KTS Message

Dear Friends,

It's the start of a New Year. This is a time when we can wipe the slate clean, creating room for a fresh and positive start. It provides us an opportunity to fine tune our marketing plans and strengthen our relationships. 

Thank you for providing us with the opportunity to continue to serve you in the coming year.  I wish you a healthy and prosperous 2006.

Sincerely,

Jason Kane

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Last Months Trivia:

What is the most-visited Historic Home in the United States?

Answer: Graceland

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Housing Market to "Normalize" for 2006

In its forecast for 2006, the National Association of Realtors trade group states that the "key word for the housing market is balance, 
with a return to a more normal rate of price growth."

David Lereah, NAR's chief economist, said in a statement that "cooling sales are necessary for the long-term health of this vital sector," and a "modest slowdown in home sales, coupled with improvements in housing inventory, means the market is in the process of normalization. That will help to bring balance between home buyers and sellers, yet sales will remain historically strong."

After setting a fifth consecutive annual record, projected at 7.1 million units for 2005, existing-home sales are forecast to ease by 4.4 percent to 6.79 million this year, which would be the second highest on record, the association reported.

New-home sales, which should be a record 1.29 million for 2005, are expected to decline 6 percent to 1.21 million in 2006 - that also would be the second best year in history. The association expects total housing starts for 2005 to reach 2.07 million units - the highest since setting a record 1972 - with a 6.6 percent slowing to 1.94 million this year.

"A lot of demand has been met over the last five years, and a modest rise in mortgage interest rates is causing some market cooling. Along with regulatory tightening on nontraditional mortgages, there will be fewer investors in the market this year," Lereah said.

The 30-year fixed-rate mortgage is likely to trend up gradually to 6.7 percent during the second half of the year. "This will preserve generally favorable affordability conditions and keep the housing market at a more sustainable sales pace," he stated.

NAR President Thomas M. Stevens, senior vice president of NRT Inc., said in a statement that price appreciation should be at more normal levels across most of the country this year. "Buyers are no longer competing for a tight supply. That means home prices generally will rise much closer to long-term norms, which is the overall rate of inflation plus one or two percentage points. Lower price appreciation will keep the door open to first-time buyers while preserving the investment advantages of home ownership for sellers.

The national median existing-home price for all housing types, projected to jump 12.9 percent to $209,100 for 2005, is forecast to rise 5.1 percent to $219,700 this year. The median new-home price, which should be up 4.6 percent to $231,300 for 2005, is expected to increase 6 percent this year to $245,200.

Inflation as measured by the Consumer Price Index is projected to rise 3.4 percent for 2005 and 3 percent in 2006. Inflation-adjusted disposable personal income is forecast to increase 1.3 percent for 2005 and 4.6 percent this year, the association reported.

Growth in the U.S. gross domestic product is likely to be 3.6 percent for 2005, with GDP seen at 4 percent this year. The unemployment rate is expected to drop to 4.8 percent by the end of the year.

Source: The National Association of Realtors

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Foreclosures Peak in December

According to Foreclosure.com: The nationwide inventory of foreclosed U.S. residential properties jumped 12.7% in December, the biggest surge since March 2005. The inventory totaled 91,905 properties. Meanwhile, there were 24,124 new foreclosed residential properties listed in December, an increase of 7.7%, the company reported. 

"The relative stability of U.S. foreclosure inventory ended in December," said Brad Geisen, president and chief executive officer of Foreclosure.com. "With lending institutions closing their books at the end of the year, it is somewhat common for the foreclosure inventory to rise. It is premature to predict that December's inventory indicates a foreclosure crisis in the U.S. However, this rise in inventory, which is higher than in recent years, should be closely monitored as 2006 begins."

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Visuals That Sell

Here's a great article from consultant Sandy Dixon:

Most buyers are visual and have difficulty envisioning how a home could look with their furnishings in it. Many will cross a house off their list simply because of terrible photos in ads, MLS listings and on the virtual tour footage. They may even think that the home is in poor condition and not worth the asking price.

For years, builders have known the value of setting up model homes in their developments. They elicit a positive and emotional reaction from prospective buyers. Similarly, creative window and store displays (visual merchandising) generate interest and increased sales for retailers.

The same applies to property photos when marketing real estate…”You are never given a second chance to make a first impression.” The first glimpse they have of a property will be a lasting one—whether they are viewing it firsthand or from looking at a photo or virtual tour.

Exactly what turns buyers off when viewing a property is as varied as the individuals themselves. It can be clutter, cleanliness, lack of storage or size of rooms to the color of paint or wallpaper in a room. A real estate agent’s mission is to eliminate as many reasons for these excuses as possible—upfront! The goal is to elicit positive feedback and ultimately result in a sale. This begins with the visuals that you produce of the property.

Paying attention to details when taking photos of the property is an essential ingredient to creating a good, first impression with potential buyers. Reasons for poor quality photographs are lighting conditions (too much or too little sun), photo equipment that either isn’t used properly or is outdated, or a lot that is not conducive to getting a good shot of the property.

A few simple guidelines can help showcase your listings and make them stand out from others in the same price range:

Techniques for Photo Shoots

• Open drapes, blinds and doors for maximum light. Make sure light is behind you when you shoot. Use a flash.
• Use a wide-angle lens, if possible.
• Shoot diagonally across the room from each corner. If applicable, also shoot looking down from an upper level, as more of the room will be visible.
• Take photos of individual aspects of the home that might not be clearly visible in the room shots. For instance, a room’s focal point, bookshelves, alcoves and nooks, built-ins, views, etc.
• Do not have people in the pictures.
• If using a digital camera, double-check your shots for correct positioning and brightness.
• Look at the home through buyers’ eyes and set up your shots accordingly, showcasing the positive aspects of the home and the areas where time is spent the most.
• For exterior shots, make sure that the yard is clutter free and manicured. Walk around the perimeter of the house to determine the most appealing angle and interesting focal point. Include trees, colorful landscaping, water features, views, etc.
• Eliminating clutter or removing one or two pieces of furniture from a room creates a more spacious and airy feeling.
• Have the home staged prior to taking photos, filming the virtual tour, or holding open houses. The home will look more spacious and inviting, which the photos will capture.

A picture is worth a thousand words. Using visuals (photographs and video footage) to create visibility for properties and prompt showings is a powerful marketing tool. Take a close look at the photos of your current listings…What impression are they leaving on potential buyers? Make them lasting, not lacking.

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