Something to take advatage of...
NEW YORK (Reuters) - Mortgage applications surged by the largest amount on record last week as a new Federal Reserve program pushed interest rates down to their lowest level in more than 3 years, data from an industry group showed on Wednesday.
The U.S. housing market is suffering the worst downturn since the Great Depression as a huge supply of unsold homes, tighter lending standards and record foreclosures push down home prices.
But, the latest weekly data from the Mortgage Bankers Association showed potential borrowers were lured by enticing mortgage rates, which dropped dramatically after the Federal Reserve unveiled a plan last week to buy up to $500 billion of mortgage securities backed by government-sponsored enterprises, Fannie Mae, Freddie Mac, and Ginnie Mae.
Wednesday, December 3, 2008
Wednesday, October 8, 2008
Pending Sales Still Rising
The National Association of Realtors announced this week that pending home sales rose 7.4 percent from July to August, an unexpected piece of positive news for the battered U.S. housing market. NAR said Wednesday its seasonally adjusted index of pending sales for existing homes rose to 93.4 from an upwardly revised July reading of 87. The reading was the highest since June 2007.
Although it is not entirely clear how the financial problems facing the U.S. and world will affect the housing market, the index of pending sales which bottomed out in March of this year, has been steadily increasing. Since prices have not started back up it would seem that we are thinning the inventory, which if the sales trends continue upward, should cause prices to stabalize.
Although it is not entirely clear how the financial problems facing the U.S. and world will affect the housing market, the index of pending sales which bottomed out in March of this year, has been steadily increasing. Since prices have not started back up it would seem that we are thinning the inventory, which if the sales trends continue upward, should cause prices to stabalize.
Tuesday, September 16, 2008
Perspective
Although the recent past has seen real estate treated by some as a short term investment (to the detriment of many), the value of real estate is best seen over the long term. Some insight:
By now just about everyone in America is tired of hearing bad news regarding what is happening to real estate. Soaring foreclosures and lower house prices are in the news every day. However, if you read the article in the News Section regarding the census bureau projections, a different picture appears. In the next 40 years, 52 million housing units will be needed to accommodate growth. That is the equivalent of the United States adding the population of Canada and Mexico over a four decade period of time. At the present time, housing units are being added at a level of approximately one million per year including multi-family units. That would leave us 12 million short if we did not need to rebuild many older housing units, which of course will not be the case.
The point? People will always need a place to live. The current housing crisis could lead to a longer-term housing shortage if building continues to slow. The longer the housing slump, the stronger the recovery. So while the short-term value of your real estate investment may not be performing well, for those who understand that real estate is long-term investment, the future is rosier than ever. And for those with a real long-term vision, falling real estate prices provide a unique buying opportunity.
By now just about everyone in America is tired of hearing bad news regarding what is happening to real estate. Soaring foreclosures and lower house prices are in the news every day. However, if you read the article in the News Section regarding the census bureau projections, a different picture appears. In the next 40 years, 52 million housing units will be needed to accommodate growth. That is the equivalent of the United States adding the population of Canada and Mexico over a four decade period of time. At the present time, housing units are being added at a level of approximately one million per year including multi-family units. That would leave us 12 million short if we did not need to rebuild many older housing units, which of course will not be the case.
The point? People will always need a place to live. The current housing crisis could lead to a longer-term housing shortage if building continues to slow. The longer the housing slump, the stronger the recovery. So while the short-term value of your real estate investment may not be performing well, for those who understand that real estate is long-term investment, the future is rosier than ever. And for those with a real long-term vision, falling real estate prices provide a unique buying opportunity.
Friday, August 8, 2008
Five Big Mistakes in Moving
From the Moving Coach:
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.
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.
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.
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.
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.
www.movingcoach.com
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.
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.
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.
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.
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.
www.movingcoach.com
Monday, July 21, 2008
Barron's Real Estate News
Depending on what your plans are, this article from Barron's offers some useful insights into what the real estate market may be doing. A couple highlights:
1. Sales of existing homes are showing tentative signs of increasing, while the plunge in prices likely is nearing an end.
2. There are signs that the pressure on home prices from foreclosures may wane in the months ahead.
Although the media will tend to simplify such a complicated issue and overly emphasize any negatives, a wise consumer consider a wide variety of sources in making decisions. Read the whole thing.
1. Sales of existing homes are showing tentative signs of increasing, while the plunge in prices likely is nearing an end.
2. There are signs that the pressure on home prices from foreclosures may wane in the months ahead.
Although the media will tend to simplify such a complicated issue and overly emphasize any negatives, a wise consumer consider a wide variety of sources in making decisions. Read the whole thing.
Saturday, July 5, 2008
Advice for Buyers
Money Magazine has put out some advice for buyers in today's market.
Rule 5: "Make sure your agent has your interest at heart" is my promise to you. My business is built on relationships, gaining your trust and keeping it.
Rule 5: "Make sure your agent has your interest at heart" is my promise to you. My business is built on relationships, gaining your trust and keeping it.
Tuesday, June 24, 2008
Online real estate sites often off base
Even though the web sites such as Zillow.com and Cyberhomes.com often offer plenty of disclaimers when it comes to home value estimations, these estimates can be off by large amounts.
So be careful, its tempting to fall in love with a high estimation or get depressed by a low one, but "automated valuation models" can be missing critical information. To get a good home valuation, use a local expert, an experienced agent that knows the market and can make the proper comparisons.
So be careful, its tempting to fall in love with a high estimation or get depressed by a low one, but "automated valuation models" can be missing critical information. To get a good home valuation, use a local expert, an experienced agent that knows the market and can make the proper comparisons.
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