Year-to-date home sales comparison, 2007 vs. 2008

As you know, real estate drives our economy. When times are good--more jobs, growth, an overall sense of financial security--home sales flourish. When those factors don't exist..........well...........
I am constantly being asked "How's the real estate market?", so I try to keep folks informed of what real estate is doing in their county and city, and I try to do it in a fair, non-sugarcoated manner. To do that, I've done a year-to-date comparison, January-June 2007 vs. January-June 2008, of the status of residential home sales for Wilson County and Lebanon. And the news is, well, less than favorable.

As you can see, home sales have taken a real hit this year county-wide, with Pended Listings (homes on which there is a contract) down 28%, Closed Listings down 25% and Average Days on Market (DOM), the length of time it takes to sell the average home, up 21%. That means fewer homes are being sold (actually a lot fewer), and it is taking longer to sell them. Bear in mind that the above-figures are for Wilson County as a whole, and that Mt. Juliet has still been growing. As you will note at the bottom of the chart, Lebanon Closed Listings are down a whopping 29%!

That's the bad news--the good news is this: If you are in the market to buy, you have enormous potential. It is absolutely a buyer's market and, with a little effort, you should be able to get a great deal on a home that probably has been on the market for a while. If you are looking for investment rental property, there are new-construction homes out there, never been lived in, that have been on the market up to-and-over a year.

Photos from Iraq

Sure there are still people in Iraq who hate the United States (even more when a Democrat Congressional Delegation tours there.......), but not everyone. Apparently not this young boy or his father--the future of a free Iraq.

And apparently not everyone is convinced what we have achieved there is pointless. Certainly not these 1200+ US servicemen and servicewomen in Baghdad who re-upped (re-enlisted) yesterday, July 4th.

"Pacman" Jones home may be foreclosed

Ah, the trials and tribulations of a misunderstood thug. I'm sure this is only due to the failed policies of the Bush Administration, huh? (s/off)

On the bright side, I'm sure there is a veritable army of lawyers who have been able to make their house payments thanks to Pacman's numerous encounters with the legal system.

Advice for Buying Investment Property

There is currently a LOT of real estate sitting on the market in most areas of the country, including Middle Tennessee; I recently added an update to my website showing the year-to-date real estate activity in Wilson County. Although average prices are up, compared to 2007 the percentage of closing price to list price is down and the days on market is up.

One area you might seriously consider is investment in rental homes. Traditionally the stereotype of this is to find a "fixer-upper", put in some sweat equity, then rent it out. However, there is a huge backlog of unsold new construction homes that are doing nothing but draining the builders' pockets. I suggest looking into some of these; you have the advantage of a new, undamaged home (no repair expense needed); usually in newer, better neighborhoods (which should increase your equity over the years); and a 1-year builder's warranty.

And if you're considering investing in a residential foreclosure as a location for a business, you might want to check out this article from Inman News outlining some of the normal precautions you should take in evaluating properties.

"4 dollars.......Do I hear 5?"

So, are we all ready to start looking at houses from the back of a bicycle?
All the talk about alternative fuels, etc., is well and good, and should be explored; however, there are 60-100 million gasoline-powered vehicles in the United States today. What are we supposed to do, bury them in the back yard?
We have more than enough oil in ANWR (ANWR is about the size of North Carolina, and the drilling area is 1/6th the size of Dulles International Airport), locked in oil shale in the West (estimates of 200 years worth) and off-coast (which Cuba is already planning to tap into in our coastal waters by slant drilling) to make us oil-independent.
As long as we are depending upon the kindness of OPEC we are in deep doo-doo. Click here to take at least one small step to putting a possible end to Congress' weak-kneed response to the ridiculous rise in our energy prices.

Improve Your Home's Eye-Q

My most recent post below discussed the importance of your home making a good first impression on the prospective buyer. When they first drive by, it is crucial in the current market that your home makes their head turn. Well, nothing--I repeat, nothing---can do more to spruce up a so-so home than a well-tended yard. We are just now entering the gardening season (except for you hardcore gardeners, for whom every season is gardening season); the shoots are breaking the soil, the trees are getting fuzzy and most of us look with envy at someone else's flowers and garden. When I approach a home with a prospective buyer, the home can be mediocre, but plant some blooming flowers, maybe hang an overflowing pot of petunias, and the place takes on a whole new life.

A few years ago I found a fantastic resource of gardening ideas and tips. Garden Gate Magazine is published six times a year, contains no advertising (only product reviews) and is crammed with really good articles, hints and advice. Its even pre-punched on the spine for insertion in a three-ring binder!!

Garden Gate is only $20 a year ($30 for two years), and even offers a free issue, to let you try it out. Whether you're a Master Gardener, an avid amateur, or a first-timer who has no idea where to start, I highly recommend Garden Gate Magazine.

First Impressions

The cliche runs "You never get a second chance to make a good first impression". This is never more true than in marketing your home. A good first impression may not sell your home, but a bad first impression can most assuredly ruin the opportunity to sell it.

We're in a tough market right now; money is fairly cheap, but there is a flood of homes available. Ask yourself: If your first impression of the home you are driving up to see is one of junk, disrepair and neglect, how excited will you be about going inside? When I work with buyers I promise them I will let them see all the homes that fit their criteria; I don't promise them that I will take them inside every home. I give my buyers the MLS sheets on all the homes, tell them to do drive-bys of them, and narrow the list to 4-6 they would actually like to visit. Its amazing how many possible visits we eliminate by the buyers driving by the homes.

Here are a few "first impressions" stumbling blocks and what you can do to remove them:

1. Neighborhood: Okay, I listed this first as there is really little you can, in the short term, do about it. If your neighborhood is plagued with junk cars, untended lawns, trash everywhere--well, that may be why you're trying to move, right? The best you can do here is make your home the "rose among the weeds". Believe me, there is someone who will buy your home at the right price; you have to make sure that that first impression of your individual home doesn't immediately run off prospects.
   
2. Lawn: Mow it!!!! Nothing says indifference and neglect more than a weed-choked (lets be honest; its seldom actual grass that gets out of hand) yard. Prospective buyers want to imagine enjoying the yard, not trying to fight their way through a jungle.
   
3. Toys, junk, etc: If you have kids with Big Wheels, etc., get that stuff out of the front yard. Get it off the front porch. For pity's sake, don't leave soda bottles, cigarette butts, drive-thru garbage--ANY trash must be gone!!! Also get rid of broken swing sets, broken porch swings, broken lawn furniture--hopefully by now you get the picture.
   
4. Disabled cars: Need I say more? I you must have an out-of-commission car, at least keep it around back or at the end of the driveway, not in the yard or on the street.
   
5. Exterior maintenance: You'd be amazed how much investing in a little bit of paint, buying some replacement shutter, fixing a few roof shingles will repay itself.
   
6. Landscaping: I'm not talking about turning your home into an English garden; just buy some cheap flowers (petunias or pansies do nicely and are quiet hardy, as are zinnias in the summer). If you don't have any bushes around the house (on the flip side, don't let those you have get out of control and grow too large) buy and plant a few. A few bags of black mulch will also help immensely for drive-by lookers. You might also consider a hanging basket or two on the porch; ferns or, again, petunias or pansies.

Hope this helps. I'd love to show my clients your home, but you gotta help them want to see it.