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        <title>Real Estate Blog</title>
        <link>http://www.mysantacruzrealestate.com/blog/the-real-estate-report/</link>
        <description></description>
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            <guid>http://www.mysantacruzrealestate.com/blog/the-most-cost-effective-projects-for-santa-cruz-homes.html</guid>
            <link>http://www.mysantacruzrealestate.com/blog/the-most-cost-effective-projects-for-santa-cruz-homes.html</link>
            <author>lauren@laurenspencer.com (Lauren Spencer)</author>
            <title>The Most Cost-Effective Projects for Santa Cruz Homes</title>
            <description> <![CDATA[ 
According to Remodeling Magazines 2010-2011 Remodeling Cost vs. Value Report, nine out of the top 10 most cost-effective projects (based on value recouped) are exterior replacement projects.&nbsp; Here are the four most cost-effective exterior replacement projects:

1.&nbsp;Steel entry door replacement.&nbsp; This project returned the most money, with an estimated 102.1 percent of cost recouped when the Santa Cruz homes were resold.&nbsp; Its the only project in this years report that is expected to return more than the cost.&nbsp; 

2.&nbsp;Midrange garage door replacement.&nbsp; This is the first year this project ranked high enough to make it into the report.&nbsp; Its expected to recoup 89.9 percent of costs.&nbsp; According to the report, a &ldquo;midrange&rdquo; price for a garage door replacement is about $1,200.

3.&nbsp;Siding replacement.&nbsp; This project is expected to return more than 70 percent of costs.&nbsp;&nbsp; The most cost-effective siding project was upscale fiber-cement siding replacement, recouping 80 percent of costs. 

4.&nbsp;Window replacement.&nbsp; This project ranked the same as siding replacement with a return of more than 70 percent of costs.&nbsp;&nbsp; Covered, upscale vinyl window replacements were expected to recoup the most with a 72.6 percent return upon resale of Santa Cruz homes. 

According to the 2010-2011 Remodeling Cost vs. Value Report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal.

Since resale value can vary by region, it's smart for owners of Santa Cruz homes to work with a Santa Cruz real estate agent through the remodeling and improvement process.&nbsp; An agent can provide insight into projects in his or her neighborhoods that will recoup the most when the owners are ready to sell.

Want help identifying the improvement projects that will recoup the most value when you sell your home?&nbsp; Give me a call today at 831-662-6522 or email me at Laure@LaurenSpencer.com.

For more information, please visit my website at www.MySantaCruzRealEstate.com.

&nbsp;
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            <pubDate>Fri, 29 Apr 2011 23:01:00 -0700</pubDate>
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            <guid>http://www.mysantacruzrealestate.com/blog/santa-cruz-real-estate-lingo-101.html</guid>
            <link>http://www.mysantacruzrealestate.com/blog/santa-cruz-real-estate-lingo-101.html</link>
            <author>lauren@laurenspencer.com (Lauren Spencer)</author>
            <title>Santa Cruz Real Estate Lingo 101</title>
            <description> <![CDATA[ 
Do you know how closing costs actually work? Or, how youd use CMAs (comparative market analysis) to evaluate Santa Cruz real estate? And, can you decipher all of the abbreviations and acronyms, such as FDR, lo dues and MLS.

Purchasing a home is frustrating enough without having to go through the frustration of decoding all the complicated speak and legalese. If you brush up with a real estate dictionary before your home-buying search, youll gain valuable knowledge and save yourself a lot of time and headaches in the long run.

Basic lingo every Santa Cruz real estate buyer or seller should know &hellip;

&bull;&nbsp;ARM  This stands for Adjustable-Rate Mortgage, which is a type of mortgage where the interest rate periodically adjusts.

&bull;&nbsp;Closing costs  These are miscellaneous expenses buyers and sellers pay upon closing; they usually include brokerage commission, escrow taxes, recording fees, etc.

&bull;&nbsp;CMA  This stands for Comparable Market Analysis, which is a report of recently sold, comparable homes in the same market as the home youre selling.

&bull;&nbsp;ERV  Estimated Rental Value

&bull;&nbsp;FDR  Formal Dining Room

&bull;&nbsp;Fixture  Anything that is permanently attached to the home, such as door knobs, carpeting, light fixtures and landscaping

&bull;&nbsp;FP  Fireplace

&bull;&nbsp;HDW  Hard Wood Floors

&bull;&nbsp;Lo dues  Dues paid to the homeowners association

&bull;&nbsp;MLS  Multiple Listing Service, which is an organization that compiles multiple listings into one report and distributes it to all of their realty members.

&bull;&nbsp;PSF  Per Square Foot

&bull;&nbsp;Sale price  The actual price at which the property sells.

Dont let the hectic housing market overwhelm you.&nbsp; If you understand Santa Cruz real estate lingo, youll be more knowledgeable and able to easily achieve your real estate goals.

If you have questions about any of these terms or want help achieving your real estate goals, call me at 831-662-6522 or email me at Lauren@LaurenSpencer.com for more information.

For more information, please visit my website at www.MySantaCruzRealEstate.com.

Links:

Real Estate Dictionary

Adjustable-Rate Mortgage

Estimated rental value
 ]]> </description>
            <pubDate>Mon, 28 Mar 2011 23:01:00 -0700</pubDate>
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            <guid>http://www.mysantacruzrealestate.com/blog/where-can-i-find-xyz-on-the-santa-cruz-real-estate-market.html</guid>
            <link>http://www.mysantacruzrealestate.com/blog/where-can-i-find-xyz-on-the-santa-cruz-real-estate-market.html</link>
            <author>lauren@laurenspencer.com (Lauren Spencer)</author>
            <title>Where Can I Find XYZ On the Santa Cruz Real Estate Market?</title>
            <description> <![CDATA[ 
If youre like me and other real estate agents, home sellers, homebuyers and homeowners, youre always looking for a great resource for information on the Santa Cruz real estate market. You have questions and you want answers. 

&bull;&nbsp;What are the mortgages like in this area? &bull;&nbsp;What are the current selling prices for homes? &bull;&nbsp;Whats a specific neighborhood like?&bull;&nbsp;Is there anything besides the economy affecting the Santa Cruz real estate market?

For instance, you want to know current market trends. Are they stabilizing? Are things still sliding down hill? Is there a buying trend sellers can take advantage of to market their homes? While a professional real estate agent will help you sell or find a home, it doesnt hurt for you to do some research on your own to become more knowledgeable. Who knows, you may come up with some ideas we havent thought of!

So where can you find reliable information on the real estate market? On the Internet, there are thousands, perhaps millions, of informational sites. Below are just a few of my personal favorites:

CNNMoney.com (real estate)  The information on CNNMoney.com has no bias in terms of convincing you to sell or buy. Where are home prices falling? Where are they strongest? What information do you need to know as a buyer or seller? From mortgages to pricing and market stability, you can find it here.

RISMedia.com  If you cant find it on CNNMoney, you can most likely find it on RISMedia. Home improvement, financing and foreclosure information are just a few of the topics. As well, because RISMedia is actually involved in real estate, you can find the latest market information.

DQNews.com  DataQuick provides real estate data on a state-by-state basis or on a specific area. While the information can be a little technical for the non-real-estate-professional, if you want to know how the Las Vegas region is doing for home sales, or the average mortgage rates in Missouri, DQ can help. Depending on your area, you may have to pay for the data, but its fairly inexpensive and can give you great information.

If youre interested in the Santa Cruz real estate market in any way, bookmark this blog and the listed sites for easy reference. The more you know, the better you can prepare for upcoming trends, good or bad!

If youre trying to sell your home, or are looking for your dream home to buy, I can help. Call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.

&nbsp;

Links:

CNNMoney.com (real estate)

Rismedia.com

DQNews.com

&nbsp;
 ]]> </description>
            <pubDate>Wed, 21 Apr 2010 23:01:00 -0700</pubDate>
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            <guid>http://www.mysantacruzrealestate.com/blog/before-painting-your-santa-cruz-home-for-sale.html</guid>
            <link>http://www.mysantacruzrealestate.com/blog/before-painting-your-santa-cruz-home-for-sale.html</link>
            <author>lauren@laurenspencer.com (Lauren Spencer)</author>
            <title>Before Painting Your Santa Cruz Home For Sale</title>
            <description> <![CDATA[ 
Nothing makes a Santa Cruz home for sale look better than a new coat of paint.&nbsp; Many people are intimidated by the thought of painting the exterior of their home, and hire someone else to do it.&nbsp; But, you can do it yourself, with these easy steps:&nbsp;Getting Your House Ready to PaintThe first thing that youll need to do is inspect the house.&nbsp; Look at all the walls, under the eaves and around the doorframe and windows.&nbsp; Check for peeling paint, mildew and rough surfaces. Youll need to gather a few tools before getting to the repairs and putting your Santa Cruz home up for sale:

&bull;&nbsp;Power-washer&bull;&nbsp;2-3&rdquo; inch putty knife&bull;&nbsp;2-3&rdquo; inch pull scraper&bull;&nbsp;Wire brush&bull;&nbsp;Sander&nbsp;&bull;&nbsp;Chlorine bleach

Preparing the SurfacePower-wash the walls so you'll have a clean surface.&nbsp; You dont need to use detergents; plain ol water works the best.

The putty knife and the wire brush remove problems where paint has peeled, blistered or wrinkled.&nbsp; Avoid gouging the surface by holding the putty knife perpendicular to the wall and using moderate force.&nbsp; 

The pull scraper is for areas that wont easily come clean.&nbsp; Its used the same way as the putty knife, but it has a sharp blade attached that quickly gets through old paint.&nbsp; The walls will need to be sanded smooth after you finish this step.

For small spots, a piece of sandpaper wrapped around a sanding block works just fine.&nbsp; An electric sander is best for large areas; it'll save you time and energy.

Removing MildewMildew is a dark patch of fungus, like a dirty spot, often found on a damp, shady spot in your house.&nbsp; If you arent sure it's mildew, put a few drops of chlorine bleach on it.&nbsp; If the spot fades away, you know you have a mildew problem.

Mildew shows through new paint, so youll need to get rid of it before you start painting.&nbsp; A simple mix of chlorine bleach will kill it quickly.

All you have to do now is pick out a paint color and wait for the right weather to paint.&nbsp; Soon youll be ready to put up your Santa Cruz home for sale.&nbsp; 

If you're thinking of selling your home, I can help.&nbsp; Call me today at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.

Links:

Painting the exterior of their home:&nbsp; 

Mildew

Power-wash:
 ]]> </description>
            <pubDate>Sat, 06 Mar 2010 23:01:00 -0800</pubDate>
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            <guid>http://www.mysantacruzrealestate.com/blog/santa-cruz-home-for-sale-are-you-obsessing.html</guid>
            <link>http://www.mysantacruzrealestate.com/blog/santa-cruz-home-for-sale-are-you-obsessing.html</link>
            <author>lauren@laurenspencer.com (Lauren Spencer)</author>
            <title>Santa Cruz Home for Sale – Are You Obsessing?</title>
            <description> <![CDATA[ 
&nbsp;The national real estate market, state markets and city markets all seemed to be wrapped up in a nifty bundle that effect whether your Santa Cruz home for sale will have a buyer. With the news reports over the last two years about the pop of the housing bubble, homeowners everywhere essentially lost their minds.

Here are a few examples:

&bull;&nbsp;Some homeowners panicked and immediately put their houses up for sale&bull;&nbsp;Some homeowners chose to walk away from it all, leaving their homes vacant and mortgages in default&bull;&nbsp;Some homeowners went into a flurry of home renovations, with the idea of selling&bull;&nbsp;National and Santa Cruz home for sale listings shot through the roof

The amazing thing isnt that the real estate market seems to be stabilizing  thats not the miracle. The miracle is that we still even have a real estate market at all.

Obsessing Over the SaleThis year opened up with a lot of homes on the market, but it also opened with a lot of sellers digging into real estate news. Theyve started obsessing; theyve started pouring over online real estate digests, articles and blogs. In fact, the traffic for this site alone has jumped tremendously.

While its understandable that you, as the seller, want to know what your chances are for selling your home, obsessing is bad for business. Especially if youre dealing with potential buyers in person, your eagerness to sell can show in very bad ways. You might end up selling the home for way less than you could have - or you might not sell your home at all if they sense desperation.

If youre obsessing over whether your home will sell or not, stop. Take a deep breath. Relax. Even if youre in a hurry, taking a short break from worry can help clear your mind and leave it open for better ideas.

It may be hard to remember sometimes, and giving trust is always difficult, but thats what were here for. You hired your real estate agent to take care of your Santa Cruz home for sale and get it off the market. We do the research on the market and we have the experience.&nbsp; In other words, we do the worrying for you!

If youd like to sell your home, I can help. Call me at&nbsp;831.662.6522 or email me at&nbsp;Lauren@LaurenSpencer.com for more information.

Homeowners chose to walk away

A lot of homes on the market

Taking a short break from worry
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            <pubDate>Thu, 04 Mar 2010 23:01:00 -0800</pubDate>
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            <guid>http://www.mysantacruzrealestate.com/blog/a-sellers-market.html</guid>
            <link>http://www.mysantacruzrealestate.com/blog/a-sellers-market.html</link>
            <author>lauren@laurenspencer.com (Lauren Spencer)</author>
            <title>A Seller's Market?</title>
            <description> <![CDATA[ 
A Sellers Market? Hard to believe, but many homes drawing multiple offers again as listing shortages continue

My how things have changed in just one year! A year ago at this time, many homes were languishing on the market as buyers stayed on the sidelines, worrying about their jobs, the sharp decline in their 401k accounts, and whether housing prices would ever rise again. Today, many of those buyers have swallowed their fears and are out in force once again, spurred by an improving economy, a solid recovery in the financial markets, and federal home buyer tax credits that will expire this spring.

While no one claims the housing market is out of the woods yet, an unusual dynamic is occurring in many communities around the Bay Area:&nbsp; Despite the choppy housing market, there is an army of confident, well-qualified buyers out searching for homes, but many sellers are now sitting on the sidelines! One listing in San Franciscos Outer Mission neighborhood priced in the mid-$500,000 drew more than 100 groups during a two hour open house during the past holiday weekend.

Inventory shortages continue to be the challenge in many areas.&nbsp; In Santa Clara County and the East Bay, for example, the number of homes for sale is standing at half of what it was a year ago! This has resulted in as many as half of the listings on the market attracting multiple offers as buyers fight it out for the best properties.

This conundrum has resulted in prices rising even as sales are falling.&nbsp; DataQuick, the La Jolla-based research firm, reported that the median sale price of homes and condos in the Bay Area shot up almost 17 percent year over year in January while sales dipped 4 percent. The biggest jump in the median price was 18.3 percent in San Mateo, but all counties (except Napa) saw strong increases.&nbsp; (see chart below) The upper end of the market is particularly sensitive to this trend, as illustrated by Santa Clara County, which saw sales of million-dollar homes half of what they were a year ago even as prices rose 4 percent, according to Coldwell Banker Residential Brokerages luxury market report.

Santa Cruz County: There are many multiple offers on homes under $700,000 and REO properties and short sales. REOs and short sales continue to have a very strong influence in sales, pricing, and overall market activity.&nbsp; There seems to be a lot of anxious buyers waiting on the sidelines for the right property to appear.&nbsp; Buyers seem to acknowledge with some positive economic news that it is an optimum time to purchase  maybe the most optimal time ever.&nbsp; Inventory still continues to be an issue, although as we move toward spring and warmer weather we are seeing more homes coming on the market.

If youre looking for a great deal on an even better home, let me negotiate for you. Call me at 831.662.6522 or email me at Lauren@LaurenSpecer.com for more information.
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            <pubDate>Thu, 25 Feb 2010 23:01:00 -0800</pubDate>
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            <guid>http://www.mysantacruzrealestate.com/blog/days-of-inventory.html</guid>
            <link>http://www.mysantacruzrealestate.com/blog/days-of-inventory.html</link>
            <author>lauren@laurenspencer.com (Lauren Spencer)</author>
            <title>Days of Inventory</title>
            <description> <![CDATA[  ]]> </description>
            <pubDate>Thu, 04 Feb 2010 14:38:46 -0800</pubDate>
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            <guid>http://www.mysantacruzrealestate.com/blog/market-trend-report-for-december-2009.html</guid>
            <link>http://www.mysantacruzrealestate.com/blog/market-trend-report-for-december-2009.html</link>
            <author>lauren@laurenspencer.com (Lauren Spencer)</author>
            <title>Market Trend Report for December 2009</title>
            <description> <![CDATA[ 

&nbsp;Trends At a Glance

Dec 2009

Previous Month

Year-over Year

Median&nbsp;Price

$560,000

$550,000&nbsp;(+1.8%)

$450,000&nbsp;(+24.4%)

Average&nbsp;Price

$607,159

$626,278&nbsp;(-3.1%)

$527,657&nbsp;(+15.1%)

No.&nbsp;of&nbsp;Sales

144

141&nbsp;(+2.1%)

117&nbsp;(+23.1%)

Pending Properties

221

286&nbsp;(-22.7%)

154&nbsp;(+43.5%)

Active

467

553&nbsp;(-15.6%)

974&nbsp;(-52.1%)

Sale&nbsp;vs.&nbsp;List&nbsp;Price

98.1%

97.4%&nbsp;(+0.7%)

96.3%&nbsp;(+1.9%)

Days&nbsp;on&nbsp;Market

78

83&nbsp;(-6.0%)

74&nbsp;(+4.6%)

&nbsp; 

Median Home Price Ends Year at Highest Level Since August 2008



The median price of single-family, re-sale homes in Santa Cruz County reached $560,000 in December, a gain of 24.4% compared to December 2008.Home sales were up 23.1% year-over-year.We expect sales to be strong through the Spring selling season because of the extension, and expansion, of the first-time home buyers tax credit of $8,000 for buying a principal residence. First-time buyer is a buyer who has not owned a principal residence in the three-year period prior to the purchase. There are some income limits. For full information, see: http://federalhousingtaxcredit.com.In addition, the tax credit was expanded to include move-up buyers. The tax credit for move-up buyers is $6,500.&nbsp; A move-up buyer is a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date. Again, for full info, see the web site cited above.P.S. The tax credit expires April 30th. You need to have a signed contract by then and close the sale within 60 days to qualify for the credit.

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            <pubDate>Thu, 04 Feb 2010 14:36:15 -0800</pubDate>
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            <guid>http://www.mysantacruzrealestate.com/blog/2010-forecasts-for-national-and-santa-cruz-real-estate-are-in.html</guid>
            <link>http://www.mysantacruzrealestate.com/blog/2010-forecasts-for-national-and-santa-cruz-real-estate-are-in.html</link>
            <author>lauren@laurenspencer.com (Lauren Spencer)</author>
            <title>2010 Forecasts for National and Santa Cruz Real Estate Are In!</title>
            <description> <![CDATA[ 
From national and Santa Cruz real estate to the U.S. economy, the predictions for 2010 are in.&nbsp; Like any predictions, they vary from somewhat bright and cheery to doom and gloom:

CNBCs Realty Check predicts:&bull;&nbsp;the beginning of a housing market recovery mid-year&bull;&nbsp;higher foreclosure inventory&bull;&nbsp;rising mortgage rates, probably leveling off around six percent.&bull;&nbsp;suffering commercial real estate

The National Association of REALTORS (NAR) chief economist is projecting:&bull;&nbsp;A sustainable recovery.&nbsp; The tax credit expansion will help to relieve extra housing supply through mid-2010.&bull;&nbsp;A rise in existing home sales.&nbsp; The NAR is expecting existing home sales to rise as high as 5.69 million, even with continuing unemployment issues.&nbsp; That's a 13.6 percent increase.

In fact, the U.S. forecasts for national and Santa Cruz real estate are overall positive for 2010. 

Housing Predictor, one of the first places to predict the wave of foreclosures, also forecasts positive numbers for 2010.&nbsp; They anticipate rising home sales, market improvement and even value appreciation for some places. Again, the magic period for the start of stabilization is the middle of the year.

Although no one knows for certain what will happen in the future - especially for such struggling sectors as national and Santa Cruz real estate - we can all gain a little hope from the 2010 forecasts. There is one thing that is fairly well agreed upon according to these predictions:&nbsp; there will be a real estate recovery in 2010.

If youre struggling to sell your home, I can help. Call me at 831.662.6522 or email me at lauren@laurenspencer.com for more information.

&nbsp;

Links:

Realty Check

Existing home sales

Housing Predictor
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            <pubDate>Thu, 07 Jan 2010 09:19:00 -0800</pubDate>
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            <guid>http://www.mysantacruzrealestate.com/blog/pending-home-sales-on-a-record-roll.html</guid>
            <link>http://www.mysantacruzrealestate.com/blog/pending-home-sales-on-a-record-roll.html</link>
            <author>lauren@laurenspencer.com (Lauren Spencer)</author>
            <title>Pending Home Sales on a Record Roll</title>
            <description> <![CDATA[ 
Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. &nbsp;The index is at the highest level since June 2007 when it was 100.7.

Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. &nbsp;&ldquo;The recovery is broad-based across many parts of the country. &nbsp;Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,&rdquo; he said.

&ldquo;Other buyers are taking advantage of low home values before prices turn higher. &nbsp;Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income familys monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. &nbsp;As long as home buyers stay within their budget, mortgage payments will be very manageable,&rdquo; Yun said.

NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. &nbsp;Buyers have little time to act because they must complete the transaction by November 30 to qualify for the credit. &nbsp;Unless extended, contracts signed but not completed by that date will not be eligible  it is taking approximately two months to complete home sales in the current market.

The Pending Home Sales Index in the Northeast declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008. &nbsp;In the Midwest the index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago. &nbsp;In the South, pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008. &nbsp;In the West the index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said Congress needs to keep the momentum going. &nbsp;&ldquo;Even with a good recovery taking place, the market is not yet back to normal. &nbsp;With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,&rdquo; he said.

&ldquo;To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, were encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. &nbsp;The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy,&rdquo; McMillan said.

NARs Housing Affordability Index stood at 158.5 in July, below the peak set in April but is still 36.0 percentage points higher than a year ago. &nbsp;The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.









Yun expects existing-home sales to rise through the fourth quarter. &nbsp;&ldquo;Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,&rdquo; he said. &nbsp;&ldquo;However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. &nbsp;The buyer psychology may be shifting from, &lsquo;Why buy now when I can purchase later, to &lsquo;I dont want to miss out on a recovery.&rdquo;



Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. &nbsp;The index is at the highest level since June 2007 when it was 100.7.

Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. &nbsp;&ldquo;The recovery is broad-based across many parts of the country. &nbsp;Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,&rdquo; he said.

&ldquo;Other buyers are taking advantage of low home values before prices turn higher. &nbsp;Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income familys monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. &nbsp;As long as home buyers stay within their budget, mortgage payments will be very manageable,&rdquo; Yun said.

NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. &nbsp;Buyers have little time to act because they must complete the transaction by November 30 to qualify for the credit. &nbsp;Unless extended, contracts signed but not completed by that date will not be eligible  it is taking approximately two months to complete home sales in the current market.

The Pending Home Sales Index in the Northeast declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008. &nbsp;In the Midwest the index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago. &nbsp;In the South, pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008. &nbsp;In the West the index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said Congress needs to keep the momentum going. &nbsp;&ldquo;Even with a good recovery taking place, the market is not yet back to normal. &nbsp;With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,&rdquo; he said.

&ldquo;To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, were encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. &nbsp;The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy,&rdquo; McMillan said.

NARs Housing Affordability Index stood at 158.5 in July, below the peak set in April but is still 36.0 percentage points higher than a year ago. &nbsp;The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.

Yun expects existing-home sales to rise through the fourth quarter. &nbsp;&ldquo;Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,&rdquo; he said. &nbsp;&ldquo;However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010. &nbsp;The buyer psychology may be shifting from, &lsquo;Why buy now when I can purchase later, to &lsquo;I dont want to miss out on a recovery.&rdquo;
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            <pubDate>Thu, 24 Sep 2009 12:34:10 -0700</pubDate>
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