Home prices rose in 18 of the 20 cities that are part of Standard & Poor’s Case-Shiller Index. It was the first quarterly increase in three years, providing a glimmer of hope that the housing market is beginning to make a recovery.

After three years of declines, home prices rose 2.9 percent in the quarter ended June 30, according to the report.

Las Vegas and Detroit, hit hard by the housing crisis and high unemployment, were the only two cities where prices continued to fall.

Cleveland, with a 4.2 percent gain in home prices between May and June, and San Francisco, with a 3.8 percent gain, were among those cities to realize the most gain.

Prices in the Miami metropolitan area rose 0.5 percent between May and June, improved from a 0.8 percent drop between April and May. However, year-over-year prices in the Miami area were down 23.4 percent.

“For the second month in a row, we’re seeing some positive signs,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s, in a news release.

As of the second quarter, average home prices across the U.S. are at similar levels to what they were in early 2003. However, from the peak in the second quarter of 2006, average home prices are down 30.2 percent.    

http://bit.ly/kI9an

Real Estate values and sales seem to be on the rise

The Clear Capital Report sees home prices rise across the country when analyzing quarterly results.  The report sees home value gains in all regions of the country, averaging out to 5%, with the Midwest gaining the most at 11.2%.  The real estate improvements are linked with summer being a buying season, increased investment opportunity and the previous large drop in home values.

The second quarter of 2009 followed a period of extremely low real estate activity, couple that with tax incentives, low mortgage rates and reduced home values, and the evidence of a true buyer’s market became omnipresent.  Acquiring a mortgage is probably still the most difficult part of the home buying process but money is strating to loosen.  Increased sales volume indicates an improvement in the real estate sector, a welcome sign for a beleaguered economy.

For a complete look at the Clear Capital report click here.

There is no doubt that the first time home buyer tax credit is a great thing but there are a few things to know before you assume that you qualify for the full $8,000.  The tax credit breaks down as follows:
Who qualifies? First time home buyers and people (or spouses) who have not owned a home for the previous 3 years.  You must purchase your home between January 1, 2009 and December 1, 2009.

• What qualifies for the first time home buyer’s tax credit? Only a primary house qualifies.  It does not matter if it is a single family home, duplex, townhome, condo, apartment or co-op, if it is a primary residence it will apply.

• What is the amount of the first time home buyer’s tax credit? $8,000 is the maximum amount of the credit.  There are 2 factors at play when it comes to getting the credit: The cost of the home and the income of the person or married couple purchasing the home.  The credit can be 10% of the closing price up to $8,000 or a person making $75,000 or less or a married couple making $150,000 or less are eligible for the full $8,000.

• Do you qualify for the first time home buyer’s tax credit if your income is higher? Yes and no.  If you make more than the $75,000/$150,000 limit you get less of a credit.  The maximum income is $95,000 for singles or $170,000 for couples.  If you make more than the maximum income you are not eligible for the tax credit.

The tax credit is a real boon for first time home buyers and does not have to be repaid.  If you qualify for the tax credit and have been considering purchasing a new home there could not be a better time.  Low interest rates, low home values and the first time home buyer tax credit all add up to the right time to call an experienced local Realtor.

Resource and for more information: Realtor.org

If you currently are in a situation where you must sell your home and you owe more on your home than what it is worth to sell, a short sale can be a very good solution to your problem. Many myths have evolved over time, but understanding the reality is a way to help yourself. Seven short sale myths are:

1. Short sales are impossible and never get approved. It is true that short sales are more difficult but they are not impossible. A Certified Distressed Property Expert has extensive training to help homeowners in distress.
2. Banks Don’t Accept Short Sales. In reality, banks are doing whatever they can to avoid a foreclosure.
3. You must be behind on your mortgage to negotiate a short sale. Many lenders today focus on verifiable hardship, monthly cash flow shortfall and insolvency – not just people in default.
4. Buyers Avoid Short Sales. Many agents report that buyers call them looking for short sales. Short sales are becoming synonymous with a “good deal”, specifically with international buyers.
5. Listing your home as a short sale is embarrassing. Recent estimates state that 1 out of 5 homeowners in the U.S. is in this situation. You are not alone!
6. Banks prefer to foreclose. Banks do NOT want to foreclose. Banks, investors and the federal government have all publicly stated that if a person qualifies for a short sale, then the deal needs to be considered.
7. There is not enough time to negotiate a short sale before my foreclosure. Many lenders today will stall a foreclosure up to the final day of the process, with a legitimate contract.

For more information about short sales go to About website.

Blend of information and member services provide marked improvements in short sale transactions.

AUSTIN, TEXAS – June 16, 2009 – Certified Distressed Property Experts (CDPEs) have reported a 49 percent decrease in the average time to complete a short sale after achieving the CDPE Designation, according to a new survey from the Distressed Property Institute. Before becoming a CDPE, the average time for these agents to close a short sale was 53.01 days, compared to 27.26 days after becoming a CDPE.

“No other real estate designation in the country can claim these results,” said Alex Charfen, co-founder and CEO of the Institute. “CDPEs are making a clear and definable difference in the real estate market by assisting distressed homeowners to stay in their homes or, when this is not possible, by helping them sell through a short sale.”

A short sale occurs when the lender accepts the selling price of the home, even if that is less than the mortgage balance. Recently announced program extensions of the government’s Making Home Affordable Program have supported short sales as an option to be considered for distressed homeowners.

“Long timeframes and the lack of success in closing deals are the top complaints among all parties involved in short sales,” Charfen said. “We’ve now shown that our systems and processes for real estate agents are proven to close these transactions more rapidly and help solve this issue.”

“This shortened timeframe will increase the amount of properties that sell, therefore decreasing the amount of homes being lost to foreclosure,” Charfen continued.

The survey also found that CDPEs have been able to keep distressed homeowners in their homes more than twice as often as lose a property to foreclosure. Among respondents, the average number of clients they had helped to keep their homes was 1.84, as opposed to 0.82 being lost to foreclosure.

“In these instances, there is no promise of income to the agent,” Charfen said. “This statistic shows how CDPEs are living the message of putting homeowners first, and creating success while doing it.”

Other key survey findings among CDPE-designated agents include:
• 40 percent of their active listings are distressed properties.
• Distressed properties comprised 41 percent of their sell-side transactions completed over the past 12 months. When looking at 2009, this percentage increases to 46 percent.
• For their buyer-side transactions over the past 12 months, 42 percent were distressed properties. In 2009, this percentage jumps to 56 percent.
• Over time, as part of the CDPE membership organization, CDPEs have continued success closing short sales. Agents who have been CDPEs for 11 or more months have closed an average of 10.72 short sale transactions.

“As banks and the Obama administration continue their efforts to solve the foreclosure crisis in America, CDPEs are on the ground, working with these new plans and regulations, striving to make a real difference to distressed homeowners nationwide,” Charfen said.

The Distressed Property Institute conducted the National CDPE Member Survey between June 3 and 12, 2009. Of the 7,972 members polled, 876 responded representing an 11 percent response rate.
About the Distressed Property Institute, LLC
The Distressed Property Institute trains real estate professionals to engage with and assist homeowners facing hardships. The Institute has developed a curriculum to provide the tools and knowledge to handle distressed properties, including short sales, deeds-in-lieu, mortgage modifications, forbearance, refinances, reinstatements and, if that fails, how to help homeowners through the foreclosure process. After completing a comprehensive on-site or online course, graduates are awarded the Certified Distressed Property Expert® (CDPE) Designation.

About the CDPE Designation
The CDPE Designation provides real estate industry professionals with detailed information on how to engage with and assist homeowners in distress. With more than 7,500 professionals trained across the United States, the CDPE is one of the fastest growing designations in real estate industry history. The CDPE designation has been endorsed by RE/MAX International and other major U.S. brokerages and industry icons, including: Dave Liniger, chairman and co-founder of RE/MAX; Howard Brinton, founder of STAR POWER® Systems; Bob Corcoran, founder of Corcoran Coaching and Consulting; Brian Buffini, founder of Buffini and Company; and David Knox, founder of Knox Productions.

For more information about The Distressed Property Institute and the CDPE Designation, visit www.cdpe.com.

Media:
Adam Pedowitz
512.745.4971
adam@cdpe.com 

Jennifer Wezensky
269.274.4071
jennifer@jwpublicrelations.com

Highest Crime Cities…is there a Correlation to Real Estate?<O</O

The Congressional Quarterly Press just put out its “most dangerous cities” list for the past year. <ST1New Orleans</ST1 is in the number one spot. In 2007, Detroit had the lead, but now we’ve noticed some competition from <ST1New Orleans</ST1 Misfortune begets crime. We’ve seen a marked increase in crime in our foreclosure hotspots. I mention this list after learning that there is a statistical increase in crime of over 2% that comes with each 1% increase in foreclosures in a neighborhood. Is anyone paying attention to this correlation? With such a wave of distressed housing across the <ST1US</ST1, what will happen to our crime rates, and do you expect to see any new names on this list next year?

Top 10 Most Dangerous Cities in America 2008

1. <ST1New Orleans
   
2. <ST1Camden
   
3. Detroit
   
4. </ST1<ST1St. Louis</ST1
   
5. <ST1Oakland
   
6. </ST1<ST1Flint, Mich.</ST1
   
7. <ST1Gary, Ind.</ST1
   
8. <ST1Birmingham, Ala.</ST1
   
9. <ST1Richmond, Calif.
   
10. </ST1<ST1North Charleston

Real Estate is Changing Forever…Why and How?<O></O>

No news about that right? I mean, real estate has been in a whirlwind lately; everyone knows it. What there seems to be very little of lately is perspective. What does it all mean and where are we actually headed? What will real estate look like in 5 years? Will you even still be in the business? What does it take to be an important part of your real estate market?

All the rules are changing, not just the market. Of course when a market turns on a dime the way it has, the rules of what works and what gets results always change, but I’m talking about something deeper. I’m talking about foundational change. We’re not just going through a market shift. Read Gary Keller’s book SHIFT by the way. That will give you some good positive ideas and systems for getting results in today’s’ market. But I’d be remiss as a real estate entrepreneur these days by neglecting to pay attention to the actual revolution that’s happening in our midst. Yes, I’m talking about the internet. Our market is very, very different. Markets change. That’s not new. What is new is the cloud and how it will affect every aspect of our business.

In a video presentation for TED, Kevin Kelly described the foundational changes coming about as a result of the birth of the internet. If you’re ready to take a paradigm-changing look at what the internet really is and where it’s headed, watch this: http://www.youtube.com/watch?v=yDYCf4ONh5M. It’s not real estate specific, but it sheds some significant light and shows you what I’m talking about.

Guys, I’ve spoken with Realtors over the past few months that still don’t even use a database to manage their leads. I get it. It’s a hassle to learn something new. My point, though, is that a time is coming where the very foundational business of real estate will require tools that many of us do not have right now. I mean, we have access to all these tools, but we’re ignoring them…most of us anyway. Imagine operating your real estate business these days without an MLS. We used to all do this, but not anymore, not anyone. That’s where we’re headed regarding internet marketing.

Talking about the internet is not new. But I’m talking about it again, because I don’t think we’ve gotten our heads around it, and as an industry, we certainly haven’t implemented even the basics into our plan. So let me be frank: if you want to have a viable real estate career into the foreseeable future, you need to be actively building your social network online TODAY. You need to use the networking tools available to you, most of which are FREE, and you need to become a savvy internet marketer. Or you will be out of business.

We didn’t always have the MLS. We haven’t always used cell phones or email. We haven’t always been savvy with print advertising, putting together postcard campaigns and such. Realtors are small business people, and we’ve adapted. We haven’t wholly ignored new media as they’ve become available. We’ve embraced them; we’ve used them and profited. But as an enormous downturn stares us boldly in the face, the NAR reports that less then 10% of us even have a blog. We’re not using even the basic tools available to us. Building an online network is essential. The how-to is for another article. But I’m sayin…research it, get out there. The real estate market is being commoditized by companies who are more savvy than us. They’re in OUR internet space, and they’re profiting while we pick up their scraps.

It’s time to change our paradigm, permanently and significantly. It’s time to look into the cloud for solutions to our business marketing needs. You can reach new clients in meaningful ways everyday. You can build a significant business with tools that cost you nothing! You can establish yourself as an expert, get noticed, promote your listings and add value to all your existing clients. The tools are here and they’re more powerful than we realize.

My first sales mentor taught me that no money is made in the office. “Get out of here. Go meet with clients” he’d say. Today, new business is online as much or more than it is from any of our old sources. We continue to ignore it only to our own detriment.

Highest Crime Cities…is there a Correlation to Real Estate?<O</O

The Congressional Quarterly Press just put out its “most dangerous cities” list for the past year. <ST1New Orleans</ST1 is in the number one spot. In 2007, Detroit had the lead, but now we’ve noticed some competition from <ST1New Orleans</ST1 Misfortune begets crime. We’ve seen a marked increase in crime in our foreclosure hotspots. I mention this list after learning that there is a statistical increase in crime of over 2% that comes with each 1% increase in foreclosures in a neighborhood. Is anyone paying attention to this correlation? With such a wave of distressed housing across the <ST1US</ST1, what will happen to our crime rates, and do you expect to see any new names on this list next year?

Top 10 Most Dangerous Cities in America 2008

1. <ST1New Orleans
   
2. <ST1Camden,
   
3. Detroit
   
4. </ST1<ST1St. Louis</ST1
   
5. <ST1Oakland
   
6. </ST1<ST1Flint, Mich.</ST1
   
7. <ST1Gary, Ind.</ST1
   
8. <ST1Birmingham, Ala.</ST1
   
9. <ST1Richmond, Calif.
   
10. </ST1<ST1North Charleston</ST1<O

What is Your Home Worth?

Setting the right price is an important first step in the process of selling a home. Is it necessary to spend $200 to $400 for a professional appraisal of your property before placing your home on the market?

A professional appraiser’s opinion of a property’s market value is based on the recent sales of similar homes in the neighborhood, and on the square footage and condition of the property. Different appraisers might come up with different figures. Even if all of them agreed on a value, there is no guarantee that you would receive that amount for your property.

An alternative to a professional appraisal is to ask a professional real estate agent for a written market analysis of your property. This analysis will include information about recent home sales in your neighborhood, as well as how those homes compare to yours. Real estate agents may provide this service with no charge or obligation. If you are still unsure of the value of your home, you may wish to pay for an appraisal.

The rough thing about appraisals is that if you talk to 10 appraisers, you’re likely to get 10 different numbers. It’s just how it works. If you don’t trust the Realtor who prices your home, then it’s best to find one you do trust. Don’t go sign with a Realtor who is desperate to get your listing and is willing to give you a higher price to get it. How do you know? It comes back to trust. Appraising is an art as much as it is a science. An appraisal is not a sales contract, and it does nothing to get you a sales contract. It is only ever going to be an opinion, no matter what you pay.

A good Realtor cannot make your house worth more. In a market like today’s, you may very well not get a number you like at a listing presentation. I would like to submit that going with a professional you trust is always going to get you better results than going with a number you like.

Small Homes are Gaining Favor

That huge 4000+ square-foot listing you just took may be the biggest home in the subdivision, but that evidently does not guarantee hits or showing these days. Actually, the trend seems to be the opposite. Smaller is better. Bigger means higher maintenance costs, higher utilities and more.  

It’s the smaller listing that’s becoming a bigger draw to buyers these days, say industry experts who spoke today at the Sustainable Development & Restoration Summit here.

Writer Melissa Dittmann Tracey with Speaking of Real Estate noted that the average home has grown from 983 square feet in 1950 to 2,349 square feet today. The most common criticism of these homes includes “lack character, good design, and energy efficiency”.

Not to mention, it seems that 60 percent of households only have 1 or 2 people living in them. Why have all that extra space when you don’t really need it?

Recent news reports show that the new trend is for buyers to be seeking smaller homes. Builders are starting to reflect this in their floorplans. KB Homes has decreased its home sizes from 3,400 square feet, selling for $450,000, to 2,400 square feet, selling for $300,000. Now, they’re doing it again – 1,230 square feet for about $200,000 – in trying to attract more buyers.

Source: SpeakingofRealEstate