Is the housing market recovering, or at least hit bottom?
Its been a while since I posted last, and in a way on purpose…
I have been waiting to see what the market was going to do and see if anyone would actually follow the earlier post’s advice and jump on the opportunity that was presenting itself in the housing market. Some did, and they are VERY happy, and bought great homes at below-market prices and are sitting on an investment that will only increase over the next few years.
But most did not, and are still ‘looking’ almost hiding, waiting for everyone else to do something before they jump in and buy a home. I would not say I blame them for waiting, but NOW everything is pointing to an actual bottom of this decline that “they” were hyping. Although, as I said before I market in the QCA did not decline all that much, but it was much slower and were some good buys out there.
Now, get ready for the market to start its rapid upswing. Its not going to take long and we are back in another seller’s market where they can pick and choose over offers and the buyer is at the disadvantage, having to pay over market value to get their dream home due to 2-3 other offers coming in at the same time. I am not saying, but I am saying, this will be happening once again come June-July 2009. Mark my words -Its going to be very competitive out there in the next 90 days as the weather warms as buyers are taking advantage of historically low interest rates, and the home buyer tax credit that expires at the end of 2009.
So saying that, how can you get ahead of the game? I give it another 30 days and then the race is on…So I say get ahead of the herd and be ready, and use a professional Realtor. No more bumping around, bouncing into open houses, thinking about getting pre-approved, or trying to catch new listings as they hit the local public sites…YOU NEED SOMEONE LOOKING OUT FOR YOU!
A Buyer’s agent representing you–Someone Searching for homes for you every HOUR, every day while you sleep, while you are at work or picking the kids up and going to soccer games! Someone getting in touch with you the MOMENT, Your Dream Home hits the market-Before anyone else even knows about it! A good buyer’s Realtor will do this for you, and for FREE! You cannot lose…You get your home, someone looking out for your best interests, making sure the seller is not taking advantage of you, and getting you to closing so you get to actually move into a new home this summer not spend it all ‘just looking’ like so many other will!
The way I see it if you are really wanting a new home in the next 30-90 days, you have 2 options:
1. Try to do it all yourself, and maybe find your home, in hopes you know what to do when you find it leaving your self open to a host of potential problems.
2. Hire, retain, and work with a professional with 10+ years experience do it for you for FREE. Be your eyes and ears for new listings, find that home, write a contract protecting you with all the necessary inspections and financing, and get you to closing with a smile on your face all without the pressure of hounding and trying to make you buy something you don’t want.
Sure, you can probably do it yourself. But before you do, Please take a moment and ask yourself what are the reasons you don’t want a to have a professional on your side.
If you can give me a good reason,please post it as a comment below and I will address it, even admit it if its a a legitimate reason why you wouldn’t use a free service.
I already know one good reason why you may not, so I will address it before I close… A High pressure, salesperson, hounding you over dinner and bugging you to BUY! -Personally, my business philosophy as a home buyer specialist, is a consultant approach, not a salesperson. I will find homes to look at, IF you want to make an offer, I will help you all the intricate steps that involve that including a full buyer’s market study on the home’s value. But never any pressure to buy, or bugging you all day long trying to get you to buy. If you are a loyal client to me, I will be loyal to your time table and your speed, not mine.
So to get started and jump ahead of the emerging market, e-mail me at Matt@WoodSellsHomes.com or go to www.qcHomeBuyer.com to start your search.
Some added extra info sites for your info puposes:
Happy House Hunting!
A Q & A about the Current Quad City Real Estate Market
Going to get off the 19 Thruths with this post and address a bunch of questions I have been getting from my past, present and current clients….I have been flooded with confused people that do not understand whats going on out there in our LOCAL market.
I hope this helps. If you have a specific question that is not addressed here, or you want me to elaborate further, please e-mail me at Matt@WoodSellsHomes.com.
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One more quick note, I have updated the Tax Credit site detailing the specifids of the $8000 Tax credit. Check it out and I have more to add including the actual IRS form you need to file, so check back early and often. www.Home-BuyerTaxCredit.com And tell all your first-time buye friends about it!
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Now here’s the Q&A…
Q: I hear on the news that the housing market is really bad right now and it’s not a good time to sell my home. Is that true or is that the media blowing it out of proportion?
A: The main thing to remember is that real estate is very LOCAL. All media outlets like to over-generalize everything in order to get ratings. “If it Bleeds, it Leads,” is often the philosophy for most newspapers and news stations. In saying that, there are many areas of the country that the market has crashed and getting worse, so it is not a falsehood. In Florida and California for example, property values have dropped and some homes have lost $100,000 in value in the past few months. But that’s there not here. We did not have the rapid appreciation that those areas had, thus our values have remained pretty stable. As of early march, out list-to-sale ratio is still averaging 94-96% meaning that is you list your home for $100,000, you can still expect to get $94,000-$96,000 accepted offer on it depending on location and condition of the home. The average days on market is longer than it was a few years ago, but the average sales price is not nearly as low as most believe. As a general rule, if you have been in your current home at least 3 years, have not taken a home equity loan and owe more than you paid for it, and have made a few improvements to it, you will be in good shape when it time to sell. Plus coming into the spring here in the Midwest, the market will be experiencing some increased activity. I feel there is pent up buying demand due to our long, cold winter!
Q: I have been thinking of buying a home in the next couple months. Should I wait or is the market still going down and will I get a better deal later when it “bottoms out.”
A: Again, our LOCAL market is really not that bad as it is perceived to be. Prices may be down a couple percent in some areas ONLY in comparison to a few years back when the market was overly active, but not compared to historical, long-term market statistics. As to if the market is going to get worse, and “bottom out”…That’s anyone’s guess. If you can predict when the bottom hits, or if we have hit bottom, you are hired as my chief economist and we can both get very rich running around town buying property at its ‘bottom’ and since you can predict the bottom, I am sure you can predict the “top” when it will be good for us to sell those very same properties we bought. In all honesty, nobody knows. Will it get worse and could you maybe save a couple bucks by waiting, maybe, but it could also very easily go the other way and you could be paying more a few months from now when all this pent up buying demand that I expect to happen begins, and everyone decides its time to buy. Being very straight-forward with you, and not just trying to be ‘salesmany’ on you, I think right now is a great time to buy! Interest rates are at record lows, and there is lots to choose from out there. Uneducated sellers (people who do not get this Q&A from me) perceive the market to be bad, and may be willing to give you a better deal. And if you are a first-time buyer, there is even an $8000 extra incentive that I will address in the next question. FREE MONEY!!
Q: What is this $8000 First-Time Home Buyer Tax credit and how does it affect me?
A: The government just passed this tax credit as part of the Stimulus package. It gives first-time buyers an $8000 credit on their income tax return if you buy a home anytime in 2009, but it expires December 31, 2009. I have set up an information website with everything you need to know at www.Home-BuyerTaxCredit.com. It has all the forms you need plus, an easy to read chart!
Q: Are there a ton of FORECLOSURES on the market now, where can I find them, and will I get rich buying one?
A: Easily the most asked question I get daily, probably multiple times a day. All spurred again by the major news outlets. No, we do not have a bunch of foreclosures here locally, I can find them for you if you really want to look for them, and you will not get rich by finding and buying them. There are a few ‘OK’ ones that I see now and then, but nothing to be too excited about. Most are in questionable areas, in really bad shape (Have you seen the old movie ‘The Money Pit?’), and don’t represent a sound investment. There may be more pop up as the year goes, but again, our market is not seeing the wave of foreclosures you see on the news. But off the top of my head, I bet there has only been about a 10% increase in foreclosures compared to past years. A little secret, if you are looking for an investment property, let me find you an Estate-A home where the family is selling it for a deceased relative. Usually these offer a better home, and many times, at a bargain price!!! Foreclosures are fine, but there are better opportunities out there, in my opinion. If you have an interest in picking up a rental, let me know!
Seacrh all homes at www.qcHomeBuyer.com
Need to know your homes value? Check out www.qcHomeSelling.com for a free over-the-net market value price evaulation!!
You can contact me directly at Matt@WoodSellsHomes.com
Truth #4 about the Quad City Real Estate Market
Part #4 of a 19 part series giving you an inside look from my perspective, as a Realtor working in the Quad City (Iowa/Illinois) market every day.
WELCOME BACK! its been a while since my last post. A quick announcement before I begin. I will be accepting new applications for my VIP Buyer’s program. I have 4 spots that will go quickly for the Month of March. This does not mean you have to buy in March, but just get enrolled in the program. I am going to waive the $299 fee for readers of this blog, so make sure you mention it with your application. Don’t risk the largest investment of your life with bad or no buyer representation. E-mail me at Matt@WoodSellsHomes.com for your free buyer client application.
Now onto Truth #4…
Truth #4- The Foreclosure ‘crisis’ you see on the evening news is NOT happening in our local market.
Everytime you turn on any ‘national’ news program, you see real estate signs screaming out ‘Foreclosure’ in big red letters. They show properties where families have got up and left their home. You hear that the foreclosure numbers are huge and it is sweeping the nation. In some areas, mainly Florida and California, and other areas with hyper-active appreciation in the past 5 years, there are tons-Sometimes the whole block!
But WE, meaning the Quad City Area- The cities of Davenport, Bettentendorf, Eldridge, Leclaire, Blue Grass, Pleasant Valley, in Iowa, and Moline, Rock Island, East Moline, Milan, Hampton, Port Byron, Coal Valley, in Illinois.
We ARE NOT seeing this kind of foreclosure market around here. As of this post, off the top of my head, I think there are maybe 25 available foreclosures on the open market. I would say again, off the cuff, that there were probably about an average of 15 on the market back when the market was said to be ‘good’ in the past 5-6 years. So yes, there are more, but not the kind of numbers the media makes it out to be. Some areas are in serious trouble with the amount of foreclosures, and some Realtors out on the coasts are taking bus-loads of people out to look at them.
I am not saying that there will not be more as the year progresses, but not the amount that the other areas are facing. I am not ignorant of the fact that we will see more, with the job cuts, and the tight economic times, I am just trying to get across the point that we are in ‘crisis’ mode, and probably won’t be anytime soon. There are some good buys out there, no doubt, and if you are an investor with some liquid funds or the ability to get mortgage financing quickly, these homes are ripe for the picking and will be a solid investment. But they will take some work, and they are not homes in the perfect family neighborhoods either. Some are, but most are not. You can get a free list of these homes at www.qcaForeClosures.com
I want to address the question I have gotten a lot lately…Why is the Quad Cities not affected as much as the rest of the nation? Why can’t I go out and offer $20,000 less than list price and expect to buy the my dream home ‘on sale?’
A couple reasons, but there are more…
1. We did not have the rapid appreciation that many of these (now in trouble) areas had. In Florida, some people were buying a home for $200,000 and turning around and selling it a few months later for $300,000. In California, the market was so hot, most homes had as many as 5 offers on them setting up an auction-like atmosphere, jacking up the price sometimes $30,000 above list price! A simple response to that…What goes UP, must come DOWN! Anything that appreciates at that rate is bound to explode, somehow. Real Estate is cyclical, and that was an unbelievable cycle that is now on the extreme, down cycle. The bubble did burst in those areas.
THAT DID NOT HAPPEN HERE. Sure, prices appreciated quickly a few years ago, and we had multiple offers on the same property, but we still stayed in the circle, of ‘resaonable’, market value. You may have paid a couple thousand more than you wanted but I bet you still are in good shape as long as you did not try to sell within months of buying it.
2. We did not over-buy here. Maybe people live more in their ‘means’ and maybe we don’t have as many banks that are in it for the quick buck (although there were a couple no longer in business) that actaully cared about their customers well-being instead of the huge comission on the sale. I can honestly say that I never sold anyone a home, that I thought was a bad-buy, or thougt they were over-paying for.
I think we have a group of responsible Realtors in this QCA area, for the most part, who are looking out for their clients interests more than they are looking for a pay-check. And the bad-apples who were in it for the quick buck, have all but disappeared, with the ethical agents still doing business today in the tougher market where you even have to make sure your clients are doing the right thing for thier family, even if it means telling them that this may not be a good investment at this time. My philosophy is that the long term gain of me being honest with my clients far out weighs the short term gain of a sale I would not complete if I were in their shoes.
Thats all for now. I will expand on this later in my examination of the TRUTHS, and as I observe the maarket throughout thios year.
I am as eager as anyone to see how the year goes. Right now, I think its about ready to bust loose as the temperature (hopefully) rises. I think there is a very high demand of first-time buyers out there, wanting to take advantage of the $8000 Home Buyer Tax Credit. So those who have homes in that $85,000-$150,000 range, its time to think abut getting your home on the market! If you need a Free Market Value Analysis, click on the link for an over-the-net evaluation or email me directly at Matt@WoodSellsHomes.com
I will be back for Truth #5 taking a look at a projection of market activity for Spring 2009. It may be a time to jump ahead of the ‘herd’ to grab your home (or get your home on the market) before you have to compete once again….Yep, that means i think its going to get busy, quick, and it may be wise to stay ahead of the market!
As always, thanks for reading. If you have any questions or comments, please leave them here or contact me at Matt@WoodSellsHomes.com
If you are searching for a home, just looking, please check out www.qcHomeBuyer.com . Search for homes 24-hours a day!
Truth #3 About the Quad City Real Estate Market
Part #3 of a 19 part series giving you an inside look from my perspective as a Realtor working in the market every day.)
Note: I was going to cover the foreclosure market for #3 but I will catch that next week in #4. I thought this topic was more urgent at the moment.
Truth #3-You can NEVER time the real estate market perfectly.
What do I mean by that? I mean that you can never know if this is as low as its going to go when its bad.
Or whether if this is as high as its going to go when its good. And its all relative depending on where you are a buyer or seller anyway…
Currently its a buyer’s market–More sellers than there are buyers, making home prices fall and giving buyers the upper hand. But as a buyer, how do you know if this is the bottom or if the tide is going to swing the other way and the sellers will gain the advantage back and you will lose your chance to be in the stronger negotiating position. Once the pendulem swings back that way, then you are back with the ‘Herd’ who all want to buy and you will have to pay a premium price for the home that you could have gotten for 3-10% below list price just 30 days ago.
So the question once again, how do you know if this is the bottom if you are wearing buying shoes? Let’s say you are currently able to buy, but you think if you wait even longer you may get an even better deal.
Nobody knows, Not even me.
But once one buyer thinks that its time to buy again, another will, and another will, and then the rush is on. And then its a seller’s market before you knowit and you are competing for your dream home with 3 other couples, and then over $100 bucks, your dream home is gone.
Scary? Harsh? You think I am fibbing? I am not…I have been through the seller’s market and thats exactly what happens.
Is that going to happen soon? Maybe not, most likely not for a couple months when the weather warms up and all this government money is there for the taking and rates drop even lower. But I think it will turn, especially in that mid-range market of $100,000-$170,000. And when it turns, it will turn fast.
Be ready. Think harder about buying sooner than later if you can and can find a house that meets your needs. Don’t wait too much longer because remember you cannot time the market.
And who says that we just didn’t hit bottom yesterday????Hmmmmm….
Check back or subscribe to this blog to hear more TRUTHS as I post them. If you have a question, please e-mail me or comment on the post.
I have a few openings for the February application for my Platinum VIP Buyer program. E-mail me at Matt@WoodSellsHomes.com for details on how to receive an application to be accepted into the prgram that will give you the edge over any and all other home buyers out there.
Next time, Truth #4 on the Foreclosure market. For real this time.
Truth #2 about the Quad Cities’s Real Estate Market
(This is part 2 of a 19 part series that will give you an expert insight into the current state of the QCA real estate market).
Truth #2: You can use the current market to your advantage even if you have to sell before you can buy.
Let’s say you currently own a home and you want to move, or almost have to move because you quite simply have outgrown the home. More kids than there are bedrooms, or a teenage daughter who is growing up and now spends more time in the bathroom than she did when she was in grade school.
Remember that in the last post, Truth #1 revelaed how it is a strong buyer market and buyers should be buying NOW, instead of waiting for the market to turn. That is still true, and you may be thinking that your home may be worth less and you should wait until the value rises again. The truth is that values may not rise to those over inflated levels for quite some time.
Yes, it is a buyer’s market, and buyers have the upper hand. But you also have to look at your home and what the market for yourspecific home may be on an individual basis. If you are sitting in a home that is in good conidition, in a good location, you have made some improvements to over the years, you have been there for at least 4-5 years, and did not take another mortgage on it, you still should have eneough left over to make a few bucks to put towards your new home. Plus it may still be in that prime first-time buyer range where there is always a strong market. Generally, the first-time buyer market ranges from $90,000 to $150,000. So you really are not going to get hit that hard even with it being a buyer’s market due to the ever-flowing first time home owner demand. You may not make as much, but in the sceme of things, a few thousand less isn’t going to kill you and there is a way to make that up as I will go onto next…
So you put your home on the market and price it where it should be by getting an expert price opinion and ultimately get a pretty good offer on it that you can live with.
Now here’s where to make up that couple thousand dollars due to the down market…
Let’s say you are moving up in price range from your $140,000 home to something above $180,000, considering thats what it will take to get that extra bedroom, more square feet, and that extra bath for Ms. Teen-USA’s beatuty routine. That higher-end market is probably not as active and may be more affected by the buyer’s market for the simple fact that there is not as much demand as there was in the market for your old home where you are tapping into the 1st time buyer’s pockets. Maybe for the simple reason these people want to move up too, and need to sell to purchase their own move-up home, they will be more motivated to work with you on your offer.
So you come in with a clean, non-contingent offer on their home since yours has already sold. That is a pretty strong offer, and you should be able to negotiate a few thousand under list price foryour new home, thus picking up that couple thousand that you did not get out of your old home. And then it evens out from there with an extra added benefit of a lower interest rate than your old mortgage, and you are in a better, larger home for a few hundred more dollars per month.
You picked up that extra few bucks on the buying side vs. the selling side, which comes out darn near the same in the long run.
So to recap the rather confusing commentary-
Depending on your current home’s value, location, condition, and the current buyer’s market, you may not get as much out of it when you sell, but you may be able to pick up that lost money when you buy because of the that very same buyer’s market.
The moral of the story….if you want or have to move for whatever reason, it can be done without taking a huge chunk out of your hard earned equtiy since it most likely can be recouped when you are wearing the buyer’s shoes.
Sounds complicated doesn’t? Well it is and isn’t. And it comes down to timing and planning and with a good plan, it becomes rather simple.
As a experienced Realtor in this area for almost 10 years in April (I am getting old!), I have been through this process with tons of famliles and 9 1/2 out of 10 times, it all works out for them.
Over the holidays, I sat down and created a streamlined, smooth system for this type of real estate move where you have to sell before you can buy, to ‘move-up’, to a larger home for your current needs.
I have named it the ” Sell B4U Buy Move-up Program“, and I am offering it first to you as readers of this blog. There will be a Gold and Silver packages available for this program with Gold being a standard services package and Silver being the top-level VIP package. For readers of this blog, I will upgrade you automatically to Silver-Level Status, if you mention this blog post.
If you fall into this category, where you have totally out-grown your home, or just really want a new home, this program is perfect for you. I will be have a website for you soon but until then, please e-mail me at Matt@WoodSellsHomes.com with “Move-up Plan” in the subject line with your name and contact info and I will rush you all the detailed information by mail. No obligation of course and full gurantee of all my services in writing as always.
The cold weather keep s coming but spring will be here soon. Get a jump on your moving plans so you are ready to go when the weather warms up and you really start thinking about a new home.
As always, search all homes at www.qcHomeBuyer.com, or find anything you need at www.WoodSellsHomes.com. .
Stay tuned for Truth #3 about the QC Real estate market in a couple weeks dealing with the current and dreaded FORECLOSURE properties and opportunities that are out there for smart buyers!
Truth #1 about the Quad City Real Estate Market
(This will be an ongoing post revealing the 19 Truths that will help you if you are thinking of buying or selling a home in 2009)
Truth #1: It’s a strong Buyer’s Market.
You may not remember about 3 years ago when the market was at the opposite extreme, and was a very strong seller’s market. Those were the days where seller’s could just put their home on the market, and expect multiple offers, sometimes well over the list price. Buyer’s were active and wanting to buy, and seller’s were running away with enormous profits even if they only owned the home for a couple years.
First I will define both a seller and buyers market, just in case you are wondering what the difference is exactly. To put it simply, a seller’s market is like I described above where there are more buyers than there are homes available for them to buy so prices are bid up and buyer’s do not get as good as deal and the sellers have the advantage. In a buyer’s market it is the opposite. There are more homes for sale than there are buyer’s for the homes, so the advantage is in favor of the buyer and very often, the sellers will have to make improvements to the homes to get the buyers to choose their home instead of one of the many others on the market.
What is really odd is that now that its a ‘buyer’s market, ‘Buyers aren’t buying as much as they were when it was a ’seller’s market’ a few short years ago.
Why? I have no idea?
It is strange that home buyers were a lot more active when they had to face competition from other buyers for their dream home, but now that their is nobody else looking at that home, they have stopped making offers.
Quite a paradox when in reality, if you are looking to buy now, you should be most active because the odds of getting a better deal are in your favor. Sellers are motivated, especially if they are trying to sell their home to buy another one. With this motivation brings added value to the buyer in that sellers are sometimes making improvements to the home that the buyer would normally have to make when they moved in. Sellers may also be more willing to move off list price, offer money for closing costs, or leave an appliance they weren’t planning on leaving, ultimately saving the buyer huge out-of-pocket expenses right up front.
Add the historically low interest rates in and you have yourself one of the best buyer’s market’s in history. Did you know that a 1% drop in interest rate from 6 to 5 will save you about $100 a month, or move you up so you can buy a higher priced home? As of this post rates were right around 5% for a 30 year mortgage-Visit www.qcHomeLoan.com to get pre-approved now!
And another good thing, real estate is cyclical just like every other long-term investment. Prices may be low now, but they will increase once again and maybe even another seller’s market down the road when you are ready to move. So if you buy right now, when the seller’s market returns, you will be the one making a profit!
So Truth #1 is that if you want to buy a home, DO IT NOW, don’t wait for everyone else to figure this out OR you will be back to the bidding war days where you are actually paying more than you need to when in reality, you could have been the only one making an offer, and getting that good deal everyone is looking for.
And I am not just saying this to sell a home, I am saying it because its the TRUTH. If you really sit down and think about it, why wait until everyone is doing it and turning your dream home into an E-Bay auction. Use this buyer’s market to your advantage! Why buy at market rate, when you can buy below market just as easily.
Search all homes at www.qcHomeBuyer.com . If you would like a free personalized list of homes or have any questions, please e-mail me at Matt@WoodSellsHomes.com.
I am accepting applications for my VIP Platinum Buyer club for January 2009 now. Contact me to get more details and your Free application and membership benefits. If you ever needed a pro in corner, now id the time. Don’t do it alone or it may cost you Thousands!
Stay tuned for Truth #2 after the first of the year detailing how sellers looking to move up can still do it profitably.
Cheers to 2009! See you next year!
-Matt
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