Real Estate New York
Market Update August 2009
4 Months Left to Use $8,000 First Time Buyer Grant information
Capital Region Housing Market UP or DOWN?!
Within a period of less than a week at least five sources have reported the Capital Region housing market as either up or down.
BizJournals reported Albany, NY home prices down 1/3 of a percent from peak.
The Business Review reported home prices in Albany, NY up by 1/3 of a percent.
The Greater Capital Association of Realtors reported home prices in Albany, NY as down 6% in June.
The Albany Times Union reported a rise in home prices for the same period.
The Washington Post reported a rise in home prices of 11% for the same period.
To make sense of these conflicting reports it is necessary to look beyond the statistics to the market itself. For as Mark Twain* noted, "There are three kinds of lies: lies, damned lies, and statistics."
Basically, the problem lies in what figures are being compared. In the example of the Washington Posts report referencing the Commerce Department report released July 28, 2009 the 11% upturn in home June sales and prices reflects an increase from the previous month, which was unusually low.
When compared to June 2008 they were actually down 21.3%. Prices too were lower at 12% below their June 2008 levels.
Only the Greater Capital Association of Realtor report reflects something of the true decline while both the BizJournal and The Business Review statistically identical figures misses the mark.
What is actually happening is that the number of sales is undeniably down by as much as half the normal levels in some areas. Tight mortgage lending and an unsure market have kept many home buyers on the sidelines. Moreover, many seller's denial of any decrease in the value of their property have kept asking prices at near peak levels. Most purchases are being made by buyers who need to buy. This results in fewer sales but sales at or near peak value for a normal market.
However, while some buyers must buy some sellers must sell. If they cannot find a buyer in the highly motivated buyers group they must therefore sell at any price to buyers who would snatch up a bargain despite an uncertain market.
For those in a position to buy the confusion that reigns in the Capital Region and throughout the nation presents an excellent opportunity opportunity to own a home that a few years earlier may have been out of reach.
Breaking News August 1st, 2009 from NYS Association of Realtors : Second quarter housing market grows 55 percent; June New York State home sales up 30 percent
The New York State housing market continued to show positive sales growth as the second quarter came to a close, fueled by a 30-percent increase in statewide sales between May and June. Statewide existing-single family sales also posted a 55-percent increase in the 2009 second quarter compared to the first three months of the year.
The statewide median selling price of $189,900 in June was 2.8 percent higher than the $184,700 median recorded in May 2009, according to preliminary single-family sales data accumulated by NYSAR. To access complete June statistics,
Same statistical anomaly: This report compares the first quarter (dismal) with the second quarter of 2009 (somewhat less dismal)
For the true picture see graphed market stats below for the last 2 1/2 years
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White Roofs Catch on as Energy Cost Cutters
Studies show that white roofs reduce air-conditioning costs by 20 percent or more in hot, sunny weather. Lower energy consumption also means fewer of the carbon dioxide emissions that contribute to global warming.
Relying on the centuries-old principle that white objects absorb less heat than dark ones, Southwest homeowners are in the vanguard of a movement embracing “cool roofs” as one of the most affordable weapons against climate change .
Studies show that white roofs reduce air-conditioning costs by 20 percent or more in hot, sunny weather. Lower energy consumption also means fewer of the carbon dioxide emissions that contribute to global warming.
What is more, a white roof can cost as little as 15 percent more than its dark counterpart, depending on the materials used, while slashing electricity bills.
Energy Secretary Steven Chu , a Nobel laureate in physics, has proselytized for cool roofs at home and abroad. “Make it white,” he advised a television audience on Comedy Central's “Daily Show” last week.
The scientist Mr. Chu calls his hero, Art Rosenfeld, a member of the California Energy Commission who has been campaigning for cool roofs since the 1980s, argues that turning all of the world's roofs “light” over the next 20 years could save the equivalent of 24 billion metric tons in carbon dioxide emissions.
“That is what the whole world emitted last year,” Mr. Rosenfeld said. “So, in a sense, it's like turning off the world for a year.”
This month the Waldreps' three-bedroom house is consuming 10 percent less electricity than it did a year ago. (The savings would be greater if the family ran its central air during the workday.)
From Dubai to New Delhi to Osaka, Japan, reflective roofs have been embraced by local officials seeking to rein in energy costs. In the United States, they have been standard equipment for a decade at new Wal-Mart stores. More than 75 percent of the chain's 4,268 outlets in the United States have them.
California , Florida and Georgia have adopted building codes that encourage white-roof installations for commercial buildings.
Drawing on federal stimulus dollars earmarked for energy-efficiency projects, state energy offices and local utilities often offer financing for cool roofs. The roofs can qualify for tax credits if the roofing materials pass muster with the Environmental Protection Agency's Energy Star program .
However, in the Capital Region and points north air conditioning savings may be negated by higher heating costs depending on individual usage and lot location, whether sheltered or exposed.
more from The New York Times by FELICITY BARRINGER
lick to Architecture Coach: Bungalows
The bungalow is a popular architecture style around the country
but its look may vary.
Regional styles of bungalows prevail across the country. In fact, it's one of the few architectural trends that spread from the West coast to the East coast, says John Brinkmann, publisher of American Bungalow Magazine .
But there is some variety in style. For example, Midwestern bungalows often have a foyer and a coat closet, but don't have sleeping porches, explains M. Caren Connolly, who co-wrote Bungalows: Design Ideas for Renovating, Remodeling, and Building New (Taunton Press, 2006). (That's a typical feature for bungalows built in the South or in California.)
On the other hand, California bungalows often lacked closets, and its' owners would relocate their refrigerator to the garage. But because of a lack of central heating, fireplaces abound in California bungalows.
In Long Beach, Calif., Steffie Hands, who specializes in selling bungalows, frequently lists these three bungalow styles: Craftsman, Spanish-style (smooth, stucco exterior; Mediterranean-tile roof; and iron or Spanish-style fixtures) and California.
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Finding a Home
Buying a home for the first time can be overwhelming for many first-time home buyers because few home buyers know where or how to begin the search to buy a home. You can cut down on the red tape and save a lot of time if you figure out what you want before meeting with a lender or real estate agent.
Below are fourteen first time homebuyer resources that present important information to help anyone make the right choices whether a first time homebuyer or someone who has owned many homes.
read more by Elizabeth Weintraub
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Finance: What's Really Available Today
Download Free webinar on available mortgage financing.
Is home mortgage financing available only to consumers with strong credit ratings and the ability to make down payments of 20 percent? What about the availability and affordability of jumbo loans? In this webinar, sponsored by Bank of America, a lending expert and a real estate sales associate with more than 30 years in the business will join REALTOR® Magazine to help you help navigate the difficult mortgage finance environment today. Read answers to questions from attendees.
Host:
Stacey Moncrieff, editor in chief, REALTOR® Magazine
Presenters:
Judy Zeigler, CRB, CRS
Windermere Real Estate Coachella Valley,
Palm Desert, calif.
Tom Gamache
Bank of America
Retail Mortgage Sales, East Division
Intended for Realtors but essential information for all home owners to be
running time: 54 minutes 25.2 mb
Note: The WebEx ARF player is required to playback the recording. Download ARF player
This webinar may also be played as a stream: Play
requires WebX Active X Control
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6 Creative Ways to Afford a Home
1. Investigate local, state, and national down payment assistance programs. These programs give qualified applicants loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program, www.getdownpayment.com , and the American Dream Down Payment Fund from the Department of Housing and Urban Development, www.hud.gov .
2. Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage.
3. Consider a shared-appreciation or shared-equity arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names are usually on the mortgage. Companies are available that can help you find such an investor, if your family can't participate.
4. Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history.
5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, non refundable option fee to the owner.
6. Consider a short-term second mortgage. If you can qualify for a short-term second mortgage, this would give you money to make a larger down payment. This may be possible if you're in good financial standing, with a strong income and little other debt.
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Mortgage Rates and Trends
The link to up to the minute New York State mortgage information seems to work better than presenting the actual graph.
Click for up to the minute mortgage rate information
Buyers' versus Sellers' Market Report
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The graph above shows the number of sales in a given month divided by the number of homes on the market in the four main counties of the Capital Region. With a substantial increase in sales numbers for June, the market is vectored towards a seller's market that we have not seen since last July.
July's sales figures show a continued reversal of direction into neutral or seller's market after touching into uncharted buyer territory in February. For the moment, the market is well balanced in what we call a Realtor's Market, neither wholly favoring buyers or sellers
*This ratio can be used to determine whether we are in a buyers' or sellers' market as indicated in Dennis Maier's article on Market Timing featured in eZine Real Estate. In general, if it would (theoretically) take less than 6 1/2 months to sell the current inventory it's a sellers' market. If it would take more than 9 months to sell all the homes on the market it's a buyers' market.
Market Statistics as of August 1, 2009
Average Sale & List Prices for Albany, Schenectady, Rensselaer, Saratoga Counties
The average list and sale prices for the month of July 2009 show an increase in both average list and sale prices, as is typical for this time of year. However, both the list prices and sale prices remain below levels seen in past years.
The average asking price to sale price has dipped slightly from 96.97% in June to
96.92%
for July. The number of sales at
624
is significantly up.
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Mortgage Rates and Trends
The link to up to the minute New York State mortgage information seems to work better than presenting the actual graph.
Click for up to the minute mortgage rate information
How the Cap-and-Trade Bill Could Transform Real Estate Sector
"The legislation, if enacted, is transformative. Residential and commercial buildings, multifamily and low income housing, new and existing buildings, development and real estate finance will all be impacted. The surprise is how quickly the time frames are proposed. The reasons appear centered on the substantial opportunity buildings offer, with almost 48 percent of all greenhouse gas emissions and 70 percent of projected electricity use over the next decade."
What are the real estate industry implications of the House cap and trade legislation? If the bill should pass the Senate in substantially similar form later this year (by no means a sure thing) the U.S. real estate industry will be reshaped in the following ways:
• Increasing reliance on building codes (instead of voluntary standards such as LEED) to establish energy efficiency and green building practices.
• A stronger role for the federal government in prescribing building energy efficiency requirements.
• Increasing standardization in building energy performance metrics in the commercial and residential sectors.
• Greater reliance on the public sector and on public-private partnerships in creating and financing building energy efficiency programs.
• Growing employment in green collar jobs related to building energy efficiency.
An unanswered question is whether the increasing importance of building energy efficiency will accelerate real estate industry consolidation.
It is possible that the combined effect of new building energy standards and energy efficiency labeling will leave under-capitalized building owners -- who cannot afford energy efficiency retrofits -- at a more significant competitive disadvantage.
At the same time, the playing field could be leveled by public programs that provide financial assistance directed to smaller commercial property owners and households.
As Zimmer notes: "The legislation, if enacted, is transformative. Residential and commercial buildings, multifamily and low income housing, new and existing buildings, development and real estate finance will all be impacted. The surprise is how quickly the time frames are proposed. The reasons appear centered on the substantial opportunity buildings offer, with almost 48 percent of all greenhouse gas emissions and 70 percent of projected electricity use over the next decade."
Read more from Reuters
by Leanne Tobias
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Archives
We've been asked to again include links to past market updates. But since our stories link to other web sites over which we have no control we only want to link to our most recent issues. Otherwise, the article links may fail to work as they once did.
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Not Getting First Look Listings?
A number of people have told us that our First Look listings have stopped arriving in their email box.
Most often this is caused by the clients spam filter stopping the email listing from arriving.
Usually this can be remedied by including: Email@ParagonMessaging.com as a Safe Sender or white listing the above email address as safe. If help is needed to do this you may contact:
Dennis Maier 518-312-4030 extension #1 or 888-749-3384 toll free
*Yes, Mark Twain was quoting Benjamin Disraeli