Cooler months get buyers busy. Should you lock in that mortgage rate or wait until they go even lower?

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Traditionally April, May, June and July are the best selling months for real estate. Buyers and sellers want to get settled in their new home before school starts, learn about their neighborhood and meet a few people on the block.


Certainly, we live in non-traditional times now and the real estate market has seen tremendous changes during the last four years. What factors are in play for us this spring?


Weather Cooler months and a sense of renewal are still high on buyers’ list. We’ve been fortunate that our spring has been a long one, despite our worries about what summer will be like.


Housing activity has been up this year, starting 2012 on a more positive note. Buying activity usually goes down during extremely hot and cold temperatures and our mild winter was a plus. More sellers see the opportunity for a sale and buyers are encouraged by affordable living.


Location We’re looking at micro markets now, especially in the Midwest. We’re in a good place. Pending home sales in the Midwest are up according to the National Association of REALTORS, and we are one of two regions that saw positive competed sales. We also have affordable housing prices, many entertainment, cultural and sports opportunities, plus excellent academic options, all attractive to people moving in to our area. We need to keep these advantages in mind when we look at our market.


Financing Interest rates are still low, an average of 4.25 percent for a 30-year-fixed rate and 3.42 percent for a 15-year fixed rate, but lending is still a tight situation. The best case scenario for a buyer is 20 percent down and a high credit score in this market. But, loans are available–rather than go with a mega bank that may well still be dealing with bad loans during the past few years, look locally. We have some exemplary regional banks, credit unions and independent mortgage companies that didn’t buy into the sub-prime disaster.


Now comes the big question–you’re pre-approved and have begun your home search. Should you lock in a rate now, or wait some more for the rates go lower? We think a lock is the best way to go. The federal government, which has helped to keep mortgage rates down, can’t do that forever. Sooner or later, rates will begin to climb again. And, 4.25 percent really is a good rate!

Trees help market homes as existing sales increase in the Midwest

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Spring brings a feeling of renewal, the sense of possibilities and growth. We’re seeing that in the real estate market in the Midwest. The latest data from the National Association of Realtors show pending home sales in the Midwest increased more than other regions, with home sales up 6.5 percent in February compared to January of this year, and up 19 percent from 2011.
If you are preparing your home for sale, or beginning your search to buy, also consider this growth–trees. As important as the air we breathe­–in fact they provide a substantial amount of that air, absorbing tons of carbon dioxide and emitting clean oxygen–trees provide us with a spiritual sense of well being in addition to their job of improving air quality, conserving water, providing shade in the summer and as screens from the harsh winter winds.
And as a home seller or buyer, there are more reasons to value the trees on your property.
  • Home with excellent trees and landscaping can expect a sale price 6-7 percent higher than homes with substandard landscaping, according to a Clemson University study.
  • 98% of realtors believe that mature trees have a “strong or moderate impact” on the salability of homes listed for over $250,000 (83% believe the same for homes listed under $150,000), according to American Forests Magazine and Arbor National Mortgage.
  • Homeowners who landscape with trees can realize a 100-200 percent cost recovery, higher than bathrooms and kitchens, according to Money Magazine.
  • With summer coming on, try this on for size–the U. S. Department of Agriculture says the net cooling effect of a young, healthy tree is equivalent to 10 room-size air conditioners operating 20 hours a day.
What would our beautiful parks, streets, playgrounds and backyards be without trees? Not so beautiful or charming. Trees are vital to our health, wealth and happiness, believes State Forester Lisa Allen of the Missouri Department of Conservation.
Keep that in mind when you plan your landscaping, take the kids to the park or look for the perfect romantic picnic spot. Where else, but under a tree.
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The St. Charles Builders Home Show is coming up April 20-22 at the St. Charles Convention Center. Admission is free. You can learn lots more about trees and landscaping there.
 Also that weekend, on Sunday, April 22 is the St. Louis Earth Day Festival in Forest Park on the Muny Grounds. There’ll be lots of tree and environmental information for you there too.

Housing Affordability Index Hits Record High

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Housing affordability conditions have reached the highest level since recordkeeping began in 1970, according to the National Association of Realtors®.

NAR’s Housing Affordability Index rose to a record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power.

An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent downpayment and 25 percent of gross income devoted to mortgage principal and interest payments. For first-time buyers making small downpayments, the affordability levels are relatively lower.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said this latest data underscores buyer opportunities in today’s market. “This is the first time the housing affordability index has broken the two hundred mark, meaning the typical family has roughly double the income needed to purchase a median-priced home,” he said. “For buyers who can qualify for a mortgage, now is a very good time to become a homeowner.”

NAR projects the affordability index for all of 2012 will be at an annual high, with little movement in mortgage interest rates or home prices during the year. “Housing inventory levels have declined to a point where conditions are becoming much more balanced in much of the country,” Veissi said. “If access to credit improves, we could see a much more meaningful increase in home sales and broader stabilization in home prices with modest gains in areas with stronger job growth.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

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