Real Estate Recap: July 31, 2012

From the Baton Rouge Business Report, Real Estate Weekly:

By the numbers: The percentage of Baton Rouge homes in foreclosure fell to 2.36% in May, according to a report from CoreLogic, down from 2.39% from the month previous and 2.47% in May 2011. The local mortgage delinquency rate—that is, the percentage of home loans three months past due or more—also fell in May to 5.39%. That's down from 5.54% in April, and 5.59% a year ago. Daily Report has the full story here.

Game on: Pinnacle Entertainment plans to officially open the doors of its $368 million L'Auberge Casino & Hotel in Baton Rouge at 7 p.m. on Wednesday, Aug. 29. Pinnacle says the grand opening will "feature memorable entertainment, dining experiences and an unveiling ceremony capped off with a stunning fireworks display." Details on entertainment specifics were not released but are expected as the opening date nears.

No finer place for sure: U.S.-based IT services firm Ameritas Technologies plans to open an "information technology center" in the Chase Tower South downtown. Ameritas says it will begin hiring in September, plans to open by October, and hopes to have 300 employees by 2016, with the jobs paying an average of $63,000 annually, plus benefits. The company was lured to Baton Rouge with an incentives package, the full details of which you can get from Daily Report here.

This week's poll question: If you built a new house, would you include energy-efficient and maintenance-free amenities?

B.R. ranked in the middle for affordable housing

From the Baton Rouge Business Report, Real Estate Weekly:

Of the roughly 200 U.S. metropolitan areas surveyed for the new "Paycheck to Paycheck" report on first quarter housing affordability from the National Housing Conference and the Center for Housing Police, Baton Rouge ranks No. 83 on the list of most expensive metros to buy a home. On the same report for the first quarter of 2011, Baton Rouge was ranked No. 81. The report says the average home sale price dropped to $157,900 in the first quarter, down from $160,600 in the opening three months of 2011. New Orleans is ranked No. 91 on the list, up from No. 95 last year, with an average sale price of $147,500 in the first quarter of 2012. The Capital Region appears to be more affordable for renters, according to the report, which ranks Baton Rouge No. 128 on the list of the most expensive metros for renters. The average rent for a two-bedroom unit in Baton Rouge is pegged at $752 in the report, much lower than the national average of $949 among the largest 200 metros. New Orleans is ranked at No. 58 on the rental list, with a $948 average. You can get more details and access the complete report here.

Help keep Baton Rouge beautiful

Help keep Baton Rouge beautiful! Clean up day downtown this coming Saturday, July 21st from 8:00-10:00 a.m.

June home sales jump 13.5% in Capital Region

From the Baton Rouge Business Report:

Halfway through 2012, home sales in the eight-parish region tracked by the Greater Baton Rouge Association of Realtors were up 19% over sales recorded six months into 2011. Year-to-date figures were aided by another strong sales month in June, during which 776 homes were sold, a 13.5% increase over the month last year, according to the GBRAR's latest tally. Sales numbers have been up every month this year, with a total of 3,739 through last month, compared to 3,142 through June 2011. East Baton Rouge Parish has led the sales increases in 2012, up 19.9% with 2,059, compared to 1,717 last year. Ascension Parish's rate of increase isn't far behind, up 19.1% with 710 sales, compared to 596 last year. Livingston Parish sales this year are up 15% to 638, from 555 through June 2011. Sales in the five other parishes lumped into GBRAR's "other" statistical category—West Baton Rouge, Iberville, East Feliciana, West Feliciana and Pointe Coupee parishes—are up 22.2% at 332, from 274. Total year-to-date volume of homes sold in the entire eight-parish region was $706.5 million through June, up 17% over the $603.4 million sold in the same period last year. See the GBRAR's complete sales report here.

Tips for buying a house

From CNN Money

The top 10 things you need to know when buying a home.

1. Don't buy if you can't stay put.

If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition.

2. Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. If you can't put down the usual 20 percent, you may still qualify for a loan.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.

5. Buy in a district with good schools.

In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.

When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for a long time -- say three to five years or more -- it's usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.

10. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

10 Summer Moving Tips

From REALTOR.com

 

How to prepare for a seamless transition

If you're moving this summer, the busiest season for moving, you know how daunting it can be. But if you create a blueprint for your move, the transition from house to house will go more smoothly.

Here are 10 things you can do to prepare for a seamless transition.

1. Full serve, partial serve or a do-it-yourself move. Can you do it alone or should you hire a licensed moving company for a full-service or partial-service move? This is one of the first and often most difficult questions soon-to-be moving households face. The answer depends on your lifestyle, household size, budget and amount of time you have to get everything accomplished. Get written quotes from at least three licensed moving companies so you know you’re getting the best deal based on your specific moving needs. Moving yourself or doing a partial-service move? Packing calculators can make it easier to estimate the amount of boxes and packing materials needed.

2. Plan to unpack BEFORE you pack. Take photos of each room in the new home before you arrive with furniture, plants, appliances and family in tow. Write down on a clip board where each item should go in your next home before packing, and carry it with you on moving day. List out the major items that need to be assembled first. As you place each item in its new room, cross it off the list and you will be one step closer to enjoying your new home.

3. Be strategic about packing. If you have more than a month to ‘pick up and move’, start early. Complete a free change of address and schedule utilities ahead of time at Moving.com. Start packing early. Whether it’s one room, one cabinet or a drawer at a time, weed through what may be years of accumulation. As you’re going through your belongings, divide everything into these helpful categories: donate to charity, give to a friend, recycle, trash, pack now, or keep handy until moving day. You’ll be surprised at how much you can donate, recycle or give to friends. And, you’ll not be overwhelmed with the task at hand three days before you move.

4. Moving is NOT child’s play. Plan ahead. Consider daycare on moving day, or get help from a friend or family member. Provide lunch or some other appropriate thank you gesture if you do call in a favor. If that’s not an option, prioritize setting up safe places for your children to play in the new home on moving day so they’re not underfoot. This will help everyone remain happy and calm on moving day.

5. Don’t fight with Fido. Sometimes we forget that all the packing and constant in-and-out of visitors is stressful for animals. Consider checking your pet into a daycare facility, or setting up a time for a friend to take them or check them into petday care. Don’t let your four-legged best friends get lost in the shuffle and remember to make day-of moving arrangements.

6. Keep track of small parts. Some items need to be broken down into pieces when moving, but do you know what to do with the small screws and washers that you end up with? Rather than tape them to the furniture, which can result in losing them, put everything in a baggie that is clearly marked and sealed. Keep all of the separate baggies together in one box on moving day and personally take it with you to your new home.

7. Take pictures of electronic hook-ups. Hooking up TVs, DVRs, home theater systems and computers can be challenging. Before unplugging any wires for the move, take a photo of the connections, print them out and label them in detail. This will create fewer headaches when setting up technology in the new home. Keep track of all loose wires using baggies or boxes that are clearly labeled, and personally carry these easy-to-lose items on moving day.

8. Packing cleaning products and toxins. Products such as detergents, pesticides and paint are heavy and unwieldy to pack. Dispose of as many as possible before the move in an eco-friendly way. Call your city’s waste disposal department for guidance on proper disposal. For items that must be transported, pack them in a small box within a larger box for protection against leaks. Don’t overstuff boxes with these items! Consider marking these boxes in a different color, and seal them extra tight. Keep them separate from the rest of the boxes, particularly if you have kids and pets.

9. Consider getting full value insurance protection. If using a professional mover, it may cost a few dollars extra, but it provides peace of mind and eliminates later annoyances. Investing in full value protection means any lost or damaged articles will be repaired or replaced, or a cash settlement will be made at current market value, regardless of age. It's important to note that the required minimum coverage of 60 cents per pound would not cover the replacement cost of more expensive items such as a flat screen TV if damaged in transit.

10. Know your rights. If using a professional mover, research your rights as a consumer with either the Federal Motor Carrier Safety Administration (FMCSA) for interstate moves or contact the state agency within the state in which you reside for moves within state. Also, enlist the help of the Better Business Bureau (BBB) or local law enforcement if the moving company fails to live up to its promises or threatens to hold your belongings hostage. FMCSA requires interstate movers to offer arbitration to help settle disputed claims.

8718 Old Hammond Highway Home For Sale. 3583 sq ft - $489,900

This 4 bedroom 4.5 Bath home is simply a buyers dream. Open floor plan with a beautiful spacious kitchen with stainless steel appliances, brick floor pavers, tons of cabinet space, and a 47 ft granite counter top. The spacious living room has a wall of windows which allows a lot of natural lighting. Also has an office downtstairs. The master suite opens into a large master bath with a garden tub, separate shower, separate vanities and large walk in closets. Each additional bedroom is large with lots of closet space. There is also a bonus room upstairs perfect for children to play. New Orleans style back patio also makes this home great for entertaining. There is so much space and luxury in this home you won't want to miss this opportunity. Call Tim at 225-301-7467 to schedule a private showing.

How to Determine How Much Home Can You Afford

From Fox Business:

Interest rates are low and home prices have plummeted from their 2008 highs, making it an ideal market for homebuyers. But before even starting the hunt, every buyer needs to determine exactly what they can afford and how much they will need for a down payment.

While a down payment is sure to be in the thousands, 90% of new mortgages are government-backed FHA loans, according to Bob Walters, chief economist at Quicken Loans, that only require 3.5%-9% upfront, compared to the standard 20%. Veteran Home loans or VA loans sometimes finance the entire home purchase and don’t require a down payment.

“Most clients that apply for an FHA loan put down the lowest available down payment of 3.5% to 5%. This is the major advantage of an FHA loan,” say Noah Brown, a mortgage loan originator at American Mortgage Group. Keep in mind that if you don’t put down 20%, you’ll likely have to pay for private mortgage insurance on top of your mortgage payment until you have enough equity in the home.

Calculating How Much Home You Can Afford

When you get pre-approved for a loan, the lender will tell you the maximum you can borrow based on your debt to income. Most banks set the debt to income ratio at 45% to 50%, which means you’re debt can’t exceed 50% of your income. Once your debt to income ratio is determined, the bank will tell you how much of a home you can afford.

Experts warn buyers that just because they are approved to borrow a certain amount, it could be more practical to borrow less to have more flexibility with other lifestyle spending. If you like to eat out every night, enjoy weekly shopping trips or have an expensive lifestyle buying the maximum house you can afford could leave you strapped for cash. “Some clients may not feel comfortable with a debt-to-income ratio of 50% and thus look for a lesser value home, with the knowledge of what they can afford / qualify for,” says Brown.

Once you know what you can afford, next you need to figure out the down payment amount and how to come up with it. According to Brown, you should never use the majority of your assets to for your down payment—putting 20% down instead of 25% will leave some emergency funds in the bank.
Collecting funds for the down payment also varies by financial situation. According to Walters of Quicken Loans, the majority of people use money from their savings account or from the sale of a previous home as the down payment.

If you don’t have adequate savings for the payment, you can tap your 401(k) or IRA, although experts warn you could be hit with significant penalties for withdrawing early. Most lenders allow a portion of the down payment to come from a gift as long as it’s a gift with no strings attached. “Lenders want to make sure it’s a gift and not a loan,” says Walters. “They don’t want an over leveraged client.”

You can not charge your down payment or otherwise borrow money through an unsecured loan because they will increase your debt-to-income ratio.

There are non-profit companies that offer eligible buyers assistance in buying a home. For instance AmeriDream, a non-profit focused on helping people find affordable housing, helps people with low and moderate incomes buy homes by offering down-payment assistance. Buyers who are approved for an FHA loan, but don't have the money for the down payment can apply for the AmeriDream down payment assistance.

The Nehemiah Program, which is a down payment assistance program that offers help to buyers who qualify for an FHA loan. With this program there are no limits on income or assets. For a list of down payment assistance programs click here.

Read more: http://www.foxbusiness.com/personal-finance/2012/07/11/how-to-determine-how-much-home-can-afford/#ixzz20KO10ggQ

Real Estate Recap: Zachary named among 10 best towns for families in America

From the Baton Rouge Business Report, Real Estate Weekly:

Plan on it: While recently breaking up and approving items within Mayor Kip Holden's $11.1 million budget supplement, the Metro Council voted to approve $200,000 for the planning of Smiley Heights, marking some of the first dollars appropriated for implementing the FuturEBR master plan for land use and development. The city-parish envisions that Smiley Heights—a mixed-use development including education, retail, residential and commercial components in the Melrose East community, where Greenwell Springs Road and Ardenwood Drive intersect—will encompass 3,500 new households and create 20,000 new jobs by 2030. Read the full story from Daily Report here.

Certifiable: A 204-acre "development ready" site in Port Allen is slated for certification under LED's Certified Sites Program. LED officials say the site—known simply as "All Star" for its ownership affiliated with the All Star Automotive Group—is located north of Interstate 10 on Court Street, about midway between La. 415 and La. 1. The site is one of three LED-certified sites in the Capital Region, including a 60-acre site at the Donaldsonville Industrial Park and a 44-acre site at the Pointe Coupee Port and Industrial Park. Daily Report has the full story here.

Like a good neighbor: Family Circle has included Zachary on its new list of the 10 best towns for families in the United States, noting the city's relatively high median income ($65,749), low average home price ($180,000), low student/teacher ratio (21:1) and high overall schools rating (it gives it a 9 of 10). "The [school] district has been rated the best in Louisiana for the last seven years and was the only one to receive an 'A' rating from the state in 2011," the magazine notes. Check out the complete list here.

Real Estate Recap: June 3, 2012

From the Baton Rouge Business Report, Real Estate Weekly:

Hammering away: With a 13% construction employment increase in May—an addition of 4,900 jobs since May of last year—the Capital Region was the 11th-best performing city among 337 U.S. metro areas tracked by the Associated General Contractors of America. Baton Rouge had a total of 43,600 people working in the construction industry as of May 31, according to the AGCA's latest jobs report. Read the full story from Daily Report and access the complete metro rankings here.

Inch by inch: Baton Rouge's foreclosure rate edged down 0.18 percentage points in April to 2.39%, compared to the rate in April 2011, according to a new report from CoreLogic. That's a scant 0.02 percentage points down from the March rate. Still, Baton Rouge's foreclosure rate remains well below the 3.41% national average and is also lower than Louisiana's rate of 2.49% in April, which represents a decrease of 0.11 percentage points from a year ago. Get the full story from Daily Report and access a map of foreclosures by ZIP code in the Capital Region here.

Second chance: Even if you weren't able to make the Center for Community Progress' 2012 Reclaiming Vacant Properties Conference: Remaking America for the 21st Century, which recently wrapped up in New Orleans, you can check out most of the training seminars and presentations online. Topics range from urban blight to vacant and abandoned property and productive reuse. Check out available presentations here (click on the speaker's name below the presentation for a PDF download).

This week's poll question: When purchasing new appliances, lights and other electrical items for your home, do you generally choose a more energy-efficient product even if it means a higher price?

Your Victory on the NFIP Reauthorization

A message from NAR President Moe Veissi:
YOU DID IT! Late last week Congress finally acted on one of your key legislative priorities, a five-year reauthorization of the National Flood Insurance Program (NFIP). Even better news, we just received word that the president is expected to sign it into law tomorrow, Friday, July 6, 2012.

All the D.C. pundits said nothing would be accomplished in an election year! You just proved them wrong because you didn’t give up, and now you have the victory to confirm it!

The reason I’m writing this today is to reinforce the commitment of your National Association to you and every other member who expects us to persevere on issues of importance to our members and your clients – the consumers, homeowners, and potential home owners of the future.
NAR, with your help and influence, stayed the course to give lenders and home owners more certainty in the mortgage and real estate market place with available flood insurance for existing home owners and those buying and selling.

This has been a long, arduous battle. The National Flood Insurance Program suffered through over 18 short-term extensions and hobbled along for the last four years without a long-term reauthorization forthcoming from D.C.

It was your charge to us not to give up, not to accept anything less than a long-term reauthorization of the Flood Insurance Program. So, we battled to get every inch along those short-term extensions until now when a full five-year reauthorization has been approved.

This fight traveled over several administrations and more than a few presidents of NAR. I’m proud to represent them and the management team in this victory for you.

But, while I’m proud of my predecessors in leadership, and equally as proud of the most effective management team both in Chicago and D.C., I am especially proud of you!

When called upon to respond to our Calls to Action, you did. When asked to invest in your business, you have. And, when asked to step up and participate you resoundingly did that, too.

New battles lay ahead. There will be no easy victories. Now more than ever, it is our responsibility to be steadfast protectors of the American Dream of home ownership. If not us who? If not now when? So, when we call on you like we did to rally, when we call on you like we do to respond to the calls for action, please; continue to show your commitment.

God bless you all. You are what this country is all about! Rally on REALTOR® Party!

You truly are the heart of the deal… many thanks.

Moe Veissi2012 NAR President

Home builders say student loan debt crisis linked to lower home values

From the Baton Rouge Business Report:

A new analysis of government data by the National Association of Home Builders says there's a connection between rising student loan debt and the onset of the housing slump. The analysis says home-owning parents who, in a healthy economy, would have used a home equity loan to help finance their kids' tuition weren't able to do so when the housing crisis led to a decline in loan availability. As a result, it says, students have increasingly taken out loans on their own behalf. "The data thus do not necessarily reveal a sharp increase in borrowing for college education, but rather a shifting in the form of borrowing," the analysis says. "And this is yet another consequence of the harm inflicted on the middle class as home prices fell, leading to a nearly 40% decline in median household net worth." The NAHB cites the 2010 edition of the Federal Reserve's survey of household balance sheets, the Survey of Consumer Finances, for the statistic on average net worth. The analysis also says any impact on housing demand caused by a forecast bursting of the student loan debt bubble will not be catastrophic as some in the industry are predicting. You can check out the NAHB's complete analysis here.