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California Home Prices: A History

Goldman Sachs predicts home sales will keep increasing for four years

By Jacob Gaffney

 • February 21, 2013 • 8:33am

Wall Street investment bank Goldman Sachs ($150.68 -0.97%) is telling clients that the housing recovery is real and happening.

The financial firm is predicting home sales will rise steadily for the next four years.

"Our forecast points to steady increases in home sales going forward. We expect total existing home sales to increase to 5.2 million in 2013 and 5.7 million in 2016," said analysts Hui Shan and Jari Stehn. "We also project new single-family home sales to reach 750,000 in 2016."

Click graph to enlarge:

"We project national house prices to rise 17% over the next four years and the unemployment rate to drop to 6.2% by the end of 2016," they add. "These improvements support more economic activity and housing transactions."

There are several limitation to their estimation. In the near term, the speed at which distressed sales will decline is subject to the changing legal landscape. For example, the California Homeowner Bill of Rights, which took effect in January 2013, provides homeowners more protection against foreclosures, the analysts said. 

"To the extent that the reduction in foreclosures cannot be easily converted into other forms of distressed sales such as short sales, we may see fewer distressed sales, and therefore, fewer total existing home sales," write the analysts.

In the medium term, homeowners who move from negative equity to positive equity may still be unable to move locations. This creates a locked-in risk for homeowners and could negatively impact the above estimations.

- See more at: http://www.housingwire.com/news/2013/02/21/goldman-sachs-predicts-home-sales-will-keep-increasing-four-years#sthash.L3koWrsE.dpuf

Basket Liner

Free up counter space with a handy storage container for fresh produce and kitchen utensils. All you need is a basket, a drop cloth, paint, and our free downloadable stencil.

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Step 1: Wash, dry, and iron the drop cloth. Measure a 41" x 12" section and a 40" x 13" section to fit a 12" x 13" basket. To create basket liners with frayed edges, make a small cut at the edge of the cloth and pull the strings to fray the fabric the rest of the length. Do this for all four sides on both liners. 

Step 2: Print out the Fresco stencil. Cut out the inside of the letters and the design using a crafts knife. 

Step 3: Choose which liner will drape over the front of the basket. Pin the stencil to the front-facing liner. Paint the letters and the design and let dry (We used Valspar Signature Hacienda Tile and La Fonda Teal). Apply the design to the other end of the liner and on the ends of the second liner. Let dry.

Good to Know: Drape the liners over the basket before applying the stencil to get a better idea of where to place it.

Step 4: Drape the completed liners over the basket and smooth into place. 

Follow our Easy Stenciling Techniques to help you get perfect stencils every time.

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Improve your chances in multiple-offer situations

Too many contingencies can put buyers at a competitive disadvantage

By Dian Hymer
Inman News®

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Some buyers in hot markets with a low inventory of homes for sale are losing out over and over in multiple-offer competitions. You can improve your chances of having an offer accepted by clearing up any issues that might cause a seller to look askance at your offer when compared to one from another buyer.

If your purchase offer is littered with contingencies that protect you, the sellers are more likely to see the contract as risky, especially if they are looking at other offers that contain fewer contingencies.

A clean contract is free of contingencies, which can give buyers a competitive advantage, especially if they are offering less than full price or are in competition with other buyers.

Timing is everything in the home sale business. Buyers often lose out on the opportunity to make an offer on a listing because they are traveling for business or vacation. One partner may see the home of their dreams, but the other won't be back in town to take a look for days or weeks.

Making an offer contingent on the absentee buyer's approval of a property is risky from the seller's standpoint. If the seller accepts the offer, he takes his home off the market not knowing if the absentee buyer will like the house enough to buy it.

It would be very difficult to get such an offer accepted if there are multiple offers from buyers who have all seen the property. The Internet can give a great introduction to a listing, but it usually doesn't include photos of items that might cause you to pass on the property, like a neighbor's home that is in poor repair or a location close to a noisy freeway.

Some buyers buy property without having seen it. To get an offer accepted, these offers usually have a generous price, and close quickly. The buyers may later find problems that they could have discovered had they seen the property before making an offer. It's better for both buyers and sellers if all potential buyers have seen the property before an offer is made.

HOUSE HUNTING TIP: Try to anticipate if there is any condition of your home purchase that would cause the sellers to shy away from accepting or countering your offer. If such conditions exist, try to address them before you make an offer.

For example, let's say your parents are willing to give you a large amount of cash for a down payment to make your offer more competitive. Make sure this will be acceptable to your mortgage lender.

Find out what verification the lender will require from your parents. If the lender needs a gift letter that stipulates you don't need to repay the money, have your parents write this letter and include a copy with your offer.

Sellers are always concerned about the buyer's financial capability to close the transaction. Your offer should include a letter from your lender stating that you are preapproved for the financing that you need. The letter should stipulate that the lender has verified the cash you need for the down payment and closing costs.

If the verification of funds needed to close is not included in the preapproval letter, make a copy of a bank or brokerage statement that verifies the amount you need. Black out the account number and include a copy of this with your offer.

In some areas, buyers are making offers without any contingencies. That is as clean as it gets. However, there can be problems with contingency-free offers. Buyers can feel pressured into waiving an inspection contingency because they're sure they can't compete unless they do. The sellers could end up in a legal hassle with the buyers after closing if problems arise that weren't disclosed to them.

THE CLOSING: Buyers should ask the sellers for permission to preinspect the property before they make an offer without an inspection contingency.

Easy DIY Laundry Room Storage

Empty paint cans make great catch-alls for laundry sundries.

Bring old paint cans out of retirement -- or purchase new empty cans (#60689, #27318) -- and put them to work storing clothespins and other laundry essentials. 

Step 1: To get the faux bois finish, simply apply shelf liner (#223760) around the cans. 

Step 2: Paint with a graining tool (#293308).