Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general. 

Please click on this link to view the Housing Trends JUL-2012 Newsletterhttp://wendyjimenez.housingtrendsenewsletter.com 

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources. 

Housing Trends eNewsletter is filled with local and national real estate sales and price activity provided by MLSs and the National Association of Realtors, U.S. Census Bureau key market indicators, consumer videos, blogs, real estate glossary, mortgage rates and calculators, consumer articles, and REALTOR.com local community reports. 

If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report: 

http://wendyjimenez.housingtrendsenewsletter.com/dispContent.cfm?loadid=2&loadtype=0 

Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future. 

Sincerely yours, 

Wendy Jimenez
Century 21 Jervis and Associates

Interesting Facts from California Association of Realtors: Pending Sales In California Decline

Pending home sales in California decline
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported this week that contracts signed for previously owned homes in California took a dip in June. The decline in pending sales can be attributed to a lack of housing inventory.

Making sense of the story

• C.A.R.’s Pending Home Sales Index declined 3.8 percent in June compared with May but posted a 4.7 percent increase compared with a year earlier.
  
• Pending home sales are an early indicator of where sales are headed. Sales often close six to eight weeks after contracts are signed so a decline in June could mean weakness when July and August sales statistics are reported.
  
• C.A.R.’s report also showed a decline in the number of foreclosed homes selling. Last month, foreclosed homes accounted for 20.2 percent of all pending sales, a decline of 22.6 percent from May and 29.2 percent in June 2011.
  
• The share of equity sales – or non-distressed property sales – rose to 58 percent in June, up from a revised 56 percent in May.  Equity sales made up 50.5 percent of all sales in June 2011.
  
• The share of short sales edged up in June to 21.4 percent, up from 21.1 percent in May and from 20 percent a year ago. 
  
• The available supply of REOs for sale tightened slightly in June, with the Unsold Inventory Index declining from a 1.5-month supply in May 2012 to 1.4 months in June 2012.  The June Unsold Inventory Index for equity sales stood at 3.7 months and was 5.3 months for short sales.

9 Ways to Make a Kitchen Look Swank for Less

Costs for even relatively moderate kitchen redos can run well into the tens of thousands of dollars. Here are a few ways to enhance this focal point of a home on a budget.

According to Remodelingmagazine’s latest Cost vs. Valuesurvey, the average price of an upscale kitchen redo hovers about $113,000. Even the cost of a mid-range overhaul is a whopping $58,000.

However, sellers are rarely willing to invest the kind of time and money it takes to do that kind of remodeling job, especially one they’ll barely use before they move. But there are affordable alternatives to make this much-used gathering spot more appealing, both aesthetically and functionally. Here arenine easy-to-implement, easy-to-copy ideas for you to share with sellers and buyers. Tell them to try one, two, or perhaps all of them!

▪ Reuse existing elements in the kitchen when possible. “We try to take a hard look before we start any renovation to see what can be salvaged,” says architect Talia Braude, AIA, LEED AP, whose firm Braude Pankiewicz Architects is based in Brooklyn, N.Y. For example, when Braude found floor joists that were too damaged to be structurally sound, she reused them as kitchen shelves, for which they worked perfectly.

▪ Go with affordable cabinets, possibly a line with simple maple, cherry, or oak rather than exotic imported wood or lacquered fronts. Also, opt for pressed rather than solid wood interiors and shelves to pare costs. Because cabinets often represent 50 percent to 60 percent of a remodeled kitchen’s cost, saving here brings down the price, says Lou Manfredini, Ace Hardware’s “Home Expert” based in Chicago. But if possible, spend a bit more on quality hardware that will eliminate wear and tear when opening and closing doors and drawers. One good place to start looking for affordable cabinets is at IKEA, says Braude, which her client Orli Belman did when remodeling a kitchen in her Los Angeles home. Belman saved even more by purchasing cabinets during IKEA’s kitchen sale. Other alternatives include replacing the doors (and reselling the old ones), or repaint cabinets with a product like Ace Hardware’s Cabinet, Door & Trim Paint, an alkyd-based semi-gloss finish that yields a smooth, factory-like finish.

▪ Appliances are another huge cost factor in redoing a kitchen, and stainless-steel name brands are among the biggest offenders. Besides opting for less expensive black-and-white fronts and going with cheaper brands, Web sites like Craigslist and Overstock are good resources for new or little-used items others are trying to get rid of. Belman went those routes and found a double oven and refrigerator drawers on Craigslist, each for $400, when a construction project stalled. She estimates each would have cost about $3,000 retail. She also found an inexpensive but good faucet at Costco and discontinued Martha Stewart light fixtures on another Web site.

▪ Changing a countertop or several can add an instant fresh look, but instead of replacing them with high-end granite, marble, or manmade quartzes, Manfredini suggests covering tired laminate tops with RustOleum’s highly durable Countertop Transformation product, a three-part system that transforms them into look-alike granites in five different colors. Belman also found affordable butcher-block tops at IKEA.

▪ A new backsplash can make a huge difference, and there are many self-adhesive tiles that are easy to install for DIY consumers, including those with the hot metal look in vintage or modern patterns and a host of sizes, shapes, and colors, Manfredini says. Savvy home owners also should consider contacting manufacturers, many of which offer overstocked goods for far less. For instance, Heath Ceramics has been known to sell them for 75 percent off retail at its factory showroom in Sausalito, Calif.

▪ New lighting is one of the easiest switches to make and offers a big payback since it can make a kitchen look larger and highlight its best features, from a great island to kitchen table to new backsplash. Advise homeowners to locate new lighting under cabinets where main tasks are performed, within cabinets, especially glass-fronted ones, to show off cabinets and attractive contents, and over a dining table or island where one great fixture will shine, literally. When possible, opt for compact fluorescent or light-emitting diode bulbs to conserve energy, even though the initial price is higher. And if the bulb’s compatible with dimmers, it’s a great way to vary moods.

▪ Though replacing an entire floor can be costly, time-consuming, and expensive, there are handsome options that will last and won’t break the bank. Durable and affordable options include Marmoleum, a sustainable linoleum, which no longer resembles what your parents or grandparents had but comes in hot colors and textures; old-growth bamboo that’s denser than new variations; and cork, another natural material that’s easily repairable if dings (or worse) occur. If a room is partly remodeled, often the floor can be saved with patching and restaining rather than replacing all of it, Braude says.

▪ Buyers should consider redoing the layout if it doesn’t work, then save elsewhere rather than the reverse, Braude advises. If they install all new cabinets and appliances, but keep the same old, poorly functioning kitchen plan, they probably won’t be pleased. It’s better for them to gain a new layout and budget elsewhere — maybe keep cabinets — and later replace them, she says.

▪ Even when budgeting, home owners shouldn’t forget to add in one or two splurges for a focal point and some kind of “wow” element to raise the level of the renovation, even if it’s a budget one, Braude says. Examples include handcrafted tiles with beautiful finishes, colors, and patterns, and a great island countertop, perhaps fashioned from a gorgeous CaesarStone

FICOScores

FICO stands for Fair Isaac Corporation.  FICO score or credit score is the most important factor in obtaining a loan of any kind in America.  Your score represents an estimate of your financial credit worthiness as calculated by a statistical model.  It attempts to predict the likelihood that you will repay a loan satisfactorily.  Scores range from 300 to 850.  A score above 720 is considered to be "good credit" and a score below 600 is considered "poor credit".  The score is typically based on the information in your credit report.  There are three major credit reporting agencies in the United States:  Equifax, Experian and Trans Union.  They each calculate their own FICO score which means when you ask what is my FICO you will probably get three answers.  Fair Isaac Corporation developed all three versions.  The exact formula for calculatiing the FICO score is a closely guarded secret.  However, Fair Isaac has disclosed the components:  punctuality of payment, how much credit you have vs. how much you use, length of credit history, types of credit used and how many credit reports have been run on you recently.

3.8% Tax in the Health Care Bill begins in 2013?

Today I want to address the possible 3.8% tax which will be put on home sales beginning in 2013.  There seems to be a misconception regarding this law.

Fact Check.org explains it this way:
The truth is that only a tiny percentage of home sellers will pay the tax.  First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly will be subject to it.  And even for those who have such high incomes, the tax still won't apply to the first $250,000 on profits from the sale of a personal residence or to the first $500,000in the case of a married couple selling their home.

A simple explanation comes from midiShaw:
The tax will affect those sellers of real property who will be otherwise taxed on capital gains under current tax laws.  Under current law if you sell your primary residence and meet the 'time criteria, you are exempt up to $250,000 or $500,000 (filing individually or jointly).  Any amount realized OVER that amount is taxable under tax schedules based on income.  As such, this new tax will apparently be added to the current capital gains tax burden IF your income is over $200,000/$250,000 (filing individually or Jointly).  for those selling second homes and investment properties, the tax once again, will be applied to the amount of gain realized.

As always please check with your CPA for further information regarding this tax.

Can You Take Care of All the Hassles?

People say: “It takes a village to raise a child”. The realities of today’s life (two family incomes and such) have forced a family to lean on others (neighbors, relatives, teachers, etc.) to protect and teach our young people about culture, history and acceptable behaviors. Teams, because of their ability to provide specialized solutions to problems, have often proved to be more efficient deliverers of information.

In real estate today (maybe more than ever), it also takes a team. As with a basketball team, each member needs certain skill sets and proper coaching on how to weave the different skills into a cohesive unit to achieve the desired outcome. The evolution of how things work has created a necessity of excellent communication between all the players. The needs of buyers and sellers have developed an even broader need for new members of a great team.

A great working relationship between an agent and a loan officer is an obvious connection. Changing mortgage guidelines, appraisal challenges and qualification standards requires everyone working together. But, there are so many others whose expertise may be needed to properly advise today’s clients.

An Accountant

One of the reasons people buy a home is that they hear of the tax advantages. What really are they? How will the purchase affect my monthly cash flow? Should we adjust our exemptions with our employer? What about home repairs and depreciation? What about parents who gift money to their kids…is there a smart way to do it?
And for sellers, especially people who may not be buying a new home, what are the consequences of their sale? Capital Gains Tax? Can/should they consider “gifting” proceeds to relatives? Long term health care? Life Insurance? That leads to …

A Financial Planner

How does buying or selling real estate impact cash flow and long term savings and planning?

Attorneys

Divorce attorneys, estate attorneys, elder care attorneys and even bankruptcy attorneys have a role in many transactions these days. Choices made without their counsel can have very damaging repercussions.

Home Inspectors, Termite Companies and Home Improvement Contractors

These professionals protect customers from nightmares, or explain the costs associated with preventing or curing problems.
Making a decision to buy or sell a home has far reaching effects. To think your real estate agent or loan officer is an expert in everything is not prudent. However, aligning yourself with a professional who surrounds themselves with other professionals is extremely wise. Make sure the people you work with have a network of related experts that you can tap into. You need to be represented by a TEAM!

Whenever a person sells anything, they hope to get the highest price possible for the item. This obviously applies when a homeowner sells their house. In many cases their home is the largest investment they have ever made and hope to get the highest possible return on that investment. For that reason, they will want to see that you can give them the right advice in order for them to get them ‘the best price possible’.

A COMPETITIVE MARKET ANALYSIS (CMA)

Be prepared to share with the seller the completed sales of houses similar to theirs that have taken place in the last 90 days. Also share with them their current competition: homes similar to theirs that are now on the market and will be attracting the same purchasers.

AN UNDERSTANDING OF THE SUPPLY & DEMAND THEORY

The price of anything is determined by the supply of that item in relationship to the demand for that item. The direction the value of houses in a marketplace is headed can be determined by this principle. Here is a good guideline:

1-4 months available inventory identifies a sellers’ market with prices probably appreciating
5-6 months available inventory depicts a normal market with stable prices
7+ months available inventory identifies a buyers’ market with prices probably depreciating

INSIGHTS INTO WHAT MAY IMPACT PRICES IN THE NEXT 6 MONTHS

The volatility of a market can often be foreseen by examining the underlying data points that may influence prices in the future. (For example, if an area has a large percentage of homeowners 90 days behind in their mortgage payment, there is a good possibility that foreclosures will begin to increase in the region. An increase in distressed properties usually results in a decrease in home values.) Insights like this should be shared with the homeowner.