Despite a lower number of permits being issued in the greater Rochester area the first half of 2009, builders remain optimistic for the remainder of the year and beyond.

New home building permits were down over 35%. An unusually snowy winter and unsettled national economy is to blame. “The winter months were long and hard on our industry and the lack of consumer confidence due to the national economic uncertainty early this year has not helped our local industry,” said Dawn Aprile, Chairman of the Rochester Home Builders’ Association and President of Premium Development Corporation. “Many local businesses were affected by the national economy. It has just been recently that we are seeing consumers realizing how solid the housing market is in the greater Rochester area and they are now looking to take advantage of the market,” Aprile said.

“Rochester is a pre-sold market.” said Rick Herman, Chief Executive Officer of the Rochester Home Builders’ Association. “The housing market is good in Rochester compared to the rest of the country. We have a very well balanced market, prices remain stable, and values rarely drop.  Housing is a secure investment in our area.” Herman added.

Some products are moving faster than others when it comes to new home sales. The starter market is experiencing a brisk business due to the $8,000 Federal Tax Credit and the “downsizing” of homes also seems to be solid. The Greater Rochester Area has experienced an “adjustment” or “soft landing” when it comes to new homes. Builders are confident that as consumer confidence is regained, the market will take off again in 2010 with stronger numbers.

In 2009 the Rochester Home Builders’ Association (RHBA) and its nearly 400 business members are celebrating the association’s 75th anniversary. Incorporated in 1934 the Rochester Home Builders’ Association is one of the original eight associations that helped to form the National Association of Home Builders (NAHB) in Washington, D.C.  Seventy five years later NAHB has more than 800 chapters across the country, and the Rochester Home Builders’ Association is one of the strongest and most active of the 16 chapters in New York State. The RHBA is a trade association of home builders, remodelers, general contractors, trades, suppliers, lending institutions and many other businesses that support the building and remodeling industries. Find out more at www.rochesterhomebuilders.com

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REALTOR Magazine announced the “Top 100″ Brokers in the country in the July/August edition. Nothnagle ranks #33, based on transaction sides, which totaled 8,415 in 2008.  Nothnagle agents had amount the highest “average transaction sides per agent” of brokers on the list.  Last year, Nothnagle was ranked #36. Nothnagle outranks brokers from much larger regions and metropolitan areas. Even more significant, Nothnagle is locally-based with nearly all transaction conducted in the Greater Rochester region through our 24 branch offices.

All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR “®” logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again.

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.

But if you’re still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one:

1. Your REALTOR® can help you determine your buying power — that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders — banks and mortgage companies — offer limited choices.

2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you’ll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.

6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.

7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.

8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTORS® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients.

10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

11. Your REALTOR® can help you objectively evaluate every buyer’s proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing — a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

Article courtesy of the National Association of REALTORS®

Members of the REALTORS® Charitable Foundation (RCF) the philanthropic arm of the Greater Rochester Association of REALTORS® were among a record-setting number of 1,200 community volunteers who participated in the 2009 City of Rochester Clean Sweep project. The initiative, created by Mayor Robert J. Duffy in 2005, takes place on four consecutive Saturdays and has become a team-building venue for neighborhood associations, church groups, school clubs and teams, and civic organizations.  

Each year, through the NeighborWorks® Healthy Blocks Initiative, RCF volunteers join forces to help clean and beautify city neighborhoods by removing litter and debris, planting flowers, and pruning trees. On Saturday, May 2, Bill Tierney, Marlynn Butler, Cindy B-Rosato, Paul Knipper, Jeannine Whitaker, Doug Sadowski, and Anastasia Markson were a part of the North Winton Village project team that assembled garden beds, picked up litter, weeded and mulched. 

“This is a great opportunity to work alongside some wonderful people,” said RCF Board Chair Cindy B-Rosato. “Although it involved a lot of backbreaking work, at the end of the day we were able to look back and take pride in all that we were able to accomplish. That really made it all worthwhile.”

Healthy Blocks is NeighborWorks® Rochester’s Targeted Neighborhood Initiative, which incorporates all NeighborWorks® Rochester programs and services in a tailored neighborhood-based delivery model.  In addition to homeownership education, home improvement lending and lead hazards services, Healthy Blocks staff work with residents to develop leadership, increase community engagement, improve curb appeal, and positively impact the local real estate market within the neighborhood.  Ideally, by the end of the program, each targeted neighborhood will have become a “neighborhood of choice” within the city of Rochester. This is defined as a place where people choose to invest their time and money and is reflected in a strong, stable real estate market.

Katrina Hanson, Healthy Blocks program manager, has worked closely with RCF volunteers and admits that they are some of the most hardworking dedicated people she has met. “If you ask the average volunteer to move a couple of yards of mulch and compost, there are going to be some tired volunteers later,” she said.  “But this group really raises the bar.”

The Rochester REALTORS® Charitable Foundation is the Collective heart of Rochester’s real estate professionals, addressing critical housing needs, creating sustainable neighborhoods and encouraging homeownership. Since 2001, RCF has granted nearly $400,000 to over 35 area charities. 

Ellen DiSano, GRAR Director of Marketing

Bill Tierney, RCF Volunteer and

Marty Sample, NeighborWorks® Board Member

Marlynn Butler, RCF , Volunteer

Bill Tierney, RCF Volunteer and

Sarah Culligan, Neighborhood Outreach Coordinator

The National Association of REALTORS® (NAR) reported that nationally close to 455,000 buyers purchased their first home during the first quarter of 2009. First-time home buyers are taking advantage of improved affordability, as well as lower prices of existing homes in foreclosure and short sales. But distressed sales – foreclosures and short sales – accounted for nearly half of all transactions in the first quarter of 2009. That contributed to a decline in the median home prices in most of the metropolitan area markets monitored by the NAR.

The latest NAR quarterly survey of metropolitan area home prices showed the majority of markets — 134 out of 152 metropolitan statistical areas – experiencing declines in home prices compared to the first quarter of 2008. Eighteen metro areas showed price gains over the same period. The national median existing single-family price was $169,000; 13.8 percent below that registered in the first quarter of 2008. Metro area condominium and cooperative prices – covering changes in 56 metro areas – showed the national median existing-condo price was $172,800 in the first quarter, down 20.2 percent from the first quarter of 2008. Five metros showed annual increases in the median condo price and 51 areas had declines.

State Sales Activity

Total state existing-home sales (single-family and condominiums) posted a seasonally adjusted annual rate of 4.59 million units in the first quarter of 2009. That is 3.2 percent off the sales pace in the fourth quarter of last year, and 6.8 percent below the pace in the first quarter of 2008.

There were some bright spots. Seventeen states experienced sales increases from the fourth quarter, and six states posted higher sales than a year ago. The largest sales gain from a year ago was in Nevada, up 116.8 percent, followed by California where sales rose 80.6 percent, Arizona, up 50.2 percent, and Florida with a 25.0 percent increase. Virginia and Minnesota also experienced double-digit sales increases. It should be noted that sales in the first quarter do not reflect the impact from the recently enacted first-time home buyer tax credit. That impact will be felt going forward into the second quarter and the spring and summer seasons. In fact, the latest pending home sales index for March which monitors contract (not sales) activity registered an increase.

In New York State, the April housing data show that the market continued to build momentum in the early spring as sales grew for the second consecutive month with a nearly 14-percent increase in closed sales compared to March.

Anecdotal evidence continuous to indicate that first-time buyers are taking advantage of the favorable conditions by entering the market.  With the $8,000 federal tax credit, low mortgage rates, and available inventory, REALTORS® from across the state are reporting an influx of first-time buyers into the 2009 market.  It is expected that first-time buyers will continue to drive the late spring and summer markets.

The 5,026 existing single-family homes sold by New York REALTORS® in April represents a 13.7 percent increase from the 4,421 sales posted in March 2009, but is a 17.1 percent decline from April 2008.

Metro Prices

Median first-quarter metro area single-family home prices ranged from a very affordable $30,300 in the Saginaw-Saginaw Township North area of Michigan to $570,000 in Honolulu. The largest single-family home price increase in the first quarter was seen in the Cumberland area of Maryland and West Virginia; the median price rose 21.1 percent from a year ago to $114,900. The Davenport-Moline-Rock Island area of Iowa and Illinois posted a median price of $100,300, up 13.8 percent from the first quarter of 2008. The median price of a single-family home in Columbia MO rose 6.0 percent to $152,600.

For existing condominiums, metro area prices ranged from $75,200 in Las Vegas-Paradise NV to $345,900 in San Francisco-Oakland-Fremont CA. The strongest condo price increase was in Portland-South Portland-Biddeford ME, where the median price rose 11.2 percent from a year ago to $196,900. Wichita KS experienced an increase of 6.8 percent in the median price of an existing condominium (to $113,900) and condo prices in Bismarck ND, rose 6.0 percent to $132,400.

Behind the Numbers

NAR analysts report that this is a bifurcated market with sharp differences between foreclosures and short sales on one hand, and traditional homes on the other. In areas with the biggest price declines, there are much higher levels of distressed sales. Distressed homes typically are selling for 20 percent less than traditional homes and thus are skewing median prices downward.

But for those who own homes in good condition, their properties have held their value much better than distressed properties. Consequently, most sellers can still expect a good return if they’ve been in their home for a normal period of homeownership and haven’t tapped into their home equity too excessively.

Still, it is a buyer’s market. Low interest rates, favorable affordability conditions in many markets, and the home buying incentives will continue to attract first-time home purchasers. Indeed, housing affordability conditions are at record high levels. Look for a measurable increase in home sales during the second half of the year, which would help stabilize prices in most areas.

Courtesy of National Association of REALTORS® Research Staff

New York State Report is courtesy of the New York State Association of REALTORS®

The REALTORS® Charitable Foundation (RCF), the philanthropic arm of the Greater Rochester Association of REALTORS®, recently announced its First Quarter grant awards totaling more than $12,500 to local non-profit organizations.  The foundation supports non-profit agencies that address critical housing needs and help to create sustainable neighborhoods.

The Rochester Area Interfaith Hospitality Network, Inc. received $5,000 for its Emergency Homeless Fund, which provides money for clients’ emergency needs, such as food, medicine, and clothing and home setup.

The Bishop Sheen Ecumenical Housing Foundation was awarded $5,000 for its Emergency Home Repair Program, which provides grants to low-income families, seniors, and persons with disabilities for critical home repairs.   Pathstone, formerly known as Rural Opportunities, received $2,500, for a project to beautify the North Union Street Gateway neighborhood to the historical Public Market.

“This is a good example of how REALTORS® are giving back,” said Cindy B-Rosato, an area REALTOR® and chair of the RCF Board of Directors.  “As real estate professionals, we recognize that a vital aspect of doing business is taking responsibility for helping to preserve and enhance the quality of life in our community,” she continued.   “It’s a role that we take very seriously.”

In addition to providing funds for area programs, REALTORS® have participated in various volunteer projects, such as  Clean Sweep Days and neighborhood improvement projects with NeighborWorks Rochester for the Healthy Blocks Initiative in the North Winton Village Neighborhood.

Since its inception in 2001, the RCF has awarded more than $400,000 in grants to 33 local non-profit agencies.  It receives its support from the Greater Rochester Association of REALTORS®, proceeds from its annual golf classic held in July, individual donations from area REALTORS®, and various other fundraising activities conducted throughout the year.