10 Things Buyers Want in a House...and it's Not Size!

Houses are getting smaller, according to data released last week by the National Association of Home Builders.The association said that the average size of a new home in 2009 was 2,480 square feet, down from 2,520 square feet in 2008.

"The era of easy money is over. You really have to think before you go out and decide you need that five-bedroom, five-bath home," said Rose Quint, the organization's assistant vice president for survey research.

Despite smaller home sizes and tightening credits, there are still some features that are expected in new houses. Builders say the following are most likely to be standard in homes built in 2010:
Walk-in closets in the master bedroom.
Laundry rooms.
Insulated front doors.
Great rooms.
Energy-efficient windows.
Linen closets.
Programmable thermostats.
Energy-efficient appliances and lighting.
Separate shower and tub in master bathrooms.
Nine-foot ceilings on the first floor.

Source: MarketWatch, Steve Kerch (10/22/2010)

10 Home Components Buyers Should Pay Attention To

Many aspects of a home last little more than a decade. Home buyers should be especially vigilant about inspecting these household components because they have a relatively short lifespan, says the National Association of Home Builders.

Aluminum roof coating: 3-7 years
Enameled steel sinks: 5-7 years
Security systems: 5-10 years
Carpet: 8-10 years
Smoke detectors: fewer than 10 years
Faucets: 10-15 years
Garage door openers:10-15 years
Air conditioners: 10-15 years
Asphalt: 12-15 years
Termite-proofing during construction: 12 years

Source: Bankrate.com, Marcie Geffner (01/22/2010)

10 Inexpensive Ways to Wow Buyers

Now is the time for home owners contemplating a spring sale to spruce up their properties in anticipation of what Mike Larson of Weiss Research calls a potentially vibrant home-selling season.

"If you have been beating your head against a wall, this is going to feel a lot better,” he says.

Here are 10 cheap ways to make a property more attractive to shoppers:
-Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
-Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
-Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
-Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
-Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
-Improve energy efficiency. New windows or improved insulation tells a potential buyer the seller is on top of things plus they come with tax benefits.
-Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
-Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
Tidy up the bathrooms. Get rid of mildew, replace caulking, and replace stained sinks.

San Diego Home Prices Edge Upward

San Diego County home prices rose $5,000 to a median $330,000 in December after staying flat at $325,000 for four months, MDA DataQuick reported this week. Sales totaled 3,652, up 16 percent from November in the usual year-end burst of activity.

The latest median represented a 10 percent increase from a year earlier, the best such boost since April 2005 at the height of the real estate boom. It was up $50,000 or 17.9 percent from the $280,000 low reached in January but still far below the all-time high of $517,500 set in November 2005.

Single-family resales saw no change in the $365,000 median, though that figure was 9.8 percent higher than in December 2008. Sales totaled 2,185, up 20.7 percent from November and up 7.5 percent from December 2008’s 2,033. Sales typically rise in December as buyers and sellers seek to complete transactions before the end of the year. They then settle down in January and February before rising again in the spring and summer.

The resale condo median slipped to $219,750 from $225,000 in November but was up 12.7 percent from year-ago levels. Sales totaled 1,084, compared with 963 in November and 971 a year ago.

The new-home category, which includes both new construction and new condo conversions, turned in a median of $425,000, up 28.4 percent from November but down 12.8 percent from December 2008. It was the best month-to-month showing since August 1997 and possibly reflected a surge in closings of new, higher-priced single-family houses as developers sought to close out dwindling inventories in subdivisions.

San Diego Leads Region in Home Price Gains

San Diego County, with a 10 percent increase, led Southern California in home price improvement last month, although Los Angeles had the highest sales growth on a year-over-year basis, MDA DataQuick reported yesterday.

Overall, the six-county region had a 4 percent increase in median price, rising from $278,000 in December 2008 to $289,000 last month. It was the first year-over-year improvement since summer 2007. The one exception was the Inland Empire, where prices in Riverside and San Bernardino counties were lower in December than a year earlier.

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Foreclosures Rise 21% in 2009

Foreclosures rise 21 percent in 2009 Foreclosures rose 21 percent in 2009 compared with 2008, as nearly 3 million properties received a foreclosure filing, according to RealtyTrac®’s Year End 2009 Foreclosure Market Report.

Foreclosure filings were reported on 349,519 U.S. properties in December, a 14 percent increase from November and a 15 percent increase from December 2008. Despite the increase in December, foreclosure activity in the fourth quarter decreased 7 percent compared with the third quarter, according to the report.

California continued to lead the nation in foreclosure activity by volume, with 632,573 California properties receiving a foreclosure filing in 2009. Following four consecutive month-over-month declines, California foreclosure activity increased approximately 9 percent in December compared with November. Foreclosure filings declined 17 percent in California in the fourth quarter compared with the third quarter, the report found.

FHA 90 Day Flipping Rule Waived!

FHA 90-day anti-flipping rule waivedThe Dept. of Housing and Urban Development (HUD) announced Friday it will eliminate for one year the Federal Housing Administration (FHA) 90-day anti-flipping rule.

FHA’s anti-flipping rule generally prohibits insuring a mortgage on a home owned by the seller for less than 90 days. That rule already has been waived for certain transactions, including REOs. Beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors. This one-year waiver will give FHA buyers access to a broader array of recently foreclosed properties.

Under the temporary waiver, all transactions must be made at arm’s-length and may require additional documentation of improvements and justification of certain price increases. Additional documentation may include a second appraisal and a property inspection ordered by the lender.
C.A.R. recently submitted a letter to FHA Commissioner David Stevens detailing the challenges facing many FHA home buyers, such as the lack of housing inventory available to them, and the need to revise this rule to reflect current market conditions. The reexamination of the 90-day anti-flipping rule was passed as an action item during C.A.R.'s board of directors meetings in October.