Please click on this link to view the JANUARY – 2011 Newsletter Housing Trends eNewsletter:
http://erikhakans.housingtrendsenewsletter.com?Newsletter_ID=268&Period_ID=375

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources.

It also includes press releases with charts and videos, key market indicators and real estate sales and price statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.

If you are interested in determining the value of your home, click the “Home Evaluator” link for a free evaluation report:
http://erikhakans.housingtrendsenewsletter.com?Newsletter_ID=268&Period_ID=375

Sound decisions can only be made with accurate and reliable information, and I am happy to be a trusted resource for you. Thank you for the opportunity to provide you with this monthly eNewsletter, and I look forward to answering any questions you may have and to the opportunity to be your REALTOR® in the future.

Erik Hakans
 Coldwell Banker Wardley, Las Vegas NV
 7670 West Lake Mead Blvd Las Vegas
 NV 89128
 702-256-4900 | 702-274-1068
 Email:erik@thehakansgroup.com

Many economists argue that the housing market may take four or five years to recover. Even if that’s proven to be true, the all-time highs of 2006 may never be reached again.

24/7 Wall St. looked at a number of the standard measures to find the housing markets facing the biggest problems attracting buyers. After a detailed examination, six metrics were chosen: (1) vacancy rates for 2010; (2) foreclosure rates for 2010; (3) November 2010 unemployment rates; (4) change in building permits from 2006 to 2010; (5) change in population from 2005 to 2010; and (6) price reduction by major cities for 2010. Taken together, they create a strong statistical base to describe markets which buyers have largely abandoned.

Several states nearly made it onto the list, such as Colorado and South Carolina, but did not get poor enough marks across all of our measurements. Each was among the 10 worst for declines in building permits. Colorado had one of the worst foreclosure rates, and South Carolina one of the worst vacancy rates. However, the populations in both states have rebounded enough to make a strong case that their housing markets may recover moderately over time.

The review of the data raises several public policy issues. The most important of these is whether the federal focus on reviving the housing market should be concentrated in the hardest hit regions. The counter to that point of view is that some cities, such as Flint, or states like Nevada are in such bad shape that they are beyond assistance. Unemployment rates are too high in these areas, and perhaps the number of homes on the market is too large.

One thing is certain. The housing recovery will be wildly uneven. A city like New York, which has a dense population and large numbers of middle class and upper class buyers who will wait until they believe prices hit bottom, will have a rapid recovery soon. Building permits granted in New York City over the last four years have been very low. The supply of apartments is also low. Those forces taken together with an even modest economic recovery will help push real estate prices higher in New York and regions with similar characteristics.

The real estate crisis has gone on for four years. In the states 24/7 Wall St. has chosen here, the crisis will go on much longer.

1. Michigan

Vacancy Rate: 15.98% (9th Worst)
Unemployment: 12.4% (Tied for 2nd Worst)
Population Change 2005-2010: -2.05% (Worst)

Michigan is one of only two states whose population has decreased in the last five years. The state has lost more than 12,000 people, or 2% of its population, since 2005. Most of this population loss was undoubtedly due to the depression in the car industry that led to the bankruptcies of GM and Chrysler. Flint, once one of the largest car manufacturing cities in America, has lost more than 10% of its population in the past 10 years. The state has the second-worst unemployment rate in the country at 12.4%. Michigan has a home vacancy rate of 15.98%, the ninth-worst in the U.S. There are large neighborhoods in Detroit that are vacant.

2. Nevada

2010 Foreclosures: 9.42% (Worst)
Unemployment: 14.3% (Worst)
Decrease in Building Permits 2006-2010: -84.39% (Worst)

In 2010, an incredible 9.42% of all housing units in Nevada were foreclosed upon. This is by far the highest foreclosure rate in the U.S., and is nearly twice that of the next-worst state. Nevada also has the highest unemployment rate in the United States, at 14.3%.The recession undermined profits in the gaming industry. Between 2006 and 2010, the state had an 84.3% decrease in building permit requests, the largest drop in the country. This has resulted in the loss of tens of thousands of construction jobs.

3. Arizona

Vacancy Rate: 17.3% (5th Worst)
2010 Foreclosures: 5.73% (2nd Worst)
Decrease in Building Permits 2006-2010: -81.36% (4th Worst)

Arizona is among a handful of states most deeply wounded by the real estate collapse. Some 5.73% of properties in the state have been foreclosed upon, the second highest rate in the country, and 17.3% of homes are vacant, the fifth greatest rate in the country. Also, Mesa, Phoenix and Tucson, the state’s three largest cities, are all among the top five American cities with the greatest percentage of price reductions for homes in 2010, along with Minneapolis and Baltimore. As of December 2010, these cities had 43%, 42% and 38% of their listings with price reductions, respectively.

4. California

2010 Foreclosures: 4.08% (4th Worst)
Unemployment: 12.4% (Tied for 2nd Worst)
Decrease in Building Permits 2006-2010: -74.7% (6th Worst)

California’s impact on the housing market is huge. The state is the largest among the 50 in total GDP and housing units. California’s unemployment rate of 12.4% is now tied for second place with Michigan, once the jobless capital of the nation. In 2010, the state had one of the highest foreclosure rates in the country, at just over 4%. New construction has dropped off dramatically as well, with a 74 % decrease in new building permits between 2006 and 2010.

5. Illinois

2010 Foreclosures: 2.87% (9th Worst)
Decrease in Building Permits 2006-2010: -81.32% (5th Worst)
Population Change 2005-2010: 1.23% (8th Worst)

Although Illinois has a relatively low residential vacancy rate, finding people to buy homes can be difficult. The state’s population only grew 1.23% between 2005 and 2010. This is the eighth worst growth rate in the country. Furthermore, the number of building permits issued since 2006 decreased 81.32%, the fifth greatest drop in the nation. The collapse of the state’s industrial base has been so great that its economy will not recover anytime soon.

6. Georgia

2010 Foreclosures: 3.25% (6th Worst)
Unemployment: 10% (9th Worst)
Decrease in Building Permits 2006-2010: -82.29% (2nd Worst)

The number of building permits issued in 2006 in Georgia was 92,541. In 2010 that number dropped to 16,391. This is the second greatest decrease in the nation during that time. The state’s unemployment rate, at 10%, is above the national average of 9.4%. Also in 2010, there were 130,966 foreclosures in Georgia, 3.25% of the state’s properties. This is an increase of 53.62% since 2008.

7. Oregon

Unemployment: 10.6% (Tied for 5th Worst)
Decrease in Building Permits 2006-2010: -74.08% (7th Worst)
Number of Listings With Price Reductions (Portland): 35% (Tied for 8th Worst Among 50 Largest U.S. Cities)

Oregon’s real estate market has suffered the double blow of a sharp drop in both building permits and price reductions on existing homes. Unemployment is 10.6%, the fifth worst rate in the country. The number of new building permits decreased by 74% from 2006 to 2010. In December 2010, 35% of listings in Portland, the state’s largest city, had price reductions.

8. Florida

Vacancy Rate: 21.03% (2nd Worst)
2010 Foreclosures: 5.51% (3rd Worst)
Decrease in Building Permits 2006-2010: -81.37% (3rd Worst)

Unemployment in Florida is 12%, the fourth worst in the country. Approximately 1.1 million residents are out of work. Statistics show that 21.03% of the state’s housing units are vacant. Furthermore, 5.51% of homes have been foreclosed upon. Florida was among five states that had the largest real estate booms from 2000 to 2006. Residential prices in some waterfront areas like Miami and Palm Beach rose by much more than double during that period. New home and condominium construction soared. Many of those residences have never been occupied and are still part of the inventory of homes for sale.

Sources:

1) Vacancy rates for 2010 — American Community Survey (Census Bureau)
2) Foreclosure rates for 2010 — RealtyTrac
3) November 2010 unemployment rates — Bureau of Labor Statistics
4) Change in building permits from 2006 to 2010 — Census Bureau
5) Change in population from 2005 to 2010 — Census Bureau
6) Price reduction by cities for 2010 — Trulia

They can understand the process and what requirements must be met before a home can be sold. According to one of our partner lenders, there are really two steps in the short sale process – the customer evaluation phase and the property evaluation phase.

• Customer evaluation process: The Investor will want proof of a number of things – including the customer’s hardship, their financial situation and what other alternatives have been considered. The first thing to do is make sure all the customer’s documentation is in order – things like W2s, pay stubs, tax returns, a hardship letter and other financial documents.

• Property evaluation phase: The servicer will need an appraisal on the property as quickly as possible, so it’s important that they have access to the property so they can complete it.

If all of the paperwork and the approval process is done up front, it will make things go much more smoothly and once an offer is in place, lenders can respond more quickly because they are in the position to know exactly what can be accepted.

A short sale must be an arms length transaction, which means a personal friend, family member or business partner cannot purchase the home.

For more information regarding this article, call 702-274-1068 and a Short Sale Specialist from the Hakans Group will be happy to assist you.

Meanwhile, some see another year of value declines in 2011, perhaps up to 7 percent. Several more waves of adjustable-rate mortgages are set to ratchet upward for homeowners in 2011. “Strategic defaulters” are surrendering their upside-down loans as a financial strategy, not because of extenuating circumstances. And unemployment remains stubbornly high.

Yet, people still move up and still move down — buying and selling homes to meet those ends. For them, here are 10 real estate tips for 2011.

Tip 1: Sellers: Redefine “Market Value”

If your home has been on the market far too long, there’s a good chance you’re not facing market realities. The value of your home isn’t what the tax assessor says it is, or the sum on that two-year-old appraisal you have filed away. It’s not what a similar-size home that sold across town. It’s what a buyer is willing to pay today. To arrive at that sum, the sales prices of foreclosures and short sales must be factored into the equation, along with the average value of seller concessions in your submarket. These factors are advanced by the Federal Housing Finance Agency, or FHFA, in its appraiser code-of-conduct revisions to ensure more accurate documentation of market conditions. If your agent tells you that you’re overpricing your house, he or she may not just be trying to grease the wheels for a quick commish, as you might suspect.

Tip 2: Buyers: Hire Personal Peeps

As tempting as it is to share the seller’s agent to save a couple grand, don’t. The same goes for using the other party’s inspector and appraiser. They were hired by the seller and have a fiduciary allegiance to the person who’s paying them. Don’t automatically opt for real estate professionals referred to you by your agent either. A huge capital purchase is not the time for such friendly accommodations. Briefly interview three of each by phone. Make sure your appraiser and your inspector (and perhaps a separate termite inspector) are appropriately state-licensed or state-certified and, ideally, have been practicing for at least five years and have done more than 200 inspections or appraisals. Compare the results of your inspector’s findings with the inspection findings of the other party, and you’re likely to stumble on disparities or omissions.

Tip 3: Sellers: Extend the Selling Season

Spring is the best time to find the broadest universe of buyers and sellers. Parents don’t want to uproot their kids from schools mid-term and would like to settle in a new neighborhood by mid-summer. Many sell at the same time they buy. These days, “spring” really means late winter. So if you’re going to sell in 2011, get your house ready for showings by late February. That will give you nearly five months until this buying-and-selling group starts dwindling by mid-July.

Tip 4: Buyers: Check the Seller’s Addition

Based on mounting concerns expressed in Bankrate reader mail, prospective buyers should add the following move to their due diligence lists when scoping out a home: Check for illegal additions. Revenue-starved cities are cracking down on unpermitted work. They focus on current owners, not the original step-skipping “perps.” Unpermitted room additions, kitchen remodels and garage conversions are just a few areas that can haunt an unsuspecting buyer. A good agent, home inspector or appraiser should be able to spot such unpermitted work, especially if square footage doesn’t match tax assessor records. If you do buy unwittingly, you’ll be responsible to bring the work up to code.

Tip 5: Sellers and Buyers: Gather Micro Data

Regional real estate sales information never tells the full tale of a housing market. Search local daily newspapers, business journals and websites to find the latest foreclosed homes, housing backlogs, current versus historic median selling prices, and the average time on the market of for-sale homes in your specific ZIP code, submarket or neighborhood. The website City-data.com is a good start for this.

On a broader scale, look at population income levels, unemployment rates and the contraction or expansion of major local employers. Homes near universities, hospitals and other major employment centers usually hold their value better and resell faster. A great product and great location, at least to some degree, will transcend local trends for buyers and sellers.

Tip 6: Buyers: Smoke Out Pervs

Do a sex-offender search. The National Association of Realtors, or NAR, says it’s the job of local police agencies, not Realtors, to be gatekeepers of registered sex-offender data. So do your homework. The National Sex Offender Public Registry contains national offender listings. And know that most agents are obliged to honestly answer direct questions. So ask: Do any registered sex offenders currently live anywhere in the neighborhood? Do any former registered sex offenders live anywhere in the neighborhood?

Tip 7: Sellers: Feel What the Buyer Feels

Put your ego aside, sellers. Your for-sale home is no longer about you — it’s about the buyer. So be empathic. What would you expect to see on a tour of a for-sale home? Even though you’re essentially marketing brick, mortar and land, the emotional response you elicit in a buyer is often what seals a deal. Neutral colors allow buyers to picture themselves in your house. To appeal to their olfactory pleasure senses, employ the age-old tactic of baking fresh cookies before potential buyers arrive — then leave them for your visitors to enjoy. Or at least light a candle or two. To convey an inviting atmosphere, de-clutter the place with renewed vengeance, stow away your inexpensive or tattered furniture and box up cherished mementos. Remember that the illusion of space is almost as important as the space itself.

Tip 8: Buyers: Keep the Dream Alive After Foreclosure

Lost your home to foreclosure? In most cases, that won’t keep you from owning another home as far into the future as you likely feared. It’s true that a foreclosure can remain on your credit record for up to seven years, but government-backed mortgage guarantors Fannie Mae, Freddie Mac and FHA typically impose just a minimum of just three years before they’ll back another home loan — if your foreclosure was due to extenuating circumstances such as job loss, relocation or illness. Next time, you might be asked for a bigger down payment, as much as 20 percent, and slightly higher interest rates. So start saving now.

Tip 9: Buyers and Sellers: Set Your Goals in Writing

Certainly you should get all relevant real estate promises in writing, but that’s not where we’re headed. Keep a log of the entire process of buying or selling a home, including your objectives, home-tour dates, buyer and seller feedback, offers, expenses, contracts, repairs, contractors hired, agent communiques, neighborhood observations, everything. It will give you a clearer picture of what you’ve done, what you’re doing and what to do next. Studies have shown that goals are more likely to become reality if you write them than if you don’t.

Tip 10: Buyers: Play the Field

Don’t leave yourself open to heartbreak. Buyers pursuing heavily discounted short-sale and auction homes should research several prospects, because there may be plenty of other suitors. Many a would-be buyer has been left at the altar of lofty expectations after watching another guy or gal swoop up that perfect home at the last minute for just a little more money. Most successful auction winners and short-sale buyers start out by targeting several homes so they won’t be left in the lurch if, or when, one deal falls apart. With so many parties involved in these transactions, including brokers, agents, lawyers, loss mitigators, appraisers, lenders, special servicers and inspectors, a lot can go wrong. Some Realtors estimate only about one-fifth of attempted short sales are successful.

By listing in early January, you might be able to catch some of those early birds who start browsing in the winter so that they can find a new home before school starts in the fall, said Louis Cammarosano, general manager of HomeGain.com, a real-estate website. In fact, many buyers tend to start their searches online right after Christmas, and continue throughout January and February, he said.

“If you hit the ground running and you’re a fresh listing that has done everything right, you’ve got the best shot,” said Cammarosano.

Consider the following tips to give your home the best chance to get noticed — and sold — in 2011.

Price It Right from the Start

Many sellers suffer from attachment bias. They believe that their home is worth more than they’d pay for it in another context. While it’s always a bad idea to overprice a home, it’s especially dangerous in times like this because there is so much competing inventory in many local markets.

Give yourself a reality check by looking inside comparable homes during open houses. That can help you get a clearer idea of your home’s value.

You might even consider interviewing a few real-estate agents to get more than one take on how the home should be priced, Cammarosano said.

The longer something sits on the market, the more price reductions you might have to make and the more potential buyers will assume that there’s something wrong with the home. So more often than not, it’s best not to try testing the waters with a higher price.

Don’t be afraid to advertise in the listing and marketing materials that it’s not a foreclosure or short sale. In markets where distressed sales are plentiful, there are buyers who simply don’t want to deal with the extra hassle and uncertainty of a short sale or bank-owned property. If you are considering a distressed property, make sure you enlist a qualified Realtor to assist with the negotiations between all parties.

Get the House Ready

Most sellers know they need to declutter, paint in neutral colors and generally stage the home as best as they can to help buyers envision themselves in the home. Often, this is done on the advice of a real-estate agent or professional stager.

The closer you can get your home looking like a photo from a Pottery Barn catalog, the better off you will be.

And make sure that your cabinets and refrigerators are cleaned out and decluttered, too. You want to have a minimum of ‘stuff’ in the house. The less stuff you have, the larger the closets, basement and garage will look.

Also, it is recommended that you have a home inspection done a month before putting the home on the market to identify any major defects that need to be corrected.

Provide as Much Information as Possible

Have energy bills and a list of updates available for buyers to see.

Buyers are always curious what the utility bills are, how old the roof is, how many layers it has, how old the major mechanicals are and when that addition was added. The more information you can provide on the house, the better.

Consider providing a floor plan with listings as well, Cammarosano said. That way the prospective buyers don’t have to keep making return visits to determine how their furniture will fit in the space — they’ll have the dimensions in hand.

Make It Easy to Show

The more available you can make your home for showings, the better.

Make it easy for your real-estate agent to access the property and keep the place clean.

You want your home to be easy to show because you don’t know if you will get a second chance. The buyer wants to like your house. Keep it in show-ready condition, so they aren’t turned off by a first impression.

Be Flexible

Buyers are in the driver’s seat these days, and they know they can make all sorts of unusual requests without risking the deal. Be ready.

Buyer wants to see the house at 7 a.m. on Tuesday, OK, Buyer wants to bring 10 family members and an inspector to check out the house for three hours this weekend, OK. Buyer wants you to include the kitchen table and chairs, the painting over the fireplace and your snow blower, OK.

The more flexible you are, the better off you will be.

Call us at the Hakans Group – Coldwell Banker Wardley (702) 274-1068 for more information on selling or buying a home.

1. Honesty and Integrity – We are proud of our past success and have several Client Testimonials and Referrals available as a result.

2. Knowledge of the Purchase Process- We are happy to offer a Free Buyers and Sellers Guide.

3. Responsiveness- We have a team and tools in place to provide immediate follow-up to all inquiries, regardless of how they are delivered.

4. Knowledge of the real estate market- Ask for our Free Short Sale Package or Market Reports showing recent sales, listings and market trends.

5. Negotiation skills- We will let the statistics speak for us – 13 properties sold in the past 6 months, and we currently have 6 sales pending.

Call today 702-274-1068 for any of our FREE guides, packages or reports. Visit us at www.thehakansgroup.com.

Charles’s interest in real estate began when he invested in multiple properties. His experiences with these investments only reinforced the lessons he picked up on the road: people yearn for a home of their own, regardless of how far and how long they travel. When he finally settled in Las Vegas, Charles saw a pressing need for real estate professionals who truly understood the unique rigors of life in the entertainment industry, and he decided to launch a business designed to help meet the housing needs of its workers.

He earned his real estate license in 2008, and has worked tirelessly since then to expand his knowledge and his client base without sacrificing the impeccable customer service and professionalism that customers deserve. The pressures of balancing a full time job in the entertainment industry with the needs of his real estate clients led to the formation of the Hakans Group, with partner Erik Hakans. With Erik managing the day-to-day operations, and Chuck working with clients on evenings and weekends, the Hakans Group enabled Chuck to maintain an active presence in both the entertainment and real-estate fields.

Along with building up the Hakans Group, Charles continues to be active in the rental business, and he keeps abreast of economic trends to maintain a wide-ranging investment portfolio. When he isn’t helping his clients get the most out of today’s challenging real estate market, Charles enjoys traveling to exotic locations to test his fly-fishing skills.
Please contact Charles at clareaux@thehakansgroup.com or visit us at http://www.thehakansgroup.com