Your Agent Matters - Christie Farris

Why is it that some beautiful homes in our area seem to be on the market far too long? Or that some of our neighbors seem to settle for less than their home is worth?

Your Agent Matters.

Selling a home today does not have to be complicated, but it does take two things: knowledge and systems.

As your neighborhood professional REALTOR®, I understand

• The most likely buyer for your home;

• How much they will pay;

• How they like to be marketed to; and

• What you can do to reach this buyer.

You deserve an agent with the systems to sell your home for the most money, with as little hassle as possible.

To put my knowledge of systems to work for you. Call Christie Farris at 225-315-9003 or visit my website at www.christiefarris.com

Because Your Agent Matters!

Sincerely,

Christie Farris

225-315-9003

christiefarris@gmail.com

November/December 2013 Market Pulse

November/December 2013 Market Pulse

Pent-up buyer demand may lift the market soon, but for now interest rates and lending standards are holding down home sales as the year winds to a close.

 Rising interest rates and continuing tight underwriting could dampen sales as the year winds down. Still, 2013 sales will be up significantly from 2012. Appreciation remains robust, largely because of tight inventories. Interest rate concerns are reducing practitioner confidence. One bright spot: pent-up buyer demand by young households. As adults under 35 start to move out of their parents’ homes, home sales stand to benefit. All trend lines are from August 2012 to August 2013.

  

 Existing-home sales is a seasonally adjusted annual rate, which is the actual rate of sales for the month, multiplied by 12 and adjusted for seasonal sales differences. Pending home sales is an index that measures -housing contract activity. An index of 100 is equal to the level of activity during 2001, the benchmark year. Price indicates the national median. Inventory measures the number of existing homes on the market at the end of the month. Buyer and seller traffic, current conditions, six-month expectations, and time on market derive from a monthly REALTOR® Confidence Index. Results for August are based on 3,171 responses to 6,000 surveys sent to large and small real estate offices. The survey asks practitioners to indicate whether conditions are strong (100 points), moderate (50), or weak (0). Some data may be revised from previous issues.

Job Growth to Drive 2014 Housing Market

Job Growth to Drive 2014 Housing Market

Tapering Begins

The Fed announced they would be pulling back some of their stimulus package which has helped the housing market by keeping long term mortgage rates at historic lows for the last few years. This should come as no surprise as the KCM Blog has been warning of this likelihood over the last several months.
We even went against the belief of the vast majority of economists who thought the Fed would wait until next year. In this month’s edition of KCM, we quoted Bill McBride of Calculated Risk:
“Although the consensus is the Fed will wait until 2014 to start to taper asset purchases, December is still possible.”
We also gave our members the following grouping of slides to help them explain the ramifications of the Fed’s decision during meetings with buyers and sellers.

What it Means to the Consumer

In an article in MarketWatch today, Lawrence Yun, the Chief Economist at NAR, explained that sellers looking to move-up (to a better school district or larger home) “need to realize that it could be more challenging a year from now.” Yun stated the average 30-year mortgage rate currently hovers at 4.3%, but that could rise to 5% or 5.5% next year.

What it Does NOT Mean to the Housing Market

Some reports will now claim that housing prices will have to drop as interest rates begin to rise. There is no historical evidence of this. Below is a chart showing the last four instances of mortgage rates rising dramatically and what happened to home values at the time.

Bottom Line

If a client is either a first time buyer or a move-up buyer, they should make the move earlier in 2014 instead of later as mortgage rates will probably increase as the year goes on.

Household Formations Projected to Surge

 

Merry Christmas & Happy New Year

From Your Realtor:

Home Builders End the Year More Upbeat

Home Builders End the Year More Upbeat

Capital Region home sales up 3.6% in November

Home sales in the eight-parish Capital Region were up 3.6% in November compared to the same month last year, according to the latest monthly sales report from the Greater Baton Rouge Association of Realtors, released today. While the entire region tallied 20 more homes sold during November—for a total of 577—East Baton Rouge Parish recorded 52 fewer sales, or a decline of 15.2%. A total of 291 homes were sold in the parish last month. Livingston and Ascension parishes performed much better. The 119 sales recorded in Livingston represents a 38% increase over the 86 sold last November. In Ascension, sales in November totaled 108, a rise of 42% over the 76 sold during the month last year. Meanwhile, the average sales price in the Capital Region declined 3.7% in November to $197,848—down from $205,357 in November a year ago. The number of homes for sale in the eight-parish region dipped 5.2% on the month to 4,103; while pending sales rose 21% to 654. The months supply figure, or the number of months it would take to sell all of the homes for sale at the current sales pace, declined 15% to 5.7 months. Realtors generally view any reading under 6 months as reflective of a seller's market. Last November the months supply was 6.7.

Thinking about Buying a home or Selling your home?

Good News for Economy = Bad News for Rates

GOOD NEWS FOR THE ECONOMY = BAD NEWS FOR RATES

The economy is improving. As an example, the latest employment report showed that the unemployment rate hit a five-year low. We must realize that, as the economic news gets better, the government will consider whether or not to continue the programs they put in place to stimulate the economy. One such program is the Fed’s purchasing of assets which has led to historically low long-term mortgage rates.
Analysts at Capital Economics noted in a recent HousingWire article:

"The 203,000 increase in November's non-farm payrolls, along with the drop in the unemployment rate to a five-year low of 7.0%, gives the Fed all the evidence it needs to begin tapering its asset purchases at the next FOMC meeting later this month."
Whether such ‘tapering’ occurs this month or early next year is questionable. The fact that mortgage rates will spike when it does occur is more a guarantee.
Here are the thoughts of a few Fed presidents regarding whether it is in fact time to cut back on this stimulus program:

James Bullard, President of the Federal Reserve Bank of St. Louis
“To the extent that key labor market indicators continue to show cumulative improvement, the likelihood of tapering asset purchases will continue to rise. The Committee’s 2012 criterion of substantial improvement in labor markets gets easier and easier to satisfy on a cumulative basis as labor markets continue to heal…Based on labor market data alone, the probability of a reduction in the pace of asset purchases has increased.”

Richard Fisher, President of the Federal Reserve Bank of Dallas
“In my view, we at the Fed should begin tapering back our bond purchases at the earliest opportunity…I consider this strategy desirable on its own merit: I would feel more comfortable were we to remove ourselves as soon as possible from interfering with the normal price-setting functioning of financial markets.”

Jeffrey Lacker, President of the Federal Reserve Bank of Richmond
“I expect discussion about the possibility of reducing the pace of asset purchases. The key issue, in my view, is the extent to which the benefits of further monetary stimulus are likely to outweigh the costs.”

If you are thinking about purchasing a home, buying before the tapering will probably mean a lower mortgage interest rate than if you waited.

Call or text Christie Farris at 225-315-9003 or email me at Christiefarris@gmail.com 

5 TIPS TO SELL YOUR HOME FAST

5 TIPS TO SELL YOUR HOME FAST!

1. DE CLUTTER & NEUTRALIZE-It is imperative to remove all clutter from the home before showing it to potential buyers because buyers need to be able to picture themselves in the space. This might include removing some furniture to make rooms look bigger, and putting away family photographs and personal items. You may even want to hire a stager to help you make better use of the space. Staging costs can range from a couple hundred dollars for a basic consultation to several thousand dollars, particularly if you rent modern, neutral furniture for showing your home. 
    
2. STEP UP CURB APPEAL-  Many sellers often overlook the importance of their home's curb appeal. The first thing a buyer sees is a home. Try to make certain that the exterior has a fresh coat of paint, and that the bushes and lawn are well manicured.  It can also be as easy as adding a fresh layer of BLACK MULCH and a few Large potted plants near front door.  Black Mulch seems to be the most neutral color and really makes the landscape POP.           '
           
3. Make your home MOVE IN CONDITION-A home that shows well sells fast. I recommend fresh paint and new carpet. Typically homes that are in move in condition sell 30% faster then other homes on the market and closer to asking price. Many times these are the properties that also bring in multiple offers; thereby, the seller possibly sells for more then asking price. Make sure all known deficiencies are repaired prior to placing the home on the market as well.
   
   
4. PRICE YOUR PROPERTY ACCORDING to the MARKET- First you will need a Comparable Market Analysis provided by your Real Estate Expert. Focus on recent SOLD COMPS for pricing and not homes that are Active on the Market. Active properties are merely your current competition. Do not OVERPRICE simply because you HAVE TIME. This is a common mistake of sellers. Your most optimum time to get the most for your home is in the first 30 days on the market. Use the time to your advantage. If your home is on the market and is not being shown or if you receive feedback that you are priced too high, don't hesitate to adjust your price. Bad news, like spoiled milk, doesn't get better with time.
   
   
5. MAKE SURE YOUR HOME IS CLEAN AS A WHISTLE-From shining floors and gleaming windows to clean counters and scrubbed grout, every surface should sparkle. This is the easiest (well, maybe not easiest, but certainly the cheapest) way to help your home outshine the rest. You may want to hire pros to do some of the really tough stuff, especially if you have a large house. Don't skimp -- this step is key!
   
   Call Your Local Real Estate Professional
   CHRISTIE FARRIS
   225-315-9003
   CHRISTIEFARRIS@GMAIL.COM
    http://www.christiefarris.com
   
   

Selling Your Home During the Holidays? Now is the Time! Call Christie Farris 225-315-9003

Selling Your Home During the Holidays? 

Now is the Time! 

In today’s competitive real estate market, sometimes the standard, run-of-the-mill open houses aren’t yielding much success, and some sellers are choosing an alternative and effective method, that has been dubbed, “extreme open houses.”
With catered refreshments, prizes and entertainment, these events are causing quite a stir in the real estate world. By that, we mean that sellers are throwing elaborate parties in the guise of an open house, with hope that someone will buy their home. Some sellers hire local musicians and throw a fully catered party, equipped with champagne and expensive hors d’oeuvres. During the holidays, people are in a festive mood, and throwing a party is always a good idea to draw their attention.
The biggest advantage of an extreme open house is that potential buyers can see your home in a different light, giving you a chance to display some of your home’s attractive features. For example, if you are cooking food at your party, your guests can focus on your kitchen. Or, if you’re throwing a barbeque, you can get a chance to show off your favorite patio, drawing attention to some of your home’s best selling points.
Instead of showing a cold, empty home, you can attract potential buyers with a warm and vibrant home full of nice furnishings. Throwing a party in a warm and inviting home is a good idea even when you invite people who don’t intend to buy your home, since many of them will tell their friends about it.

Keep it simple

You don’t really need to throw an elaborate party to draw peoples’ attention, however, you can offer them some nice snacks and a glass of wine, giving them a chance to relax in the living room or the patio, and enjoy some of the comforts of your home. For starters, you can make a list of friends and acquaintances, and then send out some flyers with your contact information and a few facts about your home.

Are the holidays a good time to sell?

Although the holiday season isn’t really considered the best time to sell, the real estate market is much tighter, resulting in less competition for sellers. At the same time, motivated buyers are still in the market for homes, in hopes that they can make a purchase.
During the holidays, you can liven up your home with some lights and ornaments to attract buyers. Although you can make your home “shine” during the holidays, try not to overdo it. Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Too many ornaments could have a negative effect, and actually turn buyers away. Obviously, you don’t want to offend people, so be sure to go with tasteful decorations, as opposed to large and gaudy ones.
Also keep in mind that emotions play a big role in homebuyer purchases. A well organized home with a few tasteful decorations shows much better than a cluttered home with your kid’s toys lying around the living room. People will often purchase a home solely based on their gut feelings. If a buyer “falls in love” with your home, chances are they’re going to be more inclined to purchase it.
On a final note, it’s also a good idea to make it easy for people to stop by to see your home. In this case, flexibility is a key factor. People are busy during the holidays, and the chances of selling your home will be much greater if make it available for them to see.
Despite the fact that many people feel that the holidays aren’t a good time to buy or sell a home, this really isn’t the case. With a little knowledge and effort, you can sell your home in a timely manner, relax, and enjoy the Holidays!

Call Your Local Real Estate Professional
CHRISTIE FARRIS
225-315-9003
CHRISTIEFARRIS@GMAIL.COM
 http://www.christiefarris.com

Harvard: 5 Financial Reasons to Buy a Home

Eric Belsky is Managing Director of the Joint Center of Housing Studies at Harvard University. He also currently serves on the editorial board of the Journal of Housing Research and Housing Policy Debate. This year he released a new paper on homeownership - The Dream Lives On: the Future of Homeownership in America. In his paper, Belsky reveals five financial reasons people should consider buying a home.

Here are the five reasons, each followed by an excerpt from the study:

1.) Housing is typically the one leveraged investment available. 
“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.” 

2.) You're paying for housing whether you own or rent. 
“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3.) Owning is usually a form of “forced savings”.
“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4.) There are substantial tax benefits to owning. 
“Homeowners are able to deduct mortgage interest and property taxes from income...On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5.) Owning is a hedge against inflation.
“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom Line

We realize that homeownership makes sense for many Americans for many social and family reasons. It also makes sense financially.

Finding the Right Home for You - Christie Farris

In my experience, a home isn't a dream home because of its room dimensions. It's about how you feel when you walk through the front door, and the way you can instantly envision your life unfolding there.

This is about more than real estate - it‘s about your life and your dreams.

I understand you are looking for a new home, and I want to be the real estate professional to help you. I work with each of my clients individually, taking the time to understand their unique needs and lifestyle, and I want to do the same for you.

It's incredibly fulfilling to know I am helping my clients open a new chapter of their lives. That's why I work so hard to not only find that perfect home, but also to handle every last detail of the purchase process.

I am so excited to get started on finding you the perfect home.

Sincerely,
CHRISTIE FARRIS