October 26, 2009
There was some interesting (and predictable) data in the 2009 Membership Profile of the National Association of Realtors® (NAR).
Here is the profile of your “average Realtor.” 54 years old, female, went to college, has ten years experience, works forty hours a week, and made $38,000 last year (2008).
Not surprisingly, income and the number of transactions both dropped about 14% from the previous year.
This got me thinking about the averages for our affiliates – the Realtors we have chosen to help people with their real estate needs in Colorado.
Our “average Realtor” profile is: 52 years old, split evenly between males and females, went to college, has 21 years of experience, works 50 hours a week and made over $180,000 last year (2008).
All Realtors are not the same. There is something to be said for knowledge, experience and professionalism.
October 19, 2009
The Vail Daily reports that even in the Eagle Valley, sub-$500,000 sales accounted for half of the market in August.
August had 99 properties changing hands. But the year’s real estate deals are still well behind the numbers from last year.
The August sales — charted by Land Title Guarantee Company were more than double the numbers posted in January and March. Most of the sales, 15 came in Eagle, with 13 sales closing in Vail.
Through the year so far, almost half of all sales have been in the $500,000 and under sector of the market. But sales of $2 million or more still make up just more than half of the dollar volume for all sales so far this year.
Through the first 8 months of 2009, Eagle has the most transactions with 77; Vail Village has the highest dollar volume with $64 million; Bachelor Gulch has the highest price-per-square-foot at $1,227; and Bachelor Gulch has the highest average sales price at $4.38 million. Vail Village has the highest sales price for a residential transaction at $15.9 million.
Even with August’s numbers, the valley’s sales are right at half of last year’s total, while the dollar volume is down by 65 percent.
October 16, 2009
The Associated Press reported last Thursday that according to Freddie Mac, average rates for 30-year home loans stayed below 5 percent for the second-straight week.
The average rate on a 30-year fixed mortgage was 4.87 percent, down from 4.94 percent last week. Last year at this time, the 30-year fixed-rate mortgage averaged 5.94 percent.
Low rates make home buying or refinancing more attractive for consumers and refi applications climbed 18 percent from last week.
By refinancing at current rates, borrowers could trim nearly $268 off their monthly mortgage payments on a $400,000, 30-year fixed-rate loan.
Still, borrowers may want to consider the Federal Reserve’s recent announcement that it is slowing down a program intended to lower mortgage rates and boost the housing market. Analysts say mortgage rates should remain low for now but could eventually move higher, and homeowners who want to refinance mortgages shouldn’t drag their feet.
October 2, 2009
As noted in several articles I wrote earlier this year, now may not be the best time to sell your second home – in Colorado or in most second home markets. So, what do you do with your second home while many people are wondering how to hang on to their first? Put it to work!
You want to do everything possible not to sell it at a loss - the median price of a vacation homes nationwide fell 23% in 2008 from 2007. The figures for the first half of 2009 are not much better.
Use your second home to produce extra income and minimize taxes. Refinance to a more favorable loan. Delay any improvements.
People who once used their vacation homes solely for their own enjoyment are now renting them out. A do-it-yourself Internet campaign can cost less than $1000. Check out VRBO.com.
Reduce your property taxes; tax appeals are now more common. Many homeowners whose properties were reassessed when the real-estate market peaked are stuck with high values for tax purposes, even though prices have since declined.
Sell a partial interest in your second home to a partner or friend. Do it as an LLC. Or do a family limited partnership and let your adult children or brother help with the costs. Tell them you are doing them a favor by giving them ownership now and not having to wait until you die!