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Contents
1.
The Here and Now –
Generation X
2.
First Time Buyer Tips
3.
Jefferson County sales
March 2004
4.
What to make of real
estate trends
5.
Staging your house for
sale
6.
Lending – 30 year fixed
rate, going up?
7.
Events coming up…
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THE
HARDING REPORT / May 2004
1. The Here and Now – Generation X
The other day I was
sitting at a table along with 150 other local realtors in the
Clarion Hotel , Shepherdstown, listening to Terry Watson teaching us
the latest hot tips on selling real estate. Terry is a very funny,
uber-realtor from Chicago who travels the country sharing his wisdom
on all things real.
We learned many
interesting things that day. Along with the benefits of hair
analysis, hands-free cell phone head-sets and the latest in Japanese
power-toilets, Terry told us that what we need to understand most is
that today’s first time buyers are more than likely to be
“Generation Xers”.
What are Generation X
home-buyers like? They are savvy thirty-somethings who like to be
responded to immediately, they probably have done their home-work on
the Net and know the area better than you do, they are hyper
demanding and have the attention span of a mosquito. I suddenly
realized Terry was talking about me!
And it speaks to the
hundreds of new families who are moving into the area at the moment.
Many are Generation Xers, who bring fresh insight and excitement to
the area. They also bring their own needs and personalities as an
age cohort.
2. First Time Home
Buyers - Tips
With the booming
property market, first time home buyers can find it hard to get into
the market. Here are ten tips to better their chances of success:
* Examine their
credit history, clear up any issues prior to applying for a loan
* Obtain a
pre-qualification letter from a lender before making offers
*Determine how much
they can afford before searching for their dream house
* Start saving now
for their down payment
* Research various
mortgage loans available
* Avoid making any
major purchases
* Not to switch
banks or move money around
(Real Estate
Broker's Insider)
3.
Jefferson County Property Sales March 2004
March
was a HUGE month for
property sales in Jefferson County.
*
Total dollar volume of property sold increased by a massive 51.2%
from the same period in 2003.
*
Average sale price remained steady at a little over $215,000
*
Average sale price as a percentage of list price increased from 92.9
% to 98.0%
*
Of the 71 sales in March, 49 were financed through conventional
loans and 11 through FHA loans. There were more cash sales (4) then
VA financed sales (3).
www.mris.com
4.
What To Make Of Soaring Real Estate
Trends
You couldn't beat
the last week of April for happy real estate news. While 2004 was
supposed to be a year of modest home sales and somewhat higher
interest rates, what we're seeing this year -- so far -- is
stunningly upbeat in many areas of the country.
This is all great and everyone loves a party. But are we looking at
data which represents performance from a period that's no longer
relevant?
Consider home
sales. If they closed in March then the likelihood is that loan
rates were locked in 30 to 45 days earlier -- that would be in
January and February. At the end of April, says Freddie Mac, typical
mortgage rates for 30-year, fixed-rate financing reached
6.01 percent with .7 points,
low by historic measures but as much as .43 percent higher than the
rates seen during the first two months of the year.
The questions to ask are:
-
Have we
suspended the laws of economics?
-
Is there no
sting from OPEC's soaring gasoline prices?
-
Can massive
federal deficits continue without impacting mortgage rates?
-
Even though
mortgage rates remain low by long-term standards, will today's
above-the-bottom rates reduce home sales? What if rates continue
to rise?
-
Employment nationwide
increased by
308,000 jobs
in March, but shouldn't we count the 1.4 million "persons not in
the labor force" not listed in the unemployment figures?
-
Can we continue
our vast payment imbalances with other countries and not suffer
any consequences?
As
an income-earning homeowner in the Washington metro area I am elated
by local real estate trends, I pray fervently and regularly that
they will continue and I look forward to home prices here which one
day rival those in San Francisco -- but I am also wary.
What's happening
in Washington is not necessarily happening elsewhere. With jobs, for
example,
Detroit
(down almost 21,000 jobs),
Boston
(more than 30,000) and
Los Angeles
(2,000 approx.) have all seen employment declines during the past
year.
Homes sales and prices are a by-product of many factors including
local job growth, economic expansion, rising incomes and tolerable
mortgage rates. The Washington metro area now has it all in real
estate terms -- but for how much longer no one case say.
(by Peter Miller,
Realty Times)
5.
Staging your
house for sale
Selling a house is a
lot like romance. It really pays to set the mood.
Real estate pros call it staging -- showcasing the best side of a
home to create interest and help you get top dollar.
Here are 10 tricks to
selling your home from the pros:
1. Make room.
Clear out as much furniture as you can. Put it in storage, give it
to Goodwill Industries or have a garage sale. Hallways and doorways,
in particular, need to be clear and open.
2. Use counter
intelligence.
Go through the house and clear off all the horizontal surfaces like
kitchen and bathroom countertops. Old magazines? Toss 'em.
Knick-knacks? Pack 'em. Counters need
to be clear and clean.
3. Follow your nose.
A home should smell good. That means no noticeable odor -- no pet
scent, no stale cooking smells and no cigarette smoke. "People just
don't realize how much odor plays into this," says Scott Griffith,
president of ERA Griffith Realty in Brighton, Mich.
4. Remember, the next
buyer is as lazy as you are.
If the property needs work -- dated wallpaper, ratty carpet -- have
it replaced now so that all buyers have to picture is moving day.
"Most people want it before they move in," says Myra Zollinger, a
partner with Coldwell Banker Realty Center in Chapel Hill.
5. Do the baby test.
Does your potential market include families with young kids? If so,
ask yourself, "Would I put my child down on this floor to crawl
around the room?"
6. Deep-six the
cigarettes.
Buyers are much more
sensitive to cigarette smells, says Zollinger. "If somebody's a
smoker, he doesn't smell it."
7. Make your home
ageless.
There's a difference between an old house and a classic home. "If
the house looks 40 years old with 40-year-old paint, 40-year-old
appliances and 40-year-old carpet, that's a hard sell," says Phipps,
president of Phipps Realty and Relocation Services in Warwick, R.I.
Keep everything fresh and up-to-date (read well-maintained) and you
have a solid home in an established neighborhood -- a real looker.
8. Let there be
light.
"People buy space and
light, for the most part," says Zollinger.
9. Get a home
inspection.
Most buyers will have one done anyway, says Zollinger. Do it now --
and make any needed repairs before you put the home on the market.
10. Learn to love
white walls.
When it comes to
walls, color is popular. The problem is that the next buyer might
not like the same colors. Paint is a relatively inexpensive way to
make a house look clean and fresh. And if you're going to repaint
prior to selling, stick with neutrals.
(www.bankrate.com,
July 1, 2003).
6. Lending -
Rates for 30-Year Mortgages Exceed 6 Percent for First Time This
Year
Apr. 30--Rates on 30-year mortgages climbed above 6 percent this
week for the first time in 2004, signaling an economic rebound but
triggering speculation that the housing market could soon cool off.
Still, Nevin said the
rise in rates is likely to lead more people to jump into the
home-buying market in coming weeks to escape even higher rates
expected in the next few months. More borrowers will simply opt for
adjustable loans with lower rates than fixed loans to keep their
payments manageable. Freddie Mac reported yesterday that rates on
30-year fixed-rate mortgages rose to a nationwide average of 6.01
percent, marking the sixth consecutive weekly increase since rates
hit a low for the year of 5.38 percent the week of March 18.
The mortgage giant's
nationwide survey of rates showed that the increase, up from 5.94
percent last week, left 30-year mortgages at their highest level
since they averaged 6.02 percent the week of Dec. 5. The survey
reflects what are known as conforming loans.
The rise in mortgage
rates reflects inflation concerns in the bond market. Amy Crews
Cutts, deputy chief economist at Freddie Mac, said investors are
encouraged about the economy's rebound but also worried about the
impact that could have on inflation and the Federal Reserve's
interest rate decisions. "Perhaps next week's Federal Reserve
meeting and the release of the April employment numbers will help
the market find a balance between the two influences," she said.
Information Systems.
Alan Gin, an economics professor at the University of San Diego,
said a tight supply of homes will keep prices rising -- although not
as rapidly as they have in recent years. But his outlook on
refinancing activity, which has fueled consumer spending activity
over the past few years while business investment remained off, was
more grim.
"One thing that's
kept the national economy going is that people are refinancing their
homes, lowering their payments, taking equity out and spending that
money," Gin said. "This increase in mortgage rates will slow
activity there and hurt the national economy."
(interest.com)
7.
Upcoming Events
-
May 8, Expo 2004 Livestock &
Horse Show, Jefferson County Fairgrounds. For more information
call (304) 724-1411.
-
May 7, 8, 9, 13, 14, 15 & 16,
“Grease” Old Opera House, Charles Town. For information or tickets
call (304) 725-4420 or (888) 900-SHOW.
-
May 14-16: Summit Point
Motorsports Park - 13th Annual Jefferson 500 and Grand Opening of
New Circuit. For more information call 304-725-8444.
-
May 14-16, Jefferson 500 Summit
Point Raceway. For more information call (304) 725-6512.
-
May 21-23, Charles Town Festival.
For information call (304) 725-2311.
-
May 28, J.B. Smith Memorial Golf
Tournament Sponsored by Charles Town Rotary Club. Locust Hill Golf
Course & Sleepy Hollow Golf & Country Club, Charles Town. For
information call Ann Smith (304) 725-8117 or Leslie Smith (304)
728-0318.
-
May 29-31: Summit Point
Motorsports Park - CCS Motorcycles. For more information call
304-725-8444.
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