Local Market Update for April – E Brainerd (Ooltewah)

I was anxious to update you with the latest available information about the market in the E Brainerd area which includes Ooltewah. This information makes it clear that we are in the throes of a difficult market.
The three figures are the top are most indicative of the changes that took place during the month of April.
The good news is that less homes are being placed on the market—17.2% less when compared with April of 2010. Normally, we would expect an uptrend if the market was improving--especially as we are just entering the time of the year when the market traditionally improves. That means for the homes currently on the market the competition has been reduced.
Unfortunately, the Closed Sales are significantly down—14.3%. It is no wonder that a number of families are not putting their home on the market at this time.
Finally, the change in the Median Sales Price. The drop in the Median Sales Price was from $195,600 in April of 2010 to a price of $156,000 for April of 2011. That is a whopping 20.2% in one year. The silver lining is in the Year to Date Median Sales price. For the first 4 months of 2010, the Median Sales Price was $179,900, but for the first 4 months of 2011 it rose to $219,013 for an increase of 21.7%.
It would appear that if one wishes to sell their house, it should definitely be on the market at this time while we are seeing reduced competition coupled with a Year to Date price increase.

Brought to your attention by The Green Team:

Jon Green, Associate Broker
Cell: 423.505.3195
Web site: www.CollegedaleRealEstate.com

Crye-Leike Realtors
5913 Main St.
Ooltewah, TN 37363
Phone: 423.238.5440

Remodeling to Increase the Value of Your Home

Real Estate Corner…

Q.        We are considering remodeling to increase the value of our home before we put it on the market. What are the best options and the most attractive add-ons for home improvement before sale?

A.        Use some basic math before you invest in a home that you are about to sell. The American Homeowner’s Foundation estimates the total cost of moving to be at least 10 percent of your home’s current value. If your projected remodeling costs go beyond that, it would make better sense to put your money in your new house and not your old one.

Even if you make a stunning transformation of your once tired-looking property, don’t expect to push your home’s value past 20 percent of its current selling price. If your neighborhood has varied property values, target your selling price just under the most expensive and best-looking home in your neighborhood. The adjacent “showcase” homes will quietly reinforce your potential asking price.

As a primary rule, be practical about your choice of upgrades. Don’t try to turn your 60’s or 70’s style home into Cape Cod mansion. Upgrade only the details that define the house’s original style. Make your home look like it has been well maintained. Be sure the lighting, plumbing fixtures, and hardwood floors are in top condition. Many buyers will see past any “quick fixes” and wonder what isn’t right with the rest of the house.

The best remodeling can be made to the kitchen because it usually suffers the most wear and tear. Sometimes a good-looking, highly functional kitchen will be your “deal maker.” Adding a bathroom can also add value to an older home. Design touches such as a skylight, glass block windows, and ceramic tile on the floor and walls make it even more attractive to buyers. Be sure to upgrade your existing bathroom with matching paint, tile, and fixtures. If you’d like a copy of my FREE consumer report, “Homeowners GuideTo Moneymaking Fix-ups” just call Jon at 423.505.3195 or email The Green Team.

Brought to your attention by The Green Team:

Jon Green, PhD
Associate Broker

Cell: 423.505.3195

Web site: www.CollegedaleRealEstate.com

 Email: Jon.Green@Crye-Leike.com

Crye-Leike Realtors

5913 Main St.

Ooltewah, TN 37363

Phone: 423.238.5440

Local Market Update for April - Collegedale and Apison

I was anxious to update you with the latest available information about the market in the Collegedale and Apison area. This information makes it clear that we are in the throes of a difficult market.

The three figures are the top are most indicative of the changes that took place during the month of April.

The good news is that less homes are being placed on the market--15.8% less when compared with April of 2010. Normally, we would expect an uptrend if the market was improving--especially as we are just entering the time of the year when the market traditionally improves. That means for the homes currently on the market the competition has been reduced.

Unfortunately, the Closed Sales are significantly down--41.7%. It is no wonder that a number of families are not putting their home on the market at this time.

Finally, the change in the Median Sales Price. The drop in the Median Sales Price was from $214,250 in April of 2010 to a price of $198,500 for April of 2011. The silver lining is in the Year to Date Median Sales price. For the first 4 months of 2010, the Median Sales Price was $198,750, but for the first 4 months of 2011 it rose to $216,750 for an increase of 9.1%.

It would appear that if one wishes to sell their house, it should definitely be on the market at this time while we are seeing reduced competition coupled with a Year to Date price increase.

Brought to your attention by The Green Team:

Jon Green, PhD
Associate Broker

Cell: 423.505.3195
Web site: www.CollegedaleRealEstate.com

Crye-Leike Realtors
5913 Main St.
Ooltewah, TN 37363

Home Equity Sinks to Nearly Lowest Point Since World War II

From wire reports - June 12, 2011
http://abcnews.go.com/Business/home-equity-sinks-lowest-point-world-war-ii/story?id=13807274
Falling home prices have shrunk the equity Americans have in their homes to nearly the lowest percentage since World War II.

Average home equity plunged from more than 61% at the start of 2001 to 38% in the January-March quarter this year, the Federal Reserve said in a report Thursday. That drop comes as home prices in big metro areas have reached their lowest level since 2002.

Prices fell 33% in 20 cities through March from their 2006 peak, reaching their lowest level since 2003, according to the Standard & Poor's/Case-Shiller index of U.S. home prices on May 31. The decline signaled a "double dip" as the index fell below its previous post-housing-bubble low set in April 2009. Prices more than doubled from 2000 to July 2006.

Further declines in home prices are likely.

Robert Shiller, the economist who co-founded the S&P/Case-Shiller index, said a further decline in property values of 10% to 25% in the next five years "wouldn't surprise me at all.

There's no precedent for this statistically, so no way to predict," Shiller said Thursday at a Standard & Poor's conference in New York.

A backlog of foreclosures poised to hit the market means prices may stay depressed, dissuading builders from starting new construction.

Unemployment, which rose to 9.1% in May, and stricter lending conditions are signs that any recovery in housing may take years.

Shiller's comments paint a more pessimistic possibility for home prices than other forecasts. Additional declines will be "incremental," Bank of America CEO Brian Moynihan said last week..

While it would be a surprise to see prices fall steeply, it's possible for homes to lose more value if inflation picks up, Karl Case, co-founder of the index, said Thursday.

"You could have flat nominal prices but still have it go down 20%," Case said during an interview at the conference.

"If house prices stabilize, they could still go down in real terms. If we had inflation, it'd be great, because it'd mask a 25% decline."

The Fed report showed that household debt fell in the January-March period at an annual rate of 2% from the previous quarter.

That drop was due entirely to a decline in mortgages.

Auto loans, student loans and other consumer credit rose 2.4% — the second-straight gain after nine consecutive declines.



http://www.collegedalerealestate.com/



Brought to your attention by The Green Team:

Jon Green, PhD
Associate Broker

Cell: 423.505.3195

Web site: www.CollegedaleRealEstate.com

Crye-Leike Realtors

5913 Main St.

Ooltewah, TN 37363