Real Estate

Archive for April, 2009

Top 20 U.S. Communities At Risk For Home Price Reductions

The risk of home price reductions across the U.S. has been triggered by the yearoveryear slowdown in the appreciation rate of home prices and a decrease in housing affordability according to the PMI Mortgage Insurance Co. The forecasts are based on PMI’s Winter 2007 Market Risk Index report that lists out the communities which face the risk of home price decrease in the forthcoming years. Several communities are at risk of home price reductions but in areas that have strong economic fundamentals such as low unemployment rates good job growth and incomes the risk of home price declines is much lower.

Out of 50 largest metropolitan statistical areas MSAs 34 have shown an increase risk of home price declines. The PMI U.S. Market Risk Index SM average score increased consequently from 328 to 342 raising the risk of home price decline in the next 2 years to 34.2 . The yearoveryear appreciation rate has slowed down in 43 of the 50 largest MSAs.

The risk of home price decline went up to 50 from 18 of last quarter in 19 MSAs with California and the Eastern Seaboard facing the most risk. Eight of these MSAs are located in California eight in the Northeast and two in Florida.

However most MSAs are going strong on the economic front in terms of unemployment rates and job growth with 46 out of the 50 MSAs recording employment growth. New Orleans topped the list of MSAs registering a positive job growth of 8.37 . Only Detroit and Warren in Michigan Cleveland in Ohio and Indianapolis in Indiana saw a slump in the job growth rate.

The top 20 communities at risk for home price reductions and their risk scores are as follows:

1.SacramentoArdenArcadeRoseville CA 604
2.San DiegoCarlsbadSan Marcos CA 603
3.OaklandFremontHayward CA 603
4.Santa AnaAnaheimIrvine CA 602
5.NassauSuffolk NY 601
6.RiversideSan BernardinoOntario CA 600
7.Los AngelesLong BeachGlendale CA 597
8.BostonQuincy MA 595
9.ProvidenceNew BedfordFall River RIMA 595
10.San JoseSunnyvaleSanta Clara CA 592
11.San FranciscoSan MateoRedwood City CA 588
12.Edison NJ 586
13.Fort LauderdalePompano BeachDeerfield Beach FL 579
14.WashingtonArlingtonAlexandria DCVAMDWV 568
15.New YorkWhite Plains Wayne NYNJ 566
16.CambridgeNewton Framingham MA 563
17.Las VegasParadise NV 550
18.NewarkUnion NJPA 549
19.MiamiMiami Beach Kendall FL 535
20.BaltimoreTowson MD 498

If you are considering buying a home condo or any other type of real estate be sure to seek out the services of a local real estate agent to advise you about realtime local market conditions.

About the writer:  Written by Jane Smith. Find a home by looking at our Santa Cruz Real Estate listings. If you want to visit Santa Cruz we can help you find a great Santa Cruz Vacation Rental on the beach.

Things To Remember When Buying A Home

The purchasing of a home is one of the most exhilarating purchases that anyone can make. It is usually the culmination of many years of hard work and has a sense of accomplishment like no other. So it stands to reason that it is also the purchase that should be the most planned and carefully made. This is likely going to be your base of operations for many years to come so spend a while getting comfortable will all aspects of the sales process before you jump into the market.

Now before you buy you must have your financial life well in hand. More specifically you must have a good hold on your credit. This may involve some leg work so be ready for it. Get your credit report from your bureau and review it in depth. Go as far back as necessary. Make sure that there are no outstanding items that have not been taken care of. If anything is there then see to it as quickly as possible and retain documentation from the bureau that it is dealt with. This is not only for your records but it might be helpful when applying for your mortgage. Next spend some time researching your mortgage options. Try to find one that suits you and your needs. Make sure that you can afford the payments each month and try to get the best interest rate possible. Remember it is not enough to have a prequalification if you really want to make your home shopping and buying easier then get a full preapproval. This preapproval will ensure home sellers that your financing is already in place and that they need not worry about your offer being conditional on your approval for a mortgage.

When you actually start shopping for a home make a few lists. The most important one should be the aspects of the home that you simply cannot do without. This usually includes things like number of bedrooms location proximity to work fenced yard etc. The secondary list should be those things that you would really like but are not essential. Usually if you give these lists to your realtor they will be able to refine your home options quiet a bit. This will help them to eliminate homes that do not fit your criteria so that you don’t have to waste valuable time looking at homes that do not suit you.

About the writer:  Bill Ucci is a certified Realtor specializing in the sale purchase of Orlando real estate. Put Bill’s expertise and knowledge to work for you. Contact Bill anytime or visit his site on the web at www.freehousefind.com

The Seven Deadly Sins That Home Buyers Commit

Buying a Home can sometimes seem to be a daunting task filled with details and pitfalls. It’s hard to remember everything as you are going through the process but if you can avoid the following seven common mistakes you will come out way ahead.

1 Not Getting PreQualified

This is the step you take before you even start looking at homes and it will make your life so much easier. Start your home search by visiting a lender. They will ask specific questions about your income bank accounts debt etc. and will help you determine how much home you can afford to buy. Stick within the limits they set for you and you will be much happier in future years. Their guidance is an important first step on the path to home ownership.

2 Thinking There is Only One Perfect Home For You

Buying a home is usually a process of elimination. You have a list of “must haves” and “want to haves” and “definitely dont wants”. There are a limited number of homes currently for sale in the area you have chosen. Often times you can’t get everything you want in one home so you must tradeoff and balance some of these “haves” “wants” and “don’t wants”.

New properties come on the market every day so try to be flexible and open to new possibilities. By eliminating the homes that don’t work you get down to picking the best of the “possibles”. Don’t worry you often end up finding a house that is just right for youand you’ll know it the minute you walk in.

3 Not Knowing the Total Costs Involved

When you find homes you like ask your lender for an estimate of closing costs. This should include Title Company fees Prepaid expenses like taxes insurance and prorated mortgage interest. Attorney fees and Homeowners Association dues may also need to be taken into account. Examine this Estimate closely and make sure you understand where each cost is coming from and whether it will be an ongoing cost after you own the home or a onetime fee. Check the actual Closing cost statement at settlement to make sure there are no surprises.

4 Not Having a Home Inspection

Some buyers try to save a few bucks by not having a whole house inspection or by doing it themselves. Saving money today this way could end up costing you thousands in the future.

Get a qualified Home Inspector to go over the entire house inside and out basement and attic. His report will call out all deficiencies and suggest repairs and further action. The findings in the report may also give you leverage you can use in the negotiations with the seller.

5 Not Considering Long Term Needs

It is important to think ahead. Is your family growing? You may need more home 35 years from now. That “cute breakfast nook” of today will not be so cute when six people are bumping knees trying to squeeze into it. Will this home suit you in the future or will you grow out of it.

6 Not Following Through on Due Diligence

Make a list of nonhouse related issues Schools crime rates neighbors traffic power lines new development in the area environmental issues etc. Ask these questions before you make any offer on a home. By getting these answers now you’ll have more confidence in your home purchase.

7 Not Buying a Home Protection Plan

This is an inexpensive short term insurance policy on the home usually covering appliances and basic repairs for one year. It can be purchased for a small fee and will give you peace of mind about that dishwasher or water heater going bad just three weeks after you move in every home buyers nightmare. Talk to your Realtor they can recommend a good plan.

If you can avoid the seven common mistakes above you’ll be miles ahead and can have peace of mind that you are making a solid well thought out decision about the purchase of your next home. Whats the old saying…..”An ounce of prevention is worth a pound of cure”? Never has it been so true as in the home buying process.

About the writer:  Vicki Walker Is a Realtor with Coldwell Banker in Davis California. Her clients are buyers and sellers of Davis CA Real Estate and homes.