Top Expensive/Most Affordable Housing Market

Below is a list of the Top 10 Most Affordable Housing Markets with the current ratio of median home sales prices to median household income shown for each metropolitan area. 

1. Dallas-Fort Worth        5.27x
2. Houston                        5.43x
3. Minneapolis                 5.50x
4. Orlando                         5.89x
5. Las Vegas                    5.98x
6. Raleigh, N.C.               6.03x
7. Austin                            6.13x
8. Denver                          6.31x
9. Nashville                      6.47x
10. Phoenix                        6.59x

ZipRealty’s list of the most affordable housing markets was created using the most accurate and complete data in the real estate industry, which is detailed in the company’s Data Quality Report,http://bit.ly/107LMMp, which was released on March 6, 2013. ZipRealty discovered that prominent real estate websites consistently fail to display a significant number of MLS-listed homes for sale, while also presenting a large number of sold homes as if they were currently for sale. The study results show that up to 30% of MLS listed homes for sale are missing from other real estate websites, and over 15% of the listings on these websites are stale, expired or inactive. In contrast, ZipRealty never includes sold homes in search results, and has an accuracy rate of greater than 99% on MLS listed homes for sale.

Based on ZipRealty data, the Top 10 Most Expensive Housing Markets are:

1. Washington, D.C.                        16.78x
2. Brooklyn, N.Y.                                16.58x
3. San Francisco Bay Area             13.81x
4. San Diego                                     13.60x
5. Los Angeles                                 13.52x
6. Miami                                             12.11x
7. Orange County (California)       10.63x
8. Boston                                           9.47x
9. Westchester (New York State)  9.29x
10. Baltimore                                      8.56x

(Zip Realty)

Til next time,

JC

Navigating in a Competitive Housing Market

Navigating the Home Buying Process in a Competitive Market

Whether you are buying a home for the first time or the tenth time, you probably have a long list of “must haves” and “wants” for your dream home. With recent real estate forecasts announcing a housing market recovery in 2013, many pockets and niches throughout the nation are already experiencing a competitive market with low inventory of homes and bidding wars. Finding a home that has everything on your checklist can be a challenge, particularly if you are searching in a competitive market. There are, however, some tips that can help you navigate the home buying process in the midst of a competitive market and help ensure that you find your dream home at a price that meets your budget.

1.     Expand your database when there is low inventory of homes for sale. When the home buying market is competitive, a buyer must use all of the tools available to find just the right home. While it is not a good idea to rely solely on a single source to find available listing, it makes even less sense to do this when the market is competitive. An experienced buyer’s agent (someone who specializes in representing home buyers), for instance, will make use a MLS service, newspaper advertisements, open houses, and word of mouth to find you your dream home. Especially in a competitive real estate market, you want to secure the services of an experienced real estate agent who is well connected with the area you are interested in.

2.     Be prepared to make tough decisions. Before you even begin your search, review your lists of “must haves” and “wants” and prioritize them. You want to divide up your "negotiables" from your "non-negotiables." When the market is competitive, you may need to be more flexible because you may be competing with other buyers who are also interested in purchasing the property. If, for example, your desired neighborhood is a deal breaker then maybe, you might have to let go of the idea of having a pool or a three car garage.  Having a clear idea of what you can and can't live without will help you and your real estate agent narrow down your focus.

3.     Be prepared to act. In a slow market a buyer can take more time during the home buying process to decide whether or not a home is “the one”. When the market is competitive, a buyer needs to be ready to act when the right home comes along because it will likely not stay on the market for long.  You probably want to start your search expecting to pay the maximum amount that you can afford when you are buying a seller's market, and it will be to your benefit to make a large earnest money deposit with your offer - the larger the amount, the more appealing your offer will be to the home seller.

4.     Sharpen your negotiating skills. Buying a home in a tight market does not necessarily mean that you have to pay a price that is more than what the home is worth nor does it mean that you will have to settle for less than what you want. It does, however, mean that you need to sharpen your negotiating skills and be creative when you make an offer. For example, try to figure out what is important to the seller so that you can cater your offer to them. For instance, if the seller needs to be out of the home quickly can you offer a quick closing? Maybe the opposite is true and the seller needs extra time before they vacate the home in which case you could offer to extend the date of possession.

5.     Consider a fixer-upper. If you cannot find your dream home because the market is too competitive, consider buying a home that you can turn into your dream home. Even in a seller’s market, homes that need considerable work still tend to move slowly because many buyers cannot see the potential or are not willing to renovate. If you are open to a fixer-upper, you can increase your range of choices as well as the likelihood of finding the perfect home.

Although the home buying process may be a bit more difficult when the market is competitive, if you start by following these simple tips and work closely with your real estate agent you will soon be able to find the home of your dreams in no time (Zip Realty).

Til next time,

JC

Why Some People Think They Can't Afford To Save

    ......because they are not looking at the bigger picture. Trust me, you are not alone. The average consumer saves about $392 a year (which breaks down to about $32 a month). Now, this doesn't sound like a lot; which its not but, is that really enough to save for important things like an emergency fund, vacation money, a down payment for a house, etc? In order to accomplish the things you need then you have to save more. For example, the average consumer should save about 3-6 months of living income in case of an emergency. Now that maybe anywhere from $4,000-$6,000 (depending on bills). We have to start somewhere so let's start with the basics. If you sacrifice your daily cup of starbucks, then that will add up.

Ex:

Cost of a grande caramel macchaito (my favorite)  $4.57

$4.57 * 5 days a week = $22.85 a week

$22.85 * 4 weeks = $91.40

$91.04 * 12 months = $1096.80 a year.

That amount well exceeds what the average American saves..........big difference right???

Til next time,

JC

Monthly Financial Meeting

  Have you ever sat down and had a monthly financial meeting within your household?......neither have I but, that is a very important meeting to have. Now I did have family meetings however, they were about actions in the household, rules to follow, changes within the household, and gathering to meet the new "dating partner" of my siblings and I (these were always the most intense lol). One thing we never had though, is meetings about the financial needs of the household. After reading an article, I am finding that it is very necessary in order to create a budget and savings for the needs of the family such as an emergency fund, vacation money, and a mad money account (in case a household loses an income). We tend to take these things for granted in this day and age because we are so "busy" but, we should all have that talk within our household so we know what the needs of the household is, what the future goals of the household are, and make sure that everyone is on the same page.

Check out this article:
http://www.thesimpledollar.com/2008/05/15/holding-a-monthly-family-financial-meeting-and-how-it-can-benefit-your-marriage-and-educate-your-children/

Til next time,

JC