Tuesday, December 8, 2009
Short Sale Guidelines
Click on the following link for Short Sale Guidelines: http://www.realtor.org/RMODaily.nsf/pages/News2009120201?OpenDocument
Tuesday, October 27, 2009
Tuesday, October 20, 2009
Market Recap
Keeping you updated on the market! For the week of October 19, 2009
MARKET RECAP
The U.S. economy continues on its path to salvation. Retail sales, an arbiter of economic activity, declined 1.5% in September, which would seem a step back at first glance. On second glance, the numbers suggest sales are improving nicely. Stripping out autos (which everyone knew would decline after the “cash-for-clunkers” program expired) and volatile gasoline and building materials, sales actually increased 0.5%, building on the 0.7% increase in August.
Just as important, people are not just buying more here, but abroad too. World trade is accelerating, evinced by the dollar value of exports, which rose 0.2% in August. Signs of an upward turn in world trade are good news for us, because they will spur an increase in production and hiring in exporting sectors that are plagued by high unemployment.
Unemployment remains “the” ongoing concern, but concerns are also rising over housing's ability to deflate an inflating economy. Integrated Asset Services reported house prices declined 0.2% in August, the second month of declines after a fourth-month-long rally that brought a 2.8% increase. This piece of data has led a few pundits to speculate that we are headed for a double-dip – a return to falling home prices.
We are unconvinced that is the case. It is worth noting that IAS also reported price increases of 0.7% in the Midwest and Northwest, while New York City and San Diego both posted 1.3% month-over-month increases. Yes, pockets of price deflation persist: namely, in the South and West, which reported declines of 0.1% and 1.2%, respectively, but those percentages were influenced by concentrated trouble spots, such as San Joaquin County in California and Lee County in Florida .
The price-deflation believers also point to the market-propping effect of the $8,000 first-time homebuyer’s tax credit, set to expire on November 30. The credit has helped support prices, to be sure, but we should not overlook the impact of an improving economy. Besides, we still think odds favor a credit extension, though we cannot say for sure how long the extension will last, or what bells and whistles will be added.
We also think that odds still favor a rising mortgage-rate environment, which is tougher to refute, considering gold traded at over $1,070 an ounce last week. Treasury yields moved slightly higher, and so did mortgage rates, though they are still very good. Zillow.com showed the state average remains below 5.15% in all 50 states. We will say it again: If you are looking for a mortgage loan, there's no better time than the present.
Economic Indicator
Release Date and Time
Consensus Estimate
Analysis
Housing Market Index(October)
Mon, Oct. 19,1:00 pm, et
20 Index
Important. Expect additional improvement in the single-family component of the index.
Housing Starts(September)
Tues, Oct. 20,8:30 am, et
610,000 (Annualized)
Important. Starts are reflecting an improving economic outlook.
Producer Price Index(September)
Tues, Oct. 20,8:30 am, et
All Goods: 0.1% (Increase)Core: 0.1% (Increase)
Important. Producer inflation remains subdued, but there are signs of growing pressure.
Mortgage Applications
Wed, Oct. 21,7:00 am, et
None
Important. Recent economic data have tempered purchase activity.
FHFA House Price Index(August)
Thurs, Oct. 22,10:00 am, et
None
Important. Another price increase will mitigate price-deflation concerns.
Leading Indicators(September)
Thurs, Oct. 22,10:00 am, et
0.5% (Increase)
Moderately Important. Indicators continue to support notions of a sustained recovery.
Existing Home Sales(September)
Fri, Oct. 23,10:00 am, et
5.3 Million (Annualized)
Important. Sales are expected to recover after dipping in August.
A Realistic View of Prices
S&P/Case-Shiller 10-City Composite Home Price Index rose 3.6% between April and July, following a decline of 4.8% in the previous period, between January and April. But that's nothing new. Robert Shiller, the index's co-founder, found a close parallel at the end of the 1990-91 recession, where home prices rose 2.3% from April to July 1991 after having fallen 2.1% from January to April that year.
Here is another interesting fact to suggest price volatility is the norm: Since 1979, residential real estate prices have had two 10-year long cycles where prices have risen significantly, then retreated approximately 15% to 20% over the subsequent two years. This tendency to increase then tumble back has kept housing appreciation more or less on pace with inflation over the past 100 years.
Mortgage rates have also demonstrated spurts of volatility. In 1977, the prime 30-year fixed-rate mortgage averaged 8.8%, spiking to 13.7% in 1980 before topping out at 16.0% in 1982. From 1984 through the present, mortgage rates have steadily trended lower to today's unprecedented levels, with no significant spikes in the interim. Does that mean mortgage-rate volatility is a thing of the past? All we can say is that it is worth heeding the late economist Hyman Minsky's admonition on stability. According to Minsky, the longer things are stable, the more likely they are to become unstable.
MARKET RECAP
The U.S. economy continues on its path to salvation. Retail sales, an arbiter of economic activity, declined 1.5% in September, which would seem a step back at first glance. On second glance, the numbers suggest sales are improving nicely. Stripping out autos (which everyone knew would decline after the “cash-for-clunkers” program expired) and volatile gasoline and building materials, sales actually increased 0.5%, building on the 0.7% increase in August.
Just as important, people are not just buying more here, but abroad too. World trade is accelerating, evinced by the dollar value of exports, which rose 0.2% in August. Signs of an upward turn in world trade are good news for us, because they will spur an increase in production and hiring in exporting sectors that are plagued by high unemployment.
Unemployment remains “the” ongoing concern, but concerns are also rising over housing's ability to deflate an inflating economy. Integrated Asset Services reported house prices declined 0.2% in August, the second month of declines after a fourth-month-long rally that brought a 2.8% increase. This piece of data has led a few pundits to speculate that we are headed for a double-dip – a return to falling home prices.
We are unconvinced that is the case. It is worth noting that IAS also reported price increases of 0.7% in the Midwest and Northwest, while New York City and San Diego both posted 1.3% month-over-month increases. Yes, pockets of price deflation persist: namely, in the South and West, which reported declines of 0.1% and 1.2%, respectively, but those percentages were influenced by concentrated trouble spots, such as San Joaquin County in California and Lee County in Florida .
The price-deflation believers also point to the market-propping effect of the $8,000 first-time homebuyer’s tax credit, set to expire on November 30. The credit has helped support prices, to be sure, but we should not overlook the impact of an improving economy. Besides, we still think odds favor a credit extension, though we cannot say for sure how long the extension will last, or what bells and whistles will be added.
We also think that odds still favor a rising mortgage-rate environment, which is tougher to refute, considering gold traded at over $1,070 an ounce last week. Treasury yields moved slightly higher, and so did mortgage rates, though they are still very good. Zillow.com showed the state average remains below 5.15% in all 50 states. We will say it again: If you are looking for a mortgage loan, there's no better time than the present.
Economic Indicator
Release Date and Time
Consensus Estimate
Analysis
Housing Market Index(October)
Mon, Oct. 19,1:00 pm, et
20 Index
Important. Expect additional improvement in the single-family component of the index.
Housing Starts(September)
Tues, Oct. 20,8:30 am, et
610,000 (Annualized)
Important. Starts are reflecting an improving economic outlook.
Producer Price Index(September)
Tues, Oct. 20,8:30 am, et
All Goods: 0.1% (Increase)Core: 0.1% (Increase)
Important. Producer inflation remains subdued, but there are signs of growing pressure.
Mortgage Applications
Wed, Oct. 21,7:00 am, et
None
Important. Recent economic data have tempered purchase activity.
FHFA House Price Index(August)
Thurs, Oct. 22,10:00 am, et
None
Important. Another price increase will mitigate price-deflation concerns.
Leading Indicators(September)
Thurs, Oct. 22,10:00 am, et
0.5% (Increase)
Moderately Important. Indicators continue to support notions of a sustained recovery.
Existing Home Sales(September)
Fri, Oct. 23,10:00 am, et
5.3 Million (Annualized)
Important. Sales are expected to recover after dipping in August.
A Realistic View of Prices
S&P/Case-Shiller 10-City Composite Home Price Index rose 3.6% between April and July, following a decline of 4.8% in the previous period, between January and April. But that's nothing new. Robert Shiller, the index's co-founder, found a close parallel at the end of the 1990-91 recession, where home prices rose 2.3% from April to July 1991 after having fallen 2.1% from January to April that year.
Here is another interesting fact to suggest price volatility is the norm: Since 1979, residential real estate prices have had two 10-year long cycles where prices have risen significantly, then retreated approximately 15% to 20% over the subsequent two years. This tendency to increase then tumble back has kept housing appreciation more or less on pace with inflation over the past 100 years.
Mortgage rates have also demonstrated spurts of volatility. In 1977, the prime 30-year fixed-rate mortgage averaged 8.8%, spiking to 13.7% in 1980 before topping out at 16.0% in 1982. From 1984 through the present, mortgage rates have steadily trended lower to today's unprecedented levels, with no significant spikes in the interim. Does that mean mortgage-rate volatility is a thing of the past? All we can say is that it is worth heeding the late economist Hyman Minsky's admonition on stability. According to Minsky, the longer things are stable, the more likely they are to become unstable.
Thursday, October 8, 2009
The Case of the Missing REO Inventory
The Case of the Missing REO Inventory
Rick Sharga
Certain things in life are simply meant to be mysteries. There are age-old philosophical questions that have kept philosophers busy for millennia: What is the sound of one hand clapping? If a tree falls in the forest and no one is there, does it still make a sound? Other mysteries hang heavy with intrigue: What really happened to Amelia Earhart? And who really kidnapped the Lindbergh baby? And still others simply defy logic: If Denny’s is open 24 hours a day, 365 days a year, why are there locks on the doors?
Now we can add another question to the list of ongoing mysteries: With foreclosure activity breaking records nearly every month, where are all the REOs?It’s a fair question. In normal market situations, a bank will repossess a home and usually process it through to a listing agent to put on the MLS within 30 days. In a relatively short period of time, virtually every marketable REO property finds itself listed for sale on the local MLS. Today, that’s simply not the case; it’s likely that between 450,000 and 500,000 properties repossessed over the past year are still not on the market. And with buyers hungry for housing bargains, and agents and brokers champing at the bit ready to sell the properties, it begs for a reasonable answer.
Lenders and servicers admit that it’s taking longer to process REOs than it has in the past, and they offer a number of legitimate reasons:
-Many of the properties have title issues that need to be resolved
-Many of the properties are in states of utter disrepair
-A number of states have strict redemption rights periods, which prevents the lender from reselling the property
-A few states have extended the length of eviction proceedings
-The sheer volume of REO activity has created a “pig in the python” phenomena, (to put this in perspective, there will be roughly four times the number of REOs this year as in the last “normal” year, 2005)
What else could be slowing things down? A popular theory is that many banks are holding the properties off the market in order to defer losses. There is some accounting logic to this theory, as in most cases banks aren’t required to adjust asset prices until the actual resale of the property. Another idea is that the industry is holding back the inventory to create leverage with the government in order to force the creation of a “toxic bank” or RTC-like entity that would buy the distressed assets at 50 to 60 cents on the dollar rather than the 30 to 35 cents available on the market today. This theory suggests that, seeing the threat of a massive inventory of distressed homes being released all at once, the government would “blink” rather than risk another housing market meltdown.
Whatever the reason — process issues or conspiracies — we’re going to continue to see record-breaking numbers of REOs for at least the next year, and will all be watching to see when these sought-after homes finally make their way to the market.
Rick Sharga
Certain things in life are simply meant to be mysteries. There are age-old philosophical questions that have kept philosophers busy for millennia: What is the sound of one hand clapping? If a tree falls in the forest and no one is there, does it still make a sound? Other mysteries hang heavy with intrigue: What really happened to Amelia Earhart? And who really kidnapped the Lindbergh baby? And still others simply defy logic: If Denny’s is open 24 hours a day, 365 days a year, why are there locks on the doors?
Now we can add another question to the list of ongoing mysteries: With foreclosure activity breaking records nearly every month, where are all the REOs?It’s a fair question. In normal market situations, a bank will repossess a home and usually process it through to a listing agent to put on the MLS within 30 days. In a relatively short period of time, virtually every marketable REO property finds itself listed for sale on the local MLS. Today, that’s simply not the case; it’s likely that between 450,000 and 500,000 properties repossessed over the past year are still not on the market. And with buyers hungry for housing bargains, and agents and brokers champing at the bit ready to sell the properties, it begs for a reasonable answer.
Lenders and servicers admit that it’s taking longer to process REOs than it has in the past, and they offer a number of legitimate reasons:
-Many of the properties have title issues that need to be resolved
-Many of the properties are in states of utter disrepair
-A number of states have strict redemption rights periods, which prevents the lender from reselling the property
-A few states have extended the length of eviction proceedings
-The sheer volume of REO activity has created a “pig in the python” phenomena, (to put this in perspective, there will be roughly four times the number of REOs this year as in the last “normal” year, 2005)
What else could be slowing things down? A popular theory is that many banks are holding the properties off the market in order to defer losses. There is some accounting logic to this theory, as in most cases banks aren’t required to adjust asset prices until the actual resale of the property. Another idea is that the industry is holding back the inventory to create leverage with the government in order to force the creation of a “toxic bank” or RTC-like entity that would buy the distressed assets at 50 to 60 cents on the dollar rather than the 30 to 35 cents available on the market today. This theory suggests that, seeing the threat of a massive inventory of distressed homes being released all at once, the government would “blink” rather than risk another housing market meltdown.
Whatever the reason — process issues or conspiracies — we’re going to continue to see record-breaking numbers of REOs for at least the next year, and will all be watching to see when these sought-after homes finally make their way to the market.
Tuesday, September 29, 2009
Exciting news from Washington D.C.
Exciting news from Washington D.C.
The U.S. Treasury department announced it will soon issue details on its short sales and deeds-in-lieu program.
Click the following link to find out more: http://www.youtube.com/watch?v=hEVcO7_kbko
The U.S. Treasury department announced it will soon issue details on its short sales and deeds-in-lieu program.
Click the following link to find out more: http://www.youtube.com/watch?v=hEVcO7_kbko
Thursday, September 3, 2009
Virginia Beach Ranks Among America's Ten Best Places to Grow Up
Virginia Beach Ranks Among America’s Ten Best Places to Grow Up
Posted: 01 Sep 2009 08:57 AM PDT
Here’s the write-up from US News and World report:
If you could create the ideal community to raise a child in, what ingredients would you include? First off, you’d probably want a low crime rate.
A strong school system would also be key. From there, you’d need lots of other children, expansive green spaces to play in, and plenty of nearby family events. Toss in an abundance of artistic and recreational activities, and all of a sudden you’ve got one heck of a place to grow up. At U.S. News, we wanted to find out if any communities like that already existed—and if so, where they were located. So we dug into our database of 2,000 different places all across the country and pinpointed the locales that met these criteria. We then examined these communities more closely to determine which places offered the best combination of safe neighborhoods, fun activities, and top-notch educators. Our selections appear below, in our list of America’s 10 Best Places to Grow Up:
Virginia Beach, Va.
Junior adventurers will love Virginia Beach, Va. This community of 434,000 residents in the southeastern part of the state has a low crime rate, a solid school system, and 35 miles of majestic beaches on the Atlantic Ocean and the Chesapeake Bay. “It’s kind of neat to be able to come home from work, make a call to my wife or son, grab a bucket of chicken or some sandwiches, and then go out on the bay and have dinner,” says Greg Ward, who works for a marketing firm that represents the Virginia Beach Convention and Visitors Bureau.
Children can explore an impressive ecosystem of threatened and endangered species—including bald eagles and loggerhead sea turtles—in the 9,000-acre Back Bay National Wildlife Refuge. The warm summers and mild winters provide plenty of opportunities to hike, bike, and picnic your way through the 19 miles of scenic trails over at First Landing State Park. And after checking out the sand tiger sharks and the cow-nose rays at the Virginia Aquarium and Marine Science Center, children can catch an educational picture in its 3-D IMAX theater.
And in early September, the community is launching an online resource—VBparents.com—designed to keep parents plugged in to local health and school news, while ensuring that they are up-to-date on all of the community activities available to their kids. “There are lots of great parenting resources out there. This one is going to be specific to raising your child and your family within the city of Virginia Beach,” says Jenefer Snyder, city of Virginia Beach GrowSmart coordinator. “We are constantly going to be connecting it back to community services, activities, events, programs, and classes.”
Posted: 01 Sep 2009 08:57 AM PDT
Here’s the write-up from US News and World report:
If you could create the ideal community to raise a child in, what ingredients would you include? First off, you’d probably want a low crime rate.
A strong school system would also be key. From there, you’d need lots of other children, expansive green spaces to play in, and plenty of nearby family events. Toss in an abundance of artistic and recreational activities, and all of a sudden you’ve got one heck of a place to grow up. At U.S. News, we wanted to find out if any communities like that already existed—and if so, where they were located. So we dug into our database of 2,000 different places all across the country and pinpointed the locales that met these criteria. We then examined these communities more closely to determine which places offered the best combination of safe neighborhoods, fun activities, and top-notch educators. Our selections appear below, in our list of America’s 10 Best Places to Grow Up:
Virginia Beach, Va.
Junior adventurers will love Virginia Beach, Va. This community of 434,000 residents in the southeastern part of the state has a low crime rate, a solid school system, and 35 miles of majestic beaches on the Atlantic Ocean and the Chesapeake Bay. “It’s kind of neat to be able to come home from work, make a call to my wife or son, grab a bucket of chicken or some sandwiches, and then go out on the bay and have dinner,” says Greg Ward, who works for a marketing firm that represents the Virginia Beach Convention and Visitors Bureau.
Children can explore an impressive ecosystem of threatened and endangered species—including bald eagles and loggerhead sea turtles—in the 9,000-acre Back Bay National Wildlife Refuge. The warm summers and mild winters provide plenty of opportunities to hike, bike, and picnic your way through the 19 miles of scenic trails over at First Landing State Park. And after checking out the sand tiger sharks and the cow-nose rays at the Virginia Aquarium and Marine Science Center, children can catch an educational picture in its 3-D IMAX theater.
And in early September, the community is launching an online resource—VBparents.com—designed to keep parents plugged in to local health and school news, while ensuring that they are up-to-date on all of the community activities available to their kids. “There are lots of great parenting resources out there. This one is going to be specific to raising your child and your family within the city of Virginia Beach,” says Jenefer Snyder, city of Virginia Beach GrowSmart coordinator. “We are constantly going to be connecting it back to community services, activities, events, programs, and classes.”
Tuesday, September 1, 2009
REMAX Allegiance to Participate in Extreme Home Makeover
RE/MAX Allegiance to Participate in ABC’s Extreme Makeover Home Edition
Posted: 25 Aug 2009 08:26 AM PDT
RE/MAX Allegiance has been selected to participate in ABC’s Extreme Makeover Home Edition this week. The show is in town doing a makeover of a local residence and a local community center.
“We’re thrilled to be selected as the only real estate company to participate in the show,” says Charlie Bengel, Jr. (CRB, CRS, ABR, ABRM, e-PRO), Chief Executive Officer of RE/MAX Allegiance. “This opportunity lends itself perfectly to one of our core values of giving back to the community.”
RE/MAX Allegiance had over 150 members volunteer to participate in the makeover and will have volunteers on site from 3am Thursday to 3pm Friday with the reveal coming up on Saturday.
Posted: 25 Aug 2009 08:26 AM PDT
RE/MAX Allegiance has been selected to participate in ABC’s Extreme Makeover Home Edition this week. The show is in town doing a makeover of a local residence and a local community center.
“We’re thrilled to be selected as the only real estate company to participate in the show,” says Charlie Bengel, Jr. (CRB, CRS, ABR, ABRM, e-PRO), Chief Executive Officer of RE/MAX Allegiance. “This opportunity lends itself perfectly to one of our core values of giving back to the community.”
RE/MAX Allegiance had over 150 members volunteer to participate in the makeover and will have volunteers on site from 3am Thursday to 3pm Friday with the reveal coming up on Saturday.
Thursday, August 6, 2009
Changing Home Prices in the Top 100 Metros
Changing Home Prices in the Top 100 Metros
Posted: 31 Jul 2009 09:08 AM PDT
The following is a handy chart to show, perhaps, to prospective buyers who believe that purchasing a home is not a great long term investment. Even after the worst housing market ever, check out the gains over five or ten years.
The report is available in pdf here: Top 100 Housing Markets Changes.
source: Washington Business Journal
Posted: 31 Jul 2009 09:08 AM PDT
The following is a handy chart to show, perhaps, to prospective buyers who believe that purchasing a home is not a great long term investment. Even after the worst housing market ever, check out the gains over five or ten years.
The report is available in pdf here: Top 100 Housing Markets Changes.
source: Washington Business Journal
Tuesday, July 28, 2009
Housing Prices Rise in May
Housing Prices Rise in May
Posted: 27 Jul 2009 09:30 AM PDT
Another reason for your buyers to get off the fence:
Average U.S. home prices have started to rise, according to a monthly report from the Federal Housing Finance Agency.
FHFA says U.S. home prices rose 0.9 percent from April to May. The biggest gains were in the battered Pacific region, where average prices were up 2.7 percent from the previous month.Federal“Revisions and volatility of the monthly index make it hard to draw any conclusions, but the seasonally-adjusted Home Price Index for the first five months of this year is up 0.3 percent or 0.7 percent on an annualized basis,” FHFA Director James Lockhart said in a statement.
FHFA’s monthly and quarterly Home Price Index is based on conforming mortgages that are purchased or backed by Freddie Mac and Fannie Mae.
from The Washington Business Journal
Posted: 27 Jul 2009 09:30 AM PDT
Another reason for your buyers to get off the fence:
Average U.S. home prices have started to rise, according to a monthly report from the Federal Housing Finance Agency.
FHFA says U.S. home prices rose 0.9 percent from April to May. The biggest gains were in the battered Pacific region, where average prices were up 2.7 percent from the previous month.Federal“Revisions and volatility of the monthly index make it hard to draw any conclusions, but the seasonally-adjusted Home Price Index for the first five months of this year is up 0.3 percent or 0.7 percent on an annualized basis,” FHFA Director James Lockhart said in a statement.
FHFA’s monthly and quarterly Home Price Index is based on conforming mortgages that are purchased or backed by Freddie Mac and Fannie Mae.
from The Washington Business Journal
Tuesday, July 21, 2009
Freddie Mac Allows Refinancing of 125% of Home Value
Freddie Mac Allows Refinancing of 125% of Home Value
Posted: 01 Jul 2009 01:48 PM PDT
Freddie Mac announced Wednesday that it would offer loan-to-value ratios on home mortgage refinancings of up to 125 percent for qualified borrowers.
The announcement comes as the Obama administration raised the maximum allowable loan-to-value (LTV) ratio from 105 percent.
As a result of this change, qualified borrowers will be able to obtain McLean-based Freddie Mac’s (NYSE:FRE) Relief Refinance Mortgages with loan amounts up to 125 percent of the current value of their property. The higher LTV ratio is expected to give homeowners – especially those in markets that have experienced sharp declines in home values — more options to refinance into mortgages with terms that better position them for long-term homeownership, the company said.
“This is a change that will put affordable refinancing opportunities within reach of performing borrowers who have suffered the effects of local home price erosion,” said Don Bisenius, executive vice president in a statement. “Today’s announcement also underscores Freddie Mac’s commitment to make the Obama administration’s Making Home Affordable program a gateway to successful long-term homeownership for as many borrowers as possible.”
To encourage borrowers with 30-year fixed rate mortgages to consider a shorter 25-year term, Freddie Mac is providing a special price incentive to lenders. The incentive only applies to Relief Refinance Mortgages with LTV ratios between 105 percent and 125 percent. The 25-year term will result in borrowers paying less interest over the life of their loan and over time improving their overall equity position.
Freddie Mac’s Relief Refinance Mortgage is available to borrowers who are current on mortgages that are owned or guaranteed by Freddie Mac.
Freddie Mac’s Relief Refinance Mortgage allows borrowers to finance closing costs, financing costs and escrows up to $5,000 or 4 percent of the current unpaid principal balance of the mortgage being refinanced, whichever is less. Mortgage insurance is not required if the existing mortgage does not require it. Otherwise, mortgage insurance coverage on the new loan must be the same as on the original mortgage.
Borrowers who apply for Relief Refinance Mortgages through their current servicer will not need to be re-underwritten in most cases. When borrowers apply for Relief Refinance Mortgages through lenders other than their current servicer, the lender must re-underwrite the borrower through Loan Prospector, Freddie Mac’s automated underwriting service, the company said.
The expanded LTV ratios are available now when borrowers apply for Relief Refinance Mortgages through their current servicer and will become available Oct. 1 when borrowers apply through any lender affiliated with Freddie Mac.
Freddie Mac also said the resulting impact on prepayments for certain Freddie Mac mortgage participation certificates, may vary, depending on borrower response and other factors.
source: Washington Business Journal
Posted: 01 Jul 2009 01:48 PM PDT
Freddie Mac announced Wednesday that it would offer loan-to-value ratios on home mortgage refinancings of up to 125 percent for qualified borrowers.
The announcement comes as the Obama administration raised the maximum allowable loan-to-value (LTV) ratio from 105 percent.
As a result of this change, qualified borrowers will be able to obtain McLean-based Freddie Mac’s (NYSE:FRE) Relief Refinance Mortgages with loan amounts up to 125 percent of the current value of their property. The higher LTV ratio is expected to give homeowners – especially those in markets that have experienced sharp declines in home values — more options to refinance into mortgages with terms that better position them for long-term homeownership, the company said.
“This is a change that will put affordable refinancing opportunities within reach of performing borrowers who have suffered the effects of local home price erosion,” said Don Bisenius, executive vice president in a statement. “Today’s announcement also underscores Freddie Mac’s commitment to make the Obama administration’s Making Home Affordable program a gateway to successful long-term homeownership for as many borrowers as possible.”
To encourage borrowers with 30-year fixed rate mortgages to consider a shorter 25-year term, Freddie Mac is providing a special price incentive to lenders. The incentive only applies to Relief Refinance Mortgages with LTV ratios between 105 percent and 125 percent. The 25-year term will result in borrowers paying less interest over the life of their loan and over time improving their overall equity position.
Freddie Mac’s Relief Refinance Mortgage is available to borrowers who are current on mortgages that are owned or guaranteed by Freddie Mac.
Freddie Mac’s Relief Refinance Mortgage allows borrowers to finance closing costs, financing costs and escrows up to $5,000 or 4 percent of the current unpaid principal balance of the mortgage being refinanced, whichever is less. Mortgage insurance is not required if the existing mortgage does not require it. Otherwise, mortgage insurance coverage on the new loan must be the same as on the original mortgage.
Borrowers who apply for Relief Refinance Mortgages through their current servicer will not need to be re-underwritten in most cases. When borrowers apply for Relief Refinance Mortgages through lenders other than their current servicer, the lender must re-underwrite the borrower through Loan Prospector, Freddie Mac’s automated underwriting service, the company said.
The expanded LTV ratios are available now when borrowers apply for Relief Refinance Mortgages through their current servicer and will become available Oct. 1 when borrowers apply through any lender affiliated with Freddie Mac.
Freddie Mac also said the resulting impact on prepayments for certain Freddie Mac mortgage participation certificates, may vary, depending on borrower response and other factors.
source: Washington Business Journal
Friday, June 26, 2009
New Company Website URL
New Company Website URL
Posted: 24 Jun 2009 06:08 PM PDT
We’ve introuduced a new URL for the company website, www.MyAllegianceHome.com. While the older URLs (sell4.com, YourHomesSolutionsCompany.com, TheLocalGiant.com) will continue to point to the site, you’re encouraged to use the new URL.
Posted: 24 Jun 2009 06:08 PM PDT
We’ve introuduced a new URL for the company website, www.MyAllegianceHome.com. While the older URLs (sell4.com, YourHomesSolutionsCompany.com, TheLocalGiant.com) will continue to point to the site, you’re encouraged to use the new URL.
Friday, June 5, 2009
Pending Home Sales Increase
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.
Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
Geographical Breakdown
* Northeast: The Pending Home Sales Index shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago.* Midwest: The index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008.* South: The index slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago.* West: The index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008.
NAR President Charles McMillan said there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.
“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger down payment. Buyers who are wondering about their options should contact a REALTOR, who can advise consumers on the housing assistance programs and resources available in a given area.”
Affordable HousingNAR’s Housing Affordability Index is in record territory. The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, which makes it the second-highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.
A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent down payment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small down payments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.
Pending Vs. Existing SalesYun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability. “In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” he said. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”
The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun said.
Existing-home sales for May will be released June 23. The next Pending Home Sales Index will be on July 1.
Source: NAR (06/02/09)
Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”
Geographical Breakdown
* Northeast: The Pending Home Sales Index shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago.* Midwest: The index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008.* South: The index slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago.* West: The index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008.
NAR President Charles McMillan said there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.
“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger down payment. Buyers who are wondering about their options should contact a REALTOR, who can advise consumers on the housing assistance programs and resources available in a given area.”
Affordable HousingNAR’s Housing Affordability Index is in record territory. The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, which makes it the second-highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.
A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent down payment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small down payments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.
Pending Vs. Existing SalesYun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability. “In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” he said. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”
The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun said.
Existing-home sales for May will be released June 23. The next Pending Home Sales Index will be on July 1.
Source: NAR (06/02/09)
Tuesday, June 2, 2009
HUD: Tax Credit Can Be Used on Closing Costs
FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.
Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.
Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.
There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.
In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.
The first-time homebuyer tax credit was enacted last year–and improved upon earlier this year–to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.
Tuesday, May 19, 2009
Brian Block on Fox News
Posted: 18 May 2009 05:14 PM PDT
Brian Block, Branch Vice President for the McLean office, was interviewed for several minutes on Neil Cavuto’s Fox News show last week. Brian discussed the tax rate on high income people and the differences in the rate between Maryland and Virginia. Cavuto’s producers found Brian through his blog. Quite a nice commercial for Brian and RE/MAX Allegiance!
Posted: 18 May 2009 05:14 PM PDT
Brian Block, Branch Vice President for the McLean office, was interviewed for several minutes on Neil Cavuto’s Fox News show last week. Brian discussed the tax rate on high income people and the differences in the rate between Maryland and Virginia. Cavuto’s producers found Brian through his blog. Quite a nice commercial for Brian and RE/MAX Allegiance!
Friday, April 17, 2009
Virginia Remains Competitive
Virginia is one of the most economically resilient states and shows good prospects for recovery, according to the American Legislative Exchange Council.
A new report by the ALEC ranks Virginia No. 4 in economic outlook. Maryland is ranked in the middle of the pack at No. 28.
ALEC’s rankings of the 50 states are based on the balance between policies and performance, determining which states are in better position for an economic recovery.
The state tax burden was found to be a major factor in economic performance.
“The top performing states keep taxes, spending, and regulatory burdens low, while the biggest losers in the book tend to share similar policies of high tax rates, unsustainable spending and regulation,” said Jonathan Williams, director of the Tax and Fiscal Policy Task Force for ALEC.
The report also finds that states should not depend on federal stimulus dollars, but should focus instead on long-term competitiveness by turning away from careless spending.
“States were quick to increase spending and add programs during the good times,” said Bill Howell, ALEC’s national chairman. “We need to make tough choices to live within our means.”
source: Washington Business Journal
A new report by the ALEC ranks Virginia No. 4 in economic outlook. Maryland is ranked in the middle of the pack at No. 28.
ALEC’s rankings of the 50 states are based on the balance between policies and performance, determining which states are in better position for an economic recovery.
The state tax burden was found to be a major factor in economic performance.
“The top performing states keep taxes, spending, and regulatory burdens low, while the biggest losers in the book tend to share similar policies of high tax rates, unsustainable spending and regulation,” said Jonathan Williams, director of the Tax and Fiscal Policy Task Force for ALEC.
The report also finds that states should not depend on federal stimulus dollars, but should focus instead on long-term competitiveness by turning away from careless spending.
“States were quick to increase spending and add programs during the good times,” said Bill Howell, ALEC’s national chairman. “We need to make tough choices to live within our means.”
source: Washington Business Journal
Tuesday, April 7, 2009
Facts About First Time Home Buyers Tax Credit
The American Recovery and Reinvestment Act of 2009 features an
$8,000 tax credit for fi rst-time buyers who purchase a home on or
after January 1, 2009 and before December 1, 2009.
· The temporary credit is only available for purchases made from Jan. 1, 2009 to before Dec. 1, 2009 and is equal to 10% of the cost of the home, up to a max credit of $8,000.
· Buyers claim the credit on their federal tax return to reduce their tax liability. If the credit is more than their total tax liability that year, the buyer will receive a refund check of the balance.
· Only first-time homebuyers can take advantage of the tax credit. A first-time buyer is an individual who has not owned a home in the last three years. For married joint filers, both must meet the test to take the credit on a joint return.
· Eligible properties include anything that will be used as a principle single-family residence - including condos and townhouses.
· There are income guidelines on the credit. Individuals with an adjusted gross income up to $75,000 ($150,000 jointly) are eligible for the tax credit.
· The new tax credit does not have to be repaid if the buyer stays in the home at least three years. If the home is sold before that, the entire amount of the credit is recaptured on the sale.
· Purchased homes under the 2008 $7,500 credit program will be required to repay over a 15 year period.
$8,000 tax credit for fi rst-time buyers who purchase a home on or
after January 1, 2009 and before December 1, 2009.
· The temporary credit is only available for purchases made from Jan. 1, 2009 to before Dec. 1, 2009 and is equal to 10% of the cost of the home, up to a max credit of $8,000.
· Buyers claim the credit on their federal tax return to reduce their tax liability. If the credit is more than their total tax liability that year, the buyer will receive a refund check of the balance.
· Only first-time homebuyers can take advantage of the tax credit. A first-time buyer is an individual who has not owned a home in the last three years. For married joint filers, both must meet the test to take the credit on a joint return.
· Eligible properties include anything that will be used as a principle single-family residence - including condos and townhouses.
· There are income guidelines on the credit. Individuals with an adjusted gross income up to $75,000 ($150,000 jointly) are eligible for the tax credit.
· The new tax credit does not have to be repaid if the buyer stays in the home at least three years. If the home is sold before that, the entire amount of the credit is recaptured on the sale.
· Purchased homes under the 2008 $7,500 credit program will be required to repay over a 15 year period.
Is now the right time to buy a home?
"Be greedy when people are fearful and fearful when people are greedy," says Warren Buffet, one of the richest men on the planet. And with so much fear in the real estate market right now, you may be wondering now that spring is officially here, "Is now the right time to buy a home?"
This month YOU Magazine turns to Barry Habib for an answer to this important question. An expert in the mortgage-backed securities market, Barry Habib is Chairman of Mortgage Success Source and founder of Mortgage Market Guide. Mr. Habib has managed a hedge fund, authored a stock advisory newsletter, owned an insurance agency, and has been an avid real estate investor for many years.
Habib says that one way to determine whether the time may be right for you to consider buying a home is to start looking at the rents in your community. When a full mortgage payment, including principal, interest, taxes and insurance begins to equal or fall lower than rental rates, the market is typically near the bottom, and you should see housing begin to stabilize. In many parts of the country, we have already seen this occur.
According to the National Association of Realtors, median home prices nationally fell 15.5% in February from the previous year. The median price, not the average price, represents the market price for a given period of time where half the homes sold for higher and half sold for less.
First American CoreLogic breaks down the numbers on a state-by-state basis. Looking at some of the worst-hit individual states, January brought the following information from its LoanPerformance HPI numbers:
Nevada: Down 26.85%
California: Down 26.7%
Arizona: Down 21.3%
Rhode Island: Down 19.7%
Florida: Down 19.5%
The LoanPerfomance HPI is based on extensive data of more than 30 years of information on repeat sales transactions of specific homes and time between sales which CoreLogic states offers a more accurate "constant quality" view of pricing trends.
What's interesting about the numbers is that depending on who you are speaking with, the numbers can be dramatically different. For example, the State Association of Realtors reported in January that home prices in California fell 41.5% and in Florida fell 33%, as compared to down 26.7% and 19.5% for California and Florida respectively.
In reviewing the CoreLogic numbers on a state-by-state basis, the median number for January would be in the 3.3 to 3.7% decline range.
The point here is that, while the general media would lead you to believe that the sky is falling, things may not be as bad as they seem. In fact, if you eliminate the six states hit hardest by price declines, you can see that the rest of the country is not nearly in as bad of shape.
In the video, Habib adds that when you compare the value of buying versus renting in your community, which includes ownership, future appreciation, and tax advantages, the choice is clear. It simply makes more sense to own right now than to rent in many communities.
For first-time home buyers, it makes even more sense to buy right now. Not only are home prices lower than they have been in the last five years, mortgage interest rates, at the time of the writing of this article, are near historical lows – this means your parents and your grandparents couldn't have secured a mortgage at a lower rate than you could've in the last month.
To add to this advantage, the government is offering first-time buyers (anyone who hasn't owned a home in the last three years) a temporary tax credit of up to $8,000 that doesn't have to be paid back. What's great about this credit is one can even amend their 2008 tax return to recapture the credit this year, which means they don't have to wait until next April to get their money.
The Best Could Be Yet to ComeLast year, a study was released by the Joint Center for Housing Studies of Harvard University. The study reflects upon the housing bust that began in 2006 and deepened into 2007 and 2008. While much of what has contributed to the housing market's decline has already been widely covered elsewhere, this report also demonstrates what potentially lies in wait.
In the video, Habib discusses how population growth affects real estate demand and values. During the housing market's boom years of 1995 to 2005, household growth was approximately 12.6 million. In the next decade, 2010-2020, it is estimated that household growth will increase 14.4 million.
This increase in households will come from a number of different factors, says Habib, including households resulting from divorce, "echo boomers" becoming adults, and a continued increase in immigration. Any increase in any one of these areas could lead to an increase in demand for housing in the near future.
The Greater the Need, The Higher the PriceThe more you want or need something, the more you are willing to pay for it. It's simple economics. Take housing, for instance. Inventories are up, fewer people are buying today as compared to a few years ago, and prices have declined.
As prices decline, builders build fewer homes. Even though new homes sales were recently reported higher for the month, the number still represents an annualized decline of nearly 1.4 million homes since 2005.
With multiple-year declines in new construction, this simply means that as more people come into the market to buy a home, there will be fewer homes from which to choose, and prices will be forced higher.
So What Now?While this article is a discussion on whether or not now is a good time to buy, it's also important to look back a little. In just the last few months, the number of homes being sold has increased. Compared to February of 2008, existing homes sales this February increased 5.1% and new home sales were up 4.7% across the country. Even more telling is that in the areas where housing has been hardest hit, buyers are coming out in droves. California, up 83%; Florida, up 24%; Las Vegas, up 28%; Miami, up 47%. Buyers are clearly excited and are looking at property – and more home sales are occurring.
No one can time the market perfectly and find the exact bottom. But even if you don't, it's okay. Interest rates are at their lowest in decades, home prices are extremely low, and this combination yields the greatest increase to home affordability in years.
This month YOU Magazine turns to Barry Habib for an answer to this important question. An expert in the mortgage-backed securities market, Barry Habib is Chairman of Mortgage Success Source and founder of Mortgage Market Guide. Mr. Habib has managed a hedge fund, authored a stock advisory newsletter, owned an insurance agency, and has been an avid real estate investor for many years.
Habib says that one way to determine whether the time may be right for you to consider buying a home is to start looking at the rents in your community. When a full mortgage payment, including principal, interest, taxes and insurance begins to equal or fall lower than rental rates, the market is typically near the bottom, and you should see housing begin to stabilize. In many parts of the country, we have already seen this occur.
According to the National Association of Realtors, median home prices nationally fell 15.5% in February from the previous year. The median price, not the average price, represents the market price for a given period of time where half the homes sold for higher and half sold for less.
First American CoreLogic breaks down the numbers on a state-by-state basis. Looking at some of the worst-hit individual states, January brought the following information from its LoanPerformance HPI numbers:
Nevada: Down 26.85%
California: Down 26.7%
Arizona: Down 21.3%
Rhode Island: Down 19.7%
Florida: Down 19.5%
The LoanPerfomance HPI is based on extensive data of more than 30 years of information on repeat sales transactions of specific homes and time between sales which CoreLogic states offers a more accurate "constant quality" view of pricing trends.
What's interesting about the numbers is that depending on who you are speaking with, the numbers can be dramatically different. For example, the State Association of Realtors reported in January that home prices in California fell 41.5% and in Florida fell 33%, as compared to down 26.7% and 19.5% for California and Florida respectively.
In reviewing the CoreLogic numbers on a state-by-state basis, the median number for January would be in the 3.3 to 3.7% decline range.
The point here is that, while the general media would lead you to believe that the sky is falling, things may not be as bad as they seem. In fact, if you eliminate the six states hit hardest by price declines, you can see that the rest of the country is not nearly in as bad of shape.
In the video, Habib adds that when you compare the value of buying versus renting in your community, which includes ownership, future appreciation, and tax advantages, the choice is clear. It simply makes more sense to own right now than to rent in many communities.
For first-time home buyers, it makes even more sense to buy right now. Not only are home prices lower than they have been in the last five years, mortgage interest rates, at the time of the writing of this article, are near historical lows – this means your parents and your grandparents couldn't have secured a mortgage at a lower rate than you could've in the last month.
To add to this advantage, the government is offering first-time buyers (anyone who hasn't owned a home in the last three years) a temporary tax credit of up to $8,000 that doesn't have to be paid back. What's great about this credit is one can even amend their 2008 tax return to recapture the credit this year, which means they don't have to wait until next April to get their money.
The Best Could Be Yet to ComeLast year, a study was released by the Joint Center for Housing Studies of Harvard University. The study reflects upon the housing bust that began in 2006 and deepened into 2007 and 2008. While much of what has contributed to the housing market's decline has already been widely covered elsewhere, this report also demonstrates what potentially lies in wait.
In the video, Habib discusses how population growth affects real estate demand and values. During the housing market's boom years of 1995 to 2005, household growth was approximately 12.6 million. In the next decade, 2010-2020, it is estimated that household growth will increase 14.4 million.
This increase in households will come from a number of different factors, says Habib, including households resulting from divorce, "echo boomers" becoming adults, and a continued increase in immigration. Any increase in any one of these areas could lead to an increase in demand for housing in the near future.
The Greater the Need, The Higher the PriceThe more you want or need something, the more you are willing to pay for it. It's simple economics. Take housing, for instance. Inventories are up, fewer people are buying today as compared to a few years ago, and prices have declined.
As prices decline, builders build fewer homes. Even though new homes sales were recently reported higher for the month, the number still represents an annualized decline of nearly 1.4 million homes since 2005.
With multiple-year declines in new construction, this simply means that as more people come into the market to buy a home, there will be fewer homes from which to choose, and prices will be forced higher.
So What Now?While this article is a discussion on whether or not now is a good time to buy, it's also important to look back a little. In just the last few months, the number of homes being sold has increased. Compared to February of 2008, existing homes sales this February increased 5.1% and new home sales were up 4.7% across the country. Even more telling is that in the areas where housing has been hardest hit, buyers are coming out in droves. California, up 83%; Florida, up 24%; Las Vegas, up 28%; Miami, up 47%. Buyers are clearly excited and are looking at property – and more home sales are occurring.
No one can time the market perfectly and find the exact bottom. But even if you don't, it's okay. Interest rates are at their lowest in decades, home prices are extremely low, and this combination yields the greatest increase to home affordability in years.
Thursday, April 2, 2009
Many in U.S. Plan to Buy Home in Near Future
Posted: 01 Apr 2009 11:42 AM PDT
Nearly one quarter of those surveyed plan to purchase a home in the next five years. Twenty-three percent said they plan to purchase a home in the next five years, 12.8 percent say they plan to buy a home in the next two years and 11 percent plan to purchase a home in two to five years.
Those are just some of the findings of a new survey commissioned by Move Inc., an online real estate resource and operator of Realtor.com.
Despite the economic downturn, 18.1 percent said they plan to buy a home this year to take advantage of the $8,000 tax credit recently passed by Congress.
“It’s not all doom and gloom. We found Americans are optimistic about homeownership despite concerns,” Move, Inc., CEO Steve Berkowitz said in a news release.
More than half of those planning to buy this year are first-time homebuyers, compared with 41 percent in 2008.
Americans also are changing their views of home ownership. The survey found about two-thirds (62.5 percent) considers their home primarily a place to live, as opposed to an investment.
The results of the survey are based on 1,005 interviews conducted March 6-8.
source: Washington Business Journal
Nearly one quarter of those surveyed plan to purchase a home in the next five years. Twenty-three percent said they plan to purchase a home in the next five years, 12.8 percent say they plan to buy a home in the next two years and 11 percent plan to purchase a home in two to five years.
Those are just some of the findings of a new survey commissioned by Move Inc., an online real estate resource and operator of Realtor.com.
Despite the economic downturn, 18.1 percent said they plan to buy a home this year to take advantage of the $8,000 tax credit recently passed by Congress.
“It’s not all doom and gloom. We found Americans are optimistic about homeownership despite concerns,” Move, Inc., CEO Steve Berkowitz said in a news release.
More than half of those planning to buy this year are first-time homebuyers, compared with 41 percent in 2008.
Americans also are changing their views of home ownership. The survey found about two-thirds (62.5 percent) considers their home primarily a place to live, as opposed to an investment.
The results of the survey are based on 1,005 interviews conducted March 6-8.
source: Washington Business Journal
Friday, March 27, 2009
Do-it-yourselfers on a budget!
Check out this great site for great home decorating and gift ideas that won't break the bank. http://www.designspongeonline.com/
Want to go green?
Check out the following website for great eco-friendly tips and information.
http://www.inhabitat.com/
http://www.inhabitat.com/
Wednesday, March 25, 2009
Treasury Unveils Details of New Public-Private Investment Program
Treasury Unveils Details of New Public-Private Investment Program The Treasury Department today issued details on its Public-Private Investment Programs in conjunction with the FDIC and the Federal Reserve Board to buy troubled mortgage loans and mortgage-backed securities from banks. The programs will use $75 billion to $100 billion in Troubled Asset Relief Program funds and capital from private investors to generate $500 billion to purchase troubled assets, with the potential to expand to $1 trillion over time. The PPIP has two components: a “Legacy Loan Program” and a “Legacy Securities Program.” The Legacy Loan Program would encourage private investors to buy loans from banks in the following way:
A bank would assemble a pool of residential mortgage loans it is seeking to divest. For example, assume the mortgages have a face value of $100.
The FDIC would determine the amount of funding it would guarantee, not to exceed a 6-to-1 debt-to-equity ratio.
The pool would be auctioned by the FDIC to private sector bidders. The highest bidder -- in this example, $84 -- would form a Public-Private Investment Fund to purchase the pool.
Of the $84 purchase price, the buyer would receive financing by issuing debt guaranteed by the FDIC of $72, leaving $12 of equity.
Treasury would then provide 50 percent of the equity funding required on a side-by-side basis with the investor. In this example, Treasury and the investor would each invest $6.
The private investor would manage the servicing of the asset pool and the timing of the sale of the pool, with oversight by the FDIC.
The Legacy Securities Program consists of two related parts to draw private capital into the mortgage-backed securities market by providing debt financing from the Federal Reserve under the Term Asset-Backed Securities Loan Facility and through matching private capital.
Eligible assets are expected to include certain non-agency residential mortgage-backed securities that were originally AAA-rated and outstanding commercial mortgage-backed securities and asset-backed securities that are AAA-rated.
Treasury will launch the application process for managers interested in the program.
A fund manager would submit a proposal and is pre-qualified to raise private capital to participate in joint investment programs with Treasury.
The government agrees to provide a one-to-one match for every dollar of private capital that the fund manager raises.
For example, the fund manger raises $100 of private capital. Treasury provides $100 equity co-investment and provides a $100 loan to the Public-Private Investment Fund. Treasury will also consider an additional loan up to $100 to the fund.
The fund manager has $300 (or possibly $400) in total capital with which to purchase the securities.
The fund manager has full discretion in investment decisions, but will predominantly follow a long-term buy-and-hold strategy. The investment fund would be eligible to take advantage of the expanded TALF program for legacy securities when it is launched.
Materials released by Treasury today stated that executive compensation restrictions will not apply to either the Legacy Loan Program or the Legacy Securities Program. Additional details of the programs will need to be fleshed out through rulemakings, which Treasury expects will be commenced soon.
Treasury said that by coupling government financing with private investments, the Public-Private Investment Program maximizes purchasing power; ensures that risks and rewards are shared among taxpayers and private sector participants; and reduces the likelihood that the government will overpay for assets by letting the private sector competition price out the assets. “This approach is superior to the alternatives of either hoping for banks to gradually work these assets off their books or of the government purchasing the assets directly,” Treasury said in its announcement.Read Treasury’s fact sheet.
Other Treasury links of note:Legacy Securities Summary of TermsLegacy Securities FAQsApplication for Private Assets ManagersLegacy Loans Summary of TermsLegacy Loans FAQs
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A bank would assemble a pool of residential mortgage loans it is seeking to divest. For example, assume the mortgages have a face value of $100.
The FDIC would determine the amount of funding it would guarantee, not to exceed a 6-to-1 debt-to-equity ratio.
The pool would be auctioned by the FDIC to private sector bidders. The highest bidder -- in this example, $84 -- would form a Public-Private Investment Fund to purchase the pool.
Of the $84 purchase price, the buyer would receive financing by issuing debt guaranteed by the FDIC of $72, leaving $12 of equity.
Treasury would then provide 50 percent of the equity funding required on a side-by-side basis with the investor. In this example, Treasury and the investor would each invest $6.
The private investor would manage the servicing of the asset pool and the timing of the sale of the pool, with oversight by the FDIC.
The Legacy Securities Program consists of two related parts to draw private capital into the mortgage-backed securities market by providing debt financing from the Federal Reserve under the Term Asset-Backed Securities Loan Facility and through matching private capital.
Eligible assets are expected to include certain non-agency residential mortgage-backed securities that were originally AAA-rated and outstanding commercial mortgage-backed securities and asset-backed securities that are AAA-rated.
Treasury will launch the application process for managers interested in the program.
A fund manager would submit a proposal and is pre-qualified to raise private capital to participate in joint investment programs with Treasury.
The government agrees to provide a one-to-one match for every dollar of private capital that the fund manager raises.
For example, the fund manger raises $100 of private capital. Treasury provides $100 equity co-investment and provides a $100 loan to the Public-Private Investment Fund. Treasury will also consider an additional loan up to $100 to the fund.
The fund manager has $300 (or possibly $400) in total capital with which to purchase the securities.
The fund manager has full discretion in investment decisions, but will predominantly follow a long-term buy-and-hold strategy. The investment fund would be eligible to take advantage of the expanded TALF program for legacy securities when it is launched.
Materials released by Treasury today stated that executive compensation restrictions will not apply to either the Legacy Loan Program or the Legacy Securities Program. Additional details of the programs will need to be fleshed out through rulemakings, which Treasury expects will be commenced soon.
Treasury said that by coupling government financing with private investments, the Public-Private Investment Program maximizes purchasing power; ensures that risks and rewards are shared among taxpayers and private sector participants; and reduces the likelihood that the government will overpay for assets by letting the private sector competition price out the assets. “This approach is superior to the alternatives of either hoping for banks to gradually work these assets off their books or of the government purchasing the assets directly,” Treasury said in its announcement.Read Treasury’s fact sheet.
Other Treasury links of note:Legacy Securities Summary of TermsLegacy Securities FAQsApplication for Private Assets ManagersLegacy Loans Summary of TermsLegacy Loans FAQs
ABA “Breaking News” e-mails are a service of ABA Daily Newsbytes, a daily e-mail bulletin published for the benefit of ABA members. If you are not subscribed to ABA Daily Newsbytes but would like to be, please register on aba.com. For other inquiries, please email ABA Newsbytes Editor, or call 1-800-BANKERS. American Bankers Association, 1120 Conn. Ave NW, Wash. DC 20036
Federal Reserve Surprises Financial Markets
Here we go again, with the talking heads on financial news misinterpreting the impact of the Fed's actions on home loan rates.
Here's the scoop. What the Fed just announced is huge – they have committed to buy another $750B in Mortgage Backed Securities, and $300B in Treasuries.
But what does this mean and why do you care?
Their actions provide a demand for Mortgage Backed Securities, which should help keep a ceiling on home loan rates moving much higher in the foreseeable future. That's good news, for homebuyers who are seeing the bargains out there and understanding that now is the time to act. Good news for those who are ready to refinance too.
But an important distinction – this does not mean rates may move significantly lower. Depending on exactly which coupons the Fed purchases when they go shopping for Mortgage Backed Securities, their actions may keep a lid on rates, but not push them very much lower. And based on what they've been buying since the beginning of this year when they started their purchasing program – that is exactly how it has played out.
Present home loan rates are within inches of historic lows. What is keeping you on the sidelines from acting now to refinance and get some dollars back into your own pocket, where they belong – or moving forward to buy the home of your dreams, while it is still on sale?
Here's the scoop. What the Fed just announced is huge – they have committed to buy another $750B in Mortgage Backed Securities, and $300B in Treasuries.
But what does this mean and why do you care?
Their actions provide a demand for Mortgage Backed Securities, which should help keep a ceiling on home loan rates moving much higher in the foreseeable future. That's good news, for homebuyers who are seeing the bargains out there and understanding that now is the time to act. Good news for those who are ready to refinance too.
But an important distinction – this does not mean rates may move significantly lower. Depending on exactly which coupons the Fed purchases when they go shopping for Mortgage Backed Securities, their actions may keep a lid on rates, but not push them very much lower. And based on what they've been buying since the beginning of this year when they started their purchasing program – that is exactly how it has played out.
Present home loan rates are within inches of historic lows. What is keeping you on the sidelines from acting now to refinance and get some dollars back into your own pocket, where they belong – or moving forward to buy the home of your dreams, while it is still on sale?
Sunday, March 1, 2009
Notable Quotable
Notable Quotable
Posted: 26 Feb 2009 07:33 PM PST
Contacting Congress Couldn’t Be Easier
The National Association of Realtors’ Broker Involvement Program makes it as easy as clicking a couple of buttons for Realtors to contact Congress regarding issues such as the housing stimulus package recently announced by President Obama.Any U.S. Broker/Owner or Manager can sign up for the program at realtoractioncenter.com/realtors/brokers. Then, when an important issue is before Congress, NAR will call and e-mail the Broker/Owner with an alert that a call for action is coming. NAR Calls for Action generally occur five to six times annually.
If the Broker/Owner agrees, NAR will send all the agents in the company an e-mail under the Broker/Owner’s name and with the company logo. It includes an imbedded e-mail message that, if the agent hits submit, will be forwarded to that agent’s senators and congressional representatives.
500,000 e-Mails to CongressA call to action last December in relation to the stimulus package generated more than 500,000 e-mails from Realtors to members of Congress. Messages have also gone out dealing with FHA loan limits and the tax credit for homebuyers.
More than 600 brokers have signed up for the program, says Ed Lawler, a former RE/MAX Broker/Manager from Ft. Collins, Colo., who directs the program for NAR.
“Since this is one of the most important times in our industry, and real estate is at the focus of much of the legislation, the ability to rally the troops is very important,” Lawler says. He hopes to have 2,500 brokers on the list by the end of 2009, who in turn will influence more than 250,000 agents.
Posted: 26 Feb 2009 07:33 PM PST
Contacting Congress Couldn’t Be Easier
The National Association of Realtors’ Broker Involvement Program makes it as easy as clicking a couple of buttons for Realtors to contact Congress regarding issues such as the housing stimulus package recently announced by President Obama.Any U.S. Broker/Owner or Manager can sign up for the program at realtoractioncenter.com/realtors/brokers. Then, when an important issue is before Congress, NAR will call and e-mail the Broker/Owner with an alert that a call for action is coming. NAR Calls for Action generally occur five to six times annually.
If the Broker/Owner agrees, NAR will send all the agents in the company an e-mail under the Broker/Owner’s name and with the company logo. It includes an imbedded e-mail message that, if the agent hits submit, will be forwarded to that agent’s senators and congressional representatives.
500,000 e-Mails to CongressA call to action last December in relation to the stimulus package generated more than 500,000 e-mails from Realtors to members of Congress. Messages have also gone out dealing with FHA loan limits and the tax credit for homebuyers.
More than 600 brokers have signed up for the program, says Ed Lawler, a former RE/MAX Broker/Manager from Ft. Collins, Colo., who directs the program for NAR.
“Since this is one of the most important times in our industry, and real estate is at the focus of much of the legislation, the ability to rally the troops is very important,” Lawler says. He hopes to have 2,500 brokers on the list by the end of 2009, who in turn will influence more than 250,000 agents.
Karen Davis,CDPE "Saving families from foreclosure" RE/MAX Allegiance "Want TOP Results...Call a TOP Agent"! Search the entire mls @ http://www.agentkarendavis.com/ Direct Mobile: 757-535-4884 Direct Office: 757-227-3615 I LOVE REFERRALS!!
New U.VA Study Sheds Light on Foreclosures in States and Metropolitan Areas
New U.Va. Study Sheds Light on Foreclosures in States and Metropolitan Areas
Posted: 27 Feb 2009 04:02 PM PST
Very interesting press release below reference a recent UVA study. The media wants us all to belive that prices have collapsed across the country. The reality is 87 percent of the national declines have been in, you guessed it, Arizona, Nevada, Florida and California. Kudos to Andrew Kantor over at varbuzz.com for posting earlier.
————–
February 25, 2009 — National housing price declines and foreclosures have not been as severe as some analyses have indicated, and they are not as important as financial manipulations in bringing on the global recession, according to a new analysis of foreclosures in 50 states, 35 metropolitan areas and 236 counties by University of Virginia professor William Lucy and graduate student Jeff Herlitz.
Their analysis shows that most foreclosures have been concentrated in California, Florida, Nevada, Arizona and a modest number of metropolitan counties in other states. In fact, they claim that “66 percent of potential housing value losses in 2008 and subsequent years may be in California, with another 21 percent in Florida, Nevada and Arizona, for a total of 87 percent of national declines.”
“California had only 10 percent of the nation’s housing units, but it had 34 percent of foreclosures in 2008,” Lucy and Herlitz reported.
California was vulnerable to foreclosures because the median value of owner-occupied housing in 2007 was 8.3 times the median family income, while the 2007 national average was only 3.2 times higher than median family income (and in 2000, it was lower still at 2.4).
Another vulnerability to foreclosures was seen in the Los Angeles metropolitan area, where more than 20 percent of mortgage-holders in each county were paying at least 50 percent of their income in housing-related costs.
“But even in California, enormous variations existed among jurisdictions, such as in the San Francisco area, where Solano County had 3.69 percent of housing units in foreclosure in November 2008, while only 0.24 percent of housing units were in foreclosure in the City of San Francisco — a 15 to 1 difference,” according to Lucy and Herlitz.
Across the country, the run-up in housing prices from 2000 to the national peak in 2006 has contributed to a 10-months’ supply of houses for sale, nearly six months more than the norm from 1998 through 2005, they concluded. But most of the excess supply is either foreclosed properties for sale in declining areas — which constituted 45 percent of total sales in some months of 2008 — or “opportunity” sale offerings by owners seeking to take profits on the price escalation of previous years, which often happens when the price of existing homes rise appreciably. Only a small portion of the excess supply is from current construction of new houses, they said.
Potential losses in housing values from 2008 foreclosures in all 50 states — if values decline to 2000 levels — were less than one-third of the $350 billion provided to banks and insurance companies to cope with losses in mortgage-backed securities, Lucy and Herlitz estimated.
“Damage to the balance sheets of large banks and AIG occurred not mainly from losses on foreclosed residential mortgages, but because of borrowing short-range to buy long-range derivatives and from selling credit default swaps insuring derivatives backed by mortgage payments,” Lucy and Herlitz said.
“These financial manipulations had high-speed forward gears, but when the housing bubble burst, the banks and AIG discovered they had neglected to create a reverse gear with which they could separate foreclosed properties from some forms of mortgage-backed securities.”
Although there are pockets of substantial declines, claims that overall housing values have tanked nationwide are exaggerated, they said. “In the Washington, D.C. metropolitan area, for example, prices have barely changed in the District of Columbia, Alexandria and Arlington County, and parts of Fairfax County in Virginia. The largest price declines (more than 30 percent in 2008) have been in Prince William County, Va., but even there, the range of price declines in its six zip codes ranged from 49 percent to only 6 percent.”
The number of foreclosures usually were lower in central cities than in some suburban counties, probably due to less demand in those suburbs, according to Lucy and Herlitz.
Part of this loss of demand can be accounted for by shifts in the age distribution in the population. The population segment from age 30 to 44, when the biggest increase in home ownership occurs, has been declining in recent years. Those are prime child-rearing years for families, so demand for houses with four or more bedrooms has declined and led to an excess of large houses in some counties.
The Obama administration’s proposed foreclosure prevention program sets a target of households spending between 31 percent and 38 percent of their income on housing-related expenses. The program will try to prevent foreclosures in residences where Fannie Mae and Freddie Mac have purchased the mortgages by permitting downward adjustments to mortgage rates, to where the value of mortgages is not more than 105 percent of the houses’ value, they said.
“This policy will help homeowners where price declines have been modest, as they have been in most states, most metropolitan areas and most counties,” Lucy and Herlitz said.
This study includes foreclosure, house value and income data for 2007 or 2008 for 50 states, the 35 largest metropolitan areas and 236 counties in the 35 metropolitan areas.
Lucy is Lawrence Lewis Jr. Professor of Urban and Environmental Planning in U.Va.’s School of Architecture. Herlitz is a graduate student in the Department of Urban and Environmental Planning.For information, contact William Lucy at 434-295-4453 or whl@virginia.edu.
Karen Davis,CDPE "Saving families from foreclosure" RE/MAX Allegiance "Want TOP Results...Call a TOP Agent"! Search the entire mls @ http://www.agentkarendavis.com/ Direct Mobile: 757-535-4884 Direct Office: 757-227-3615 I LOVE REFERRALS!!
Posted: 27 Feb 2009 04:02 PM PST
Very interesting press release below reference a recent UVA study. The media wants us all to belive that prices have collapsed across the country. The reality is 87 percent of the national declines have been in, you guessed it, Arizona, Nevada, Florida and California. Kudos to Andrew Kantor over at varbuzz.com for posting earlier.
————–
February 25, 2009 — National housing price declines and foreclosures have not been as severe as some analyses have indicated, and they are not as important as financial manipulations in bringing on the global recession, according to a new analysis of foreclosures in 50 states, 35 metropolitan areas and 236 counties by University of Virginia professor William Lucy and graduate student Jeff Herlitz.
Their analysis shows that most foreclosures have been concentrated in California, Florida, Nevada, Arizona and a modest number of metropolitan counties in other states. In fact, they claim that “66 percent of potential housing value losses in 2008 and subsequent years may be in California, with another 21 percent in Florida, Nevada and Arizona, for a total of 87 percent of national declines.”
“California had only 10 percent of the nation’s housing units, but it had 34 percent of foreclosures in 2008,” Lucy and Herlitz reported.
California was vulnerable to foreclosures because the median value of owner-occupied housing in 2007 was 8.3 times the median family income, while the 2007 national average was only 3.2 times higher than median family income (and in 2000, it was lower still at 2.4).
Another vulnerability to foreclosures was seen in the Los Angeles metropolitan area, where more than 20 percent of mortgage-holders in each county were paying at least 50 percent of their income in housing-related costs.
“But even in California, enormous variations existed among jurisdictions, such as in the San Francisco area, where Solano County had 3.69 percent of housing units in foreclosure in November 2008, while only 0.24 percent of housing units were in foreclosure in the City of San Francisco — a 15 to 1 difference,” according to Lucy and Herlitz.
Across the country, the run-up in housing prices from 2000 to the national peak in 2006 has contributed to a 10-months’ supply of houses for sale, nearly six months more than the norm from 1998 through 2005, they concluded. But most of the excess supply is either foreclosed properties for sale in declining areas — which constituted 45 percent of total sales in some months of 2008 — or “opportunity” sale offerings by owners seeking to take profits on the price escalation of previous years, which often happens when the price of existing homes rise appreciably. Only a small portion of the excess supply is from current construction of new houses, they said.
Potential losses in housing values from 2008 foreclosures in all 50 states — if values decline to 2000 levels — were less than one-third of the $350 billion provided to banks and insurance companies to cope with losses in mortgage-backed securities, Lucy and Herlitz estimated.
“Damage to the balance sheets of large banks and AIG occurred not mainly from losses on foreclosed residential mortgages, but because of borrowing short-range to buy long-range derivatives and from selling credit default swaps insuring derivatives backed by mortgage payments,” Lucy and Herlitz said.
“These financial manipulations had high-speed forward gears, but when the housing bubble burst, the banks and AIG discovered they had neglected to create a reverse gear with which they could separate foreclosed properties from some forms of mortgage-backed securities.”
Although there are pockets of substantial declines, claims that overall housing values have tanked nationwide are exaggerated, they said. “In the Washington, D.C. metropolitan area, for example, prices have barely changed in the District of Columbia, Alexandria and Arlington County, and parts of Fairfax County in Virginia. The largest price declines (more than 30 percent in 2008) have been in Prince William County, Va., but even there, the range of price declines in its six zip codes ranged from 49 percent to only 6 percent.”
The number of foreclosures usually were lower in central cities than in some suburban counties, probably due to less demand in those suburbs, according to Lucy and Herlitz.
Part of this loss of demand can be accounted for by shifts in the age distribution in the population. The population segment from age 30 to 44, when the biggest increase in home ownership occurs, has been declining in recent years. Those are prime child-rearing years for families, so demand for houses with four or more bedrooms has declined and led to an excess of large houses in some counties.
The Obama administration’s proposed foreclosure prevention program sets a target of households spending between 31 percent and 38 percent of their income on housing-related expenses. The program will try to prevent foreclosures in residences where Fannie Mae and Freddie Mac have purchased the mortgages by permitting downward adjustments to mortgage rates, to where the value of mortgages is not more than 105 percent of the houses’ value, they said.
“This policy will help homeowners where price declines have been modest, as they have been in most states, most metropolitan areas and most counties,” Lucy and Herlitz said.
This study includes foreclosure, house value and income data for 2007 or 2008 for 50 states, the 35 largest metropolitan areas and 236 counties in the 35 metropolitan areas.
Lucy is Lawrence Lewis Jr. Professor of Urban and Environmental Planning in U.Va.’s School of Architecture. Herlitz is a graduate student in the Department of Urban and Environmental Planning.For information, contact William Lucy at 434-295-4453 or whl@virginia.edu.
Karen Davis,CDPE "Saving families from foreclosure" RE/MAX Allegiance "Want TOP Results...Call a TOP Agent"! Search the entire mls @ http://www.agentkarendavis.com/ Direct Mobile: 757-535-4884 Direct Office: 757-227-3615 I LOVE REFERRALS!!
Friday, February 27, 2009
One of America's Best Housing Markets
Washington: One of America’s Best Housing Markets
Posted: 25 Feb 2009 06:22 PM PST
As the housing downturn wears on, some cities are stabilizing and somearen’t.
In Las Vegas, the weakest market in the country, prices continue to drop.
“I don’t know what those guys were drinking when they thought all this building made sense. If it does work out soon, then there’s some force out there in the universe that I’m not aware of,” Steve Cesinger, chief financial officer at Dewberry Capital, an Atlanta-based real estate investment firm.
Forbes magazine analyzed monthly declines as well as year-over-year declines in home prices. It also looked at how many months of equity homeowners have lost. With these figures in mind, it determined the 10 best and the 10 worst U.S. housing markets. Here they are::
10 BestNew York CityWashington, DCCharlotte, N.C.Portland, OreSan DiegoDenverBostonDallasLos AngelesSeattle
10 WorstLas VegasPhoenixDetroitMinneapolisSan FranciscoChicagoClevelandAtlantaTampaMiami
Source: Forbes: Matt Woolsey (02/24/2005) via NAR
Posted: 25 Feb 2009 06:22 PM PST
As the housing downturn wears on, some cities are stabilizing and somearen’t.
In Las Vegas, the weakest market in the country, prices continue to drop.
“I don’t know what those guys were drinking when they thought all this building made sense. If it does work out soon, then there’s some force out there in the universe that I’m not aware of,” Steve Cesinger, chief financial officer at Dewberry Capital, an Atlanta-based real estate investment firm.
Forbes magazine analyzed monthly declines as well as year-over-year declines in home prices. It also looked at how many months of equity homeowners have lost. With these figures in mind, it determined the 10 best and the 10 worst U.S. housing markets. Here they are::
10 BestNew York CityWashington, DCCharlotte, N.C.Portland, OreSan DiegoDenverBostonDallasLos AngelesSeattle
10 WorstLas VegasPhoenixDetroitMinneapolisSan FranciscoChicagoClevelandAtlantaTampaMiami
Source: Forbes: Matt Woolsey (02/24/2005) via NAR
Is now the time to become a homeowner?
Is Now the Time to Become a Homeowner?
Home prices have dropped and mortgage rates are the lowest in decades, but is it the best time for you to purchase a home?Lower home prices, due in part to the declining median price of homes, are motivating many potential home buyers to take action. According to the National Association of Realtors, the median home price for an existing home in the United States during December 2008 was $175,400 a decrease of 15.3 percent from $207,000 a year ago. Given the current recession, median home prices are likely to continue to fall in 2009 in most markets. If you're one of the many potential homebuyers planning to take advantage of the plunging home prices, make sure you're financially prepared to acquire a mortgage and ready to take on the responsibilities of home ownership.
Financial PreparationAs you may know, the proverbial bar has risen when it comes to credit and it has become a bit tougher to qualify for a mortgage. Before you set your hopes on a home, make sure you will qualify for a loan by having good credit (typically a score of at least 620) and a good-sized down payment in the bank of at least 10 percent. Obtain a full list of loan qualifications by meeting with a Hometown Mortgage Corp mortgage professional. We will not only help you review your current finances, but also suggest a mortgage program that best fits your situation.Mortgage RatesPresident Obama has promised to lower mortgage rates for Americans in order to increase home affordability. With that, expect to see mortgage rates continue to decline. Low rates, combined with falling home prices, are making homes affordable for those who qualify. Call 888-306-8002, 757-306-8001 today to discuss purchasing qualifications for your area and whether homeownership is right for you.Home buyers aren't the only ones benefiting from these new, low mortgage rates. Many homeowners, who have been financially responsible and have equity in their homes, are taking notice of the falling rates and opting to refinance their homes at a better rate. Contact us online at hometownmortgagecorp.com to learn if your credit score and current home equity is enough to qualify for a refinance without the hefty fees.Plant RootsThe economy is bound to be a bit bumpy the over next few years, make sure you are financially equipped and mentally prepared to see home prices drop even more after your purchase. Though home prices will fluctuate, stay put and plan to live in your home for five or more years so that you can witness your home appreciate in value.
Keeping You InformedHometown Mortgage Corp is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at hometownmortgagecorp.com, or call today at 888-306-8002, 757-306-8001, to obtain custom loan options designed to fit your needs and help you obtain your home goals.
Home prices have dropped and mortgage rates are the lowest in decades, but is it the best time for you to purchase a home?Lower home prices, due in part to the declining median price of homes, are motivating many potential home buyers to take action. According to the National Association of Realtors, the median home price for an existing home in the United States during December 2008 was $175,400 a decrease of 15.3 percent from $207,000 a year ago. Given the current recession, median home prices are likely to continue to fall in 2009 in most markets. If you're one of the many potential homebuyers planning to take advantage of the plunging home prices, make sure you're financially prepared to acquire a mortgage and ready to take on the responsibilities of home ownership.
Financial PreparationAs you may know, the proverbial bar has risen when it comes to credit and it has become a bit tougher to qualify for a mortgage. Before you set your hopes on a home, make sure you will qualify for a loan by having good credit (typically a score of at least 620) and a good-sized down payment in the bank of at least 10 percent. Obtain a full list of loan qualifications by meeting with a Hometown Mortgage Corp mortgage professional. We will not only help you review your current finances, but also suggest a mortgage program that best fits your situation.Mortgage RatesPresident Obama has promised to lower mortgage rates for Americans in order to increase home affordability. With that, expect to see mortgage rates continue to decline. Low rates, combined with falling home prices, are making homes affordable for those who qualify. Call 888-306-8002, 757-306-8001 today to discuss purchasing qualifications for your area and whether homeownership is right for you.Home buyers aren't the only ones benefiting from these new, low mortgage rates. Many homeowners, who have been financially responsible and have equity in their homes, are taking notice of the falling rates and opting to refinance their homes at a better rate. Contact us online at hometownmortgagecorp.com to learn if your credit score and current home equity is enough to qualify for a refinance without the hefty fees.Plant RootsThe economy is bound to be a bit bumpy the over next few years, make sure you are financially equipped and mentally prepared to see home prices drop even more after your purchase. Though home prices will fluctuate, stay put and plan to live in your home for five or more years so that you can witness your home appreciate in value.
Keeping You InformedHometown Mortgage Corp is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at hometownmortgagecorp.com, or call today at 888-306-8002, 757-306-8001, to obtain custom loan options designed to fit your needs and help you obtain your home goals.
Friday, February 20, 2009
Pending Home Sales Show Healthy Gain
Pending home sales increased as more buyers took advantage of improved affordability conditions, according to the National Association of Realtors®. Big gains in the South and Midwest offset modest declines in other regions. The Pending Home Sales Index rose 6.3 percent to 87.7 from an upwardly revised reading of 82.5 in November, and is 2.1 percent higher than December 2007 when it was 85.9. Lawrence Yun, NAR chief economist, said the index shows a modest rebound. “The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month,” he said. “The biggest gains were in areas with the biggest improvements in affordability.”
"Want TOP results...call a TOP agent!"RE/MAX AllegianceRE/MAX Allegiance
505 S. Independence Blvd.Suite 111
Virginia Beach, VA 23452Office: (757) 490-7300 ext: 115Direct Line: 757-535-4884Fax: (757) 213-7889Tollfree: 866- 220-1194Cellular: (757) 535-4884Email:karen.davis@rmxtalk.comInternet Website:http://www.karendavis.sell4.com, http://www.agentkarendavis.com
"Want TOP results...call a TOP agent!"RE/MAX AllegianceRE/MAX Allegiance
505 S. Independence Blvd.Suite 111
Virginia Beach, VA 23452Office: (757) 490-7300 ext: 115Direct Line: 757-535-4884Fax: (757) 213-7889Tollfree: 866- 220-1194Cellular: (757) 535-4884Email:karen.davis@rmxtalk.comInternet Website:http://www.karendavis.sell4.com, http://www.agentkarendavis.com
Tuesday, February 17, 2009
Agent Karen Davis - REMAX Allegiance
Karen Davis Realtor
REALTOR®
Getting the results you need.
As a results-oriented professional, I balance aggressive strategies, market knowledge and negotiating expertise with a high level of integrity to satisfy each and every customer.
As a results-oriented professional, I balance aggressive strategies, market knowledge and negotiating expertise with a high level of integrity to satisfy each and every customer.
A high percentage of my business is referral and repeat business from satisfied customers and clients. My years of proven performance will help produce the results you are looking for.
My commitment to achieving the results that you desire are paramount to me because I want to be your real estate agent for many years to come.
My commitment to achieving the results that you desire are paramount to me because I want to be your real estate agent for many years to come.
Excellence in customer service.
I always provide the best service possible for my clients before, during, and after a transaction closes.
I always provide the best service possible for my clients before, during, and after a transaction closes.
If superior representation with a caring touch is what you expect when buying or selling real estate, you can count on me to be a true real estate professional with exceptional service and dedication to my clients.
"Want TOP results...call a TOP agent!"
RE/MAX AllegianceRE/MAX Allegiance
RE/MAX AllegianceRE/MAX Allegiance
505 S. Independence Blvd.Suite 111
Virginia Beach, VA 23452
Office: (757) 490-7300 ext: 115
Direct Line: 757-535-4884
Fax: (757) 213-7889
Tollfree: 866- 220-1194
Cellular: (757) 535-4884
Email:karen.davis@rmxtalk.com
Internet Website:http://www.karendavis.sell4.com, http://www.agentkarendavis.com
Office: (757) 490-7300 ext: 115
Direct Line: 757-535-4884
Fax: (757) 213-7889
Tollfree: 866- 220-1194
Cellular: (757) 535-4884
Email:karen.davis@rmxtalk.com
Internet Website:http://www.karendavis.sell4.com, http://www.agentkarendavis.com
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