What will Buyers pay EXTRA for?

What will buyers pay EXTRA for? Using data from NAR, a recent USA Today article identifies eleven features. Eight of them and how much extra buyers, on average, would pay for them are:

• Central air conditioning: $2,520
• New kitchen appliances: $1,840
• Walk-in closet in master bedroom: $1,350
• Granite countertops: $1,620
• Hardwood floors: $2,080
• Ensuite master bath: $2,030
• Kitchen island: $1,370
• Stainless steel appliances: $1,850

VERY low rates available for homebuyers! 15-year rates hit a new record low last week (2.61%), while 30-year rates (3.40%) were near their all-time low as well!

Big Predictions for Housing

Outlook for the next 2 yrs.

Home sales are projected to post some big gains in the next two years, according to Fannie Mae’s latest monthly economic outlook. 

Fannie Mae economists predict that existing-home sales will rise by 10.5 percent this year, and by 6.2 percent in 2014. The economists made even bolder projections for new single-family home sales -- growing 15.1 percent this year and 44.1 percent in 2014.

Fannie Mae projects that mortgage rates will stay low by historical averages this year, but the 30-year fixed-rate mortgage will rise from an average of 3.5 percent during the first quarter to an average of 4 percent during the final three months of 2013. During the fourth quarter of 2014, mortgage rates are projected to tick up to a 4.5 percent average. 

Best Cost vs Value

As ranked in March issue of REALTOR Mag.  Exterior projects dominated the list with six of the top 10 most cost-effective midrange projects and eight of the top 10 upscale projects.

Top 10 Midrange Projects 1. Entry Door Replacement (steel) Job Cost: $1,137 Resale Value: $974 Cost Recouped: 85.6 percent 2. Deck Addition (wood) Job Cost: $9,327 Resale Value: $7,213 Cost Recouped: 77.3 percent 3. Garage Door Replacement Job Cost: $1,496 Resale Value: $1,132 Cost Recouped: 75.7 percent 4. Minor Kitchen Remodel Job Cost: $18,527 Resale Value: $13,977 Cost Recouped: 75.4 percent 5. Window Replacement (wood) Job Cost: $10,708 Resale Value: $7,852 Cost Recouped: 73.3 percent (tie) 6. Attic Bedroom Addition Job Cost: $47,919 Resale Value: $34,916 Cost Recouped: 72.9 percent (tie) 6. Siding Replacement (vinyl) Job Cost: $11,192 Resale Value: $8,154 Cost Recouped: 72.9 percent 7. Window Replacement (vinyl) Job Cost: $9,770 Resale Value: $6,961 Cost Recouped: 71.2 percent 8. Basement Remodel Job Cost: $61,303 Resale Value: $43,095 Cost Recouped: 70.3 percent 9. Major Kitchen Remodel Job Cost: $53,931 Resale Value: $37,139 Cost Recouped: 68.9 percent 10. Deck Addition (composite) Job Cost: $15,084 Resale Value: $10,184 Cost Recouped: 67.5 percent

Top 10 Upscale Projects 1. Siding Replacement (fiber-cement) Job Cost: $13,083 Resale Value: $10,379 Cost Recouped: 79.3 percent 2. Garage Door Replacement Job Cost: $2,720 Resale Value: $2,046 Cost Recouped: 75.2 percent 3. Siding Replacement (foam-backed vinyl) Job Cost: $13,818 Resale Value: $9,926 Cost Recouped: 71.8 percent 4. Window Replacement (vinyl) Job Cost: $13,055 Resale Value: $9,295 Cost Recouped: 71.2 percent 5. Window Replacement (wood) Job Cost: $16,361 Resale Value: $11,194 Cost Recouped: 68.4 percent 6. Grand Entrance (fiberglass) Job Cost: $7,088 Resale Value: $4,528 Cost Recouped: 63.9 percent 7. Deck Addition (composite) Job Cost: $34,403 Resale Value: $20,532 Cost Recouped: 59.7 percent 8. Major Kitchen Remodel Job Cost: $107,406 Resale Value: $64,113 Cost Recouped: 59.7 percent 9. Bathroom Remodel Job Cost: $50,007 Resale Value: $29,162 Cost Recouped: 58.3 percent 10. Roofing Replacement Job Cost: $33,880 Resale Value: $19,194 Cost Recouped: 56.7 percent