Economy Picks Up Steam; Housing Recovery, Consumer Spending, and Manufacturing Pave the Way

Economic growth continues to gain momentum in the second half of the year, as expected, despite the slow start at the beginning of 2013. Fannie Mae’s Economic & Strategic Research Group’s full-year forecast for both the economy and housing market remains on track, with GDP expected to come in at approximately 2.0 percent in 2013 and to accelerate to 2.6 percent in 2014. Fiscal drag is waning, the housing recovery continues, and manufacturing and business investment are rebounding, helping to boost growth.

     Furthermore, consumer spending and the employment sector appear to be growing sustainably, which may help to offset downside risks from the expected tapering of the Federal Reserve’s securities purchases.

“Our macroeconomic and housing forecast shows very little change from July, and the steady pickup during the past few months validates our expectations for the second half of the year,” says Fannie Mae Chief Economist Doug Duncan. “The biggest risk to this forecast is the expected reduction in the Federal Reserve’s asset purchases, which would likely put additional upward pressure on interest rates and lead to some volatility in capital markets. Although the nature and timing of the tapering are still to be determined, we continue to expect the Fed will scale back its asset purchases and end the program by spring. In addition, we may see some fiscal tightening this fall as the debate over federal spending and the debt ceiling takes place.”

The housing recovery appears to have weathered some of the uncertainty, although additional growth is expected to be modest rather than robust while the market awaits an easing of credit conditions in the presence of rising interest rates. The rise in mortgage rates has led to a drop-off in refinance activity but does not appear to have had much impact on home purchase activity to this point. Home prices are expected to continue to climb, although the pace should slow significantly from the dramatic levels seen during the past 12 months.

2013 RISMedia

The best time to buy a home is now, before rates get any higher. Contact me today 443-869-1364

Til next time,

JC

So Your Ready To Move.............

Get Your Move On

Figure out how much help you need with your move
Depending on how much you have and how far you’re going, you may want to consider hiring a mover. Your three basic options are:

·         doing all the packing and moving yourself with the help of some willing friends - pizza, anyone?

·         you handle packing up the boxes, but the movers load, move and unload the truck for you - this is a great option if you’re moving to a completely new area and need a little muscle for your belongings!

·         the moving company handles the whole move from the packing of boxes down to unloading your stuff at your new home - this is obviously more expensive, but great if you’re physically unable to load and unload, if you’re going far, if you have a lot of fragile items or if you’re in a big rush

Read more about these different moving options by checking out our post on preparing to move out of your home and compare moving companies to figure out whose prices and services meet your needs.
Get your utilities up and running
Do a little research on your service providers, so you can get your utilities set up right before you move. Compare different service providers to make sure you get the best deal for your new neighborhood.
Set up mail forwarding
It’s totally easy to set up mail forwarding, so you can have all your mail rerouted to your new home - just request a change of address with the United States Post Office.

Make It Your Own

One of the most exciting things about becoming a homeowner is finally having a place that’s yours and that you can personalize any way you want! That’s right, no more ugly wood paneling or blank white walls (unless that’s your thing).
Take it a step (and a room!) at a time. Whether you’re an expert DIYer, or just want to do a few simple things to your new home to show off your personal style, there are loads of ideas out there to get you started! Find a project you like that fits in your budget, and enjoy creating a home that’s all your own.

Stay in the Know

Keep track of tax deductions.
Make sure you’re up-to-speed about tax deductions you’re entitled to as a homeowner, such as your mortgage interest payments. Get educated on your property taxes and what tax breaks you qualify for.
Keep an eye on your neighborhood
Now that you have a real vested interest in your local market, stay on top of nearby property values by using ZipRealty's Watch This Home tool. By “watching” your home, you’ll get weekly updates about what’s happening with the real estate around you.
We hope these tips make your move a stress-free and smooth one – enjoy settling into your new home!


See more at: http://www.ziprealty.com/blog/smooth-move-how-make-your-move-new-home-easy-possible#sthash.WRbreGDm.dpuf

Til next time,

JC

EXTRA, EXTRA, Read All About It

Check out this press released for JDC Investments




http://www.pr.com/press-release/493453


Til next time,

JC

Report Shows Housing Recovering Accelerating

This is what everyone has been waiting for; buyers should act now.

I have been telling people (especially buyers) that if there is anytime to buy a home; it is now. Properties are the lowest as I have ever seen them and this is not going to last for too much longer. Seller have been suffering because they are not receiving market value for their home, which means that this is a buyers market. On the contrary, home prices are starting to rise which is great news for sellers.

Check out this article:

http://rismedia.com/2013-05-15/april-realtor-com-report-shows-housing-recovery-accelerating/



Til next time,
JC

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

Home Prices Rise....

Home prices: Biggest rise since housing bubble

By Chris Isidore @CNNMoney March 26, 2013: 11:26 AM ET

•  
• EmailPrint

Home prices posted their biggest gain since 2006 in January.

NEW YORK (CNNMoney)

Home prices continued their recovery, rising 8.1% in January, although a separate report showed a slight slowdown in new-home sales.

The S&P Case-Shiller index, which tracks the 20 largest markets in the nation, showed the biggest year-over-year gain in prices since June 2006.

"This marks the highest increase since the housing bubble burst," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.

Related: 5 best markets to buy a home

In a separate government report Tuesday, new homes sold at a 411,000 annual rate in February, down nearly 5% from the January sales pace but up 12% from year-earlier levels. The typical price of a new home sold in the month was $246,800, up about 3% from both the January and a year earlier.

Joseph LaVorgna, chief U.S. economist for Deutsche Bank, said that bad weather in February could be partly responsible for the slowdown in sales. But he said market fundamentals suggest that the market for new-home sales should remain strong.

"Despite the pullback in sales in February, the uptrend in housing remains clearly intact," he said. He is forecasting even stronger sales in the second half of this year.

The Case-Shiller report shows the recovery in home prices is widespread. All 20 markets posted a year-over-year gain, and the pace of increase picked up in every market except Detroit.

Some of the markets hurt the most by the bursting of the housing bubble have enjoyed the biggest gains, led by a 23% rise in Phoenix. Prices were also up more than 10% in San Francisco, Las Vegas, Detroit, Atlanta, Minneapolis, Los Angeles and Miami, all markets that had been hit hard by foreclosures.

Do You Know How to Choose A Realtor????

   I didn't either when I was searching for my home. Luckily, I had a great Realtor that knew what I wanted and helped me along the way. Now being a realtor myself, I feel it is necessary to let people know how to look for a realtor so they can have a smooth process when they search for a home. Here are the steps that helps you know what to look for:

1. Choose an Agent - This will be the person that will be along with you, helping you the entire way, so it is important to hire an agent that has a clear understanding of your needs. A great agent will :
2. 1.Keep you updated of the current market conditions, 
3. 2. Gather your thoughts and ideas of what you want in a home,
4. 3. Negotiate with the seller on your behalf, 
5. 4. Double check paperwork,
6. 5.  Solve any problems that may arise.

Don't be afraid to ask for help when you need it, whether it is getting help to find a lender, knowing the details of the process, things you should watch out for, etc. Buying a home is a huge step and also the most rewarding experience. 

Til next time,

JC

If You Can't Buy Because of Your Credit....

 

..................then think about leasing with an option to buy. I run into so many people that would love to buy (especially since the prices of homes are as low as they have even been) but, they are unable to buy because their credit is not where it needs to be. You are not alone, there are people that suffer from bad credit, inability to purchase because of recent short sales, foreclosures, etc. Did you know that if you are foreclosed on, then you cannot purchase a home for 5 years (2 years for short sales)? So, what do you do.......well me and my team have come up with a solution: Lease with Option to Buy. What this will do is get you in a home you desire; where you treat it like your own, you pay monthly payments, and then in a timeline that works for both parties (1-3 years), you agree to purchase the property. During this time, it will allow you to work on your credit (we can refer a credit specialist to you), lock in a price for the home, and put you in contact with lender (or you can choose your own lender) that will process the loan after that time period you officially make the home yours. Sounds great doesn't it????



Contact me or my business partners today and get on our home buyers list today:


Til next time,

Why Some People Cannot Get Loans

   I came across this article today and it broke down reasons why people cannot get loans. It talked about banks wanting security for their loans, higher credit standards, the decline in capital, etc. Even with this information. I still think you should not give up on trying to buy home. If some of my clients thought that way then, they would not be in their home today.

   Now I don't know much about loans but, I do know a company who does......Gray Financial. I personally would recommend them because they go above and beyond for their clients. They helped me refinance my home and I had such a great experience with them. They say bad news travels faster then good news however, lets change that mindset to help others. Here is the contact info:

William Gray
410-730-4004 (office)
443-324-6001 (cell)

Call today......you never know, you could be in your new home within 90 days.

Til next time,

JC

P.S. Here is the link to the article I read:
http://www.homefinder.com/content/Buying-Guide:Five_Reasons_Why_Good_People_Cannot_Get_Good_Loans

Make Your Home Stand Out

  Recently, people have been contacting me about how to sell their home fast. Now, I tell my clients that there are different ways that this can be done.

1. Selling your home and getting the full listing price
2. Selling your home without any labor by taking a loss or short sale (if you are underwater on your mortgage).
3. Selling your home fast at a discounted price

     With these ways there are different things that comes along with it. To get the full listing price of your home you want to make your home stand out by having things in the property that are eye catching. For example, I recently took a client to see a home that had staged furniture in it (it gives the buyer an idea of what the home with look like). It also had new appliances, granite counters, and a 2nd full bath. Now keep in mind, this property was small (about 1,100 feet) but, she did not care because the decorations and features were so overwhelming. 

You also can sell your home by not doing anything but, understand you may not get your full asking price. Expect to get less then the value of the property is. If you are trying to sell because you are underwater on your mortgage (behind payments) you can short sale the property and get the bank to take a loss (an effect is that you may not be able to buy another home for 3 years).

Lastly, you can sell your home fast at a discounted price by getting cash for your home. The different situations where people find this most helpful is when they need to liquidate fast because of divorce, behind on bills, bad landlord experience, inherited property, or just want to get rid of the property.

   If any of these apply to you, I can help. Here is a great article to refer to as well:
http://www.trulia.com/blog/davekres/2010/09/13_unique_ways_to_sell_a_home


Til next time,
JC

Call me today 443-869-1364

Advantages to a Homeowners Association

When belonging to a homeowners' association, some will say it creates exclusivity in a community, which can translate into higher home values. Everyone in that community as to abide by certain (which are not over the top rules) but, it keep everyone in line about what is expected when you are living in that neighborhood. I see it like this: If you not able to abide by rules then, there is a chance I am avoiding a bad neighbor.

Here is an article to check out about home owner associations:


Read more: The Advantages of Home Association Fees | eHow.com http://www.ehow.com/about_5562764_advantages-home-association-fees.html#ixzz2LU6CWRmc


Til next time,
JC

Foreclosures Are Still Out There

   I have talked to some people that thought the foreclosure market is no longer a factor....not true. There are still a lot of properties that are being foreclosed on, especially in Prince Georges County, MD.

Here is an article you might want to review:

http://www.washingtonpost.com/blogs/where-we-live/post/washington-area-home-prices-a-tale-of-two-states/2012/03/06/gIQA8NqLvR_blog.html


Til next time,

JC

Can You Buy a Home?

  I have people that ask me that because they want to get a home but, they are afraid to see if they qualify because they know their credit score is not where it needs to be. Come on, let's be honest; the majority of the population does not have A1 credit so get that mindset out of your head that just because your credit score is not above 720 that you cannot get a home. The first step to face that fear is to simply ask for help and see if you can qualify. Contact me today to see if you can, ill do my best to find a way for you.



Til next time,
Jeannine Cooper
New Realty
443-869-1364


P.S. Here is a great article as well: http://www.kellerwilliamsasheville.com/pages/buyingprocess.shtml

Short Sale means Motivated

   After being a realtor for about 3 months now, I have realized that when someone is doing a short sale, that means that they are motivated. I mean why else would they short sale. Short sales can still have a negative affect on your credit so, if your willing to take that hit that must mean one thing....."Please buy my home"

Here is a good article to read:
http://homebuying.about.com/od/buyingahome/f/022908_MotivSlr.htm



Til next time,

JC

Buy, Fix and Live

  One way to purchase a home that is a great investment is to purchase a home to fix up and live in. I found a great article that tells to how to make that possible.



http://www.ehow.com/how_5392202_fix-up-live-old-house.html

Til next time,

JC

A Great Team

One thing I always tell my buyer/sellers is that you need a great team behind you to help you get to the closing table. These will be the key people working for you to get what you need, when you need to close on your home. Here are the key people

1. Realtor
2. Lender
3. Inspector
4. Appraiser
5. Contractor (if getting a 203k loan to rehab/fixing up your home to sell)
6. Buyer/Seller

Realtor- Your main person of contact that will bring the deal together for you by keeping in contact with your team to make sure everything is on schedule

Lender- Will lend you the money to finance your transaction

Inspector- Will inspect the property to make sure there are not any problems or hazards with the property

Appraiser- Will let you and the bank know the value of your home.

Contractor- Will help you fix up the property to sell/help you rehab the property

Buyer/Seller- Will be the person purchasing your home/person selling the home you want to buy.

Start on your team today.

Til next time,

JC

Economic Update

Here is the economic update provided my Citi Mortgage

Economic Update

Washington, D.C. (December 5, 2012) - Mortgage applications increased 4.5% from the previous week, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending November 30, 2012. These results included an adjustment for the Thanksgiving holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 4.5% on a seasonally adjusted basis and 49% on an unadjusted basis from the previous week. The Refinance Index increased 6% from the previous week. The seasonally adjusted Purchase Index increased 0.1% and the unadjusted Purchase Index increased 36% from the previous week. The unadjusted Purchase Index was 0.1% lower the same week one year ago.

The refinance share of mortgage activity increased to 83% of total applications from 81% the previous week. The HARP share of refinance applications increased to 27% from 26% the prior week. The adjustable-rate mortgage (ARM) share of activity decreased to 3% of total applications.

December 5, 2012 - Freddie Mac's weekly survey of average mortgage rates saw 30 year fixed rate mortgage loans at 3.34% and .7 discount points. Average 15 year rates were 2.67% and .6 discount points.

December 7, 2012 - The Bureau of Labor Statistics (BLS) released the Employment Situation report for November noting that Hurricane Sandy did not affect the national employment and unemployment figures in today's release. The establishment survey indicated that payroll employment increased by 146,000 with private sector payrolls increasing by 147,000 and a loss of 1,000 in the government sector. Estimates for both September and October were revised downward by a total of 49,000. The household survey indicated that the unemployment rate decreased to 7.7% from 7.9% in October.

Source: Mortgage Banker's Association of America, Freddie Mac, Bureau of Labor Statistics, National Association of Realtors

It's a perfect time to purchase a home. Contact me today to get started

 

Til next time,

 

JC