The only people who scan the Sunday paper for real estate ads these days are the sellers whose homes are featured and the agents who paid for the advertising. Advertising in the newspaper may have been an effective real estate tool 15 years ago, but it is a total waste of money and ink today. Aside from the fact that newspaper readership has nose-dived annually since the ‘90s; serious home buyers simply do not look to the newspaper to find their new homes. Fact: The newspaper is a lousy way to find a house. For example, in the Des Moines metro area, there are currently more than 9,000 residential homes and lots for sale on the multiple listing service (MLS), yet in the September 13, 20009, Des Moines Register, only 628 properties were advertised-less than 7 percent. Picking up the paper may be worth the $1.50 for news and pizza coupons, but it gives a very small glimpse of properties on the market.
According to the 2008 National Association of Realtors, nearly 90 percent of home buyers use the Internet to search for homes. With mega real estate websites like realtor.com, zillow.com, craigslist and the websites of local real estate brokers like Remax and Iowa Realty, buyers can browse the complete inventory of properties on the market, read the property details and view scores of full color photos. With 24-hour, free access to this wealth of information, the internet has all but made newspaper advertising of real estate obsolete. Today's successful realtors spend their marketing dollars insuring that their listings have high-quality photos online, complete information and earn top billing with search engines.
The other dying bastion of real estate marketing is the open house. Here's the truth. Agents host open houses to help themselves, not their sellers. With the exception of new construction, serious buyers do not attend open houses. Serious buyers make appointments to see homes they are interested in through their realtor or the listing agent. Casual buyers, neighbors, and lookie-lous attend open houses. Agents who regularly host open houses don't expect to sell the listing with the open house. They are hoping to meet new prospective buyers. Less than 1 percent of homes are sold through open houses.
Alas, one thing hasn't changed about home buying and selling over the years-the value of a qualified and knowledgeable realtor. Utilizing the professional services of a realtor whether buying or selling saves people time, money and headaches. More than 90 percent of homes continue to be bought and sold through the assistance of professional realtors. So, if you are looking to buy or sell, all you need is access to the internet and a great realtor!
Here's some good news for the first day of September. The National Association of Realtors (NAR) reports today that nationally pending home sales have risen consecutively for the past six months. According to the NAR, the consistent rise is unprecedented in the history of the index, which began in 2001.
"The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased by 3.2 percent to 97.6 from a reading of 94.6 in June and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007, when it was 100.7," the NAR reports.
In the Midwest, the index slipped 2.0 percent to 88.1, but is still 8 percent above a year ago. In central Iowa, the real estate market is definitely improving in recent months. Sales are increasing, the average home price is inching back up, and interest rate remain low (5.27% for a 30 year fixed rate as I write this).
Most experts agree that the first-time home buyer tax credit is helping to spur the rebound in the housing market. But unless Congress grants the program an extension, time is running out to take advantage of the credit, which expires Nov. 30, 2009. Contracts must be completed by that date and it can take up to 2 months top complete a home sale in the current market.
Currently there are bills before the U.S. House and Senate that would extend the highly popular first-time home buyer tax credit into 2010. Currently set to expire on November 30, 2009, the maximum $8,000 tax credit has been a highly successful tool in spurring the dismal housing market. There is discussion in Congress to not only extend the credit, but also raise it to a maximum of $15,000 and allow it to apply to all buyers, not just first-time home buyers. If any form of the this extension passes, this will have a huge positive impact on housing and home prices across the board.
According to the Iowa Association of Realtor (IAR) July 2009 Housing Trends report, Iowa home sales increased 4.5 percent in July. However, the average price dropped 1.7 percent. Compared to a year ago, Iowa home sales have increased 0.8 percent to 3,480 while the average sale price of homes increased 0.1 percent to $148,692.
IRA President Terry Knapp told the Des Moines Business Record that he attributes the slight drop in home price to the recent first-time homebuyer activity. First-time homebuyers typically buy more modestly priced homes. And, with the first time home buyer tax credit and low interest rates, it's been a great time to be a first-time home buyer.
Homes averaged 103 days on the market in July, down three days from June, but up nine days from July 2008.
Meanwhile, national foreclosure filings have increased by 7 percent from June and 32 percent from last year this time, CNNMoney.com reports. More than 87,000 properties were repossessed by lenders, bringing the year-to-date total to 464,058 repossessions.
One in every 355 U.S. homes had a filing in July, with Arizona (one of every 135) and Florida (one of every 154), hit the worst. Las Vegas topped the list of cities for the 31st consecutive month, with one filing for every 47 homes.
Ready to buy your first house? Hurry, the $8k tax credit ends December 1! Here's how it works: http://tinyurl.com/ld7pfs
Call at 515-422-4731 or email me at cyphillips@remax.net for more information or to get started finding your dream house. I would love to help you make it happen!
Serving West Des Moines, Waukee, Clive, and Urbandale and the surrounding suburbs has allowed me to become very familiar with the area, please contact me and let me share some of my knowledge with you
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
