World Series 2011- Cardinals v. Rangers

With an unexpected yet welcomed World Series appearance for the 2011 St. Louis Cardinals, let’s take a quick look at how the opposing cities– St. Louis and Dallas– stack up against each other.  If you have been following the national coverage leading up to the Fall Classic, you probably know by now that the two teams compare very closing to one another.  We each have our superstars, Albert Pujols and Josh Hamilton.  We each have our perennial Cy Young award candidates, Chris Carpenter and CJ Wilson.  We each have an NLCS MVP whom has been given the description of “A star has been born,” in David Freese and Nelson Cruz.  The Cardinals have the 11^th highest payroll in Major League Baseball and the Rangers have the 13^th highest payroll.  But the similarities run deeper.

2011’s edition of the World Series pits the nation’s number four largest metropolitan area versus the 18th largest and although the Dallas-Ft. Worth area has more than double the population of the St. Louis metropolitan area- 6.3 million to 2.9 million- the respective real estate markets are more similar than you may think.  

The greater Dallas-Ft. Worth area has an estimated inventory of 21,500 existing homes currently listed with a median sales price of $191,000.  The St. Louis metropolitan area has a median sales price of $165,000 for its currently listed inventory of an estimated 16,500 homes.   The difference in price can be attributed to DFW having fewer homes for sale for its much larger population.  Drawing these two cities closer is their housing inventory based on the amount of months in would take to sell each city’s housing inventory, DFW: 6.3 months, STL: 6.7 months.  A normal or balanced housing market is considered to possess about six months of inventory.

Further defining the stark differences in coastal cities compared to Midwestern cities, STL and DFW have similar surges and declines in economic growth.   As you’ll see in the chart below (courtesy of the Wall Street Journal), STL and DFW nearly mirror each other’s symmetry throughout the course of the last year.  Compare the similar yearly trends of STL and DFW to more volatile, coastal cities and you’ll be happy that you live in the Midwest.

 

So if you’re planning to bundle up and venture to Busch Stadium, or if opt to curl up on the couch and watch the game in stunning HD, enjoy the fact that 2011’s World Series is free of coastal bias and gargantuan payrolls and rich in tradition and good ol’ fashioned, hard-nosed Midwestern baseball.

GO CARDINALS!!!

-NHP-

Continuing the Upward Trend: Home Buying

The New York Times recently published an article about why it’s time to buy a home now, specifically citing that the long-term home ownership picture is looking rosier with each passing month.  The article is rather long and involved so for the benefit of my readers, I will do my best to
recap:

• Mortgage rates remain near 50-year lows, hovering around the mid-four percent range.
• Due to the consistent waves of foreclosures, the glut of homes on the market remains high (3.1 million more than normal), allowing for an inventory plethora and therefore loads of housing competition.
• According to real estate research firm, Moody’s Analytics, foreclosures will begin to decline steadily in 2013, thus drying up much of the housing inventory which will subsequently increase prices.
• Although home prices fell by 7.5% in April over the same period a year earlier, if you exclude the distressed sales, prices are off by just 0.5%, another sign that prices are beginning to recover.
• On a nationwide scale, the demographics of home buying—as measured by the number of new households, changing from renting to owning—increased by almost one million and should average 1.2 million over the next decade.  The 2008 level was 578,000.
• For the last few years, national averages indicate that renting a home has been cheaper than owning a home.  But as the economy mends,
  there are signs that roles are being reversed.  Specifically in that rental prices are on the upswing and home prices continue to fall.
• Although national unemployment remains high, the ill-affect that it has on real estate is beginning to lessen.  For every slow job growth market like Des Moines, you have a much quicker growing and healthier employment market such as Dallas, therefore
  leading to more home sales in those fortunate cities.
• Mortgage financing remains attractive for borrowers with good credit and a solid employment history.  But borrowers with sub-standard credit and inconsistent income will continue to have financing difficulties.  There is speculation that lending will remain tight for the next six months.
• The jury is still out in regards to the overall psychology of the real estate market.  Many people are still resigned to the fact that they will simply not buy until the number of foreclosures drastically dips and unemployment is a more normal 6%.  Others are realizing the opportunity of capitalizing on the ultra-low prices and the extremely attractive interest rates.  To each their own.

What I take from this:  Home buying is, has been (at least for the last 18 months or so) and will be (for the foreseeable future) a positive and potentially lucrative investment.  Smart buyers will employ creditable and proven Realtors to help with the purchase of their home and before long, will enjoy the fruits of homeownership with the knowledge that they are building equity in their home and forging a happy and comfortable
future.

-NHP-

Real Estate Mounting a Comeback

Throughout the last year it seems the near flat-lining economic heartbeat has begun to find a pulse.  Consumer spending is up, confidence in the economy is rising and unemployment is falling.  

Although we’re still battling soaring gas prices, there is plenty with which to be enthusiastic.  Not the least of which is positive press regarding the real estate market.  Yes, you read correctly.  Fortune Magazine, a reputable, national publication has released their April addition exclaiming, “The Return of Real Estate.”

Sure, over the last couple of years we have heard our fair share of false claims regarding all aspects of the economy but if any publication knows a thing or two about real estate, it’s Fortune.  During the housing boom of the mid ‘2000’s, Fortune repeatedly warned of a market collapse, sighting that things were moving too fast.

Now, based on an economic reprieve including decreasing unemployment and a rise (albeit a modest one) in individual savings, coupled along with a substantial lack of new housing inventory, Fortune envisions sunnier days in the not so distant future (read the full article here). 

In a nut shell, Fortune believes that new housing construction is a tell tale sign of a housing market’s condition.  New housing generally indicates the rate at which a city is growing.  As families grow and savings accounts become more padded, a natural next step for much of the population is upgrading to a new home.

The nation as a whole is currently experiencing a major shortage of new housing.  In fact, the number of new homes is at its lowest in more than a decade, and is less than one quarter of the peak figures of mid-2006.  The off market prices will gradually lure home buyers back into the market, snatching up what few new homes remain, thus increasing home prices, which will inevitably necessitate a flurry of new construction at increased prices.

Will you be a buyer that takes advantage of the currently low new home pricing?  Or will you be a buyer that waits a tad too long and forgoes a tremendous deal?

“Forget stocks. Don’t bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.”—Fortune Magazine

-NHP-

Gain Exposure in the Real Estate Market

Let’s suppose for a moment that I’m not a Realtor, but a regular person considering listing my home for sale.  There are essentially two options: List the home by myself (For Sale by Owner, or FSBO, often pronounced and referred to as “Fizzbo”), or list with a licensed real estate agent.  Through FSBO, an opportunity to save money exists by cutting closing cost fees such as commissions.  But usually compromised along the way is prospective buyer exposure given that most FSBO’s lack the marketing and advertising resources available to a Realtor, such as the Multiple Listing Service (MLS). 

In the current gloomy housing market, which on average requires 15 showings per home to generate one contract, the necessity to attract the maximum amount of buyers is paramount and arguably more important than saving commission fees. 

Now that I have been wooed away from selling my home FSBO, it’s time to hire a qualified Realtor.  First off, all affiliated Realtors have access to the MLS; perhaps the most important means of advertising, offering all of your home’s pertinent information on a platform where all Realtors can see, match and share with their clients.

Being a technology enthusiast, I’d be leery of a Realtor who still solely relies on print advertising, open houses, flyer boxes attached to yard signs, direct mailers and casual word of mouth.  These are usually the same people who believe that Facebook is reserved only for time-wasting college-age slackers, and who also think a Tweet refers to the communication between birds at a bird feeder. 

Instead, I would demand to see proof of how a Realtor plans to effectively advertise and market my property on the World Wide Web.  If he or she is not prominently using at least five websites with which to market, then…NEXT!  Conversely, if a Realtor has access to a mobile phone app allowing him the ability to share my home’s information with a simple tap of his smart phone, then I’m intrigued because clearly that agent has his finger on the pulse of the vehicle that is driving consumers.

When compared to print advertising, Internet and social media marketing offers many more possibilities with the capability of pinpointing a specific target audience.  The amount of exposure is proliferated when a prospective buyer has the ability to view and share pictures of my home on Realtor.com, read a blog post about its exquisite craftsmanship and the countless upgrades, or click a YouTube link from a Twitter account connecting them with a virtual video open house.

The three major points as it relates to selling your home- Location, Price, Exposure.  Price your house right and shine the proverbial spotlight at you home by having a strong Internet presence.  Choose your Realtor wisely!

-NHP-

Winter Curb Appeal

It’s been three years since the housing bubble burst and along with the collapse came an increased necessity to differentiate one’s listed home from another.  If you are planning to sell your home, by now I’m sure you have heard that the best way to make a lasting first impression is through curb appeal—the conscious and sub-conscious feelings and impressions of a home when initially viewed from the street or curb. 

With a little maintenance, the summer season is the easiest time of year to keep grass alive and vibrant, and flowers bloomed and colorful.  But when the long, warm summer months turn into cool, long-shadowed autumn and winter days, home owners often ask me about simple, practical and efficient ways of capturing winter allure from prospective buyers.    

Adding life, or at least color to the landscape is priority number one. Start by maximizing the wattage in your exterior lights.  With dusk setting in by 5:00 pm, the majority of your showings will occur after nightfall. 

If you know for sure that you will be listing your home for sale during the fall and winter months, then plan accordingly.  Replace your annual plants with perennials that retain year round color such as evergreens and tall grasses.  Slightly more involved but an equally good professional tip is to plant cabbage family plants in your garden which will add a lively purple hue to the scene.

Traditional spring and summer items such as bird baths and planters can also be utilized.  Place a colorful ball or bauble in an empty bird bath and fill planters with winter greenery such as evergreens, twigs or reeds.   The front door is a natural focal point and should be adorned with a wreath.  The festive winter planter can then be situated on the front porch or near the front door, working in an aesthetically pleasing combination with the wreath. 

If you take great pride in the spring and summer appearance of the house, stage pictures of the home from those seasons in either a traditional picture frame or a digital frame as buyers walk through the house.

Instead of covering or storing patio and deck furniture, assemble the tables and chairs as if it were summer.  Adding a small fire pit loaded with firewood to the outside furnishings will give the appearance that a patio or deck is a multi-season addition to the home. 

Most importantly, if it snows, be sure to salt and shovel the driveway, all sidewalks, the patio and deck, and other areas that could be hazardous during inclimate conditions.

Last but not least, if your home is listed during the holiday’s, minimize your Christmas decorations.  Don’t leave the Christmas tree, lights and stockings up passed New Year’s Day.  Taking down Christmas decorations is similar to removing personal pictures; buyers want to envision themselves living in your home, not see how another family lives.

If you have any questions about selling or buying a home, please feel free to contact me at anytime; Nathan Pfitzer, 314-415-2158.

-NHP-

First-Time Home Buyer Benefits Still Available

Definition of a First-Time Home Buyer:  “An individual who has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).” -HUD

Do you know someone who missed out on the $8,000 that Uncle Sam handed out for free to first-time home buyers earlier in the year?  Are you one of those people?  If so, don’t worry because there are still phenomenal incentives for you.

The April expiration of the enormously popular first-time home buyer tax credit directly coincides with the recent slow-down of home purchases by first-time home buyers.  Because of this, Missouri Housing Development Commission, more commonly referred to as MHDC, has lowered its interest rate offered under its first-time home buyer program. 

The reduced rate, which sets a new record for the lowest MHDC has ever offered, is an eye-popping 3.5 percent.  It is now available to qualified applicants who do not need cash assistance; which refers to borrowers in need of money for a down payment or closing costs.  A more moderate but still tremendously low interest rate of 4.0 percent is available to those who need cash assistance.  An additional loan is required for those seeking cash assistance however; the amount is forgivable after five years of living in the home.  Both scenarios are based upon 30-year fixed rate mortgages.

Like any special program, specific guidelines are implemented.  MHDC does require sufficient credit scores and they do impose income limits for the program.

MHDC is a subsidiary branch of the state of Missouri with goals to help revive areas of economic distress (targeted areas) by providing home buyer programs to people who otherwise might not have been approved for a loan.  Non-target area homes are also available through the program though MHDC does require applicants to comply with a slightly revised set of guidelines.

Please pass this information along to any first-time home buyers as this could mean the difference in thousands of dollars throughout the life of a loan.

For more information, click any of the above links or call me, Nathan Pfitzer, at 314-415-2158.

-NHP-

Badgers vs. Buckeyes

The college football game of the week for Saturday, October 16th, 2010 was without a doubt, the Big 10 clash of number one ranked Ohio State and 18th ranked Wisconsin.  ESPN anointed the matchup as the premier game of the college football week with the ever-popular College GameDay pre-game show broadcasted from Madison.  The primetime, 6pm scheduled kickoff provided plenty of hype, suspense and tailgating and we were fortunate to be a part of the 82,000 plus fans on hand at Camp Randall Stadium in Mad-Town. 

Being devout fans of  the Wisconsin Badgers and the city of Madison (see my blog:  If I could Live in Another US City…), arrangements were made and the tickets were bought in hopes of witnessing an upset of mass proportions not seen in Badger football since 1981.  

The day evolved into a beautiful, sun-drenched, autumn afternoon with the capital building and Camp Randall acting as perfect backdrops for tens of thousands of red-clad Badger faithful parading around famous State Street and tailgating many of the pubs on nearby Regent St.  

What unfolded on the crisp October evening was a spectacle of sheer pandemonium, jubilation among Badger fans young and old, and a storm-the-field celebration consisting of players, students, alums, Wisconsinites and four St. Louisans.

Final score:  Wisconsin 31 – Ohio State 18.  In case you missed it, have a look at the highlights, then click the YouTube link to view my video of the post-game celebration. 

Next up:  College GameDay stops in Columbia, MO on Saturday, October 23rd for a battle of the unbeatens, #1 Oklahoma vs. #11 Mizzou.  Perhaps I’ll have more storming-the-field video to share!  M-I-Z!!!

-NHP-

Yeah Mon, Irie in Jamaica

Upon deciding on real estate as a career, a public speaker at a seminar expressed the importance of maintaining one’s sanity with taking a minimum of four vacations per year.  And although four vacations for most of us is not possible (unless we are European in which the average employee starting out is allotted five to six weeks of vacation time), I strongly urge people to temporarily sever all ties with the job in which they work and the city in which they live and relax Caribbean-style at an all-inclusive resort where the days tick away not by minutes and hours on a clock but instead by the intervals of waves crashing on the beach, volleyball games played and the number of times the pool waitress refills your Caribbean cocktail.

 After four and half years of splendid matrimony highlighted with two Caribbean and two Mexican vacations, I must say that Jamaica takes the cake.  My wife and I recently returned from a six night stay in Montego Bay, Jamaica and I will emphatically admit that we did not want to come home, nor can we wait for a return visit to the island.  In the past four years we have been fortunate to travel to the Bahamas (our honeymoon), Cabo San Lucas, Puerto Vallarta and Jamaica.  And although we have encountered better weather (it rained for a couple of afternoon hours every day but one) we enjoyed ourselves more than any other vacation south of the border.  Everything in Jamaica is indeed Irie–a Jamaican noun for good, excellent, great and good quality.

 There is not one deciding factor as to why we feel that Jamaica is best, but instead a collection of memories not fully realized until returning home.  From the point that we landed in Montego Bay–when the plane appears to dip its landing gear in the bright blue sea because of the close proximity of the runway to the water, to our final experiences of the island– our friendly and talkative shuttle driver instructing us that we must return but try another city next time such as Ocho Rios or Negril and experience the other wonders of Jamaica, and everything in between—being greeted with “Welcome home, Mon” at the resort by a cheerful local– this gem of the Greater Antilles trumps all.    

 Perhaps the best part was the lodging; a couples/adults only all-inclusive resort at less than 40 percent capacity and esthetically pleasing to the mind body and soul, allowing the Mrs. and I to forget about our day-to-day operations and enjoy one another’s company in a relaxing and tranquil setting.   

 Or it may have been the countless number of friends that we made with people from California to New York to England and the immeasurable amount of laughs that we shared.  This includes our other “friends;” the infectiously friendly Jamaican people who seemingly end every sentence with “No problem mon” or “No worries mon, you’re in Jamaica.”

 Or might it have been the leisurely catamaran cruise and snorkeling excursion on a sun kissed afternoon followed by a trip to Jimmy Buffett’s Margaritaville? 

 Or maybe it was everything that we knew we would receive upon booking the vacation; enjoying a week in the tropics, taking in the sights, sounds and smells of the ocean, being copiously treated like royalty, indulging in the tasty and delectable cuisine, and partaking in any number of beverages as common as a Red Stripe and Pina Colada to as original as the Bob Marley and a Tropical Breeze.

 Although four, week long vacations per year is hardly attainable and at this point in our lives, bordering on financial irresponsibility, we all can certainly exploit our opportunities and make the most of our days in paradise.

 -NHP-

If I Could Live In Another US City…

…It would be Madison, WI.  Surprised?  The answer by many would likely be San Francisco, Miami, San Diego, Seattle, New York, Honolulu, Key West.  But not me; I choose to stick with my Midwestern roots with the added guarantee of enjoying the four seasons.  I have long thought this way but after a recent trip to Mad-Town to visit my wonderful Grandma Fern and other friends, this notion has been firmly cemented in my mind. 

There is an endless list of features in which to fall in love, beginning with the fact that the city is not too big nor is it too small.  With a  population of just over a half million, Madison is roughly one sixth the size of metro St. Louis and is less than a six hour drive from downtown STL. 

For an avid outdoorsman the city has plenty to offer with miles of walking/biking/cross-country skiing paths, fishing, ice-fishing, sail-boating and kayaking in the multitude of interconnecting glacial formed lakes, and numerous hiking trails within a short drive of the city such as Devil’s Lake, http://www.devilslakewisconsin.com/. 

Although lacking major professional sports teams, the fanfare and loyalty to the U of W Badgers is unrivaled by any fan base throughout the nation- professional or collegiate (A helpful tip, try soaking in the pre-game atmosphere of a Badger football game by strolling around the campus and Camp Randall Stadium and then either watch the game in person or at any pub in around State Street.  You will NOT be disappointed), http://www.uwbadgers.com/.

With the average temperatures in the low 80′s, the summer is a perfect time to visit.  Situated perfectly on an isthmus between Lakes Mendota and Monona, downtown Madison (specifically capital square) is busy with street shoppers every Saturday morning during a tradition known as Farmer’s Market in search of quality, local grown, organic produce and other mouth watering succulents and delicatessens.  Every trip to the great state of Wisconsin and specifically to Farmer’s Market, I prefer to indulge myself with fresh, squeaky cheese curds; quarter-sized balls or curds if you will, of cheese.  There is something about cheese curds that doesn’t quite compare to traditional slices of cheese. http://www.visitmadison.com/visitors/.

Only a few blocks away from the Capital is State Street, a pedestrian style thoroughfare acclaimed for shops, diners and pubs with an opened, liberal minded flair.  The summer evenings can be spent just north of downtown taking in an ever-popular Madison Mallards, collegiate, wood-bat baseball game.  At the Duck Pond in Warner Park fans enjoy good old fashion baseball while watching the non for profit college talent leave it all on the field yearning for a scout’s recognition and a shot at the pros.  Known for being a family experience, the Mallards offer big league quality promotional giveaways, pre and post-game events such as firework displays, band performances and men being shot from giant cannons, and plenty of celebrity sightings, both sports figures and non-sports figures alike, http://www.mallardsbaseball.com/.  

A can’t miss family vacation idea is a couple night stay in Madison and then on to the famed Wisconsin Dells,–Wisconsin’s version of Branson.  A quick 45-minute jaunt north on I-90/94 from Madison, The Dells offers a plethora of family activities including amusement and water parks (i.e., Noah’s Ark, the nation’s largest water park),  shops, outlet malls, shows, restaurants, boat rides on the scenic Wisconsin River and Lake Delton, golf, go-carts and the list goes on.  My personal favorite while at the Dells:  shop at the Tanger Outlet Center, enjoy a pint of New Glarus Spotted Cow and some quality German fare at the Essen Haus, and explore the gorgeous panorama while riding The Ducks on Lake Delton,  http://www.dells.com/.

Take my advice, finish summer 2010 with a bang and take your family on a cost efficient, relaxing and spectacular trip to Madison, WI and beyond. 

-NHP-

So Long Flash-Drives

We’ve all been down the ever-expanding technological path where once we begin growing accustomed to a certain ideology, five newer, easier and more innovative forms of technology appear.  We’ve seen the progression of communication from landline telephones to pagers to car phones to cell phones now to digital Internet communication such as Skype.  The same is true with how we save our personal computer files.  In five years time we’ve used everything from floppy disks, zip disks and the smaller, much more compact form of memory, flash drives. 

Allow me to introduce the newest, easiest and most efficient way to save your personal and business files–Dropbox.com.  Ever since taking a mandatory continuing education class for my real estate business, the style with which I work on computers has changed substantially.  Dropbox.com is an online, secure data-saving website that can be accessed from any computer worldwide.  The long and short is this:  If you work from your home computer, a laptop and an office computer, and you have downloaded Dropbox to each computer, instead of the need to insert your flash drive to save files, you simply save your files to the Dropbox folder.  The cool part is once you have saved your progress, the saved file will also be copied into your other Dropbox folders on your other computers. 

Case in point:  Being a Realtor, I’m on the move constantly and therefore I use up to five different computers to upload contracts, work on spreadsheets and develop my marketing and advertising.  With Dropbox I simply save my progress to the Dropbox folder on the computer on which I’m working.  The saved data will simultaneously be saved to the Dropbox folders on my other computers as well.

And it doesn’t stop there.  Imagine being on vacation in South Africa rooting on the USA in the World Cup when you realize that your itinerary is saved to your Dropbox account.  You kindly ask the hotel concierge if you may use his computer to access your online Dropbox account because after all, your files are accessible from any computer worldwide.  It sure beats the need for carrying around a small, fragile flash drive.

The best news of all is your first 2GB of memory is free.  Give it a shot.  Go to www.dropbox.com, watch the video and discover yet another way to simplify your life.

-NHP-