My New Blog

The end of the year sales stats are out. They show that 2011 was a year of stabilization and the "market is falling" scenarios are past us.

Pending sales were down just 2.3% from last year. That's not a significant difference.

Inventory of homes dropped by 8.6% which means there were fewer homes on the market to choose from. We still, however, have about 11.7 months of inventory on the market so until that number reaches 5 or 6 months; we are still in a "buyers market."

The good news is that median sales prices reamined the same as last year and average prices dropped only 3.4%. Those barometers show us that the "floor dropping out" of home prices was not an issue for us in the Capital Region last year. With more and more companies coming to Albany providing jobs and providing the national economy at least stays the same... we should be in for a great spring and summer season ahead.

I already knew it as I have heard it before and seen it with the local sales figures ...but here it is from an outside source. According to this article from  24/7 Wall Street, Albany is the 3rd lowest in the nation, at 4.01%  for experiencing foreclosures.

WHY?

Albany and area have been known to be a stable area for real estate purchases. With a heavy state government employer base, incoming and existing high tech industries such as Global Foundries and Nanotech companies, along with a plethera of colleges and universities; the unemployment rate here is 6.2%( according to this article), well under the national average which is now around 9%.

These factors have kept Albany somewhat "insulated" from what the rest of the nation has experienced. Although this area didn't see the dramatic upward price swings from 2003-2008, it didnt see the dramatic price falls either. In fact, this article claims that the price decrease in the last year was not even 1 percent.

Personally, I do agree with this article for the most part. Being a full time realtor in this area for the past 5 years, I have seen prices decline since the end of 2008 and do feel that they are at a low from when I entered the business.  However, everything is relative. No way are we experiencing anything like that of the dramatic value declines in Florida, Arizona, Las Vegas and the like.

With interest rates STILL amazingly low and prices at very affordable rates, its STILL a GREAT time to buy!

Here is a 3 minute video that nicely sums up where we are. If you have any questions, please call me at 518-366-2856 or drop me an email!

HAPPY HOLIDAYS!

I hear this comment quite readily when I speak to sellers about selling their home in this market.  Being in the Capital District of NY ( Albany-Schenectady- Troy) we have been quite fortunate not to have experienced the massive highs and lows of the nationwide volatile market place, however, the heyday of the 2005-2008 home values have passed.

But.. what does losing money really mean? Does it mean if you sell your home at a price for less than what you paid for it? That is the consensus among most sellers thinking it must be at sold for AT LEAST for what they paid for it.

Well....maybe not....Considering everyone needs a place to live and no place is free, a certain amount of money needs to be allocated to housing whether it be a mortgage or rent.  For  example:

 I am working with someone right now who bought in 2008 for $240,000. Current market value is about $220,000. "That is a $20,000 loss", I am told.

Considering they have lived in the home for 40 months, the cost per month is really $500.00. No way could they have rented a home like this for $500.00 month.  As importantly, the tax deductions from the mortgage interest and property/school taxes are also adding to their "profit" column helping to remove any perceived loss.

With a detailed explanation of how to "rethink" the math- it made sense to them and they are ready to sell!

So... if you are thinking of selling..don't forget to factor in the "rent factor".

I found 2 recent articles about the Albany, NY area and it's good news so I felt I had to blog (brag) about it!

In times of high unemployment, dropping home values and general overall stress on the economy and market; Albany is coming out a winner!

According to  The Business Review  ,Albany, NY's unemployment rate of 7.2% ranks the city in 13th lowest unemployment levels in the US! In addition, Bank Rate has recently analyzed median home values from  across the nation and found that the Albany, NY area values actually increased by .7% from 2010-2011.

Add to that the still amazingly low interest rates and the fine selection of homes on the market and wow- what a market to be buying in!!

If you are interested in buying a home- take note. "There's No Place Like Home!

Wow, I can't believe I am putting up the sunflower decorations around the home and office and preparing for the " pre fall" season of both my life and of real estate.  How quickly the year is going! " Pre Fall" for me is getting outside and truly appreciating the great weather before the cold weather comes. "Pre Fall" for  real estate  means the lull period, typically in August,  while families are enjoying the last bit of summer before school starts up. It's a typical trend to be expected and prepared for.

Now that the first half of the year is over, I must say that  the market in the Capital Area of Albany ( Albany, Schenectady, Troy) and surrounding areas including Saratoga have been quite good and I will add the word "stable" to that statement as well.

As the attached video will attest, pending sales were up in June by 17% with just a slight increase of .6% of inventory. The average price in June 2011 compared to last June was down only 1/2% for an average price of $190,000. Where other cities and areas are still experiencing dropping values, we here, in the Capital Area are soundly seated with stable values.

What will happen next is anyones guess. My personal hopes are for unemployment issues to stabilize as although this area is considered stable work wise, there have been some local companies as well as  our state government that have released workers or are "talking about it." Another item I am focusing on are the mortgage rates. They are still exceptionally low now, however, with the current dealings in the government and the possibility of the US Government receiving a lower credit rating, this could change rapidly.

If you are looking to buy or sell a home in the Capital Area, please call me at 518-366-2856 or send me an email at karencares@nycap.rr.com

Its mid June and although I have just come off from a whirlwind of late April and May... June seems to have "dried" up. Why???

In speaking with other agents who also have many listings in various price ranges; they too, are stating that showings on their homes have decreased dramatically- if any showings at all!

In Glenmont alone, a prominent community outside of Albany, only 1 home was shown last week in the $200K-$250K price range. Comparing that to a total of 15 showings during the week of April 13-19th, its obvious that the market has taken a "pause" from its earlier activity.

Is it job fear?  NYS is laying off 10,000 state workers around July
Can't be interest rates as they are in the mid 4% range, a true steal
Cant be selection of inventory as listings are feverish on the market
Cant be prices as I have seen the prices fall readily since March....

I'll take it simply as a pause and watch the pulse as the month ensues...
Watch for the next round of market stats as I will post them here. Mays stats are due out June 21.... so please revist my blog!

Tis the season to be buying a home and I can certainly tell Spring is here by the activity in the market. I cannot tell, however, Spring is here by the weather.. feels like fall.

Many lookers are out there and now, more than ever, I have folks asking me to find a short sale or foreclosure property for them. Although Albany is low on the list for having these types of properties, I do see them and I do show them.

Why do they want a short sale? Thats what I am thinking and the underlying thought from buyers is that they are "great deals". They actually are not. The bank has already taken a hit from either late payments and or now, they need to accept less than  the balance of the loan - hence the word "short". Seeing that mortgages are sold off to investors, the bank has an obligation to get the most they can for the home so fair market value still prevails.

In addition, the time frame for closing on a short sale home is extended due to paperwork, many delays, out of the area banking institutions handling the loan and the fact that there are many short sales across the nation and banks are simply "backed up". What is normally a 6-8 week process can turn into many months of waiting.

This article from Trulia sums the process up nicely and provides strategies for survival. Definitely worth reading if a short sale purchase is in your future!

http://www.trulia.com/blog/taranelson/2011/05/the_5_most_common_complaints_of_short_sale_and_reo_buyers_and_how_to_avoid_them?ecampaign=cnews201105A&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F05%2Fthe_5_most_common_complaints_of_short_sale_and_reo_buyers_and_how_to_avoid_them

Want to know the most direct place to go to get the stats and figures on the Capital Region Real Estate Market?

Of course, this website with the direct link to CapitalRegionMarketStats.com

Here, you will get a short video explaining all of the information PLUS charts and graphs showing sales, pending sales, average prices, days on market and more!

This is just a primer to get you exposed to what's going on "out there." Rely on me, your local professional, to assist you in applying this information to you and your locale.

Please call me with any questions at 518-366-2856.

Just when you think the gyration of home loans would settle down after all of the previous changes... here comes another one from the FHA.

FHA ( Federal Housing Admin) has become a popular product for home mortgages. According to the attached article from the Wall Street Journal, FHA now underwrites 56 % of home loans as of 2009. This was only 6 % back in 2007.

What are they changing?: In an FHA loan, the buyer must pay upfront Mortgage Insurance Premium ( MIP) which is an additional 1 % of the borrowed amount that is rolled into the loan. So.. if you are borrowing $200,000.. your actual loan amount would be an additional $2,000 for a total of $202,000.

Also.. in the monthly premiums.. there is an additional MIP charge. Currently, it is .9% of the borrowed amount accured annually  but divided up monthly. So.. on the same $200,00 loan above.. the MIP is based on the $202,000 and the monthly MIP would be an additional $151.50 to your payment.

This .9% is going up to 1.15% ( 1/4% change) effective 4/18/2011. So now, the additional MIP to your payment will be $193.58, an additional $42.08.

Why are they changing? The MIP is like an insurance fund to reimburse banks when buyers default. With the onslaught of foreclosures and folks "underwater" in their mortgage, the fund needed some boosting and some resources to insure its existance.

Why is FHA so popular?  An FHA loan requires only a  3 1/2 % down payment. A conventional loan.. depending on credit score, requires 10% + down. In a tough economy, cash is scarce. The lower downpayment is the major reason why people go to the FHA product.

Here is the link to the WSJ article. This explains EVERYTHING!

http://online.wsj.com/article/SB10001424052748703867704576183003307736130.html?mod=foxbiz

Call me with any questions!  518-366-2856

TechValley Homes is now Better Homes and Garden Real Estate/TechValley

Better Homes and Garden Real Estate is the 10th largest real estate franchise in the US with 200 offices in 21 states.  This franchise has a differential in the industry as its known as a "lifestyle" brand versus a traditional brand.

What does that mean??

Traditional brands offer you all sorts of information on home buying, tips, factual data and searching the MLS etc.  Thats all great and we do that too, however, we apply the way a person lives to our approach for a more rounded and informational experience that is based on the customer.

For example: on our web site of www.tvhre.com, you will find all sorts of information about how to use color, tips on landscaping, staging your home and more! In addition, Better Homes and Garden with its largely recognized name in the consumer world brings inherent value and familarity with its name for a comforting feel and fit.

Taking that a step further, BHG is so popular as its magazine is widely known and read. Knowing the parent company is a marketing genius and has consumer data and databases with the habits and buying trends of the American consumer; we can tap into that through their Pin Point marketing program. By targeting  direct mail pieces to people that are most likely to buy a listed home, we can "zero" in on buyers and make them better aware of a listed home.

Plus.. the brand has a many multimedia promotional tools such as a web commercial which is a dynamic and moving marketing piece set to music to capture a potential buyers interest . So much better than a static flyer in the email box or on a web site.

In addition: BHG  has slide show tours, virtual tours and other high quality digital marketing tools that will allow us to best promote and present a home for maximum exposure and appeal.

To add to the list... referals from other BHG agents in other areas and our affiliation with Cardus Relocation for maximum exposure to people both moving to and from the Albany area.

We are excited about this affiliation with BHG and I will post more about it as the details come to light. Look for samples of these marketing tools on my web site in the near future.