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Controversy Continues Over Rising Home Prices

Once again lending practices have eased up. The Federal Reserve in a recent survey of Senior loan officers showed: an average of 4.6 percent of lenders surveyed acknowledged easing lending standards for prime residential loans and 16 percent of lenders surveyed reported an increase in demand for loans to subprime borrowers

The 2013 numbers on housing and the economy look eerily similar to 2005, the year before the housing bubble burst brought the economy down with it. While some of the 2013 numbers look better than 2005, other coincidental indicators are reason for concern. The falloff at furniture and appliance stores suggests homeowners may be stretched to make monthly mortgage payments–even in an era, until recently, of low mortgage rates. » Read More

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**************************************************************************** © 2016 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc ®. Equal Housing Opportunity. Privacy Policy Sherry Fields 1020 South Ave. W., Missoula, MT 59801 | Phone: (406) 207-8448 | Email: Sherry.Fields@bhhsmt.com *******************************************************************************

Finally Some Good News For Those Who Have Had A Foreclosure

Logo of the Federal Housing Administration.

Logo of the Federal Housing Administration. (Photo credit: Wikipedia)

Finally, someone in Washington is recognizing that the vast majority of homeowners hit with this housing foreclosure/short sale crisis were the victims in all of this. Yes they defaulted on their payments, but almost always there were extenuating circumstances.  More often than not they were sold a loan that the lender knew was the wrong product but sold it anyway and when anything when financially wrong – health, job, divorce even death – they were in trouble.

I am glad to see that they will allow those that re-establish their credit scores can re-apply for homeownership after 12 months.

The Federal Housing Administration (FHA) is allowing borrowers who went through a bankruptcy, foreclosure, deed-in-lieu, or short sale to reenter the market in as little as 12 months, according to a mortgage letter released Friday.


 

Borrowers who experienced a foreclosure must wait at least three years before getting a chance to get approved for an FHA loan, but with the new guideline, certain borrowers who lost their home as a result of an economic hardship may be considered even earlier.

For borrowers who went through recession-related financial event, FHA stated it realizes “their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”

In order to be eligible for the more lenient approval process, provided documents must show “certain credit impairments” were from loss of employment or loss of income that was beyond their control. The lender also needs to verify the income loss was at least 20 percent for a period lasting for at least six months.

Additionally, borrowers must demonstrate they have fully recovered from the event that caused the hardship and complete housing counseling.

Transunion Credit Score

Transunion Credit Score (Photo credit: i am real estate photographer)

According to the letter, recovery from an economic event involves reestablishing “satisfactory credit” for at least 12 months. Criteria for satisfactory credit include 12 months of good payment history on payments such as a mortgage, rent, or credit account.

The new guidance is for case numbers assigned on or after August 15, 2013, and is effective through September 30, 2016.

 

 

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**************************************************************************** © 2016 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc ®. Equal Housing Opportunity. Privacy Policy Sherry Fields 1020 South Ave. W., Missoula, MT 59801 | Phone: (406) 207-8448 | Email: Sherry.Fields@bhhsmt.com *******************************************************************************

How Does Housing Inventory Affect Value?

From –The KCM Blog – House Pricing is Still about Supply and Demand

 


Depending on where you live, housing markets today, can be very different. Reading the news headlines can be very confusing.  Some say inventory is down and home values rising rapidly while others are talking about the influx of REO (Real Estate Owned properties by Banks), and still others indicate that the market is beginning to balance.

One thing is clear, markets are very regional and can be very different. Florida continues to be plagued by Foreclosures while many other states have leveled out. The eastern sections are seeing more REOs because they are judicial states that had/have more red tape involved with the foreclosure process.

But through it all, as the KCM Blog states – the market is still about supply and demand.

 

 

iStock_000009109354XSmallKnowing how much inventory is for sale is crucial to determining where home values are headed. Pricing of any item is determined by supply and demand: how many items are available in relationship to how many want to buy that item. The reasons for the strong year-over-year home appreciation numbers we have been seeing is simple to explain: demand for housing is up and the supply of homes for sale has been at historic lows. But that is beginning to change.

 

The months’ supply of available housing inventory, as reported by the National Association of Realtors, has increased from 4.3 months this past January to the current number of 5.2 months. And it seems inventory will continue to increase as we move forward.

 

Last week, Realtor.com released their National Housing Trend Report which looked at the movement in inventory levels of homes for sale across the country. Here are two major findings of the report:

 

1.) Dramatic year-over-year inventory declines have evaporated.

 

Nationally inventories in July are only 5.24 percent below the level of a year ago compared to being down 16.47 percent year-over-year in January.

 

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2.) Inventory declines decrease in local markets.

 

The number of markets with decreases in year-over-year inventory declined from 125 in June to 118 in July. This suggests that fall inventories in some markets may return to levels of a year ago.

 

In the report, Steve Berkowitz, CEO of Move, Inc. explains the impact of these findings on home values:

 

The recovery is entering a new phase where inventory shortfalls are no longer the driving force behind changes in housing prices in many markets. Larger inventories, especially in the hotter markets that experienced rapid price increases in the spring, are expanding buyers’ choices and helping to moderate price increases.

 

Don’t get carried away with recent news headlines when pricing your home. Let a real estate professional explain what the above information means to the current value of your house.

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**************************************************************************** © 2016 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc ®. Equal Housing Opportunity. Privacy Policy Sherry Fields 1020 South Ave. W., Missoula, MT 59801 | Phone: (406) 207-8448 | Email: Sherry.Fields@bhhsmt.com *******************************************************************************

New Listing 360 Sharrott Hill Rd.

360 Sharrott Hill Rd Stevensville MT 59870Sold1

Housing Trends June 2013

Trends for Non-Distressed and Distressed

Properties Diverge as Investors Pull Back

 Investors have significantly reduced their home purchase activity in recent months, prompting divergent trends among property types.

 The non-distressed market continues to be strong, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey results. The average numbers of offers and sales-to-list price ratios have increased in recent months while average time on market for non-distressed properties has declined.

 Non-distressed properties received 2.3 offers in May, based on the three-month moving average, the third consecutive monthly increase for the metric. “Still really short of inventory to show my buyers and we face multiple offers with people willing to pay over the appraised price of the property,” according to a real estate agent in California.

Average offers on non-distressed properties vary by region, with Arizona, California and Nevada leading the country. Dot ChartNon-distressed properties in California received 4.1 offers in May, based on the three-month moving average. Non-distressed properties in Arizona and Nevada received 3.1 offers in May, based on the three-month moving average.

Properties in Farmbelt states of Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin received 1.4 offers in May, based on the three-month moving average. Properties in the South and Industrial Midwest also averaged fewer than 2.0 offers in May.

Sales-To-List-Price-Ratios

Sales-to-list price ratios on non-distressed properties increased for their fifth consecutive month to 97.6%, based on the three-month moving average.

 Properties in the West again outpaced the national average. In California, the sales-to-list price ratio was 99.8% in May, based on the three-month moving average. “List prices in most cases are now simply the opening bid for an auction,” according to a real estate agent in the San Francisco area.

Properties in the Northeast and Industrial Midwest had the lowest sales-to-list price ratios at 96.0% in May, based on the three-month moving average. “We have not seen the huge jump that some major cities have, however, if the house is priced right it will sell for very close to asking price,” according to a real estate agent in Missouri.

 And time on market for non-distressed properties declined for the third consecutive month to 9.2 weeks, based on the three-month moving average. Time on market for non-distressed properties in California was 4.2 weeks in May, based on the three-month moving average, while non-distressed properties in the Farmbelt, Northeast and South averaged about 12.0 weeks.

Distressed Property Trends

 Bar graphTrends for distressed properties diverged from non-distressed properties in May as some investors have switched business strategies from buying properties to selling them. Investors accounted for 20.2% of home purchases in May, based on the three-month moving average, down significantly from a peak share of 23.1% in February.

 

The number of offers on real-estate owned properties and short sales declined in May compared with the previous month, based on the three-month moving average. Sales-to-list price ratios also declined on short sales and damaged REO properties.

 And time on market increased significantly for short sales while staying relatively steady for REOs in May compared with April.

The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey involves approximately 2,000 real estate agents nationwide each month and provides up-to-date intelligence on home sales and mortgage usage patterns.

 Residential Real Estate Pricing and Commission Metrics

Average Sales to Listing Price Ratio

Past 12 Months

Region

Damaged REO

Move-In Ready REO

Short Sale

Non- Distressed

AZ & NV

95%

102%

100%

97%

California

99%

102%

99%

99%

Farmbelt

93%

94%

95%

96%

Florida

97%

96%

96%

94%

Industrial Midwest

94%

98%

92%

95%

Northeast

90%

96%

91%

96%

Oil Producing

94%

95%

95%

97%

Pacific NW

96%

98%

98%

97%

Rocky Mountain

95%

98%

95%

96%

South

96%

96%

95%

96%

National Average

95%

97%

96%

96%

Average Listing Side Commissions

Past 12 Months

Region

Damaged REO

Move-In Ready REO

Short Sale

Non- Distressed

AZ & NV

2.38%

2.57%

2.99%

2.87%

2.38%

California

2.44%

2.54%

2.93%

2.67%

2.44%

Farmbelt

2.66%

2.68%

3.03%

2.92%

2.66%

Florida

2.67%

2.71%

2.97%

2.92%

2.67%

Industrial Midwest

2.82%

2.72%

2.91%

2.86%

2.82%

Northeast

2.68%

2.80%

2.90%

2.71%

2.68%

Oil Producing

2.61%

2.73%

2.84%

2.77%

2.61%

Pacific NW

2.52%

2.58%

2.92%

2.79%

2.52%

Rocky Mountain

2.62%

2.68%

2.90%

2.78%

2.62%

South

2.78%

2.74%

2.91%

2.81%

2.78%

National Average

2.68%

2.70%

2.93%

2.80%

2.68%

Average Buy Side Commissions

Past 12 Months

Region

Damaged REO

Move-In Ready REO

Short Sale

Non- Distressed

AZ & NV

2.83%

2.83%

2.78%

2.91%

California

2.70%

2.70%

2.69%

2.66%

Farmbelt

2.80%

2.82%

2.75%

2.74%

Florida

2.86%

2.85%

2.89%

2.94%

Industrial Midwest

2.91%

2.86%

2.80%

2.87%

Northeast

2.79%

2.74%

2.70%

2.65%

Oil Producing

2.83%

2.88%

2.87%

2.94%

Pacific NW

2.74%

2.83%

2.76%

2.78%

Rocky Mountain

2.84%

2.87%

2.83%

2.88%

South

2.88%

2.88%

2.86%

2.90%

National Average

2.84%

2.83%

2.79%

2.83%

Average Property Price by Region Past 12 Months

Region

Damaged REO

Move-In Ready REO

Short Sale

Non- Distressed

AZ & NV

$258,382

$168,910

$158,802

$246,354

California

$250,889

$305,833

$286,267

$467,536

Farmbelt

$76,771

$157,864

$138,498

$193,632

Florida

$97,599

$198,536

$146,194

$226,506

Industrial Midwest

$58,161

$145,233

$146,339

$198,803

Northeast

$166,829

$275,559

$210,313

$298,887

Oil Producing

$79,069

$158,917

$153,265

$214,538

Pacific NW

$138,058

$243,621

$184,802

$304,533

Rocky Mountain

$135,942

$210,958

$187,031

$277,753

South

$79,685

$165,500

$161,718

$232,540

National Average

$109,974

$200,195

$191,421

$261,562

Map

reprinted with permission: Campbell Surveys – Housing Trends update is published monthly and is available only to real estate agents who are part of the Campbell Housing Pulse Survey Panel For information on joining the panel contact John Campbell at 202-363-2069 email “ john at houseingpulse.com”

 

NAR Housing Report March 2013

I don’t know about you but just reading through the report made my head spin.  One place says that the median price for a home is $173,600 in February another sections says “The median price of an existing single-family home averaged $176,500 over the last six months, down from $180,000 in the previous six months”. And the final paragraph said “The median price in the West rose to $237,700, 22.7 percent above February 2012, but off 0.4 percent from January.

   So what is the take away from the report?

I think what the report is showing us is that there is still strong interest and activity in the housing market nationally and in individual areas. Median prices in February reflect some of the slowest times historically in Real Estate and not much is news there.

One of the bigger issues is the lack of inventory, where sellers are reluctant to list their homes as the market continues to vacillate. When you take into consideration that many of us have seen the equity in our homes dry up over the past 6 – 7 years, it is no wonder that sellers are reluctant.

Here in the west we are seeing recovery in the values in some segments, while others are continuing to decline. The truth is that while these facts remain, the shortage of homes on the market will bring more buyers to your home and an opportunity to sell at a positioned advantage.

Picture this – a few months ago an open house was lucky to generate 5 viewers, while recently we are seeing 20 – 35 people coming to see what is available. These same viewers are visiting multiple homes because there are so few to see that meet their needs. And we are seeing these buyers actually move into a closed sale.

 

248 Grandview

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Jayden Fred Fundraiser

July 20, 2012

Today was the annual Jayden Fred fundraiser Golf Tournament. It was a great day weather wise, the rain held off, although cloudy in the early morning the sun burned off the clouds and it was a beautiful sunny day.  Many volunteers made this whole thing happen, I was on the 5th Tee for the first two hours where the golfers had the opportunity to hit a hole in one for a Honda Civic donated by University Motors.

 

alt="Sherry Fields Real Estate"

Osprey Ollie and Carrie Sue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Osprey Ollie joined us to cheer the golfers on to a hole in one and CarrieSue was there mugging it up for the camer in front of the Honda Civic.

alt="Sherry Fields Real Estate"More volunteers that’s Allie and Kim checking out the carts.

 

 

 

 

 

alt="Sherry Fields Real Estate"

 

 

 

 

And here are “some of the Fred’s” watching the golfers on the Betting Tee

 

 

 

 

alt="Sherry Fields Real Estate" 

 

And one more of CarrieSue, Ollie and Allie (she was the photographer on hand)

 

 

 

 

 

 

For the second half of my shift I got to sit at the hole and watch for the hole in one to make sure everything was on the up and up. One golfer came very close to winning … his ball hit the flag marking the cup and dropped right beside it. He and his partners birdied that hole no problem.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Featured Listing – 5211 Frazer

Sorry Sold!

 5 Bedrooms, 4 Full Baths & 2 Furnaces

Lovely executive home with many upgrades. All facing the Maloney Ranch seven acre park.
5 bedrooms and 4 full baths, a media room, finished basement and wet bar with a pool table in the family room. Definitely not a drive by. Over 2700 square feet on the main and upper level with additional 1696 square feet finished below.
Main floor master bedroom & huge bathroom, garden tub, large shower. Upgraded counters kitchen cabinets in kitchen. Two furnaces to control temperatures and save. Oversize garage with small work area and full upstairs unfinished but lots of potential. Fenced yard & dog kennel. Home Steps 2 year Home Warranty for Owner occupied Buyers. Being Sold “As Is” Pre-qualification letter required with all offers allow 2-3 business days for response.

Why Should You Buy A Home?

What is the most common advice we hear from our family and friends after knowing we’ve been renting a place for some time?  More often than not, “You should buy a home” is what we hear them say. You probably listen and wonder if you finally decide to buy one. And why should you?  Here are the reasons why:

Pride of Ownership

It is very nice to hear that you have a house you can call your own. The pride of owning a house is the prime reason why people dream of having their own home. You can almost do anything you want with your own house; the arrangement, the paint, the facilities and the furniture that goes with it. You can turn the house into an instant hit depending on your style and taste. Owning a house makes your family proud to have a place of shelter, a place of stability and security. A house also serves as a good investment for the family.
Appreciation

Owning a real estate gives you an edge because over the years, real estate has consistently been appreciated. The more developed is the property, the higher is the value amounted for your home. Investing on Scottsdale Homes can be a means of protection against inflation. Because location matters in the real estate properties, make sure that your home is located in a very marketable area.

Equity and Low Interest Loans

Equity is the value of the home. When a house is mortgaged, the down payment initially paid for it is called its equity.  Additional payment on the mortgage increases the value of the house.  When the value of the house rises, so is its equity.  Equity is very useful in obtaining home equity loans which are of low interest using the home as collateral. The owner can also borrow against a home’s equity for purposes like home improvement, medical expenses, tuition fee or as a starting capital for a new business.

Tax Savings

Another benefit of owning a house is the tax savings. The interest paid in the mortgage payments can be used as a tax write-off. It is usually a very big amount and this can save you a lot in the payment of taxes.

Preferential Tax Treatment

Capital assets obtain preferential tax treatment. Once the profit derived from selling your own home is more than the allowable exclusion, that profit is deemed as a capital asset as long as you own the house for over a year.

The advantages of owning a home outweigh the risks. It comes down to the simple fact that you have your own a home. Owning a home is the biggest decision as well as the most vital thing you will ever perform in your life. You need to know that rent is zero investment. Why not own a house if you can. And try to check out dream houses like Scottsdale Homes. Scottsdale AZ Real Estate can aid you in finding a home that is coupled with a good investment and pride.