NEGATIVE EQUITY DRIVING LOW INVENTORY

In early 2012, 31.4% or 15.7 million U.S. homeowners, had negative equity - where the value of their home was less than their existing mortgage.  This was the peak level which resulted from the 2008 market collapse.  Approximately, one in three homes had mortgages that exceeded the estimated selling price, clearly making it impossible to sell without financial loss. 

At the close of 2016, that percentage dropped to 10.5%, about a two-thirds drop from 2012 and 2.6% lower than 2015.  This means that today, one in ten home-owners with a mortgage are underwater (they owe more than the value of their home).   The good news is that, “more than 1.2 million American homeowners with a mortgage were freed from negative equity in 2016.  Currently, about 5.1 million homeowners nationwide are underwater, roughly one-third the total number of underwater homeowners at the peak of the negative equity crisis.”*

In Suffolk County, at the close of 2016, the percentage of homes with negative equity was slightly higher than the national average at 11.4% while the percentage of homes with equity of 20% or less (effective negative equity) was 24.6%.  This number is significant for our local market, since it holds back potential sellers for listing their homes, because there may not be enough equity in their existing home to cover a down payment for a new home and closing and moving costs.

If you wish to sell your home or property but feel you are in a negative equity situation, it may be a good time to get an update on the market and a current market analysis for your property.  Call us, 631 765 5333,  or email me at marie@beninatiassociates.com, we will give you a detailed analysis of your property value at our expense.  We have had amazing results these first two months of 2017! the left!  Call us, you’ll get an honest and thoughtful assessment to help you make an informed decision.

* Source: Q4 2016 Negative Equity Report: Improvement Continues, But at a Much Slower Rate, Svenja Gudell, Chief Economist at Zillow,  March 7, 2017.

Consumer Confidence in Housing Hits All-Time High

Americans are more optimistic about buying homes – so much so that the Fannie Mae Home Purchase Sentiment Index (HPSI), created in 2011, hit an all-time high in February, 2017. 

Fannie Mae’s HPS Index was 88.3, a 5.6 percentage point increase in February. The Index was also up 5.6 percentage points compared with February last year.

Some of the highlights of the report:

• ·       The percentage of Americans who say it is a good time to buy a house rose 11 percentage points to 40%, rebounding strongly from last month’s survey low.
• ·        The percentage of those who say it is a good time to sell increased by 7 percentage points to 22%, reaching a new survey high.
• ·        The percentage  of Americans who say that home prices will go up increased by 3 percentage points in February to 45%.
• ·        The percentage  of those who say mortgage rates will go down over the next twelve months remained unchanged for the third consecutive month at a negative 55%.
• ·        The percentage of Americans who say they are not concerned about losing their job rose 9 percentage points to a new survey high of 78%.
• ·        The net share of Americans who say their household income is significantly higher than it was 12 months ago rose 4 percentage points to 19% in February, continuing the increase from January and reaching a new survey high.

The increased post-election confidence in housing is good news all around.  If you are thinking of selling or buying, it’s time to get things in motion. Sellers: it’s time to get your homes on the market. Buyers: it’s time to move on your plans to purchase before prices and  interest rates climb higher. 

At Beninati Associates, we keep an eye on the market, and a ear to the ground.  As a buyer or seller, short of a crystal ball, tracking the economics of the marketplace will help you decide what to do and when to do it.  You can rely on us – we listen, we care and we get results for you!

Source: Fannie Mae News Release, March 7, 2017

HOME RENOVATIONS THAT MAY OR (NOT) PAYBACK

There is a lot written about what home renovations to do or not do and what will generate a good return when you sell and what will not.  But as in most cases with real estate, “location, location, location,” is what makes all the difference.

If you have a summer home in the Hamptons, a swimming pool, media room, and open plan may be essentials not just enhancements, but probably not even desirable in rural Kansas. 

So too for the North Fork,  where so many buyers are second home purchasers with an eye towards a place for extended family to gather and enjoy not just in season but year round, some amenities may make sense, where they did not in the past.

If you intend to renovate for your pleasure, it would be prudent to keep in mind that not everything you do for your own enjoyment , will necessarily add value to a prospective buyer.

Certain improvements always add value, like new mechanicals – updated heat and air conditioning systems,  new appliances,  interior and exterior painting, gardens that add eye and curb appeal, just to name a few.  Other improvements like an in-ground swimming pool will for the majority be considered a plus, but the added expense of a gunite pool  versus a liner, is not likely to translate to a higher dollar-for-dollar return.  This is an esthetic that is very personal.  So too, elaborate bathrooms and fixtures may or may not be appreciated by the next owner.

If you are renovating with an eye towards resale, be prudent, don’t skimp on quality, but don’t over spend on every bell and whistle that’s offered.  Keep things neutral but tasteful.

Whatever improvements you make to your home, should be made with this in mind – recognize that this is for your own enjoyment, knowing that some choices will not necessarily translate to dollar-for-dollar return when you decide to sell. 

If you are considering renovations to your home and would like a “REALTOR’s” perspective, give us a call.  We will gladly meet with you and at no cost to you, review your plans and share ideas.  At Beninati Associates, we listen, we really care...and we get results!

Looking to Buy or Sell your Home? Call us at 631-765-5333, or visit us on our website: beninatiassociates.net.  We listen, we care…….and we get results!

SAFETY FOR VISITING SENIORS

Inviting an older relative or friend to your home for a visit requires some thought and preparation to make the stay a safe and happy occasion.

          

  The National Association of Home Builders offers these suggestions if you have a senior temporarily in your house, such as a visiting older relative:

Clear Pathways:

Look for obstacles, including furniture that require visitors to have to maneuver around. Move any electrical cords that might be in the path of your visitor. If you find some, consider taping them to a wall. Keep stairs free of any objects and make sure the stair railings are secure.

Light It Up:

 Put night lights in dark spots that might affect your guest, such as in bathrooms, guest rooms, nearby hallways and even the kitchen. Make sure there is a light source within easy reach of the bed. Your visitor will also need well-lit outdoor walkways and entrances.

Don’t Slip Up:

 Make sure the guest shower has a non-slip floor, non-slip strips or a suction-attached non-slip mat. Beware of throw rugs, including bathroom mats. 

Get The Right Seat:

 Look for chairs and seating in your home that will best suit your guest. A chair or sofa that is too soft or too low can make it difficult to stand up and maintain balance. A chair with arms provides something to grip while standing up or sitting down. If your  living room or family room seating does not accommodate  these features, bring a dining room chair, preferably with arms, into the room.

Looking to Buy or Sell your Home? Call us at 631-765-5333, or visit us on our website: beninatiassociates.net.  We listen, we care…….and we get results.

PROPOSED TOWN CODE CHANGES THAT BETTER DEFINE BANKS AND BLUFFS

     Tuesday evening, at a Southold Town Board hearing, amendments to Chapter 275 Wetlands and Shorelines were proposed to better differentiate wetlands and shorelines and zoning differences between banks, which are usually applied to creek front properties, and bluffs, which are usually ascribed to sound front and bay front properties.

          

    Existing code definitions were modified a few years back where creek front banks with less precipitous slopes were combined with bluffs, a term used to define the more acute slope and usually at a higher elevation.  Although this distinction may not appear to be significant, it created problems for creek front property owners, seeking permits because they were being subjected to rules that were much more rigid based on the higher, steeper elevations.

         

     In addition, amendments were proposed Chapter 280 Zoning to include the definition between banks and bluffs to correct the unintended problem created  by the code modification in 2015.

           

     We applaud the Town Board, Zoning Board and Board of Trustees for their responsiveness and correction of the “unintended consequences” of  the existing code with the combined definitions. 

           

     We believe, the amendments need some refinement as noted by several experts who spoke at Tuesday night’s public hearing.  They pointed out, among other things, a need for additional definitions for “toe” and “top” of bluff, and consideration of revising the “slope” and “height” definitions of bluffs, as well as modification of  setback revisions which still places a burden on waterfront homeowners whose homes were built under a different code.  We urge Town officials to come up with an innovative way to “grandfather” existing properties and make new setbacks prospective. 

          

     Only with practical application of new code provisions to existing properties, can we avoid unintended, heavy burdens on the property owners when they need to repair or revise their existing structures.  

Looking to Buy or Sell your Home? Call us at 631-765-5333, or visit us on our website: beninatiassociates.net.  We listen, we care…….and we get results.

MIXED BAG RESULTS FOR 2016 EAST END REAL ESTATE MARKET*

Median Sales

The East End – North Fork and South Fork for the year 2016, reported a drop in the median price of 8.5% to $670,000 from $732,500.  Median prices dropped in two towns, Southampton dropped 13.2%, East Hampton dropped 4.5%;  while Southold increased 4.7% and Riverhead increased 5.4%.   2016 showed a softness in sales  at the higher end.

Dollar Sales

Dollar sales for the East End fell 6.9% for the year primarily due to  decreased sales in Southampton and East Hampton of down 13.6% and 4.3% respectively.  For the North Fork sales went up:  Southold increased 13.8% and Riverhead increased significantly to 34.9%.  Good results with strength on the lower to mid-priced homes.

Unit Sales

Overall the entire East End unit sales increased slightly by 16 units sold or .5%.  In Southampton and East Hampton , unit sales fell 6.6% and 7.8% respectively.  On the North Fork, Southold unit sales increased 9.2% and Riverhead ad a whopping 30.6% increase!

Overall the North Fork did well in 2016, with Riverhead having strong double-digit increases in dollar sales and unit sales.  On the other hand, the South Fork had weak results across the board.  

Business has been brisk on the North Fork for January – weather has helped a great deal.  If you’re thinking of selling, call us – it’s time!!!!

*Source:  Press Release, January 27, 2017, Suffolk Research Services, Inc. www.suffolkresearch.com

Looking to Buy or Sell your Home? Call us at 631-765-5333, or visit us on our website: beninatiassociates.net.  We listen, we care…….and we get results.

HOUSING ACTIVITY: COLD OUTSIDE – WARM INSIDE!

It may be cold outside, but the weather did not have a negative effect on housing activity in January.  Inventory is moving at a 4% faster rate annually -  as demand continues to outpace supply - according to realtor.com®.   Median list price, nationally,  has held firm at $250,000, a record for the off-season.  By comparison to the national average, Southold Town’s median price is about $525,000 and Riverhead Town has a median price of about $375,000.

Realtor.com® expects inventory to dip another 9%, despite 360,000 new listings entering the market.  Chief Economist Jonathan Smoke, stated that, “ the downside to this strong off-season is that we have started 2017 with a new low volume of available homes for sale and a new high for prices.”

As a buyer,  you should make your move now! Inventories are low, prices are moving up, mortgage rates will continue to inch up as we approach spring.  Brave the cold weather if you  have to, it will pay off in getting a better value and best of all you will be set to enjoy the summer season on the North Fork!

Sources: RIS Media, January 30, 2017, www.realtor.com

Looking to Buy or Sell your Home? Call us at 631-765-5333, or visit us on our website: beninatiassociates.net.  We listen, we care…….and we get results.