Real Estate News for Saturday, December 9th, 2006

How Low Will Real Estate Go? No one's arguing that the boom is over. But just how far prices may drop is much less certain. Here's what some economists expect nationally, along with predictions for 15 metro areas. Many property owners are reluctant to cut their prices. Unlike builders, who are so desperate to sell their properties that some are throwing in extras like upgraded countertops and one-week vacations, many sellers are willing to wait. Their logic is simple, Leamer explained, "A lot of owners figure, 'My idiot neighbor sold his home for $1 million, and I'm not taking a penny less.'"On the other side of the equation are the buyers, equally strong-willed. Unwilling to fork over those sums in a wavering market, they are watching from the sidelines, waiting for prices to drop. What's more, two key sources of housing demand are locked out of the market, explained Moody's Zandi. One is first-time home buyers, who can't afford to buy given the mix of rising interest rates and still-high home prices. The other is speculators, who can no longer benefit from dramatic appreciation by flipping real estate. Source.


3 Simple Steps to Reel In Buyers. Think like a potential buyer and your mission becomes clear, an expert renovator says. That means fixing what can be seen (or smelled) first. The single most cost-effective investment you can make to increase the value of your home is to buy a roll or two of plastic trash bags. Stuff them with junk outside the house -- from beer cans to raked leaves. Nothing could be more common-sense than cleaning up the yard and exterior, right? "You'd be surprised at how many people don't recognize the importance of doing these kinds of items," says Steve Berges, a real estate investor in Michigan who buys dilapidated houses, fixes them up and sells them for a profit. His advice: When renovating a house or preparing it for sale, spend money on things a buyer can see. Source.

What to do if your home isn't selling. From rethinking your color scheme to holding open houses on weeknights, here are 10 tips for sparking interest in your home. Take a second look at your listing price. Visit open houses in your neighborhood. Are similar homes priced lower? Selling prices may have dropped since your first comparative market analysis. In a hot market, if you haven't sold your home within one month, chances are good that you've overpriced it. If you do lower your asking price, consider a figure slightly below those of other comparable homes if you are interested in a speedy sale. Want to see the other 10 tips? Click the Source link. Source.

Forecast: '07 state economy to slow. The health of the California economy in 2007 will depend on whether the current weakness in the real estate market saps the strength of the state's retail sales, tax base or the job market, according to a report released today by the UCLA Anderson Forecast. The economists at the forecast – one of the state's best-known economic panels – conclude that both the state and national economy will likely be sluggish through next year before improving slightly in 2008. Source.

How To Sell Your Home In 2007. If you're trying to sell your home in 2007, brokers have one piece of advice: Make sure the price is right. Perhaps your neighbor made a bundle by putting his home on the market just when prices peaked. Maybe your sister sold her condo last month, reaping a 40% return. But when it comes to your own abode, that means nothing. Sellers need to get real, and sometimes that means dropping the price. Unfortunately, many sellers are suffering from housing bust denial. "All sellers are human," says Sharon E. Baum, a senior vice president with Corcoran Real Estate in New York City. "Hope springs eternal, right?" Source.

~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com