30-Year Mortgage Rates Fall to 4-Year Low

Housing industry observers are hopeful that the recent decline in mortgage rates will lead to a recovery in the market.

Freddie Mac reports that interest on 30-year, fixed loans fell for the fourth straight week, landing at their lowest level in nearly four years.

Economists say mortgage rates averaged 5.48 percent for the week ended Jan. 24 -- down from 5.69 percent a week ago -- because of the latest reports about the economy and because the Federal Reserve made its biggest cut in 20 years to a key interest rate.

Freddie Mac also reports that rates on 15-year mortgages declined to 4.95 percent from 5.21 percent, rates on five-year adjustable-rate mortgages dropped to 5.13 percent from 5.4 percent, and rates on one-year ARMs slipped to 4.99 percent from 5.26 percent.

Source: Baltimore Sun (01/25/08)

Stable Home Sales Expected Before Gradual Rise

Over the next few months, existing-home sales are expected to hold fairly steady as indicated by pending sales activity, then rise later in the year and continue to improve in 2009, NAR says. "On the one hand, we have a pent-up demand from the four million jobs added to our economy over the past two years of sales decline," says Lawrence Yun, NAR chief economist. "On the other, consumers continue to wait for additional signs of market stabilization. There are more people with financial capacity to buy now than in 2005, but many are trying to market-time their purchase.

How to Get a Quick Sale in a Slower Market

Although this reflects a different market than ours, the principles hold true anywhere.

An analysis of the real estate market in the Baltimore area shows that even in a slow market some houses sell quickly — for the same reasons they do in a booming market.

In November, when the average time on the market was 105 days, 13 percent of the 1,892 homes that sold in Baltimore and five surrounding counties had contracts in two weeks or less, according to data from Metropolitan Regional Information Systems Inc.

Those 251 homes went from listing to selling in an average of seven days. They were typically older, three-bedroom, two-bath houses that sold at an average of $304,355 — about $4,000 under the overall average sale price.

An analysis shows that fast sellers in a slow market have three common denominators:

• They're priced better than comparable listings.
• They show like model homes.
• They have a full force of marketing, including enticing Internet photos, behind them.

Source: The Baltimore Sun, Lorraine Mirabella (01/10/08)

Survey Shows Remodeling on the Rise in 2008

The popular home-repair referral service, Angie’s List, says its annual poll indicates that home owners will spend an average of $11,250 on home improvement and maintenance projects in 2008, up 13 percent over the average they reported spending in 2007.

On average, home owners responding to the survey say they plan to spend 2.9 percent of their home’s value on repairs and renovations this year.

“Building experts tell us they’re getting calls for work from home owners who would otherwise move and put their current home on the market, but are afraid they can’t sell it quickly enough to afford the newer, bigger house,” says Angie’s List founder Angie Hicks.

The most frequently planned projects are kitchen and bath updates—areas that real estate experts say provide the best return when selling a home. Other popular projects include landscaping and yard work, painting inside and out, flooring, doors and windows, and decks and porches.

Source: Angie’s List (01/01/2008)

Real Estate Terms

Stumped by the jargon and language of Real Estate? Go to our Favorites and click on the Real Estate Glossary button

First Step in Buying Property

So…you’re finally ready to buy some property, but what’s your first step?

You don’t want to waste time looking at fantastic homes or lots that you’ll never be able to afford. It’s to your advantage to meet with a mortgage broker and let them give you and idea of what your buying range is. The broker will want to do a credit check and talk with you about different kinds of loans you could consider and what your expected interest rate and approximate monthly payment will be.

You’ll not only walk away knowing how much you can afford to spend, but you’ll know a lot more about the loan process you’ll be going through. What’s more, you will have a pre-qualification letter that, when attached to an offer you make, will strengthen your offer because the seller will know you are a qualified buyer.

We know this process may be a little intimidating, but it's well worth the effort!

5 Simple Ways To Increase Your Home's Value

Good home maintenance is key to creating and preserving a home’s value. Not to mention, it also impresses potential buyers.

Here are five basic steps that every home owner ought to take — before spending money on dream bathrooms or gourmet kitchens.

1. Safety. Make sure smoke detectors and carbon monoxide detectors are installed and in good working order. Check fuel-burning appliances to make sure they are properly vented and no gas connections leak. Make sure the electrical system is adequate. Flickering lights and popping breakers are the sign of a problem. Anchor handrails and grab bars adequately.

2. Preventive maintenance. Repair any leaks in the roof, seal gaps in the siding, paint bare wood, replace damaged decking, patch cracks in concrete, and caulk around tubs and showers.

3. Conserve energy. Install a programmable thermostat, weatherstrip doors and windows, fix leaking faucets, upgrade insulation, and replace leaky windows.

4. Go green. Consider environmentally friendly materials for windows, doors, siding, decking, fencing, roofing, flooring, and insulation.

5. Improve comfort. Get rid of clutter, open up spaces, update window treatments to allow in more light, and organize closets and storage.

Source: The Associated Press, James and Morris Carey (12/29/07)

Know What Your House Is Worth

It’s important to know the estimated value of your home. You can do this basically in two ways:

Market Comparables – If you are thinking of selling your home, any real estate agent will be more than happy to give you an idea of a good listing price. The agent will furnish you with information about actively listed properties in your neighborhood, as well as what homes have sold for recently. This information is very helpful to you in knowing how much money you can potentially get for your home. There is no charge for this service.

Appraisals – You can also order a formal appraisal on your home. Appraisers look at property value from a broader base. Such an appraisal is done on your property when a buyer is getting a loan to buy it. So having the appraisal prior to listing will give you the extra confidence that your home is indeed worth every penny of the listing price. Average cost of an appraisal is $400-$500.

Welcome

Welcome to our BLOG about real estate in this beautiful Ruidoso area! Many of you out-of-towners dream about buying a vacation home in Ruidoso. Many of you full-timers or current owners are hoping to move up to a larger home!

So... whether you are buying or selling, take a look at our archives and find answers to many of your questions about real estate transactions. We'll be posting several articles each month, and we're excited to hear from you! If you need immediate information, feel free to post your question here, send us an email or simply call us.