I have been getting a lot of questions from my clients about how the market is doing. I keep telling them that the Casper Market is doing very well and it appears as though most of the country is starting to turn around as well. The foreclosure market is still affecting sales throughout the country, but this is good news for buyers and investors. There is money to be made in a down market. If you are one of the lucky ones and are in a cash position, you should be looking into the real estate market. See the article below:

by Phoebe Chongchua
An application for REALTORS®

From April to June, foreclosures constituted about one-third of all home sales during the spring quarter and were “six times the percentage of foreclosures in a healthy housing market”, according to The Washington Post.

RealtyTrac Inc. released figures on foreclosures, distressed, and bank-owned properties in August. These included homes (31 percent of the spring market) that were bought after a notice of default had been issued or were lender repossessed. The company reported that bank-owned homes which make up about 19 percent of all sales and are sold after being repossessed, sold for 40 percent less than the average price of other homes. That figure is slightly up from previous quarters including the same time period one year ago.

The figure drops for sales of homes in the foreclosure or short sale process. They sold for 21 percent less than the average home, according to RealtyTrac Inc. That figure is also up slightly from 17 percent in the first quarter.

The firm reports on its website that the average sales price of a foreclosure is $173,450 (at the time of writing). That price is just slightly down (1 percent) from the first quarter.

Where are most of the foreclosures these days? Head west to Nevada, Arizona, and California. These states’ foreclosures accounted for 65 percent, 57 percent, and 51 percent, respectively, of all home sales. For Arizona, the percentage increased 16 percent from a year ago.

Other states such as Colorado, Florida, Oregon, Michigan, and Illinois had foreclosure sales that made up about one-third or more of their home sales in this year’s first quarter.”

“With average prices on distressed real estate trending down and average discounts trending up, this report is clearly good news for well-positioned buyers and investors looking for bargain real estate that will build them wealth in the long term and often cash flow as rental real estate in the short term,” said James Saccacio chief executive officer of RealtyTrac Inc.

The firm also reports that 102,407 homes in default or scheduled for auction–pre-foreclosures–increased 19 percent from the previous quarter. Many of these homes are sold via short sale, and despite this jump, the figure is still down 12 percent from the second quarter of last year.

The states with the most significant quarterly increase in pre-foreclosure home sales included: Nevada (43 percent increase), California (38 percent increase), and Texas (34 percent increase).

Nationwide, the pre-foreclosures had an average sale price of $192,129, which is 21 percent lower than the average sales price of non-foreclosure homes.

While foreclosures and distressed properties are selling for, in some cases, up to 40 percent less than the average price of non-foreclosures, it’s important to understand exactly what you’re getting. Some people think of this as a discount. But often that implies that you’ll be getting the same or similar type of property as others on the market except for a lot less. However with foreclosures and distressed properties, what you’re actually buying may also be significantly lower in price for a reason.

Many of these homes are sold “as is” and may need substantial work to get the home in livable condition. Of course, that’s not always the case; there are foreclosures that might be in pretty good condition–just do your homework before you buy.

Learn how much you’ll need to put into the property to get it the way you want it or you may find that, even though you seem to be getting a bargain, you may have to put out more money than you originally thought. If you know from the start how much is needed then you can plan for it and come out ahead by purchasing a foreclosure/distressed property at a reduced market rate.

Published: September 2, 2011

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Phoebe Chongchua is an award-winning journalist, an author, customer service trainer/speaker, and founder of Setting the Service Standard, a customer service training and consulting program offered by Live Fit Enterprises (LFE) based in San Diego, California. She is the publisher of Live Fit Magazine, an online publication that features information on real estate/finance, physical fitness, travel, and philanthropy. Her company, LFE, specializes in media services including marketing, PR, writing, commercials, corporate videos, customer service training, and keynotes & seminars. Visit her magazine website: www.LiveFitMagazine.com.

Phoebe’s articles, feature stories, and columns appear in various publications including The Coast News, Del Mar Village Voice, Rancho Santa Fe Review, and Today’s Local News in San Diego, as well as numerous Internet sites. She holds a California real estate license. Phoebe worked for KGTV/10News in San Diego as a Newscaster, Reporter and Community Affairs Specialist for more than a decade. Phoebe’s writing is also featured in Donald Trump’s book: The Best Real Estate Advice I Ever Received and The Complete Idiot’s Guide to Buying Foreclosures. She is the author of If the Trash Stinks, TAKE IT OUT! 14 Worriless Principles for Your Success.

Contact Phoebe at (858) 259-3646 or phoebe@livefitmagazine.com. Visit PhoebeChongchua.com for more information.

Preparing your home for sale

Home buying tips: How to buy a house

I have been hearing this for the past 11 years at open houses.  Potential buyers, typically empty nester’s begin talking about the home they would like to buy.  For some reason I have not been able to convince any builders in my area to believe that this is what many buyers want. A single level two or three bedroom home with two baths and a two car garage for under $200,000.  The problem we have in my market is that the buyers want the home built in the most desirable areas that are already developed and there are no vacant areas left.  Finally there are other trends going on in the country that will be convincing the builders that the new trend is small more efficient homes are the way to go.  The baby boomers and those that have felt the effects of our financial downturn(everyone) will be wanting to buy homes that are less expensive to live in and less expensive to purchase.    Take a look at this article I read today about this very subject. 

Studies over the past few years have shown a solid trend regarding home sizes. Buyers today want smaller homes with smaller price tags. During the boom era in the mid-2000′s, homeownership was about McMansions and spacious sprawls. The recent recession and continued ailing recovery have made many families rethink their budgets and lifestyles. A 9.1 percent unemployment rate hasn’t “helped.”

So, this question is posed. How much space does your family really need? This isn’t a simple cut and dry question. Every family has different needs and dynamics.

Let’s put things into perspective, though. Having a large, show-stopper home doesn’t equate with family happiness. Many families in centuries past lived happily in one room cabins and small-scale homes.

There are social benefits to sharing tighter quarters. Some families feel that smaller homes forces more together time, which means more time for bonding and strengthening relationships.

Smaller homes mean reduced costs across the board. Let’s examine these for a moment. Property taxes are based on the value of your land and home. While more prestigious neighborhoods and homes within city limits typically pay higher taxes, remember that a smaller home in that same prestigious neighborhood will pay a smaller dollar amount in taxes each year. Maintenance costs are also lower. It costs much less to replace a roof on a 1,000 square foot house than it does on a 6,000 square foot one!

The same goes for home insurance and, let’s not forget, the actual purchase price of the home. Reduced size means reduced costs.

Perhaps the most important item is reduced energy costs. Smaller homes take less energy (and money) to heat and cool. Plus, there are fewer rooms and that means fewer lights to be left on!

Today’s standard home, according to recent statistics from the Census Bureau’s Survey of Construction, is 2,150 square feet. This is down considerably from the boom era seen just 5 or 6 short years ago.

These standard houses have 2.5 baths and 3 bedrooms. Can your children share a bedroom? You bet. It can teach responsibility, sharing, and how to get along with others. These are all great lessons to learn as a child.

These standard houses also feature a garage, central air, a fireplace, separate dining room, and three miscellaneous rooms. This doesn’t sound like a one room shack! It’s simply an adjustment from the McMansions that boasted media rooms, exercise rooms, 5+ bedrooms, and a bathroom for every member of the family.

Just 60 years ago, when many people’s grandparents or parents were first entering the housing market, the average home was just 1,000 square feet. Quaint and charming, these houses made warm and loving homes.

If you’re thinking of entering the housing market and are feeling trapped by shrinking budgets, just remember that smaller houses can be just as charming, functional, and full of love!

Published: October 20, 2011

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Carla Hill, M.A., works on the Realty Times staff as Managing Editor for our online publication. She also is Producer for the real estate news channel, seen daily on RealtyTimes.com and on video newsletters nationwide. She currently works out of the Realty Times corporate office and studio in Dallas, TX. Any questions can be sent to Carla at carladavis@realtytimes.com.

Great Article about the stabilizing of the national real estate market – Maybe things are finally going to turn around on a National level.  Here in Wyoming we continue to sell real estate and have seen a stable climate for at least a year now.  As the population continues to grow here with people seeking work, our housing  market continues to  boom.  The rental market is also seeing 1% vacancy rates.  In the past two years we have had 5 new apartment communities built and they are either full or on waiting lists as the units are completed.

Zillow: Home values down year-over-year in August

BY INMAN NEWS, TUESDAY, OCTOBER 11, 2011.

Inman News™

Home values were down on a yearly basis in August, but showed relative stability in the near term, according to indices that track home values nationwide.

Home values fell 4.5 percent year over year in August, to $172,600, and remained essentially flat compared to July, according to the Zillow Home Value Index, released today. CoreLogic’s Home Price Index showed a similar drop year over year, down 4.4 percent, with month-to-month prices also remaining virtually flat.

Overall, prices have dropped 30.5 percent since an April 2006 peak, according to CoreLogic. When distressed sales (bank-owned homes and short sales) are excluded, the drop from peak stood at 21 percent in August.

Zillow’s index report showed a somewhat similar drop from a June 2006 peak: 28.3 percent. That index tracks 157 metropolitan areas nationwide. Of the 25 largest metros tracked, all saw their index values remain virtually the same on a monthly basis.

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On a yearly basis, Sacramento, Calif., saw the biggest drop (-11.3 percent), followed by Minneapolis-St. Paul, Minn. (-10.7 percent) and Atlanta (-10 percent).

Only Pittsburgh experienced year-over-year value appreciation: 2.8 percent. That metro continues to be the only one among the top 25 to have seen its index value remain essentially flat from peak, falling only 0.8 percent.

Miami-Fort Lauderdale, Fla., and Orlando, Fla., have seen the biggest drops from peak, each down 54.5 percent.

Zillow Home Value Index

Largest 25 metros	Zillow Home Value Index			Foreclosures
	Aug-11	Y-o-Y Chg.	Chg. from peak	Homes foreclosed (for every 10k homes)	Foreclosure resales
U.S.	$172,600	-4.5%	-28.3%	9.2	19.5%
New York	$350,700	-2.90%	-23.30%	0.4	2.5%
Los Angeles	$389,900	-6.10%	-35.60%	12.9	25.4%
Chicago	$172,800	-9.10%	-36.30%	–	–
Dallas	$128,000	-2.80%	-11.40%	8.8	18.6%
Philadelphia	$194,300	-4.20%	-17.70%	3.2	7.2%
Miami-Fort Lauderdale, Fla.	$139,900	-3.30%	-54.50%	–	–
Washington, D.C.	$315,400	-1.60%	-28.10%	5.7	14.1%
Atlanta	$121,700	-10%	-33.30%	–	–
Detroit	$75,000	-6.50%	-52.80%	–	–
Boston	$316,200	-3%	-20.60%	–	–
San Francisco	$474,700	-7.10%	-32.80%	13	25.5%
Phoenix	$123,100	-8%	-56.40%	32.3	44.2%
Riverside, Calif.	$184,300	-4.40%	-54.20%	25.9	46.1%
Seattle	$259,800	-6.30%	-31.90%	13.6	22.2%
Minneapolis-St. Paul, Minn.	$159,600	-10.70%	-35.40%	11.9	19.6%
San Diego	$347,300	-5.80%	-35.30%	12.6	27.2%
St. Louis	$130,700	-7.30%	-16.90%	–	–
Tampa, Fla.	$106,400	-9.00%	-51%	–	–
Baltimore	$224,000	-3.90%	-25.60%	3.2	12%
Denver	$198,000	-4.20%	-14.70%	11.4	23.9%
Pittsburgh	$110,500	2.80%	-0.80%	3.8	8.9%
Portland, Ore.	$211,400	-4.60%	-27.90%	7.9	16.5%
Cleveland	$112,300	-4.90%	-22.10%	7	19.7%
Sacramento, Calif.	$202,400	-11.30%	-51.30%	22.7	40.8%
Orlando, Fla.	$117,400	-5.10%	-54.50%	–	–

Source: Zillow.

The rate at which homes were foreclosed in August was 9.2 out of every 10,000 homes, a decline from 10.9 of every 10,000 homes in October 2010, before investigations into documentation irregularities lengthened foreclosure timelines. Foreclosure resales stood at 19.5 percent of overall sales.

“Due to the robo-signing controversy, the pace of foreclosure liquidations has been slower than it would be otherwise, which is impacting home-value trends positively. Eventually the pace will pick up again, putting more bank-owned homes into local markets and putting additional downward pressure on prices,” said Stan Humphries, Zillow’s chief economist, in a statement.

“We remain encouraged about the organic stabilization in home values that we have been seeing absent the federal homebuyer tax credits, but we remain concerned about the impact that recent economic turmoil and continued weak economic indicators will have on future home sales and home-value trends.

“At this point, we maintain the expectation that a definitive bottom will not occur until 2012 at the earliest.”

According to CoreLogic’s price index, home prices fell a slight 0.7 percent year-over-year in August when distressed sales are excluded.

“The continued bright spot is the nondistressed segment of the market, which is only marginally lower than a year ago and continues to exhibit relative strength,” said Mark Fleming, CoreLogic’s chief economist, in a statement.

Of the 100 most-populous metro areas nationwide, 80 saw yearly price declines in August, including seven of the top 10.

10 largest metro areas	Y-o-Y Chg.	Y-o-Y Chg.
	Single-family	Excluding distressed
Chicago-Joliet-Naperville, Ill.	-10.2%	-1.3%
Phoenix-Mesa-Glendale, Ariz.	-9.8%	-8.2%
Atlanta-Sandy Springs-Marietta, Ga.	-7.2%	-2.8%
Riverside-San Bernardino-Ontario, Calif.	-6.0%	-3.8%
Los Angeles-Long Beach-Glendale, Calif.	-5.2%	0.7%
Houston-Sugar Land-Baytown, Texas	-2.6%	3.3%
Philadelphia, Pa.	-1.7%	-1.7%
Dallas-Plano-Irving, Texas	0.2%	2.6%
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.	0.9%	2.4%
New York-White Plains-Wayne, N.Y.-N.J.	3.2%	4.0%

Source: CoreLogic.

In September, home prices remained little changed, either from August or over a three-month period starting in July, according to a report from Altos Research.

Altos’ 10-city national composite dipped 0.6 percent in September from August and 1.3 percent from July, to $444,045. Salt Lake City posted the largest price change from August, an increase of 1.7 percent.

Unsold inventory in the 10-city composite fell in every market, declining 1.9 percent overall from August and 2.3 percent from July. Tampa, Fla., posted the biggest decrease from August: 9.9 percent.

“The mass liquidation of foreclosure portfolios is best described as a trickle. The inventory is coming on the market slowly as more loans are modified to keep homeowners in their homes. Although the millions of properties in the shadow inventory are still looming, there is nothing that indicates a flood of foreclosures hitting the market anytime soon,” the report said.

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I was reading this article for tips on how to help sell homes in our market in Casper Wyoming, but found it interesting because of the obvious change in mindset of many Americans as they are seeking to buy a home.  The personal economic issues of each American will be directing his or her moves in the coming years.  These are jsut a couple of tips to think about when looking for your next home.

The 3 ways to attract post-recession homebuyers

Mood of the Market

BY TARA-NICHOLLE NELSON, MONDAY, OCTOBER 3, 2011.

Inman News™

Image via Nata-Lia/Shutterstock.

I work in San Francisco and live nearby, so I was particularly intrigued by a recent headline on a national news site about a protest there.

The story was about a “nude in” by some folks protesting what they considered to be a misguided campaign to make nudity illegal (San Francisco’s municipal code doesn’t prohibit public nudity).

The piece featured a short article, a longer-than-normal photo slide show of the protesters, and a slew of comments. I skimmed the article and scrolled straight to the comments, which I just knew would offer at least one major laugh.

I was amazed to see the comments focused instead on the price of gas in San Francisco that day, as revealed in one of the photos accompanying the story — $4.29 for a gallon of regular.

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When I told this story to some relatives who live in a locale with a much lower cost-of-living, they got stuck on gas prices, too! “It’s beautiful, but so expensive to live there!” they clucked, shaking their heads.

I guess it’s a sign of the times. Even naked people are no longer a distraction from what’s really on Americans’ minds: their personal economics.  Here are three features I see post-recession home buyers focusing on in a way they didn’t before.

Access to alternative transportation

A high-earning professional I know who recently relocated for work told me she targeted neighborhoods for her new home by taking a cab to her office and walking 15 minutes in several different directions to narrow down areas within walking distance.

According to Walk Score, a company that’s developed an algorithm to calculate the “walkability” of cities, neighborhoods and properties, every additional point in a home’s Walk Score adds $500 to $3,000 to its value.

With gas prices expected to remain high, today’s buyers are voting for both walkability and access to public transportation with their wallets.

Sustainability of home values

Those intrepid souls who are in the market for homes right must be wary of the prospect of buying into a declining market. If prices are still falling, the home they purchase could soon be worth less than they paid for it. On the other hand, they may also be able to take advantage of bargain-basement home prices and record low interest rates.

Buyers — especially those who have the freedom to choose to shop in several different cities or even states — are taking a hard look at short- and long-term economic factors.

They want to know how many large employers and industries are in a place, and whether more are moving in or leaving town. What the area’s population growth, and what’s it projected to be over the coming decade? How hard hit was an area in the current recession? The harder the hit, the longer it may take for the local economy to stabilize. Buyers-to-be are subjecting all of these issues to more intense scrutiny.

Ability to “age in place”

Aging in place simply means to stay in your home as you grow older, sometimes with home health care if needed, rather than moving to an institution or assisted-living community. Aging in place can benefit individuals, families and communities, and has even been shown to increase longevity and be significantly less expensive than institutionalized care (assisted living can run anywhere from $34,000 to $70,000 a year).

However, not every home is well-suited to having a senior live there over the long term. Many Americans who plan to grow old in their own homes — or foresee the possibility that an aging parent might move in with them — are looking for homes with suitable features such as:

• ground-floor master suites;
• stairs and hallways wide enough to accommodate scooters, wheelchairs and lifts; and
• level-in entries (meaning there are no stairs to get to the front door).

If you’re buying, and not already factoring these things in, consider whether and how they fit into your own priority list. And if you’re selling, these features might be worth touting in your home’s marketing; touch base with your agent to collaborate on highlighting these newly important features to prospective buyers.

Tara-Nicholle Nelson is author of “The Savvy Woman’s Homebuying Handbook” and “Trillion Dollar Women: Use Your Power to Make Buying and Remodeling Decisions.” Tara is also the Consumer Ambassador and Educator for real estate listings search site Trulia.com. Ask her a real estate question online or visit her website, www.rethinkrealestate.com.

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With the economic scene in Wyoming looking good and the influx of new residents that are moving here seeking employment, we are feeling the pinch on our housing market.  In the least populated state in the country, any significant increase in population puts a strain on our limited housing.  Rental properties and starter homes for purchase are being gobbled up by all of the new residents.  In Casper alone, we have 5 new apartment communities that have been built or currently under construction, and they are either full or on a waiting list.  The new trend is for rentals to dominate the market.  Its a good investment if done properly.

Perspective: Economic and demographic trends bode well for rental market

By Inman News, Thursday, September 22, 2011.

Inman News™

lucadp/Shutterstock

By BRIAN DAVIS

Editor’s note: The following is a guest perspective.

Home prices and sales may be flat, but the rental industry is booming. The percentage of renters is on the rise, the number of households is increasing, and more Americans are downsizing, all of which point in a single direction: rents are on the rise.

At the peak of the housing boom, homeownership in America reached an all-time high at 69.2 percent. Today that number has plummeted to fewer than 67 percent, which may not sound like a huge drop, but that represents roughly 3 million households that were owner-occupied and are now tenant-occupied.

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The high foreclosure rate has accelerated the transition toward leasing, but there are a myriad of other trends coalescing to boost demand for rental housing.

For the first time in 40 years, demand has been shifting toward smaller dwellings, coinciding with a shift in demand toward urban centers. Baby boomers are considering downsizing, moving toward areas with more amenities, and members of Generation Y are just hitting their single, urban-living years.

Only the relatively small Generation X is in the buy-a-large-house-in-suburbs category, which means the demand for the traditional single-family home with a white picket fence is weak.

The number of households in the U.S. was artificially stifled during the “Great Recession,” as people took on roommates, moved in with family, or remained with their parents longer than they would have otherwise.

It’s estimated that 1.2 million young adults moved back with their parents from 2005-10, which does not include the number of adults who moved in with roommates or those who would have moved out of their parents’ houses but didn’t because the economy was so bad.

Now, however, these artificially joined households are separating, the vast majority starting with a lease agreement.

Rental vacancy rates are sharply on the decline as well. In the first quarter of 2011, rental vacancy rates had dropped to 6.2 percent, according to Reis Inc., which tracks nationwide residency data. This figure is down sharply from the 8 percent vacancy rate just one year earlier.

That, of course, means that rents are on the rise. Reis tracks data for 82 metropolitan areas in America, and of those, 75 experienced increased rents from early 2010 to early 2011. Furthermore, the nationwide average rental amount rose from $967 in early 2010 to $991 in 2011.

Each of these indicators are entire topics in themselves, but the bottom line is that the rental industry is on the rise, and some real estate experts believe that its growth will accelerate rapidly over the next three to five years.

Apartment-building construction is already responding to the growing demand for rental housing, but with so many construction firms either out of business or licking their wounds, it’s anticipated that there will be a rental housing shortage in many major cities around the country over the next few years.

Brian Davis is a veteran landlord and vice president of ezLandlordForms, which offers landlord information and legal forms.