October 29, 2010
Thanks in part to NAR’s efforts, Congress has approved a one year extension for the National Flood Insurance Program until September 30, 2011.
Real Trends reports that borrowers with credit scores below 620 are unlikely to get a 30 year fixed conventional mortgage – even with a down payment of 15-25%. Nearly 30% of Americans has a credit score this low. 47% of Americans have scores of 720 or above. For each 20 point credit score increase, the average low APR declines 0.12%.
Inman News published bits and pieces from a study done by Harvard. “Blame for the financial crisis lies with financial institutions that established the underwriting standards, agencies that rated securities backed by non-prime loans, firms that wrote credit default swaps against them, and the regulators that were entrusted with policing the system.” “It was they – not mortgage brokers, mortgage bankers, or borrowers … that determined the products that could be offered, the underwriting standards that would be tolerated, the requirements for capital reserves against losses, and the incentive structure for mortgage brokers … that rewarded volume more than long-term loan performance. In hindsight, there were significant regulatory and market failures.”
A poll of likely voters conducted by NAHB (National Association of Home Builders) showed that 81% support keeping the federal mortgage interest deductions. 76% support keeping the deductions for state and local taxes including property taxes.
MAR received funding from NAR to help defeat Ballot Question #2 which seeks to repeal Chapter 40B. The Massachusetts Affordable Housing Law is responsible for 80% of the affordable housing created over the past decade in Massachusetts outside the major cities. That translates to approximately 58,000 homes. Since 2001, Habitat for Humanity of Cape Cod has developed 47 homes (of a total 60) utilizing this law.
Friday, October 29, 2010
Friday, October 22, 2010
Friday Facts October 22, 2010
FRIDAY FACTS
October 22, 2010
Paul Bianchina has an article in Inman News on the “3 L’s and 4 C’s of House Hunting”. Integral to purchase, but impossible or potentially very costly to change are: location, lot size, and layout. He cautions that buyers shouldn’t get hung up on the 4 “C’s” that can sometimes blind you to the potential in an otherwise ideal home: condition (as long as there are no major structural items), color, clutter, and cleanliness.
The number of foreclosures completed in Barnstable County last month was up 65% from the same period last year, the ninth straight monthly increase in the region. Year to date, foreclosures are up 79% from the same period in 2009.
Here’s another house hunting tip from Dian Hymer in Inman News – For most sellers it’s a good idea to develop an open house strategy that will maximize exposure to your property without over-exposing it. It’s usually wise to have a Sunday open house the first weekend a listing is on the market. If it’s taking months for homes to sell in your area, consider subsequent open houses every 2-3 weeks.
New home sales are at an historic low dating back over 40 years. August 2010 sales were down 28.9% from August 2009. The Northeast, however, saw a year over year decline of only 5.4%.
Fannie Mae will pay buyer’s agents a $1,500 bonus when they bring clients who close on the purchase of one of the companies REO’s as their primary residence by December 31st. The owner-occupant buyers can also receive up to 3.5% of the final sales price that can be used toward closing costs.
Curbed, a network of neighborhood-focused blog sites featuring quirky, often celebrity-related real estate trends launched a new national site under the domain, curbed.com. One focus is “real estate porn” which is defined as “sexy shots of real estate. The sort of stuff that you see that makes your mouth water, makes your jaw drop.”
October 22, 2010
Paul Bianchina has an article in Inman News on the “3 L’s and 4 C’s of House Hunting”. Integral to purchase, but impossible or potentially very costly to change are: location, lot size, and layout. He cautions that buyers shouldn’t get hung up on the 4 “C’s” that can sometimes blind you to the potential in an otherwise ideal home: condition (as long as there are no major structural items), color, clutter, and cleanliness.
The number of foreclosures completed in Barnstable County last month was up 65% from the same period last year, the ninth straight monthly increase in the region. Year to date, foreclosures are up 79% from the same period in 2009.
Here’s another house hunting tip from Dian Hymer in Inman News – For most sellers it’s a good idea to develop an open house strategy that will maximize exposure to your property without over-exposing it. It’s usually wise to have a Sunday open house the first weekend a listing is on the market. If it’s taking months for homes to sell in your area, consider subsequent open houses every 2-3 weeks.
New home sales are at an historic low dating back over 40 years. August 2010 sales were down 28.9% from August 2009. The Northeast, however, saw a year over year decline of only 5.4%.
Fannie Mae will pay buyer’s agents a $1,500 bonus when they bring clients who close on the purchase of one of the companies REO’s as their primary residence by December 31st. The owner-occupant buyers can also receive up to 3.5% of the final sales price that can be used toward closing costs.
Curbed, a network of neighborhood-focused blog sites featuring quirky, often celebrity-related real estate trends launched a new national site under the domain, curbed.com. One focus is “real estate porn” which is defined as “sexy shots of real estate. The sort of stuff that you see that makes your mouth water, makes your jaw drop.”
Friday, October 15, 2010
Friday Facts October 15, 2010
October 15, 2010
Nationwide, the average number of days to foreclosure is 461.
Jack Guttentag in Inman News points out that before the financial crisis, compliance with underwriting rules was subject to casual spot checks. Today, every loan is carefully scrutinized and those that don’t pass muster must be repurchased by the seller. The loss in a buyback wipes out the profit on about 8 loans of the same size.
We always say that now is a good time to buy. Well, Bernice Ross in Inman News gives the reason why. If interest rates increase from 4.42% to 5.42% on a $200,000 loan, the buyer will pay $43,802 or 27% additional interest on the life of a 30 year loan. If the interest rate increases from 4.42% to 6.42%, the buyer will pay $89,908 or 56% additional interest.
Remember that FHA loans are assumable. Interest rates will rise and the ability of a seller to transfer a loan and it’s financing terms (including rate) to the new buyer will have value.
Mary Umberger in Inman News gave a few tips for dealing with low-ball offers:
1. It’s critical in this market for sellers to be prepared for the possibility of an unacceptably low offer.
2. Low-ball offers may have any number of motivations and sellers shouldn’t automatically presume they stem from some one’s desire to be insulting.
3. There is debate as to whether a low-ball offer should be countered. Her advice is to counter slightly, reinforcing the asking price, but showing a willingness to “talk”.
Nationwide, the average number of days to foreclosure is 461.
Jack Guttentag in Inman News points out that before the financial crisis, compliance with underwriting rules was subject to casual spot checks. Today, every loan is carefully scrutinized and those that don’t pass muster must be repurchased by the seller. The loss in a buyback wipes out the profit on about 8 loans of the same size.
We always say that now is a good time to buy. Well, Bernice Ross in Inman News gives the reason why. If interest rates increase from 4.42% to 5.42% on a $200,000 loan, the buyer will pay $43,802 or 27% additional interest on the life of a 30 year loan. If the interest rate increases from 4.42% to 6.42%, the buyer will pay $89,908 or 56% additional interest.
Remember that FHA loans are assumable. Interest rates will rise and the ability of a seller to transfer a loan and it’s financing terms (including rate) to the new buyer will have value.
Mary Umberger in Inman News gave a few tips for dealing with low-ball offers:
1. It’s critical in this market for sellers to be prepared for the possibility of an unacceptably low offer.
2. Low-ball offers may have any number of motivations and sellers shouldn’t automatically presume they stem from some one’s desire to be insulting.
3. There is debate as to whether a low-ball offer should be countered. Her advice is to counter slightly, reinforcing the asking price, but showing a willingness to “talk”.
Friday, October 8, 2010
Friday Facts Oct. 8, 2010
FRIDAY FACTS
October 8, 2010
RISMedia offers three lessons from 3 years of recession:
A house is a home, not a piggy bank. Agents need to match home with heart.
The old way is not going to cut it. Clients are now buying movie tickets and SUV’s online. They are texting not calling. Their lives are busier than ever, so your service had better fit within their lives.
It really is all about people. Put the people you are serving ahead of everything else.
Trulia reports 10 cities where its better to buy than rent: Minneapolis; Arlington, Texas; Miami; Fresno; San Antonio; Mesa, AZ; Jacksonville, Fl; El Paso; Las Vegas. The 10 cities where it’s better to rent than buy: New York; Omaha; Seattle; Portland, Oregon; San Francisco; Oklahoma City; Kansas City, MO; Sand Diego; Dallas.
$60 million has been set aside for real estate licensees in 5 states affected by the Gulf oil spill: Texas, Louisiana, Mississippi, Alabama and Florida. Applications for claims close 11/23/10 and the limit per claimant is $12,000.
From Inman News: Zillow-like Zoopla claims to operate the U.K.’s most comprehensive property search website. It provides listing, valuations, public property records and local market statistics. It also claims to have information on every property in England, Scotland, Wales, and Northern Ireland (27 million homes) whether they’re for sale, rent, or off-market.
Kitchen design trends from RISMedia:
Counter tops: Stainless steel, antiqued marble, lava stone, wood, concrete, mosaics and flamed granite with a textured, matte finish.
Cabinetry: Fewer overhead cabinets, lift-up or sliding doors, self-closing drawers, glass-fronted cabinets and glass shelving, tracks inside doors for attaching storage accessories, pantries with multiple storage options, fresh finishes, from smooth, high-gloss and matte lacquer, to textured, horizontal-grain laminates.
Appliances: Free-standing accent pieces and fully-integrated designs that blend with cabinets, fridges with more crisper space and less freezer space, combination gas/electric ranges, designer range hoods, super-quiet dishwashers, specialty sink faucets, luxury items such as warmer drawers for coffee mugs.
Colors: Warm neutrals such as walnut, slate, sand, celadon and magnolia.
October 8, 2010
RISMedia offers three lessons from 3 years of recession:
A house is a home, not a piggy bank. Agents need to match home with heart.
The old way is not going to cut it. Clients are now buying movie tickets and SUV’s online. They are texting not calling. Their lives are busier than ever, so your service had better fit within their lives.
It really is all about people. Put the people you are serving ahead of everything else.
Trulia reports 10 cities where its better to buy than rent: Minneapolis; Arlington, Texas; Miami; Fresno; San Antonio; Mesa, AZ; Jacksonville, Fl; El Paso; Las Vegas. The 10 cities where it’s better to rent than buy: New York; Omaha; Seattle; Portland, Oregon; San Francisco; Oklahoma City; Kansas City, MO; Sand Diego; Dallas.
$60 million has been set aside for real estate licensees in 5 states affected by the Gulf oil spill: Texas, Louisiana, Mississippi, Alabama and Florida. Applications for claims close 11/23/10 and the limit per claimant is $12,000.
From Inman News: Zillow-like Zoopla claims to operate the U.K.’s most comprehensive property search website. It provides listing, valuations, public property records and local market statistics. It also claims to have information on every property in England, Scotland, Wales, and Northern Ireland (27 million homes) whether they’re for sale, rent, or off-market.
Kitchen design trends from RISMedia:
Counter tops: Stainless steel, antiqued marble, lava stone, wood, concrete, mosaics and flamed granite with a textured, matte finish.
Cabinetry: Fewer overhead cabinets, lift-up or sliding doors, self-closing drawers, glass-fronted cabinets and glass shelving, tracks inside doors for attaching storage accessories, pantries with multiple storage options, fresh finishes, from smooth, high-gloss and matte lacquer, to textured, horizontal-grain laminates.
Appliances: Free-standing accent pieces and fully-integrated designs that blend with cabinets, fridges with more crisper space and less freezer space, combination gas/electric ranges, designer range hoods, super-quiet dishwashers, specialty sink faucets, luxury items such as warmer drawers for coffee mugs.
Colors: Warm neutrals such as walnut, slate, sand, celadon and magnolia.
Friday, October 1, 2010
FRIDAY FACTS
October 1, 2010
The U.S. Census Bureau released the 2009 American Housing Survey that shows:
Homeowners paid a median $1,000 in monthly housing costs, 20% of household income
Renters paid a median $800 in monthly housing costs, but that was 31% of household income
32% own their home free and clear, 2% have a line of credit only, 66% have a regular and/or home equity mortgage
48% of homes have a separate dining room, 35% have a usable fireplace, 64% have 3+ bedrooms.
In Barnstable County, foreclosure deeds were up 74% in the first half of 2010 compared with the same period in 2009. It is estimated that neighborhood homes within 250’ of a foreclosed property lose 1% of value.
According to the Shelton Group, Green Living Pulse, 3 features a green home must have are:
1. High efficiency (Energy Star) appliances – 45.6%
2. High efficiency (Energy Star) windows – 42.8%
3. Renewable electric power generation system – 36.9%
§ From NAR: home sales dropped a record 27.2% from June. The prediction had been a drop of 12%. “Buyers and sellers are in a standoff over prices. Many sellers are reluctant to lower their prices and buyers are hesitating because they think home prices haven’t bottomed yet.” Sales were down 35% in the Midwest, 30% in the Northeast, 25% in the West and 23% in the South.
MAR reports that single family home sales were down 28% in July compared with July 2009.
NAR has an online mailbox, HAFA@realtors.org for members to provide specific examples of the problems they are facing with lenders in getting short sales processed. You won’t get a response, but your emails will be used by NAR in its discussions with lenders and the U.S. Treasury Department.
October 1, 2010
The U.S. Census Bureau released the 2009 American Housing Survey that shows:
Homeowners paid a median $1,000 in monthly housing costs, 20% of household income
Renters paid a median $800 in monthly housing costs, but that was 31% of household income
32% own their home free and clear, 2% have a line of credit only, 66% have a regular and/or home equity mortgage
48% of homes have a separate dining room, 35% have a usable fireplace, 64% have 3+ bedrooms.
In Barnstable County, foreclosure deeds were up 74% in the first half of 2010 compared with the same period in 2009. It is estimated that neighborhood homes within 250’ of a foreclosed property lose 1% of value.
According to the Shelton Group, Green Living Pulse, 3 features a green home must have are:
1. High efficiency (Energy Star) appliances – 45.6%
2. High efficiency (Energy Star) windows – 42.8%
3. Renewable electric power generation system – 36.9%
§ From NAR: home sales dropped a record 27.2% from June. The prediction had been a drop of 12%. “Buyers and sellers are in a standoff over prices. Many sellers are reluctant to lower their prices and buyers are hesitating because they think home prices haven’t bottomed yet.” Sales were down 35% in the Midwest, 30% in the Northeast, 25% in the West and 23% in the South.
MAR reports that single family home sales were down 28% in July compared with July 2009.
NAR has an online mailbox, HAFA@realtors.org for members to provide specific examples of the problems they are facing with lenders in getting short sales processed. You won’t get a response, but your emails will be used by NAR in its discussions with lenders and the U.S. Treasury Department.
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