Housing Recovery ‘Pushes Ahead’ As Prices Rise

Housing Recovery ‘Pushes Ahead’ As Prices Rise. Photo by vichie81 & FreeDigitalPhotos.net

Housing prices are showing resiliency, posting their largest yearly gain in nearly two and a half years, according to Clear Capital’s Home Data Index Market Report, which covers housing data through December 2012.

Year-over-year, home prices gained 4.9 percent nationwide, according to the report. For 2013, home prices are forecasted to increase by 2.1 percent.

“Overall the housing recovery still shows evidence of pushing ahead,” says Alex Villacorta, director of research and analytics at Clear Capital. “Quarterly home prices mostly mirrored those of last month and suggest that some buyers took pause in the initial winter months. Yet, looking back over 2012, national yearly price gains of 4.9 percent are still strong.”

What will 2013 bring?

“2013 should be interesting for the housing market, where national gains should continue to see upward growth but likely at a more modest rate,” Villacorta says. “Keeping in mind our current gains are off market lows at the start of the year, 2013 gains will be measured against a higher price floor after a full year of recovery.”

Still, Villacorta says there are plenty of housing deals across the country to meet home buyer and investor demand.

The West has been a “front-runner of the recovery,” according to Clear Capital. The Western region has posted some of the largest increases in home prices, such as a 2.1 percent boost in December. Year-over-year, the West posted 11.8 percent growth.

“The ramp up in gains reflects a market that was hard-hit, and, like national prices, saw its lowest price level at the start of 2012,” according to Clear Capital. “A forecast of just 2.8 percent for 2013 points to a moderating recovery for the West, as buyers adjust to a higher-priced market.”

Meanwhile, the South posted a 4 percent home price gain from December 2011 to December 2012; the Midwest posted a 3 percent year-over-year increase; and the Northeast saw prices rise 1.5 percent year-over-year.

Source: “Housing Recovery Set to Continue,” RISMedia (Jan. 9. 2013)

4 Strategies for Selling in 2013

4 Strategies for Selling in 2013. Photo by Sujin Jetkasettakorn & FreeDigitalPhotos.net

AOL Real Estate recently asked industry insiders to offer up their best way to get a home sold in the new year. Here are some of the tips they offered up:

• Don’t hide, flaunt: If the home has, say, an oddly large-sized garage compared to the house, don’t try to cover it up. Instead, highlight it throughout your marketing. You might have better luck at finding a buyer more quickly who has been looking for such a trait in a home.
• Don’t get too fancy with your videos: Shoot a video of the house but don’t over-produce it with artistic pans and special effects. A more simplistic approach to videos of the listing that capture footage as you walk through it may be a better approach. “People won’t feel manipulated,” says J. Philip Faranda, owner of J. Philip Real Estate in Briarcliff Manor, N.Y. “They will gravitate toward something where it’s really transparent.”
• Consider free home maintenance offers: Free home maintenance offers for a specified period can be a way to lure some buyers. Sellers may offer anything from maid service to even snowfall removal. Home warranties can also be a lure to help cast aside any fears a buyer might have. For example, a warranty that guarantees such features like the home’s air conditioning system, heater, and roof can add a sense of comfort for a buyer to move forward in a purchase.
• Sponsor a raffle: Buyers can be lured to home tours if they think they might win a prize, such as an iPad or gift card. “This will increase foot traffic to the house and may help you find that perfect buyer,” says Ariana Loucas, a real estate professional in Columbia, Md. “So maybe the buyer doesn’t get the house bid, but can win an all-expenses paid at a local restaurant.”

Source: “13 Ways to Sell Your Home in 2013,” AOL Real Estate (January 2013)

Zillow vs Appraiser 2013

Article by: January 7, 2013 by MCoyle & Phillyappraisalblog.com

Zillow vs Appraiser 2013

“Zillow told me that my home is worth…”

Appraisers across the USA hear those words at least once a week from well-meaning homeowners.  What many homeowners don’t realize is that Zillow, while a very useful tool, is not always the best indicator of the actual value of their home.  A Zillow Zestimate is not an appraisal.  In fact, if homeowners use Zillow to help them price their home for sale, they could be leaving thousands of dollars on the table, as we will show you.

Below is a chart of 18 randomly selected appraisals that The Coyle Group completed in the past 3 months.  The houses are located throughout Philadelphia, Montgomery, Bucks, Delaware and Chester County.  The chart is a comparison of our appraised value and the Zestimates produced by Zillow.  Keep in mind that our appraisals have the benefit of a full property inspection by a human being and nuanced market knowledge.   Zillow’s Zestimates rely on public records, complex algorithms and no physical inspection of the property.  Here are the results:

As you can see there are some pretty dramatic deviations between Zestimates and the appraisals.  Based on our appraised values Zillow under valued 13 of the properties.  In some instances Zillow was almost right on, take for instance the condo in The Dorchester.  They were only off by 1.62%…that’s pretty good if you ask me.  For the condo at The Murano, they were off by more than 25%…waaaay off!  On average, Zillow under-valued the properties by 12.39%.

In the case of the South Philly row, the Zestimate was over by more than 30%.  However, I can’t fault Zillow on this one.  The property was really dated and needed a great deal of work.  But this does illustrate how having a full interior inspection of a property can lead to more accurate values.  Also, the Mount Airy twin was over-valued by 12%…but this doesn’t surprise me, everyone in Mount Airy thinks their home is worth more than it is.  Just kidding.

Now imagine that you’re a homeowner getting ready to sell.  You hop on your computer, plug-in your address and Zillow says your home is worth $300,000.  Based on our findings, if Zillow under-values properties 12.39% on average, you (the homeowner) could potentially be leaving $37,170 on the table.  That’s serious money!

This illustration underscores the importance of consulting with a knowledgeable real estate agent or Certified Real Estate Appraiser.  Getting a Pre-Listing Appraisal prior to putting your home up for sale and knowing the true market value of your home can save you time, money and effort when it comes to selling.

As for Zillow, keep in mind that it is a tool…a starting point.  It’s great for neighborhood data, graphs, general sales information or for seeing what your new neighbors paid for their house.  It’s probably not the best place if you’re looking for assistance with making definitive decision or properly pricing your home for sale.