LATEST HOUSING NUMBERS ARE IN FOR STARK COUNTY!

More good news Stark County because we are in the plus column for our Year-to-Date figures over last year for the second month in a row.  Our new listings are up 5.5% from last year, our Pending Sales are down by 1.7%, and we have closed 2.4% more homes from last year.  These numbers are from Stark County Association of REALTORS Market Statistics for October 2010.

Our number of Days on the Market has inched up a little bit from 98 last year to 103 days this year.  My number of Days on the Market continues to be much better than the averages at 51.2 DOM.  Last year our Average Sales Price was $105,803 and this year-to-date it is $107,060 which is up 1.2%.

The Housing Affordability Index for Stark County is a formula that measures housing affordability for the Regional Housing Market.  An HAI of 120 means the median family income is 120% of the necessary income to qualify for the median priced home using a 20% down, 30-year fixed rate mortgage.  We are at 201 this year-to-date which is up 5.5% from last year, but a whopping 33.3% from two years ago.

Stay tuned for next months numbers!

If ever you have any real estate questions in general or about your home - don't hesitate to call me at 330-491-4600.

10 Deadly Mistakes Buyers Make

I just read an article in the Broker Agent Social Network by Suzanne Port that identified 10 deadly mistakes that buyers make.  I think these 10 mistakes are right on.  They are:

1.   Making an offer on a home without being prequalified
2.   Not having a home inspection
3.   Limiting your search to open houses, ads or the internet
4.   Choosing a Real Estate agent who is not commited to forming a strong business relationship with you
5.   Thinking there is only one perfect house out there
6.   Not considering long-term needs
7.   Not examining insurance issues
8.   Not buying a home protection plan
9.   Not knowing total costs involved
10. Not following through on due dilligence

ARE YOU TIMING THE MARKET TO BUY OR SELL?

Everyone wants to buy low and sell high.  Buyers are still sitting on the fence even though this is the lowest the interest rates have been in 50 years and the housing values are down from recent years. 

Sellers tell us they want to wait until the market improves until they sell their house and Buyers say I want to wait to see if the interest rates come down some more and the value of homes drop further.   

This is what I tell Sellers – Your house value may go up over the next couple of years, but when you sell and turn around and buy another house the value of THAT house has gone up too. 

This is what I tell Buyers – This is THE best time to buy!  Values are down and the interest rates are historically low.  Timing the market is risky, because I would rather see a Buyer buy one day too early with their interest rate rather than buy one day too late when the rates are rising again.

On a loan for around $200,000 – let’s compare the impact of interest rates:

FACT:  Each ½ point increase in your interest rate gives you $12,500 less in purchasing power.

FACT:  Each 1 point increase in your interest rate gives you $25,000 less in purchasing power.

FACT:  Each 2 point increase in your interest rate gives you $50,000 less in purchasing power.

If you put down 20% with $1,500 property tax, and $450 for homeowner’s insurance for a 30 year fixed loan:

$150,000 sales price, at 6.5% interest, your payment is $920.98

$162,500 sales price, at 5.5% interest, your payment is $900.63

$175,000 sales price, at 5% interest, your payment is $914.05

$200,000 sales price, at 4.5% interest, your payment is $973.20

The payments are similar, but the home you can afford to buy at 6.5% is $50,000 less than the one you can buy at 4.5%.  AND that $200,000 house value is down by 20 to even 30 percent.  NOW is the best time to buy AND sell.

We're In the PLUS Column Stark County!

Good news Stark County we are in the plus column for our Year-to-Date figures over last year.  Our new listings are up 7% from last year, our Pending Sales are up by 3.7%, and we have closed 5.8% more homes from last year.  These figures are as of the end of September 2010.

Our number of Days on the Market has inched up a little bit from 98 last year to 103 this year.  My number of Days on the Market continues to be much better than the averages at 51.2 DOM.  Last year our Average Sales Price was $104,650 and this year-to-date it is $107,346 which is up 2.6%.

The Housing Affordability Index for Stark County is a formula that measures housing affordability for the Regional Housing Market.  An HAI of 120 means the median family income is 120% of the necessary income to qualify for the median priced home using a 20% down, 30-year fixed rate mortgage.  We are at 200 this year-to-date which is up 3.7% from last year, but a whopping 31.3% from two years ago.

We aren't out of the woods yet, but I think it is safe to say we are turning the corner.  Stay tuned!

If you ever have any questions about anything real estate related you can reach me at 330-491-4600 or email at MKlee.@KW.com