Montgomery, AL

The Federal Housing Administration is a primary source of mortgage financing for millions of America's families and plays a key role in helping bring stability to the housing market. This is the message that the National Association of Realtors^® delivered to the Senate Appropriations Subcommittee today.

"Without FHA financing, families would be unable to purchase homes and communities would suffer from continued foreclosures and blight," said Lennox Scott, a member of NAR's Real Estate Advisory Board and CEO of John L. Scott Real Estate in Bellevue, Washington. In his testimony, Scott shared NAR's belief in the importance of FHA and concern for the safety and soundness of its programs due to its dramatic growth over a short period of time.

"We believe that FHA has done a good job stepping up to today's market challenges. However, along with the dramatic growth in market share comes greater responsibility and the need for increased infrastructure and staff," Scott said. Over the past 18 months, FHA has handled an increase in volume four times greater than 2007 levels, increasing its market share to over 30 percent.

Of the 325 homes sold in the Montgomery MLS during March, 101 were FHA-financed. And FHA was the loan of choice in 40% of the total non-cash sales. With the Alabama Housing Finance Authority's First Step and Step-Up programs becoming increasingly popular, we anticipate that percentage will continue to grow. Let's take a look at the March sales statistics to see how the Montgomery AL real estate market looks:

Montgomery AL real estate sales statistics for March show pending sales increase by 14% in 2009 compared to March 2008, the average sales price decreased by 9% to $129,037 while sold listings were down 43% from 2008. Market times showed an increase of 19 days or 20% from 2008.

In reviewing the stats above, it is important to remember that foreclosures in the less affluent areas of Midtown have contributed significantly to the decilne in average selling price. When the 7 foreclosures sold in March are removed from the totals, the actual average sale price increases to $135,312.

For the latest Montgomery AL real estate market conditions in your area, please call me at 800-HAT-LADY or visit HomesForSaleInMontgomeryAlabama.com.

Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed.

One man's loss is another man's gain and right now buyer's have everything to gain. It was only a few short years ago that sellers controlled the market and were calling the shots. In order to buy a home, buyers were paying over the asking price, foregoing home inspections and paying all their own closing costs. Montgomery home buyers were jumping through any and all hoops. Now the market has shifted. The strong sellers' market is a thing of the past and it is the sellers who are jumping through hoops. Buyers are calling the shots with offers that include home inspections; requests that closing costs, homeowner association fees and inspection fees be paid by the seller; decorating allowances; home improvement; and prices far below the asking price. So why are Montgomery home buyers hesitating? Fear of a tanking economy, falling home prices and job instability are concerns for many potential home buyers. But if you are financially stable and plan to stay in a home for at least five years, there are 5 top reasons to buy a Montgomery home in 2009: 1. Homes are affordable. According to the National Association of Realtors' housing affordability index, homes were more affordable in December than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.

A recent report from Moody's Economy.com predicted that house prices will stabilize by the end of this year. The Office of Federal Housing Enterprise Oversight's Web site has a house price calculator that can help. Visit the calculator. 2. There are lots of homes to choose from. The slow down in the housing market has caused homes to stay on the market longer, creating a huge inventory. There was a 9.6-month supply of unsold existing homes in January given that month's sales pace, according to NAR. A large inventory gives buyers more selection, driving down prices. As buyers start to jump back into the market, the inventory will shrink and cause prices to start going back up. The time to get the best deal is before most buyers buy. 3. Builders are offering perks. New home builders are offering price reductions, free upgrades and other perks such as free appliances, homeowners' fees being paid, lower interest rates decorating allowances. Once their inventory shrinks, these perks will go away. 4. Interest rates are at historical lows.
Lenders are not lending as freely, but if you have good credit and the needed down payment, mortgage interest rates are historically low and hovering around 5 percent. 5. There is an $8000 tax credit

If you are a first-time Montgomery home buyer, you will qualify for an $8000 federal tax credit if you buy before December 1, 2009. Unlike the previous tax credit offered in 2008, this does not have to be repaid. Extra money comes in handy when buying a home. Trying to decide if buying a Montgomery home in 2009 is right for you. Visit HatTeam.com or give me a call. I'm glad to review your situation with you.

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If you have a home that only you can love, you will benefit for these 8 low cost fixes to getting your Montgomery home sold quickly. We don't live in a house the way we sell a house. Buyers aren't interested in seeing dirty socks lying around or dirty dishes in the sink. Below are a list inexpensive things, from Realtor Magazine, that you can do to make buyers fall in love with your Montgomery home.

1. Move it. Simply rearranging the furniture can reenergize a room. Add and remove furniture, lamps, rugs, and accessories from other parts of the house to create a whole new look. Mirrors are particularly useful when it comes to updating a room. Try one out in different rooms to see where it fits best. Even just moving a mirror to a different wall can create a more welcoming feel.

2. Plant it. Houseplants are a generally undervalued design component that can add texture, warmth, and color to any room. Just drop plants in their store containers into decorative planters. Small plants can be moved easily and regrouped to change a room's look, while larger ones make a statement on their own.

Group plants together of differing heights, fullness, and color for the most dramatic effect. It's important to have plants that are well maintained and in tip-top condition.

3. Paint it. Paint is one of the easiest and most cost-effective ways to make a substantial change. Use dramatic colors in powder rooms and dining rooms, and more neutral colors in living spaces. When selecting colors, "be sure to ask, 'What am I trying to do? How do I want this to feel?'" And always, always do a test before you paint the whole room.

4. Organize it. Clutter just happens. So neaten up! A variety of organizing tools can make a space feel polished while maintaining utility. Hooks and shelves inside the door give people a place to hang coats and keys, while canvas bins or natural baskets help contain magazines and mail. Just a row of hooks pre-attached on a board is so easy to install. And shelves are a great way to neatly display collectibles.

5. Hide it. Have a banged-up wall? It may be easy to camouflage. Paintable wallpaper will smooth out an uneven wall or hide minor dents and dings. Adventurous home owners can even try a simple two-step painting process for a more complex finish. A apply a solid base coat, then a glaze.

Your intent should never be to mislead buyers; be sure to disclose flaws that would affect home value.

6. Replace it. Cabinet handles, switch plates, and other small pieces of housing hardware can update a home for just a few dollars a piece. Scan each room to see what looks worn or outdated and then replacing it. Inexpensive quick-connect faucets can make upgrading the look of your bathroom a snap. Just be sure to measure before you go to the hardware store. Some sinks are drilled for an eight-inch spread. Others require just four inches.

And don't forget the toilet seat. Fresh towels and a new toilet seat go a long way toward making a bathroom feel clean and new.

7. Light it. Lighting can have a major impact on a home's look and feel. Whether a room seems dark or too bright and harsh, try "layering" the lighting by adding accent pendants and lamps. Make sure they have independent controls, so that you can turn them on and off at will. Light is such a mood setter. You can create a cozy feel just by turning down the lights. Add dimmers in the dining room, bathrooms, kitchen, and even the hallways for less than $4 each. Then adjust the lighting to create the mood you want.

8. Clean it. Turn a critical eye to the flooring to make sure it's up to snuff. Scrub grout and seal natural stone. Rub out scratches and nicks on wood floors with scratch cover. Get down on your hands and knees and detail the floors. It takes a little elbow grease, but the results are well worth it. Vinyl flooring is a bit harder to spruce up but usually can be replaced easily and inexpensively.

Interested in selling your Montgomery home? Give me a call, I'm glad to help!

What's my Montgomery home worth?

Montgomery just keeps getting better! In Forbes Magazine's 11th annual ranking of the Best Places for Business and Careers, Montgomery ranked 49, up from 102 last year and 120 in 2007. Fueling Montgomery's rise in the rankings is the "Projected Job Growth" for the Montgomery Metro - rising from 57 in 2008 to 17 this year. In fact all of Alabama's metros are in the top 20 metros, out of 200 metros.

The rankings are determined by a series of metrics established by Forbes ranking factors including local colleges, educational attainment of residents, and quality of life offerings.

With 651,000 jobs in February and 4.4 million since the recession began in December 2007, this is quite an accomplishment for Montgomery. Kudos to all!!

Pending homes sales continued their decline as potential buyers waited for clarity on the housing stimulus bill and the weakening economy according to the National Association of Realtors^®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in January, fell 7.7 percent to 80.4 from a downwardly revised reading of 87.1 in December, and is 6.4 percent below January 2008 when it was 85.9. The index is at the lowest level since tracking began in 2001, when the index value was set at 100.

Lawrence Yun, NAR chief economist, said the downturn in the economy also weighed heavily on the data. "Even with many serious potential home buyers on the sidelines waiting for passage of the stimulus bill, job losses and weak consumer confidence were a natural drag on home sales," he said. "We expect similarly soft home sales in the near term, but buyers are expected to respond to much improved affordability conditions and from the $8,000 first-time buyer tax credit."

Let's take a look at the Midtown Montgomery real estate sales statistics for February to see how the market looks:

Montgomery AL real estate sales statistics for February show pending sales decreased by 36% in 2009 compared to February 2008, the average sales price increased by 31% to $190,729 while sold listings were down 4% from 2008. Market times showed an increase of 2 days or 2% from 2008.

While February pending sales this year were down 36% compared to 2008, the average sale price of closed sales in the same month was up 31% to $190,729. This is a clear indicator that last year's statistics were heavily affected by foreclosure sale activity in Montgomerys' least expensive market areas. Unit sales held steady with only a decrease of one homesale February 2009 vs 2008. Active inventory continues to decline, with the number of homes on the market for sale down over 10% in February 2009 vs 2008. Declining inventories are one of the earliest signs of a market recovery. And we expect a big spike in first-time buyer sales this spring as Montgomerians realize they can acquire a home with very little cash outlay and get back as much as $8,000-10,000 at tax time.

For the latest Montgomery AL real estate market conditions in your area, please call me at 800-HAT-LADY or visit HomesForSaleInMontgomeryAlabama.com.

Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed.