Just how big is the second home market?

Recent statistics from the Census Bureau reveal that nationally, about 3.5% of the housing inventory falls into the seasonal, recreational, or occasional use category.

The states that lead the list with the highest number of properties in these categories may surprise you.

Based on the 2010 Census (not released until almost the end of 2011) these are the most current stats available. Given slow new construction rates these numbers are still realistic.

Find more on housing data and statistics from the Census Bureau.

Article courtesy of Luxury Insights.

Weekend Roundup: RBI Reports Market Improvements, Natitude for Your Clients and More

Is there really any value in professional designations?

RISMedia has just published a great article ("Time for Summer Break or Summer School?") by Margaret Kelly, CEO of RE/MAX.  In it, Ms. Kelly highlights the value of education and professional designations.

As she puts it: "At RE/MAX, we’ve crunched the numbers, and without a doubt, education matters when it comes to productivity. In fact, last year, RE/MAX agents who held a CRS designation averaged $22,000 more in commissions than the overall RE/MAX average commission; CDPEs earned $15,000 more; ABRs $10,000 more. RE/MAX agents who held the CLHMS earned an astonishing $100,000 more on average!"

She goes on to say: "If you’re really serious about your business, prove it. Show your clients and your competition that you hold yourself to a higher standard. Show them you want to be the best you can possibly be. We couldn't have said it better ourselves. After all, our mission has always been to help real estate professionals provide high quality service to the buyers and sellers of luxury homes and in so doing, maximize their own success. See you in summer school! "

FAST FACTS about the world’s wealthy: The wealthy are back and ready to buy real estate

If you are seeing an increase in luxury buyers in your market, there are at least two good reasons why.

1. The number of worldwide wealthy has recovered from the 2008 downturn, when the number of HNWIsplummeted from 10.1 million to 8.6 million in just one year. The current HNWI number has risen to a record 11 million. 
   
   Total wealth controlled by wealthy households has also increased since a five year low point in 2008, rising from $32.8 million to $42.0. 
   
   These statistics from The Capgemini/RBC World Wealth Report for 2012, offer good news for luxury real estate since demand for homes depends heavily upon the number of households who can afford them.
   
    
2. The post-recession affluent are also in a home shopping mood. Research done last year by Barclay's found that 57% of HNWIs want to increase their residential property portfolios in 2012. This buying attitude is most likely a result of lifestyle desires as well as the view that residential real estate is an investment opportunity and smart portfolio play. 
   
   Here’s what one billionaire has to say about buying luxury property now. 
   
   “Trophy (property) assets are probably the most resilient and successful investment options at the moment, and will be for the foreseeable future.” 
   --John Caudwell, Billionaire , 2012

Check out DIY Tips For Your Home from Lowes!

http://post.inman.com/read/archive?id=6927&e=roxannes%40kw%2ecom&x=1ebe9d49

FROM YAHOO: 10 DIY Projects To Sell Your Home Faster

With the troubled housing market of the past five years and banks still reluctant to lend, its no wonder homeowners hoping to sell are sitting on the market for months at a time. Buyers, meanwhile, are trying to find a balance between their dream home and one that's affordable.

For those trying to sell a house, what are some quick and easy DIY projects that can help sell your home faster? We asked experts to share step-by-step instructions for completing projects bound to modernize your home, from resurfacing cabinets to eliminating home odors to re-caulking bathroom grout.

1. Create a welcoming entrance
If you don't immediately impress potential buyers as they enter the home, you're setting yourself up for a tough sell. Creating a welcoming entrance is arguably the most effective way to sell your home faster.

Doug Perlson, co-founder and CEO of RealDirect.com, shares the following tips for instantly improving curb appeal:
Remove weeds and make sure plantings are trimmed and don't appear overgrown.
Replace old address numbers with modern exterior ones. It’s a quick and inexpensive update.
Paint the front door and refrain from excessive decoration.
Part of what makes an entrance appealing is what you don't see. Specifically, your entrance should not be crowded with shoes, keys, mail, etc.

2. Mulch
Applying mulch to your front and back yards is another inexpensive way to make your home more appealing to buyers.

Jason Cameron, TV host and TruGreen partner, shares these strategies for mulching:
Apply a one- to three-inch layer of mulch – any thicker, and roots will begin growing in the mulch instead of the soil, making them susceptible to drought and low temperatures.
Check the depth of the mulch in your landscape beds. It should be two to three inches deep. Add more mulch if you do not have the minimum level in place, but do not exceed four inches. When rainfall is limited, mulch not only conserves soil moisture, but moderates soil temperature and helps deter weeds.
Make sure your mulch is not too close to the base or trunk of the plant, as it could cause decay and winter injury.

3. Eliminating odors
You may not notice odors in your home, but prospective buyers will.

Jill M. Banks of Happily Better After Room Redesign & Home Staging suggests using baking soda as a way to fight odors: "Baking soda is a natural odor neutralizer, so if a spot in the carpet still smells funky after cleaning, try sprinkling some baking soda on it, leave it for 15 minutes or so, then vacuum."

She says baking soda can also be used in garbage disposals, trash cans, washing machines and refrigerators to knock out mystery smells.

4. Resurfacing cabinets
Replacing your cabinets is undoubtedly a major expense and will likely require a professional to complete. Resurfacing your cabinets is a cost-effective way to spruce up your kitchen, though.

Design expert Kathy Peterson offers the following steps to a perfect cabinet:
Step 1: Remove hardware, doors and drawers.
Step 2: Clean the surface.
Step 3: Deglaze it with liquid sand, then clean again.
Step 4: Paint and, depending on the style you're looking for, add a tint over the paint (design kits can help you with this).

5. Baseboard repairs
The baseboards in your home are subject to plenty of wear and tear over the years. To make some easy repairs, Frank Foti, business manager adviser for Mr. Handyman, offers these tips:
Strike nails flush with face of trim board using a nail punch or awl tool.
Patch holes and/or small cracks/dents with wood filler; sand; re-paint.
Caulk or re-caulk top of trim to wall.

Article Courtesy of Yahoo.

Keller Williams Realty Dominates the 2012 Real Trends 500!

Keller Williams dominated the REALTrends 500 Report. Agents, tout your top-notch status with your sphere. Leadership, spread the word that you are the clear winners in your market!

Baltimore-area foreclosures up from April, down from 2011

Foreclosure activity in Greater Baltimore and Maryland is following a national trend of short-term increase and year-over-year decline.

In May, one out of every 1,651 Greater Baltimore housing units was in foreclosure — a 7.7 percent spike over April but a 2.5 percent decrease from May 2011, according to data from RealtyTrac Inc.

Statewide, the foreclosure rate increased 20.3 percent from April to May, but decreased 4.1 percent from May 2011. Similarly, the national foreclosure rate increased 12 percent from April to May, but declined 15 percent since May 2011.

There are 205,999 housing units in foreclosure in the United States following two straight months during which that number had dipped below the 200,000 mark.

Although the numbers are mixed, RealtyTrac CEO Brandon Moore said analysis continues to point to a spike in distressed properties.

“U.S. foreclosure activity has now decreased on a year-over-year basis for 20 straight months including May,” Moore said, “but the jump in May foreclosure starts shows that it’s going to be a bumpy ride down to the bottom of this foreclosure cycle.”

Pre-foreclosure sales are on the rise, Moore said, suggesting an increasing number of properties are going to end up selling in short sales or auction sales to third parties rather than bank-owned sales.

That, he added, would be a relatively good development both for lenders and homeowners.

“Pre-foreclosure homes sell at a higher average price point than bank-owned homes,” Moore said.

“More banks are now recognizing that treating the problem of delinquent mortgages with short sales rather than bank repossessions can help them minimize their losses and also avoid taking on more [owned real estate], which they have to manage, maintain and market for sale.”

Article Courtesy of James Briggs of the Baltimore Business Journal.

Top 10 Home Improvement Myths

Not all home improvements are created equal. Even in a seller’s market, it’s important that homeowners make the right investments that will yield higher returns. As you guide your clients toward a profitable sale, make sure you’re an expert on the top 10 home improvement myths so you can prevent your clients from believing them.

Father’s Day is next week, and Dad is sure to get a few tools or gift certificates to a home improvement store that he’ll be itching to use, so make sure your clients are in-the-know before then!

Top 10 Home Improvement Myths:

1. Any remodeling project will add value to your home. While many remodeling projects will add value to a home, some can be seen as a negative by future buyers. For instance, combining two smaller bedrooms to create one larger bedroom may better fit one homeowner’s lifestyle today, but it may cause the home to lose value in the eyes of a future buyer who needs the two separate rooms.

2. Buying the highest-quality materials attracts more buyers.

Installing high-end materials may seem like a wise decision, but it can backfire. For instance, using the most expensive tile in a bathroom may create an impressive appearance, but value-conscious buyers may opt for a more affordable home if the seller has over-improved compared to others in the neighborhood.

3. Adding square footage always adds value. A better way to think about this statement is to insert the word useable into the sentence. Finished attics and basements – even if considered liveable by local standards – may not be attractive to a buyer if they are not finished to the same standards as the rest of the home.

4. Colors and textures – safe and simple is better. Keeping a home “vanilla” so buyers can choose their own style and décor might be a safe bet, but it ignores the fact that most buyers just don’t have the ability to visualize the home differently. Without splashes of color and mixtures of texture, sellers can lose value to others that have taken the time to consult with an interior designer.

5. Inside improvements are better than outside improvements.

Not necessarily. If a home’s exterior has been neglected or doesn’t offer a good curb appeal, a buyer might stop there – and then the seller’s efforts on on the inside may not net them any more dollars. To get the biggest bang for their remodeling buck, sellers should start from the outside and work their way in.

6. Adding a bedroom is better than adding a bathroom. It depends on the starting point. If a seller only has one or two bedrooms to start with, adding a bedroom before adding a second bath is probably a wise choice since most buyers are more attracted to three-bedroom homes. On the other hand, if the home already has three bedrooms and only one bath, the sellers’s next investment should probably be in a new bathroom.

7. Paint hides a multitude of sins. Dry rot? Fungus damage? Mold problems? Carpenter ants? Termite issues? Nothing a can of paint can’t fix, right? Wrong! Not only does this practice violate disclosure laws in most states, it can set sellers up for liability after the sale, as most buyers will want the sellers to foot the bill for these hidden issues.

8. Converting a garage to living space is a great trade-off.  Nope. A garage conversion is almost always viewed negatively by future home buyers unless the sellers replace the lost garage with another parking and storage space of equal size.

9. Sellers can save money by doing improvements themselves. For some homeowners, wiring a new lighting fixture or plumbing a new dishwasher is a no-brainer, but for others it may end up costing more later if they have to have the work redone by a professional. Another consideration is local and state laws regarding remodeling work: In many states if a buyer has purchased a home to remodel and resell, they must either hold a contractor’s license or hire a contractor to do the work for them.

10. Pools add value to your home. This is only true in areas where pools are must-have amenities. In most areas of the country, pools have more limited appeal – and the idea of maintaining a pool for ten months out of the year when it can’t be enjoyed won’t appeal to most buyers.

Knowing these top home-improvement myths will allow you to help your seller clients choose the right remodeling projects. But don’t stop there. To keep your pulse on the amenities that are coveted most in your market, talk to local remodeling professionals, contractors, and home-improvement specialists on a regular basis.

Time To Get Off The Fence!

I hope you are having a good week. Here is some information I thought you would find helpful in getting your buyers off the fence.

Buying a home may never get any cheaper than this. Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market. With home prices down 34% nationally since 2006 and home loan rates at historic lows, homes have never been more affordable -- but it won't stay this way for much longer.  Economist expect  home prices to flatten out by the third quarter and start climbing again by next year.  The decline in  foreclosures and  contin­ued job growth is partially responsible.   As buyers get their finances in order and improve their credit lines they will have better ac­cess to more home loans.

Some economists, like Trulia's Jed Kolko, expect home prices to pick up even more quickly. Trulia's data shows that the national av­erage for asking prices already increased 1.4% in the first quarter of 2012, compared with the last three months of 2011. One major factor that will drive the trend is the cooling of the foreclosure crisis. Stan Humphries, chief economist for Zillow, said that the per­centage of residential loans 90 days or more late, a good predictor of future foreclosures, is "falling fast." That percentage dropped 15% year-over-year to 3.1% through the end of 2011, according to the Mortgage Bankers Association. And the decline is accelerat­ing: More than 70% of the decline came in the last three months of the year.

Before things slow down, however, buyers should brace themselves for a temporary spike in the number of foreclosures as banks start expediting the processing of hundreds of thousands foreclosures that were stuck in the system following the robo-signing scan­dal. That backlog should move more quickly now that new guidelines for processing foreclosures have been outlined in the $26 bil­lion foreclosure settlement. Many of the bank-owned properties currently coming out of the foreclosure pipeline are being snapped up by investors who are fixing them up and renting them out -- often to those who were displaced by the foreclosure of their own home. That has helped to lift prices on foreclosed properties, according to Alex Villacorte, the director of analytics for Clear Capital, which specializes in housing market valuations. Source: CNN/Money

Bargain home prices have jump-started sales on second homes, but more purchasers are opting to buy properties much closer to their primary residence. In the past, second-home buyers tended to buy properties out-of-state or were lured to vacation homes near far-flung resorts and tourist destinations. But second-home purchases these days seem to be more restrained, as more purchasers opt for vacation spots that are within a relatively short drive of where they live. Source: The Wall Street Journal

Keller Williams Realty, Inc. Ranked in America’s Top 10 Workplaces

AUSTIN, TEXAS (May 16, 2012) - Keller Williams Realty, Inc. announced today it has been recognized as one of America’s Top 10 Workplaces, according to the first annual National Top Workplaces list compiled by Workplace Dynamics. “Our culture is our strongest asset and the reason that so many people want to be with us," Mary Tennant, COO of Keller Williams Realty shares. “Imagine what it would be like to work in a culture every day with people that you feel love, kindness, caring and humor with. Imagine working in an environment where there is a passion for every single person to succeed at the highest level." “If this award proves anything, it’s that we only succeed when our associates do," added Mark Willis, CEO. “We are proud to be in business with the best who are lifting us up each day and proud to be fulfilling our mission of building careers worth having, businesses worth owning and lives worth living." The list of National Top Workplaces is based solely on employee feedback surveyed from 805 companies of more than 1,000 employees, which included over half a million survey responses. According to survey results, Keller Williams’ ranking was based on its overall culture and high levels of organizational health including training, benefits, compensation, and work-life balance. “Put simply, the most successful companies appear to be the ones that employees believe in," said Doug Claffey, CEO at WorkplaceDynamics. For more information and the full list of the Workplace Dynamics Nation’s Top Workplaces, please visithttp://topworkplaces.com/stories/americas-top10-workplaces.php # # # About Keller Williams Realty, Inc.: Keller Williams Realty Inc. is the second-largest real estate franchise operation in the United States, with almost 700 offices and more than 75,000 associates in the United States and Canada. The company has grown exponentially since the opening of the first Keller Williams Realty office in 1983, and continues to cultivate its agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty online at (www.kw.com). For more information about KW Worldwide, visit (www.kwworldwide.com).

Bank of America offers relo assistance to short-sellers

Bundles of cash image via Shutterstock.
Bank of America says it will provide up to $30,000 in relocation assistance to delinquent borrowers who work with the bank to obtain a preapproved short-sale price before submitting purchase offers.

Short sales must be initiated by the end of this year and close by Sept. 26, 2013, to be eligible for the payments, which will range from $2,500 to $30,000 at the completion of a qualifying short sale. Payments will be determined on a case-by-case basis using a calculation that includes the value of the home, amount owed and other considerations, Bank of America said in announcing the program.

The program -- based on a similar incentive offer Bank of America tested last year in Florida -- will be available nationally. But Bank of America anticipates the greatest response will come from borrowers in California, Nevada, Arizona, Florida, and other states hit hardest by the economic downturn and falling property values.

Customers who believe they may be eligible for Bank of America's short-sale relocation assistance program may contact program specialists at (877) 459-2852. Qualifying short sales that have already started but have not closed may be eligible for the program.

Bank of America says its short-sale initiatives have generated 200,000 short sales in the last two years and another 30,000 in the first three months of this year.

Last month, Bank of America announced it was shortening decision times on short-sale offers to 20 days, down from 45 days or longer.

Article Courtesy of Inman News.

Mortgage Rates Hit Fresh Lows: 30-Year at 3.79%

Here we go again. The average fixed rate 30-year mortgage fell to 3.79% this week, yet another record low, according to data from Freddie Mac. That's down from 3.83% the week prior, and marks the third straight week of fresh lows.
The 15-year rate edged just slightly lower to 3.04%, from 3.05%, also a new record low.

The low rates come amid signs of improvement in housing -- declining foreclosures and delinquencies, and increases to housing starts and the NAHB housing index -- and would be a nice touch for those looking to refinance, although many have struggled to take advantage.

An array of weekly and monthly data have been closely watched as economists look for affirmation of a trend -- be it improvement or continued distress -- and as homeowners and prospective buyers wrestle with regional realities, which vary greatly. When it comes to rates, some of the factors hitting home are originating further away.  The economic turmoil in Europe, in particular, is having an effect, according to Freddie Mac vice president Frank Nothaft.

"The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week," said Nothaft, noting that industrial production saw its largest jump since December 2010 and consumer sentiment hit its highest level since January 2008.

The low rates are encouraging demand. Mortgage applications increased 9.2 percent last week from one week earlier, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The refinance portion of that index jumped 13%, with refinancing demand now accounting for 74% of the mortgage application volume, according to the data.

Again, though, much to the frustration of many homeowners, not everyone has been able to take advantage of the low rates, in part because of backlog at large banks.

Thursday's data follow a report that foreclosure filings in the U.S. dropped to a five-year low last month as lenders upped efforts to avoid seizing properties. Bank of America (BAC), for one, said last week that it was rolling out new efforts to help keep homeowners out of foreclosure thanks to the robo-signing settlement. It began mailing 200,000 letters offering certain customers mortgage principal reductions, and eligible borrowers could get as much as $150,000 knocked off the balance of their mortgages.

One improvement in the housing landscape: The delinquency rate for one-to-four-unit residential properties decreased by 18 basis points in the first quarter from the fourth quarter of 2011. At the end of the first quarter, there was a delinquency rate of 7.4% of all loans outstanding.

"Mortgage delinquencies normally fall during the first quarter of the year, but the declines we saw were even greater than the normal seasonal adjustments would predict, so delinquencies are clearly continuing to improve," said Michael Fratantoni, MBA's Vice President of Research and Economics.  "Newer delinquencies, loans one payment past due as of March 31, are down to the lowest level since the middle of 2007, indicating fewer new problems we will need to deal with in the future."

Data on housing starts in April and the NAHB housing index in May, released earlier in the week, both increased more than expected.

Article Courtesy of Yahoo.

Shrinking Inventory and Rising List Prices: Continuing Signs of a Recovering Housing Market

Ted Jones, Senior Vice President and Chief Economist for Stewart Title, spends a lot of time keeping his finger on the pulse of the housing market.  We asked Ted to comment on what he sees happening in the residential market nationally -- across all price points -- and he has some up-beat observations to share.  Here are Ted’s comments:

There are positive signs spanning the spectrum indicating a turning real estate market, despite some weak spots across the country. 

Just a few days ago,  USA Today reported that the number of existing homes for sale had dropped 22 percent from a year ago and now totals just 2.37 million units.  This is down 41 percent from the peak reached in mid-2007.  That said, the National Association of Realtors® reported rising prices in 74 of the 146 markets they track in the first quarter of 2012 versus declines in 72 locales.  Even more significant is the dramatic decline in some of the hardest hit markets:

 

• March inventory in Phoenix declined 64 percent from a year ago according to Arizona State University real estate expert.
• NAR reports very tight inventories in Phoenix, Orange County, California, Naples, Florida, Seattle, suburban Washington, DC and North Dakota (driven by the energy boom being experienced in that state).
• While mortgage delinquency rates remain above average (with average being 2 percent), they dropped from 6.19 percent in Q4 2011 to 5.78 percent in Q1 2012 according to TransUnion  (based on a sample of 10 percent of US mortgage holders)  and are down from a 7 percent peak in Q4 2009 
• All-cash transactions in Q1 2012 made up 31 of all sales—and I doubt these people would be buying and paying cash if they thought property values would decline further
• 22 percent of all buyers were investors
• Condominium prices rose 3.4 percent when compared to Q1 2011
• Q1 2012 existing home sales were up 5.3 percent from the same period in 2011 and are now running at annualized rate of 4.57 million
• Total existing home sales in Q1 2012 were at the highest level since 2007
• Move.com reports that many of the hardest hit markets are now among the top recovering markets   

Article Courtesy of  Luxury Insights.

Bank of America offering up to $30,000 for short sales

NEW YORK (CNNMoney) -- Bank of America is offering some struggling homeowners payments of up to $30,000 if they sell their homes in a short sale and avoid ending up in foreclosure.

Under the plan, Bank of America (BAC, Fortune 500) will offer homeowners so-called relocation payments of between $2,500 and $30,000 if they sell their home in a short sale. In short sale deals, the sale price of the home is less than what the seller owes the bank.

The bank first tested the payments in a pilot program in Florida last fall. Under that initiative, Bank of America paid up to $20,000 to borrowers who sold their homes in short sales.

"This program can help customers make a planned transition from ownership when home retention options have been exhausted or they have made a decision not to keep the home," said Bob Hora, an executive for the bank.