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The Rilliet Report January 2014

THE   BUZZ

Happy New Year 

Real estate continues to be a good place to invest. Lawrence Yun, the National
Association of Realtor's Chief Economist, recently stated, "Although the
final months of 2013 are finishing on a soft note, the year as a whole ended
with the best sales total in seven years."

Total existing-home sales are expected to total 5.1 million for 2013. That is a
gain of almost 10% over 2012. The level is expected to rise to 5.3 million in
total sales by 2015. The national median existing home price for 2013 was
$197,300 and is projected to rise by 5 to 5.5% for 2014.

As we approach the busy buying months of the spring season, we are entering a seller's market. Inventory is down, which drives prices up. I will be watching mortgage rates in combination with strong price gains for 2014. These factors could slow the market, but sales should remain stable.

May 2014 bring much happiness and prosperity to you and your loved ones.

 

JUST  ASK

Q: What is one of the most important pieces of furniture in your home?

A: According to Feng Shui experts, your bed is the piece of furniture that has
the most intimate connection to your personal energy. These three things make a
great bed:

1Good headboard: the best headboards are the ones that are solid and
made from wood, or the upholstered ones as they have a good backing but
are gentle as well. Your head needs good backing and support.

  1. Good mattress: there is a wide variety of mattresses on the market. Choose
    wisely and invest in the one that will bring you the best sleep and
    relaxation. The better you sleep at night, the better your health during
    the day. I like Tempur-pedic mattresses and found a number of good brands
    on Google.
  2. Good height: to allow for a balanced feng shui energy flow under
    the bed, it's best to have your bed at a reasonable height above the floor
    level. Generally, the beds that have built-in drawers underneath for
    storage are considered bad feng shui beds.

If this sounds a bit strange, just know that an inviting clutter-free bedroom with
soft colors and a nice bed are high on every buyer's list

MY TOWN

One trend for 2014 is the entry of more young buyers (ages 35 and younger).
Recently released Census data shows that the younger Americans purchase history
has improved by .5% over last year and continues to be heading up.

Men and women, especially women, both prefer urban locations. Good schools and
proximity to work are must haves for both sexes. Being close to restaurants and
entertainment also rank high on the list of preferences, while proximity to
public transportation and affordable home prices is lower on the list. Most
young buyers think of their purchase as at least a five year investment.

Among young Americans, home ownership is gaining steam. That is good news,
since for the past four to five years they rented and watched the market.

 

FYI

The ability to qualify for a good mortgage will have a significant effect on
the real estate market for 2014. Mortgage reform kicked in on January 10th of
this new year.

The Consumer Financial Protection Bureau wrote the new rules. Their goal was to
protect homeowners from risky mortgages, according to CNBC's Money Talk News. The downside is that these rules make it harder for some people to qualify for a home loan.

The Ability to Repay Rule requires lenders to evaluate the financial fitness of
the buyer. The ability to repay is based on the buyer's following variables:
assets, employment, monthly payment, other debts, child support or alimony, and
credit history. The buyer's total debts should be less than 43% per these new
guidelines.

The ability to put a down payment of 20%+ will help ensure a loan. Statistics
show that buyers with very low down payments have a much higher chance of
walking from a loan.

Mortgages insured by the federal government have looser requirements.

Understanding your mortgage options is vital to buying a home today. If you
have questions, I can suggest some professionals.

Sheldon Rilliet

Realtor SF and Peninsula

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