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Feb. 25, 2013

Fannie Mae: Housing is 'on a sustained growth path'

Fannie Mae: Housing is 'on a sustained growth path'

2013 purchase loan originations projected to rise nearly 19 percent

Inman News®

<a href="http://www.shutterstock.com/pic.mhtml?id=25775134" target="_blank">Sunny housing outlook</a> image via Shutterstock.Sunny housing outlook image via Shutterstock.

While impending fiscal cuts at the federal level will likely put a damper on economic growth in the first half of this year, home-price growth and an increase in homebuilding suggest housing is "on a sustained growth path," according to a monthly economic outlook released today by Fannie Mae's Economic & Strategic Research Group.

The lowest number of homes for sale since December 1994, a rising share of short sales compared to foreclosures, and fewer distressed properties overall have helped push up home prices from a bottom reached in early 2012, Fannie Mae said.

"One of the key developments for the housing market last year was the general consensus that home prices, on a national basis, bottomed earlier in the year and continued to build momentum, exhibiting robust year-over-year gains unseen since the housing boom," the report said.

"While prices usually weaken in the winter months, the CoreLogic house price index (non-seasonally adjusted) defied seasonal weakness, rising 0.4 percent in December from November, and 8.3 percent from last year -- the biggest gain since May 2006."

Fannie Mae economists said the housing recovery is "broadening" and "durable."

"Housing underpinned the broader economy in 2012, particularly the pickup in construction," the report said.


<a href="http://www.shutterstock.com/pic.mhtml?id=25775134" target="_blank">Sunny housing outlook</a> image via Shutterstock.Sunny housing outlook image via Shutterstock.

While impending fiscal cuts at the federal level will likely put a damper on economic growth in the first half of this year, home-price growth and an increase in homebuilding suggest housing is "on a sustained growth path," according to a monthly economic outlook released today by Fannie Mae's Economic & Strategic Research Group.

The lowest number of homes for sale since December 1994, a rising share of short sales compared to foreclosures, and fewer distressed properties overall have helped push up home prices from a bottom reached in early 2012, Fannie Mae said.

"One of the key developments for the housing market last year was the general consensus that home prices, on a national basis, bottomed earlier in the year and continued to build momentum, exhibiting robust year-over-year gains unseen since the housing boom," the report said.

"While prices usually weaken in the winter months, the CoreLogic house price index (non-seasonally adjusted) defied seasonal weakness, rising 0.4 percent in December from November, and 8.3 percent from last year -- the biggest gain since May 2006."

Fannie Mae economists said the housing recovery is "broadening" and "durable."

"Housing underpinned the broader economy in 2012, particularly the pickup in construction," the report said.

Aside from the month-to-month volatility in new- and existing-home sales and building permits, "all housing indicators performed quite well in 2012 compared with 2011, and housing fundamentals suggest a continuing solid housing recovery this year" despite continued tight credit availability and an increase in the mortgage insurance premium for loans insured by the Federal Housing Administration (FHA), the report added.

Housing should help offset some economic headwinds in the first half of the year, the report said, including tax increases and government spending cuts known as "sequestration" that Fannie Mae economists anticipate will go into partial, not full, effect but will nonetheless amount to a 0.2 percent drag on economic growth for the year.

Fannie Mae economists projected the median price of an existing home would rise 2.3 percent on an annual basis in 2013, to $181,000. They expected the median price of a new home to increase 1.6 percent, to $248,000. Fannie Mae anticipates that median prices of both new and existing homes will rise an additional 2.8 percent in 2014.

Existing-home sales, new-home sales and single-family housing starts are expected to see substantial increases from 2012. Fannie Mae predicts each will rise 11.5 percent, 12.5 percent and 23.7 percent, respectively, in 2013 compared to 2012. The mortgage giant expects further improvement next year with increases of 5.5 percent, 47.5 percent and 32.3 percent, respectively.

After falling to record lows in 2012, mortgage rates are expected to rise slightly this year. Rates for a 30-year fixed-rate mortgage are projected to average 3.8 percent this year and rise even further to 4.4 percent in 2014. Fannie Mae had previously forecast a decrease in mortgage rates this year, but the expected possibility of an early end to the Federal Reserve's efforts to keep a lid on interest rates has pushed up interest rates, economists said.

Mortgage originations are expected to drop 21.7 percent this year to $1.51 trillion and decline by 25.9 percent in 2014, largely due to fewer refinance loans.

Purchase loans are projected to rise by 18.5 percent this year to $628 billion -- up from a forecast of $530 billion -- and rise to $731 billion in 2014 due to expected continued improvements in housing starts, home sales and home prices, Fannie Mae said.

Refinance loans, on the other hand, are expected to fall 36.9 percent to $880 billion and sink even further in 2014, 56.1 percent, to $386 billion due to rising mortgage rates.

Fannie Mae anticipates refinancings will drop to 58 percent of mortgage originations this year, down from 72 percent in 2012, and fall to 35 percent in 2014. The forecast assumes the government's Home Affordable Refinance Program (HARP) expires at the end of 2013 as scheduled.

The mortgage giant anticipates an average 7.8 percent unemployment rate this year, followed by an average 7.4 percent rate in 2014.

While real gross domestic product fell 0.1 percent in the fourth quarter and ended 2012 at 1.5 percent, Fannie Mae economists predict 2 percent growth this year followed by 2.6 percent growth in 2014.

Feb. 25, 2013

-With Our Busy Schedules Sometimes We Forget About Those That Are Close To Us-

SON: "Daddy, may I ask you a question?"
DAD: "Yeah sure, what is it?"
SON: "Daddy, how much do you make an hour?"
DAD: "That's none of your business. Why do you ask such a thing?"
SON: "I just want to know. Please tell me, how much do you make an hour?"
DAD: "If you must know, I make $100 an hour."
SON: "Oh! (With his head down).
SON: "Daddy, may I please borrow $50?"
The father was furious.
DAD: "If the only reason you asked that is so you can borrow some money to buy a silly toy or some other nonsense, then you march yourself straight to your room and go to bed. Think about why you are being so selfish. I work hard everyday for such this childish behavior."

The little boy quietly went to his room and shut the door.
The man sat down and started to get even angrier about the little boy's questions. How dare he ask such questions only to get some money?
After about an hour or so, the man had calmed down, and started to think:
Maybe there was something he really needed to buy with that $ 50 and he really didn't ask for money very often. The man went to the door of the little boy's room and opened the door.

DAD: "Are you asleep, son?"

SON: "No daddy, I'm awake".
DAD: "I've been thinking, maybe I was too hard on you earlier. It's been a long day and I took out my aggravation on you. Here's the $50 you asked for."

The little boy sat straight up, smiling.
SON: "Oh, thank you daddy!"
Then, reaching under his pillow he pulled out some crumpled up bills. The man saw that the boy already had money, started to get angry again. The little boy slowly counted out his money, and then looked up at his father.

DAD: "Why do you want more money if you already have some?"

SON: "Because I didn't have enough, but now I do.

"Daddy, I have $100 now. Can I buy an hour of your time? Please come home early tomorrow. I would like to have dinner with you."
The father was crushed. He put his arms around his little son, and he begged for his forgiveness. It's just a short reminder to all of you working so hard in life. We should not let time slip through our fingers without having spent some time with those who really matter to us, those close to our hearts. Do remember to share that $100 worth of your time with someone you love? If we die tomorrow, the company that we are working for could easily replace us in a matter of days. But the family and friends we leave behind will feel the loss for the rest of their lives. And come to think of it, we pour ourselves more into work than to our family.

Some things are more important.

>>>> Please Click A "LIKE" button  and Share It. Is a wake up call to all fathers out there
SON: "Daddy, may I ask you a question?"
DAD: "Yeah sure, what is it?"
SON: "Daddy, how much do you make an hour?"
DAD: "That's none of your business. Why do you ask such a thing?"
SON: "I just want to know. Please tell me, how much do you make an hour?"
DAD: "If you must know, I make $100 an hour."
SON: "Oh! (With his head down).
SON: "Daddy, may I please borrow $50?"
The father was furious.
DAD: "If the only reason you asked that is so you can borrow some money to buy a silly toy or some other nonsense, then you march yourself straight to your room and go to bed. Think about why you are being so selfish. I work hard everyday for such this childish behavior."

The little boy quietly went to his room and shut the door.
The man sat down and started to get even angrier about the little boy's questions. How dare he ask such questions only to get some money?
After about an hour or so, the man had calmed down, and started to think:
Maybe there was something he really needed to buy with that $ 50 and he really didn't ask for money very often. The man went to the door of the little boy's room and opened the door.

DAD: "Are you asleep, son?"

SON: "No daddy, I'm awake".
DAD: "I've been thinking, maybe I was too hard on you earlier. It's been a long day and I took out my aggravation on you. Here's the $50 you asked for."

The little boy sat straight up, smiling.
SON: "Oh, thank you daddy!"
Then, reaching under his pillow he pulled out some crumpled up bills. The man saw that the boy already had money, started to get angry again. The little boy slowly counted out his money, and then looked up at his father.

DAD: "Why do you want more money if you already have some?"

SON: "Because I didn't have enough, but now I do.

"Daddy, I have $100 now. Can I buy an hour of your time? Please come home early tomorrow. I would like to have dinner with you."
The father was crushed. He put his arms around his little son, and he begged for his forgiveness. It's just a short reminder to all of you working so hard in life. We should not let time slip through our fingers without having spent some time with those who really matter to us, those close to our hearts. Do remember to share that $100 worth of your time with someone you love? If we die tomorrow, the company that we are working for could easily replace us in a matter of days. But the family and friends we leave behind will feel the loss for the rest of their lives. And come to think of it, we pour ourselves more into work than to our family.

Some things are more important.


Posted in motivation
Feb. 22, 2013

The pix that get the clicks; As more buyers go online, inviting photos make all the difference.

The pix that get the clicks; As more buyers go online, inviting photos make all the difference.

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Written by Ann Brenoff, Los Angeles Times   

Beautiful open space: wooden table with flowers, column, and a nice living roomA picture may be worth a mere 1,000 words in other circles, but in real estate, it enters the realm of deal or no deal.

With an estimated 90% of home buyers starting their search on the Internet, photos are to home sales today what curb appeal used to be: the place where first impressions are made. 

According to a National Assn. of Realtors survey of the Web features that buyers found "very useful," 83% mentioned photos, 81% liked detailed property information and 60% named virtual tours.

Every day, decisions about which homes to see -- and which to skip -- are made based on what a buyer sees online.

"If you can't get them in the door," said Coldwell Banker agent Kenny Bellini of Santa Monica, "you can't sell the house."

Bellini and his wife, Izumi Tanaka, generally shoot their listing photos themselves, as do many other realty agents. And, as he is quick to admit, photography skills aren't part of an agent's training -- even though posting quality photos on the Web has now become one of the services an agent must offer clients to stay competitive.

Increasingly, agents and sellers are turning to professional photographers to do what they themselves cannot: Take those jaw-dropping glamour shots even when the home isn't a mansion or an architectural gem. When a professional photographer is brought in, it's most often the realty agent who pays for the service as part of the marketing plan.

The rates in Los Angeles start at about $350 and can climb steeply depending on whom you hire, how many photos are shot and whether the photographer sets up an exclusive domain website for the home.

Is there any way to get better photos, short of hiring a pro?

For an answer to that question, The Times asked three of Los Angeles' top high-end real estate photog-raphers for tips on how home sellers and listing agents could improve their own photos.

Santa Monica-based Nick Springett has more than 20 years' experience shooting listings up to $70 mil-lion. His work has appeared on the covers of Unique Homes and Leading Estates of the World magazines. Among his suggestions:

* Make the room look inviting. Set the dining room table with fresh flowers, complete place settings and ironed linens.

* Leave no detail unattended. Tape the folds of the dining room tablecloth so it doesn't pucker out. Posi-tion chairs uniformly (about 1 foot) from the table's edge.

* When possible, use the chandelier above the table to create a warmer glow.

* Strive for even lighting. Professionals use strobe lights to brighten the dark spots. One of the mistakes that amateur photographers make is to shut all the blinds and turn on every artificial light in the room. This creates "halos" around each lamp. Don't shoot when sunlight is streaming in from the windows. And use the flash on the camera to even things out.

* Emphasize desirable features such as fireplaces and views. De-emphasize less-desirable features such as the closeness of the house next door.

* Bring in more furniture from other rooms to avoid blank holes in the photo. Make a room look homey. Arrange books and/or magazines on the coffee table with the colorful ones on top.

* Don't ignore the background. Remove all electrical cords from view, tidy up bookcases, fluff couch pil-lows. Flip the cushion over if Fido has been there, or use a throw to cover the stain.

* Wet down the brick patio and concrete pool surround to avoid it being too bright in the photo. Wetting it down also brings out the rich color in the brick.

* Remove all clutter. Also remove all personal photos. The goal is to have potential buyers envision themselves living in your house; your family's photos interfere with that process.

* In staging a room, group similar objects together rather than leaving them scattered. Arrange books based on their size and jacket colors, not literary content; a home buyer won't be analyzing your reading hab-its. Candles, flowers and coffee table art books all add character to a room and are inexpensive ways to decorate. Light the fireplace to make the room look warm and inviting.

* Shooting a pool presents special challenges because of the reflective nature of the water. Use a flash and try your shot in late afternoon or early morning.

* Consider using a software program such as Photoshop to touch things up. Springett sometimes uses it as a way to eliminate telephone and electric wires.

Ditto for punching up colors and obscuring some less de-sirable elements.

Everett Fenton Gidley, Santa Monica -- who by his estimate has shot more than $3 billion in real estate -- adds these ideas:

* If there's no furniture, get some. Empty houses lack soul.

* De-clutter. Remove all personal effects, especially whatever is hanging on the refrigerator.

* Underexpose rather than overexpose.

* Adobe Photoshop Elements 5.0 is a good software program for nonprofessionals. It allows color and lighting adjustments and for flaws to be fixed easily. It costs about $100. Agents, who will be using it more often, might want to invest in Adobe Photoshop, which costs about $600.

Altadena-based Chris Considine, who has shot historical homes and bungalows for the last nine years, has these recommendations:

* Use a tripod. It provides steadiness and allows you to operate your digital camera's controls -- specifi-cally, shooting interiors at a slower speed.

* Move excess furniture out of the way. You don't want to be shooting directly into the backs of chairs.

* Don't be afraid of the shade. Gardens look richer when they aren't shot in the blazing sun.

All of this leaves homeowners who are screening potential listing agents with a new question to ponder: How will the agent handle photographing their home and presenting it on the Web?

The question is music to the ears of Topanga Pritchett-Rapf agent Gary Harryman, who knows his way around a camera and has an Internet-savvy wife, Mariline. His easy-to-navigate website is filled with dozens of high-quality photos of his listings.
"Mariline and I realized the value and the increasing importance of the Internet years ago, and adjusted our marketing accordingly," Harryman said.

Harryman has had a lifelong interest in photography -- he had his first darkroom when he was 10 years old -- and has a master's degree in sculpture. "I see every house as a work of art -- specifically, a sculpture. And I try to exhibit it on our website in as flattering a light as a curator does a sculpture exhibition in a museum or gallery," he said.

His wife, who is also a real estate agent, keeps their website up-to-date. It's not unusual for her to make changes to it several times a day.

"She is constantly updating and improving. If I get a new photograph with different light and a better angle, she will immediately put it up on our website," Harryman said.

The effort has paid off: The Harrymans sold more than $10 million in properties in the first quarter of this year.
"It's the website," he said.

Interior designer Hillary Hayne listed her 4,680-square-foot Topanga home at $3,495,000 with him two weeks ago, after having seen his website.

"It's easy to navigate and is a great source of information," she said. "Plus, he's just passionate about his photos."

Harryman spent hours shooting her home, and the results show, Hayne said.

One feature of Harryman's website is the full-screen slide show. The consensus is that Web viewers won't stay with a site if they have to open and close each photo by clicking on it.

"You have to make it easy or they'll quit on you," photographer Gidley said. "It's a great tool."

Who should take the photos for a home listing remains an individual decision, but this anonymous quote offers some words of wisdom:

"Buying a Nikon doesn't make you a photographer. It makes you a Nikon owner."

via Los Angeles Times
Syndicated with permission.

Feb. 22, 2013

Omaha Home Prices & Market Data

Omaha Home Prices & Market Data - Omaha Nebraska, January 2013 

Omaha Home Prices
We have seen a steady decrease in the number of homes for sale in the Omaha area for the past year. The Active Homes for Sale in Omaha as of January 2013 was 3652, down 575 from a year ago.  The active homes for sale in January increased slightly. The big change was there were considerly less homes sold than in the previous month.  So while we've been consistently at a 4-5 month inventory of homes on the market in Omaha since May 2012, that number increased in January to 6.43 percent.  

Here is a snapshot of the Omaha Real Estate Market.  For those of you who just want the market data for Omaha, Nebraska,  Click here to go right to the Market Data for additional information.

Average Home Sale Price: $162,335
The average sale price in Omaha is up 12% compared to this time last year. 

 Average Home List Price: $166,323
The avage list price is up 11% compared to this time last year.

 Average Days on Market: 104

 

Omaha Home Sellers
The overall decrease in the inventory of homes has created a seller's market, which occurs when there are more buyers than homes for sale.  In the Omaha seller's market, multiple offers are being submitted on homes for sale resulting in sellers negotiating better price and terms, including some buyer's paying more than list price. Home sellers need to be cautious when accepting offers above list price, particularly when the buyer is financing their mortgage.  Appraisals are based on the last six months of home sales and since the market is now turning upward, it's important to make sure the appraiser considers that in their valuation.  So yes, get excited about multiple offers but make sure you discuss potential appraisal issues with your real estate professional so you can make the best decision for you and your family. 

Buyer closing costs (seller concessions) are still being paid by Omaha Home Sellers but not as much as we saw in 2011 and parts of 2012.  The concession amount are getting smaller; home buyers are starting to pay for their own home warranties; and frivoulous repair requests are starting to go away. 

  

Omaha Home Buyers
There are still great homes out there at good prices.  You can still purchase your Omaha dream home as long as you:  

1. Make your best offer FIRST and do not wait to write the offer.
2. If you wait, the odds are good that home is either no longer available or, already has at least one offer on it.  I showed 10 homes to a buyer last week and she wanted to "think about it". Eight of those ten homes are now under contract.  Her dream home is now gone.
3. Be prepared to bring more money to closing.  Seller concessions are decreasing.
4. Be prepared to pay for your own home warranty.
5. Be reasonable when requesting home repairs.  Sellers will typically take care of any health or safety repair. If it's not a health or safety issue, be prepared to take care of it yourself after moving in.  Even new homes need regular maintenance.

 

Preparing Your Omaha Home For Sale
Homes that are selling in the Omaha real estate market are still those that are priced right and in good condition.  Many buyers are still looking for homes that have been updated.  If you are looking to get your home on the market soon, you should consider if you could get a better return on investment by updating kitchen and bathroom knobs, light fixtures, flooring, fresh paint and yes, especially counter tops. If you are open to making updates before putting your home up for sale, be sure to speak with a professional Realtor first.  I don't want you making updates unless we are reasonably confident this will either help get you better positioning in the market and hopefully, a better return on your investment. 

 

Omaha Real Estate Report Summary- Market Data Report for January
The average home list price is $166,323.  The list price decreased 10% from the previous month.
The average home sales price is $162,335.  The sales price decreased 10% from the previous month. 
The absorption rate is 6.43 which means if no other homes come on the Omaha Real Estate market, it will take 6.43 months to sell all of the active homes for sale in Omaha.  

 

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If you would like to know how these real esetate market conditions could impact the sale of your Omaha home or even delay your move, call me at 402-680-7000.  If a new home is in your future and you want to know the minute new homes hit the market, check us out at WestOmahaRealEstate.com.  Ask about our list of homes that are NOT YET ON THE MARKET!  

 

2013 Omaha Housing Market Data

  

Omaha Home Sale Prices 2010-2013

Average Days on Market in the Omaha Real Estate Market

Omaha Housing Inventory and Home Sales 2012-2013

New Listings and Omaha Home Sales 2012- 2013

Omaha Home Sold Prices Compared to Homes that Sold

  

Feb. 28, 2012

Warren Buffett Says Buy a Home Now