Grass Valley, CA Real Estate Podcast with Kurt Congdon

Turn Your Home Into a Masterpiece

Kurt@KurtCongdon.com (Kurt Congdon) — Tue, 3 May 2016 10:29:00 -0700

Buying a Nevada County Home? Search all Homes for Sale

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Professional photography is one of the most important aspects of your home’s marketing and advertising. This is made only more important by the fact that most homes are featured online on multiple different websites.

Before you have a photographer come over to shoot, I recommend that you clean, dust, and declutter your home. The point is to get everything neat and organized so the focus of the photographs is your home, and not the objects within it. I would also recommend removing any holiday decorations because they can date the photos, and some people feel that holiday photos are a bit gimmicky. Also, clear off your kitchen countertops. Your kitchen will look and feel much larger than it actually is!

Be sure to turn on all of your lights and open all of your windows. Brighter is always better!

Another thing to keep in mind is to remove traces of any pets that you may have. This will negatively affect the buyer’s idea of what condition your home might be in. Some people are also allergic to animals and this could be a deal-breaker for them.

"Your home’s photography can make or break a sale."

The cleaning doesn’t stop on the inside of your home. Mow your lawn, trim your hedges, and clean your gutters. There are a lot of things that you could do to the outside of your home, but the main idea is to have everything clean, green, and inviting. You need to lure your buyer to the front door and into your home.

I have a long list of other things you can do to improve your home before a photographer comes in, so don’t hesitate to continue this conversation with me via email or phone!

2016 Real Estate Review for Nevada County

Kurt@KurtCongdon.com (Kurt Congdon) — Tue, 19 Jan 2016 11:10:00 -0800

Buying a Nevada County Home? Search all Homes for Sale

Selling a Nevada County Home? Get a FREE Home Value Report

Hello and Happy 2016 to you all. We are in a new year, so I wanted to take some time today to bring you a "year-in-review" for 2015. Thanks to all of our great clients and friends, we were able to have another record year. We were so happy to get so many of your referrals!

First of all, in the Nevada County market this year, we had an average appreciation of 12%! We also saw over 1,400 sales in 2015, the most we've had since 2005! These are both great figures and point to just how healthy our market has become. We are also rapidly approaching our record high sale prices from 2005, and may be hitting those numbers soon.

We also saw a lot more homes sell in the $500,000+ range than we have in years past. This has allowed many people who were waiting for the market to improve in order to downsize to do so. This creates movement in both the upper and middle part of our market.

Next time, I'll bring you a forecast for where I think the market is heading in 2016. This coming week, I will attend a conference with some of the best agents and real estate experts in North America, and I'll bring back some great information for you to use in 2016.

If you have questions for me at any time, feel free to give me a call or send me an email. I look forward to hearing from you!

Wishing You a Safe and Fun Holiday Season

Kurt@KurtCongdon.com (Kurt Congdon) — Tue, 22 Dec 2015 08:09:00 -0800

Today we're not going to talk about real estate or interest rates. I just want to wish you Happy Holidays on behalf of my team. Your business and referrals made 2015 a great year, and 2016 looks to be even better.

None of this could have been accomplished without your help!

Enjoy the sights and sounds of Christmas in this video. Happy Holidays!

Buying a Nevada County Home? Search all Homes for Sale

Selling a Nevada County Home? Get a FREE Home Value Report

What Do Recent Nevada County Market Conditions Mean for You?

Kurt@KurtCongdon.com (Kurt Congdon) — Thu, 29 Oct 2015 10:43:00 -0700

Buying a Nevada County Home? Search all Homes for Sale

Selling a Nevada County Home? Get a FREE Home Value Report

Today, I want to address a question I get on a day-to-day basis: Where is the Nevada County market heading? Let's take a look at the numbers:

There are about 665 homes on the market, 195 of which are in escrow.

We only have about a 3-month supply of homes.

We're on track to sell 100 more homes this year than we did in 2014.

There's been a 45% increase in the number of homes sold over $500K

Home values have appreciated by 10% since this time last year. What do these stats mean for you? Well, it means our market is still quite active, even though fall is in full swing. Prices are up and inventory is low, making now a fantastic time to sell if you want to get top dollar and sell fast.

If you have any questions about market conditions in your neighborhood, please don't hesitate to reach out to me. I would love to hear from you!

Our Most Recent Listing in Nevada City

Kurt@KurtCongdon.com (Kurt Congdon) — Fri, 18 Sep 2015 14:25:00 -0700

Buying a Nevada County Home? Search all Homes for Sale

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Today we are excited to give you a virtual tour of a spectacular mediterranean estate right here in Nevada City. This property is at 13108 Woodstock Drive, and is located in Nevada City’s prestigious Banner Mountain Woodlands.

The floor plan radiates around a stunning Great Room, complete with a 2-story fireplace. In addition to the Great Room, there is also a formal living room, a formal dining room, and recreation rooms.

The kitchen is newly remodeled, and finished with cherry wood cabinets, stainless steel appliances, and hickory floors.

The two full master suites in the home separate the guest quarters, and the master bathroom has been updated with the best finishing textures available. All four of the bedrooms have private balconies as well.

There’s a great sense of luxury and serenity here. There are beautiful views of the forest, as well as tranquil fish ponds and fountains.

This is truly a spectacular property, but the video tour just doesn’t quite do it justice. If you have any questions about this property, or would like to see it in person, give us a call or send us an email. We look forward to hearing from you!

When Is the Best Time To Sell Your Nevada County Home?

Kurt@KurtCongdon.com (Kurt Congdon) — Wed, 19 Aug 2015 09:48:00 -0700

Buying a Nevada County Home? Search all Homes for Sale

Selling a Nevada County Home? Get a FREE Home Value Report

Lately, a lot of people have asked me, "What is the best month to sell my house?" By this time of year, a lot of people think that the window has already passed them by, but that's simply not true.

Surprisingly, October is one of the best months to sell a home in Nevada County. As a matter of fact, there's less than 10% difference in sales when you compare May/June to September/October.

Another interesting phenomenon is that we see higher average sales prices in the fall. There are a few factors that could cause this. For instance, Nevada County is particularly beautiful in the fall. Buyers from out of the area love to come up here and see the fall colors. Also, once the summer recreation season is past, people are more focused on the home search.

So if you've been thinking about selling your property, fall could be one of the best times to sell your home. If you have any questions about today's video, or if you're interested in selling your property, give me a call or send me an email. I'd be happy to help you!

Nevada County Real Estate Market Update

Kurt@KurtCongdon.com (Kurt Congdon) — Thu, 30 Jul 2015 07:50:00 -0700

Buying a Nevada County Home? Search all Homes for Sale
Selling a Nevada County Home? Check out our FREE Home Value Report

Today we're here with your midyear real estate review for 2015, and it's all positive news.

Here in Nevada County, there are 500 homes on the market this July. In July of 2014, there were 650 homes on the market. Now, during July of 2015, there are 250 homes in escrow. In 2014, there were 175 homes in escrow. This means that we're seeing diminishing inventory and increased sales, which leads to appreciation.

However, it's hard to gauge how much appreciation is taking place. That's because homes don't appreciate evenly across every spectrum of the market. For instance, if you have a $250,000 home, it appreciates at a more rapid rate than a $750,000 home. Keep in mind, though, that all homes are appreciating.

Volume of sales is up by 31%. Coldwell Banker, Nevada County's leading real estate company, is up by 31%, as are my own personal sales.

If you've been waiting for market improvement, appreciation, or just for the right time to sell your home, this is it. We don't know how much longer these market conditions will last, but we do know that things are good right now.

If you have any questions about today's topic, or about real estate in general, please give me a call or send me an email. I'd love to hear from you.

Why Get a Pre-Inspection?

Kurt@KurtCongdon.com (Kurt Congdon) — Thu, 2 Jul 2015 10:27:00 -0700

Buying a Nevada County Home? Search all Homes for Sale
Selling a Nevada County Home? Check out our FREE Home Value Report

Hey everyone, I wanted to stop by today to talk about the importance of getting a pre-inspection on your home before you list it.

When I say pre-inspection, I am talking about your standard home and pest/termite inspection. Instead of the buyer ordering it after they make an offer, however, this inspection is done prior to the home being listed. This inspection will check for any major issues that would effect the value or safety of the home, including electrical or plumbing problems.

If you're thinking of selling your home, getting it inspected will create a better environment for you in negotiations. In Nevada County, a buyer will make an offer on a house, then set aside the 17-day inspection period, where they will go through various inspections.

However, if you've already done this yourself, you can hand the inspection report to the buyer as soon as they make an offer. It doesn't prevent the buyer from having their own home inspection, but most of the time it stops them from ordering one. By doing this, you can shorten the inspection period to about 7 days.

So don't waste 2.5 weeks on inspections. Doing pre-inspections can help you get the ball rolling faster, and can even help you price your home more effectively. All in all, pre-inspections make the home selling process a whole lot smoother.

If you have any questions for us, feel free to give us a call or send us a quick email. We look forward to speaking with you!

Easy Ways to Neutralize the Look of Your Home

Kurt@KurtCongdon.com (Kurt Congdon) — Thu, 18 Jun 2015 11:33:00 -0700

Buying a Nevada County Home? Search all Homes for Sale

Selling a Nevada County Home? Check out our FREE Home Value Report

Today I just wanted to show you a video from HGTV that showcases how a home can be neutralized in order to attract more buyers. When you're selling your home it's important to remember that it is a product that people want to buy, so you need to depersonalize it.

This would mean removing any flashy paint colors like pink or neon, because as much as you like it, a lot of potential buyers will probably not enjoy it as much as you do. Earth tones work well, like beige or off-white.

It's also important that the color scheme of your home is uniform throughout the home. It can be jarring for a buyer to walk into a bright red bedroom when the rest of the home is painted white.

It's also important to remember that sometimes less is more. Clutter in the home can distract buyers from what your home offers, and you want them to see your home, not all of your belongings.

To get a better idea of what you might need to do, just watch the video above. Also, don't be afraid to contact me with any questions or concerns you might have.

I'm always here to help you!

What Trends Are We Seeing in Nevada County Real Estate?

Kurt@KurtCongdon.com (Kurt Congdon) — Wed, 6 May 2015 13:48:00 -0700

Buying a Nevada County Home? Search all Homes for Sale

Selling a Nevada County Home? Check out our FREE Home Value Report

Hey everyone, welcome back to my blog. I'm here to deliver you the latest information about the Nevada County real estate market. Today I am going to give you an update on what we saw in the first quarter of 2015.

Basically, it's all good news out there. We saw 4% home appreciation near the end of 2014, and my team's sales are up 40% so far in 2015. We are seeing a lot more movement in the higher price points in the market (above $600,000). Interest rates are still very favorable as well and are fueling the marketplace.

If you're thinking about selling and curious about the value of your home, give me a call. If you aren't, but happen to know somebody who is, pass along my information and have them contact me. Thanks again for tuning in! We will talk to you soon!

What Are the Latest Nevada County Real Estate Statistics?

Kurt@KurtCongdon.com (Kurt Congdon) — Wed, 11 Mar 2015 12:31:00 -0700

There are many great Grass Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (530) 273-0073 for a FREE home buying or selling consultation to answer any of your real estate questions.

Spring is nearly here, and today we want to bring you up to date on what's been happening lately in our local real estate market.

Right now, we are seeing a very interesting trend. There are currently 400 homes on the market, which isn't a very high number. However, there are currently 190 homes in escrow, which is the most we have had in any month in the last year.

In 2014, if you looked at the market at any given time, about 20% of the homes for sale were in escrow. So far in 2015, 30% of all homes for sale are in escrow, which is a significant trend in the right direction for our market.

If you're thinking of selling, it might be smart to get your home on the market sooner rather than later. There is high demand in the marketplace right now due to low interest rates, and buyers are gobbling up homes. If you wait until May or June, you are going to have another few hundred homes to compete against, so it could be an excellent time for you to sell.

Interest rates are still below 4%, but we don't know how long it's going to last. If you have been thinking about buying, locking in a rate now could save you thousands of dollars down the road.

If you have any questions at all, don't hesitate to give us a call or send us an email. We look forward to hearing from you soon!

What Does The Nevada County Real Estate Market Look Like?

Kurt@KurtCongdon.com (Kurt Congdon) — Wed, 21 Jan 2015 16:01:00 -0800

Hey there and Happy New Year, welcome back to my blog! Today I'd like to recap what happened in 2014 in the Western Nevada County real estate market, and where we are likely headed in 2015.

First off, some good news. In 2014, we saw home appreciation rise to 8%, while sales declined by 8%. These are classic signs of the real estate market normalizing and creating stability, which is good for everyone. In 2015, we will see continued stabilization in the market, a modest appreciation of 5-7%, and a more even playing field between buyers and sellers.

If you have been thinking of selling your home, you need to know about a few things. Most sellers tend to wait until the spring to put their property on the market for sale. Listing your home in winter may make things a whole lot easier. There is much less competition on the market right now for your home, while there are still plenty of serious buyers looking to make a purchase and lock in a low interest rate. This is a great time for both buying and selling in our market.

If you or somebody you know is thinking about buying or selling real estate in Nevada County, be sure to give us a call. We would be glad to help out and answer any questions you may have.

What Do Recent Trends Say About Our Market?

Kurt@KurtCongdon.com (Kurt Congdon) — Mon, 10 Nov 2014 16:46:00 -0800

Today, we answer the question: What's the state of the market here in Nevada County?

First, let's take a look at the numbers:

Sales are down 17%
Prices are up 9%
Distressed home sales have fallen significantly
An appreciation rate of about 6% is expected for 2015

What does all of this mean for you? Well, if you're looking to sell your home in the next year or so, you'll be doing business in an incredibly healthy market. The fact that sales have fallen is, in a sense, a good thing; it's indicative of a drop off in distressed property sales, which means our market is returning to normalcy.

Since homes are appreciating at a more sustainable rate than they were in 2013, first-time home buyers will have more opportunities to find an affordable home down the road. If you're looking to sell, people are still getting high values for their homes, so now is a great time to put your home on the market.

If you have any questions about market conditions in your area, or have a topic you would like us to address in a later video, feel free to call or email us at any time. We hope to talk to you soon!

The Fall Selling Season Is as Strong as Any

Kurt@KurtCongdon.com (Kurt Congdon) — Tue, 16 Sep 2014 11:46:00 -0700

It is commonly thought that the Spring and Summer months are the best time to sell your home. While this is true to an extent, people often write the Fall off as a bad time to sell. This simply isn't true. In fact, the Fall may be the best time to sell your home in Nevada County.

All you need to do is look at the numbers. In May, June, and July of last year, 380 homes were sold; in September, October, and November, 340 were sold. It's pretty incredible that only 40 fewer homes were sold in the later months, especially when you consider the fact that there are a lot fewer homes on the market during that time.

The Fall is an ideal time to sell because there is less competition in the market. Sellers often buy the myth that they will get a better return in the Spring and Summer months. Because of this, perhaps as much as 25% of homes for sale in September will be taken off the market by the end of the month. Looking at the numbers, October may be the single best month to sell a home in our area!

If you have any questions about market conditions in your area, or are interested in buying or selling a home, don't hesitate to reach out to us. We would love to help you in any way possible!

Why Are Online Home Evaluations so Inaccurate?

Kurt@KurtCongdon.com (Kurt Congdon) — Wed, 20 Aug 2014 12:10:00 -0700

Almost everyone uses online home evaluations when they want to know how much their home is worth. You should use these sites with caution - in rural areas like Nevada County, Zillow's algorithm can be extremely inaccurate. We have two real world examples to demonstrate this:

Two homes are built in the same year, by the same builder, and in the same area. One spends $150,000 on renovations while the other does nothing -- it hasn't been upgraded since it was built. Does Zillow have a way to account for the differences in value? It does not - "Zestimates" are based on the sales values of similar homes. So, if the untouched home sells first, it is likely the estimate of the refurbished one will be hundreds of thousands of dollars too low.
It is not uncommon for a home in escrow, which had received multiple offers, to have a "Zestimate" $75,000 less than we have it under contract for. For instance, a home with panoramic views and a flat lot may be valued at the same price as a nearby home located on a steep hill with no view and no usable land. Again, if one of these homes sells, the other's value will be based on the previous home sale.

As you can see, Zillow and other online home evaluation sites fail to take important factors into account when determining value. To avoid misleading information, it is best to work with a trusted real estate professional. We have access to the relevant data so we can give you an accurate estimate. Want to know how much your home is worth? Give us a call or shoot us an email for the service you deserve.

Nevada County Real Estate Market Update for Summer 2014

Kurt@KurtCongdon.com (Kurt Congdon) — Sat, 26 Jul 2014 14:23:00 -0700

We have made it to the midpoint of the year in 2014, making now a perfect time for another market update. Here are some important numbers to pay attention to:

In the first 6 months of 2014, the average sales price has increased 5.5% to $325,000. This is equal to the average sales price from before the crash in 2008. We are still well off the all-time high in terms of average. It's unlikely we will see an average sales price of $474,000 again, at least in this particular market appreciation cycle.
Sales remain strong with a virtually identical number of sales in 2014 as compared to 2013.
Overall, the market is strong. Appreciation rates are at a healthy and sustainable level, and interest rates are quite low.

If you have any questions about the market, or if you are interested in getting a free valuation for your home, please give us a call. We would be more than happy to assist you with whatever you need.

6 common pitfalls for home sellers

Kurt@KurtCongdon.com (Kurt Congdon) — Mon, 2 Jun 2014 11:39:00 -0700

Everyone’s main objective when putting their home on the market is to sell it as quickly as possible and for the highest possible amount. It doesn’t always work out this way because homeowners make simple mistakes that hinder their home’s market value. I want to share with you today a list that I have come up with of 6 common home selling mistakes that sellers make. All of these mistakes are totally avoidable and fixing them could be the key to your home selling quickly.

1. Overpricing

Trying to maximize the profits on your home sale is not always the answer. There is a very fine line between what is determined as overpricing for your home’s listing and what is deemed a fair price. Overpricing can take a home and immediately ruin its chances of being sold.

2. Inability to Show the Home

It is of utmost importance to make your home as accessible as possible to both your agent and prospective buyers. Each showing of your house greatly increases the chances of your home being sold.

3. Decluttering and Depersonalizing

Organizing your house into a neutral setting is also key for getting prospective buyers interested. It is important for the prospective buyer to see themselves living in the home and can visualize adding their own flair to the living space.

4. Unpleasant Odors

Each home has its own distinct scent. If you have been living in your home for more than a few months, you probably don’t smell it, but others do. Having a pleasant, inviting aroma in your home will make potential buyers more comfortable in any setting and put them in a better mood.

5. Negotiability

You most likely will not be selling your home for your initial asking price. Buyers want to feel like they got a deal on a home, so the ability to negotiate a price comes into play.

6.Unwillingness to Make Repairs

While it is not expected of you to make every single thing in your house perfect, fixing things like plumbing leaks, electrical hazards, and broken windows will put potential buyers more at ease with purchasing your home.

If you would like to learn about some more common mistakes, or are in the market for buying or selling a home in Nevada County, please contact me at kurt@kurtcongdon.com or at (530) 273-0073.

Beautiful Craftsman Estate Available in Nevada City

Kurt@KurtCongdon.com (Kurt Congdon) — Tue, 13 May 2014 08:52:00 -0700

Beautiful Craftsman Estate Available in Nevada City
If you're looking to find a great home at a fabulous price, then look no further. This home is Craftsman-style built in 2000 with 3 bedrooms and 4 bathrooms, and has over 3,700 sq. feet. It is also situated on a 7-acre lot. Every aspect of its build was highly considered and it is an absolutely gorgeous home. This property features high ceilings, heated wood floors, and lots of natural light. There is a large fireplace with a spot to store extra wood, and this makes the living room all the more inviting and cozy.

The kitchen features cherry cabinets and a large granite island to accommodate all of your cooking and entertaining needs. There is also a cozy breakfast nook attached to the kitchen that makes the perfect place for a family meal or a romantic dinner.

The sublime master suite, with a private seating area, leads into the resort-style bathroom. The bathroom features marble flooring and a marble double vanity, and there is also a steam shower and soaker tub under a moon window looking into a private garden.

The upstairs family room and office lead into a guest bedroom with a pullout bed for added storage.

The beautifully manicured 7-acre lot showcases ponds, multiple patios, and outdoor lighting. There is also an oversized 3-car garage that houses a workshop with a bathroom that could easily be converted into a guest room.

This home is nestled into the Sierra Nevada Mountains and will delight any buyer looking for a beautiful home in a pristine natural setting.

If you are interested in this property or other Nevada City properties, then please do not hesitate to contact me. I am always willing to sit down with you and discuss your needs.

It's a Great Time to Sell in Nevada City, Grass Valley, and Penn Valley

Kurt@KurtCongdon.com (Kurt Congdon) — Wed, 16 Apr 2014 07:10:00 -0700

Spring 2014 Real Estate Market Update for Nevada County

I'm going to take this opportunity to give you an update for the 1st quarter of 2014. I'll be focusing my review on Nevada City, Grass Valley, and Penn Valley.

There were 248 sales in the first quarter compared to 285 sales in the first quarter of 2013, so sales are down.

The silver lining here is that the average sales price has risen.
Average sales price for this quarter is $345,000, which is a 12% increase from last year.

We have an inventory of 455 homes, and an additional 146 homes in Escrow today.

Bottom line is that inventory is very low, and is sitting right around 2.5 months' worth of homes.

If you're thinking of selling, there absolutely could not be a better time to do so.

With inventory so low, you will sell fast and for top dollar.
If you're unsure about selling, you'll probably be surprised at how much your home is worth, so contact me or utilize our free home value tool.

If you would like to sell, I would urge you to contact me and we can plan some ways to maximize the value of your home, as well as come up with a road map for getting it sold in a timely fashion.

Feel free to call me at (530) 273-0073 or email me at kurt@kurtcongdon.com

11 Expert Real Estate Predictions that Point to a Fantastic 2014

Kurt@KurtCongdon.com (Kurt Congdon) — Fri, 21 Feb 2014 14:43:00 -0800

This past weekend I went to a real estate retreat where the top real estate expert in North America shared with me some things he expected to see in 2014. In total, he gave me eleven points in his forecast and I'm going to share them with you now:

Home prices will continue to rise, bringing a certain amount of normalcy back into the market.
Interest rates will remain low, so buyers will see both great prices and great rates.
Inventory will also remain low, which will bring better prices because of increased demand.
New Home starts will go up 15-20% in the United States.
The real estate market will stabilize for the first time in 6-7 years as supply & demand balance out.
Realistic pricing will generate multiple offers on appropriately priced properties.
This new-found confidence in real estate will motivate buyers and sellers.
Home sales are expected to rise by 3-5% throughout the nation.
New Lending Policies will be put in place to help prevent the relapse seen in 2006.
Homeowners will continue to build equity.
Fewer 'under water' properties will translate to more equity for homeowners. This will create a move-up and a move-down market.

There you have it. The eleven expert predictions for real estate in North America for 2014. The great thing about all of these predictions is that they're all good news!

Contact me if you're ready to take advantage of the best market that we've seen in eight years. I can be reached at (530) 273-0073 or you can reach me by email at kurt@kurtcongdon.com

How Will the Trends of 2013 Affect You in the New Year?

Kurt@KurtCongdon.com (Kurt Congdon) — Thu, 9 Jan 2014 08:40:00 -0800

Happy New Year! It's 2014: are you wondering where the real estate market is headed? Where will interest rates go? Will the average housing price change? Before we launch head first into a forecast of the future, let's take a look back at 2013, and see how those trends will affect us going forward.

As you may know, we had historically low inventory numbers in 2013, and this led to a big 24% rise in appreciation. Nevada County also had 1,500 sales which is comparable to our peak in 2006. So what does this have to do with 2014? There are buyers on the market now and we have low inventory. In fact, right now inventory is at 363 homes. Take advantage of a seller’s market and sell now. There may be more buyers in the spring, but the buyers looking right now have a lot less options. And less competition will give you a higher return.

If you or anyone you know is thinking about selling, give me call at 530.273.0073 or send me an email at kurt@kurtcongdon.com Let’s talk about what your home is worth and how we can get it on the market now!

Market Update November 2013

Kurt@KurtCongdon.com (Kurt Congdon) — Wed, 6 Nov 2013 12:55:00 -0800

Welcome back to my video blog! Today I wanted to give you an update on what’s happening in our market.

If we look at the end of the third quarter of 2013, we saw property values had increased by 20 percent from 2012. Homeowners all benefited from the appreciating market.

Right now there are 470 homes on the market. This time last year there were about 600-650 homes listed. That means there are 200 fewer homes in inventory.

In the past 30 days, from Oct. 6 – Nov. 6, 93 new homes came on the market, 100 homes went into escrow and 106 closed escrow. With that information, we calculate we have about a 4.5 month absorption rate. That means if no new homes came on the market, the entire current inventory would be sold in 4.5 months.

With such a low inventory, we can expect little selection in the spring. If you are thinking about buy, now is the time. Give me a call so I can help you get into your new home for a great price.

Thanks for watching!

Government Shutdown Risks Hurting The Housing Recovery

Kurt@KurtCongdon.com (Kurt Congdon) — Fri, 4 Oct 2013 11:24:00 -0700

From: http://www.forbes.com/sites/morganbrennan/2013/10/01/heres-how-the-government-shutdown-will-affect-housing/

By: Morgan Brennan, Forbes Staff

The government shutdown is here. Whether it’s not being able to get a new Social Security card or visit a national park, Americans will immediately feel the effects. But there’s one bright spot of the economy that stands to be affected as well: housing.

One of the biggest questions regarding the shutdown and how it will affect housing has revolved around the mortgage market, specifically prospective buyers’ access to new home loans. After all, more than 90% of all loan activity is underwritten, insured, or owned by the government and its affiliated entities.

Initially at least, the mortgage market is likely to be only minimally impacted. New loans will continue to push through most government agency pipelines. What will change is how long the process takes, as many agencies expect to experience delays.

Mortgages purchased and securitized by Fannie Mae and Freddie Mac will be unaffected because their operations are paid for by fees charged to lenders. And the Department of Veterans Affairs will continue to guarantee mortgages for Americans that have served in the military since these loans are funded by user fees as well.

But if the government shutdown of 1995-1996 is any indicator, the process will take longer than usual. “Loan Guaranty certificates of eligibility and certificates of reasonable value were delayed,” the VA warned in its September 25th contingency plan.

Where there has been mounting concern is the Federal Housing Administration, which currently endorses about 15% of the entire single-family mortgage market. Several media outlets recently reported that the FHA would be unable to endorse any single-family loans and that no staff would be available underwrite and approve new loans.

That prospect would be somewhat worrisome – if it were actually true. The FHA’s Office of Single Family Housing will indeed remain open for business, albeit with a smaller staff. “FHA will be able to endorse single family loans during the shutdown. A limited number of FHA staff will be available to underwrite and approve new loans,” the report now states. In other words, other lenders’ loans will continue to be insured and some in-house lending will continue to take place at a reduced rate.

The reason for that mix-up: the initial draft of the U.S. Department of Housing and Urban Development’s contingency plan mistakenly stated that single-family loan operations would cease. The report was amended over the weekend.

The FHA’s single-family loan operations are funded through multi-year appropriations, meaning their budget is not tied to the government’s standoff over funding for the new fiscal year that starts in October. On the other hand, what will be more affected is the agency’s Multifamily Housing Office, which is funded through yearly appropriations.

“Because we are able to endorse loans, we don’t expect the impact on the housing market to be significant, as long as the shutdown is brief,” continues the HUD report. “If the shutdown lasts and our commitment authority runs out, we do expect that potential homeowners will be impacted, as well as home sellers and the entire housing market.”

One government lender that will indeed suspend its home loan activity, however, is the Department of Agriculture. The USDA says that no new housing loans or guarantees will be issued through its Rural Development programs in a shutdown. The department also warns that such a scenario could cause “a setback in construction start-up,” and if the shutdown lasts for an extended period, “a substantial reduction in housing available in rural areas relative to population.”

“The government doesn’t generally approve loans, they basically just insure them,” says Don Frommeyer, president of the National Association of Mortgage Brokers and a vice president at Amtrust Mortgage Funding. “For the most part you aren’t going to see much of a hit in the mortgage market unless it goes for a long period of time.”

If it does stretch on, he adds, the worry will be what mortgage rates do in a market shrouded in fiscal uncertainty and how that will affect the home buying, especially in light of recent rate spikes.

Home lending aside, many economists and real estate experts are keeping a close watch on how Americans will react to this shutdown. “Administratively everything should keep moving along, but it’s more about the confidence of consumers and whether they perceive that the government shutdown could lead to a recession,” says Lawrence Yun, chief economist at the National Association of Realtors.

Moody’s Analytics chief economist Mark Zandi recently told the Senate Budget Committee that a partial shutdown could shave as much as 1.4 percentage points off of fourth quarter economic growth if it drags on for several weeks.

Americans’ confidence in their ability to buy and sell homes hit a record high in May, according to a Fannie Mae survey. Since then, as mortgage rates jumped more than a percentage point, that confidence level has plateaued. If prospective homebuyers fear that the country’s economic recovery will stall, or worse slip back into recession, they will pull back on purchases, worries Yun.

“Home sales is always the first housing variable that changes so one would see sales declining and that would naturally lead to more inventory on the market and eventually put pressure on prices,” he says. But that would be a worst-case scenario based on a long-term shutdown.

Jed Kolko, chief economist at Trulia TRLA +6.43%, notes that if the shutdown lasts longer than a few days, the first places to feel the impact will be local economies with large concentrations of federal government workers. Metro areas like Washington, D.C. and Bethesda, Md., where 19% and 13% respectively of total local wages go to federal employees, would be the feel the negative effects of unpaid furloughs and with them, tightened consumer spending and weakening local economic growth. Though not all will be equally affected, other metro areas like Virginia Beach, Va., Honolulu, Hawaii, and Dayton, Ohio are areas that Kolko is keeping an eye on: “Whether there is a big effect depends on how long the shutdown lasts, how long people think the shutdown lasts, and whether people get back-pay. All those things matter for the impact.”

Still others are worrying even more about the next fiscal standoff, in mid-October, surrounding the debt ceiling debate and its accompanying threat of debt default by the U.S. ”With the threat of an impending partial government shutdown and yet another battle over the nation’s debt ceiling, in particular, we are really messing with fire right now—even if it doesn’t seem to bother some legislators,” says Stan Humphries, chief economist at Zillow.

“But the effects of a government default associated with the impending debt-ceiling deadline would be more pronounced because of its greater impact on domestic and international markets. This will rattle consumers and investors alike, slow down the overall economic recovery and further slow the housing recovery, which is already undergoing a moderation in the pace of home value gains due to rising mortgage rates,” he warns.

3 Reasons Why Fall is the Perfect Time to Sell

Kurt@KurtCongdon.com (Kurt Congdon) — Tue, 24 Sep 2013 13:28:00 -0700

Hello, everyone! Welcome back to my video blog!

A lot of people have asked me lately whether fall is a good time to sell or if they should wait until next year to put their home on the market. Many of you may be surprised to learn fall is actually one of the best times to list your home. In fact, from September to the end of November of last year more than 400 homes were sold in Nevada County.

So, the answer is yes, fall is a great time to list your home, especially this year. Why? There is a shortage of inventory but a large buyer’s pool. The demand outweighs the supply, especially because many sellers choose to wait until spring.

Secondly, buyers have a sense of urgency because they want to purchase before the rising interest rates impact their buying power.

The third reason this fall is a great time to sell is because there are less foreclosures and short sales. This means less competition when selling your home!

If you are ready to sell your home, give me a call!

Thanks for watching!

Is the increase in interest rates affecting the real estate market for sellers and buyers?

Kurt@KurtCongdon.com (Kurt Congdon) — Mon, 12 Aug 2013 08:19:00 -0700

Interest rates are affecting the market. They have increased about 1% over the last 12 months; however, I really don’t think interest rates are the only factor contributing to our change in the market. Specifically the change has been that sales are down 18% between mid 2012 and mid 2013.

What are the other contributing factors?

The two other primary factors that are contributing to the slowing in the market place are:
1. Lack of inventory: We are simply not seeing as many homes on the market and that is because the foreclosures and short sales have almost entirely disappeared, where two years ago it was almost 50% of our sales. However, the additional $40,000 in price reflects only an additional $23 per month in today's interest rates.
2. Appreciation: Entry-level homes have gone up by about 20% in the last six months. Our average sales prices have risen from $249,000 to $289,000.

So when you analyze those three factors affecting the market, the lack of inventory is the most impacting. We simply have fewer homes to sell than ever before. As a matter of fact we have less inventory to sell than we have in the past 15 years. So, sellers we need you now!

So if you know someone who wants to sell, give me a call. I’d be happy to give you a free market analysis; you might be surprised how much your home is worth in today’s market.

Thanks for watching!