Grayson Hodge

Seven Out of 10 Renters Say Owning a Home Is a Top Priority

RISMEDIA, July 8, 2011-Most Americans still believe that owning a home is a solid financial decision, and a majority of renters aspire to homeownership as a long-term goal. According to the 2011 National Housing Pulse Survey released recently by the National Association of REALTORS®, 72 percent of renters surveyed said owning a home is a top priority for their future, up from 63 percent in 2010.

Seven in 10 Americans also agreed that buying a home is a good financial decision while almost two-thirds said now is a good time to purchase a home. The annual survey, which measures how affordable housing issues affect consumers, also found that more than three quarters of renters (77 percent) said they would be less likely to buy a home if they were required to put down a 20 percent down payment on the home, and a strong majority (71 percent) believe a 20 percent down payment requirement could have a negative impact on the housing market.

"Despite the economic setbacks Americans have experienced in today's current climate, it is clear that a strong majority still believe in homeownership and aspire to own a home," says NAR President Ron Phipps. "However, achieving the dream of homeownership will become increasingly difficult for buyers if they are required to make a 20 percent down payment, which may be a reality for many of tomorrow's buyers if a proposed Qualified Residential Mortgage rule is adopted. That is why REALTORS® are strongly urging regulators to go back to the drawing board on the proposed rule."

Defining the QRM rule is important because it will determine the types of mortgages that will generally be available to borrowers in the future. As currently proposed, borrowers with less than 20 percent down will have to choose between higher fees and rates today-up to 3 percentage points more-or a 9-14 year delay while they save up the necessary down payment.

Over half-51 percent-of self-described "working class" homeowners as well as younger non-college graduates (51 percent), African Americans (57 percent) and Hispanics (50 percent) who currently own their homes reported that a 20 percent down payment would have prevented them from becoming homeowners.

Pulse surveys for the past eight years have consistently reported that having enough money for a down payment and closing costs are top obstacles that make housing unaffordable for Americans. Eighty-two percent of respondents cited these as the top obstacle, followed by having confidence in one's job security.

The survey also found respondents were adamantly against eliminating the mortgage interest deduction. Two-thirds of Americans oppose eliminating the tax benefit, while 73 percent believe eliminating the MID will have a negative impact on the housing market as well as the overall economy.

"The MID facilitates homeownership by reducing the carrying costs of owning a home, and it makes a real difference to hard-working American families," says Phipps. "Homeownership offers not only social benefits, but also long-term value for families, communities and the nation's economy. We need to make sure that any changes to current programs or incentives don't jeopardize our collective futures."

When asked why homeownership matters to them, respondents cited stability and safety as the top reason. Long-term economic reasons such as building equity followed closely behind. On a local level, respondents said neighbors falling behind on their mortgages and the drop in home values were top concerns. Foreclosures also continue to remain a large concern, with almost half of those surveyed citing the issue as a problem in their area.

The 2011 National Housing Pulse Survey is conducted by American Strategies and Myers Research & Strategic Services for NAR's Housing Opportunity Program. The telephone survey polled 1,250 adults nationwide, with an oversample of interviews of those living in the 25 most populous metropolitan statistical areas. The study has a margin of error of plus or minus 3.1 percentage points.

NAR's Housing Opportunity Program, www.realtor.org/housingopportunity, was created in 2002 to encourage local REALTOR® associations to create initiatives that help increase housing opportunities available to consumers and make affordable housing more readily available in their communities.

Information about NAR is available at www.realtor.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Housing Affordability Rises to Record Levels

RISMedia, May 28 2011-Nationwide housing affordability during the first quarter of 2011 rose to its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released recently.

The HOI indicated that 74.6 percent of all new and existing homes sold in the first quarter of 2011 were affordable to families earning the national median income of $64,400. This eclipsed the previous high of 73.9 percent set during the fourth quarter of 2010 and marked the ninth consecutive quarter that the index has been above 70 percent. Until 2009, the HOI rarely topped 65 percent and never reached 70 percent.

"With interest rates remaining at historically low levels, today's report indicates that homeownership is within reach of more households than it has been for more than two decades," says Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "While this is good news for consumers, home buyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales."

Syracuse, N.Y. was the most affordable major housing market in the country during the first quarter of the year. In Syracuse, 94.5 percent of all homes sold were affordable to households earning the area's median family income of $64,300.

Also ranking near the top of the most affordable major metro housing markets were Youngstown-Warren-Boardman, Ohio-Pa.; Indianapolis-Carmel, Ind.; Warren-Troy-Farmington Hills, Mich.; and Toledo, Ohio.

Among smaller housing markets, the most affordable was Kokomo, Ind., where 98.6 percent of homes sold during the first quarter of 2011 were affordable to families earning a median income of $61,400. Other smaller housing markets near the top of the index included Monroe, Mich.; Cumberland, Md.-W.Va.; Elkhart-Goshen, Ind.; and Springfield, Ohio.

New York-White Plains-Wayne, N.Y.-N.J., led the nation as the least affordable major housing market during the first quarter of 2011. In New York, 24.1 percent of all homes sold during the quarter were affordable to those earning the area's median income of $65,600. This marks the 12th consecutive quarter that the New York metropolitan division has held this position.

Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, Calif.; Los Angeles-Long Beach-Glendale, Calif.; Honolulu; and Santa Ana-Anaheim-Irvine, Calif., respectively.

San Luis Obispo-Paso Robles, Calif., where 47.6 percent of the homes were affordable to families earning the median income of $72,500, was the least affordable of the smaller metro housing markets in the country during the first quarter. Other small metro areas ranking near the bottom included Santa Cruz-Watsonville, Calif.; Laredo, Texas; Ocean City, N.J; and Santa Barbara-Santa Maria-Goleta, Calif.

Please visit www.nahb.org/hoi for tables, historic data and details.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

8 Tactics to Get Noticed across Time Zones

By Cindy Fauth

RISMedia, May 19, 2011-If your goal is to generate leads and referrals from international home buyers or sellers, it's a sound strategy to stand out from the crowd.

To reach that goal, jump-start your marketing initiatives with no-cost, low-cost and highly cost-effective tactics that can contribute to building awareness on the global market. Here are eight tactics to consider. Most employ social media and other online or digital resources, while others should provide fresh perspectives on how to maximize proven marketing resources.

1. Become a Blogger
A blog gives you the ability to publish your thoughts and perspectives online, and sites like WordPress and Blogspot let you create blogs at no cost. Benefits include greater visibility within the industry, driving sales leads and establishing yourself as a real estate thought leader. But before you enter the blogosphere, spend time to create a blog that establishes an identity and delivers a compelling message about your international real estate specialty. Schedule posts in advance and plan content to make better use of your time. Images and videos add excitement. Your success can be measured by the number of followers who read and contribute to discussion topics.

2. Find Fans Through Facebook
Here's a statistic that will draw attention: Facebook has more than 350 million active users around the world. Along with its social networking capabilities, Facebook lets subscribers set up free "fan pages." The page lets you share services and business information with other users. Here's the payback: When fans or supporters comment, that message gets distributed to their Facebook friends. Populate the page with news and updates about your international expertise, as well as images and links to relevant property or market videos. Get creative and set up a contest to drive fan participation.

3. Maximize No-Cost Web Site Classifieds
The legendary Craigslist online network pioneered the free advertising concept back in 1995 as a distribution list for friends. Others have followed, including Kijiji. This relatively new network of online urban communities also offers free classified listings and maintains a Housing category with 10 options. Kijiji, translated to "village" in Swahili, serves 34 countries and is the market leader in Canada, Germany, Italy and Taiwan. Unlike the bare bones design of Craigslist, the new kid offers a clean look and colorful icons.

4. Lights, Camera, Action: Go With Video
How prevalent is video in business and culture today? YouTube, the free online video sharing site, reports it serves more than 1 billion videos from around the world daily. Today, it's relatively easy to record good quality video content and make simple edits using a new generation of inexpensive digital cameras from Flip Video, Kodak and others. Based on Flash technology, these pocket- sized cameras let you effortlessly upload, view, edit and distribute videos. Add a portable stereo recorder to enhance audio, and you're well-equipped to record client testimonials and footage of properties for sale or lease. Post the video on YouTube and add a link to your Web site, blog or Facebook page.

5. Take it One Step Further with Cable Television
Once you become more adept with video, consider exploring low-cost purchased television advertising. The folks at Google offer a service called TV Ads that lets you bid on airtime on national cable channels and satellite networks. The TV Ads site provides research on specific shows, channels and airtimes so you can plan a media schedule that can reach the many ethnic audiences in markets across the nation. Need help creating an ad? Google also provides an Ad Creation Marketplace geared toward small businesses.

6. Don't be Shy, Ask for an Online Pat-on-the-Back
Launched in 2003, LinkedIn is a business-oriented social network with more than 55 million members. One tremendous benefit is a recommendation feature that gets posted to your profile. According to Teri Isner, a LinkedIn recommendation sends a powerful message. "You can only get so real, other than video, in the world of the Internet," she says. "A LinkedIn recommendation gives your happy customers the ability to give you the kudos you deserve." Enlist clients and fellow agents to write a recommendation that reflect your knowledge, success and dedication to adding value in the international real estate arena.

7. Cultivate a Global Brand
This may sound perfunctory, but it's imperative to define how you fit within the global market- place. Strategize on how to cultivate an international brand around you, your work and your successes. Start with a Web site or page dedicated to the kind of international business you conduct and incorporate a theme line, logo and images. Doing so will help you target your buyer prospects and fine-tune your message.

8. Print Classifieds Done Strategically
Many agents have shifted marketing dollars away from print newspaper advertisements for a couple of reasons. One, it can be expensive, and two, print media has been eclipsed by online communications in terms of reaching a target audience. A service called American Classified Services offers a solution. The firm sells discounted classified line and display ads that run in community and free newspapers in the U.S., Canada, and internationally. Work with company representatives to identify domestic publications that serve communities that have established or growing immigrant markets. Develop a consistent campaign to announce properties you have for sale or lease.

Cindy Fauth is the Global Marketing Manager for the National Association of REALTORS®

For more information visit www.realtor.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

In traveling around the country to real estate conventions and sales seminars over the past year I've discovered that the knowledge of QR Codes (Quick Response Barcodes) and the extent of their use in real estate is varied from region to region. Many agents don't even know what they are, but those that do haven't figured out how best to use them or are hoping that they will go away and they won't have to figure it out. Are they worthwhile and here to stay for a while or just another passing fad?

To answer the question you need only ask yourself another question. Does the product or new technology improve the service for the customer? And there's your answer, QR Codes do. They give your customers who are employing mobile technology instant, accurate information and instant communication with you through text if they have unanswered questions. But what is its best use and how do you get it out there?

Creating them is free on multiple sites online and you should put them on your signs, on any printed media, especially flyers, and yard signs on property. Put them on "Just Listed" cards and just about anywhere that you are already spending your marketing dollars. Did you know that nearly 75% of smartphone users recall whether an advertisement had a QR Code on it? How can you afford not to get in the game and start putting QR Codes on everything that you do? It's cheap and the consumer is expecting it.