Genesee Valley Real Estate Blog

Home sales for the Greater Rochester and Finger Lakes region were up 8 percent in the Third Quarter compared to the same time last year, and up 22 percent compared to the Second Quarter sales total, according to statistics released by the Genesee Region Real Estate Information Services (GENRIS), the information subsidiary of the Greater Rochester Association of REALTORS® (GRAR).  The median sales price increased 3 percent from the Second Quarter for the 11-county region. "The jump in Third Quarter sales following an unusually slow Second Quarter continues to show uneven recovery in the housing market," said Carolyn Stiffler, president of the GRAR Board of Directors.  "These Third Quarter numbers need to be seen in the context of the post federal tax-credit hangover last year and a weak Second Quarter market this year."   "Historically low interest rates and strong affordability conditions should be enticing to consumers," said Stiffler, "but with dismal economic news and slow job growth buyer enthusiasm remains greatly tempered.  We anticipate the market to remain in an uneven recovery."   Area REALTORS® sold 2,887 existing single-family homes in the Third Quarter, an increase of 8 percent from the 2010 Third Quarter total of 2,664.  The 2011 Third Quarter sales total is also an increase of 22 percent compared to the 2011 Second Quarter total of 2,371.   The Third Quarter median sales price of $123,000 represents an increase of 3 percent compared to the Second Quarter median sales price of $120,000 and a slight increase of 0.4 percent compared to the 2010 Third Quarter median sales price of $122,500.   GRAR will continue to support the local residential real estate industry by focusing on the benefits of owning a home and using the services of a REALTOR® when buying and selling a home.

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The Federal Government is proposing a required 20% down payment on all home mortgages.  This would make home ownership more expensive for responsible consumers and puts the fragile housing recovery in jeopardy. 

Congress passed a law intended to prevent future banking collapses.  Federal regulators have taken that law and created a new rule called Qualified Residential Mortgage (QRM)  This new rule proposes a minimum 20% down payment on a home purchase for the most affordable rates.  This would create a high down payment for first-time and low-income home buyers.  The QRM would also make refinancing much more expensive for credit-worthy homeowners too.

The National Association of Realtors (NAR) and 44 organizations have banded together to create the Coalition for Sensible Housing Policy to draw attention to the proposed regulation's 20% down p ayment requirement.  NAR and its coalition of partners are asking consumers to join the fight in urging regulators to reconsider the proposed QRM defintion and help hard-working, creditwothy Americans to realize their dreams of home ownership.

The Home Owner Action Center has a calculator to help you determine what your down payment would be, links to send a letter to Members of Congress and more information about this rule.  Please follow the link below to access this website.

http://www.homeowneractioncenter.com/about-us.html

As always, if you have any questions regarding this, or any other real estate related matter, feel free to contact me.

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Clear Capital has compiled a list of 13 cities that they predict will have rising home prices in 2011.  Rochester, NY was named as #11.

Clear Captial analyzed housing data around the country, predicting that home prices  in other areas will fall another 3.7 percent.  House prices fell 4% nationally last year according to Clear Capital, but rose 5% in the Rochester, NY region.

According to Alex Villacorta from Clear Capital, "Some housing markets are well on their way to recovery, while others are experiencing a renewed downturn reminiscent of the housing crash only two years ago.  The two clear drivers are local unemployment rates and the prevalence of distressed homes."

Foreclosure sales and tax incentives are boosting real estate in some areas of the country.  The complete list of regions Clear Capital name is below:

1. Washington D.C. - Arlington VA - Alexandria VA

2. Houston, TX - Baytown, TX - Sugarland, TX

3. Honolulu, HI

4. Memphis, TN

5. Columbus, OH

6. Dallas, TX - Forth Worth, TX - Arlington, TX

7. New York, NY - Long Island, NY - New Jersey, NJ

8. Birmingham, AL - Hoover, AL

9.  Pittsburgh, PA

10. New Orleans, LA - Metairie, LA - Kenner, LA

11. Rochester, NY

12. St. Louis, MO

13. Boston, MA - Cambridge, MA - Quincy, MA

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The Greater Rochester Association of REALTORS® Releases 4th Quarter & Year-end Residential Statistics

ROCHESTER, NY -- January 21, 2011 -- Fourth Quarter statistics released by the Genesee Region Real Estate Information Services (GENRIS), the information subsidiary of the Greater Rochester Association of REALTORS® (GRAR) reflect the consistent trend of 2010, a stable and growing appreciation in home values within the local housing market in the 11-county region. The median sale price for the Fourth Quarter of $119,500 reflected a 5 percent increase compared to last year at this time.  Transactions for the Fourth Quarter 2010 showed a 31 percent decrease over Fourth Quarter 2009, with 2,134 homes sold, which is most likely due to a more traditional Fourth Quarter this year matched against one spurred by the Federal Homebuyer Tax Credit last year.  The number of homes listed was down 11 percent over Fourth Quarter 2009. "With the Tax Credit, we essentially experienced nine months worth of buyers that went through the market in a period of four months," stated Carolyn Stiffler, president of the Greater Rochester Association of REALTORS® Board of Directors. Regardless of this Fourth Quarter being compared to a Tax Credit driven one, the slowing sales trend is typical and expected for the seasonal housing market in Greater Rochester at this time of year.  Home sales tend to slow during the holiday season and continue to do so through the early part of the New Year.  Resurgence in sales is usually seen toward the beginning of the Second Quarter, which signals the start of the spring market. "Those buyers who remain active during the winter months, however, will benefit from continuing favorable affordability conditions and still-low mortgage rates," said Stiffler. GRAR Officials also noted that 2010 overall was relatively stable in our market despite the negative effects of the national recession in other markets across the country.  Overall, sales for 2010 decreased 5 percent and homes listed for sale was down 4 percent in comparison to 2009.  Median sale price rose 3 percent in 2010 over the previous year. "The Tax Credit statistics in the midst of a recession make it difficult to accurately gauge activity as a comparison," remarked Ryan Tucholski, chief executive officer of the Greater Rochester Association of REALTORS®.  "With a conservative economy like Rochester's typically there is a delay that occurs entering into a recession and with that there is equally a delay in recovery.  However, the increase in median sales price not only in the slow Fourth Quarter but for the whole year perhaps provides a glimmer of uncharacteristic early recovery and points to the resiliency of the Rochester market." Other good news included the 5 contiguous counties to Monroe County all realized overall increases in median sale prices in the Fourth Quarter 2010 as compared to the same time in 2009 despite some of the major towns and/or cities in those counties seeing decreases in median values.  There were several towns within Monroe County that enjoyed sales gains overall in 2010 as compared to 2009.  They include:  Clarkson, Hamlin, Ogden (Spencerport Village), Parma (Hilton Village), Riga (Churchville Village), Penfield, Pittsford (Pittsford Village) and Rush.   Out of the total of 20 towns and villages listed in Monroe County, 17 saw an increase in the median sales price for the year. GRAR will continue to support the local residential real estate industry through its TIME2BUY® marketing campaign, which focuses on the benefits of owning a home and using the services of a REALTOR® when buying and selling a home.

Click here to view the fourth quarter stats report. Click here to view the 2010 annual stats report.

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First-Time Homebuyers Face the Opportunity of a Lifetime

By Amy Merrill

Prudential Discover Real Estate

Today’s first-time homebuyers are presented with the opportunity of a lifetime. Mortgage rates in early December stood near lows last seen during the Truman administration while home prices were well off their peaks of previous years. The combination made housing affordability, as measured by the National Association of REALTORS^®, the highest since NAR^® launched its Affordability Index in 1973.

Housing inventory is also abundant in many markets, enabling first-timers to secure good homes and pave the way to their financial futures. Indeed, homes and their long-term virtues of shelter, wealth-building and personal and civic pride are available at bargain-basement prices that won’t, or can’t, last.

Naturally, first-timers have many questions about home buying, starting with costs. With research and the services of a licensed real estate professional, these consumers can demystify the process and place themselves on the fast track to homeownership.

Knowledge is power – Nine out of every 10 home searches today begin on the Internet. With just a few mouse clicks, you can peruse neighborhoods, search countless online listings and take virtual tours packed with detailed photographs. The process gives you working knowledge of home availability and pricing in your local markets so by the time you sit down with your real estate sales professional you’re well on your way.

Also visit informative websites such as www.ginniemae.gov, www.realtor.com and prudential.com, and check the local newspaper for homebuyer seminars.  

Affordability – Costs involved in the purchase of a home – mortgage, down payment and closing expenditures – can be overwhelming to first-time homebuyers. By looking at your income and debt ratio, your real estate professional can help you calculate how much you can afford each month in mortgage payments. But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, utilities and maintenance. And if your down payment is less than 20 percent of the cost of the home, you will be responsible for private mortgage insurance.

Mortgage payment – In today’s buyers market, you may face competition for your dream home. To establish your spending limit and gain the ability to move quickly on a home, get pre-approved for a loan before you start looking. The fact that your loan has already been approved is of great value to the seller because it shortens the purchase process, and there is less of a chance that the buyer will back out of the sale. This process will also help you identify any credit challenges you must address prior to your purchase.

If you don’t have a specific mortgage lender in mind, ask your sales professional for a recommendation.

Down payment – The down payment amount varies depending on the value of the home you choose and your mortgage lender. First-time homebuyers may also qualify for down-payment assistance programs and grants available through their states and municipalities. Contact your state housing finance authority, county housing and community development office for an application.

Closing costs must be factored in as well. These include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowner association fees. All told, buyers should spend no more than 28% of their income on housing costs, according to Fannie Mae. Your real estate professional will be able to explain your options.

Making offers – Make sure you visit several different homes to get a feel for the marketplace. Visit the ones you like again to see things you might have missed. Work with your real estate professional to get all of your questions answered before making an offer. And remember there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction.

Indeed, home ownership remains a sound financial decision for most and a key component of long-term financial planning. First-time buyers who seek homes for all the right reasons – a place to raise a family, build for the future and face life’s opportunities and challenges – can secure their dreams and build for their futures at some of the most attractive values in years.

Amy Merrill can be reached at 585-662-3363. Prudential Discover Real Estate is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

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