance. Homeowners whose incomes are not too high can treat such payments the same as mortgage interest payments. Unless the law is extended, no deduction will allowed for amounts paid or accrued after Dec. 31, 2013.
Discharge of indebtedness on principal residence exclusion: Since 2008, homeowners have been allowed to exclude from their taxable income up to $2 million of debt forgiven on their principal residence by a lender in a short sale, mortgage restructuring, or forgiven in a foreclosure.
Unless this provision is extended, the exclusion will not apply to indebtedness discharged after 2013. If this provision does expire, the impact will vary from state to state.
Tax credit for qualified energy efficiency improvements to principal residence: Homeowners have been able to claim a maximum lifetime tax credit of up to $500 for installing energy efficiency improvements in their main homes, including the cost of insulation, windows, doors and roofs. The credit expires at the end of 2013.
Since 2008, homeowners have been allowed to exclude from their taxable income up to $2 million of debt forgiven on their principal residence by a lender in a short sale, mortgage restructuring, or forgiven in a foreclosure."
Section 179 expensing deduction: IRC Section 179 allows small-business owners to deduct the cost of business property in a single year instead of depreciating the cost over several years. Section 179 is subject to an annual dollar limit. During 2010 through 2013, the annual limit was $500,000. The limit is scheduled to go down to $25,000 in 2014.
Bonus depreciation: Since 2007, businesses have been able to take advantage of special “bonus depreciation” rules that permit them to deduct in a single year 50 percent of the cost of qualifying business property. Bonus depreciation will end on Dec. 31, 2013, unless extended by Congress.
Energy-efficient commercial buildings deduction: Since 2006, a special deduction has been available to commercial building owners who upgrade their existing buildings to make them more energy efficient, or design more energy-efficient new structures. A deduction of up to $1.80 per square foot was available for energy upgrades to a building’s interior lighting system, heating, cooling, ventilation, and hot water system, or building envelope. This deduction ends in 2013, unless extended.
Credit for construction of new energy-efficient homes: Since 2006, certain contractors have been allowed an efficient-home credit of $1,000 or $2,000 for constructing or manufacturing qualifying energy-efficient homes. Like the other energy efficiency deductions, this is set to expire at the end of 2013.
With all of this, it looks like the government may not be raising taxes, but essentially doing away with deductions, which kinda sorta looks like a tax increase. Hopefully Congress will be able to save some of these for the consumer, especially the energy efficiency programs.
Happy Holidays
#LizBobeck
Tuesday, December 3, 2013
If video killed the radio star, the web killed the newspaper ad...
Who does not remember the song, "Video killed the radio star?" I do, and I remember when MTV came out and wow, radio changed forever. So much so that the satellite radio companies hired all the old MTV "VJs" to be on their shows after MTV became something other than music television.
Now we are seeing where the vast majority of US Adults, 164 million of us, read newspaper content either online or in print. 34 million of those view the newspapers online or on a mobile device, up 58% year over year. The trend is that as Americans age and get older, we will be viewing the newspaper online. Will we be viewing the advertisements too????
There was a time, not so long ago, when my family and I would sit down on Sunday morning to have breakfast and I would watch my dad read the newspaper from cover to cover. Now, he reads the news on his phone or on his laptop. Newspaper publishers miss my “old” dad, the one who would glance over the open houses every Sunday. However, that dad just doesn't exist anymore. The same goes for so many other moms and dads who read the news every Sunday.
The survival of regional/national publications and death of local publications causes major problem for real estate professionals because many brokerages prefer smaller publications because the major/regional pubs are very costly. We advertise in the local paper, The Resident because our Niche is Historic +Avondale +Riverside +Sanmarco +Springfield and +Ortega.
They see local publications as a way to stay connected with their local consumers, where regional publications aren’t as hyperlocal with the listings they share in their newspapers. Regardless, so many local real estate agents beg their brokers to continue print media campaigns, not thinking of the return on investment (ROI) print has, just wanting coverage in as many different media as they possibly can. According to the National Association of Realtors, more than 90 percent of homebuyers begin their search online, while only 27 percent stated that they bought a house they saw in the newspaper.
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Another major concept to think about in this argument is the functionality behind listing online versus listing in print. National listings solution providers like realtor.com, Trulia and Zillow have theorized major search metrics in optimizing the amount of eyes viewing a particular listing, especially listings where a paid search campaign is in place, whereas those few who still read the locals can easily lose a listing when skimming over the 2-by-4-inch, black-and-white local listing ad below the fold on page 6 of the real estate section.
Also, tracking view is much more possible online than in print. With digital, the listing broker can quantify the amount of consumer engagement by tracking impressions and landing pages, while with print, the only traceable functionality is the “Mention that you saw this ad in the _____ News!” line at the bottom of the page.
I believe there is a place for both, as newspapers begin to restrict premium content to paying subscribers, so too will social media restrict access to those who are helping to feed the base of the social platforms. They both can co-exist and feed what is the ultimate need of the consume, information on the most expensive solution they will ever purchase.
#LizBobeck
Now we are seeing where the vast majority of US Adults, 164 million of us, read newspaper content either online or in print. 34 million of those view the newspapers online or on a mobile device, up 58% year over year. The trend is that as Americans age and get older, we will be viewing the newspaper online. Will we be viewing the advertisements too????
There was a time, not so long ago, when my family and I would sit down on Sunday morning to have breakfast and I would watch my dad read the newspaper from cover to cover. Now, he reads the news on his phone or on his laptop. Newspaper publishers miss my “old” dad, the one who would glance over the open houses every Sunday. However, that dad just doesn't exist anymore. The same goes for so many other moms and dads who read the news every Sunday.
The survival of regional/national publications and death of local publications causes major problem for real estate professionals because many brokerages prefer smaller publications because the major/regional pubs are very costly. We advertise in the local paper, The Resident because our Niche is Historic +Avondale +Riverside +Sanmarco +Springfield and +Ortega.
They see local publications as a way to stay connected with their local consumers, where regional publications aren’t as hyperlocal with the listings they share in their newspapers. Regardless, so many local real estate agents beg their brokers to continue print media campaigns, not thinking of the return on investment (ROI) print has, just wanting coverage in as many different media as they possibly can. According to the National Association of Realtors, more than 90 percent of homebuyers begin their search online, while only 27 percent stated that they bought a house they saw in the newspaper.
Another major concept to think about in this argument is the functionality behind listing online versus listing in print. National listings solution providers like realtor.com, Trulia and Zillow have theorized major search metrics in optimizing the amount of eyes viewing a particular listing, especially listings where a paid search campaign is in place, whereas those few who still read the locals can easily lose a listing when skimming over the 2-by-4-inch, black-and-white local listing ad below the fold on page 6 of the real estate section.
Also, tracking view is much more possible online than in print. With digital, the listing broker can quantify the amount of consumer engagement by tracking impressions and landing pages, while with print, the only traceable functionality is the “Mention that you saw this ad in the _____ News!” line at the bottom of the page.
I believe there is a place for both, as newspapers begin to restrict premium content to paying subscribers, so too will social media restrict access to those who are helping to feed the base of the social platforms. They both can co-exist and feed what is the ultimate need of the consume, information on the most expensive solution they will ever purchase.
#LizBobeck
Monday, December 2, 2013
AgentMatch - The Skinny on this great customer solution in a crazy Real Estate world!
What is AgentMatch?
I pulled this data directly from the National Association of Realtors AgentMatch site. AgentMatch is a new system that will allow Buyers and Sellers of Real Estate to SEE the actual results of Real Estate Agents. So now consumers will have more power to see if an agent is brand new or inexperienced or taking listings and sitting on them. After all, results speak louder than anything else, and that is the hope with AgentMatch, to show the numbers and separate the weak agents who bring down the industry. Order takers belong in other industries!
Realtor.com® realized there was something missing in the real-estate world; an easy way for sellers to find experienced and compatible listing agents. AgentMatch uses data, not word-of-mouth. When looking to sell your home, we understand what information matters. Rather than selecting agents by advertising or promotional incentives, we leverage statistics and data from mls's to display agents that are active and recommended.
We then give you lots of rich profile content about these agents to explore if you think they might be a fit…and no gimmicks either, just the phone number and email address if you want to contact them!
How It Works
Sell for the right price at the right time.
Currently Supported Locations:
- Northern Colorado: Boulder, Fort Collins, Greeley, Longmont, and Loveland/Berthoud
- Las Vegas Valley: Las Vegas, North Las Vegas, Henderson and Boulder City
Jacksonville, FL is probably going to be serviced when all the major cities are added. Looking forward to showing my clients, customers and prospective new clients my abilities and how I have helped people with real estate.
#LizBobeck
I pulled this data directly from the National Association of Realtors AgentMatch site. AgentMatch is a new system that will allow Buyers and Sellers of Real Estate to SEE the actual results of Real Estate Agents. So now consumers will have more power to see if an agent is brand new or inexperienced or taking listings and sitting on them. After all, results speak louder than anything else, and that is the hope with AgentMatch, to show the numbers and separate the weak agents who bring down the industry. Order takers belong in other industries!
Realtor.com® realized there was something missing in the real-estate world; an easy way for sellers to find experienced and compatible listing agents. AgentMatch uses data, not word-of-mouth. When looking to sell your home, we understand what information matters. Rather than selecting agents by advertising or promotional incentives, we leverage statistics and data from mls's to display agents that are active and recommended.
We then give you lots of rich profile content about these agents to explore if you think they might be a fit…and no gimmicks either, just the phone number and email address if you want to contact them!
How It Works
- AgentMatch uses your home address to determine all agents in your area.
- Using these statistics, AgentMatch presents the active selling agents in your area.
- We provide a view into the details and past recommendations that help you choose the agent that’s right for you.
- AgentMatch analyzes the following statistics based on your home address:
- Number of homes currently for sale
- The agent's average sold to list price in the past 6 months
- Number of homes the agent sold in the past 6 months
- The agent's average days on market in the past 6 months
Sell for the right price at the right time.
Currently Supported Locations:
- Northern Colorado: Boulder, Fort Collins, Greeley, Longmont, and Loveland/Berthoud
- Las Vegas Valley: Las Vegas, North Las Vegas, Henderson and Boulder City
Jacksonville, FL is probably going to be serviced when all the major cities are added. Looking forward to showing my clients, customers and prospective new clients my abilities and how I have helped people with real estate.
#LizBobeck
Why Home Values Will Continue Higher (For Most)
This article is from my fellow Realtor in Tallahassee, FL, +Joe Manausa, even though it is from Tallahassee, it is still good content as Tally is still located in Florida, last time I checked.
As more areas and price ranges reach market equilibrium, we are seeing home values move higher. If you are wondering if this trend will start to cool for homes for sale in Tallahassee, I would tell you that it is highly unlikely when we consider two key points. Latest Trends Support Continued Growth!
Average home values for all but one month this year have been above the one-year trend line. This suggests that we are in a very strong trend that should continue moving in the same direction. But there is another reason why we suspect average home values in the Tallahassee real estate market will continue to rise.
Home Values Are Still Below Replacement Cost (We see the same thing here in Jacksonville)
The market is always seeking cost … but what does this mean? When the supply of homes greatly exceeds the number of buyers, we say that we are in a buyers market and homes will often sell below what it would cost to replace them. When the supply of homes does not keep pace with demand, then buyers will pay a premium to get a home, often at prices well above what it would cost to replace them. Regardless of the market, home values typically fluctuate at or near the cost of replacement. When values get too far away from replacement cost, the market shifts to move values back in line. Why? Because builders will stop building if they cannot get their cost and profit back on sale. But as soon as they can build a home for profit, they do so.
I hope the trend explaining real estate market cycles helps you understand the overall market. But you need to know that supply and demand are in balance for only certain price points, while some are still dealing with an imbalance between the number of homes for sale versus the number of qualified buyers in the market. Specifically, high end homes are going to continue to fight this imbalance, with the likely result being continued declining values.
It will be interesting to see how higher priced homes and lower priced homes move in the next few months. There will always be fewer buyers for million dollar properties. However, it will be more interesting to see how much higher the lower priced properties will rise, probably to somewhere around the cost to build new.
#LizBobeck
As more areas and price ranges reach market equilibrium, we are seeing home values move higher. If you are wondering if this trend will start to cool for homes for sale in Tallahassee, I would tell you that it is highly unlikely when we consider two key points. Latest Trends Support Continued Growth!
Home Values Are Still Below Replacement Cost (We see the same thing here in Jacksonville)
The market is always seeking cost … but what does this mean? When the supply of homes greatly exceeds the number of buyers, we say that we are in a buyers market and homes will often sell below what it would cost to replace them. When the supply of homes does not keep pace with demand, then buyers will pay a premium to get a home, often at prices well above what it would cost to replace them. Regardless of the market, home values typically fluctuate at or near the cost of replacement. When values get too far away from replacement cost, the market shifts to move values back in line. Why? Because builders will stop building if they cannot get their cost and profit back on sale. But as soon as they can build a home for profit, they do so.
I hope the trend explaining real estate market cycles helps you understand the overall market. But you need to know that supply and demand are in balance for only certain price points, while some are still dealing with an imbalance between the number of homes for sale versus the number of qualified buyers in the market. Specifically, high end homes are going to continue to fight this imbalance, with the likely result being continued declining values.
It will be interesting to see how higher priced homes and lower priced homes move in the next few months. There will always be fewer buyers for million dollar properties. However, it will be more interesting to see how much higher the lower priced properties will rise, probably to somewhere around the cost to build new.
#LizBobeck
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