YTD Sales, Bonneville County Nov 2012

Detached single family residences...does this volume surprise you? More number of homes sold overall than even 2008!

Where do you think we will go from here?

Ten Signs it's Time to Sell Your Home

YES, a couple of these are silly. But a couple might hit it right on the head...

1. The kids have all graduated from college.  You and your husband finally have time to yourselves…then they move back home!
   
2. You have three spare rooms in a four bedroom house.
   
3. You have to shuffle your cars each morning to leave for work.
   
4. You spend more time driving to work than you do with your family.
   
5. You spend more money each month for storage than you do for your mortgage.
   
6. Your neighbor found a loophole in the homeowner's association rules and is raising donkeys.
   
7. You keep hearing faint voices telling you to "get out" and they're getting louder.
   
8. Grandpa Jed just struck oil while hunting in your back yard.
   
9. The dog’s house doubles as a guest room.
   
10. You have to take a number to use the bathroom.

If you would like a FREE, NO OBLIGATION consultation on selling your home, contact me today. And don't forget to ask about my "Hassle-Free Guarantee!"

June 1, 2012 Local Market Stats

Good news! Our local market inventories continue to decline year-over-year. In Bonneville County, the first of June this year saw an overall inventory drop (available properties) of 14%.

Year-to-date through May 31st, we are up in closed units by 19%, and the number of units going pending is up 25%. Our values are holding steady vs. the same period last year, with an average sales price of $144,147.

For May, the number of available properties that were considered "Distressed" (short sales, pre-foreclosure, bank-owned) is holding steady at 12% of all available properties, but the % of closed sales that were distressed properties is down to 27% - down from last year that was fairly steady at 33-38%.

What does all this mean?

• There are fewer homes on the market for buyers to choose from. 
• Older inventory is clearing the market. 
• The bloom has fallen off the rose for many buyers with respect to distressed properties...
• ...about 73% of all sales are traditional sellers, not distressed at all.

It's a great time to sell!

Rates have dropped again lately! Local 30-yr conventional rates are down to 3.625...unbelievable! Refer back to my previous post demonstrating how every 1% in interest rate drop give you an extra 11% in buying power. That mean, if you thought 4.625% was good last year, for the same payment you can now get even more house!

It's a great time to buy!

If you know of someone who would like to buy or sell a home, please contact me today! 208.201.2034

Harmful Effects from Changing the Listing Price?

A colleague of mine share this powerful post summarizing research from a PhD professor at Florida International University and the Editor of the Journal of Housing Research regarding the effects of price changes on listings.


Do you follow your realtor's pricing advice? Will this research effect how you price YOUR home?
 
Harmful Effects from Changing the Listing Price?

Chris Pelkola Lee, Realty, LLC | Keller Williams Realty East Idaho: I garden, therefore I am

Chris Pelkola Lee, Realty, LLC | Keller Williams Realty East Idaho: I garden, therefore I am

It bears repeating...

I posted this about a month ago, but just had a presentation to a Seller yesterday and pulled this up as an example.

Because they are so low, interest rates have a greater impact on affordability than either appreciation or depreciation factors at this point. Every 1% change in interest rate impacts affordability by 11%. Here is an illustration to consider.

At 3.75% (30 year fixed) the principal and interest portion of a $200,000 is $926.23

If the rate goes to 4.75% you can only borrow $178,000 for a principal and interest payment of $928.53

If the rate goes to 5.75% you can only borrow $159,000 for a principal and interest payment of $927.88

These numbers are incredibly enlightening! Consider that as a Seller, you bought into our local market in 2007-2008 (at our peak) and purchased a home for $159k and have not refinanced. You are considering listing your home and buying and buying a larger home, but the value for your current house is below what you are expecting, say $135k, so you will be taking a loss. Should you stay, or should you go?

Considering you will be re-buying into the same value-depressed market, for the same payment you can now afford to buy a $200k home (which 4-5 years ago sold for $240k) compared to 4-5 years ago!

Same payment, larger (possibly newer) step-up home. Did you lose or gain?

Idaho Falls Goes "First Class"

Happy news today for local frequent corporate travelers!

I just read this post in a local blog I follow, BizMojo Idaho. Seems that as of today, the SkyWest service to Salt Lake City now offers first class cabin service.

What a difference a day makes! :)

Check out BizMojo for more information, and other local business news...and tell him Chris Lee sent you! :)

http://www.bizmojoidaho.com/2012/05/first-class-cabin-service-returns-to.html?spref=tw

I garden, therefore I am

I agreed to move to Idaho on the condition that I could have a yard and a garden. We have a large yard, and we are now making our own gardens!

This is the start of our vegetable garden two years ago after removing grass, moving the fence and a couple of sprinkler heads, building the boxes (and filling them with soil!) and mulching all around. Each year it grows with great anticipation. Evenings are spent with a glass of wine and a 'garden tour,' inspecting each plant and the progress from the day before. What a joyful way to decompress from the day! And last year we had a record harvest, to boot!

So, once again, the snow is gone and spring has arrived. My little seedlings are started. I may have jumped the gun in planting the greens, onions and carrots in the beds and perhaps they washed away in that last rainstorm last week. If so, no worries, I will relish the time to plant again!

I am now looking forward to a couple of weeks from now when we can transplant the tomatoes and peppers outside. Anticipation at each step. Yet the garden teaches me patience.

Happy sowing! :)

It's Official: It's Now Cheaper to Own a Home Than to Rent It

Sometimes what happens in Vegas doesn't stay in Vegas.

This Wall Street Journal article out last week compiles information from Reis, Inc, a real estate research firm, a Deutsche Bank housing analyst, Zelman & Associates and brokers across the country.

"Conditions are "overwhelming in the favor of buying now. It is unequivocal."

Locally, we are finding the same trending. Are you currently renting and finding the same pressure of higher rents, especially probably in the 2 bedroom price ranges? Perhaps it's time to consider all your options.

http://online.wsj.com/article/SB10001424052702304750404577322011443831768.html?mod=residential_real_estate&utm_source=twitterfeed&utm_medium=twitter 

Is It a Good Time to be a Seller?

Wondering whether it's a good time to be a Seller?

Because they are so low, interest rates have a greater impact on affordability than either appreciation or depreciation factors at this point. Every 1% change in interest rate impacts affordability by 11%. Here is an illustration to consider.

At 3.75% (30 year fixed) the principal and interest portion of a $200,000 is
$926.23

If the rate goes to 4.75% you can only borrow $178,000 for a principal and interest payment of $928.53

If the rate goes to 5.75% you can only borrow $159,000 for a principal and interest payment of $927.88

So you can see by these examples the absolutely incredible impact interest rates have on housing affordability! Not only can buyers afford more, but if you are planning to re-buy into the same or a similar market, you will enjoy the same buying power benefits.

Thinking twice, now? ;)
 

2 Homeownership Tax Deductions Disappearing This Year

As Realtors, we are advocates for home ownership, by definition. It's in our pledge:

"To protect the individual right of real estate ownership
and to widen the opportunity to enjoy it"

Many of us contribute personal funds (not tax-deductible) to fund grassroots campaigns designed to alert our membership and the public about issues in our nation and individual states that threaten these principles by affecting the affordability of real estate, myself included.

Yet in these economic times, "everything is on the table." Here are two items that will affect you personally come tax time next year, if they are not renewed. 

Have a look at your taxes from this year and the mortgage insurance premium write-off you were able to take, if eligible. Think it's no big deal now?

See the article at Houselogic, here. The Houselogic website is brought to you by the National Association of Realtors.

Selling Myth #6...

Enjoying these tips? Here is the last in the installation, courtesy of Keller Williams.

Myth #6:  When you receive an offer, you should make the buyer wait. This gives you a better negotiating position.

Truth:  You should reply immediately to an offer!  When a buyer makes an offer, that buyer is, at that moment in time, ready to buy your home.  Moods can change, and you don't want to lose the sale because you have stalled in replying.

It is now the traditional spring buying season and the buyers are out! If you know someone thinking of selling, contact me today!

Selling Myth #5...

Myth #5:  You are better off selling your home on your own and saving money on the commission you would have paid to a real estate agent.

Truth:  Statistically, many sellers who attempt to sell their homes on their own cannot consummate the sale without the service of a real estate agent. Homeowners who succeed in selling their home by themselves usually net less than if they had a real estate agent working for them. The National Association of REALTORS® surveys consumers every year, including homeowners who succeeded in selling their home without a real estate agent. Over 70% of these homeowners say that they would never do it again.

Next: Myth #6...

Selling Myth #4...

Halfway through the miniseries, here is Myth #4 as brought to you by Keller Williams. Do any of these seem familiar yet?

Myth #4:  Your home must be every home buyer's dream home.

Truth:  If you get carried away with repairs and replacements to your home, you may end up over-improving the house.   There is a point where improving your home doesn’t pay off.  The key is to consider what competing properties feature and look like.  A highly-motivated real estate agent will consult with you on what competing properties have to offer – he/she can even show you competing properties so that you can make sound home improvement decisions.

Next: Myth #5...

Selling Myth #3...

Myth #3:  Once a potential buyer sees the inside of your home, curb appeal won't matter.

Truth:  Buyers probably won't make it to the inside of the home if the outside of your home does not appeal to them.   Buyers and their agents often do drive-bys before deciding whether a home is worth their time to look inside.  Your home’s exterior must make a good first impression so that buyers are compelled to stop and come inside.  All it takes is keeping the lawn mowed, shrubs and trees trimmed, gardens weeded and edged, and clutter put away. 

Next: Myth #4...

Selling Myth #2...

Myth #2: Minor repairs can wait until later. There are more important things to be done.

Truth:  Minor repairs make your house more marketable, allowing you to maximize your return (or minimize loss) on the sale.   Most buyers are looking for homes that are ready for them to move into.  If your home happens to attract a buyer who is willing to make repairs, he/she will begin asking for repair allowances that come out of your asking price.  The amount of an allowance that you have to offer a buyer is usually more than what it would cost for you to make the repair (or hire someone to make the repair).  Remember, buyers are comparing your home to other homes that are currently on the market.  Your home should be inviting so that everyone who looks at it can see themselves living there.  

Next Myth #3...

Six Selling Myths Uncovered

As a part of Keller Williams Realty, I have come across these this piece and find it to be rather valuable to Sellers. These are also items that come up regularly with my own clients, so I thought I would share this here. Not too much to read in a day, more to come! Chris

Myth #1:  You should always price your home high and negotiate down.

Truth:  Pricing too high can be as bad as pricing too low. If you list too high, you'll miss out on buyers looking in the price range where your home should be. Offers may not even come in, because buyers who are interested in your home are scared off by the price and won't even take the time to look at it. By the time you correct the price and list your home at its fair market value, you will have lost that window of opportunity when your home draws the most attention from the public and real estate agents; i.e. the first 30 days that it is on the market. A well-trained real estate agent who looks out for your best interests will consult with you on your home’s fair market value and different pricing strategies for the current market.

Next up: Myth #2...