THE BUZZ

Hi [[autoname]],

Existing home prices are being driven up by pent-up demand and favorable affordability conditions. For the seventh straight month, the median price has shown double-digit, year-over-year increases according to the National Association of Realtors®. While we are seeing fewer offers than earlier this year, multiple offers on competitively priced homes are still very common.

It is important to note, however, that mortgage rates are rising. According to Freddie Mac, 30-year conventional fixed-rate mortgage rose to 4.07% in June, up from 3.54% in May. According to NAR’s chief economist, Lawrence Yun, these higher rates are predicted to bite into high-cost regions such as Hawaii, New York City metro, Southern California and of course in our very own Bay Area market.

Yun also reports that first-time homebuyers are accounting for only 29 % of purchases. He feels that the frictions of tight credit and limited inventory in the lower price ranges are holding buyers back.

Regarding inventory, rising values have improved the position of homeowners who may have been underwater on their mortgage. Some are selling now, though even more are waiting to see if their home may be worth more in the months to come.

There is no consensus as to whether home prices will continue to rise. I believe we need to analyze the stats on every neighborhood individually in order to advise you wisely. I am here to serve your needs.

Q: Why do a final walk-through of a property?

A: The final walk-through is the time for the buyers to inspect the home, usually within five days before closing. It is not a contingency but is important and should not be dismissed.

The seller needs to make sure that the home is still in the same condition as was represented on the disclosures and that any agreed upon repairs have been completed. Even if a buyer has bought a home “as-is”, the seller is still responsible for maintaining the home until close of escrow.

For a walk-through, a list of items to check includes the following:

• Test all appliances. This includes making sure the refrigerator fan is still working and the food will stay cold.
• Run disposal and exhaust fans.
• Run water and look under sinks for leaks.
• Turn on and off every light.
• Flush toilets.
• Open and close all doors including garage doors.
• Test heating and air conditioning (wait to feel warm or cold air).
• All debris should be removed from home and yard should be maintained.

If there are issues, the buyer’s agent will negotiate with the seller’s agent to hold money from the seller’s proceeds in order to have work completed. Usually, everything goes smoothly, but know that I am here to protect your interests.

August is the time for vacations. This summer, try broadening your horizons by checking out a new museum- whether you’re staying local on your own, or traveling out of state with young children.

Interested in botany or boots? Airplanes or Asian history? Photography or paleontology? There’s something for everyone at museums both big and small, all throughout the United States.

Check out Museum Link’s online directory (http://www.museumlink.com/ ) to get started. Choose your state, and skim through the list. Happy adventuring!

Recently, urban home mini-communities are popping up in Los Angeles and other cities. These so-called small-lot homes are a response to the growing desire for walkable in-town living. Homes are clustered, like town homes, with no connecting walls. Usually they have a small patio or roof deck but no individual backyard.

Buyers see the value of being close to shops, cafes and work. As a co-founder of the L.A. architecture firm Modative (www.modative.com ) says, “It’s sort of the iPhone or Prius of homes. These clusters of tiny homes range from 1,000 to 2,000 square feet, allow for a spacious living room and kitchen with an open floor plan, and usually are two to three stories high.”

Builders are targeting a younger generation of homebuyers that want to live more efficiently, but some empty nesters share the desire to scale down and move into town. Residents of these small-lot homes own a plot of land, which makes financing easier and homeowners’ fees much less than fees in condo developments. Watch for these mini-communities to grow in popularity.