Although regionally, home prices vary, as a nation, there is little change between this year and last year, with CoreLogic implying price stabilization is the current state of the market.

Home prices stabilizing

With a 0.6 percent drop in home prices between March 2011 and March 2012 and a 0.6 percent increase in prices from February, CoreLogic’s Home Price Index (HPI) shows that national home prices not only saw the first month-over-month increase since July 2011, the movement up and down is slight, indicating the market has found its bottom. Excluding distressed sales, month-over-month prices increased for the third month in a row. The CoreLogic HPI also shows that year-over-year prices, excluding distressed sales, rose by 0.9 percent in March 2012 compared to March 2011.

“This spring the housing market is responding to an improving balance between real estate supply and demand which is causing stabilization in house prices,” said Dr. Mark Fleming, chief economist for CoreLogic. “Although this has been the case in each of the last two years, the difference this year is that stabilization is occurring without the support of tax credits and in spite of a declining share of REO sales.”

“While housing prices remain flat nationally, in many markets tighter inventories are beginning to lift home prices,” said Anand Nallathambi, president and chief executive officer of CoreLogic. “This is true in Phoenix, New York and Washington, for example, which all reflect higher home price values than a year ago. A continuation of this trend will be good for our industry across U.S. markets.”

Regional performances vary

As always, all real estate is local and some states continue to perform extremely well while others continue to decline. Including distressed sales, the states with the highest appreciation were Wyoming (+5.9 percent), West Virginia (+5.3 percent), Arizona (+5.1 percent), North Dakota (+4.7 percent) and Florida (+4.5 percent) and excluding distressed sales, the top performers for March were Idaho (+5.4 percent), North Dakota (+5.1 percent), South Carolina (+4.7 percent), Montana (+3.5 percent) and Kansas (+3.4 percent).

Not everyone had such stellar results, however, as CoreLogic reports that including distressed sales, the states with the greatest depreciation were Delaware (-10.6 percent), Illinois (-8.3 percent), Alabama (-8.0 percent), Georgia (-7.3 percent) and Nevada (-5.8 percent), and excluding distressed sales, the poorest performers were Delaware (-7.6 percent), Alabama (-4.1 percent), Nevada (-3.9 percent), Vermont (-3.9 percent) and Rhode Island (-2.9 percent).

Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to March 2012) was -33.7 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -24.5 percent. The five states with the largest peak-to-current declines including distressed transactions are Nevada (-59.9 percent), Arizona (-48.6 percent), Florida (-48.1 percent), Michigan (-45.1 percent) and California (-42.7 percent). Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 57 are showing year-over-year declines in March, eight fewer than in February.

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Dream Come True

Chills ran up my arms while I watched the crew roll my beautiful old home, creaking and groaning, off its crumbling stacked-sandstone foundation and onto rails set up in the side yard. I knew we had to pour a concrete foundation to save the 1901 house, but that didn’t mean I had to like it. A few nerve-racking hours later, it was safe and sound on its temporary resting place. What a relief! My husband, Dennis, who has decades of home-building experience, had planned everything out to the inch, so I should have known he and the crew would get it right, but it was a scary ordeal. After all, this wonderful old house was my dream come true, and I really didn’t like seeing it perched perilously off the ground.

See, for years I routed my morning walks through the historic district of our mountain town of Bozeman, Montana, imagining what the interiors of the 19th- and 20th-century homes must be like. While visions of my very own old bungalow danced in my head, I never really believed I could talk Dennis into the idea of "rectifying someone else’s mistakes," as he puts it. But after 23 moves during his 29-year career, he promised the next move would be my choice. I jumped at the offer, dragging him off to tour several old houses on the market.

Shown: The renovated Dutch Colonial Revival’s red shutters pop against new cedar shingles. Porch railings and a portico entry mimic the home’s original woodwork.

Read the rest here at ThisOldHouse.com

By 2050, the population of Americans 65 and older will more than double and is expected to grow at a faster rate than any other age group, according to U.S. Census data. By that time, one in five Americans will be over the age of 65, and a new report says that growing population will likely face increasing difficulty in finding suitable housing to meet their needs.

The report from the Center for Housing Policy (“Housing an Aging Population — Are We Prepared?”) warns a severe housing cost burden is looming for the country as the older adult population soars.

Older adults are more likely than younger adults to spend more than half their income on housing, the study found. Home owners who are 65 and older are more likely than younger households to have their mortgages paid off, but other housing-related costs continue to bite into their more limited incomes. Property taxes, home maintenance, and utility costs continue to be a burden to even mortgage-free home owners, the study says.

“As the older population grows, meeting the housing needs of older adults is certain to become a significant challenge across the nation,” says Rodney Harrell, a policy adviser at AARP’s Public Policy Institute. “States and communities need to effectively respond by adopting policies that ensure adequate, affordable housing for people of all ages.”

The report calls for a variety of housing to meet the needs of older adults, including a growth in assisted-living residences, continuing care retirement communities, and congregate housing. The authors also urge for the availability of housing grants and loans to assist with modifying a current home so older adults can age-in-place as well as property tax abatement or housing voucher programs to help alleviate housing costs.

Source: “Growing Ranks of Older Adults Face Housing Crunch,” RISMedia (April 8, 2012)

Shift happens! We are watching it live and in action! Last year distressed properties made up 25% of active listings, this year it is 17%. Pending sales were 51% distressed homes and this year they comprise only 18% of pended sales .

Fueling the market is better job news, low interest rates, improved consumer confidence, increasing rental rates, spring weather, some positive press and 4 years of pent up demand.

Units pending in NWMLS were second to 2006 numbers. Multiple offers abound! This demand is stabilizing prices in many areas and some neighborhoods are experiencing increasing prices. Some homes that went off market last year and relisted recently have sold quickly.

Holding the market inventory back are homeowners with little or no equity. People who would have been considering a move based on past turnover rates are staying put, and those who do not know the market is turning. Appraisals may be tricky with prices creeping up quickly in areas of little or no inventory.

Although median prices still show an overall decline, in some Several Eastside areas increases were strong, 9 to over 15%. City center areas experienced significant change, 11-31% increases in median price over last year!

Some homeowners may not be aware of the market improvements and the fact that according to Lennox Scott “Close to job centers, 45% of new listings are selling within a single month.”

Pending sales would likely be higher if more inventory was available to anxious and motivated buyers.

Help spread the news – I’m here to help.

If you are either buying or selling a home in today’s market, you need a real estate expert. However, we must realize what the term ‘expert’ actually means. An expert in any area cannot give perfect advice as no one can predict the future. But they can give excellent advice based on their insight into their field.

If you go to an attorney with a legal challenge, he/she will look over your case and give you your options. They realize they cannot guarantee the outcome of any of the options. Still, they give the best advice possible and allow you to decide the option with which you feel most comfortable. They then will put together a strategy which hopefully will bring about the most favorable conclusion.

If you go to a doctor with a serious ailment, he/she will give you your options and work with you to develop the best treatment program. They cannot guarantee any program’s success. They will, however, monitor your progress and adjust your treatments or medications. They will stand next to you until the best result is achieved.

Real estate is no different. A true real estate professional will understand your options and simply and effectively explain them to you and your family. Once you chose an option, they will strategize a plan to help you accomplish your goals. They will standby you as the process evolves and will help you make the necessary adjustments if necessary.

They cannot see the future any better than doctors or attorneys and thus their advice will never be perfect. However, just like those other professionals, an expert agent will give you excellent advice that will bring about the best possible outcome.

By the KCM crew