Cheaper to Buy Than Rent

In 98 percent of the metro areas across the United States, it is now cheaper to buy than rent.  And renters are getting that message.  They are entering the housing market in almost record numbers across the nation.

Great News!

Check out this article from Time Magazine: http://business.time.com/2012/05/15/report-housing-market-recovery-has-officially-begun/

Renters Make the Move Into the Housing Market

Two housing reports this week provide solid insight to the recovery of the local housing market. Net leasing of apartments in the Dallas-Ft Worth area turned negative in the first quarter 2012, the first time this has happened in several years. At the same time, sales of new homes here rose five percent from a year ago. And pre-owned home sales are running about 20 percent ahead of where they were in early 2011. With the cost to finance homes near record lows and average North Texas apartment rents at record highs, it’s safe to figure that some renters are making a move. The average cost of a new apartment in the area tops $1,000 monthly. “The first three months of the year are reinforcing our forecast that 2012 will be the first year of recovery in the Dallas-Ft. Worth housing market,” said David Brown, who heads the Dallas office of housing analyst MetroStudy, Inc.

-            Steve Brown, Dallas Morning News, April 2012

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings...

...see full article here

Rents Continue to Climb, Making Buying Even Better

As demand increases, rents continue to rise, increasing five percent over the past 12 months across the United States. Meanwhile, the asking price for homes fell 0.7 percent in that time, according to a new report released Thursday by Trulia Inc. “Buying a home is more affordable than renting now in almost every part of the United States,” said Jed Kolko, Trulia’s chief economist. “A lot of people who were owners lost their homes in the bust,” Kolko said. As such, many of these former home owners have turned to renting, which is ramping up demand and driving up rents across the country. But for many renters, buying is now cheaper than renting creating a seller’s market in many parts of the country, especially in the first time home buyers market.

-  REALTORMag, April 2012 (posted with permission)

All Homes Are Not Created Equal!

Some have better locations, better lots, better floor plans, but still do not sell "better." It starts with the drive-up, a good first impression can make all the difference. Mow that lawn, trim those bushes (and trees if you are lucky enough to have some of those), paint that front door, and plant some flowers. Don't present a bare concrete on the porch floor. Cover that cracked and discolored concrete with tile, pavers, or bricks. Or, if you are in the upper price range, try some stamped or patterned concrete for a new look. 
 

Now that we have that potential buyer ready to look inside, hopefully the clutter is gone, the paint is fresh, the carpets are cleaned, and all of those personal photos and extra furnishings have been packed away. 

It should now be ready to get an offer. Now if there is granite on the counter tops and stainless steel appliances, the offer will come sooner and the price will be higher. Hardwood floors will further enhance the showing numbers and the price. Set your house above the expectations of the market. 

Buyers are learning to make better first offers because the number of houses available that meet the expectations of the marketplace are decreasing. The low-ball offers are no longer working as the market is on the upswing. Those low-ball offers could cost them the house they desire because of a low bid. A good offer will most likely get a good response.

The market is rebounding. Moving up or moving down, do it right and do it well.

Warren Buffett: Housing Better Investment Than Stocks

Warren Buffett says along with equities, single family homes are a very attractive investment right now. Appearing live on CNBC's Squawk Box, Buffett tells Becky Quick he'd buy up "millions" of single family homes if it were practical to do so. If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.

CNBC, Feb. 27, 2012