CNNMoney.com recently published an article "Housing: Best Recovery Bets," and ranked Rochester #4 on the list. With a rise of 5.2% in home values since 2006, the article predicts an additional gain of 2.2% by 2011.
The article cites Rochester as being successful at reinventing itself, no longer dependent on "old economy companies like Eastman Kodak and Xerox." Instead, "the slack has been picked up by such newer companies as Paychex....as well as high-tech optical companies." The article states that the current unemployment rate is 8.1, below the national average of 9.6%. A nod is given to our higher learning institutions, including the University of Rochester and Eastman School of Music.
As we mention all the time, Rochester didn't experience the "boom" that occured in many parts of the country but we've been gaining while others markets have "busted" in recent years. Another significant statistic for Rochester is our median household income, which at $63,000 is higher than the national median. Combined with our affordable housing stock, many area residents are able to achieve the dream of homeownership.
Bankrate.com conducted a recent survey of consumers and asked if they still believe buying a home is a great investment for the future -- 92% of the respondents said yes! One unknown right now is the extension of the tax credit. The National Association of Realtors has estimated 1.4 million first time buyers qualified for the tax credit and of that total 350,000 (25%) would not have bought a home if they didn't get the tax credit. But we have to remember that 1,050,000 first-time buyers bought a house regardless of any credit (althought getting $8,000 was a nice perk!).
Rochester has a perfect storm brewing in the housing industry -- low interest rates, affordable housing, a healthy inventory to choose from, lower unemployment rates, higher median income. Now if we could just get those property taxes under control...but at least the County did not raise the rate this year in the recently released budget.
Other cities that made the CNNMoney.com list include San Francisco, Seattle, Pittsburgh, Memphis, Oakland and Birmingham.
Interested in buying or selling a home? Call a Nothnagle agent direct or 899-MOVE. Our agents have the experience and training to handle all market conditions. Get More with Nothnagle!
Wednesday, October 28, 2009
Monday, October 26, 2009
What America Will Look Like in 2010
The New York Post featured an article on 10/25/09, regarding the upcoming census. Peter Francese, a demographic trends analyst sees four major trends for 2010.
1) The article states that by 2010 there will be close to 70 million grandparents in the U.S., a dramatic increase from 47 million in 1990. There is an increase in multiple generations residing in one house (grandparents, their children, their grandchildren). Also, Americans 50 years and older show the most economic growth and control the vast majority of assets. Francese thinks advertising dollars should shift from the current 10% spent on that demographic to 40%.
2) Within 6-12 months, women will comprise the majority of the workforce. The author cites the recession as one cause -- the two hardest hit industries (construction and manufacturing) are male-dominated and the least-hit (education and health care) are favored by women.
3) Fastest growing segment is the Hispanic population and the slowest growing is white non-Hispanic.
4) South and West are growing in population while the Midwest and Northeast continue to decline.
Sources: Census: What America Will Look Like in 2010 by Maureen Callahan;
For the complete white paper from Peter Francese (Ogilvy & Mather-New York), visit adage.com.
1) The article states that by 2010 there will be close to 70 million grandparents in the U.S., a dramatic increase from 47 million in 1990. There is an increase in multiple generations residing in one house (grandparents, their children, their grandchildren). Also, Americans 50 years and older show the most economic growth and control the vast majority of assets. Francese thinks advertising dollars should shift from the current 10% spent on that demographic to 40%.
2) Within 6-12 months, women will comprise the majority of the workforce. The author cites the recession as one cause -- the two hardest hit industries (construction and manufacturing) are male-dominated and the least-hit (education and health care) are favored by women.
3) Fastest growing segment is the Hispanic population and the slowest growing is white non-Hispanic.
4) South and West are growing in population while the Midwest and Northeast continue to decline.
Sources: Census: What America Will Look Like in 2010 by Maureen Callahan;
For the complete white paper from Peter Francese (Ogilvy & Mather-New York), visit adage.com.
Wednesday, October 21, 2009
5 Real Estate Scams to Beware of
The best rule of thumb to go by is if it seems too good to be true, it probably is. To report scams, contact the NYS Attorney General’s office (or your state A.G. outside of New York).
1. Foreclosure rescue/loan modification programs. Be wary of any service that is charging you an upfront fee prior to performing the service. There are HUD-approved agencies that will assist distressed homeowners at no charge. In Rochester, http://www.thehousingcouncil.org/ is a HUD-approved counselor and offers free services.
NEVER deal with anyone who asks you to a) sign over the deed to your house; b) make payments directly to the counselor; or, c) tries to get you to sell them your house with the offer that they will then rent it back to you. No legitimate agency will ask you to do any of these things.
2. Craigslist rental scams. Beware of rental postings on Craigslist that ask you to send any money prior to seeing the property. One of the more popular postings claims that they are going to Africa to do missionary work and cannot show you the property. Again, a common theme is that the rental price seems too good to be true and they typically are not asking for a lot of money. Also, another sign these postings are not legit is the improper useage of English/grammar (e.g. I am pleased to know you).
3. Several individuals in NY were charged with felony fraud for posing as professionals with access to an “exclusive apartment list” and requiring individuals to pay a $200 search fee. No search was ever done. When people complained, they were ignored or issued a bad check as a refund. Again, they were asking for a nominal amount which people may not be as cautious about handing over. But a little amount times a lot of people adds up!
4. Exploiting reverse mortgages. Perpetrators take advantage of senior citizens and will typically target seniors through promotions in churches, holding investment seminars and direct mailers. Please note: There are LEGITIMATE reverse mortgage programs. Talk to a reputable lender or visit the HUD website. The scams again can often be identified as being too good to be true. Con artists look for seniors in distress – offering reverse mortgages initially, then telling them they don’t qualify but offer another mortgage product and eventually they lose any remaining equity and their home. Another common scheme is to entice seniors to take out a reverse mortgage and invest the money in annuities, real estate or some other investment product that does not exist in reality.
5. Manufactured homes and deposits. Potential buyers respond to an ad offering manufactured homes for sale. The seller claims to work for a lender and tells the buyer they can get them a loan with no difficulty. The seller requires a large deposit first to reserve the property. Once the money is paid, the seller is no where to be found. Again, there are LEGITIMATE offerings of manufactured homes but make sure you verify them as legit BEFORE you pay out any money.
Additional resources:
Better Business Bureau
FBI
NYS Consumer Protection Board
1. Foreclosure rescue/loan modification programs. Be wary of any service that is charging you an upfront fee prior to performing the service. There are HUD-approved agencies that will assist distressed homeowners at no charge. In Rochester, http://www.thehousingcouncil.org/ is a HUD-approved counselor and offers free services.
NEVER deal with anyone who asks you to a) sign over the deed to your house; b) make payments directly to the counselor; or, c) tries to get you to sell them your house with the offer that they will then rent it back to you. No legitimate agency will ask you to do any of these things.
2. Craigslist rental scams. Beware of rental postings on Craigslist that ask you to send any money prior to seeing the property. One of the more popular postings claims that they are going to Africa to do missionary work and cannot show you the property. Again, a common theme is that the rental price seems too good to be true and they typically are not asking for a lot of money. Also, another sign these postings are not legit is the improper useage of English/grammar (e.g. I am pleased to know you).
3. Several individuals in NY were charged with felony fraud for posing as professionals with access to an “exclusive apartment list” and requiring individuals to pay a $200 search fee. No search was ever done. When people complained, they were ignored or issued a bad check as a refund. Again, they were asking for a nominal amount which people may not be as cautious about handing over. But a little amount times a lot of people adds up!
4. Exploiting reverse mortgages. Perpetrators take advantage of senior citizens and will typically target seniors through promotions in churches, holding investment seminars and direct mailers. Please note: There are LEGITIMATE reverse mortgage programs. Talk to a reputable lender or visit the HUD website. The scams again can often be identified as being too good to be true. Con artists look for seniors in distress – offering reverse mortgages initially, then telling them they don’t qualify but offer another mortgage product and eventually they lose any remaining equity and their home. Another common scheme is to entice seniors to take out a reverse mortgage and invest the money in annuities, real estate or some other investment product that does not exist in reality.
5. Manufactured homes and deposits. Potential buyers respond to an ad offering manufactured homes for sale. The seller claims to work for a lender and tells the buyer they can get them a loan with no difficulty. The seller requires a large deposit first to reserve the property. Once the money is paid, the seller is no where to be found. Again, there are LEGITIMATE offerings of manufactured homes but make sure you verify them as legit BEFORE you pay out any money.
Additional resources:
Better Business Bureau
FBI
NYS Consumer Protection Board
Monday, October 19, 2009
The Argument for Buying vs. Renting
Homeowners typically have substantially greater net worth than renters. In 2007, the Federal Reserve Board indicated the median net worth for homeowners was $234,200 compared to $5,100 for renters. As a homeowner you build wealth in two ways -- by paying down the mortgage principle and through the appreciation of the home. In addition to building wealth, there are many other advantages to owning your own home, including tax advantages as well as having the freedom to do what you want with your own personal space. In the Rochester market, our homes typically appreciate in value but usually not as rapidly as other parts of the country. Conversely, they also haven't depreciated as they have in other markets. Even with the ups and downs of the housing market, real estate traditionally is much less volatile of an asset than stocks.
Are you sitting on the fence trying to time the market? While price is an important factor, it should not be the only factor driving your decision. More importantly, the focus should be on the cost of owning a home. Cost takes into account more than just price. Cost is what your monthly/annual expense is to own a home. Interest rates have been incredibly low, allowing for many people to afford "more house." If prices drop 10% but interest rates go up 1%, how does this affect your monthly payment? In most cases, your monthly cost will go up. Historically, when interest rates have hit bottom they then go up "quickly and dramatically." It's difficult to predict the market, but if history is a good indicator we will see interest rates take a sudden and significant jump in the future.
When looking at your monthly cost, you also should take into account the tax advantages. Don't forget, your mortgage interest and property taxes are deductible. You may want to seek the advice of your accountant (or tax preparer) to help you calculate your anticipated deduction based on your tax bracket or visit the IRS Website.
Nothnagle agents are trained to handle all market conditions and have the expertise to help you take full advantage of the tremendous opportunities that are out there! Call a Nothnagle agent directly today to get started.
Are you sitting on the fence trying to time the market? While price is an important factor, it should not be the only factor driving your decision. More importantly, the focus should be on the cost of owning a home. Cost takes into account more than just price. Cost is what your monthly/annual expense is to own a home. Interest rates have been incredibly low, allowing for many people to afford "more house." If prices drop 10% but interest rates go up 1%, how does this affect your monthly payment? In most cases, your monthly cost will go up. Historically, when interest rates have hit bottom they then go up "quickly and dramatically." It's difficult to predict the market, but if history is a good indicator we will see interest rates take a sudden and significant jump in the future.
When looking at your monthly cost, you also should take into account the tax advantages. Don't forget, your mortgage interest and property taxes are deductible. You may want to seek the advice of your accountant (or tax preparer) to help you calculate your anticipated deduction based on your tax bracket or visit the IRS Website.
Nothnagle agents are trained to handle all market conditions and have the expertise to help you take full advantage of the tremendous opportunities that are out there! Call a Nothnagle agent directly today to get started.
Monday, October 12, 2009
Real Estate Historically is a Good Investment
People ask all the time, is it a good time to buy? The answer is if you view real estate as a long term investment....the answer is almost always "yes." Nationally, since the 1940's home prices have risen an average of 4% annually. The National Association of Realtors began tracking statistics in 1968 and since that time, the average annual increase in median sales price has been 6%. In the local market, while prices rose slightly during the peak of the recent market, our appreciation was not as dramatic as other parts of the country (e.g. California, Arizona, Florida) but on the positive side, it also was not as dramatic of a decrease either. Markets in some other parts of the country have been devestated by the rapid depreciation in sales prices and many people now own homes that are worth less than what they owe. Over time, most of these homeowners will recover the value of their homes if they view this as a longterm investment.
Median prices in Rochester remain stable and the 2nd and 3rd quarters of 2009 have been very strong. At Nothnagle Realtors, the 2nd quarter of 2009 equalled 40% of all sales that occured in 2008....a tremendous quarter for the company.
There are many benefits to homeownership and today is a great time to buy a home. Many people jump in when the market is "hot" but the ideal conditions exist today with the low interest rates available, healthy supply of inventory to choose from and the promise of a solid long term investment.
Nothnagle agents are trained to handle all market conditions and have the experience and expertise to guide you. Call a Nothnagle agent direct or 899-MOVE to get started.
Median prices in Rochester remain stable and the 2nd and 3rd quarters of 2009 have been very strong. At Nothnagle Realtors, the 2nd quarter of 2009 equalled 40% of all sales that occured in 2008....a tremendous quarter for the company.
There are many benefits to homeownership and today is a great time to buy a home. Many people jump in when the market is "hot" but the ideal conditions exist today with the low interest rates available, healthy supply of inventory to choose from and the promise of a solid long term investment.
Nothnagle agents are trained to handle all market conditions and have the experience and expertise to guide you. Call a Nothnagle agent direct or 899-MOVE to get started.
Thursday, October 8, 2009
Vote for Rochester's Choice Awards
Please help Nothnagle continue its longstanding record of being named Rochester's Choice for Real Estate by casting your vote in this year's contest! For 7 consecutive years (since the awards inception), Nothnagle has been honored by the community with this distinguished award. This year, voters can also select Nothnagle in two additional categories -- Local Website (nothnagle.com) and Insurance Company (Nothnagle Insurance Agency). You must vote in at least 15 categories to be counted. It's easy to do and fun to select all of your "favorites" in and around Rochester. Visit the Rochester Choice voting site to cast your vote today. Thank you in advance for making Nothnagle Realtors Rochester's Choice!
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