July 30, 2010
HUD’s 2009 Housing Survey reveals that 68% of US homes are owner occupied. 51% are located in suburban areas, 29% are in central cities, and 20% are outside of metropolitan areas. The median size is 1800 square feet. 53% have 6 or more rooms. 85% have a porch, deck or balcony. The most common heating fuel is gas. Most families with young children live within one mile of a public elementary school.
According to RealTrends, the Treasury has launched HAUP (Home Affordable Unemployment Program) which reduces or suspends mortgage payments for at least three months for those who have lost their job. To qualify, a first lien mortgage must have been originated before January 1, 2009, have an unpaid balance of $729,750 or less, and the mortgage must be in default or imminent default.
The New York Times reports that 25% of all homes under $200,000 sold in the U.S. are mobile homes. They state that the FHA is going to increase the number of lenders who can do loans on property not secured by real property.
Inman News says that cash buyers have made up at least 25% of home purchasers since the 1st of the year. These buyers most commonly include investors, parents buying homes for grown children, move-up buyers, retirees buying second homes and foreigners buying vacation homes. According to NAR, investors made up 14% of buyers nationwide in May.
NAR’s Profile of International Homebuyer Activity for 2009 shows the following distribution of purchases by foreign buyers in the U.S. – New England, 8.9%, the Midwest, 12.1%, the South, 47.1% and the West, 29%.
Friday, July 30, 2010
Friday, July 23, 2010
FRIDAY FACTS
July 23, 2010
Fannie Mae will seek deficiency judgments in those states where it’s allowed against borrowers who do a strategic default. Those borrowers will be denied credit for 7 years.
House Hunting Tip from Dian Hymer in Inman News: Pay close attention to your competition. Don’t fall into the trap of pricing your house higher than your neighbor’s house because yours is better. If your neighbor’s house is too high for the market, neither will sell.
The effective date for the Homeowner Oil Heating System Upgrade and Insurance Law has been extended to September 30, 2011.
According to NAR, pending home sales nationwide dropped 30% in May from April, and 15.9% from May 2009. In the Northeast, pending sales fell 31.6% in May compared with April, and 14.8% compared with last May.
From Inman News: Fannie Mae released a notice on June 30th instructing lenders that they can only use appraisers who are knowledgeable about the area in which they are being asked to value property and who have the ability to access records on recent sales in those markets. Additionally, appraisers must consider a properties condition when choosing to use foreclosures or short sales as comps.
July 23, 2010
Fannie Mae will seek deficiency judgments in those states where it’s allowed against borrowers who do a strategic default. Those borrowers will be denied credit for 7 years.
House Hunting Tip from Dian Hymer in Inman News: Pay close attention to your competition. Don’t fall into the trap of pricing your house higher than your neighbor’s house because yours is better. If your neighbor’s house is too high for the market, neither will sell.
The effective date for the Homeowner Oil Heating System Upgrade and Insurance Law has been extended to September 30, 2011.
According to NAR, pending home sales nationwide dropped 30% in May from April, and 15.9% from May 2009. In the Northeast, pending sales fell 31.6% in May compared with April, and 14.8% compared with last May.
From Inman News: Fannie Mae released a notice on June 30th instructing lenders that they can only use appraisers who are knowledgeable about the area in which they are being asked to value property and who have the ability to access records on recent sales in those markets. Additionally, appraisers must consider a properties condition when choosing to use foreclosures or short sales as comps.
Friday, July 16, 2010
July 16, 2010
Inman News reported that FNC, Inc. based out of Oxford, Mississippi will launch a website this fall titled, Collateral Vision Gulf Coast Crisis. It will track sale prices and property values for homes up to 100 miles from the coast. It’s designed to be a repository of detailed news about how lenders, loan servicers and insurers are responding to homeowners whose incomes and mortgages have been affected by the spill.
RIS Media had an article on “Four Housing Market Myths” by Dr. Stan Humphries, Zillow’s chief economist:
The housing recession is over. Nationally, home values probably won’t bottom until the third quarter of 2010.
Historical appreciation rates will return after prices bottom. They won’t. The bottom will be long and flat and historical appreciation is 3 to 5 years away.
The worst of the foreclosure crisis is over. Nationally, the rate of foreclosure is increasing.
The home buyer tax credit saved us. Although some sales were pushed forward and the market psychology shifted because of the credit, the improvement in sales came more from historically low mortgage rates, dramatically increased housing affordability and increased FHA lending.
§ Inman’s notable quote by Bernice Ross, “Regardless of what your market is doing, here’s one strategy that applies in any market: Focus your listing efforts in the areas that have the greatest demand and the fewest number of listings. That’s always where the opportunity is greatest.
§ Make sure you check out the Realtor.com beta site.
Inman News reported that FNC, Inc. based out of Oxford, Mississippi will launch a website this fall titled, Collateral Vision Gulf Coast Crisis. It will track sale prices and property values for homes up to 100 miles from the coast. It’s designed to be a repository of detailed news about how lenders, loan servicers and insurers are responding to homeowners whose incomes and mortgages have been affected by the spill.
RIS Media had an article on “Four Housing Market Myths” by Dr. Stan Humphries, Zillow’s chief economist:
The housing recession is over. Nationally, home values probably won’t bottom until the third quarter of 2010.
Historical appreciation rates will return after prices bottom. They won’t. The bottom will be long and flat and historical appreciation is 3 to 5 years away.
The worst of the foreclosure crisis is over. Nationally, the rate of foreclosure is increasing.
The home buyer tax credit saved us. Although some sales were pushed forward and the market psychology shifted because of the credit, the improvement in sales came more from historically low mortgage rates, dramatically increased housing affordability and increased FHA lending.
§ Inman’s notable quote by Bernice Ross, “Regardless of what your market is doing, here’s one strategy that applies in any market: Focus your listing efforts in the areas that have the greatest demand and the fewest number of listings. That’s always where the opportunity is greatest.
§ Make sure you check out the Realtor.com beta site.
Friday, July 9, 2010
Friday Facts July 9, 2010
July 9, 2010
From Inman’s Wheel Estate Cam, Broker Frank Llosa of Frankly Realty notes, “How do consumers know if their real estate agent is working hard, or hardly working?” The answer is communication. “Oftentimes there’s a common misperception that if you don’t see someone doing the work, you just assume they’re not doing anything.” Keep clients informed by sending copies of emails relevant to their transaction. The client will feel more in the loop and have confidence in what the agent is doing on their behalf.
The census bureau reports that new single family home size dropped to 2,438 square feet in 2009 after 30 years of increasing size. The peak was 2,521 square feet in 2007.
RealTrends reports that 75% of modified home loans through government sponsored programs will default within 12 months.
RIS Media suggests that you don’t stop with a home video tour. Consider doing a neighborhood tour. They have three tips:
Highlight common areas of interest: schools, shopping, recreation, etc.
Show what sets the neighborhood apart: landmarks, historic significance, natural beauty
Focus on lifestyle issues: climate, seasonal sports
§ According to a recent Coldwell Banker survey, singles of all ages are more likely to buy a home in the suburbs.
From Inman’s Wheel Estate Cam, Broker Frank Llosa of Frankly Realty notes, “How do consumers know if their real estate agent is working hard, or hardly working?” The answer is communication. “Oftentimes there’s a common misperception that if you don’t see someone doing the work, you just assume they’re not doing anything.” Keep clients informed by sending copies of emails relevant to their transaction. The client will feel more in the loop and have confidence in what the agent is doing on their behalf.
The census bureau reports that new single family home size dropped to 2,438 square feet in 2009 after 30 years of increasing size. The peak was 2,521 square feet in 2007.
RealTrends reports that 75% of modified home loans through government sponsored programs will default within 12 months.
RIS Media suggests that you don’t stop with a home video tour. Consider doing a neighborhood tour. They have three tips:
Highlight common areas of interest: schools, shopping, recreation, etc.
Show what sets the neighborhood apart: landmarks, historic significance, natural beauty
Focus on lifestyle issues: climate, seasonal sports
§ According to a recent Coldwell Banker survey, singles of all ages are more likely to buy a home in the suburbs.
Friday, July 2, 2010
FRIDAY FACTS
July 2, 2010
Here are some sound bites from the NAR Resort Symposium held at Lake Tahoe June 13-15th. For my notes from the conference, please use this link:
There is continuing debate as to whether the market has bottomed, and some consumers are waiting – right or wrong.
Greece has an 80-85% home ownership rate, the highest in the world and very few mortgage defaults. Bridal families buy homes with cash. Their problem is government default – too high deficit and too high debt.
From 1982-2007 we were living large. The average house size increased 50%. Now, it’s the end of excess, a consumer reset with the question being: “Do we need it or do we want it?”
For the third time this year, Congress has skipped town and not renewed the National Flood Insurance Program It’s caught up in the deficit debate. Congress keeps kicking the can down the road because ultimately they want to reform the program comprehensively. NAR is keeping an eye on the following issues: subsidies, maps, wind provisions.
Reputation, trustworthiness and honesty are the most important factors in choosing an agent according to 57% of sellers and 54% of buyers.
The person who determines the question also determines the outcome. We’ve allowed the media to determine the question.
The biggest problem today is the lack of funding for mortgages. NAR’s leadership will be meeting with the 5 largest lenders (collectively 73% of the business) to discuss performance and come up with protocols. One focus will be directed toward second homes and investment properties.
Social media outlets need to be integrated into your email signatures.
July 2, 2010
Here are some sound bites from the NAR Resort Symposium held at Lake Tahoe June 13-15th. For my notes from the conference, please use this link:
There is continuing debate as to whether the market has bottomed, and some consumers are waiting – right or wrong.
Greece has an 80-85% home ownership rate, the highest in the world and very few mortgage defaults. Bridal families buy homes with cash. Their problem is government default – too high deficit and too high debt.
From 1982-2007 we were living large. The average house size increased 50%. Now, it’s the end of excess, a consumer reset with the question being: “Do we need it or do we want it?”
For the third time this year, Congress has skipped town and not renewed the National Flood Insurance Program It’s caught up in the deficit debate. Congress keeps kicking the can down the road because ultimately they want to reform the program comprehensively. NAR is keeping an eye on the following issues: subsidies, maps, wind provisions.
Reputation, trustworthiness and honesty are the most important factors in choosing an agent according to 57% of sellers and 54% of buyers.
The person who determines the question also determines the outcome. We’ve allowed the media to determine the question.
The biggest problem today is the lack of funding for mortgages. NAR’s leadership will be meeting with the 5 largest lenders (collectively 73% of the business) to discuss performance and come up with protocols. One focus will be directed toward second homes and investment properties.
Social media outlets need to be integrated into your email signatures.
Monday, June 28, 2010
FRIDAY FACTS
June 25, 2010
From TBWS Daily: GE is offering subprime loans in the United Kingdom, but they’ve changed the name to “complex loans”. Rates are fixed at 5.99% for two years, then float, and the borrower can have up to two defaulted loans (including a mortgage) and a judgment.
From an article by Bernice Ross in Inman News: Negotiate face to fact, not by fax. Control the offer process, and don’t miss the clues offered by body language. As a buyer’s agent you need to remember that the listing agent has a fiduciary duty to get the highest possible price for the seller. If you’re not personally presenting your offers, you are depriving your buyers of the representation they need to get the best possible deal.
As of May 27th, Fannie Mae will not finance a foreclosed home until the state law redemption period has passed.
Inman News reports that Doug Duncan, chief economist for Fannie Mae says that the overhang of housing inventory will cause a delay in housing recovery until 2013.
The real estate research site Housing Predictor forecasts a drop of at least 30% in real estate value in the areas of Louisiana and Mississippi affected by the oil spill.
From Inman News, the quote of the day by Kris Berg, “Now I’m all about analytics, so I can tell you that in the last 72 hours we have received 6 phone calls and 4 email inquiries about properties. Wow! That’s almost 10 prospects! What I can also tell you is that every one of them contacted us because they stumbled across a home for which they thought we were the listing agent.”
June 25, 2010
From TBWS Daily: GE is offering subprime loans in the United Kingdom, but they’ve changed the name to “complex loans”. Rates are fixed at 5.99% for two years, then float, and the borrower can have up to two defaulted loans (including a mortgage) and a judgment.
From an article by Bernice Ross in Inman News: Negotiate face to fact, not by fax. Control the offer process, and don’t miss the clues offered by body language. As a buyer’s agent you need to remember that the listing agent has a fiduciary duty to get the highest possible price for the seller. If you’re not personally presenting your offers, you are depriving your buyers of the representation they need to get the best possible deal.
As of May 27th, Fannie Mae will not finance a foreclosed home until the state law redemption period has passed.
Inman News reports that Doug Duncan, chief economist for Fannie Mae says that the overhang of housing inventory will cause a delay in housing recovery until 2013.
The real estate research site Housing Predictor forecasts a drop of at least 30% in real estate value in the areas of Louisiana and Mississippi affected by the oil spill.
From Inman News, the quote of the day by Kris Berg, “Now I’m all about analytics, so I can tell you that in the last 72 hours we have received 6 phone calls and 4 email inquiries about properties. Wow! That’s almost 10 prospects! What I can also tell you is that every one of them contacted us because they stumbled across a home for which they thought we were the listing agent.”
Friday, June 18, 2010
Friday Facts June 18, 2010
FRIDAY FACTS
June 18, 2010
Global Edge Marketing reports on the 1st iPhone app for overseas property, HomesGoFast.com. It provides access to 50,000 properties in over 70 countries and gives the ability to store favorites and view property slide shows.
Want them to open your email? Pay attention to the “from” and “subject” lines. Surprisingly, 60% of readers decide whether to delete or read by the “from” line, and 35% from the “subject” line.
NAR submitted three questions to Fannie Mae regarding HAFA (Home Affordable Foreclosure Alternatives Program). Here are the answers:
1. Buyer’s agents are not permitted to rebate a portion of their commission to the buyer.
2. Sellers who are real estate agents must list their home for sale with another broker, not their own broker.
3. The incentive allowed for subordinate lien holders (6% of any one subordinate lien, up to a total of $6,000 for all subordinate liens) is a hard cap and may not be supplemented from any source.
§ Remember that on July 10th, 2010 the new Massachusetts law concerning home heating oil systems goes into effect. There are two major provisions:
1. The installation of either an oil safety valve or an oil supply line with protective sleeve on systems that do not currently have these devices (most systems installed after 1990 most likely are in compliance)
2. Insurance companies that write homeowners policies must offer coverage for leaks from heating systems that use oil. The insurance companies are mandated to provide the coverage, but purchasing the insurance is optional for the homeowner.
§ From Susie Hale’s Frog Pond Newsletter, 3 Tips for Asking Better Questions:
1. Be curious. Doing all the talking doesn’t make your effective. Be inquisitive and ask about topics that are important to you and the person with whom you are talking.
2. Be open-ended. Use what, how, and why questions. Don’t just ask about events, but about thoughts and motivations as well.
3. Dig Deeper. Don’t accept the first answer you get. Ask follow-up questions to get more detail and surface the real story.
June 18, 2010
Global Edge Marketing reports on the 1st iPhone app for overseas property, HomesGoFast.com. It provides access to 50,000 properties in over 70 countries and gives the ability to store favorites and view property slide shows.
Want them to open your email? Pay attention to the “from” and “subject” lines. Surprisingly, 60% of readers decide whether to delete or read by the “from” line, and 35% from the “subject” line.
NAR submitted three questions to Fannie Mae regarding HAFA (Home Affordable Foreclosure Alternatives Program). Here are the answers:
1. Buyer’s agents are not permitted to rebate a portion of their commission to the buyer.
2. Sellers who are real estate agents must list their home for sale with another broker, not their own broker.
3. The incentive allowed for subordinate lien holders (6% of any one subordinate lien, up to a total of $6,000 for all subordinate liens) is a hard cap and may not be supplemented from any source.
§ Remember that on July 10th, 2010 the new Massachusetts law concerning home heating oil systems goes into effect. There are two major provisions:
1. The installation of either an oil safety valve or an oil supply line with protective sleeve on systems that do not currently have these devices (most systems installed after 1990 most likely are in compliance)
2. Insurance companies that write homeowners policies must offer coverage for leaks from heating systems that use oil. The insurance companies are mandated to provide the coverage, but purchasing the insurance is optional for the homeowner.
§ From Susie Hale’s Frog Pond Newsletter, 3 Tips for Asking Better Questions:
1. Be curious. Doing all the talking doesn’t make your effective. Be inquisitive and ask about topics that are important to you and the person with whom you are talking.
2. Be open-ended. Use what, how, and why questions. Don’t just ask about events, but about thoughts and motivations as well.
3. Dig Deeper. Don’t accept the first answer you get. Ask follow-up questions to get more detail and surface the real story.
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