This Month in Real Estate - September 2013

September 2013 Market Update

The annual rate of home sales rose to the highest level since 2009 in July, the jump likely boosted by formerly reluctant buyers being pushed off the sidelines by the anticipation of rising mortgage rates. As speculation continues on the date and extent of the Federal Reserve's reduction in its purchases of unconventional assets, mortgage rates have already begun to rise and are unlikely to return to the historic lows witnessed early in the year. With rates on the move, prospective buyers would do well to take advantage of low rates while home affordability remains at historically high levels. Prices moderated slightly in July from their peak in June, likely due to seasonal variation, but maintained high year-over-year growth rates. Sellers are still well-positioned in the national market with inventory still relatively tight in many areas.

Interest Rates 

Interest rates have moved up this month: 30-year fixed-rate mortgages are currently 4.58% with 15-year rates at 3.60% and 5-year adjustable rates at 3.21%. These are the highest rates we have seen in the last two years.

Home Sales

Total existing home sales in July were up 6.5% from June to a seasonally adjusted annual rate of 5.39 million homes. Year-over-year home sales were up 17.2% from the July 2012 rate of 4.6 million homes. The housing market recovery is still well under way with 25 consecutive months of year-over-year growth in home sales heading into this fall.

Home Price

The median existing home price in the United States in July was $213,500, down slightly from the previous month but up 13.7% from the same month last year. The median price level released by the National Association of Realtors is not seasonally adjusted and the small dip we experienced from June to July is consistent with those we have seen in the past. This is the seventeenth consecutive month of year-over-year price increases, which last occurred from January 2005 to May 2006.

Inventory 

A slight rise in inventory levels was evenly offset by the increase in the pace of home sales, causing the months of supply for existing homes to hold steady at 5.1 months. Total housing inventory rose by 5.6% in July to a level of 2.28 million homes. Inventory is 5% below levels reported for July of last year, which represented 6.3 months of supply at the time.

Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.
The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

Important Information Regarding 2014 STAR Exemption for Home-owners

Important Information Regarding 2014 STAR Exemption for Home-owners

By: Christina DeFalco

Date: 8/22/2013

To keep STAR tax break, you'll need to reapply by Dec. 31

In coming weeks, homeowners will receive a letter instructing them to reapply for the STAR program online or by phone by Dec. 31. People will need to verify their salaries, Social Security numbers and primary residence.

The initiative, approved as part of the state budget in March, will seek to stop some property owners from claiming the tax breaks on multiple homes.

 

The new legislation requires all homeowners receiving a Basic STAR exemption to register with the New York State Tax Department in order to receive the exemption in 2014 and subsequent years.

• Homeowners will not have to register in order to receive their 2013 STAR exemptions.
• Homeowners will not have to re-register every year. Based on the information provided in the  registration process, the Tax Department will monitor homeowners' eligibility in future years.

 

How to register

You can register for the STAR exemption online. You'll need to:

• provide a STAR code (we're mailing codes to all Basic STAR recipients; or you can use the STAR code lookup)
• provide the names and social security numbers for all owners of the property and spouses
• confirm that the property is the primary residence of one of its owners (married couples with multiple residences may only claim one STAR exemption)
• confirm that the combined income of the owners and their spouses who reside at the property does not exceed $500,000
• confirm that no resident owner received a residency-based tax benefit from another state

 

You can also register by calling (518) 457-2036

• Monday - Friday:  8:30 am - 8:00 pm
• Saturday:  9:00 am - 1:00 pm

 

Registration period

Registration started on August 19, 2013 and will continue through December 31, 2013.

 

Senior citizens

Senior citizens receiving the Enhanced STAR exemption are not affected by the new registration requirement. Seniors must, however, continue to:

• apply annually, or
• participate in the Income Verification Program

 

For more information contact (518) 457-2036 or visit New York State Department of Taxation and Finance.

Back-to-School With No Stress?

Back-to-School With No Stress?

It Could Happen!

When the warm summer months begin to wind down and the days become a little shorter, you can almost smell it in the air - back-to-school time is here! And, just as fall and cooler weather approach, so does back-to-school anxiety. Between kids fearing they'll miss the bus and won't make new friends, and parents feeling stressed about hectic mornings and carpooling chaos, how can anyone get excited about the first day back to school? Parents, however, can set the tone for a smooth transition from summer to the new classroom by proactively addressing their children's concerns. Here are a few tips to help ease your family's back-to-school anxiety.

 

• Be enthusiastic. If you are excited and confident, your child will be, too.
• Prepare yourself. Note your child's reaction to separation. If possible, visit the new setting together and introduce your child to the new teacher in advance.
• Start daily routines. Let your child become involved with packing her lunch and laying out her clothes the night before. Also, begin an earlier bedtime at least one week before.
• Pack the night before. Make sure your child packs her book bag every night before bed. This eliminates the morning rush and trying to locate stray items.
• Always say good-bye to your child. Be firm, but friendly about separating. Never ridicule a child for crying. Instead, make supportive statements like, "I know it's hard to say good-bye."
• Send a photo of your family or write a reassuring note and put it in his backpack or lunch box.
• At the end of the workday, put aside your work concerns and focus on being a parent.

Helpful Homework Hints

(that really work!)

Here are some ways to make homework time easier for you and your child: 

 

• Have a regular place for your child to do homework - a desk or table in a quiet room.
• Set a regular time for homework. You may want to make a rule, "No television until homework is finished."
• Set aside ample time for homework and help your child plan how she'll use her time.
• Be available to answer questions and offer assistance, but never do the homework for her.
• To help alleviate fatigue, have your child close the books for 10 minutes every hour and go do something else.
• If your child is struggling with a particular subject, and you aren't able to help, a tutor can be a good solution. Discuss it with the teacher first.
• Have your child do the most difficult homework first. Save "easy" subjects for last.
• Praise your child's good work. Your interest will encourage good work.

Backpack Safety

When choosing a backpack, look for the following: 

 

• Wide, padded shoulder straps. Narrow straps can dig into shoulders, causing pain and restricting circulation.
• Padded back. A padded back protects against sharp edges on objects inside the pack.

To prevent injury when using a backpack, do the following: 

 

• Pack light. The backpack should never weigh more than 10 to 20 percent of the student's body weight.
• Always use both shoulder straps. Slinging a backpack over one shoulder can strain muscles and may increase curvature of the spine.
• Organize the backpack to use all of its compartments. Pack heavier items closest to the center of the back.
• Use a rolling backpack. This type of backpack may be a good choice for students who must tote a heavy load. Remember that rolling backpacks still must be carried upstairs, and they may be difficult to roll in snow.

Courtesy of the American Academy of Pediatrics (AAP).

Children and Moving

When a family move becomes inevitable, it is important to involve your children in the process. Since moving can cause some concerns for children, like going to a new school, leaving friends, and unfamiliarity about the new neighborhood, things will go a lot easier if your children support your efforts to get your current home sold. It is important that children keep their toys and clothes put away, and teenagers understand about keeping their room in "showing" condition. Also, showing a family home is much more successful for the realtor if the family is away. Make an effort to include everyone in the discussions about the move and your children on house hunting trips. Contact a realtor who is comfortable with children and will be sensitive to their needs and concerns.

 

New House, New School?

Try This...

• If possible, give your child three months' notice before an upcoming move, so that he has time to get used to the idea.
• Explain the reason for relocating.
• Familiarize your child with her new neighborhood ahead of time.
• Emphasize the positive aspects of the move.
• Contact the school your child will be attending and arrange a time to visit.
   

Best Bet Home Improvements - Get the Most Renovation Bang for Your Buck!

Best Bet
If you're looking to improve the appearance of your home for resale, or you just want an updated look for your own enjoyment, there are a few things you must consider before beginning any costly project.

Sure, you can spend a lot on something purely for the personal pleasure of having it - like that outdoor Jacuzzi under the attached gazebo - or you can go the practical route and make an improvement that will increase your home's market value, such as installing energy-efficient air-conditioning or repairing those shabby shingles. Be forewarned, however, and don't expect to recoup your costs on both counts. Many real-estate brokers agree that just because you put $25,000 worth of improvements into your home doesn't mean that your house is worth $25,000 more!

Exactly how much of your investment you'll recoup depends on a number of factors, such as the "big picture" housing market, the value of the homes in your neighborhood, when you plan to sell and the exact nature of the improvement. Also, consider that the longer you live in your home after a project is completed, the less likely you are to recoup its value. Just try to convince a potential buyer that Harvest Gold is cutting edge.

Below are some examples of a few improvements that usually pay off - and some that rarely make a difference (no matter how much you paid for them) when it comes time to sell your home.

Painting
If you're planning to sell your home in a year or two, a fresh coat of a neutral-toned paint could make the sale easier. A professional exterior paint job may also recoup close to 75% of its cost. Let's face it - we all like things fresh-looking.

Kitchen
With just a few basic improvements, your kitchen can practically pay you back with interest! New paint, wallpaper and flooring are always appreciated; plus, you might even consider sanding, staining or painting worn-looking cabinets. Replacing old cabinet hardware is a low-cost improvement that makes a big difference in appearance. According to Remodeling magazine, the average spent on major kitchen-remodeling is around $39,000; refinishing an outdated one averaged $15,000. The full kitchen remodeling recouped 80% of its cost, the more moderate remodeling was valued at 87%.

Area Conversions
Generally speaking, increasing the functional space of your home holds its value longer than remodeling just to make a house look better. It's also much less expensive than adding an addition to your home. Converting attic space into a bedroom, for example, usually costs around $30,000 and returns about 73% of its cost, according to Remodeling magazine. Turning your basement into extra living space costs, on average, $40,000, with a recoup average of about 69% of your costs.


Extra Bathroom
You usually can't go wrong by adding an extra bathroom. At an average cost of $14,200, a new full bath can recoup 81% of its total cost!


Deck
Adding a deck is a very cost-efficient way to add square footage to your house. Decks cost around $6,000 and generally recoup 75% of their value. Compared to other outdoor improvements (except painting), that's an excellent return.


New Windows
Your utility bill savings may make up for the iffy resale value, however, a good set of standard windows should get you around 68% back. If you start getting too fancy with custom shapes and sizes, though, don't expect to get as much in return.


Swimming Pool
In a word - don't! Unless you're putting it in for you and your family to enjoy, it's commonly agreed that a swimming pool has no resale value at all. Reason #1? Sure, they sound nice, but pools are very expensive to maintain. Running a close second is the fear of pool accidents - that's something nobody wants to experience.


Picture-Perfect Gardens
Another nicety, but who's going to spend all that time - and money? If the potential buyer is not horticulturally inclined, chances are your floral handiwork won't add to the offering price. The same can be said for expensive fences and stone walls - they look nice, but buyers don't pay up for them.


Basic Is Better
It may not sound very exciting, but it's the basic improvements you make to your home that may have the greatest return on its value: a beautiful new bathroom won't make up for a leaky roof. So if you're thinking of selling your house in the next year or so, be sure to address any problems the home may have before you, say, install those sunken gardens you've always dreamed of.