RE/MAX In Motion

WASHINGTON, October 24, 2008

Existing-home sales increased last month as buyers responded to improved housing affordability conditions, according to the National Association of Realtors^®.

Existing-home sales - including single-family, townhomes, condominiums and co-ops - rose 5.5 percent to a seasonally adjusted annual rate¹ of 5.18 million units in September from a level of 4.91 million in August, and are 1.4 percent higher than the 5.11 million-unit pace in September 2007.

Lawrence Yun, NAR chief economist, said more markets are seeing year-over-year gains. "The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri and Rhode Island," he said. "The South was hampered by much lower home sales in Houston in the aftermath of Hurricane Ike."

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said low home prices and low interest rates have been attracting buyers. "This is the first time since November 2005 that home sales have been above year-ago levels," he said. "Credit tightened at the end of September, but the improvement demonstrates that buyers who've been on the sidelines want to get into the market to make a long-term investment in their future."

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.04 percent in September from 6.48 percent in August; the rate was 6.38 percent in September 2007.

Total housing inventory at the end of September fell 1.6 percent to 4.27 million existing homes available for sale, which represents a 9.9-month supply² at the current sales pace, down from a 10.6-month supply in August. This marks two consecutive monthly declines since inventories peaked in July.

The national median existing-home price³ for all housing types was $191,600 in September, down 9.0 percent from a year ago when the median was $210,500. "Compared to a fairly small share of foreclosures or short sales a year ago, distressed sales are currently 35 to 40 percent of transactions.

These are pulling the median price down because many are being sold at discounted prices," Yun explained. "The current market is not being dominated by speculative investors. Rather, 80 percent of current buyers are purchasing a primary residence, which is a bit higher than historic norms."

Single-family home sales increased 6.2 percent to a seasonally adjusted annual rate of 4.62 million in September from a pace of 4.35 million in August, and are 3.8 percent above the 4.45 million-unit level a year ago. The median existing single-family home price was $190,600 in September, which is 8.6 percent below September 2007.

Existing condominium and co-op sales were unchanged at a seasonally adjusted annual rate of 560,000 units in September, but are 15.7 percent below the 664,000-unit pace in September 2007. The median existing condo price⁴ was $199,400 in September, down 10.2 percent from a year ago.

Regionally, existing-home sales in the West jumped 16.8 percent to an annual rate of 1.25 million in September, and are 34.4 percent higher than September 2007. The median price in the West was $253,600, down 18.5 percent from a year ago.

In the Midwest, existing-home sales increased 4.4 percent to an annual pace of 1.19 million in September, but are 2.5 percent below a year ago. The median price in the Midwest was $152,500, which is 7.9 percent lower than September 2007.

Existing-home sales in the South rose 2.2 percent in September to a pace of 1.90 million but remain 7.8 percent below September 2007. The median price in the South was $167,200, down 4.1 percent from a year ago.

In the Northeast, existing-home sales slipped 1.2 percent to an annual pace of 840,000 in September, and are 7.7 percent lower than a year ago. The median price in the Northeast was $246,800, down 5.4 percent from September 2007.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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NOTE: References to performance in states or metro areas are from unpublished raw data used to analyze regional trends; please contact your local association of Realtors® for more information. ---

REMAX In Motion in Ithaca NY is a memeber of NAR. REMAX National Housing Report link.

That is the challenge but what is the answer? Historically, in a confident marketplace when buyers want to buy a new home, they find it, and put in an offer. Then put their home on the market. They price their home to sell and within 60 to 90 days everything complete and everyone is happy.

Currently in this market place this method is not working. We have experienced a slow down of offers on properties during our normally active market time, and we now have increased inventory that directly effects value. Buyers won't buy until they sell. They won't even put in an offer with a sale of home contingency. Why not? Don't know how or didn't know you could? It's how you protect yourself from owning two homes?

Bill Crane of CFCU stated today that the biggest challenge they have seen for their clients this year is not credit issues, or a lack of loans available but rather their clients have a home that needs to be sold first. Their homes are either outside the Ithaca market place, or in town and they do not want to be caught with two mortgages.

A good Realtor knows how to write an offer with a sale of home contingency and protect their buyers. A better Realtor knows how to get it accepted. The best realtor will explain it to the seller, advocate for this contingency, will create a WIN/WIN for both the buyer and the seller and see it through to closing. There are many aspects of this contingency that need to be carefully examined and negotiated. Ask questions, if it doesn't make sense ask again.

Currently for October 2008 there have been 66 homes that have had an offer on them. That's alot for Ocotber. 93 homes have made it to the "funding in place ready to close" status. That's great news. However, there are only 5 homes in a sale of home status. This could help everyone, if you are in this dilemma, and don't want to lose out on the opportunity to get the home you really want ask about this contigency.

To find out what it happening in your world of real estate ask a RE/MAX agent, we know our market and we can help you to know yours.

Melissa Miller Broker Owner

Warning: (November 21, 2007) - RE/MAX is concerned about on-line consumer fraud. It has come to our attention that classified ads for rental properties featured on Craigslist have attempted to convince potential renters to pay rental deposits by incorrectly stating that a RE/MAX office would be facilitating the transaction.

Responding to email inquiries, the landlord says that she/he is out of the country and is working with a RE/MAX office in the country where she/he is located (in some versions of the scam, Greece) and has arranged for U.S.-based RE/MAX office to send keys and a lease. In return, the potential renter was asked to pay a deposit using an online payment service or to overnight a check to an address that was claimed to be a RE/MAX office. However, there was no RE/MAX office involved in any of these transactions. We are aware of a similar scam involving the web site rentalsestate.com.

If you encounter any online advertisements like this, please be very careful! You can check the name, address and contact information for any RE/MAX office or agent on remax.com using the "Find an Office" or "Find an Agent" features. In some cases, the scam has referred to the name of an actual RE/MAX agent, so please feel free to contact the appropriate RE/MAX office or agent directly, using the information on remax.com, to verify that the transaction is legitimate.

Click here for the link to remax.com information

What is buyer confidence and what does it mean? In the Ithaca market there is a bit of a conundrum. We are a local market that has and continues to experience overall stability. Yes we have experienced price corrections, increased inventory, some lower appreciation, yet all around us we hear and read. "Don't buy", "Why buy when people are losing their homes", "pricing will plummet", "There are only bogus mortgages", "trust no one".

Buyer's do not know who to listen to, or who to ask. This causes a lack of buyer confidence. The people who are normally out there buying homes are nervous and hanging back. They are online looking, seeing homes, shopping but not making buying decisions because they don't know what tomorrow will bring. This makes sellers reduce prices, offer incentives, and cater to the buyers. This is meant to increase buyer's confidence or at least get their attention. Where is the tipping point?

Who knows when pricing will shift but if you are in the market for a new home there truly is no better time to buy in this area than right now. FALL 2008!!! The properties in Tompkins, Cayuga, Tioga, Seneca, Chemung counties are ripe, sellers are considering serious offers but there will be no "firesale". We are one of the top 10 cities to live in, we have growth, we are a solid college town, we have a desirable second home market with the Finger Lakes region, we are central to many other cities, we are educated, and we atrract so many people in all age groups for so many different reasons.

The State of the Local Real Estate Market. High inventory and few buyers. For the most part homes are on the market for the normal reasons, job relocations, downsizing, upsizing, moving closer to family, some for taxes and high utility costs but it's not because of overwhelming amount of foreclosure properties, and not because of neighborhoods of new builds sitting vacant and competing with depreciating home owners who are running scared. There were not speculators buying up the market, who are now bailing. We are a normal market with tremendous opportunity.

What can you do as a buyer to get buyer confidence? Educate yourself, read and ask questions. Get qualified for a secure mortgage with a local lender. Find a local REALTOR you trust and who is experienced. Look for the ABR designation (Accredited Buyer Representatives), these agents are trained, expercienced, will advocate for their buyer clients and navigate them through the real estate process and the local inventory (every listing available including FSBOs) to find and negotiate the best possible price and terms for their buyer client.

With buyer confidence you will find your way home.

It's that time of year when things start to "slow" down for some agents. I am happy to report that things are not slowing down for us in Ithaca NY. It seems the spring market came a little later this year and we are happy to be busy into the fall season.

It's also that time of year when it's easy to get into a rut when it comes to business - the last of the summer weather is upon us and that makes it a little more difficult to want to work or want to be inside the office. So I wanted to share some testimonials to inspire and rejuvinate that entreprenurial spirit that may start to lay in hibernation this time of year....

"Our experience with buying and selling a house was definitely interesting to say the least but all worked out in the long run. Thanks for your patience...I would recommend you to anyone. People are still amazed that we got our house for just about asking price and "stole" the new house. That left us with enough money to buy this garage. Thank you and I'll be calling you in about 8 years to sell this house." - Mike D.

"...thanks for all your work with the house. I have definately realized that REALTORS do not have an easy job...it is a very up and down process..." -Emily W.

"...I think we got exactly what the property was worth and I am very happy with the way the whole process went...!" - Corey M

-Lindsay Hart, Dir. of Operations & Marketing RE/MAX in Motion Ithaca NY 14850