Prof. Michael Bordo interviewed by MarketWatch reporter, Greg Robb:
Did your eyes glaze over in the middle? Or at the end where Professor Bordo says he fears the Fed will wait too long to let rates increase?
Watch it again. You have time.
How does this relate to home sales in Cary, or elsewhere for that matter? I think it ties back to my post of October 28, 2011, “Creating Urgency? Or, Raise Interest Rates to Sell more Houses?” where I mentioned the point made by a client that the Fed has removed all urgency from the real estate market with prolonged artificially low interest rates.
Real estate agents who are working their tales off to “create buyer urgency” may be surprised to realize how hard the Fed is working against them by holding rates low for another year.
I saw it in yesterday’s Raleigh News and Observer, a reprint of an article from the Washington Times.
Wallpaper is staging a comeback!!! Read all about it here!
I had heard wallpaper rumblings and rumors. A year or so ago, HGTV Househunters featured a fellow who wanted a condo where he could unleash his burgeoning wallpapering talents.
And, it seems that anytime something falls as far from grace as wallpaper assuredly has, it rebounds into the spotlight again just to keep us on our toes.
I worked hard many years ago to develop wallpaper hanging skills. To cut and match and plumb and level well enough to let people see my work.
About the time I got good at it (Or so I thought), wallpaper fell completely out of favor.
And now, my skill is redeemed! Wallpaper is back!
So, you have a home to sell in Cary? And now your wallpaper is back in favor, right? Not so fast. It can be expensive to be a trendsetter out on the bleeding edge of the cutting edge.
I have yet to hear Buyers mention “Wallpaper” without wrinkling up their noses at the concept.
And a new media fad doesn’t mean that your floral 1990’s have suddenly become chic, in, old school hot, desirable, retro. Not at all. And that foil paper? Buh-bye!
Decor is a personal and volatile subject. Your delight may well be a well-qualified Buyer’s stupor. And we all know there is no excess of well-qualified Buyers.
The advice to strip and paint is going to be with us for a while, I am afraid.
HUD Home. Back on the Market!! 111 Sterlingdaire Drive, Cary NC
Case Number 381-848768
At $144,000 near the Heart of Cary, this home has a ton of potential!
2 full baths
Private side patio
Open Floor Plan
Close to everything Cary has to offer!
This HUD-Owned home is just waiting for your offer. HUD requires you to use a HUD-Registered agent to write and present it.
I am a HUD-Registered agent and can show it, represent you, and write up your offer. Note: Some HUD properties are reserved for Owner-Occupant, Government Agency, or Non-Profit Bids only through a period of time.
Never register on a real estate site to search for your next home.
Since the end of October, the North Carolina Museum of Art has been honored to host Rembrandt in America, the largest collection of Rembrandt paintings to ever have been exhibited in America.
The collection is on display for a few more weeks, until January 22, so you should be scheduling your visit soon.
I haven’t even visited the new NC Museum of Art since construction was completed, so I am overdue to find a reason to go.
Interestingly, I have been collecting Rembrandts in Cary and Raleigh for some time. Houses, that is. “Rembrandt” models by New Fortis/K Hovnanian Homes.
I live in a Rembrandt. Circa 1993.
Oddly enough, my Rembrandt is in a subdivision named “Giverny.” Rembrandt in Giverny? Maybe it should have been a Monet? That would have been OK, too.
The Elevation “D” Rembrandt was the masterpiece of the model. Full brick front, with half circle windows, a hip roof, and a finished bonus room over the garage all elevated the “D” to the top of the heap. It was the model home in Giverny, and as is common, the model became one of the most popular floor plans to be built. I belive our neighborhood is about 20% Rembrandts, of one elevation or another.
I live in a home built to Elevation “C.” The “C” has a partial brick front. We added a front porch that makes our “C” unique in the neighborhood.
Elevation “A” was the “plain Jane,” base model elevation.
Elevation “B” adds a rocking chair front porch.
Elevation “C” includes brick trim on the left of the front of the house, and a step down in the roof.
But interiors of these three elevations are the same, unless options were chosen to change them.
The two-story family room in the top rendering offers dramatic central height to the interior, and the rendering shows the palladian windows included in the “D” elevation. Our “C” Elevation home has rectangular transom windows in place of the palladians.
Most commonly, buyers chose to finish a loft area into a 4th bedroom and/or to add a 5th bedroom/bonus room over the garage.
Square footages vary from just over 2200 to about 2800 square feet.
While owners have customized their homes and properties over the last 15 to 18 years, a tour around the area turns up many Rembrandts. You can see the Rembrandt DNA in the photos, and also appreciate the pride homeowners take in personalization of their properties.
I have a client telling me that the Fed is working against home sales by artificially holding interest rates down. That people feel like they have at least two more years to watch housing, at least until mid-2013, which is the current apparent horizon of low interest rate projections from the Fed.
He says (actually, it was his very intelligent wife whom he quoted with full admiration and attribution), “Why feel urgency to borrow now, when we are clearly told that rates are going nowhere, and prices are feeble.”
Hard to argue with. So, the Fed has drained urgency out of the housing market; the National Association of REALTORS® and REALTOR® members support that effort, and then in a disconnect, they work themselves into a lather with educational sessions and programs and seminars to learn how to “Create Buyer Urgency!” Well, I have been hearing for 5 years that rates are going to go up. And the Fed tells me I will likely hear it for a couple more years, as we witness ongoing record low mortgage rates.
And I am supposed to look like a goon and twist arms to “Create Buyer Urgency” because rates will go up?
Nope. Not me. If you are ready to buy a house, give me a call. If not, think your way through it, and I will be around when you ARE ready. No pressure. No hassle.
Maybe instead of another silly 1st time buyers boondoggle, the Fed should just give us a road map plotting how and when rates will escalate. It just might shake some money loose and get it into circulation.
Do I do Open Houses?
Yes, I hold Open Houses in most of my listings, and I don’t worry about reasons given for not holding them.
Do Open Houses “work” in Cary?
I think many work well to expose the home to the market, to generate a little buzz, to get people in to visit.
“They are only for agents to get new Buyer Clients.”
No, I hold Open Houses to generate business for that listing.
“Only a low percentage of Open Houses result in a Buyer.”
I like to say, as a listing agent, holding an Open House is better than napping at home in front of the TV, and moaning that the real estate market is dead.
I was looking at visitor statistics on my No Hassle Home Search
this morning, and one detail jumped out at me.
With over 20,000 page views so far this month, 25%, over 5,000 of those views were in Photo Galleries. I.e., consumers routinely look at the property photos when surfing the internet to search for homes. And I am sure that other agents generate more traffic than I do.
It is not unusual for potential buyers to email me and inquire if more photos are available for someone else’s listing they have found on my IDX. Then I have to explain the nature of IDX services. And, sometimes I find that the Listing agent has used the tax rolls photo, which is NEVER complimentary to the property. Ouch! for that Home Seller.
Which do you think presents that home better to Buyers and Buyer Agents? I’m picking the top one, the one I shot. And when you multiply those page views I see by the number of agent IDX sites and scraper sites, the impact of poor real estate photos is exponentially increased. Like having a bad product and going international to purposefully gain more bad press on it. Why? Poor photography going viral to diminish property interest? How is that good for home sellers? Lack of photos, poor photos, etc, actually can be one of the worst marketing investments home sellers can make.