After a dour year where housing prices fell more than 12% nationwide, will 2010 bring sunnier tidings?

The short answer: only a tad in a select few places but overall not really.

The five areas that Moody's foresees home prices performing best in 2010 are: Tacoma, Wash., (an increase of 2.44%); Memphis, Tenn., (up 0.99%); Pittsburgh (up 0.89%); Charleston, S.C. (up 0.18%); and Seattle (decline of 0.50%). (These five markets are culled from data on Moody's Economy.com and based on the largest 100 metro areas.)

Yes, there have been pieces of good news over the past few months that have indicated a quiet, slow bottoming of real estate prices. For instance, sales of existing homes rose 7.4% in November from the previous month, the highest rate since February 2007, according to data from the National Association of Realtors released last week. The tax incentives for home buyers passed earlier this year along with historically low interest rates have no doubt nudged many buyers into the market.

Yet a recovery depends on several factors. At the top of the list is a turnaround in the labor market. More people going back to work will have a beneficial effect on household income and consumer confidence and would stabilize the housing market, says Stuart Gabriel, director of UCLA's Ziman Center for Real Estate. As of November, one of out every 10 American workers is unemployed, according to the Bureau of Labor Statistics. And while that's down slightly from October, Moody's expects the jobless rate to peak in the third quarter next year at 10.6%.

Another factor is the backlog in foreclosures, which are dragging down values and adding to the housing supply. "By all accounts, that backlog is at a historic high," says Gabriel. "It suggests that many more homes will be sold on a distressed basis either via foreclosure or short sale."

RealtyTrac, an online marketplace of foreclosure listings, estimates 3.2 million households will have received a foreclosure notice in 2009, up from 2.3 million in 2008. The firm projects that number could approach four million in 2010. "We do think 2010 will probably represent the peak, and in 2011 [foreclosures] will start to go down at least marginally," says Rick Sharga, senior vice president at RealtyTrac. Why the acceleration next year? First, says Sharga, there have been enormous delays in processing this year. Many homes that would have gone into foreclosure in 2009 won't actually enter and complete the process until 2010.

Second, a big wave of option adjustable-rate mortgages (ARMs) will reset next year. (These are a somewhat obscure category of ARMs that were popular during the real estate boom, which allowed borrowers to make a range of monthly payments. The options include a partial-interest payment that adds the unpaid interest to the loan's balance. On many of the loans, balances have risen while values of the underlying properties have plummeted.) "The number of loans that will adjust starts to go up significantly in the middle of next year. A lot of those loans are underwater...and owners will be really hard-pressed to avoid going into foreclosure," Sharga says.

Home prices, of course, are variable and depend on many factors, each of which are difficult to predict. Still, average home prices will drop by 7.9% nationwide in 2010, according to Moody's Economy.com. In the few areas where there could be positive price growth, the projected increase is modest. "These areas will essentially be flat next year," says Steve Cochrane, managing director at Moody's Economy.com.

These pockets of the country share a few important characteristics. One is that they are starting with a limited supply of housing stock. Another is that throughout most of the decade, prices basically stayed in synch with household income, says Cochrane.

There are other factors, too. Pittsburgh, for example, along with western Pennsylvania, is late in the traditional business cycle, and "our variations tend to be smaller," says Robert Strauss, a professor of economics and public policy at Carnegie Mellon University in Pittsburgh. The economy has managed to stay fairly stable mostly because over the past several decades it transformed from a center of manufacturing to one of education and health care with a bit of financial services and technology.

Smaller areas across the Southeast are expected to fare well in 2010 primarily because they fared relatively decently during the housing crisis, says Jeannine Cataldi, a senior economist at IHS Global Insight. "They didn't have such a big run-up, and they have a diverse economic base that enabled them to stay stable," she says. Home prices in Charleston didn't get out of line with household incomes; also, Boeing (BA: 61.60, -0.60, -0.96%) is investing in a fairly large manufacturing plant there, which could create some potential for income and job growth, says Cochrane.

As for Memphis, the city's largest employer is FedEx (FDX: 84.99, +2.06, +2.48%). Transportation services is one of the early industries to turn around as the economy recovers, says Cochrane, and that should support the area's housing market.

The economies of Tacoma and Seattle - which are neighboring cities - were "much stronger for much longer than much of the rest of the country," says Cochrane. Software giant Microsoft, based in Redmond, Wash., a Seattle suburb, was one reason the area remained stable. Another was Boeing, which builds its commercial airplanes in Seattle.

Going forward, Seattle's position as a key hub of trans-Pacific trade should be a plus for the economy. Orders are increasing for commercial aircraft and it should see some rising demand for tech products, Cochrane says. The outlook for 2010 for the two Washington cities "is for fairly stable, moderate economic growth," he says.

Source: Lisa Scherzer, Smart Money.com

The Home Buyer's Tax Credit was not only extended, it was also expanded.

The original $8,000 first time buyer credit's income levels have been raised  from $75,000 to $125,000 for an individual and from $150,000 to $225,000 for married couples.

Also, current homeowners may be eligible for a new $6,500 credit. Now is the perfect time to move-up to the house of your dreams.

History tells us that immigrants most often embody what Americans call the pioneer spirit. What is admired most about the pioneer spirit is the spirit itself - that decision to go and build and create a better life for oneself and one’s own community. For America’s early pioneers, there was no government to take care of them; there was no safety net, no health insurance or even jobs, for that matter.  There was only work, land, and immigrants with skills to do the work.

Far Rockaway is a neighborhood that cries out for people with the pioneer spirit. You’ll find it on the Rockaway Peninsula in the New York City borough of Queens. It is the easternmost section of the Rockaways, usually delineated as the area east of Beach 77th Street, comprising smaller the neighborhoods of Bayswater, Edgemere, Arverne, as well as Far Rockaway proper and Downtown Far Rockaway. The beach is the main attraction for the locals as well as those who live outside of the community during the summer months. People can often be seen walking to the beach and strolling along the boardwalk. 

Far Rockaway's character is that of an inner-city, oceanfront commuter town, in some ways having more in common with Asbury Park, New Jersey than with New York City. Formerly populated by Eastern European Jewish and Irish immigrants, it now has a large African American population, though the westernmost portion still remains mostly Irish. Downtown Far Rockaway has a moderately large Central American population. There is also a decent sized Orthodox Jewish population in the easternmost part of Far Rockaway.

There are some very understandable reasons we need today’s pioneers to come to Far Rockaway; those individuals who have skills and are willing to use them to build a new and improved community for themselves and for all who live here. My own personal experience can shed light on the devastation that Far Rockaway has experienced.

Developer’s Paradise?

With so many foreclosures and short sales resulting from over development and questionable loan practices, some houses have remained vacant for years. We see those homes vandalized, used as dump sites, and overcome by weeds because of neglect. We’ve also seen subsidized housing tenants, many of whom are ill-prepared to be good responsible neighbors, vandalize the very homes they live in. I’ve seen homes built within a five year period totally demolished and boarded up. The dread and embarrassment to the decent residents of Far Rockaway is apparent in that many will not rent to subsidized housing tenants and suffer the decrease in value of their properties.

A neighborhood is made up of people, not property. Far Rockaway has been, and can be again, a lovely place to live. Far Rockaway communities are on a peninsula bordered by the Atlantic Ocean, the Jamaica Bay and Long Island, NY. Certain areas of the Rockaway, for example Arverne by the Sea and the communities of Rockaway Park, Belle Harbour and Rockaway Beach enjoy the benefits of growth with high end condos, coops and multi-family homes. While old Arverne, which has some absolutely gorgeous homes, it has once again become a dumping ground for the poor among the proud working class. There is so much potential for positive change here.

Now’s the time to Buy Low

What we want to create is a community with a very diverse population speaking many different languages and dialects, coming from many different countries. People with a true pioneer spirit will find that they are welcomed when they come to Far Rockaway. We who live here will be happy to see them in our community. And there couldn’t be a better market in which to buy low in Far Rockaway and build up equity. We don’t want investors, we want families and communities. There are homes in the Rockaways that need little or no work for under $100,000 and even some two family homes can be captured for around $300,000. There are properties available with little or no renovations necessary and some that are considered to be handyman specials. Here, immigrants can be on the road to owning their own home and building their own community in a place that has stood the test of time. Far Rockaway has always been made up of working class families. Not only will new homeowners benefit from being in an established area, but they will benefit from new development that is done the right way.

I am a part of the well established Arverne community where today I will be able to take advantage of all the new developments: new schools (the Peninsula Preparatory Charter School has moved into the Arverne Community), a new accredited day care center, a 30,000 sq. ft. recreation center with indoor pool, fitness center, running track, meeting rooms, basketball courts and much more, all currently under construction.  Also under construction is a Super Stop & Shop complex which will attract a host of other businesses.  The new transit plaza will give easy access to the New York City subway system and John F. Kennedy Airport. If water travel is preferred, there is ferry service from the Rockaway Peninsula to lower Manhattan.

Pride in Homeownership

What happened to Far Rockaway, sad as it is, has given immigrant communities a chance now to take advantage of some ground floor opportunities, look through hundreds of available homes, and virtually change the tone of a neighborhood.  Immigrants will find that the homeowners who actually occupy their properties, and have a great deal of pride in ownership, will welcome them as like-minded individuals. The pioneer spirit has been dormant or forgotten in many ways today.  It is time for it to blossom again.  We need pioneers in Far Rockaway. We need the skills of immigrants, but even more than the skills we need their pioneer attitude.  Pioneers don’t wait for things to get better, they make things better. We hope you will come and join us in Far Rockaway.

Senators Schumer and Gillibrand voted to approve the extension and expansion of
the homebuyer tax credit.  Nothing in recent history has been more important
than this tax credit.  We Realtors know that the tax credit is working to
revitalize the housing market and position it to once again lead our economic
recovery.

The legislation extends the availability of the tax credit to purchases before
May 1, 2010. Prospective purchasers with binding contracts in place as of April
30, 2010 will be allowed an additional 60 days to complete the transaction. The
credit will remain $8,000 for first-time buyers, while repeat buyers who
purchase between December 1, 2009 and May 1, 2010 will be eligible for a credit
of $6,500. Repeat buyers must have lived in their homes consecutively for 5 of
the previous 8 years. Income limits are expanded to $125,000 on a single return
and $225,000 on a joint return.

We are hopeful that the House will pass this legislation in the near future and
that President Obama will sign it into law.

"We Will Sell Your House, Or ERA Will Buy It!"®

Contact Linda Maia Hadi at 347-489-8600

 

Product Overview

Sellers Security® Plan Frequently Asked Questions


What will ERA Franchise Systems LLC offer for my house?
If your home qualifies for the plan, ERA Franchise Systems LLC will offer you 90% of the appraised value. If at any time another offer is presented to you for more money than the offer you accepted from ERA Franchise Systems LLC you close with that buyer at a higher price. You always have the option to cancel your purchase agreement with ERA Franchise Systems LLC at any time. The appraisal process is described within the application.

What will I be required to do?

·         Agree to implement the ERA Five-Point marketing plan

·         List your house with an ERA Broker for at least 180 days

·         Buy another house through a Broker designated by ERA Franchise Systems LLC (not required for military service members to base housing)

Does this mean I have to buy a new home listed with ERA® Broker?
No. You are only required to purchase your next home through a Broker designated by ERA Franchise Systems LLC.

What expenses will I have?
Your cost for participation in the Sellers Security® Plan will include the same expenses due in any other home sale, including the sales commission and other closing costs customary in your market area. In addition there are certain other costs including an independent appraisal and home inspection.

Am I required to submit an application immediately upon listing with an ERA® Broker?
No, one of the benefits listing with an ERA® Broker is the program remains an option for you to use at a later date. Also keep in mind that by listing with an ERA® Broker, a prospective buyer who needs to sell their current home to buy yours can use this program!

Contact Linda Maia Hadi at 347-489-8600 for full details.

Conditions apply: house must meet specific qualifications and purchase price will be determined solely by ERA Franchise Systems LLC. Additionally a second home must be purchased through a broker designated by ERA Franchise Systems LLC. Call your local participating ERA® Professional to review details.

Are you contemplating a move to your next home, the place where you'll write the next chapter in the story of you life? Whether you're headed to the first home of your own, new construction or historic fixer-upper, a detached home or a town home, condo or coop, a farm house in the country, a loft in the heart of a city or any one of dozens of other options, it can be an exciting and emotional time.

Here are a few tips to help make the transition a bit less stressful.

Tips for Everyone:

Establish Good Rapport with a Real Estate Professional – Buying or selling your home can be a stressful time; establishing a comfort level with a real estate professional you trust will go a long way toward making the transition to the next chapter in your life a smoother and even pleasant one.

Make sure you choose a Realtor® who takes the time to listen to your needs and answer your questions. Don't agree to be represented by a Realtor® unless you're comfortable that they'll work hard for you and be there when you need them.

Don't Hesitate to Talk Technology – While you're speaking with a prospective agent, be sure to ask where the use of technology figures in to the marketing and sale of your home. Even though a solid majority of homebuyers use the services of a licensed real estate professional, about 80 percent begin their search on the Internet.

Today's real estate market is truly global. Choose a Realtor® and a real estate brand backed by a strong Web presence and a global reach; you simply can't predict whether your buyer will come from around the corner or a far corner of the globe.

Tips for Sellers:

Price your Home to the Market – If you insist that you must list your home at a predetermined price regardless of current conditions in your local market, you're setting the stage for a major disappointment. Real estate values are determined by the marketplace. Work with a real estate professional who serves your area, knows the current state of your market, and will research comparable sales to help you arrive at a realistic listing price.

Curb Appeal is Crucial – It's true that first impressions are lasting ones, and creating a great first impression is probably the single most cost effective technique for showing your home to best advantage. Your Realtor® will advise you; a thorough cleaning and a fresh coat of paint may be all you need.

Here are a few more no or low cost techniques that help boost curb appeal:

    * Keep plantings trimmed and the lawn cut
    * Remove all clutter from entrances
    * Replace the welcome mat
    * Ensure all door knobs, hinges latches and locks are attractive and in good repair
    * Clean all windows inside and out; hire a cleaning service if necessary – it's usually worth it.

Keep it Clean – You never know when your buyer is going to walk through your front door; keeping your home clean, clutter free and odor free are the easiest, cheapest and most effective things you can do to help sell your home in the shortest possible time at an attractive price.

Consider Staging – Actually, improving the curb appeal of your home is perhaps the first known example of what has come to be known as home "staging;" a powerful approach to removing the visual clutter from your home and making it visually appealing to the greatest number of potential buyers, using techniques that builders have applied to model homes for years.

Staging your home doesn't have to be expensive to be effective; some basic knowledge of simple staging techniques and the ability to look at your home from a fresh perspective are usually what is needed. ERA Gold Star Property is a preferred property program designed to help you meet the fundamental challenge of standing out from the competition. The Internet, your local library or book store, and your Realtor® are also great home staging resources.

Many sellers want to know how long would they need to wait to again see the prices of 2005-2006. Moody’s and Fiserv have actually studied this point. Here are the years that different states will probably return to those prices:

Before 2014

Maine
Vermont
Kentucky
Pennsylvania
South Carolina
Alabama
Alaska
Iowa
Montana
South Dakota
North Dakota
Wyoming
Nebraska
Kansas

2014-2017

Massachusettes
Connecticut
Delaware
Ohio
West Virginia
Indiana
Wisconsin
North Carolina
Tennessee
Mississippi
Arkansas
Missouri
Louisiana
Oklahoma
Texas
Colorado
New Mexico
Washington
Oregon

2018-2022

New York
New Hampshire
New Jersey
Maryland
Rhode Island
Illinois
Hawaii
Georgia
Idaho
Utah

After 2023

Virginia
Florida
Michigan
Minnesota
California
Nevada
Arizonia

There are two ways to look at this data. First, if you are thinking of selling, sell now – don’t wait. The other point is, if you are buying this year, in 43 of the 50 states you could see a dramatic increase in value within ten years. I think this data can help both buyers and sellers make good decisions for themselves and their families. Source: SteveHarney.com