Still more on Pocket Listings in the Desert

Are “pocket” listings really an option when listing your home in La Quinta and Desert area? My recent post about pocket listings described what a pocket listing is and why you may consider you home not listed on the MLS when listing it with your agent. However, since then there has been a lot more discussion on the matter.
Currently 1 out of 4 homes listed in California are pocket listings during this time of extremely low inventory throughout the state. This works out to be around 26% of listings during the first quarter of this year are NOT on the mls, which is an increase from 15% last year.
The National Association of REALTORS® and the California Association of REALTORS® currently do not have an official policy for pocket listings. According to the California Association of REALTORS®, “Pocket listings or off-MLS listings are not illegal if the listing agent fully discloses the pros and cons to the home seller and follows the rules, but ‘may not be in the best interest of the property owner — particularly if a client does not know about the benefits of marketing his or her property through the MLS.’ “
CAR would like this “booklet” featured below handed to sellers who are considering having their home listed as a “pocket” listing.

Off-MLS Listing Q&A The Pros and Cons of Off-MLS Listings:

What Consumers and Real Estate Agents Should Know

By ____________

While not a new concept for veteran real estate agents, the terms “off-MLS” or “pocket” listings may be an unfamiliar phrase to many consumers and some newer agents.  Home sellers and agents should nevertheless be aware that the practice can adversely affect their goal of getting the best price reasonably possible for their homes.  As many as 10-15 percent of homes offered for sale today are “off-MLS” listings, according to one Multiple Listing Service (MLS).

If you’re considering selling your home, think about the advantages and disadvantages of pocket listings.

What is an “off-MLS” listing?

Simply stated, an off-MLS or pocket listing is a property that is marketed without the benefit of being listed for sale on the MLS (i.e., “hidden” in an agent’s pocket). A property that is listed on the MLS has the advantage of being actively marketed to every real estate agent who belongs to that MLS and, through those agents, to their vast network of potential buyers looking to make an offer to purchase the property. Active marketing on the MLS usually includes open houses, broker tours and inclusion of seller’s property in the MLS’s download to various real estate Internet sites commonly used to search for properties.

On the other hand, as the term implies, an off-MLS listing generally is marketed by a single agent to one or a select few potential buyers. The marketing pool can be so small that in some cases, other agents within the same brokerage or brokerage office may not even be aware that a fellow agent has an off-MLS listing.

Are off-MLS listings illegal?

It depends. They are not illegal if the listing agent fully discloses the pros and cons to the home seller and follows rules that are designed to protect consumers. Nevertheless, many real estate professionals believe that off-MLS listings may not be in the best interest of the property owner – particularly if a client does not know about the benefits of marketing his or her property through the MLS. To keep a listing off the MLS, a listing agent who is a participant of an MLS is required, under the rules of most California MLSs, to obtain a signed certification from the seller that he or she does not wish to sell the property via the MLS.

Why would a home seller agree to an off-MLS listing?

Off-MLS listings sometimes are requested by celebrities, judges, prosecutors, or others who wish to maintain their privacy and/or limit viewing of their property to a select individual or individuals with the financial wherewithal to purchase.

Are there reasons a home seller should avoid an off-MLS listing?

Yes. Most importantly, an off-MLS listing generally does not get the broad market exposure that a property listed on the MLS gains. That can significantly reduce the number of potential offers to purchase that a property seller may receive – an important consideration at a time when multiple offers above the asking price are commonplace in many neighborhoods. A recent survey of San Francisco Bay Area real estate agents conducted by MLS Listings, Inc. revealed that 74 percent of respondents believe an off-MLS listing decreases the chance a seller will obtain the highest and best price for his or her property.

Off-MLS listings also may impact real estate values on a larger scale. Property price evaluations completed on behalf of mortgage lenders – more commonly known as “appraisals” and a vital precursor to a homebuyer obtaining a mortgage loan – may be affected in communities where there are a significant number of homes being offered as off-MLS listings. That’s because not all off-MLS listings are entered into the MLS database once a property is sold. Without this critical information, it is more difficult for real estate agents and their sellers to determine a listing price, for agents and their buyers to decide how much to offer for a property, and for appraisers to determine the current market value of a property.

What should I do if an agent approaches me with an offer to sell my home as an off-MLS listing?

Ask your agent about the pros and cons of selling your home off-MLS. One advantage is that your listing remains private if you wish to maintain privacy. However, a disadvantage is your home may not be exposed to the full population of available buyers, which means there may be less competition among fewer buyers, resulting in a lower selling price.

If you decide to list your home off-MLS, your agent may ask you to sign a standard seller exclusion form (Seller Instruction to Exclude Listing from the MLS or C.A.R. Form SEL).  Be sure you fully understand what you are signing and the adverse consequences outlined in the form of not listing your property on the MLS.

And you may want to tell your agent that even if your home is not on the MLS, you want your agent to show and present all offers from both inside and outside his or her network.

# # #

 (Member name) is a REALTOR® with (Firm name) (add any other affiliation and contact info. if desired).
You want the best for your home, but may be unsure what that is or how to go about it. I am the professional who can give you the right information which IS in your best interest so you can make the best decision for your situation. Call me today and we can help you sell your La Quinta and Desert area home now!

The End of Low Mortgage Rates

Jul 01, 2013 by Mary Williams

Interest rates on home loans have begun to rise and that trend is expected to continue. If you missed out on the record lows, you should start looking for a home now.

Less Help from the Federal Government

The federal government has been keeping rates low by buying up Treasury bonds and securities that are backed by mortgages. Lenders have been able to provide loans at low rates and still make a profit with the government’s help. However, that is expected to end in 2013. When this happens, lenders will have to increase the interest rates to continue to make a profit.

An Improved Economy

The government also helped out by allowing the short-term interest rate to be at almost zero. This stimulated the economy by allowing other interest rates to drop considerably. The economy has been improving in the last four years, as is evident by the increase in the number of jobs and the better standing of the housing market. Because the economy is no longer in as great a distress, interest rates across the board will begin to go up.

The Low Rates are Extreme

Historically, low interest rates for mortgages are extremely unusual. That means it cannot be expected for those rates to be sustained in the long-term. In fact, the previous low rate was seen in 2003 at 5.23 percent. It is more likely that the rates will hover around that point in the near future. While mortgage rates are at a different percentage than Treasury bonds, you can determine what will happen by monitoring the two. When the Treasury bonds go up, you can expect the mortgage rates to also go up.

What This Means for Homeowners

The government has promised not to stop the purchase of Treasury bonds until unemployment shrinks further. However, it is expected that they will scale back, possibly as soon as September 2013. For people looking to buy homes, this means that interest rates will begin to rise steadily. While the change won’t be drastic, it is unlikely that we will see the record lows of 3 percent. If you’re looking at buying in the near future, the message seems to be: the sooner, the better. The longer you wait, the more you will end up paying in interest. In conjunction with this, house values will also increase with higher listing prices than what is being seen now. You may have to pay several thousand dollars more for a house a year from now than what you will pay if you buy it now. It appears that the window of opportunity for home buyers to get a bargain on their new home is closing soon.

The Impact of Interest Rates on REITs

Jun 26, 2013
With the rise of interest rates due to the decelerating federal stimulus program, real estate investment trusts (REITs) have taken a pretty big hit, according to recent reports. REITs were a boon in the world of rock bottom interest rates, but their popularity has since declined considerably. With REITs, 90 percent of profits are paid as dividends to investors. When interest rates are low, REITs are an easy bet. But as soon as rates start climbing, REITs drop out of favor, owing to their sensitivity to interest rate changes.

Fluctuating Interest Rates Drive down REITs Index

At a recent industry conference in Chicago, real estate investors and analysts discussed the impact of fluctuating interest rates on REITs. Reporter Diana Olick from CNBC’s Realty Check column found that REITs were down by 8 percent as investors rushed out of the market into stocks. “REITs are highly sensitive to the interest rate environment, they’re effectively bond substitutes on the equity side. They are enormous users of capital,” said David Toti, an REIT analyst. “A change in rates impacts their cost of capital, and it impacts their ability to acquire aggressively.”

As high-yield investments, REITs become less attractive when rates rise, says Toti. But it’s important to note that investors and analysts are on a continual high alert for any sign that interest rates and yields will return to historically average numbers. So when there is a drop in the REIT index, industry analysts are quick to point towards rising interest rates. Of course, interest rates have risen slightly since May, hovering just over 4 percent.

There appears to be some new evidence that when interest rates are driven up, REITs take a hit. During the second quarter, REITs stocks suffered, with the iShares FTSE NAREIT Mortgage REITs Index down more than 11 percent from the index reading three months ago. One expert, however, cautioned against jumping the gun. Marty Cicco, managing director of Evercore Partners told REIT.com that investors may be jumping the gun. On the question of whether or not the Federal Reserve’s fiscal policy and rising rates have influenced REIT performance, Cicco said, “I would suggest that the last two weeks have been a knee-jerk reaction, not just within the REIT sector, but the markets broadly.”

Positive Outlook for Multi-family, Student Housing, Healthcare REITs

In other words, there can still be a positive outlook for REITs, particularly in the healthcare sector. Top-tier companies who made a lot of gains during the recession still have much to gain from REITs. Other sectors that could benefit from rising rates include multifamily and student housing development. Over the past years, multifamily REITs have been eclipsed by more successful office or industrial REITs.

For today’s rising interest rates, REITs with the most cushion would include properties that typically have short-term leasing situations - such as multi-family, student housing, or healthcare.

4th of July Fun in La Quinta and La Quinta Resort & PGA West

There will be four days of 4th of July fun at the Resort and PGA West starting July 4th and running all weekend until Sunday.

 The Great American Block Party Barbecue at La Quinta Resort & Club

July 4th - 5:30 pm to 8:30 pm (open to the public) at the Fiesta Ballroom. Fireworks a little past 9:00 pm.

July 4th - 7:00 pm to 10:00 pm Fireworks Viewing Party and Mountain Dunes Burger dining at Mountain and Dunes Golf Course.

Further July 4 weekend festivities La Quinta Resort & Club will include dive-in movies, kids’ camp, pottery and canvas painting by the pool, candy Bingo, tennis clinics, stargazing, and swim lessons. 

La Quinta Chili Cook Off

July 4th - 4:30 pm at the La Quinta Park off Avenida Montezuma. Parade starts at 7:00 pm Free swimming 12:00 noon to 4:30 pm at Fritz Burns Park Pool. Fireworks at 9:00 pm at the La Quinta Park

Click here for more details!!

  View Larger Map

How to Know If a Reverse Mortgage Is Right for You

Desert Luxury Realty

If you’re of a particular age and short on cash, a reverse mortgage can be a godsend. But how do you know if it’s right for you? Before you start to tear your hair out, here are a few items to consider.

 What is a Reverse Mortgage? 

Reverse mortgages, officially called the Home Equity Conversion Mortgage (HECM), are government-sponsored products that help seniors earn a little cash off home equity. To be eligible, you must be over the age of 62.

Seniors most often take out a reverse mortgage to supplement social security income, make home repairs, meet unforeseen medical expenses, or for other “rainy day” events. Typically, taking out a reverse mortgage is only worthwhile if you plan on staying at home for a long time. The biggest advantage a reverse mortgage offers is the ability for seniors to remain at home for as long as possible, without the need of imposing on family members or moving to an assisted living facility.

The full requirements to apply for a reverse loan include:

• Be 62 years or older
• Own the home or have a low mortgage balance
• Live at home
• The home must be a single-family or 2-4-unit home

When a Reverse Mortgage Is Not a Good Idea

With a reverse mortgage, you receive cash every month out of your home’s equity. When a home is sold or no longer the primary residence, all the money received, interest, and loan fees associated with the reverse mortgage must be paid off. For these reasons, it’s a bad idea to get a reverse mortgage if you’re going to sell the home or move away at some point. It’s also not a good idea to take out a reverse mortgage if you have any heirs, because the debt transfers to them through your estate.

The reverse mortgage works to meet your immediate financial goals and gives you an extra boost. It should supplement your main source of income. You should not consider a reverse mortgage if you currently struggle to pay property taxes or homeowners insurance.

Modify Your Home to Fit Changing Needs

Because of medical advances and emerging services for the elderly, it is often quite conceivable that you can stay in your home as long as you want. You should be committed to staying in your home for at least five years to recoup the costs of the loan, but to get full value from your mortgage you should stay in your home for the remainder of your life.

With a reverse mortgage, there are a couple of options for your cash out. You could get an immediate lump sum, a line of credit, monthly annuity payments, or a combination of all three. With this extra money, you could finance extra help at home, either for homemaking services or daytime home healthcare. Usually, to get the loan, you must have some specific purpose for which you’ll be using the money. You could use it to renovate the bathroom, or add an extra railing for safety. Any type of home repair or renovation is a great use for a reverse mortgage.

California May home sales and price report

Press release - June 17, 2013
Bolstered by strong sales in higher-priced regions, California  median home price records largest year-to-year gain since 1980, C.A.R. reports

LOS ANGELES (June 17) – Strong sales growth in higher-priced markets and continued housing supply shortage pushed up California’s median home price in May, resulting in the largest year-over-year price gain in at least the last 33 years, the CALIFORNIA ASSOCIATION OF REALTORS ® (C.A.R.) reported.

“It’s encouraging to see median home prices across most parts of the state continuing to recover.  The Bay Area, in particular, has been experiencing strong price appreciation, thanks to the region’s robust economic growth, extremely low housing inventory, and an increasing demand from international buyers,” said C.A.R. President Don Faught.  “San Francisco County’s median home price, for example, increased 28 percent from last May and has just surpassed its previous record high reached in May 2007.”

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 431,370 units in May, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in May were up 1.9 percent from a revised 423,420 in April but down 3.6 percent from a revised 447,530 in May 2012.  The statewide sales figure represents what would be the total number of homes sold during 2013 if sales maintained the May pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home rose 3.6 percent from April’s median price of $402,760 to $417,350 in May.  May’s price was up 31.9 percent from a revised $316,460 recorded in May 2012, marking 15 straight months of annual price increases and the eleventh consecutive month of double-digit annual gains.  The year-over-year price increase was the highest since at least 1980, when C.A.R. began tracking this statistic.  The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.

“While home prices are increasing at levels above those observed in 2006-2007, the fundamentals of the housing market are much more solid than what we experienced a few years ago,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “More home buyers are putting down larger down payments, and many of them are opting for more stable loan products.  Additionally, historically low mortgage rates have reduced monthly mortgage payments substantially, making owning a house more affordable, even with rising home prices.”

Other key facts of C.A.R.’s May 2013 resale housing report include:

• The available supply of homes for sale dipped in May, and was down markedly from a year ago.  The May Unsold Inventory Index for existing, single-family detached homes was 2.6 months, down from 2.8 months in April, and down from a revised 3.6 months in May 2012.  The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate.  A six- to seven-month supply is considered normal.
• Homes sold slightly more quickly in May, with the median number of days it took to sell a single-family home decreasing to 27.1 days in May, down from 27.9 days in April and down from a revised 45.7 days for the same period a year ago.
• Mortgage rates ticked up in May, with the 30-year fixed-mortgage interest rate averaging 3.54 percent, up from 3.45 percent in April 2013 but was down from 3.80 percent in May 2012, according to Freddie Mac.  Adjustable-mortgage interest rates in May averaged 2.55 percent, down from 2.63 in April and down from 2.74 percent in May 2012.

June's Newsletter

June's Newsletter is Out!!

Follow this Link to Read More!

Foreclosure Rates Continue To Fall

Desert Luxury Realty

The financial crisis seems almost a ghost of history now that home prices and sales are rising. Foreclosure rates, another key indicator of the Great Recession, have also plummeted in the past year, down by 25 percent, according to a new study released by Lender Processing Services (LPS).

The new data from LPS mirrors what others have been saying about foreclosures. The National Association of Realtors recently reported that the number of distressed sales is down by 3 percent from last month. Lower rates of foreclosure and short sales can be attributed to the overall improving housing market, including record low mortgage rates and new government-sponsored refinancing programs. The Making Home Affordable initiative helps underwater homeowners refinance mortgages at lower interest rates to avoid foreclosure.

The LPS report also found that the number of homeowners in delinquency - loans that are 30 days or more past due - has fallen drastically since July 2008. At a rate of 6.5 percent, more than 9 percent less than year-prior levels, delinquency is down across the U.S. The five states with the lowest rate of overdue loans are Montana, Wyoming, Alaska, South Dakota, and North Dakota, according to the LPS. However, there are still more than 3 million properties underwater. The states hardest hit in the crisis - New York, Nevada, and Florida - still have the highest rates of delinquency.

Foreclosures strongly impacted the duration of the housing crisis, forcing many homeowners to move in with parents or rent. Gains in home prices before last year were limited due to the amount of shadow inventory in the market. Jann Swanson of Mortgage News Daily reports that shadow inventory of foreclosures is up from last year as a result of the National Mortgage Settlement. “U.S. foreclosure inventory has increased by about 12 percent since May 2012 when it hit a five-year low of 1.3 million properties,” writes Swanson. “Today, that inventory stands at about 1.5 million and is up 9 percent from the first quarter of 2012.”

While foreclosure inventory is up, the rate of new foreclosures is in decline. In fact, inventory is down from its 2010 peak by nearly 1 million. Daren Blomquist, vice president of RealtyTrac explains how the National Mortgage Settlement relieves pressure from foreclosures. “The settlement provided some closure regarding accepted foreclosure processing practices, and as a result lenders have been reviving more of these delinquent loans and pushing them into foreclosure over the past 12 months, particularly in states where a lengthy court process has resulted in a bigger backlog of non-performing loans still in snooze mode,” Blomquist said.

Distressed sales of foreclosed homes or short sales bring down the market value of property. However, as the rate of foreclosures continues to decline, housing prices will soon reflect market value.

Can't find the color you're looking for? There's an App for that!!

I recently posted on Mary Williams Interior Redesign “How to Pick Your Paint Colors”….

Well, there’s an app for that –

Behr Paint has introduced ColorSmart by Behr™ Mobile which is available for iPhone, iPad, and Android. The mobile site mirrors the online site to find just the right color for your room. You will be able to photo-match to any Behr color, preview colors, save colors and room images and paint a room – now all on your phone! FUN!! Benjamin Moore has Color Capture for iPhone & Android. See a color? Snap it and Benjamin Moore will find that color in their color charts. Save them to favorites and show to your paint dealer when you’re ready to have that room painted!! Sherwin Williams has ColorSnap for the iPhone. This app will also match any color in a photo you took on your iPhone. You can even email your newly found color matches to your favorite room redesigner!! Valspar also has an app which will help you choose the color and how much paint you’d need. However, you’re painters certainly will figure that out for you.

If you are thinking about a remodel, redesign, or reorganizing; then I am your redesign professional!

If you are considering selling your property, and you think it needs staging; I am your neighborhood professional!

Call me at 760.567.7282!

Are Pocket listings in your best interest in the Desert?

June 4, 2013 By Mary Williams 

Last month I wrote about pocket listings in La Quinta and surrounding communities. Since then, there has been quite a bit of conversations since it is quite controversial.

Robert Bailey, 2013 chair of MLSlistings Inc. in California recently attending the REALTORS® Midyear Legislative Meetings & Trade Expo, said, “Clearly they’re not ‘off the market,’ nor are they in your pocket. They’re not on the MLS.”

According to the Bailey’s report, pocket listings increase 12% in 2011 to 15% in 2012 and up to 26% in the first quarter of 2013! Almost one fourth of all the listings in California are not shown on the MLS.
However, as I posted earlier, there are pros and cons about keeping your home off the MLS. You need to know all your options BEFORE your home is listed and I can give you that information.

Call 760-567-7282 and let’s discuss what your options are and what I can do for you.

Where to you start with a Redesign Project?

Mary Williams Interior Redeisgn

It’s so exciting! You are going to update, refresh or redesign your home. But wait! Before you hand over a hammer or money to just anyone there are a few things you need to get in order.

Know EXACTLY what you want.

That sounds pretty elementary, but if you don’t know exactly what you want, you may end up with something the contractor likes or wants only to find out that is exactly what you DIDN’T want.

Don’t run with the lowest bid.

If you are looking at remodeling or redesigning from just the $$$$, you may end up with exactly what you are paying for. I know it can get expensive, but spending the money on quality work as well as materials will save you huge headaches in the long run. Best thing to do is to gather three bids from reputable contractors and then ask the questions to determine who is the best fit for you and your redesign project.

Get it in writing!

S*P*E*L*L out your project in extreme detail and include time limits. Also, include verbiage which includes what happens if there is a defect in the material or workmanship. Be sure to include a payment schedule to what is paid at what point. Don’t pay all upfront – delegate a certain amount of money to be paid at different stages of the redesign, leaving the majority of payment after the work is completed.
Finding the right contractors or where to start can be daunting in itself, but I’m here to help!

If you are thinking about a remodel, redesign, or reorganizing;
then I am your redesign professional!

If you are considering selling your property,
and you think it needs staging; I am your neighborhood professional!

Call me at 760.567.7282!

.

Vacation homes are HOT in the Desert!

According to a recent report from REALTOR(r) Mag, the Vacation Home market is heating up. Americans are feeling better about the economy and area showing that by spending money on Vacation or 2nd homes. One of the major enticements is the low interest rates - the other is the great deals out there. However, many vacation homes are purchased with cash in the Desert. Nationally about 46% of vacation home buyers paid in cash. If buyers did finance, they generally made at least a 27% down payment.

According to the NAR(r) report, there was a 10% increase in vacations homes purchased in 2012 - and it has been going on strong ever since and especially here in the Desert.

"A lot of buyers who were sitting on the sidelines decided last year was probably a good time to take advantage of buying a vacation home," says Paul Bishop, NAR’s vice president of research. "They were feeling pretty good about their own financial situation, given the growth in the market and in the economy."
Even though it's about the end of our Season in the Desert, it won't be too long and the winter season will be upon us. Why not take advantage of the housing prices in the Desert now and have your home all lined up to come back to in the Fall?

This would be a great time to purchase and then refresh and redesign during the hot summer months. Call me today to find out how.

Mary's Newsletter is Out!

May's Newsletter is Out!!

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California's Median Home Price 28% HIGHER than Last Year!

Desert Luxury Realty

Total Single-family homes sold in California

April 2013 - 423,510 single family units sold

March 2013 – 417,880 single family units sold

April 2012 – 43,770 single family units sold

April 2013 was down 3.7% over last year, perhaps due to the low inventory.

Median Prices for homes sold in California

April 2013 - $402,760

March 2013 - $378,960

April 2012 - $312,500

April 2013 was 28.9% higher than last year AND the first time since 2008 the median home price has popped over the $400k mark. This also marks the 14^th continuous month home prices have gone up and 10^th month of double digit gains. The increase of the median home price in due to the increase of luxury homes sales. “The upsurge in the median price continues to be driven by an increase in sales in the upper- price range, where low inventory is less of an issue,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Over the past year, home sales in the $500,000-and-higher market segment posted a year-over-year gain of 35 percent on average, which contributed to an increase in the statewide median price of nearly 30 percent from the previous year.”

Inventory of Homes in California

Inventory of unsold existing homes was 2.8 month supply, which was down from March and down from 4.2 months last year. A 6 to 7 month supply of homes in California is considered normal. With fewer homes on the market, the homes are selling faster. Almost half the time as last year. April 2013 County Sales and Price Activity (Regional and condo sales data not seasonally adjusted)

April 2013	Median Sold Price of Existing Single-Family Homes					Sales
State/Region/County	Apr-13	Mar-13	Apr-12	MTM% Chg	YTY% Chg	MTM% Chg		YTY% Chg
CA SFH (SAAR)	$402,760	$378,960	$312,500	6.3%	28.9%	1.3%		-3.7%
CA Condo/Townhomes	$319,080	$306,050	$237,320	4.3%	34.5%	2.1%		2.7%
Los Angeles Metropolitan Area	$370,640	$352,510	$289,700	5.1%	27.9%	6.0%		2.2%
Inland Empire	$231,610	$227,920	$181,770	1.6%	27.4%	2.1%		-4.6%
S.F. Bay Area	$685,530	$636,150	$526,370	7.8%	30.2%	13.6%		-1.8%
Southern California
Los Angeles	$361,630	$340,890	$286,800	6.1%	26.1%	9.0%	5.7%
Orange County	$653,740	$619,430	$513,950	5.5%	27.2%	6.8%	9.7%
Riverside County	$274,420	$263,670	$213,950	4.1%	28.3%	1.3%	-4.9%
San Bernardino	$164,470	$161,900	$132,030	1.6%	24.6%	3.4%	-4.1%
San Diego	$454,390	$436,710	$369,910	4.0%	22.8%	4.5%	9.2%
Ventura	$502,940	$475,000	$427,320	5.9%	17.7%	6.5%	0.5%

  Information from a news release from California Association of Realtors®.

Purchasing your vacation home in the Desert

[social] It’s a known fact, once you leave the Desert, you dream of come back and purchasing a home in the Desert. Most times it’s your second or vacation home – a get-a-way from the cold and snow of winter. However, before you start looking at homes, there are some things you may want to keep in mind.

Do you buy your home outright? Or do you finance it? Interest rates on vacation homes tend to be higher than conventional rates, but both are historically low right now. Both 1^st and 2^nd home interest rates are tax deductible … for now.

If you finance, should you opt for a 15 or 30 year mortgage? Adjustable rate? (Don’t forget we’re just getting out of the Housing crisis – many people had ARM’s.) If there’s a lot of equity on your first home, should you take out a home equity loan on that to pay down your vacation home? All scenarios to discuss with your loan officer before you write an offer or even start your Desert vacation home search.

Second/Vacation home mortgages, along with having higher rates, have more rules than if the purchase was your principal residence. One question the lenders will ask is how will you handle an unexpected financial crisis owning two homes and all their expenses? This will probably require you to detail and explain a lot more of your information than you would for your first home. It’s still a great time to purchase in the Desert and there are great homes on the market right now!

California Lifestyle Realty Featured Homes – May 10th to 12th

Your dream home awaits … Call 760-567-7282 today! Below are the latest properties featured in this week’s ad. Call me to see any of these great homes!

 

May 2013 Interior Redesign Newsletter

Pocket Listings in the Desert

“Pocket Listings” are not new in the La Quinta and surrounding areas in the Desert. In case you’ve heard of “pocket listings” but not sure what they are, they are homes which have been listed with a real estate agent/REALTOR®, but not submitted to the Multiple Listing Service.

Pocket listings are legal and a home owner can request their home to be a pocket listing, but is it in your best interest as a seller? The decision is totally up to you and what you think is in your best interest, but there are things you may want to think about before asking to have your home put in the “pocket”.

Your home will be restricted from the “public” access of the entire local multiple listing service. Your home may be unknown to other real estate companies and agents. If a potential buyer would search for your home on the internet (over 90% home searches start on the internet), your home may not show up unless it is on your agent’s website. In other words, not all willing and able buyers will see that your home is now on the market. You may not get the best possible price for you home, if it is not publically viewed.

However, according to CNNMoney, many high-end sellers would rather have more privacy when their home is on the market. And with the tight supply of home inventory, initial listings could create a frenzy of craziness.

There may be another reason you may want to list your home as a pocket listing - Test the real estate market because you may not REALLY be ready to sell.

Though the National Association of REALTORS® do not have an official policy on pocket listings, many of the legal and ethical rules and regulations are in place to protect the public.

If you’d like more information whether to have your home as a pocket listing or regular listing, call me at 760-567-7282 and we can discuss all the scenarios that are in your best interest in selling your home.
Also, don’t forget to follow me on Facebook!

La Quinta Summer Golf Tour

Summer Golf Tour

Registration begins on Monday, May 6!

ONLY $69 per player to register and reasonable weekly green fees

Continues through August 25

The La Quinta Summer Golf Tour is back. This 13-week golf program allows participants to play at some of the finest courses in the Coachella Valley. Tour participants may pick and choose which courses they would like to play. Players may choose to play in either single or team divisions; plaques will be awarded to the top finalists in both divisions at the Golf Tour Banquet on August 24.

This very popular summer program is back for another year of fun in the sun! 

Advance, intermediate, and novice golfers are all welcome to enjoy playing on this 13-week golf tour. Every Saturday morning, participants have the opportunity to play at some of the finest courses in the Coachella Valley. Players may choose to play in either single or team divisions and will be divided into flights based upon their weekly handicap. Points are earned throughout the tour based upon net scores. On the final Saturday of play, an End of Tour Banquet is provided for all participants to enjoy.

• Shotgun starts
• Reasonable green fees
• Plaques and prizes awarded at End of Tour Banquet

Enjoy these Participating Golf Courses!

• Indian Canyons, North Course
• Terra Lago, South Course
• Escena Golf Club
• Tahquitz Creek, Resort Course
• Indian Springs Golf Club (includes lunch)
• Indian Wells Country Club, Cove Course
• Marriott Shadow Ridge
• Eagle Falls Golf Course
• SilverRock Resort
• Westin Mission Hills, Gary Player Course
• Monterey Country Club
• Classic Club at Palm Desert
• Desert Willow, Mountain View Course
• End of Tour Banquet
• Desert Willow Golf Resort

*Guests are welcome to participate for a fee of $15 per week.

Please contact The City of La Quinta for more Details and egister at www.la-quinta.org/communityservices

If it starts with one REALTOR(r), Start Out Right!

Desert Luxury Realty

There Really Is Something About Mary.

Mary is not your typical real estate broker in any small and growing community. She brings high energy, passion, non-stop enthusiasm and knowledge to each of her clients from the Permanent Home Buyer to the Sophisticated Investor.

Her 6th sense and ability to listen carefully, allows her to quickly zero in on your preferences, saving you precious time. She is focused to the needs of all her clients, no matter what their criteria may be.

She makes buying or selling property fun, enjoyable, and easy. You’ll find yourself calling her over and over again for valuable information is easy and something you can depend upon. Making her clients feel confident and happy, is job one!

Mary has been in the service industry all of her working career, with over 30 years of a highly successful track record in Sales and Marketing, primarily in finance and real estate.

So, Is There Really Something About Mary? Call Mary and experience first hand why her clients become friends, returning repeatedly for their real estate needs and confidently referring their friends.

So find out what all the talk is about. . . . Give Mary a Call. . . . . . Mary Williams, That is!

Jumbo Loans May Mean Super-Sized Requirements in the Desert

With jumbo loans making a come-back into the Desert area mortgage market, many a luxury buyers (and sellers) are rejoicing!

But before you dash out and get a loan, you may want to know; Jumbo loans are coming with jumbo buyer requirements.

Specifically – buyers across the luxury home market that are considering a jumbo loan should be aware that large cash reserves are often required for purchases over $417,000.

Some lenders require their borrowers to have a reserve of up to 12 months’ worth of mortgage payments in the bank or liquid assets for purchases from $417,000 to $2 million according to a recent article from the Wall Street Journal Online. For loans over $4 million the figure is more like 36 months’ worth of reserves.

Cash reserves aren’t the only thing super-sized. Down payments are larger on a jumbo loan too. Most lenders require at least a 20% down payment for jumbo loans with some going as high as 45%.

If you don’t quite meet some of those criteria exceptions can sometimes be made. This is especially true if you call on a lender that you’ve done a great deal of business with. Items like reserve amounts can sometimes be tweaked with the right relationship or for a buyer who is strong in other respects such as credit or down payment.

Why the big costs? Jumbo loans represent a larger investment and a larger risk to the lender. Many of these homes are customized, making them appealing to a smaller pool of specific buyers so if the loan goes belly-up the home will be more difficult than average for the lender to unload.

The bottom line: Jumbo loans may require more money in reserve and upfront, but if you’re a strong buyer the luxury market can yield a pretty amazing home!

Whether you’re looking for a luxury vacation, a second home in the Desert, or even miles away from us, I can assist you with your purchase in La Quinta and surrounding areas. Call 760-567-7282.

April 2013 Newsletter

April's Newsletter is Out!!

Follow this Link to Read More!

Vacation homes sales were up by 10.1% Nationally in 2012

 Mary Williams

In a recent news release, the National Association of Realtors® 2013 Investment and Vacation Buyers Survey reported Vacation homes sales were up by 10.1% Nationally in 2012. As nice as that sounds, it’s still not up to the numbers we saw before the downturn.

According to the news release, NAR Chief Economist Lawrence Yun said, “favorable conditions are driving second-home sales.  We had a strong stock market recovery, which helps more people in the prime ages for buying vacation homes.  Attractively priced recreational property is also a big draw.”

Along with vacation home buyers, investors have been the major purchasers for the last two years in this market buying up the distressed properties and using cash to do so. Fifty percent of purchases made by investors were paid in cash. Those who did finance their investment properties made large down payments.

The 2013 Investment and Vacation Buyers Survey survey also detailed who were buying vacation homes:

• 80% will use the vacation home for vacations and retreats
• 27% will use the property as a future primary residence
• 23% will use it as a rental
• 23% saw the vacation home as a good investment
• 11% purchased the vacation home for another member of their family

NOW is the time to purchase your vacation or investment property in the Desert. If you’d like to have more details from NAR’s Vacation Home Survey, call me or follow me on Facebook!
Survey Report provided by the National Association of Realtors(r)

March Homes Sales in Riverside County, CA

Home inventory in La Quinta California

Mary Williams

According to a recent news release by the California Desert Association of REALTORS(r), "The Coachella Valley's real estate market forecast for 2013 is upbeat despite the dwindling inventory of available homes for sale in many valley cities."

The news release continued, " 'There is no question in my mind that if we get more people engaged in listing their homes, we're going to see a higher increase in sales in 2013,' Appleton-Young told the audience."
Pat Veling, owner of Real Data Strategie, noted that this year's real estate market is 180-degree turnaround from last year in terms of housing inventory and prices. He said inventory will rise as home values rise, especially among those who are "underwater" in their mortgages.

This mirrors the same sentiment of an article by a post today by "Keeping Current Matters" regarding reasons to sell your home. In their article, they also report inventory is key to the housing market moving forward and say sellers do have an advantage right now since the demand is high and inventory is low -- and homes prices are going up.

It's a great time to list your home in the Desert area. But time is getting tight - though homes are sold during the summer months, there are more prospects around now and until it starts getting hot.

If you're wondering if you should list now, call 760-767-7282 and I'll go over all the possibilities your home may have.
   

Surging Market Lifted 1.7 Million Homes above Water in 2012

[The number of homes in negative equity is on the decline, according to the real estate data firm CoreLogic. In the fourth quarter of 2012, the rate of underwater homes dropped to 21.5 percent, down from the previous year’s 25.2 percent. Rising home values have lifted 1.7 million households into positive equity in the past year.Underwater households are those which owe more on their mortgage than the home is actually worth. Currently, more than 10 million, or about one in five homes are considered “underwater.” CoreLogic predicts that home values will rise another five percent this year, lifting an additional 1.8 million out of negative equity.During the fourth quarter of last year alone, 200,000 households entered positive equity, according to CoreLogic. “The scourge of negative equity continues to recede across the country. There is certainly more to do but with fewer borrowers underwater, the fundamentals underpinning the housing market will continue to strengthen,” said Anand Nallathambi, president and CEO of CoreLogic, in a statement. “The trend toward more homeowners moving back into positive equity territory should continue in 2013.”

Housing Market Improvements in Hardest-hit Cities

The drivers behind the reduced number of underwater homes are improved market conditions, rising home prices, and shrinking inventory. Economist for CoreLogic, Mark Fleming said in a statement, “Housing market improvements, particularly in the hardest hit states are the catalyst for households to regain equity and become participants in 2013’s housing market.” The states that tallied the most underwater mortgaged properties were Nevada, Florida, Arizona, Georgia, and Michigan. Of those states, two Florida cities, Tampa and Miami, had the highest share of properties in negative equity. Atlanta followed closely, along with Southwestern cities Phoenix and Riverside, Calif. In each of these metro areas, the percentage of mortgage properties underwater exceeded 35 percent. Many of these households struggle to make monthly payments, and moving into positive equity comes as a huge relief. For some, rising home equity means they can finally sell to break even, if not at a net gain. Matthew Oropeza told the Wall Street Journal about his experience owning an underwater mortgage on his Phoenix home. Oropeza purchased his home for $96,000, but as the local market tanked, he realized his home was worth only $64,000. Oropeza held onto his home as long as he could, until his employer required him to relocate to Orange County, Calif. Fortunately for Oropeza, the Phoenix home price index jumped 23 percent last year. So when he contacted his real estate agent, he realized that the market had turned and he might even make some money off the sale. Oropeza now has an offer of more than $100,000 and expects to sell his home in the coming weeks. Call me today at 760-567-7282 to see how your area market is doing!

Jumbo Loans in the Desert

It’s a Big Comeback - Resurgences in Jumbo Loans help Revive the Luxury Housing Market in the Desert. While the rest of the housing industry is making some modest (and in some areas significant) strides luxury markets in the local La Quinta and surrounding area.

According to the National Association of Realtors sales of homes in the $750,000.00-$1,000,000.00 range are up 38.7% from a year ago and the $1,000,000.00 and up range are up 25.7%.

So why the sudden surge in luxury homes in the Desert? 

One big player in that game is the reappearance of Jumbo loans.

These loans cover purchases of over the FHA and Fannie Mae maximum of $417,000.00. 

Jumbo loans aren’t a new type of financing; but were all but completely impossible to find after the bubble burst in 2008 due to a lack of secondary market purchasers. Recently they’ve been coming back in a big way: for the four weeks ending February 22nd, new jumbo activity was up 60% from the same period a year ago, according to Mortgage Daily.

 Recently interest rates for Jumbo loans were close behind those of conventional loans, a phenomenon that is pretty uncommon. Because these loans aren’t backed or guaranteed by the government they pose a larger risk to the lender, which means in turn that they generally carry a higher interest rate.

So who is eligible for a Jumbo loan? As stated above they pose a greater risk to lenders than conventional or other types of loans, so the qualifications for approval are much more stringent. A person who qualifies for a Jumbo loan probably has a credit score of at least 760, a bank account sporting a years’ worth of mortgage payments or savings, 30 percent down payment, etc.

 With good interest rates and more lenders willing to make a Jumbo loan things are looking up for vacation markets across the country.

February Homes Sales in Riverside County, CA

 

Top 10 Remodeling Projects

Why is there such low inventory in The Desert?

If you have been looking to purchase in the La Quinta and surrounding area, you soon find out there are fewer homes on the market as in the past. Why does the Desert have low Inventory?

1. 29% mortgages are still underwater = some sellers just can’t sell yet
2. 80% of investors are buying and holding and renting instead of fixing and flipping
3. Pocket listings are becoming more commonplace.
4. Some sellers are still unrealistic with pricing = not real listings

Market Conditions:

• 30% of all transactions are all cash …………….Lending is still tight
• It is predicted that interest rates will remain low until unemployment is at 6.5%

Check out the charts below to see how the real estate trends in the Desert have fluctuated over the last several years. (click on each photo below to enlarge)



If you don't see your community or information you'd like to know, call me today at 760-567-7282.

La Quinta Housing Market Up for January 2013

It has been a long time coming, but it does look like La Quinta and the Desert Area housing market is making a recovery – and this time, it may stick around. January, the median price for all existing Desert area condos and newly built homes increased 32.9% to $220,000 from last year, San Diego-based DataQuick recently reported.

This continues the upward trend we started to see last year of 31% in December; 21% in November; 26% in October; 19% in September; 19.8% in August; and 20% in July, DataQuick reported.

Existing homes prices increased 22% year-over-year in January to $365,000 from $286,000, according to the California Desert Association of Realtors, based solely on the Desert Area Multiple Listing Service. The average sale price of a condo rose to $215,000 in January from $192,000 in January 2012, CDAR reported. Out of the 2,800 single-family homes and 1,228 condos listed in January, a total of 789 homes sold in the Desert in January, about the same as in January 2012, DataQuick reported. Inventory in the Desert area is considerably less now than January 2009 when 8,188 homes were listed or 9,134 homes listed in January 2008. There are fewer distressed homes on the market in the Desert as well. Approximately 23% of single-family home sales in January were bank-owned or short sales, down from 45% in January 2012, CDAR reported. Only 15% of condo sales were distressed properties, down from 38% the same month a year ago. Riverside County on the whole had a 6.5% increase in sales volume in January with 2,858 sales, and the median price rose 25% to $226,000, DataQuick reported. Across Southern California, sales rose 10.6% in January, and the median price jumped 23.5% to $321,000. All this shows the real estate market in the Desert is making a solid recovery. John Walsh, DataQuick president commented, “Let’s not forget, that we’re still climbing out of a deep hole from the housing downturn. Prices in many areas are at least 30 to 40% below their peaks.” But our area market is getting better and fewer homes in the Desert area are so far under water and many are now at the water line or above. If you want to know the market value of your home and how it compares to the other homes listed in La Quinta or others in the area, call me at 760-567-7282.

Is there a Window of Opportunity?

Right now, there is an inventory shortage of homes listed on the market.

As of January, total national inventory fell 4.9% representing a 4.2 month supply of homes on the market. This is the fewest number of homes on the market since 2005. Raw unsold inventory is at the lowest point since December 1999. According to Lawrence Yun, NAR chief economist, “Buyer traffic is continuing to pick up, while seller traffic is holding steady. In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We’ve transitioned into a seller’s market in much of the country.” And Yun agrees there will be more homes entering the market this spring, but may not be enough to satisfy the appetites of current buyers. With fewer homes available, home values have been increasing – ever so slightly. But enough that homeowners are starting to be less underwater. Homeowners who were recently “under water” (owe more on their home than its market value), now are making headway above their previous market value and even beyond. This is SUPER news for homeowners who were looking a taking quite a hit financially even a year ago. "Freed from negative equity, homeowners will have more flexibility, and some will likely choose to list their home for sale, helping ease inventory constraints and moderating sometimes dramatic, demand-driven price increases in some markets," said Stan Humphries, chief economist at Zillow, in a statement.

This creates a small window of opportunity that you may be able to take advantage of.

Fewer homes to compete with and more buyers serious to purchase creates a perfect selling scenario.

So what does this mean for you, a homeowner in the Desert?

Why not give me a call 760-567-7282 to see what your home IS valued at in today’s market?

I will sit down with you and go over the figures and your options. No hard sell – just information. And if it works for you, I will show you my proven marketing strategies to show your home in the best marketing light!

Sales in Riverside County for Janurary 2013

Real Estate Investors Seek New Markets Due to Housing Gains

Mary Williams

Investors have played a big role in the housing market since the beginning of the recovery. However, some areas are seeing a peak now, leading investors to move on to other markets.

Attractive Prices, Excellent Returns

Investors have been looking at foreclosures to purchase homes, fix them, and rent out. With the low prices, it’s been an excellent return on their investment. However, as purchase prices rise, some markets are seeing a decline in investor buys.

Phoenix is one city that has lost its popularity with investors, as the percentage of homes bought dropped from 36 percent in August to 28 percent in November. Much of this is due to the competition between investors, which drives the prices upward. The price increase cuts into the profits that investors hope to make.

Investors have been a primary component to the improvement in the housing market, because they have the money to buy with the potential for a handsome return. As more families get back on their feet, home purchases will continue to shift to them.

Where Investors are going

As certain areas max out their potential for investors, other markets provide incentive. Many investors are looking to the southeast, such as Atlanta and cities in Florida, for home purchases. Buyers are focusing their attention on areas that were hardest hit by the housing crisis with plenty of options for purchase. They also look at job growth and potential for renting in those areas. Many of their renters are families that went through foreclosure.

Investors focus their attention on homes with three bedrooms and two baths in the $100,000 to $125,000 price range. They expect to be able to charge at least $1,000 a month for rent. However, these properties are getting harder to find as more investors compete with them for the purchase. Where an investor might have been the only one looking at a property, now you have at least two or three bids on each one.

For many of the interested parties, this isn’t a long-term investment. They’re looking for a way to make money for a few years while waiting for price appreciation. A good percentage of these investors are small operations.

California is another area that has seen the market for investors max out. Now, areas like Tampa, Chicago, Las Vegas, and Atlanta will likely see an increase. In Atlanta, investors make up 40 percent of home sales. This will only last a short time though, until the market gets saturated by investors and the prices go up. Returns will drop from 10 to possibly 6 percent, which may be too low for some companies looking at rentals.

As housing prices increase and more homeowners are able to buy again, competition for buying a home will only be tighter. The time for investors to capitalize on a buyer’s market is quickly running out.

Luxury home sales break records in California!

The 2012 California real estate market really saw a healthy recovery after so many deflating years. According to DataQuick, “The number of homes that sold for $5 million or more in California in 2012 set a record. 697 homes sold for more than $5 million; the previous record was 491 in 2011. Other high-end sales totals broke records as well, with the state setting records for homes sold in the $4 million-to-$5 million range (460) and the $3 million-to-$4 million range (1,104).” 

In all of 2012, 26,996 homes sold priced $1 million and higher, which was the highest in that range since 2007. The increase of homes sold was attributed to higher returns on investments and safe-haven investing. Homes priced in the lower ranges could attribute their higher selling numbers to more job security, down payment sizes and low mortgage rates. 

According to the National Association of Realtors® and other economists, home sales are predicted to increase another 9% this year. However, there still may be the issue of fewer homes on the market, which could be one issue which will slow the number of home sales. 

It really is a good time to put your home on the market in the Desert, but it’s getting closer to the end of season. Call me today at 760-567-7282 and we can get your home listed now – there are lots of buyers still coming from the colder regions into our warm and beautiful Desert area.

Real Estate Trends for 2013

After a seven-year downturn, 2013 is expected to be the year of a turnaround, as experts forecast home sales and prices to go up. If you’re wondering whether or not you should buy, sell, or stay put, follow our guide for the biggest real estate trends of the year.

Home Prices to Rise

In April 2012, after receiving the first quarterly sales reports of the year, real estate analytics company Trulia reported that home price depreciation had finally slowed and bottomed out. In fact, throughout 2012, prices actually began to rise in a manner not seen for two years. For 2013, Trulia heralds more good tidings, with prices expected to rise even further than they did in 2012. “Price gains picked up steam in 2012,” said Trulia Chief Economist Jed Kolko. “In 2013, rising prices will encourage more new construction and some homeowners to sell, which will help alleviate the current inventory shortage.”

Foreclosures Falling

In Phoenix, Az., one of the hardest hit cities in the housing crash, foreclosures created a bottleneck for home sales. However, experts say that the foreclosure inventory is attenuating. Keller Williams realtor Kelly Cook says foreclosures are quickly moving through the market. “Foreclosures have almost completely fallen off,” Cook says. “They are less than ten percent of the market right now.” Because of the $25 billion federal settlement last year, banks have more incentive to speed up the foreclosure process. As homes auctioned in foreclosure exit the market, local real estate values will rise, and a smaller inventory will fuel greater demand.

Buyer Turnout

Because mortgage rates are at historically low levels and homes are still affordable, buyers are turning out in droves. However, as inventory shores dry up, buyers will struggle to find the perfect home, and they may have to settle for less than they were hoping. “You're seeing a lot of people having to settle for a house they don’t really want,” Cook says. “That’s because 3 months ago they could have had this, for that, but it’s not available anymore; it’s gone. It's a thing of the past.”

Rent Hikes

For the past three years, rental fees at major apartment complexes have risen by $155 a month, and experts agree that rents are expected to soar even higher in 2013. The National Association of Realtors projects rents to increase by more than 4 percent on average. Reis, Inc., another market researcher, predicts that rents will rise by 4 percent or more annually until 2015. The increase in rent will be driven by growing demand for rental units, as boomerang kids decide to move out of their parents’ basements for more independence.

Home Prices Jump in 3rd Quarter

January 2, 2013 By Mary Williams (Edit)

Once again, all signs point to a housing recovery. Following the pattern of housing construction starts and rising demand, home prices jumped to values not seen in three years. According to the most recent quarterly reports, home prices jumped 3.6 percent from the previous quarter.

“Home prices rose in the third quarter, marking the sixth consecutive month of increasing prices,” said David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices.
One of the factors contributing to the reinvigorated housing market includes improved jobs numbers, with unemployment falling 1.2 percent over the last 24 months. Experts also attribute the nascent housing recovery to record low mortgage rates, which compel more homeowners to refinance, freeing up cash just in time for the holiday shopping frenzy.
Across the country, 17 of 20 cities saw home price gains compared to this time last year. Phoenix led the price jump with home prices growing more than 20 percent annually.

“With six months of consistently rising home prices, it is safe to say that we are now in the midst of a recovery in the housing market,” Blitzer said.

Even though home prices seem to be improving nationally, some cities are left out. Compared to last year, home prices in New York and Chicago declined 1.5 and 2.3 percent, respectively. Home price levels in Atlanta remained the same year-over-year.

With the news of improved housing prices, economists are saying that the housing industry will recover at a sustainable rate, unlike the skyrocketing housing market of the 90s and early 2000s. “All the signs point toward a continued housing recovery,” says Rick Sharga, executive vice president of Carrington Mortgage Holdings in Santa Ana, Calif. “Pending sales are up, existing sales are up, along with housing starts, and home prices are down.”

However, experts warn that the economy is one catastrophic event away from spiraling back into declining housing numbers. One such event specifically mentioned is the looming fiscal cliff crisis. Three factors in the fiscal cliff debate could implode the housing recovery: the expiration of the mortgage tax deduction, the expiration of the mortgage debt relief exemption, and the capital gains tax on families earning more than $250,000.

These new taxes could freeze up extra cash, turning away potential and second-time homebuyers. They could also fuel more foreclosures for families already struggling to make mortgage payments, besides adding unanticipated tax bills come January.

Despite the looming financial storm, economists expect Congress to reach some sort of patchwork agreement to prevent the aforementioned taxes from stalling the housing recovery. All signs point to a continued recovery in 2013.

Particularly for areas hardest hit by the 2008 housing crash, improving home prices indicate a more stable real estate market, similar to that seen in 2003. “Home price gains are becoming more widespread across cities, and some of the largest rebounds have been in areas that were most heavily affected during the initial housing slump,” said Barclays Capital’s Cooper Howes. “We expect this trend to persist into next year as part of a broad-based housing recovery that includes starts, sales, and prices.”