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Barb Bottitta CSR, GRI, ABR, SRS, SRES

Lehigh Valley Real Estate Today. Barb Bottitta CSR, GRI, ABR, SRS, SRES. The Numbers That Drive U.S. Real Estate. Home Sales Home Prices Inventory Mortgage Rates Affordability. WA. ME. VT. ND. MT. MN. OR. NH. ID. SD. WI. NY. MA. CT. MI. WY. RI. PA. IA. NJ. NE. NV.

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Barb Bottitta CSR, GRI, ABR, SRS, SRES

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  1. Lehigh Valley Real Estate Today Barb Bottitta CSR, GRI, ABR, SRS, SRES

  2. The Numbers That Drive U.S. Real Estate • Home Sales • Home Prices • Inventory • Mortgage Rates • Affordability

  3. WA ME VT ND MT MN OR NH ID SD WI NY MA CT MI WY RI PA IA NJ NE NV DE IN IL UT MD WV CO CA VA KS KY MO NC TN AZ OK NM AR SC MS AL GA LA TX FL AK HI In Q3 2010, all 50 states experienced a decrease in sales … OH Home Sales Direction (Year-Over-Year Change) Below 10% Below 20% Below 30% Below 40% Source: National Association of REALTORS®

  4. WA ME VT ND MT MN OR NH ID SD WI NY MA CT MI WY RI PA IA NJ NE NV DE IN IL UT MD WV CO CA VA KS KY MO NC TN AZ OK NM AR SC MS AL GA LA TX FL AK HI In Q4 2010, all states except for Virginia experienced an increase in sales … OH Home Sales Direction (Year-Over-Year Change) Sales Increased Sales Decreased Source: National Association of REALTORS®

  5. Units 2006 Monthly Lehigh Valley Home Sales

  6. Over the last 2 ½ Years, the average sale price peaked at $211,00 in June 2010, but dropped back to $200K or lower for all of 2011, before it jumped back over that mark to $206,000 this past June. Average Lehigh Valley Sale Price (In $100Ks) $211K $200K $206K Statistics from LVAR Average Sale Price = Total Price of all properties sold, divided by the number of sales

  7. Average Lehigh Valley SalesApril 2010 through June 2012 Statistics from LVAR

  8. Lehigh Valley Absorption Rates April 2010 through June 2012 Months Statistics from LVAR

  9. Lehigh Valley Absorption Rates bySchool District, June 2012 StatisticsfromLVAR

  10. Mortgage Rates (30-Year Fixed) Mortgage rates averaged 4.69% in 2010, an all-time low since Freddie Mac started tracking in 1971… and they’ve just kept going down, setting record lows for 6 consecutive months. 10.3% 6.0% 5.0% 3.25% Source: FreddieMac

  11. Affordability (In Thousands) Given the historical rate of home appreciation rates, home prices are a huge bargain. Are 2011 homes undervalued by 23%? $211K $222K $153K $163K Historical appreciation rate = 4% Source: National Association of REALTORS®

  12. Affordability: Let’s put this in perspective … In 1981, home mortgage payments were 36% of family income. In 1989 – 24% and in 2011 – 13% Source: Keller Williams International

  13. Barb’s Top 10 Things You Should Know about Real Estate • Distressed Properties: Short Sales and Bank Foreclosures (REOs) are not for everyone: Hurdles to overcome: • “As is” property condition • Increased paperwork & complexity • Increased chance for multiple offers • Bank REO process is long & arduous • Buyer probably is not getting a “steal” • Buyer must be “patient”

  14. #9 - “Aging in Place” Did you know? • Half of older women age 75+ live alone. • Persons reaching age 65 have an average life expectancy of an additional 18.1 years. • The 85+ population is projected to increase from 4.6 million in 2002 to 9.6 million in 2030. • Median # of years home owners are staying in their homes has increased from 8 to 10 yrs

  15. #8 – Today’s Agent must be “tech savvy”Info Sources Used in Home Search Every source was used less except one – the Realtor! Source: Keller Williams International

  16. #7 – Down payments of 5% or less have not disappeared • Both first-time and repeat buyers are putting less than 20% down, even though a down payment of 20% will typically provide the best financing terms. • 68% of first-time buyers and 28% of repeat buyers had a down payment of 5% or less in 2011. Source: Keller Williams International

  17. #6 – Yes, it’s still the economy Employment will remain a challenge over the next few years, which impacts the market by tempering GDP and holding back demand for home buying. To get back to 6% unemployment, 13.3 million jobs need to be added over the next 3 years. That’s 400,000 jobs/month Source: Keller Williams International

  18. The Four Keys to Housing Recovery Source: Keller Williams International

  19. #5 – Condition is the key for serious buyers Homes in better condition sold for an average of 96% of list price compared to 92% of list price for homes in poorer condition. The most common updates: Paint 44% Floorings 25% Lighting Fixtures 20% Source: Keller Williams International

  20. #4 – Staging is well worth the effort Staged Homes sell faster. Staged homes get higher offers. Staged houses look better in the MLS pictures, getting more potential buyers to actually come see the house in the first place. Staged houses have an edge over competing properties, and the staging can often sway the final decision. Source: HomeStaging.com

  21. #3 – First-Time Home BuyersPercent of Home Buyers Source: Keller Williams International

  22. #2 – Price it right the first time! For the 48% of sellers who set their listing price according to their agent’s interpretation of the market value of their house: Sold faster – 56 days compared to 105 Sold for 6.7% higher list-to-sell ratio Experienced fewer price reductions (4 to 6 weeks between price reductions of between $5,000 and $15,000 Source: Keller Williams International

  23. #1 – “The end is in sight” – we have “hit bottom” We have been in a Buyer’s Market for the last 6 years because: home prices have been low, Mortgage rates are at an all-time low and Inventory has been high. Prices have stabilized (we’ve had our pricing correction), it doesn’t seem likely that interest rates can go any lower & we are reaching an inventory balance. Source: Keller Williams International

  24. Barb’s Top 10 1. The end is in sight. 2. Price it right the first time! 3. First-time Home Buyers 4. Staging is well worth it. 5. Condition is key for Buyers. 6. Lower unemployment is key to the housing recovery. 7. Down payments of 5% are still feasible. 8. Your Realtor should be “tech savvy”. • Aging in Place – the senior market. • Short Sales & Foreclosures.

  25. Thank You! – Questions? Slides & absorption graphs for all LV School Districts available at www.LVhomeExpert.com/Rotary Barb@LVhomeExpert.com 610-398-8408

  26. First-Time Home Buyers

  27. Info Sources Used in Home Search Every source was used less except one – YOU!

  28. What Buyers Want Most from Agents Help find and arrange financing 2% Help determining how much home buyer can afford 3% Other 3% Determine what comparable homes were selling for 6% Help with paperwork 10% Help buyer negotiate the terms of sale 12% Help with the price negotiations 14%

  29. Buyer’s View of Home as a Financial Investment

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