Contracts to buy homes rise slightly, a sign that home sales could be stabilizing.

The number of people preparing to buy a home rose slightly in December, a sign that home sales could be stabilizing heading into the spring home buying season.

The National Association of Realtors says its seasonally adjusted index of sales agreements rose 1 percent from November to December to a reading of 96.6. That was a little lower than the 97.1 level analysts expected, according to Thomson Reuters.

The index has risen for nine out of the past 10 months as buyers scrambled to take advantage of an $8,000 first-time homebuyer tax credit before its scheduled expiration Nov. 30.

Congress extended the tax credit to April 30, and added a $6,500 credit for current homeowners.

Comments (1) | Trackbacks (0) | Permalink

The video below outlines why Steve Jobs is such a captivating speaker. The video is about 7 minutes, by Carmine Gallo.

Carmine Gallo points out some great techniques Steve Jobs uses during his presentations. All of these techniques can be used while presenting real estate to potential buyers or brokers.

Many real estate buyers, sellers and brokers have commented on how enthusiastic and excited I am when presenting or showing clients luxury real estate. As a real estate agent, one has to remember, your clients are giving you permission to have fun and be excited about the properties you are showing!

An important thing to remember is: even though you may have shown a particular property 100 times in the past, this is the first time that buyer has seen the property, be excited about it. Go into detail... don't leave anything out. It's your job to make sure your client remembers everything about that beautiful house!

Comments (0) | Trackbacks (0) | Permalink

The overall trend of luxury real estate sales in 2009 showed improvement over 2008.

The total number of Montreux homes sold significantly increased year-over-year, yet the pressure on prices was evident.

There was a total of 17 Montreux homes sold in 2009--an increase of 30% compared to the full-year 2008. Additionally, 5 custom Montreux lots were sold. This represents a 40% increase in Montreux custom lots compared to the previous year.

Although overall sales numbers increased in 2009, home prices dropped. The average price per square foot for the Montreux homes sold in 2009 dropped by 30%, in comparison to 2008.

With the correction in prices, many of the buyers in 2009 found Montreux real estate and Montreux custom homes now represented an incredible value.

Of the 22 Montreux properties that were sold in 2009, the sales break down included:

• 1 Chalet
• 1 Cottage
• 2 Creekside Manors
• 4 Custom Homes
• 9 Renaissance Homes
• 5 Custom Homesites

Check my website often to get updates on Montreux real estate and luxury real estate listings.

In addition, I have also opened a Twitter account. I will post relevant Montreux real estate information as well as general real estate news. Click here to follow me on Twitter!

If you have any questions, or would like to visit Montreux, please contact me today!

Comments (0) | Trackbacks (0) | Permalink

How do you make your home stand out from the others? Here are ten features that will make your luxury home stand out!

1. Large kitchens – the Number #1 most important room in your house! If your budget is limiting you to only one room to really make impressive, do not hold back in the kitchen! Your design dollars will be well spent on granite countertops with nice "beefy" edges. Back splashes are important as well. Go for granite to match, or mix it up with some stone. Sitting/gathering areas is ideal. Second sinks are also big winners. Brand name appliances (must be stainless or enhanced with cabinetry) is the cherry on top!
2. Energy efficient appliances, high-efficiency insulation and high window efficiency. Among the "green" features touted in homes, these are the ones buyers value most. The use of recycled or synthetic materials is only borderline desirable. Additional insulation or advanced construction that increases R-value is expensive, but becoming more and more popular.
3. Home office/study. People would much rather have this space rather than, say, a formal living room. A room with multi-purposes i.e., desk with comfy couch or theatre chairs is more usable than just a formal room to hold unused furniture.
4. Main-floor master suite. This is a must feature for all types of buyers in varying life stages, and appears to be getting more popular in general. This is a sure fire advantage when considering "resale" down the road.
5. Outdoor Living Room. The popularity of outdoor spaces continues to grow, even in seasonal or colder climates. People want to spend more time outside – cooking & entertaining. This is a lifestyle change and priority for many people today.
6. Great-rooms. This "buzz-word" is a must have for most of today’s house hunters. The kitchen open to the main family/gathering room is essential to demonstrate a modern floorplan necessary for today’s lifestyle.
7. Jetted Tubs and Expansive Showers. Jetted tubs are still desirable for many home buyers, although they may not be overly used. Oversize showers with seating areas and multiple shower heads are also moving up in popularity.
8. Stone and Brick Exteriors. The old standard of "curb-appeal" still holds true. Stucco and vinyl don't make the cut. The more stone and brick, the better! And, well worth the investment.
9. Community Landscaping, with Walking Paths and Playgrounds. The more your community offers the better. People love to see well-cared-for common areas and lush golf courses on their way to their own driveway. A community--like Montreux--that offers walk paths, parks, pools and tennis courts is even better.
10. The more Garages the Better. Regardless of how many cars you may actually own, more garages are better. Three garages is the new standard. An entire bay must be available for storage... toys, boxes, golf carts, ect all need a home, and the space will be well utilized.

Comments (0) | Trackbacks (0) | Permalink

Mortgage applications rose a seasonally adjusted 14.3% last week as interest rates on fixed-rate mortgages fell, the Mortgage Bankers Association said Wednesday.

Refinancing applications jumped 21.8% in the week ended Jan. 8 compared with the week before, which was shortened for the New Year's holiday. Applications for mortgages to purchase homes rose a seasonally adjusted 0.8% on a week-to-week basis.

The Washington-based MBA's survey covers about half of all U.S. retail residential mortgage applications. The pace of filings picked up after having slowed over the holidays.

The MBA's four-week moving average for all mortgages for the period through Jan. 8 was down 6.4% on a seasonally adjusted basis.

Refinancings made up 71.5% of applications last week, up from 68.2% the previous week. Adjustable-rate mortgages accounted for 4% of applications filed, unchanged from the last week of December.

Meanwhile, rates on 30-year fixed-rate mortgages averaged 5.13%, down from 5.18% the previous week.

Fifteen-year fixed-rate mortgages averaged 4.45%, down from 4.62%, but one-year ARMs averaged 6.83% last week, up from 6.42% the previous week.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 1.17 points, the 15-year fixed-rate mortgage required an average 1.04 points, and the one-year ARM required an average 0.31 point. A point is 1% of the mortgage amount, charged as prepaid interest.

Comments (0) | Trackbacks (0) | Permalink

Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by Realtors who completed a recent survey, by RIS Media.

On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80% of project costs upon resale. A steel entry door replacement–a new addition to this year’s list–recouped 128.9% of costs, followed by upscale fiber-cement sliding replacements at 83.6%.

“Once again, this year’s Remodeling Cost vs. Value Report highlights the importance of a home’s first impression,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “With exterior projects returning a high percent of project costs upon resale, Realtors can help give your home curb appeal while adding value to the real estate transaction.”

The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 12th consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with Realtor Magazine, as Realtors provided their insight into local markets and buyer home preferences within those markets.

On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1% of remodeling costs compared to 73.8% in 2008. These types of additions are considered less expenses additions to overall square footage. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3% costs recouped.

Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79% of costs. In addition, several types of window replacements–midrange wood, midrange vinyl, and upscale vinyl–all returned more than 76% of costs upon sale.

Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1% and 50.7% of project costs.

Comments (0) | Trackbacks (0) | Permalink

New construction on U.S. housing units rebounded in November after dropping sharply in the previous month and analysts said the upward trend would continue as long as tax-breaks for first time home buyers remain in place.

Starts rose 8.9% in November to a seasonally adjusted 574,000 annualized units, the Commerce Department reported Wednesday.

October starts were revised lower to a 527,000 pace from 529,000 previously reported. This was down 10.1% from the prior month.

Multifamily starts jumped after hitting record lows in October. There was a slight increase in starts of single-family homes, the Commerce Department reported Wednesday.

Congress extended the home-buyer tax credit until the middle of 2010. The measure had been set to expire at the end of November.

Starts of single-family homes rose 2.1% to a 482,000 rate. This is well about the trough of 357,000 starts reached in February.

In the past year, starts are down 12.4%. Starts of single-family homes are up 5.5%, while starts of apartments and condos have plunged 53.9%.

Building permits rose 6.0% to a seasonally adjusted annual rate of 584,000 in November.

Building permits for single-family homes increased 5.3% to a 473,000 rate. This is a new high for the cycle. Many economists consider single-family permits to be the most important number in the government's release.

Permits for apartments and condos rose 8.8% to 111,000.

Housing starts have stopped plunging this year but have yet to show a sustained uptrend, economists said.

In all of 2008, 906,000 housing units were started. In 2007, it was 1.36 million.

The number of homes under construction fell 3.2% to a record-low 540,000 annual rate, while the number of units completed in November rose 8.7% to an annual rate of 810,000.

These numbers suggest a better trend for the real estate market as a whole. We continue to see buyer interest here at Montreux... even with the snow! If you haven't visited the Private Community of Montreux in some time, please come by, we'd love to see you!

Comments (0) | Trackbacks (0) | Permalink

Average rates for 30-year and 15-year fixed mortgages fell for the fifth consecutive week, reaching all-time lows, Freddie Mac's chief economist said on Thursday.

"In addition, interest rates on 30-year and 15-year fixed mortgages thus far in 2009 averaged one percentage point below their respective average in 2008," said Frank Nothaft, Freddie Mac chief economist, in a news release.

The 30-year fixed-rate mortgage averaged 4.71% for the week ending Dec. 3 -- the lowest it has been since Freddie Mac began its weekly survey in 1971. The mortgage is down from 4.78% last week and 5.53% a year ago.

Fifteen-year fixed-rate mortgages averaged 4.27% this week, a low since Freddie Mac began tracking it in 1991. The mortgage averaged 4.29% last week and 5.77% a year ago.

One-year Treasury-indexed adjustable-rate mortgages averaged 4.25% this week; they haven't been lower since the week ending June 30, 2005, when they averaged 4.24%. The ARM averaged 4.35% last week and 5.02% a year ago.

But the 5-year Treasury-indexed hybrid ARM rose slightly, averaging 4.19% this week, up from 4.18% last week. It averaged 5.77% a year ago.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.7 point and the 15-year fixed-rate mortgage as well as both ARMs required payment of an average 0.6 point.

"Low mortgage rates and the cumulative decline in house prices have contributed to an extremely affordable housing market and helped spur home sales this year," Nothaft said.

"For instance, total new and existing home sales in October were 36% higher than their January low on a seasonally adjusted, annualized rate, according to the U.S. Census Bureau and the National Association of Realtors. The NAR also reported that pending existing home sales rose for the ninth straight month in October, representing the longest consecutive gain since the series began in 2001."

In a separate survey released on Wednesday, the Mortgage Bankers Association reported that mortgage applications filed for the week ending Nov. 27 rose a seasonally adjusted 2.1%, compared with the week before.

Comments (0) | Trackbacks (0) | Permalink

Rates on 30-year fixed-rate mortgages dropped to their lowest levels since May, Freddie Mac reported on Thursday.

The 30-year fixed-rate mortgage averaged 4.83% for the week ending Nov. 19, down from last week's 4.91% average, according to Freddie Mac's weekly survey of conforming mortgage rates. The mortgage averaged 6.04% a year ago.

Fifteen-year fixed-rate mortgages also dropped, averaging 4.32% this week, down from 4.36% last week and 5.73% a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.25% this week, down from 4.29% last week and 5.87% a year ago. And one-year Treasury-indexed ARMs averaged 4.35%, down from 4.46% last week and 5.29% a year ago.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.7 point, while the 15-year fixed-rate mortgage as well as the ARMs required payment of an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

"Interest rates on 30-year fixed-rate mortgage loans fell for the third consecutive week to the lowest since the week ending May 21, while 15-year fixed rates were the lowest since our records began in 1991," said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release.

"Low fixed rates throughout the third quarter prompted an estimated $1.1 trillion in refinancing activity, saving homeowners about $10 billion in aggregate monthly payments over the first 12 months of their new loan. Moreover, for the fourth consecutive quarter, more than 95% of prime borrowers who originally had an ARM selected a conventional fixed-rate mortgage in the third quarter of this year," he said.

Comments (0) | Trackbacks (0) | Permalink

Original article from the Wall Street Journal
States hungry for revenue are turning to taxpayers to make up the shortfall as they deplete rainy-day and economic-stimulus funds. To avert a popular revolt, many are resorting to a so-called millionaire's tax, which puts the burden on a smaller group of the very well-heeled.

A flurry of rate increases occurred this year, and tax analysts say the trend will accelerate in 2010.

In response, some wealthy residents are rethinking their financial strategies, including where they reside. They may see some sense to moving before they sell a business, for example, or stop using certain kinds of trusts.

Doug Stanley, an attorney in the St. Louis office of law firm Bryan Cave LLP, said high personal income-tax rates are "definitely on the radar" of the wealthy clients he advises.

For the rich in California, the question can be "do you really need to live in this state when you have a state next door that has a zero income-tax rate?" said Don Weigandt, a wealth adviser in the Los Angeles office of J.P. Morgan Private Bank. That next-door neighbor is Nevada.

Californians, who have a top individual rate of 10.55% on income over $1 million, actually gained in sideways fashion from recent rate raises around the country. The state dropped below Hawaii, Oregon and New Jersey on the list of places with the highest individual tax rates.

Hawaii enacted a top individual rate of 11% on income over $200,000, Oregon has a new 11% rate on income over $250,000, and New Jersey enacted a 10.75% rate on income above $1 million.

The conservative-leaning Tax Foundation in Washington tracks individual income tax rates, and Joseph D. Henchman, its tax counsel and director of state projects, predicts more states will follow suit with rate increases next year.

If state revenues haven't recovered by then, he said, "we'll see a bitter fight over huge budget shortfalls across the country." Historically, state revenues recover after the general economic recovery, so the chances of such a scenario are high, Mr. Henchman said.

"These millionaire's tax increases will be very appealing because they help a short-term problem, even though they cause significant long-term damage," he said.

The policy of raising state rates on the rich has failed before.

Through the early 1990s, several states maintained double-digit income-tax rates, but eventually brought them down partly because legislators realized they were driving out entrepreneurs. To keep good talent, create jobs and drive economic growth, state tax systems had to be competitive with their neighbors.

Mr. Weigandt said the issue of high rates comes up with his clients most often in the context of selling a business. The question then is "what can I do about my taxes," and it can be tempting to relocate when the answer is that the tax bill could be cut by as much as 40% by just changing residence to Florida, Texas, Washington, Wyoming or another state with low or zero personal income tax.

Picking up stakes needs careful thought and planning, though. States have gotten increasingly aggressive about tracking former residents and seeking taxes from them after they have moved.
###

In the private, gated community of Montreux, we have seen a lot of buyers coming from California simply because of the taxes. The Nevada tax advantages are enough in most cases for luxury real estate buyers to move their businesses (and their families) to Nevada. Most have found Reno to be a great area for business, recreation and family life.

To learn more about Montreux real estate opportunities, or other luxury Reno real estate, please contact Brooke Sullivan today.

Comments (0) | Trackbacks (0) | Permalink