Real Estate News!

In her article, Get Ready for Real Estate Rebound, Bernice Ross of Inman News continues:

The 10-year real estate cycle
All markets are cyclical. While markets differ dramatically, a 10-year cycle is common in many places. The Southern California market provides an excellent illustration. In 1960, 1970, 1980 and 1990, the real estate market was at its lowest point plagued by excessive inventory, foreclosures and short sales. By 1994, the market had stabilized from the downturn in the early 1990s. As market values were beginning to climb, the Northridge Earthquake hit. Extensive damage throughout the area sent the market into a tailspin. It took another three years for the market to stabilize again. The beginning of the next upswing began in earnest in 1998. The market peaked in 2005 -- seven years into the cycle -- and then began the current downward trend.

Given a 10-year cycle, California should be pulling out of the bottom and be on its way to a more normal market. This appears to be happening, despite the financial meltdown. The California Association of Realtors reported a 63 percent increase in sales in September. Radar Logic reports increases of year-to-year sales (2007 to 2008) ranging from a low of 16.3 percent in San Jose to a high of 74.3 percent in Sacramento. DataQuick reports that September sales were up from a low of 29.4 percent in Ventura County to a high of 106.1 percent in Riverside County as compared to September 2007. Mike Kelly of Keller Williams Sonoma reports that his market has only two months of foreclosure inventory and about four months of short-sale inventory. Foreclosures and short-sale inventory are rapidly being depleted in other areas of the country as well. As this inventory disappears, prices will stabilize and will eventually begin to rise.

Having gone through a recent little home remodel myself, I was interested to read Realtor magazine's most recent article titled Top Ten Project Paybacks.  Homeowners from across the country shared information from their most recent remodeling project, and from these numbers we are able to get a snapshot of 2008's Cost vs. Value report. 

It states, "exterior remodeling projects lead the way for recovery on dollars spent" with siding, windows and decks giving you the greatest chance to recoup your money.  When it comes to the inside of your home, it's probably no surprise to see that only the kitchen remodel can compare.

Amazingly, Tulsa ranked 3rd highest of 78 other cities when it came to Job Cost vs. Value at Sale.  Across the board, Tulsa averaged 95% of the cost recouped on various project remodels.  The only two cities ahead of that percentage were Honolulu and San Francisco.  

To find out more from this report or to get answers for any real estate concern, call me at 361-6942.  

In her article, Get Ready for Real Estate Rebound, Bernice Ross of Inman News continues:

The 10-year real estate cycle
All markets are cyclical. While markets differ dramatically, a 10-year cycle is common in many places. The Southern California market provides an excellent illustration. In 1960, 1970, 1980 and 1990, the real estate market was at its lowest point plagued by excessive inventory, foreclosures and short sales. By 1994, the market had stabilized from the downturn in the early 1990s. As market values were beginning to climb, the Northridge Earthquake hit. Extensive damage throughout the area sent the market into a tailspin. It took another three years for the market to stabilize again. The beginning of the next upswing began in earnest in 1998. The market peaked in 2005 -- seven years into the cycle -- and then began the current downward trend.

Given a 10-year cycle, California should be pulling out of the bottom and be on its way to a more normal market. This appears to be happening, despite the financial meltdown. The California Association of Realtors reported a 63 percent increase in sales in September. Radar Logic reports increases of year-to-year sales (2007 to 2008) ranging from a low of 16.3 percent in San Jose to a high of 74.3 percent in Sacramento. DataQuick reports that September sales were up from a low of 29.4 percent in Ventura County to a high of 106.1 percent in Riverside County as compared to September 2007. Mike Kelly of Keller Williams Sonoma reports that his market has only two months of foreclosure inventory and about four months of short-sale inventory. Foreclosures and short-sale inventory are rapidly being depleted in other areas of the country as well. As this inventory disappears, prices will stabilize and will eventually begin to rise.

The following is a portion of an article that was sent to me by Karen Heston, mortgage broker with BOK.  It gives a glimmer of hope.  Watch for more postings from this informative article in the days to come or access Inman News through my website at www.joeytoler.com. 

Across the country, sellers and buyers have been telling their agents that they are waiting for the presidential election to be over before they buy or sell any real estate. Now that the presidential election is in back of us, the bailout is in motion and the most recent stock market plummet seems to have passed, look for a substantial uptick in buyer and seller activity. People still marry, have children, retire and have to relocate for their jobs. Many of them postponed selling or buying waiting for market conditions to improve. Look for this pent-up demand to make its way into the market in 2009.

Bernice Ross of Inman News