78% of Americans Believe Home Prices Have Bottomed

Beacon Economics analyzed home affordability and came away feeling optimistic.

Beacon Economics founding principal Christopher Thornberg, whose firm advises a variety of business clients, says the high level of affordability is likely to drive demand and reduce the stock of excess inventory, ultimately resulting in the need for new housing, a rise in prices, and a pickup in new construction.

"While prices may fluctuate modestly over the next several months, we believe the worst of the housing crisis is behind us," says Beacon Economics Research Manager Jordan G. Levine. "We expect prices to stabilize around current levels and likely be higher in the next 12 months."    Source: Beacon Economics (10/11/2010)

Worst is over?

AND......

Fannie Mae has conducted a poll of both homeowners and renters to gauge consumers’ attitudes toward housing in the U.S. The results indicate that Americans have become more cautious about buying a home, though most believe the market has bottomed out.

Rents are expected to increase more than home prices, and Fannie says mortgage borrowers and underwater borrowers are less discouraged about homeownership, while delinquent borrowers and renters are more pessimistic.
Of the respondents to the Fannie Mae National Housing Survey, 47 percent believe home prices will hold steady over the next year, while 31 percent expect them to rebound.

Seventy percent of Americans think now is a good time to buy a house, compared with 64 percent in a similar survey conducted in January 2010.   Bottomed out?

Georgetown Stats - Week of October 4 - 10

According to the MRIS (Multiple Regional Information Systems, Inc), the following real estate transactions have taken place in Georgetown real estate during the week October 4 - 10.

8 new listings: 5 Single Family-SF ($817,000 - $4,750,000) and 3 Condo/Co-op-C/C ($469,000 - $1,695,000)

5 properties came under contract: 4 SF ($999,000 - $2,495,000) and 1 C/C ($545,000)

3 properties went to closing during this time frame: 1 SF ($1,399,000) and 2 C/C ($575,000 - $2,300,000)

Why do we have overpriced listings?

I guess this begs another question immediately, i.e. "How does one know a property is overpriced?"  Of course the only certain way to know is put it on the market and see if someone will pay the listing price.  That almost never happens.  The buyer generally pays more than or less than the asking price.  The job of the Realtor is to help the owner determine a price based on location, amenties and condition...and using the sale of other properties as a guide.  Even with a lot of research it is difficult to get the price exactly right.  What we do know, however, is that when a house sits on the market for months, there is no buyer who is willing to pay the list price, and the process is generally painful for both the agent and the owner.

I've linked an article here which I find interesting and maybe a bit harsh, but in most ways, on the money.  (I disagree with one of her conclusions that agents don't care whether the property sells or not... that's not my experience during my 27 years of this.)  But it is interesting and informative reading.  More at:
Overpriced Listings

Georgetown Stats - Week of September 27 - October 3

According to the MRIS (Multiple Regional Information Systems, Inc), the following real estate transactions have taken place in Georgetown real estate during the week September 27 - October 3.

6 new listings: 3 Single Family-SF ($949,000 - $5,990,000) and 3 Condo/Co-op-C/C ($849,000 - $4,750,000)

2 properties came under contract: 1 SF ($1,225,000) and 1 C/C ($699,000)

3 properties went to closing during this time frame: 2 SF ($800,000 - $1,525,000) and 1 C/C ($559,000)

What's New in New Housing Design

Here are the products grabbing the attention of the home building and remodeling industries, according to Bill Millholland, executive vice president of sales and marketing at Case Design/Remodeling in Maryland, and Jamie Gibbs, a New York-based interior designer:

· Appliance Drawers. Small warning drawers, modest-sized dishwasher drawers for small loads, refrigerator drawers and microwave drawers.

· Counter-depth refrigerators. Some are only 24 inches deep.

· Motion-detecting faucets. Like you'd find in the restrooms of businesses.

· LED (light-emitting diode) lighting. These are used under cabinets and in ceiling fixtures as a longer-lasting, more efficient alternative to compact fluorescent lamps and incandescent bulbs.

· Electric heated floors. A nice touch in bathrooms,

· Showers with multiple heads and body sprays. Bathtubs are out.


Source: The Washington Post (09/25/2010)

Georgetown Stats - Week of September 20 - 26

According to the MRIS (Multiple Regional Information Systems, Inc), the following real estate transactions have taken place in Georgetown real estate during the week September 20 - 26.

11 new listings: 10 Single Family-SF ($789,000 - $7,850,000) and 1 Condo/Co-op-C/C ($999,000)
3 properties came under contract: 1 SF ($1,845,000) and 2 C/C ($359,000 - $499,000)
3 properties went to closing during this time frame: 1 SF ($939,000) and 2 C/C ($454,900 - $581,000)

Who Is Saying It is Time To Buy a Home? EVERYONE!

by R. Scott Shaheen, Regional Vice President, Long & Foster

“Enough with the doom and gloom about homeownership.” – WSJ 9/16/2010

WOW! The Wall Street Journal is calling for the end of the ‘doom and gloom’ talk surrounding real estate.

Who else is jumping on the bandwagon?
The Wall Street Journal

In an article last week, 10 Reasons To Buy a Home, Brett Arends reported:

Sure, maybe there’s more pain to come in the housing market. But when Time magazine starts running covers that declare “Owning a home may no longer make economic sense,” it’s time to say: Enough is enough.

He then posted 10 reasons to buy a home today:

1. You can get a good deal.

2. Mortgages are cheap.

3. You can save on taxes.

4. It will be yours.

5. You’ll get a better home.

6. It offers some inflation protection.

7. It’s risk capital.

8. It’s forced savings.

9. There is a lot to choose from.

10. Sooner or later, the market will clear.

The Nation’s Real Estate Pricing Expert

Karl E. Case is a professor emeritus of economics at Wellesley. Professor Case is also co-creator of Standard & Poor’s Case-Shiller House Price Index and is recognized as the one of the foremost authorities on real estate today. In a New York Times op-ed piece earlier this month titled, A Dream House After All, he said:

I have never quite understood what the American dream really means when it comes to housing. For some people, it means having a solid and fairly safe long-term investment that is coupled with the satisfaction of owning the house they live in. That dream is still alive.

Others, however, think the American dream is owning property that appreciates by 30 percent a year, making a house into a vehicle for paying bills. But those kinds of dreams have become nightmares for the millions of foreclosed property owners who have found themselves sliding toward bankruptcy.

But for people with a more realistic version of the American dream, buying a house now can make a lot of sense.

The Wealthy

The only segments of the housing market that are showing sales growth are the price points over $1 million. That market is up 6.1 % in the second quarter of this year vs. the second quarter last year. A recent survey showed that over 30% affluent buyers are planning to either build/buy a new primary residence or a second/vacation home in the next twelve months. It appears the wealthy believe now is the time to buy!

Everybody Else

Fannie Mae just released their National Housing Survey. The survey reported:

• 82% of respondents consider homeownership important to the economy, up two points from January.

• 70% of respondents think it is a good time to buy a house (of which 36% think it is a very good time to buy), up six points from January. This is also four points higher than the 2003 survey – well before home prices peaked – when 66 % said it was a good time.

Bottom Line

Our iconic financial newspaper, our nation’s real estate pricing expert, the wealthiest people in the country and 70% of everyone else think now is the time to buy a home. It probably makes sense to listen to them.