Monday, August 25, 2008

Did we miss the bottom?

There are lots of indicators that the bottom has hit in real estate sales. Read below to learn more about the indicators that the real estate market is definately improving.

Existing-Home Sales Hit 5-Month High

Existing-home sales rose in July to the highest level in five months, although they continue to be well below the numbers from last year at this time, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 3.1 percent in July to a seasonally adjusted annual rate of 5 million units from a downwardly revised level of 4.85 million in June. Sales were 13.2 percent lower than the 5.76 million-unit pace in July 2007.

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the up-and-down pattern may break soon.

“We hope the new tools in the hands of home buyers from the recently enacted housing stimulus package will spark a sustained sales uptrend in the months ahead,” he said. “Buyers who’ve been on the sidelines should take a closer look at what’s available to them now in terms of financing and incentives. Given some of the inventory on the market, we also strongly encourage buyers to get a professional home inspection.”

Median Price Down 7.1% from Year Ago

The national median existing-home price for all housing types was $212,400 in July, down 7.1 percent from a year ago when the median was $228,600.

Lawrence Yun, NAR chief economist, said home prices in some regions could soon increase.

“Sales have picked up significantly in several Florida and California markets. Home prices generally follow sales trends after a few months of lag time,” he said. “Still, inventory remains high in many parts of the country and will require time to fully absorb. We expect more balanced conditions in 2009 and will eventually return to normal long-term appreciation patterns.”

Analysis of NAR price data since 1968 shows home prices normally rise 1 to 2 percentage points above the overall rate of inflation, building wealth over the typical period of homeownership.

11-Month Supply of Homes for Sale

Total housing inventory at the end of July rose 3.9 percent to 4.67 million existing homes available for sale, which represents an 11.2.-month supply at the current sales pace, up from a 11.1-month supply in June. The rise in supply results from a sharp increase in condo inventory; the single family supply declined.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 6.43 percent in July from 6.32 percent in June; the rate was 6.70 percent in July 2007.

Single-family home sales rose 3.1 percent to a seasonally adjusted annual rate of 4.39 million in July from 4.26 million in June, but are 12.4 percent below the 5.01 million-unit level a year ago. The median existing single-family home price was $210,900 in July, down 7.7 percent from July 2007.

Existing condominium and co-op sales increased 3.4 percent to a seasonally adjusted annual rate of 610,000 units in July from 590,000 in June, but are 18.6 percent below the 749,000-unit pace in July 2007. The median existing condo price4 was $223,400 in July, which is 2.7 percent below a year ago.

In Detail: Regional Sales, Prices

West. Regionally, existing-home sales in the West jumped 9.7 percent in July to a level of 1.13 million and are 0.9 percent higher than July 2007. The median price in the West was $273,200, down 22.2 percent from a year ago.

Northeast. In the Northeast, existing-home sales rose 5.9 percent to an annual pace of 900,000 in July, but are 11.8 percent below a year ago. The median price in the Northeast was $278,700, which is 4.9 percent lower than July 2007.

Midwest. Existing-home sales in the Midwest increased 0.9 percent to an annual rate of 1.12 million in July, but are 17.0 percent lower than July 2007. The median price in the Midwest was $175,400, up 1.0 percent from a year ago.

South. In the South, existing-home sales slipped 0.5 percent to an annual pace of 1.85 million in July, and are 18.1 percent below a year ago. The median price in the South was $179,300, down 3.5 percent from June 2007.

— NAR

Thursday, August 21, 2008

You Have Options To Foreclosure

With all the doom and gloom in the news it is no wonder that homeowners who are struggling to keep their home, feel there is no help. Many people are faced with higher mortgage payments, inflation and or course who can forget the crazy price of gas. All of these things are putting a real strain on many families. When the strain becomes too much many simply walk away from their home and let it get foreclosed on. This is so sad because there are other options available to consider. Maybe you can renegotiate the loan with the current lender, get a forbearance loan, bankruptcy, a deed in lieu, or sell the home short. Of course there are pros and cons to all of the options but at least there are options. If you know of someone who is struggling and needs some help let them know they have options. If you would like more information regarding any of the options please give me a call to arrange a time to discuss.

Monday, August 18, 2008

Buyers Hurry to Beat New Law

There is a new law that is going to take effect and it is not going to help buyers. Many buyers have been sitting on the fence and waiting for various things to occer before making the move to purchase a home. With the new law going into effect on Ocotber first I encourage you not to wait. See below... If you need assistance in purchasing a property call me. I am here to help.

New Mortgage Law Has Buyers Scrambling

Housing industry observers expect that prospective buyers will scramble to take advantage of seller-funded down-payment assistance before a federal ban on such programs takes effect on Oct. 1.

The federal housing bill signed into law in July sews up a loophole that allows nonprofit organizations to gift mortgage down payments, and industry experts believe markets that have relied heavily on the programs could see new-home sales cut by as much as half.

Seller-funded downpayment assistance has served as a surrogate for subprime loans in some ways and has helped builders put first-time and low-income buyers into new homes.

"We will eventually go back to the mind-set of a society where you have to have 3 percent up-front to buy a home," says Phoenix real estate analyst Jim Belfiore.

Source: Poughkeepsie Journal (N.Y.) (08/18/08)

© Copyright 2008 Information Inc.

Thursday, August 14, 2008

Properties for UNDER $100,000

It is hard to believe that school is starting again but it is. As the summer activity winds down, now may be the time to consider buying an investment property. I have a list of El Cajon properties that are listed for UNDER $100,000. Call or email me and I will send you a copy. If you would like me search other areas or if you need more information just give me a call. Also, if you know of anyone thinking of buying or selling, please feel free to forward my contact information. Call me, I am here to help you achieve your real estate goals.

Monday, August 11, 2008

5 Moving Mistakes

5 Big Mistakes Consumers Make When Moving

By Fayette Wester

RISMEDIA, August 11, 2008-Moving may seem like an overwhelming experience for some home buyers, so we’ve compiled a list of “don’ts” to help consumers gear up for a smooth move.

1. Getting a quote over the phone or Internet: A big mistake that consumers make, when planning their moves, is obtaining a quote over the phone or the Internet. Any quote obtained in this manner is a non-binding quote. The only way to obtain a guaranteed or binding quote is to have a visual survey of your household goods by a reputable mover. If you choose to accept a quote over the phone or Internet you are setting yourself up for a nasty scenario when the mover shows up at your new home and demands more money.

2. Waiting too long to line up a mover: Allowing time for a visual survey, receiving a written and binding quote, and reserving a truck for your move takes a lead time of 4-6 weeks. Although moves can be arranged in a shorter period of time, many consumers find that their choices are limited by availability, especially in the busy summer months. In our current real estate market many homes are taking longer to sell, but once sold are closing very quickly. The time to obtain estimates for your move is before your home sells so that you are prepared when it does.

3. Misrepresenting what you are moving: It is very important to show the surveyor or estimator everything you are planning to move. If you forget to show items in a basement, garage, attic, or off-site storage unit and then add those items at time of pick-up, your estimate will no longer be binding. In the same vein, if you commit to packing your own items but don’t have time to finish, the van line will pack your items and charge you for the service. If you are uncertain of whether you will be taking something, or are not sure if you will have time to pack everything, ask the surveyor to put the items or service in the estimate. If you decide not to take something, or do not require the packing, the cost will be adjusted downward.

4. Paying a deposit up front: Reputable movers do not ask for payment up front to reserve trucks or dates. This is a classic red flag in moving. A reputable mover will expect payment upon delivery.

5. Finding a mover based upon price rather than reputation and service: If a mover gives you a price that is significantly lower than other movers it is likely that you are being low-balled. If a surveyor has underestimated your weight in order to give you a lower price you may find, on moving day, that the moving truck does not have enough room for your shipment. This is called an overflow. An overflow means that your items will not all travel together, will not all arrive at the same time, and will generally just cause you a big hassle. Another way to lower cost is to compromise service. Look for a competitive bid from a professional mover who is certified and reputable. Although price is an important factor, don’t base your decision on price alone.

The Move Advocate was designed to help you and your clients navigate your way to a smoother move. Call 800-617-1918 to discuss your moving needs with a professional moving coach, and to obtain multiple binding quotes at no cost and with no obligation.

For more information, visit www.moveadvocate.com.

Tuesday, August 5, 2008

Foreclosure Scams

The Daily Real Estate News reports that foreclosure scams are on the rise. It never ceases to amaze me the scum bags that come out of the woodwork to take advatage of people in desperate situations. But unfortunately this is not the first time it has happened and it will not be the last. It seems that every time there is some sort of disaster, the con artists are never far behind.

If you know of anyone who is at risk of loosing their home to foreclosure help them realize that if it sounds too good to be true...it probably is. Help them to find a reputable real estate agent to discuss their options. Many times people who are faced with foreclosure are embarrassed about the situation. This leads them to avoid talking to the people who can really help, instead they look for the solution in all the wrong places. Don't let your friends and neighbors fall victim to devastating scams.


Daily Real Estate News | August 5, 2008
Foreclosure Rescue Scams on the Rise

Foreclosure rescue scams, in which con artists prey on struggling home owners, are becoming more of a problem, according to the Federal Trade Commission.

The FTC has already filed three major foreclosure rescue cases this year, compared with zero a year ago; and one case involves thousands of victims and property worth millions of dollars, according to FTC regional director Brad Elbein, who heads the agency's foreclosure rescue campaign.

Some scammers promise to negotiate with a lender for a fee, then just take the money and run. In other cases, home owners pay rent to live in the house but sign title to a rescue company that is supposed to pay the mortgage. Instead, the company sells the house, taking whatever equity is left.

At least 14 states have passed new laws this year to protect home owners, including a new one in Idaho that requires a written contract with a rescue company and gives homeowners five days to change their minds.

"The scope is probably going to be potentially as large as the mortgage fraud problem itself," says Sharon Ormsby, the FBI's chief of financial crimes.

Source: USA Today, Donna Leinwand (08/04/08)

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