Last December, 1/3 of home transactions were paid for in cash says a recently released HousingPlus Tracking Survey.  Cash, however, caused sellers to accept offers on their homes in less time and, perhaps, for less than the home was worth; buyers paying with bills offer buyers more security and money up front, an attractive option in an unstable market.  These transactions also tend to happen in less than 30 days, meaning sellers can sell their house quickly and without the stress associated with a property sitting on the market for a long period of time.  Investors, for the most part, use properties for rentals or for “flips,” where they remodel and sell the investment for a higher value.  Paying cash gives them a property more quickly, which means cash can flow back into their pockets sooner through rental income or higher resale value.  For buyers and sellers, cash allows quick exchanges of property without the stress of third party lenders.

One of the nation’s largest professional associations of real estate appraisers, the Appraisal Institute, spoke out recently about the way appraisers are received by buyers and sellers.  The message: don’t blame the appraiser for a disappointing evaluation of your home’s value.  Appraisers set prices, not for buyers or sellers, but for lenders, who make sure that transactions are fair.  “Appraisers don’t set the… market; they reflect what’s happening [in it],” said Sara Stephens, president of the Institute.  The use of an appraiser is important when assessing homes that are distressed or damaged, as they know how to compare those properties to others in the area.

For this generation of college students, foregoing the traditional roommate experience is becoming the norm.  These students, who mostly grew up with their own bedroom, want their own, private space.  As such, college campuses across the nation are investing in dormitories with more single rooms.   And for those who can’t have single rooms on campus, off-campus renting is also attractive.  At one of our own hometown colleges, the University at Buffalo offers upperclassmen the chance to live on or off campus in apartments that give tenants their own rooms.  The university is also developing new townhomes, which offer tenants more private space for a higher price.

The number of properties offered for sale via real estate auction doubled in 2011, according to propertyauction.com.  Sellers of both residential and commercial property are turning to auctions as they can help drive up prices.  Locally, however, auctions are hardly popular: New York state was among the states with the lowest amount of auction activity.  Here in Buffalo, where the market went almost untouched by the national crisis, there is no need for auctions.  With a stable market, Buffalonians are still using traditional means to buy or sell real estate.

Recently, the Chinese government relaxed restrictions on nationals investing in foreign real estate.  Policy analysts predict this action will bring more Chinese investors to America, particularly to major US cities.  New York State Senator Charles Schumer is also working on legislation that will give three-year visas to foreign nationals who invest more than $500,000 in residential real estate.  Therefore, 2012 could be a huge year for internationals investing in markets across the United States.

Congress recently passed legislation that will reinstate loan limits and caps on mortgages for the next two years, making mortgages more affordable for the country’s middle class.  Loan limits place a restriction on the amount of money that can be borrowed from the bank, and this can help consumers from over borrowing.  The National Association of Realtors (NAR) supports the move, which the organization believes will “help reduce [consumer] costs, stabilize local housing markets, and give qualified borrowers [better] access to mortgages.”

Many buyers base their emotional attachment to homes on their first impressions.  Seeing a home that doesn’t meet their initial expectations can often mean that the home is forgotten.  These are some areas of your home that may have an impact on the buyer’s connection to it.

Garage door: Seeing an old, tired looking garage door may be off-putting to buyers because they see the garage before even stepping into the home.  Updating your garage door, or even applying a fresh coat of paint, could help curb appeal.

Windows: Old windows can be seen from both inside and outside the home.  Updated, energy efficient windows are an attractive selling point and could add significant value to your home.

Floors: Old floors can be distracting for buyers; rather than looking at the house, they just look at the dirty or scratched floor beneath them.  Refinishing or replacing floors will help keep buyers attentive to other great parts of the home.

Trim: Painting interior and exterior trim, though quite a job, will make your home seem cleaner and fresher.

In a study conducted by CQ Press, Amherst was ranked 10^th in the nation of cities with the lowest crime rates.  Four of the study’s top ten cities are in New York state, and Amherst scored well above the national average for its low crime.  The study, which made the rankings based on violent crimes, theft, and murder, shows that Amherst has low rates of major crimes compared to the national average.

Although we’ve been hearing for years that it’s a buyer’s market, low mortgage rates make purchasing a home much more attractive.  With lower mortgage payments, buyers can get more for their money—larger homes or better neighborhoods and school districts.  While banks had been very strict about whom they lent money out to, experts think this might be changing.  Being able to make a down payment coupled with good credit or a steady income make you an attractive candidate for low (very low) mortgage rates.  For Buffalonians, however, this is old news: since Buffalo was largely unaffected by the crisis, it has remained a great place for buyers.

While the average outlook for real estate markets in 2012 is a bit gloomy, Buffalonians shouldn’t be too discouraged by national trends.  Since the housing crisis began in 2008, Buffalo has remained relatively untouched by the problems that are paining the rest of the country.  Investment in the city, too, seems to be strong: this year we can look forward to the opening of the Hotel Lafayette (with restaurants, a hotel, and a number of apartments) and a number of other restaurants.  While the news that HSBC would be selling a number of branches scared us earlier this year, First Niagara, a local bank, showed its commitment to the city by buying up most of those banks.  And while the Sabres and Bills aren’t shining right now, there is increasingly strong commitment to both teams via the owners (and presumed future owners)—let’s just hope we’ll be able to see the Sabres play on MSG sometime soon!  A number of local festivities continue, like the Powderkeg Festival, the Ride for Roswell, Garden Walk, and the like.  Indeed, the last few years seem to have been full of efforts to reinvigorate our beloved city, so here’s to more of the same neighborly spirit in 2012.  Happy New Year!