Greater Lansing Area Experts: January Housing Trends

View the Housing Trends JANUARY 2012 Newsletter

The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau, Realtor.org reports and other sources. 

Housing Trends eNewsletter is filled with local and national real estate sales and price activity provided by MLSs and the National Association of Realtors, U.S. Census Bureau key market indicators, consumer videos, blogs, real estate glossary, mortgage rates and calculators, consumer articles, and REALTOR.com local community reports. 

Greater Lansing Area Experts: This Month in Real Estate

              January 2012 Market Update

2012 shows signs of an improving housing market as the U.S. economy continues its forward-moving yet slow road to recovery. Although there are economists projecting housing prices will decline further, aided by distressed property sales that sell at a greater discount, these prices are expected to rebound considerably later in the year and continue into 2013.

Factors that continue to impede a speedier recovery in the housing are consumer confidence, job-growth uncertainty, and tough lending standards that keep many otherwise qualified buyers from financing a home purchase. However, consumer confidence may be showing signs of improvement according to a report released by Fannie Mae on December 7, which revealed that consumer sentiment toward home prices is stabilizing and that, for the first time in six months, more people believe that prices will soon begin to rise. This is an encouraging development, as much of our economic vitality depends upon the overall confidence of the consumer, and could trigger even stronger home sales as more people feel confident that prices will go up.

As the new year begins, many consumers appear to be in a holding pattern, waiting to see how the economy reacts to the different demands both here and abroad. Yet with steadily increasing sales and record-breaking affordability, now is the time to take advantage of these opportunities to buy or sell a home.

Greater Lansing Area Experts: Lansing Beats Unemployment Numbers

Lansing's unemplyoment is finally lower than the national average.  Check it out!

Lansing Beats Unemployment Numbers

KW Selling Team's Understanding Real Estate: Land Contracts

A land contract is a written contract between a buyer and seller for the intended purchase of a property.  In this situation, the seller still holds the title or deed of the property making them the legal owner, until all payments from the buyer have been made.  

A down payment is required.  Typically, 10-20% of the contract/sales price is asked for.  Equal monthly payments are then made to the seller until the balloon payment is required.   A balloon payment is a lump sum of money that is owed to the seller at the end of the agreed upon term.  The payment can be made in full by paying cash or by securing a mortgage.  Usually, land contracts are held for 3-5 years.

Amoritization Calculator

If you are having trouble securing a loan through the bank, this might be an option for you.  There are a few things to be leery of.   Clear title.  When you apply for a loan to purchase the property, your lender is going to require that the title be clear of any outstanding liens.  If the seller does not pay the property taxes for the duration of the land contract, a lien will be placed against the home.  It is advisable to address who is paying the property taxes when the land contract is written up.  Mortgage payments.  Many times, the property of interest is still mortgaged.  In these instances, the seller would apply the monthly payments received from you, the buyer to the mortgage.   If the seller does not make the payments the loan will be defaulted on and the property could be foreclosed on.

It is a good idea to get professional assistance before engaging in a land contract.