HOME BUYING TIPS FOR PROSPECTIVE BUYERS

Buying a home is a massive decision and includes multiple, long-term financial and lifestyle obligations. The average person spends around 1/3 of their income on their home. You’ll still need to do the work to make sure your personal finances and holistic life picture are also in alignment before you buy, as well of the work it takes to ensure that your real estate and mortgage decisions are sustainable and smart, over the long-term. A good Buyer’s Agent is invaluable to a Buyer, and can be the difference between a wonderful transaction, and a nightmare. Here is an interesting article worth a few minutes of your time:

 

 

HOME BUYING TIPS FOR PROSPECTIVE BUYERS

This informative piece highlights some of the major things to consider before purchasing a home. As a buyer’s agent, I am always here to help…

 

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Builder confidence rises for the third consecutive month

Builder confidence rises for the third consecutive month
Builder confidence in the market for newly built, single-family homes edged up two points to 21 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for December. This marks a third consecutive month in which builder confidence has improved, and brings the index to its highest point since May 2010.

“This is the first time that builder confidence has improved for three consecutive months since mid-2009, which signifies a legitimate though slowly emerging upward trend,” said NAHB Chief Economist David Crowe. “While large inventories of foreclosed properties continue to plague the most distressed markets and consumer worries about job security and the challenges of selling an existing home remain significant factors, builders are reporting more inquiries and more interest among potential buyers than they have seen in previous months.”

Each of the HMI’s three component indexes registered a third consecutive month of improvement in December. The component gauging current sales conditions rose two points to 22, while the component gauging sales expectations in the next six months edged up one point to 26. The component gauging traffic of prospective buyers gained three points to 18, which is its highest level since May 2008.

 

California home sales, median price rise in November

California home sales, median price rise in November
California home sales posted an increase both on a monthly and annual basis in November, marking the fifth consecutive month of year-to-year sales increases, according to figures released by C.A.R.

Closed escrow sales of existing, single-family detached homes in California rose to a seasonally adjusted 503,570 units in November, up 2.1 percent from a revised 493,140 in October, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

The November statewide median price of an existing, single-family detached home sold in California was $280,960, up 1.0 percent from $278,060 in October but down 5.2 percent from the $296,480 median price recorded for November 2010…

 

 

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Orange County (California) Real Estate Market Charts for Single Family Residential Detached Homes – Nov. ’11

Chart Definitions & Analysis:

Median Sold Price by Month- This chart shows the middle price point of a group of properties that successfully Sold during the time period chosen. Thus, half sold for more than the median and half sold for less. Tracking the movement of median prices over time provides a good visual indicator of the direction market forces are pushing prices.

Median for sale Price vs. Median sold price- This chart shows the median price of properties listed For Sale (a measurement of seller expectations) compared with the median price of properties that have successfully Sold  (a reflection of buyer activity) during the time period chosen. The difference in these two median prices speaks volumes about how buyers and sellers perceive the same set of market conditions. In a balanced market most properties “sell” within 10% of their “final” list price.

The Number of Sold Properties by Month- This chart shows the number of properties that sold (closed escrow) each month for the time period chosen. This sale provides useful insight into how consumer demand is changing over time.

The Number of Under Contract Properties by Month- This chart shows the number of properties that went under contract each month during the time period chosen (a buyer and seller have successfully negotiated a purchase contract and have opened escrow). This metric is a direct measure of current sales activity and a leading indicator of market demand.  This month shows an increase compared to the last month.

The Number of For Sale Properties by Month- This chart shows the number of the properties that were For Sale each month during the time period chosen. This sales metric provides useful insight into the overall supply of properties that exist on a monthly basis.

The Number of New Properties Listed by Month- This chart shows the number of the properties that came into the market each month for the time period chosen. This metric is a leading indicator of the “rate” at which new inventory is entering (resupplying) the market. A useful exercise is to compare it with the “rate” at which properties are leaving the market (the number of under contract properties which represent current demand). This month shows a decrease compared to the last month.

The Number of Expired Listings by Month- This chart shows the number of properties that expired and came off the market each month for the time period chosen. This metric is an indicator of the “balance” between supply and demand in the market.

Supply & Demand by Month- This chart shows the basic supply and demand relationships that existed each month for the time period chosen. The combined metric provides valuable insight into current market conditions because it reflects the collective actions of all participants (buyers and sellers).

Month’s Supply of Inventory (MSI)- This chart shows the time, in months, that it would take to “sell” the remaining inventory for the month in question. This metric is a “one number summary” of how market supply and demand are changing from month to month. (0-3months– indicate that supply & demand are converging, 4-6 months – indicate that S&D are in balance, 7+ months – indicate that S&D are diverging). This month shows a decrease compared to the last month.

Average Days on Market by Month (Avg DOM)- This chart shows the average amount of time, in days, that it has taken to get a property Under Contract during any given month. DOM, for any individual property, is defined as the list to the under contract date. This month shows an increase compared to the last month.

>>>  Check my WEBSITE   to see the Charts  <<<

Los Angeles County (California) Real Estate Market Charts for Single Family Residential Detached Homes – Nov. ’11

Chart Definitions & Analysis:

Median Sold Price by Month- This chart shows the middle price point of a group of properties that successfully Sold during the time period chosen. Thus, half sold for more than the median and half sold for less. Tracking the movement of median prices over time provides a good visual indicator of the direction market forces are pushing prices.

Median for sale Price vs. Median sold price- This chart shows the median price of properties listed For Sale (a measurement of seller expectations) compared with the median price of properties that have successfully Sold  (a reflection of buyer activity) during the time period chosen. The difference in these two median prices speaks volumes about how buyers and sellers perceive the same set of market conditions. In a balanced market most properties “sell” within 10% of their “final” list price.

The Number of Sold Properties by Month- This chart shows the number of properties that sold (closed escrow) each month for the time period chosen. This sale provides useful insight into how consumer demand is changing over time.

The Number of Under Contract Properties by Month- This chart shows the number of properties that went under contract each month during the time period chosen (a buyer and seller have successfully negotiated a purchase contract and have opened escrow). This metric is a direct measure of current sales activity and a leading indicator of market demand.  This month shows an slight increase compared to the last month.

The Number of For Sale Properties by Month- This chart shows the number of the properties that were For Sale each month during the time period chosen. This sales metric provides useful insight into the overall supply of properties that exist on a monthly basis.

The Number of New Properties Listed by Month- This chart shows the number of the properties that came into the market each month for the time period chosen. This metric is a leading indicator of the “rate” at which new inventory is entering (resupplying) the market. A useful exercise is to compare it with the “rate” at which properties are leaving the market (the number of under contract properties which represent current demand). This month shows a decrease compared to the last month.

The Number of Expired Listings by Month- This chart shows the number of properties that expired and came off the market each month for the time period chosen. This metric is an indicator of the “balance” between supply and demand in the market.

Supply & Demand by Month- This chart shows the basic supply and demand relationships that existed each month for the time period chosen. The combined metric provides valuable insight into current market conditions because it reflects the collective actions of all participants (buyers and sellers).

Month’s Supply of Inventory (MSI)- This chart shows the time, in months, that it would take to “sell” the remaining inventory for the month in question. This metric is a “one number summary” of how market supply and demand are changing from month to month. (0-3months– indicate that supply & demand are converging, 4-6 months – indicate that S&D are in balance, 7+ months – indicate that S&D are diverging). This month shows a decrease compared to the last month.

Average Days on Market by Month (Avg DOM)- This chart show sthe average amount of time, in days, that it has taken to get a property Under Contract during any given month. DOM, for any individual property, is defined as the list to the under contract date. This month shows an increase compared to the last month.

>>>  Check My  WEBSITE   to see the Charts  <<<

 

 

New-home sales edge higher

Buying a home is a massive decision and includes multiple, long-term financial and lifestyle obligations. The average person spends around 1/3 of their income on their home. You’ll still need to do the work to make sure your personal finances and holistic life picture are also in alignment before you buy, as well of the work it takes to ensure that your real estate and mortgage decisions are sustainable and smart, over the long-term. A good Buyer’s Agent is invaluable to a Buyer, and can be the difference between a wonderful transaction, and a nightmare. Here is an interesting article worth a few minutes of your time:

CNNMoney

New-home sales edge higher
The Census Bureau reported an annual sales rate of 307,000 new homes last month, up 1.3 percent from a downwardly revised rate of 303,000 homes in September…