One in Twenty Looking to Buy

If you're in the market to sell your home, here's an interesting article recently posted on USAToday.com. It states that 1 in 20 people are looking to buy a home next year. Granted, every market is local. But it gives you a feel for what you may expect.
http://www.usatoday.com/money/economy/housing/2009-11-11-home-buying-poll_N.htm

Tax Credit Extended for First-Time and Current Homeowners

A popular $8,000 tax credit for first-time homebuyers, which was set to expire at the end of this month, has been extended until June of 2010. Plus, the new provision includes a $6500 tax credit for existing homeowners who buy a new place after living in a home for at least five years. It's all part of a stimulus package overwhelmingly supported by the House and Senate and signed by President Obama today. Read more details in this article by USAToday.

http://www.usatoday.com/money/economy/housing/2009-11-06-tax-credit-signed_N.htm

Home Owners Save $200,000 in Commission Fees

by Stephanie Scholl

I have a great announcement! Sellers who have sold their homes on northiowaforsalebyowner.com have surpassed the
$200,000 mark in savings!

This week, our 27th home sold!
In all, sellers have saved $215,000, or an average of $7962 each. Had these owners sold with a realtor, that money would have gone to commission fees. Instead, by choosing 'for sale by owner', or 'fsbo', they've been able to pocket that money themselves! We all can appreciate saving money during these tough economic times.

NorthIowaForSaleByOwner.com hit the Internet in September of 2006. It's a local website, based out of Mason City, Iowa. If you're considering selling a home by yourself, please take a look at testimonials from our previous clients at http://www.northiowafsbo.com/sold_homes.html

Mason City Appraiser Comments on Local Housing Prices

by Stephanie Scholl

If you're trying to buy or sell a home these days, you no doubt heard that home prices fell 19% during the first quarter of 2009.

(See USAToday article) http://www.usatoday.com/money/economy/housing/2009-05-26-home-prices_N.htm

But these are figures from the nation's largest cities. What about home prices right here in Mason City, Iowa?

Mike Albrecht of North Iowa Appraisal has been appraising homes more than 11 years.

"I've seen an oversupply of homes before, but have not seen sales activity this slow for this time of year," said Albrecht.

Currently in Mason City, sales transactions of single family homes are down and the average sale price of homes are down about 20% compared to one year ago.

"So, based on the data, yes, housing prices have declined," said Albrecht. "However it's not that simple. It has been my experience based on the work I do everyday that when a home in good condition sells in the current market in a good neighborhood, it still sells close to the price it would have 12 months earlier."

So who is seeing the decline in home prices?

"Lower end homes that need work are competing with foreclosures/bank-owned properties and can sell at a substantial discount," said Albrecht.

So look around. Does your home fall into this category? Albrecht says there are things you can do without spending a lot of money. But it will take some elbow grease. His advice- clean and paint.

"If a home has an obvious deficiency, such as a 1940's kitchen, depreciated shingles, broken windows, it may make sense to update that item," said Albrecht. "However if they are looking at doing something to help the resale value of the home, soap and water and a coat of paint is the best bet."

According to Albrecht, determining the condition of Mason City's housing market is not quite as easy as a market such as Des Moines. Lately, there haven't been a large number of sales in Mason City and neighborhoods have a lot of variation.

"A larger community like Des Moines may have a slower than typical market, however would still have enough sale transactions to determine exact appreciation/depreciation percentages. Additionally, larger communities will include larger neighborhoods with very similar homes. It is easier to recognize trends when identical homes are selling for more or less than they did during another period of time."

To contact Albrecht, go to his website at http://www.northiowaappraisal.com/

Iowa Banks-First Quarter 2009

There's a very interesting article in today's Des Moines Register regarding how Iowa Banks fared in the first quarter of 2009. Basically, a higher percentage of banks are reporting more non-performing loans. Banking officials say it's a sign the recession is starting to hit Iowa a little harder now.

Read more on the Des Moines Register's Website. This article has a complete database of all Iowa Banks, so you can check out your own bank's first quarter performance and how it compares to 2008.

http://www.desmoinesregister.com/article/20090527/BUSINESS/90527018

Curb Appeal Tips

Finally, spring has arrived! It's time to freshen up the look of your home. Not only on the inside, but the outside- especially if you want to sell. Curb appeal is that one opportunity to make a first impression.

From my own experience of looking at homes, here are some of the first things I notice when approaching a house.

1. How does the exterior appear? Does it need a new coat of paint? Is the siding cracked or clean? Oftentimes, mildew and cobwebs need to be removed.

2. Is the front door in need of a fresh coat of paint? New shiny hardware can do wonders! Are there any cracked windows that need replacing?

3. Is the lawn freshly manicured? Leaves, branches, sticks and weeds should be removed from the lawn, corners of the house, underneath patio furniture and window wells.

4. Are the windows and screens clean?

5. Are the rain gutters clean and installed properly?

6. Flowers will add wonders to a home's curb appeal.

7. Finally, look at the landscaping. Is your home hiding behind it? It may be time to pull out those overgrown shrubs and trees.

Here are some related articles. I like this first one on trulia.com. It has great before and after pictures that show how even a dud of a home can become a dream- with a little vision!

http://www.trulia.com/blog/margaret_oscilia/2009/04/top_ten_curb_appeal_tips

http://homebuying.about.com/cs/sellerarticles/a/curb_appeal.htm

April Home Sales-Cerro Gordo County

April home sales dropped from the month before in Cerro Gordo County, according to deeds filed at the county auditor's office. Here are the numbers for each month of 2009.

In April, 100 homes sold

In March, 108 homes sold

In February, 91 homes sold

In January, 74 homes sold

The good news is the numbers appear to be on the rise since the beginning of the year. One local builder commented to me that most of the homes selling are in the $60,000- $150,000 range.

Another good sign, bankers report there is an interest in mortgage applications.

"Our applications haven’t seemed to have dropped off yet. " said Pat Thompson, Farmers State Bank in Mason City. "They were slow to start but have been numerous for the last 30 to 45 days. Rates have ticked up a bit lately and are hovering around the 5% range this week. The big catch with the posted rates in publications is that this rate is for “well qualified borrowers”. I call it a start rate."

Those rates can rise based on several factors including a person's credit score and the LTV, or loan to value ratio.