According to Fannie Mae’s most recent monthly survey, real estate has continued to improve and people are noticing. More than half of respondents to the April survey believe home prices will rise within the year. This compares to only 32 percent who expected home prices to increase in April 2012, and Fannie Mae’s chief economist says it indicates that “most Americans believe a housing recovery is truly occurring.” Additionally, 30 percent of respondents said now is a good time to sell, compared to 15 percent last year.

Other recent reports support an improving housing industry:

• Pending home sales increased in March and remain above year-ago levels for the 23rd consecutive month, according to the National Association of Realtors (NAR).

• NAR also reported that existing-home sales in March were 10.3 percent higher than in March 2012.

• Home values increased by the largest year-over-year amount since March 2006, according to the latest data from CoreLogic’s housing report.

• According to NAR, national median home prices rose in the first quarter, showing the best year-over-year results in more than seven years.

• The Mortgage Bankers Association said that mortgage applications for home purchases moved up to their highest level since May 2010.

   

Purchasing a home is a big investment, so buyers want to make sure they get as many of their “wish list” items as possible in the home they wind up purchasing. While every home and every buyer is different, there are some clear-cut winners when it comes to the home features that buyers prefer, according to the National Association of Realtors 2013 Profile of Buyers’ Home Feature Preferences.

The survey of households that had purchased any type of residential real estate during 2010 to 2012 and still owned the property showed that among all 33 home features in the survey, central air conditioning was the most important to the most buyers. Other features that ranked high on many buyers’ lists include a walk-in closet in the master bedroom, an eat-in kitchen, an en-suite master bathroom, and a home that was cable-, satellite TV-, and/or Internet ready.

According to the survey results, buyers are willing to pay more for certain features and rooms. In fact, the features on which buyers placed the highest dollar value were waterfront properties and homes that were less than five years old. When it came to specific rooms that buyers wanted, the two most common rooms they would be willing to spend more for were a laundry room and a den/study/home office/library.

 Valuable information for buyers and sellers.

Home prices are going up. In fact, in the fourth quarter of 2012, the national median home price showed the strongest year-over-year increase in seven years, according to the latest quarterly report by the National Association of Realtors. This is the new market, and everyone involved in a real estate transaction needs to adjust, especially homebuyers.

For buyers, that means making good offers. Increased demand and a lower supply of homes for sale have led to the return of a seller’s market. As such, there are many more bidding wars than during the past few years. As more buyers compete over each listing, it is important that buyers work with their real estate sales associate to come up with an effective offer.

At Weichert, sales associates are fully equipped to research the local area and create a Price Trend Analysis to help buyers come up with the best possible offer price. In certain cases, that may even mean making an offer that is at or sometimes even above asking price. This important research will help buyers better understand why it is critical to make a good offer if they want to win the bidding war in this quick-changing market.

A Weichert Price Trend Analysis can also benefit a seller, both when they are first listing their home and when entertaining purchase offers. By accessing the most recent sales data, associates can better advise their clients on pricing expectations and the most effective strategy for selling their home for the best possible price.

 Valuable information for buyers and sellers.

Owning a home invokes more than a sense of pride and freedom. It is also a long-term investment opportunity. With tax season here, it is a great time to speak to your tax advisor about the tax advantages associated with homeownership.

Some of the items you should plan to discuss include the following tax breaks commonly available to homeowners.

• Mortgage interest deduction: Interest you pay on a mortgage of up to $1 million – or $500,000 if you’re married filing separately – is deductible when you use the loan to buy, build or improve your home.

• Prepaid interest deduction: Points you paid when you took out your mortgage is 100 percent deductible in the year you paid them.

• Property tax deduction: You can deduct the real estate property taxes you pay each year, as well as any property taxes paid at the time you closed the purchase of your house.

• Mortgage insurance premium deduction: If you had to take out private mortgage insurance, the premium on that insurance can be deducted, as long as your income is less than $100,000 (or $50,000 for married filing separately).

Speak to your preferred tax professional for advice and more specifics about how these deductions and credits could lower your tax bill

According to Remodeling magazine’s 2013 “Cost vs. Value Report,” Realtors consider exterior home improvement projects among the most valuable. In fact, a majority of the Top 10 projects in terms of value recouped at resale are exterior replacement projects. This makes sense given the importance of curb appeal in attracting homebuyers.

Based on interviews with real estate professionals throughout the country, the Remodeling report found that the top project is steel entry door replacement, which typically recoups 85.6 percent of costs. Making this project an even better investment is that it is also the least expensive to complete. In addition, three different siding replacement projects and two other door replacements were among the Top 10.

When it came to improvements to a home’s interior, there were two projects ranked in the Top 10. Ranked fifth, a minor kitchen remodel is expected to return 75.4 percent of costs, while adding an attic bedroom and bathroom came in tied for eighth with 72.9 percent of costs recouped.

The right remodeling project, when done well, also has the potential to make for a quicker sale and reduce negotiations with buyers over perceived shortcomings.

Especially in colder climates, a fireplace is a valued feature within a home. Not only does a fireplace provide warmth on a cold winter’s day, but it can also create a warmer environment and add dimension to a room.

For homeowners who would like to install a fireplace, there are many options, ranging from a brick-lined hearth and custom mantel costing thousands of dollars to gel- or electric-fueled fireplaces that are much more affordable.

Here is some useful information for those considering a new fireplace:

• If you are set on a wood-burning fireplace, but are on a budget, choose a ready-made unit, a drywall surround and simple wall-mounted mantel. In an existing home, the actual installation is a major expense due to the renovation work required to build the infrastructure, such as a chimney.

• One alternative is a gas- or propane-burning fireplace that is professionally hooked up to a gas line or connected to a propane tank. This option becomes even more affordable when opting for a vent-free gas fireplace that eliminates the need for a chimney.

• The least expensive option is a gel-fuel fireplace or an electric fireplace that totally eliminate all installation costs. Not only are they portable and ready to use out of the box, but you can easily install electronics or a mantel above these units since there is no flue or chimney.

• Before deciding on an option, check local building codes for possible restrictions on the types of fireplaces that can be installed in your area. It is also important to consider ongoing costs such as fuel, cleaning and service.

As the new year began, the U.S. Senate and House of Representatives were busy passing legislation to avert the so-called “fiscal cliff” with a bill that is quite favorable toward the housing industry. This is great news for those in the market to buy and/or sell a home. An outline of the bill’s real estate provisions from the National Association of Realtors follows.

A number of real estate tax breaks and credits have been extended, most notably:

• Mortgage cancellation relief for homeowners or sellers who have a portion of their mortgage debt forgiven by their lender, typically in a short sale or foreclosure sale for sellers and in a modification for owners, is extended for one year to Jan. 1, 2014. Without the extension, any debt forgiven would be taxable, which, for underwater households, represents a financial burden.

• For filers making below $110,000, the deduction for mortgage insurance premiums is extended through 2013 and made retroactive to cover 2012.

• The 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

In addition, the tax exclusion for gains on the sale of a principal residence remains in effect for sellers, so only home sellers whose income is $450,000 or above and the gain on the sale of their house is above $500,000 would pay taxes on the excess capital gains at the higher rate (with corresponding numbers for individual filers).

The new year provides an opportunity to start fresh and develop goals and resolutions for the coming year. Some people strive toward financial aspirations or a professional achievement, while others might choose to pursue a lifelong goal, such as owning a home.

If 2013 is the year to achieve your dream of homeownership, the following tips may be helpful:

• Talk to the experts. Work with a real estate professional, lender and attorney who are familiar with the area in which you would like to buy a home. A real estate agent can provide you with expert knowledge about the local market, including information about community life and specific neighborhoods, and will be a useful resource throughout the entire process as he or she guides you from the initial search through closing on the purchase of your new home.

• Be smart about financing. You may have savings allotted to cover your downpayment, but don’t forget about other upfront expenses like closing and inspection costs. Look into the many programs available to help you reduce upfront costs. Also, get pre-approved as soon as possible to help you develop a budget, understand what price range you can afford and set realistic expectations.

• Determine your preferences. Speak to your real estate agent and browse online for homes that meet your criteria. Many websites allow you to see multiple photos, view school and neighborhood information and set up e-mail alerts to notify you of new listings. Before you begin looking at homes, be sure you have a clear idea of what your wants and needs are, as well as the price you are willing and able to pay.

‘Tis the season, and one might think the last thing on anyone’s mind is to buy a house during the holidays. In fact, it’s a great time to sell a home, especially this year as consumers look to take advantage of low interest rates. In general, buyers tend to be more serious and have extra time to look at houses together this time of year.

Consider these other benefits of keeping your home listed during the holiday season:

• First and foremost, your house definitely isn’t going to sell if it’s not even listed. By leaving it on the market, you are likely to attract the motivated buyers who tend to house hunt during the holidays.

• Buck convention. If everyone else takes their home off the market — thereby reducing inventory — but you leave yours on, there is a greater chance of a buyer viewing and purchasing your home.

• When tastefully decorated for the holidays, a home is extra inviting. During this time of the year, buyers will be able to easily envision their own family celebrating in the cozy environs of your home.

 Valuable information for buyers and sellers.

Decorating their home for the holiday season is a time-honored tradition for many families, and also provides the opportunity to make lifelong memories. Sellers with their home on the market during the holiday season may feel the need to give up their holiday traditions.

However, quite the opposite is true: Sellers should not forgo decorating their home for the holiday. People expect at least some decorations this time of year, plus they add warmth to a home.

The most important thing for sellers to remember is to decorate in a way that won’t turn off buyers, and the following tips will help them strike a good balance:

• Too many decorations mask a home’s selling points: architectural details, condition, location and price.

• Avoid too many personalized decorations. The goal is for buyers to visualize themselves celebrating the holidays in the home.

• Choose an elegant, neutral palette of fresh greens, silvers, golds and classic whites. Avoid too much red and green.

• Take down decorations within two weeks after the holidays.