Market Continues Rebound

October 28, 2009

The housing market continues to improve with robust sales and an actual less then expected drop in home prices year over year. I know from personal experience that the first time buyer tax credit is having an impact on the market and title company's, home inspectors and others are swamped. There is a bill to currently being debated about extending the tax credit which will be prorated til the end of 2010. We can hope for the best and continue to put pressure on our representatives hopefully spurring further growth in the market which is what we really need at the moment. If you haven't done so feel free to take a moment and write your representative about the tax credit and if you support it. If you don't that is fine as well (we live in a democracy, so every opinion matters).

Coldwell Banker Home Price Comparison Index Just Released

Just released is the 2009 Coldwell Banker Home Price Comparison Index of more then 310 different housing markets across the US, Canada, and the Caribbean. This year saw the largest differential recorded with about a $2 million gap between the most expensive market and the most affordable. The research is based on a traditional 4 bedroom, 2.5 bath home which averages roughly 2,200 sq.ft. La Jolla CA led the list as the most expensive while Grayling MI was the lease expensive. This chart is a great reference if you are potentially thinking about moving out of your current area and need to have a rough idea of what your money can get you here as opposed to your potential new place. Please remember that the full article is not attached but can be found by clicking on the tab labeled press release after you click on the link below. We are always here to assist with all your moves, whether it be local or out of state. We have made connections with various realtors across the country so think about us when you make that move.

New Home Sales Rise for the 5th Straight Month!

As mentioned sales continue to be up and new home sales are back in full swing. Inventory is continuing to be pushed lower by buyer demand. New home inventory as at the lowest levels since 1992. As we approach the deadline for the tax credit (Nov. 30th) inventory will continue to dwindle. Many realtors including myself feel the tax credit will be extended into the spring however we are uncertain as to how long or even how much it will be. Homes that are moving seem to also be priced in the lower price ranges of $450k and below. I have included the new home sales article below.

Housing Meltdown, Then and Now

Friday means it's time to look at interest rates and where they stand. Today it looks as if rates are around 5.17% for a 30 year fixed. As I was looking at rates I came across a pretty good article which talks about the financial/housing meltdown and what got us into the mess we were in. It's a pretty good and quick article to read and again hindsight is always 20/20. Take a look and make sure you're where you need to be in understanding the current market. As things pick back up, and in some places at a frantic pace do a little research and have a gut check, it could go a long way! Housing Meltdown Then and Now.

Quick Fixes Can Save Hundreds

Happy belated Labor Day everyone. Hopefully many of you enjoyed your three or four day weekend. I do hope none of you had to work on Labor Day unless absolutely necessary. I did put a little time in showing some properties but I am not complaining as long as the market is good. As we end summertime and now move into fall and soon into winter I wanted to continue the posts from about a week ago with ways you can save money around your home. Again these little things are quick fixes you can most likely complete yourself so take a few minutes to look at your home. It could save you hundreds of dollars as we approach the wind and cold of winter.

Time is Ticking for the First Time Homebuyer $8,000 Tax Credit

Today is the final day of August and I can't believe where the summer has gone. Seriously it seems like it was just April not too long ago. The holidays will be here and the holiday sales before we know it. One other thing that will be here before we know it is the end of the first time homebuyer tax credit. This tax credit although there has been talk about it being extended is set to expire on December 1, 2009 which means you will have to have closed or settled on your home by November 30th. Keep in mind the tax credit is an $8,000 credit that you can use on your 2009 taxes or retroactively on your 2008 taxes by completing the proper IRS paperwork. Personally I think the credit is going to be extended once congress gets back in session however it could be like the cash for clunkers deal where they simply don't have enough money to continue the program which is a real possibility. The credit seems to be working as business has picked up pretty rapidly during the past three or four months and inventory is flying off the shelves. Don't wait until the last minute though. A typical closing takes 45 days which means you have to be under contract by mid-October. This means you most likely need to get in gear and start looking now if you are going to use it. I have attached the article link below. Time is Running Out for Your $8,000 Tax Credit!

Energy Star & Tax Credits

A few posts ago on my blog I talked about how to save money in your home by completing some simple fixes, all of which you could do yourself. However, I also wanted to share another way to save you additional money. As you may or may not know appliances are major energy guzzlers in your home. Outdated refrigerators, dishwashers, hot water heaters, washing machines, dryers etc. can add hundreds of dollars to your energy bills during any given year. Therefore if you have thought about replacing any of these items you may want to take a look at the attached link. The site contains information about "Energy Star" appliances which will definitely save you money but could also give you a little bit of credit on your taxes. Yes that's right the government is offering tax credit if you purchase a new energy star appliance up through 2010. It may not seem like a lot but in todays economy every little bit helps. Be sure to check that it is an energy star appliance before you purchase and keep your receipt for proof of purchase. You could be a winner in two ways by cutting your overall energy cost and your year end taxes! You can't get much better then that.

Energy Star Appliances & Tax Credits!

Do Credit Card Companies Have Us Over a Barrel?

Do the credit card companies have us over a barrel? Guess it depends on who you ask but I would more then likely say they do. Personally I just received a notice from one of my companies "Chase", who stated that my current rate was going to double by the next two months. I had a certain amount of time to respond to the notice to keep the rate the same however if I did state to them that I wanted to same rate I could keep it. There was however one stipulation..... that they would have to cancel my account. Now does this make sense? This isn't the only instance of credit card procedures I have heard of that sound so asinine. Some companies are closing credit all together, reducing lines, hiking rate, imposing additional fees if late etc. etc. Some in congress are trying to battle these practices however I'm so confused on the whole matter due to the fact that these banks who are hiking our rates are the ones who just got bailout money from the government. It certainly seems like something should be done. Below is the article about credit card companies and the new rules.
http://www.cnbc.com/id/30345999

Appraisals to Change

I just ran across an article that may be of importance to all you future homebuyers. As of May 1st, 2009 there will be new appraisal rules implemented by Fannie Mae and Freddie Mac. Due to oversight by the governing authorities mortgages brokers will no longer be able to select their own appraisers. Buyers will also have to pay for the appraisals upfront and by credit, debit or a transfer of funds. Many times during the home buying process you were able to pay for the appraisal at the time of closing as it would be added on to your closing statement. As things change due to all the government influence it is important to keep up with these things so you aren't caught off guard by things. There are a few ways to get around this new rule however and that is by going FHA rather then conventional. I have posted the article below so you can read up.
http://realtytimes.com/rtpages/20090420_washingtonreport.htm

Time for a New Roof?

Are you a current homeowner and want to increase the value of your home? Of course you do. What is one way you can do it? Well an article I came across today talks about a big buying bonus for purchasers and that buying bonus is a new roof. How do you know if you need a new roof other then if you have water coming through or can see daylight? The article talks about some of the benefits to replacing your roof even if it doesn't necessarily need replaced. Have you ever heard of keeping up with the Jones'?
http://realtytimes.com/rtpages/20090416_roofing.htm

Face to Face Service Centers

April 7, 2009
It looks as if some banks are starting to get it......at least part of it. In the article below Chase who is a major servicer of loans looks to be trying to reach out to their clients in terms of servicing their mortgage. We as realtors for at least the past year we have been hearing that people who have a mortgage have been unable to get in contact with their banks to work out the details of their loans, and when they did the bank was unwilling to change the loan terms. So essentially it was two problems you had to deal with when trying to redo your loan. Now Chase has decided they are going to try to come to you by opening loan centers in some of their banks located around the country. I think this is a good idea however you are probably still going to have trouble changing the loan. Access is only one part of the problem but I can say they are trying. I will be interested to see how things continue to progress over the coming months. Take a look below for futher information. Chase to Open Loan Service Centers!
http://money.cnn.com/2009/04/02/news/economy/chase_centers/index.htm?postversion=2009040216

Interest Rates at All Time Record Lows

April 3, 2009
Well rates for 30 year fixed mortgages continue to fall at alarming rates and are now at all time record levels. I have posted a great article below and you can always check out the current rates at www.bankrate.com which is a great site. As you know it's Friday so I like to take a look at interest rates and as stated they just continue to amaze me. Please keep in mind though that now unlike in the past there is significant documentation and credit checks etc. that need to be completed to lock in one of these rates but they are out there and for people who have good credit, bank statements etc. it's a terrific time. If you read in the article the lenders are stating that it is the perfect storm for buyers with low rates and government incentives coming into play. It's also a good time for current owners who again want to refinance. Until next week...... Have a great weekend.
http://www.bankrate.com/finance/mortgages/mortgage-rates-drop-to-record-low.aspx

Rates as Low as Two Percent!

April 2, 2009
I came across an article today that made my mouth almost hit the floor. The link is pasted below, but it stated that some people may see interest rates as low at 2%. I couldn't believe it when I saw it but then I began to read further that it is for people who qualify for the "Making Home Affordable" (MHA) initiative under the new housing stimulus package. I then thought well hey I have a home do I qualify for that, so I looked up another link that shows if you qualify or not. I have not yet completed everything to see if I do qualify but apparently 3 to 4 million people will and it's possible that you or I could be one of them. No matter whether we qualify or not it looks like there is some serious help out there for people who really do need it. I also know that these types of programs cause others to hit the roof as they are on time with their mortgages and wonder why they can't get help too. At this point with the economic situation, giving help to some is going to eventually help everyone. I know that there are critics out there as I have heard and talked with many of them but we need to start somewhere. I'm sure there are other things to come but this looks like a promising initiative for some of the home owners who need help. Click on the following links to read the article and then see if you qualify.
http://realtytimes.com/rtpages/20090402_ustreasury.htm

http://www.makinghomeaffordable.gov/

Housing Affordability at Record Lows!

April 1, 2009
It's April Fool's Day! Today is a day of trickery, practical jokes and fun from coworkers and friends and I have done my fair share over the years, so be cautious of weird request or suggestions from those closest to you today. One thing that doesn't seem like a joke is the uptick in the recent activity. I can tell you honestly that my business has picked up quite a bit in the last month or so and although it is spring time here in the Northern VA/DC area it is still a little bit busier than in years past. I believe the media and everyone else is beginning to recognize this fact as well as there are starting to be some positive reports. Now while we all aren't jumping out of our seats there has been a dramatic change from the doom and gloom news to some positive stories. One of these stories I have posted below which just came out this morning. It shows that new records have been set in housing affordability and that business in February concerning resales statistics had terrific gains. While some of this is regional, I do believe from talking with my clients and other realtors that some of the stimulus incentives, records low rates, and various other factors such as the affordability are starting to change the dynamics of the market. I'll continue to keep you updated but this is all moving in the right direction for home sellers and may mean that things are bottoming out which shows that buyers might be getting the best deals that they are going to get for a while.
http://www.realtor.org/press_room/news_releases/2009/04/phs_gain

Energy Smart

March 30, 2009
I am happy to announce that I am now an ESRES! I have completed my classes and am ready to offer advice and assist you in any way that I can. You are probably asking what this stands for right? Well it stands for Energy Smart Real Estate Specialist. I have tried to take part in a new path for realtors about being energy smart or "Green". Whatever you want to call it I am trying to do my part to educate myself, buyers and current homeowners about what they can do to save money on their homes by cutting their heating/cooling costs, electric bills and overall help conserve their resources. I have been doing this myself for a number of years now, most notably by the type of car I drive. Oh I have taken the jokes for my Prius Hybrid but it helps save gas and trust me as much as I drive a year it has been worth it. I have also done many of the things listed on the attached link such as unplugging lamps, televisions, fans etc. that aren't used on a daily basis and it has helped cut my utility bills by at least 25%. There are many simple things you can do in your home to cut cost, all that may take only a few minutes. It could be worth hundreds or may even thousands of dollars to you. These classes help me understand more fully about an energy audit, what a HERS rating is, Energy Star Appliances, usefulness of solar tubes and much more. These classes will help me provide this useful information when I am assisting buyers and seller with their homes. The movement is towards green and I am happy I can be one of the first in the real estate market to join in the effort.
http://www1.eere.energy.gov/consumer/tips/

Existing Home Sales Rise in Feb

March 23, 2009
I have noticed that traffic has been down on my blog lately since I changed the format so I have decided I am going to post in both areas to save folks from clicking all over the internet to find things. The above link will still take you to my blog site but I will post here as well everyday for ease of use. So today we have great news out on the housing front which is pushing the stock market higher. Existing home sales are finally up and not but just a little, and not just in one area. I mentioned a few weeks ago that our office sales for the month of February were off the board well this must have spilled across the country as all four areas were up. I am seeing very positive things on the horizon. This months and the last few weeks specifically have seen interest rates falling to below five percent. It has also seen an easing in the lending markets allowing money to flow back to the consumers. Homebuilding is starting to pick up again and if you remember what I said back in December when you start to see this happen it is a sign that things will begin to move again. This means builders are getting money to start and to continue funding projects and that their inventories have reached a lower level where they have to build. It is great that they stopped for a little while to allow some of the current inventory to be digested by the market but it's time. The only issue I have seen with the new report which is linked below is that we still have a 9 month supply of homes. This is still high as a usual stable market has about 4.5 months supply.
Look for information this week in coming posts about Title Insurance and the new "Green" initiative in the real estate market. Todays post however is: Existing Home Sales Rise in February
http://www.realtor.org/press_room/news_releases/2009/03/february_existing_home_sales

Is the Recession Going to End?

Oh what to do in a troubled economy. I keep looking for silver linings all over the place and they are there but you really have to look for them as day in and day out it's bad news after bad news. It does get kind of depressing I know, but I will tell you that you have to persist. Nobody becomes stronger by being complacent in life. Therefore, I continue on and bring you today GOOD NEWS! A recent article and interview by our infamous, whether you like him or not, Fed Cheif Bernanke says the economy is going to stabilize towards the end of the year. Exciting news right? Well it is, but I'm sure there are going to be a lot of people struggling between now and then. But at least we are beginning to hear some positive news which I will take any day of the week. Below is the attached article.

What do you want to hear or read about? Ideas and thoughts are always appreciated.

http://www.usatoday.com/money/economy/fed/2009-03-15-bernanke_N.htm

http://www.JoeReef.com

Friday Interest Rates

It's Friday and time for a check on the interest rates. Rates are down this week on a 30 year fixed to 5.12%. Moving in the right direction. It looks as if some of the banking news is starting to turn positive with some really good news out of Bank of America and Citigroup this week. This should help turn the tide a little bit so look for rates around 5% unless something crazy happens in the global market.

Have a great weekend and look for a new exciting post on Monday!

http://www.bankrate.com/gookeyword/rate/mtg_home.asp

http://www.JoeReef.com

Best Places to Buy Real Estate in 2009!

I was sent an article today that continues to give me hope and provides needed positive energy in this crazy real estate market. It is a new list out by Forbes that ranks the top 10 areas of the world that are expected to see investments in real estate during 2009. Can you guess who is on top? Well let's just say it made me happy! Enjoy!

http://www.forbes.com/2009/01/21/investment-obama-realestate-forbeslife-cx_mw_0121realestate.html?partner=email

http://www.JoeReef.com

No Job? Can't Refi? How Do You Talk to Your Bank?

You have been laid off or let go from your job and your in a quandary over what to do. You have a mortgage that you need to pay and you don't want to get behind. Instead of wiping out your savings at first why not try to talk to the bank and see what they can do. For many people this seems like a crazy thought. Why would I talk to my bank? What are they going to do for me? If I tell them then things may get worse. This might be what you think but banks for all the bad press they have received during the past few months are trying to work with people. There is always a second job that you can try for but we all know with the current economy this can be trying and exhausting. There are a few things you can do when you call the bank:

• Find out who services the loan by contacting the bank or lender you pay monthly
  If the servicer cannot help after using the following steps, find out who actually owns the loan and deal directly with them.
  
• Call the servicer or lender immediately and speak to someone in the loss mitigation department as soon as possible about refinancing
  
• Write what's called a forbearance letter or postponement of payment letter to either the servicer or lender telling them of your situation
  
• Be prepared to provide documentation of unemployment or income loss of you or your spouse
  
• Keep accurate copies of anything you send to a servicer or lender

I have attached the following article for more information but one thing to keep in mind is don't get discouraged. You are not alone in this. Exhaust all possibilities before making any rash decisions.

http://www.cnbc.com/id/29595747

http://www.JoeReef.com

FYI~ FHA May Require a Second Appraisal

So you are in the home stretch of your home purchase and all of a sudden you hit a snag. Things were moving along smoothly until two days before you are set to close on your home you get a call from your lender who says you have to have a second appraisal done on the property and it's going to cost you an additional $350 or more. Would you do it? Well how badly do you want the home? If you don't get the appraisal then you deal isn't going to happen and you will have spent the money up to this point for nothing.

This is happening to a lot of buyers right now due mainly to new FHA guidelines that were introduced last December but that took hold beginning in January. Lenders can't do much about this either as I personally found out from experience a little while ago. There are however a few things you can try. Depending on the situation you can see if the lending institution will pick up part of the expense. You can also see if the seller depending on how badly everybody wants to make the transaction happen, if they would be willing to pick up some of the expense. Your realtor is another option as well and so are you the client. What I would recommend to all buyers however is to discuss with your realtor the status of your appraisal contingency.

What is an appraisal contingency you ask? This is when your first appraisal is met and the lender says the home meets or exceeds the value you are paying and that things are good to go. At this point you will usually release the contingency when you find our your valuation is at or above, but recently due to this experience I have been letting this contingency ride through up until settlement unless the seller asks me to release it. This helps protect you the buyer and gives you an out if the second appraisal comes in lower (at least a little negotiating room). What this second appraisal has done is made buyers who are already tight on money cough up more money at settlement to pay for the appraisal. There are also some institutions that are notorious for second appraisals so keep an open line of communication with your realtor and lender and inquire about this at the time of your application.

I have posted the link below for further reading.

http://www.fhaloanpros.com/2009/01/more-fha-loans-will-require-two-appraisals-in-the-new-year/

http://www.JoeReef.com

Daylight Savings Time. Why?

Have you ever wondered why we change the clocks? Why we just can't leave time the way it is? Well I always wonder this as a realtor mostly because my clients look at homes on the weekends but also after work. It makes my job a whole lot easier to be able to have an extra couple hours to show homes especially during the winter and early spring. Well there are plenty of misconceptions about why we switch back and forth, some say its for energy which is mostly true, and some say it's so kids can get on the bus in the morning or that farmers can work later in the fields etc. during the growing season all good points but why do we actually do it? As you know or maybe have forgotten last year Congress enacted a law that changed the dates for Daylight Savings Time so here we are this weekend getting ready to turn our clocks ahead again. I know we will all be cranky as we get up on Sunday morning having one less hour of sleep but remember we get that extra hour of light at the end of the day! I have posted an article below for further reading. Also since it is Friday be sure to click on the updated rates from Bankrate.com.

http://www.webexhibits.org/daylightsaving/c.html

http://www.bankrate.com

http://www.JoeReef.com

How a Renter Can Provide Needed Income

I know a lot of people are in difficult positions right now. I see it everyday with homes going into foreclosure, people doing shortsales, picking up extra jobs or doing whatever they have to do to make ends meet and hold on to what they have. We all know that things are at some point bound to turn around but we just don't know when. As I have said we all need to have patience during these times, but we also all know that we can cut back on things like cable, movies, dinners out etc. We each can personally make a difference but what if you are so stretched that you just can't make it? I think we all feel as if we live paycheck to paycheck and it isn't a good feeling. So, what if you have space in your home, you know that extra space that isn't being used? Would you be willing to take in a renter? It's probably not for everyone and only you know if you can handle someone living in your home besides you. But it could provide you with some extra cash flow that helps get you through some tough times.

Now I caution there are risks involved such as security (people should be properly screened) especially if you have children. You have a loss of privacy so no running around the house (well you know what I mean). What about food? Who does the chores etc.? These are all questions to be answered but you have to decided is my home worth keeping, and can I do this for the short term until things improve? Who knows you may make some new friends out of the experience but it is all up to you. Sometimes we have to do things we don't always like but they are all experiences that I believe make us stronger and better. I have attached the article below which discusses taking on a renter so take some time to read it and see if it could work for you.

http://www.washingtonpost.com/wp-dyn/content/article/2009/02/27/AR2009022701292.html

http://www.JoeReef.com

New Mortgage Help Guidelines Just Released

March 4, 2009
Out this morning is the new Mortgage Help Guidelines. Do you qualify? It looks as if the plan will help millions of Americans and there will be more information coming out from HUD in the next few hours. What we know for now is that lenders will be able to look at your debt to income ratio and could revert your payments back to 31% of your income. However if you carry high debt on credit cards, car payments etc. you may be required to look at debt counseling. This plan will not help everyone and people should keep that in mind but we are headed in the right direction. I will have a further post tomorrow. But for now check out the article below: Mortgage Help: Do you Qualify?
http://money.cnn.com/2009/02/18/real_estate/Obama_foreclosure_plan/index.htm?postversion=2009021911

http://www.JoeReef.com