September Real Estate Round Up

September Round Up: Rates Back Down In Freddie Mac's results of its Primary Mortgage Market Survey. The 30-year fixed-rate mortgage rate dropped to tie the survey’s all-time low and the 15-year fixed-rate set another record low.
30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.8 point for the week ending September 30, 2010, down from the previous week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 4.94 percent.
15-year FRM this week averaged a record low of 3.75 percent with an average 0.7 point, down from the previous week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.52 percent this week, with an average 0.6 point, down from the previous week when it averaged 3.54 percent. A year ago, the 5-year ARM averaged 4.42 percent.
1-year Treasury-indexed ARM averaged 3.48 percent this week with an average 0.7 point, up from the previous week when it averaged 3.46 percent. At this time last year, the 1-year ARM averaged 4.49 percent.
According to Frank Nothaft, vice president and chief economist, Freddie Mac: "Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week. The September Consumer Confidence Index by the Conference Board fell to the lowest level since February of this year, while the Business Roundtable CEO Business Outlook for the third quarter was the weakest in the past four quarters. Consequently, rates for the 15-year fixed mortgage and the 5-year hybrid ARM reached new all-time lows and rates for 30-year fixed mortgages tied its record set just four weeks ago."
"Homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010 after losing more than $7.5 trillion over the three-year period ending in the first quarter of 2009, the Federal Reserve Board reported. This, in part, strengthened household balance sheets and reduced serious mortgage delinquencies. For instance, first mortgages 90-days delinquent or worse fell to 3.16 percent in August from 4.76 percent a year prior and was the lowest rate since June 2008, according to the S&P/Experian Consumer Credit Default Indices."
Four Tips for Setting the Right Sales Price
Sellers think their homes are worth more than their real estate professional recommends, and buyers think these same homes are worth less.
It’s a difficult disconnect that makes selling properties a challenge. Successfully marketing a home requires that the price be set carefully -- or it will languish on the market. Among the considerations:

How many homes are for sale in the neighborhood? The more homes on the market, the more important it is to list at the lower end of the scale. "I want buyers to ask why is this house priced so competitively," said NAR President-elect Ron Phipps. "I want the answer to be an offer."

Take short sales and foreclosures into consideration when pricing. If the competing properties are in lousy condition, they are less of an issue, but if they are well taken care of, yet priced 25 percent below market, they can be a serious factor.

Negotiate decisively. "Buyers are not interested in back-and-forth negotiations these days," Phipps said. "They are less emotional and more disciplined. They will walk away."

Cut the price when you have to. If no one shows up for an open house, if no one calls and if there are no offers, then the price is too high. That means it's time to make a meaningful price cut. What's New in New Housing Design Below are the products grabbing the attention of the home building and remodeling industries:

Appliance Drawers. Small warning drawers, modest-sized dishwasher drawers for small loads, refrigerator drawers and microwave drawers.

Counter-depth refrigerators. Some are only 24 inches deep.

Motion-detecting faucets. Like you'd find in the restrooms of businesses.

LED lighting. These are used under cabinets and in ceiling fixtures as a longer-lasting, more efficient alternative to compact fluorescent lamps and incandescent bulbs.

Electric heated floors. A nice touch in bathrooms,

Showers with multiple heads and body sprays. Bathtubs are out. Sellers Quickly Transform Property with Paint
The best way to update a property is to paint it. It’s a job that many sellers can do themselves. Here are six suggestions for making the work go quickly.
1. Move the furniture. Get as much furniture as possible out of the way, and then cover what’s left with plastic drop cloths held in place with masking tape.
2. Buy good paint. Top-quality latex interior paint will hide what’s underneath and make the job go faster.
3. Tape the edges. Taping the edges with painters tape will speed up the job and make the results more professional.
4. Work top down. Paint the ceiling first, then the walls, then the windows and trim and finally the baseboards. This will cut down on time spent repairing drips and splatter marks.
5. Cut in the corners. Applying a three-inch band of paint around the edges will allow you to fill in the middle with a paint roller.
6. Apply paint generously. Trying to stretch the paint won’t save sellers any money if they have to repaint.