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What Will My House Be Worth Next Month?

We always want to make sure that we get at least a fair price for anything we are selling. Truth be told, we hope we get top dollar and would not be upset if a buyer was willing to pay a premium above that. The same dynamics come into place when we are selling a […]

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A Closer Look at Home Pricing Indexes

You might think that home values are on the rise if you read the headlines this week. It seems that almost every home pricing index is showing an increase over prices last year: The latest S&P Case Shiller Index showed a year-over-year increase of 3.8% Core Logic put the number at +2.6% The RPX index […]

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Are Home Prices Actually Increasing?

There is much euphoria about housing prices based on the last month’s data. Almost every pricing index has shown an increase over previous prices. The news looks very encouraging. Many media sources have reported that perhaps we have hit bottom regarding prices and are now headed in a more positive direction. I wish that was […]

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One More Reason Given for Not Buying a Home

We have been addressing some of the more questionable reasons people give for not buying a house each Wednesday. Three weeks ago, we covered Dumb Reason #1: Real Estate is no longer a good investment. Two weeks ago, we covered Dumb Reason #2: Renters are happier than homeowners. Last week, we covered Dumb Reason #3: Limited […]

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Job Creation: Only Solution for a Housing Recovery

The government has tried many stimulus programs to re-energize housing.  They attempted to kick-start demand by offering the First Time Home Buyers Tax Credit and they did have some success originally. They extended the program and added a provision for move-up buyers also. Even the government admits that the extension may not have increased demand […]

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The Post Tax Credit Housing Market (Part 2)

What will housing demand look like for the rest of 2010? It has been an interesting six weeks since the last of the government programs for buyers, the Home Buyer Tax Credit, has expired. Demand has slowed down but has not come to the screeching halt some had expected. The million dollar question is ‘What […]

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The Post Tax Credit Housing Market (Part 1)

Here we are six weeks after the expiration of the Homebuyer Tax Credit. Armageddon did not take place. Homes are still selling. Certain price points are actually selling quite well. The question remains what will happen to the overall housing market as we proceed through the year. There is still much uncertainty as to what […]

Appraisal Challenges: Straight from the Battlefield

Chip Wagner is an appraiser with over 20 years experience. Below is a comment he made to Monday’s post. We thought so highly of his response that we received his permission to post it directly on the blog. – The KCM Crew There are many challenges facing the real estate industry today, and one of the […]

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Distressed Properties Impact the Value of YOUR Home

There are times in our lives when we have it better than many of our family, our friends and our neighbors. We try to help in any way we can. Yet, to some degree, we are relieved that we are not impacted by their challenges. Many people look at the heartache in the current housing […]

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The Appraisal: A True Evaluation of a Home’s Worth?

Every house for sale in today’s real estate market must be sold twice. First, you must find a buyer ready, willing and able to purchase the home. Second, you must sell the value of that house to a bank so they will agree to lend money based on the negotiated price. The second sale may […]

#1 Threat to Housing Recovery: Shadow Inventory

The concept of supply and demand is relatively easy to understand. It applies to real estate as it applies to any other industry. We must look forward to determine the upcoming supply of housing inventory just like every other industry does. As an example, let’s assume I own a hardware store in town. I have […]

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Supply and Demand: How it applies to Real Estate

Supply and Demand. It is a relatively easy concept to understand. Most of us learn it in high school. The price of any item is determined by two variables: the demand for that item and the current supply of that item. If I had one of only seven Spanish gold coins known to exist, the […]

Sales Skyrocketed! So Why Is Supply INCREASING?

There was great news reported yesterday by the National Association of Realtors (NAR). The Existing Homes Sales Report showed a 7.6% increase in sales over last month and a whopping 22.8% increase over April 2009. This is fantastic news as it proves the tax credit, which expired at the end of April, did increase sales […]

The Experts Look at Home Prices in 2010

Trying to determine where home prices will be at the end of the year is no easy task. MacroMarkets surveyed 92 economists and other housing analysts as to where they see home values as measured by the S&P/Case-Shiller national index. MacroMarkets, LLC is a company co-founded by Professor Robert Shiller who also founded the well […]

Supply and Demand Post Tax Credit

The big question in real estate is what will happen now that the Homebuyers Tax Credit has expired. Did the tax credit kick-start a housing recovery? Would the momentum continue throughout the year? Any market is determined by the supply and demand for the product involved. Today we want to look at those two items as the […]

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Where Will Home Prices Be in 2012?

This week we have discussed how difficult it is to establish the value of a home in today’s market, what factors will impact prices in 2010, the effect distressed properties will have on values, and the challenges faced by appraisers in establishing value. Today, I want to tackle future values… specifically where prices will be […]

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Who Cares What The Purchase Price Is… WILL IT APPRAISE?

The classic definition of what a home was worth has always been “what a reasonable buyer will pay a reasonable seller.”  That’s because MOST real estate transactions have historically involved reasonable people– people not under duress.  But today, with the enormous number of foreclosures, bank-owned property, strategic defaults, and short sales, all the reasonableness has […]

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Shadow Looms Over Home Prices

“We should pay heed to foreclosure activity, which have reached their highest level in at least the last five years. As these homes are put up for sale, we may see some further dampening in home prices.” – S&P Case Shiller Home Price Index 4/27/2010 “We expect the high rates of negative equity and foreclosures […]

Prices: the Truth… and Nothing but the Truth

Three different home pricing indexes were released in the last ten days: the S&P Case Shiller Index, the First American CoreLogic Home Price Index and the RPX Monthly Housing Market Report. Each report told virtually the same story. House prices remained pretty much the same since the last reporting period (see table below). The headlines […]

When Will 2005-2006 Peak Home Prices Return?

Experts can’t agree where home values will be later this year. There are so many variables to consider: interest rates, foreclosures and unemployment to name a few. That is why it is amazing to see a new report which not only looks at this year but also predicts when housing values will return to the […]

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A Foreclosure’s Impact on Neighboring Home Values

Yesterday, we covered the coming surge of distressed properties that will enter the market in 2010. Today, we will discuss the impact these properties will have on housing values as we proceed throughout the year.  Questions you should be asking yourself are: 1) Do distressed properties sales impact the value of the surrounding homes, 2) […]

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How Do Rising Interest Rates Affect Affordability?

I have long been irked by mortgage “pre-approvals” that say a borrower is qualified to purchase a non-specific home for a specific loan amount.  Why?  Because, lenders don’t qualify borrowers based on the Purchase Price of a home, we qualify them for a particular Mortgage Payment (and payments vary based on a number of factors […]

The Impact of Unemployment on Real Estate

The current real estate market is much like a Rubik’s cube. Once you think you have it figured out, you look at it from another angle and find out you still don’t have it right. There are many factors complicating the current market. I want to address one of those factors today – UNEMPLOYMENT. When […]

Real Estate: No Wonder We’re All Screwed Up!

Whenever a market is evolving rapidly, the most difficult thing to do is keep up with the changes. A home seller or a home buyer in today’s real estate market must make sure that they understand what is happening and why it is happening. They can then guarantee that they are making an informed decision […]

Will the Fed’s Exit Impact Home Prices?

The Fed has withdrawn from purchasing mortgage-backed- securities and will be exiting from the Homebuyer’s Tax Credit after April 30, 2010 (the date the property must be in contract). Many people are talking about the affect these moves will have on purchasers. We should also be looking at how the ending of these programs will […]