Buying Cheaper Than Renting in GR, According to Forbes!

As rents continue to rise, owning a home is making more financial sense, according to recent surveys that show it’s cheaper to own a house than rent in the majority of metro areas nationwide. 

The National Association of REALTORS® estimates that rents will rise 4 percent, on average, this year and another 4 percent in 2013. As the cost of renting increases, ownership — with record low mortgage rates and falling home values — may be more attractive. 

Forbes.com culled housing data from Trulia of the 100 largest metro areas, analyzing the ratio of asking prices if for-sale homes verses asking prices for rentals. The following metro areas topped the list where home buying outpaces renting the most: 

1. Detroit
2. Oklahoma City, Okla.
3. Dayton, Ohio
4. Warren-Troy-Farmington Hills, Mich.
5. Toledo, Ohio
6. Grand Rapids, Mich.

If you're interested in purchasing a home, please contact us today for a free consultation!

Call us with all of your Real Estate Needs! Northouse Realty Group (616) 206-9667
Jeff Northouse - REALTOR
Christine Lassa - Marketing Director
www.grhomelink.com
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New Listing from Northouse Realty Group

Don't miss out on this darling cape-cod home in Grand Rapids! This three bedroom, one bath house is full of potential and has a fenced-in back yard and single stall detached garage. This one will go fast... call us today to set up a showing!

For more information on this home, schedule a private showing, or receive a daily list of homes specific to your individual criteria, simply reply to this ad with your price range, housing requirements, and area preferences. 

We are Residential, New Construction, and Condominium specialists offering Buyer and Seller consultations, as well as accurate mortgage pre-qualifications. We offer Zero down and 1% down mortgage financing options through MSHDA/MCC, RD, FHA/VA, FNMA / FHLMC. Additionally, we are educated on all federally subsidized homebuyer programs. Contrary to popular belief, you don't need a savings account to take advantage of today's low interest rate and housing prices. Our lenders are still funding RD loans! Credit damaged? We'll help! 

GET EDUCATED! GET APPROVED!

Reply to this posting or contact us directly @ 616.206.9667. We are Certified Short Sale and Foreclosure Specialist through the National Association of Realtors
Let our 23 years of experience expertly represent you!


Call us with all of your Real Estate Needs! Northouse Realty Group (616) 206-9667
Jeff Northouse - REALTOR 
Christine Lassa - Marketing Director 
www.grhomelink.com 
Brokered by Five Star Real Estate (616) 257-1500

Good News for the Housing Market

The housing market’s been giving mixed signals, flashes of hope mixed with sudden bad news. There’s no sign yet that a real recovery has taken hold, but some new data are optimistic.

Home prices and sales are on the rise. DataQuick says the average sale price for the past 30 days was $189,500, up $7,000 from a month earlier. Sales are also up 8.2 percent during this time. In Southern California, for example, DataQuick says the market is continuing its “step-by-tiny-step trek back toward normalcy.”

Shadow inventory is shrinking quickly. The so-called shadow inventory refers to distressed properties that aren’t listed for sale but probably will be—homes on which borrowers are grossly delinquent or already in foreclosure, or that banks have already repossessed. CoreLogic says in April, 1.5 million homes were in the shadows, which equates to a four-month supply, down from a six-month supply a year earlier. A smaller shadow inventory can be positive for prices because it means there are fewer distressed homes poised to come on the market.

Foreclosures are up. In the fall of 2010, the robo-signing scandal erupted over how banks were using faulty paperwork to evict borrowers. They cut back on processing foreclosures, building up a backlog of distressed properties. In March, banks agreed to a $25 billion robo-signing settlement, and new data show banks are restarting the foreclosure machinery. In May, banks filed to foreclose on 205,990 properties—a 9 percent increase during April, according to RealtyTrac. The foreclosure pickup hurts the people who are losing their homes but helps the housing market in the long run because it lets banks get through the backlog and eventually move on.

Borrowers are building more equity in their homes. Our colleagues at Bloomberg News report that homeowners have made the biggest jump in home equityin more than 60 years. Half of borrowers who are refinancing are paying down some of their debt and reducing their loans. They’re also refinancing into shorter-term loans that have higher monthly payments but let them pay down principal quicker. Overall, mortgage debt is down 7 percent since 2007—a small consolation for the decline in home values, which are down 23 percent over the same period.

Finally, if you’re looking for more data and a big-picture view, check out Harvard’s annual State of the Nation’s Housing report that’s out today. It also sees signs of recovery in the market and says unless something comes along to dent the broad economy, the housing picture should become even brighter.

Call us with all of your Real Estate Needs! Northouse Realty Group (616) 206-9667
Jeff Northouse - REALTOR
Christine Lassa - Marketing Director
www.grhomelink.com
Brokered by Five Star Real Estate (616) 257-1500

Top 10 Home Improvement Myths

Not all home improvements are created equal. Even in a seller’s market, it’s important that homeowners make the right investments that will yield higher returns.

Home Improvement Myths

1. Any remodeling project will add value to your home.

While many remodeling projects will add value to a home, some can be seen as a negative by future buyers. For instance, combining two smaller bedrooms to create one larger bedroom may better fit one homeowner’s lifestyle today, but it may cause the home to lose value in the eyes of a future buyer who needs the two separate rooms.

2. Buying the highest-quality materials attracts more buyers.

Installing high-end materials may seem like a wise decision, but it can backfire. For instance, using the most expensive tile in a bathroom may create an impressive appearance, but value-conscious buyers may opt for a more affordable home if the seller has over-improved compared to others in the neighborhood.

3. Adding square footage always adds value.

A better way to think about this statement is to insert the word useable into the sentence. Finished attics and basements – even if considered liveable by local standards – may not be attractive to a buyer if they are not finished to the same standards as the rest of the home.

4. Colors and textures – safe and simple is better.

Keeping a home “vanilla” so buyers can choose their own style and décor might be a safe bet, but it ignores the fact that most buyers just don’t have the ability to visualize the home differently. Without splashes of color and mixtures of texture, sellers can lose value to others that have taken the time to consult with an interior designer.

5. Inside improvements are better than outside improvements.

Not necessarily. If a home’s exterior has been neglected or doesn’t offer a good curb appeal, a buyer might stop there – and then the seller’s efforts on on the inside may not net them any more dollars. To get the biggest bang for their remodeling buck, sellers should start from the outside and work their way in.

6. Adding a bedroom is better than adding a bathroom.

It depends on the starting point. If a seller only has one or two bedrooms to start with, adding a bedroom before adding a second bath is probably a wise choice since most buyers are more attracted to three-bedroom homes. On the other hand, if the home already has three bedrooms and only one bath, the sellers’s next investment should probably be in a new bathroom.

7. Paint hides a multitude of sins.

Dry rot? Fungus damage? Mold problems? Carpenter ants? Termite issues? Nothing a can of paint can’t fix, right? Wrong! Not only does this practice violate disclosure laws in most states, it can set sellers up for liability after the sale, as most buyers will want the sellers to foot the bill for these hidden issues.

8. Converting a garage to living space is a great trade-off.

Nope. A garage conversion is almost always viewed negatively by future home buyers unless the sellers replace the lost garage with another parking and storage space of equal size.

9. Sellers can save money by doing improvements themselves.

For some homeowners, wiring a new lighting fixture or plumbing a new dishwasher is a no-brainer, but for others it may end up costing more later if they have to have the work redone by a professional. Another consideration is local and state laws regarding remodeling work: In many states if a buyer has purchased a home to remodel and resell, they must either hold a contractor’s license or hire a contractor to do the work for them.

10. Pools add value to your home.

This is only true in areas where pools are must-have amenities. In most areas of the country, pools have more limited appeal – and the idea of maintaining a pool for ten months out of the year when it can’t be enjoyed won’t appeal to most buyers.

Knowing these top home-improvement myths will allow you to help your seller clients choose the right remodeling projects. But don’t stop there. To keep your pulse on the amenities that are coveted most in your market, talk to local remodeling professionals, contractors, and home-improvement specialists on a regular basis.

Call us with all of your Real Estate Needs! Northouse Realty Group (616) 206-9667
Jeff Northouse - REALTOR
Christine Lassa - Marketing Director
www.grhomelink.com
Brokered by Five Star Real Estate (616) 257-1500

Biggest Home Equity Jump in 60 Years

Good news! Home equity in the first quarter rose to $6.7 trillion, the highest level since 2008, as homeowners taking advantage of record-low borrowing costs to refinance their loans brought cash to the table to pay down principal. The 7.3 percent gain was the biggest jump in more than 60 years, according to an analysis by Bloomberg of Federal Reserve data.

And it gets better! The article continues be noting the U.S. economy probably will grow at a 2.2% pace in 2012, the third year after the end of the recession, according to the median forecast of 93 economists surveyed by Bloomberg. That compares with a 3.9% average expansion rate in the third-year period following the 1982, 1994, and 2001 recessions. In 2013, the growth rate probably will be 2.4%, according to the economists’ average estimate.

U.S. stocks were up Thursday after the news that major central banks are preparing joint action if the results of the Greek elections on Sunday lead to turmoil in the financial markets, reported according to Dow Jones.

The article states, the Dow Jones Industrial Average jumped 155.53 points, or 1.2%, to 12651.91. The blue-chip benchmark rose after labor and inflation data sparked speculation the Federal Reserve would announce further economic-stimulus efforts. The Dow briefly spiked in the final hour of trading, extending gains to as much as 202 points, after Reuters reported that central banks were preparing to provide liquidity to the markets if needed after the Greek election.

Furthermore, the Standard & Poor's 500-stock index advanced 14.22 points, or 1.1%, to 1329.10. Telecommunications and energy companies paced advances across all of the index's 10 sectors. Slot-machine maker International Game Technology jumped 14%, leading the index higher, after unveiling stock-buyback plans. The Nasdaq Compositerose 17.72 points, or 0.6%, to 2836.33.

Call us with all of your Real Estate Needs! Northouse Realty Group (616) 206-9667
Jeff Northouse - REALTOR
Christine Lassa - Marketing Director
www.grhomelink.com
Brokered by Five Star Real Estate (616) 257-1500

We're In A Seller's Market Now... Really!

West Michigan’s real estate market has flipped. It’s now a seller’s market instead of a buyer’s market, says Julie Rietberg, CEO of the Grand Rapids Association of Realtors (GRAR).

“We have been saying for months that it’s a good time to buy, but we’ve done an about-face on that message,” said Rietberg after her May real estate report showed a 31 percent increase in pending sales and a 35 percent increase in closed sales over last year.

“The average sale price also continues to climb while the months of inventory figure is the lowest it has been in more than 15 years,” Rietberg said. ““It really is a great time to sell – we are in desperate need of inventory.”

Last month, there were 914 residential closings, a 35 percent increase over May, 2011, according to the GRAR statistics. Sales of multi-family homes  were up 70 percent over last May.

The average home sold for $135,846, a 10.8 percent increase over May, 2011. Through May, the average home price was $123,470, a 7.8 percent over the first five months of 2011.

Another sign of a seller’s market? Homes are selling faster. The average home was on the market for 70 days before it sold in in May compared 85 days one year earlier, according to the GRAR figures.

Homes whose sales were pending in May were on the market an average of 68 days compared to 88 days in May, 2011.

Call us with all of your Real Estate Needs! Northouse Realty Group (616) 206-9667
Jeff Northouse - REALTOR
Christine Lassa - Marketing Director
www.grhomelink.com
Brokered by Five Star Real Estate (616) 257-1500

A Real-Estate App When You're Buying or Just Nosy

Let's say you're walking around your neighborhood, or a neighborhood you'd like to make yours, and you spy a house you find interesting. Even if it isn't for sale, you can just whip out your iPhone, take a picture of the home and in less than a minute, you'll have an estimate of its price, plus details on its square footage, number of rooms, similar homes for sale and other facts. 

This feat of digital magic, which works all over the country, is performed by a new, free app called HomeSnap, from a Washington, D.C., online real-estate firm, Sawbuck Realty. Despite its parentage, the company says that using the app doesn't send any data to a Realtor, or invite any calls or emails from one—unless you explicitly ask for such a connection. It's just a cool way to investigate houses and if you like, to share your "Snaps"—photo profiles of houses—with HomeSnap users and friends via email, text or social networks.


Why would you want to use it? Maybe you're interested in buying the house if it ever comes on the market, or helping a friend do so. Or, maybe you're just curious, or nosy. Of course, you could be in real house-hunting mode, and HomeSnap gives you even more information if the house you took a picture of is for sale, including interior photos and bid history. There's even the option of contacting a buyer's agent, asking a question or requesting a tour—right from the phone.


You can use the app to flip through Snaps taken by others, either in nearby areas or around the nation. (HomeSnap allows you to keep your own Snaps out of this "stream," if you'd rather your neighbors don't know you've been investigating their homes or you'd rather not tip off potential competing buyers.)


There are many real-estate apps and websites, such as Zillow, that allow you to get similar information. Some real-estate firms have their own. But these typically require you to type in an address, or troll through a list, or study a map and tap on a marker that represents a house of interest. All HomeSnap requires is that you snap the shutter on your iPhone. (Android and iPad versions are in the works.)


I've been testing HomeSnap for a few weeks in two states: Maryland and Rhode Island. In my 17 attempts, the app almost always correctly identified the house I was shooting. In two cases, both in town-house complexes, it wasn't sure and presented me with an aerial photo displaying a few guesses from which I could pick. In two other cases, it couldn't identify the house at all for some reason.

The app doesn't actually perform photo recognition on the house. Instead, it uses the iPhone's GPS capability and its sensors to identify the house and then fetches the details from a server in the cloud.


HomeSnap includes a Stealth mode that lets you take a picture when you aren't right in front of a house—even when you're inside another nearby house—and get an aerial view of homes in the area from which you can choose a property as your Snap. This proved accurate for me. In one test, it worked perfectly when I was only able to shoot the rear of a house.


Sawbuck says it built the app partly because it hopes that if a user likes it, he or she will one day use one of its agents. But it says so far only about 10% of the 150,000 Snaps taken with the app have been of homes that are actually for sale.


If a home isn't for sale, HomeSnap draws its information from public information like tax records, school boundaries, and census data. If a home is for sale, it provides much more detailed information drawn from local listing databases.


I found HomeSnap fun and impressive. It's a good tool for investigating possible purchases, learning the estimated value of a house and getting other important information. For example, each Snap includes scores from third-party data vendors that rate the quality of nearby schools and rate the relative appreciation and investment value of a home, over 10 years, compared with the average. Some Snaps reveal previous sale dates and prices.


But its information wasn't always complete or accurate. For instance, in the case of my own home, which isn't on the market, it got the number of bathrooms wrong, and didn't know the number of bedrooms—an omission the company blames on a quirk in the public records available for my area. (My tests elsewhere did include the number of bedrooms.) The app has a feature that allows you to report such errors.


In addition, the app currently doesn't have extra information drawn from listings of homes for rent and can't pinpoint units inside large buildings. The company says it's working on both capabilities.


It marks photos of certain homes with a color-coded banner—green if the home is for sale; orange if it's under contract; and purple if there's an coming open house for the property. If there's a major change in the information on a Snap in your history, the app updates it.


The app keeps a history of your Snaps and the company retains them on its servers, whether or not you choose to make them public. In its licensing terms, the company reserves the right to reuse, or modify, the photos you take, though it promises not to "materially" change them, or to distribute or reproduce photos taken by those who opt to keep them private.


If you're looking for a house or just curious about one and you own an iPhone, HomeSnap is a clever, useful and entertaining tool.


Call us with all of your Real Estate Needs! Northouse Realty Group (616) 206-9667
Jeff Northouse - REALTOR
Christine Lassa - Marketing Director
www.grhomelink.com
Brokered by Five Star Real Estate (616) 257-1500

Housing Market is Perking Up!

The various small businesses that drive the country's housing market are reporting signs that the industry may be making a real and sustained comeback.

At the start of this year's spring selling season, home builders and real estate professionals alike expressed optimism about the growing number of prospective buyers showing up at open houses and inquiring about current house listings. It now appears that interest has translated into sales in many markets.

Mark Prather, whose real estate agency, ERA Buy America Real Estate Services is on the border of Los Angeles and Orange counties, states, "We had a terrific March, better April, and May is going to be the best closing month since 2006."

Other success stories are being reported across the nation, as business is being driven by pent-up demand. Many people had put off buying a home since prior to the recession, and prices are lower after plummeting during the housing crisis. In addition, rising rents are making buying more attractive, and mortgage rates are at record lows.  The National Association of Realtors states that more than 1.3 million previously occupied homes were sold from January through April—a 7 percent increase from more than 1.2 million a year ago.


Call us with all of your Real Estate Needs! The Jeff Northouse Group - REALTORS -Keller Williams Realty. www.jeffnorthouse.com 

GR is Best City to Buy a Home in 2012!

Zillow looked at several key factors and came up with a list of the places to buy a home in 2012, plus a list of the cities where you can afford to bargain.

To create its list, the real-estate portal looked at housing prices compared with local incomes, home value trends, unemployment rates and whether buying makes more sense than renting.

The top city in Zillow's Best Places to Buy in 2012 was Grand Rapids, Mich., where home values have risen 4.8% since last spring and unemployment has fallen. The median home value in Grand Rapids is $108,000, making homes affordable on the city's median income.

The next two cities were Phoenix, where Zillow predicts home values will rise 6.5% this year, and Pittsburgh. "Phoenix is probably the best example of a hard-hit market that is showing signs of recovery," says Stan Humphries, Zillow’s chief economist.

The other cities identified as the best places to buy in 2012 were:

• Oklahoma City
• Rochester, N.Y.
• Dallas
• Memphis, Tenn
• Dayton, Ohio

Thinking of buying a home? Call Northouse Realty Group today!

Call us with all of your Real Estate Needs! Northouse Realty Group (616) 206-9667
Jeff Northouse - REALTOR
Christine Lassa - Marketing Director
www.grhomelink.com
Brokered by Five Star Real Estate (616) 257-1500

New Listing from Northouse Realty Group

GORGEOUS Two-Story in Caledonia!

Check out this beautiful, 4 bedroom, 5 bath in Caledonia! Home sits on a beautifully landscaped, 2+ acre lawn and boasts a 3-stall, attached garage. Inside you'll be amazed by the stunning, tall ceilings and huge windows in this well-maintained home. Gorgeous wood flooring runs through the eating nook, dining room, and kitchen. The large kitchen has tons of cupboard space, including a built in pantry and desk area, and a spacious center island. The open-concept lower level is perfect for entertaining with a large wet bar and living area. This beautiful home won't last long! 

For more information, pictures, virtual tours, and more, visit http://7436willowpointect.epropertysites.com/

Call us with all your Real Estate Needs! Northouse Realty Group 616.206.9667

Jeff Northouse - REALTOR 

Christine Lassa - Marketing Director 

www.grhomelink.com 

Brokered by Five Star Real Estate (616) 257-1500

U.S. Housing Market Finally Reaches Turning Point!

Home valuations will start to climb again while adjacent consumer industries will capture significant new growth opportunities in 2012 and beyond as the U.S. housing market finally turns the corner, concludes a major new study released today by The Demand Institute. The recovery of the housing market will have far-reaching impacts in the coming years across the United States and international markets as U.S. consumers increase their spending on buying, renovating, furnishing and maintaining their homes.

Launched in February 2012 and jointly operated by The Conference Board and Nielsen, The Demand Institute is a non-profit, non-advocacy organization with a mission to illuminate where consumer demand is headed around the world.

The new report, The Shifting Nature of U.S. Housing Demand, predicts that average home prices will increase by up to 1 percent in the second half of 2012. By 2014, home prices will increase by as much as 2.5 percent. From 2015 to 2017, the study projects annual increases between 3 and 4 percent. This recovery will not be uniform across the country, and the strongest markets could capture average gains of 5 percent or more in the coming years.

"In these initial years, the prime driver of recovery won't be new home construction, but rather demand for rental properties," said Louise Keely, Chief Research Officer at The Demand Institute and a co-author of the report. "This is a remarkable change from previous recoveries. It is a measure of just how severe the Great Recession has been that such a wide swath of Americans had to delay, scale back, or put off entirely their dreams of home ownership."

"In the long-term, we don't expect home ownership rates to change," said Bart van Ark, Chief Economist at The Conference Board and co-author of the report. "Over 80 percent of Americans in recent surveys still agree that buying a home is the best long-term investment they can make. What will be intriguing to watch is how their aspirations around home ownership are affected by this period of extended austerity." 

Between 2006 and 2011, some $7 trillion in American wealth was wiped out when home prices dropped 30 percent after dramatic climb in valuations during the housing bubble. Looking forward, the moderate growth expectations for coming years suggest a return to normalcy. As home prices continue to drop and interest rates fall further, first-time buyers and others who remained relatively cautious will be drawn back into the housing market. And, as the market recovers, so too will consumer spending. 

"As the U.S. housing market strengthens, almost every consumer-facing industry will be impacted in the coming years," said Mark Leiter, Chairman of The Demand Institute. "Business and government leaders will benefit by fully understanding the nature of this recovery. In doing so they will be better able to anticipate how consumer demand will evolve, and to formulate critical business and policy decisions to lead their organizations."

Key Findings in the Report 
In addition to the projected gains in home prices, the report discusses in detail the dynamics at work in the U.S. Housing market and the impacts across industries. What follows are highlights from the report:

• The recovery will be led by demand from buyers for rental properties, rather than, as in previous cycles, demand from buyers acquiring new or existing properties for themselves. More than 50 percent of those planning to move in the next two years say they intend to rent. 
• Young people—who were particularly hard hit by the recession—and immigrants will lead the demand for rental properties. Developers and investors will fulfill it, developers by building multifamily homes for rent (that is, buildings containing two or more units, such as apartment blocks or townhouses), and investors by buying foreclosed single-family properties for the same purpose. 
• Rental demand will help to clear the huge oversupply of existing homes for sale. In 2011, some 14 percent of all housing units were vacant, while almost 13 percent of mortgages were in foreclosure or delinquent—increases of 12 and 129 percent respectively over 2005 levels. It will take two to three years for this oversupply to be cleared, and at that point home ownership rates will rise and return to historical levels. 
• The housing market recovery will not be uniform across the country. Some states will see annual price gains of 5 percent or more. Others will not recover for many years. The deciding factors will include the level of foreclosed inventory and rates of unemployment. 
• There will also be vast differences within states. Here, additional factors count, such as whether local amenities, including access to public transport, are within walking distance of homes. By examining seven factors that influence house prices at a local level, the report identifies four categories of cities and towns in which prices will behave differently. 
• The average size of the American home will shrink. Many baby boomers who delayed retirement for financial reasons during the recession will downsize. They will not be alone. The majority of Americans have seen little or no wage increase for several years, and many will scale back their housing aspirations. The size of an average new home is expected to continue to fall, reaching mid-1990s levels by 2015. 
• Consumer industries including financial services, home furnishings, home remodeling will all experience shifts in demand and new growth opportunities. Part of this spending is linked to increases in wealth from improving home valuations, while an even bigger part is tied to the "transaction" of buying or selling the home which sets in motion increased demand for a wide range of products and services. 
• Despite the number of Americans who have been hurt financially by the housing crash, the desire to own a home remains strong. We do not expect to see a long-term drop in ownership rates. Indeed, one survey has revealed that more than 80 percent of Americans recently thought buying a home remained the best long-term investment they could make.



Call us with all of your Real Estate Needs! Northouse Realty Group (616) 206-9667
Jeff Northouse - REALTOR
Christine Lassa - Marketing Director
www.grhomelink.com
Brokered by Five Star Real Estate (616) 257-1500