The economy is on the road to financial recovery. It will be a long and hard road, but we are on our way. There are many obstacles that could cause us to break down on this road. None is more important than the concept of "shadow inventory." What is that? These are homes which the banks are not foreclosing upon because they are trying to work out solutions with present homeowners or frankly they don’t want to flood the markets all at once and depress prices. How many homes are casting a shadow over the markets? Projections vary, but suffice to say that there are several million homes that will be foreclosed upon in the next two years. That is a lot of homes. It is also good news that at least one forecaster says that investor demand is so strong that home prices will not be affected by these homes coming upon the markets.
We keep saying this and it bears repeating. Real estate led us into recession and it must lead us into recovery. There are many factors that can help "soak" up shadow inventory. The weak dollar is increasing demand from foreign investors. The tax credit is bringing more first time buyers into the market and now move-up buyers as well. Low rates are keeping homes affordable, especially when compared to renting in many markets. Government efforts at modifications are also expected to keep many in their homes. Even builders are helping by bringing less homes to the market. Not one of these is by itself enough to absorb several million homes. But if we put all these factors together, it very well may happen as the John Burns Real Estate Consulting Company has indicated. Keep in mind that all the while the population of this Nation is rising. This means that sometime in the future, there will be growth in the real estate market and our economy. In the meantime, we will navigate the long and winding road.
Showing posts with label north atlanta. Show all posts
Showing posts with label north atlanta. Show all posts
Thursday, March 4, 2010
Wednesday, September 9, 2009
Behind FHA Strains, a Push to Lift Housing
Interesting article...and it definitely shows that the public's demand is there as in the case of California accounting for 13% of all FHA loans in July! California areas have FHA loans to $729K...people want to buy if we can find a way to get them money! Jumbo money needs to be more available!
Friday, August 28, 2009
Housing Lifts Recovery Hopes
Sales of existing homes in July jumped at the fastest rate in 10 years, sending stock prices up around the globe on hopes that the U.S. housing market -- a driver of the world's largest economy -- is stabilizing after years of decline.
Sales of single-family homes increased 7.2% in July from a month earlier to a seasonally adjusted annual rate of 5.24 million units, the National Association of Realtors said Friday.
The monthly increase was the largest since 1999, when the NAR began collecting data for all types of homes -- its measure includes condominiums and cooperative apartments. It marked the fourth monthly rise in a row. Sales also were up 5% from July 2008, showing the first gain from the year-earlier level since November 2005.
The good news on housing came as Federal Reserve Chairman Ben Bernanke issued a mostly optimistic report Friday on the state of the U.S. economy.
"Fears of financial collapse have receded substantially," Mr. Bernanke said at the Federal Reserve's annual retreat at Jackson Hole, Wyo. "After contracting sharply over the past year, economic activity appears to be leveling out, both in the U.S. and abroad, and the prospects for a return to growth in the next year appear good."
The housing report pushed the Dow Jones Industrial Average up 155.91 points, or 1.7%, to close at 9505.96. The Dow has risen five of the past six weeks.
The increase in home sales came as buyers rushed to lock in bargains on foreclosed homes and tap a federal tax credit for first-time buyers that is set to expire in a few months. Yet home sales remain nearly 20% below the pace of 2006, when the housing boom was peaking. Housing economists and even some real-estate agents caution that the recovery is fragile.Related
* Economists React: 'A Long Way to Go'
* Housing: A 'Wave' of Foreclosure Listings?
* Souring Loans Compound Mortgage Woes
For now, low prices and attractive financing are enticing buyers. Jodi Janiga, 32 years old, is using a loan insured by the Federal Housing Administration to buy a two-bedroom townhouse in Green Valley, a Las Vegas planned neighborhood with golf courses and sidewalk statues. That required her to put about $4,200 down on the $119,000 property. Three years ago, similar townhomes in the area sold for $280,000.
"It was a smoking deal," said Ms. Janiga, a schoolteacher who says she bid on nearly 15 homes.
"The buyers are back, and they're buying," but mainly the lowest-priced homes, said Teresa Boardman, a real-estate broker in St. Paul, Minn. Many potential sellers of higher-quality homes are waiting to put them on the market if prices start to rebound, she said.
The economic outlook is crucial for housing demand, as many potential buyers will hold off as long as they fear job losses.
Most economists say the U.S. economy, which began contracting in December 2007 in what is the deepest and longest recession since World War II, has started growing again. The Fed said manufacturing output rose 1% in July, the strongest increase since December 2006. U.S. exports rose in May and June. Consumers are still dragging on the economy, though, as a high jobless rate, stagnant wages, tight credit and a renewed eagerness to save have restrained spending.
The Realtors said a survey of agents showed that foreclosure-related sales accounted for 31% of July transactions. But foreclosures are a much bigger factor in some markets, particularly in parts of Florida, Nevada, Arizona and California. In the Las Vegas area in July, bank-owned properties accounted for 73% of all sales, according to the Greater Las Vegas Association of Realtors.
Distressed sales continue to push down prices. The median U.S. price in July was $178,400, down 15% from a year earlier.
Sales were also strong in some metro areas that haven't been hit hard by foreclosures, said Tom Lawler, a housing economist in Leesburg, Va. These include Des Moines, Iowa; San Antonio and Roanoke, Va. "I think people who decided to check into the [home-shopping] process were pleasantly surprised by prices and mortgage-credit availability," Mr. Lawler said. The FHA is insuring mortgages for people with down payments of as low as 3.5%.
Housing also has grown more affordable.
On average, a U.S. household with a median income in the second quarter of this year could afford a home costing 71% more than the median price, according to Moody's Economy.com. Three years ago, such a household could have afforded a home only 5% over the median.
Compared with a year earlier, unit sales in July were up 3.3% in the Northeast, 8% in the Midwest, 5.4% in the South and 1.8% in the West, the NAR said.
Sales have been aided by a federal tax credit of as much as $8,000 for first-time home buyers. That stimulus will end Nov. 30 unless Congress extends it.[Housing Recovery Lifts Hopes]
Sens. Christopher Dodd, a Connecticut Democrat, and Johnny Isakson, a Republican from Georgia, have introduced legislation to extend the credit, increase it to as much as $15,000 and make it available to all home buyers, not just first-timers. Senate Majority Leader Harry Reid backs an extension of the credit.
"Congress is not going to endanger the fragile beginnings of a housing recovery by letting the credit lapse," said Howard Glaser, a mortgage-industry consultant in Washington.
Inventories of unsold homes are falling but remain high. And many potential sellers are staying out of the market, waiting for signs of rising prices before trying to sell. That could lead to a bulge in inventory later.
Some 1.8 million homeowners are currently in foreclosure, and the number of future foreclosures could top one million, says Torsten Slok, senior economist at Deutsche Bank. "It's safe to say that we still have a significant amount of foreclosures ahead of us," he said, adding: "It's still not a healthy housing market when you have one third of sales coming from foreclosure sales."—Sara Murray and Corey Boles contributed to this article.
By JAMES R. HAGERTY and NICK TIMIRAOS of the WSJ
Sales of single-family homes increased 7.2% in July from a month earlier to a seasonally adjusted annual rate of 5.24 million units, the National Association of Realtors said Friday.
The monthly increase was the largest since 1999, when the NAR began collecting data for all types of homes -- its measure includes condominiums and cooperative apartments. It marked the fourth monthly rise in a row. Sales also were up 5% from July 2008, showing the first gain from the year-earlier level since November 2005.
The good news on housing came as Federal Reserve Chairman Ben Bernanke issued a mostly optimistic report Friday on the state of the U.S. economy.
"Fears of financial collapse have receded substantially," Mr. Bernanke said at the Federal Reserve's annual retreat at Jackson Hole, Wyo. "After contracting sharply over the past year, economic activity appears to be leveling out, both in the U.S. and abroad, and the prospects for a return to growth in the next year appear good."
The housing report pushed the Dow Jones Industrial Average up 155.91 points, or 1.7%, to close at 9505.96. The Dow has risen five of the past six weeks.
The increase in home sales came as buyers rushed to lock in bargains on foreclosed homes and tap a federal tax credit for first-time buyers that is set to expire in a few months. Yet home sales remain nearly 20% below the pace of 2006, when the housing boom was peaking. Housing economists and even some real-estate agents caution that the recovery is fragile.Related
* Economists React: 'A Long Way to Go'
* Housing: A 'Wave' of Foreclosure Listings?
* Souring Loans Compound Mortgage Woes
For now, low prices and attractive financing are enticing buyers. Jodi Janiga, 32 years old, is using a loan insured by the Federal Housing Administration to buy a two-bedroom townhouse in Green Valley, a Las Vegas planned neighborhood with golf courses and sidewalk statues. That required her to put about $4,200 down on the $119,000 property. Three years ago, similar townhomes in the area sold for $280,000.
"It was a smoking deal," said Ms. Janiga, a schoolteacher who says she bid on nearly 15 homes.
"The buyers are back, and they're buying," but mainly the lowest-priced homes, said Teresa Boardman, a real-estate broker in St. Paul, Minn. Many potential sellers of higher-quality homes are waiting to put them on the market if prices start to rebound, she said.
The economic outlook is crucial for housing demand, as many potential buyers will hold off as long as they fear job losses.
Most economists say the U.S. economy, which began contracting in December 2007 in what is the deepest and longest recession since World War II, has started growing again. The Fed said manufacturing output rose 1% in July, the strongest increase since December 2006. U.S. exports rose in May and June. Consumers are still dragging on the economy, though, as a high jobless rate, stagnant wages, tight credit and a renewed eagerness to save have restrained spending.
The Realtors said a survey of agents showed that foreclosure-related sales accounted for 31% of July transactions. But foreclosures are a much bigger factor in some markets, particularly in parts of Florida, Nevada, Arizona and California. In the Las Vegas area in July, bank-owned properties accounted for 73% of all sales, according to the Greater Las Vegas Association of Realtors.
Distressed sales continue to push down prices. The median U.S. price in July was $178,400, down 15% from a year earlier.
Sales were also strong in some metro areas that haven't been hit hard by foreclosures, said Tom Lawler, a housing economist in Leesburg, Va. These include Des Moines, Iowa; San Antonio and Roanoke, Va. "I think people who decided to check into the [home-shopping] process were pleasantly surprised by prices and mortgage-credit availability," Mr. Lawler said. The FHA is insuring mortgages for people with down payments of as low as 3.5%.
Housing also has grown more affordable.
On average, a U.S. household with a median income in the second quarter of this year could afford a home costing 71% more than the median price, according to Moody's Economy.com. Three years ago, such a household could have afforded a home only 5% over the median.
Compared with a year earlier, unit sales in July were up 3.3% in the Northeast, 8% in the Midwest, 5.4% in the South and 1.8% in the West, the NAR said.
Sales have been aided by a federal tax credit of as much as $8,000 for first-time home buyers. That stimulus will end Nov. 30 unless Congress extends it.[Housing Recovery Lifts Hopes]
Sens. Christopher Dodd, a Connecticut Democrat, and Johnny Isakson, a Republican from Georgia, have introduced legislation to extend the credit, increase it to as much as $15,000 and make it available to all home buyers, not just first-timers. Senate Majority Leader Harry Reid backs an extension of the credit.
"Congress is not going to endanger the fragile beginnings of a housing recovery by letting the credit lapse," said Howard Glaser, a mortgage-industry consultant in Washington.
Inventories of unsold homes are falling but remain high. And many potential sellers are staying out of the market, waiting for signs of rising prices before trying to sell. That could lead to a bulge in inventory later.
Some 1.8 million homeowners are currently in foreclosure, and the number of future foreclosures could top one million, says Torsten Slok, senior economist at Deutsche Bank. "It's safe to say that we still have a significant amount of foreclosures ahead of us," he said, adding: "It's still not a healthy housing market when you have one third of sales coming from foreclosure sales."—Sara Murray and Corey Boles contributed to this article.
By JAMES R. HAGERTY and NICK TIMIRAOS of the WSJ
Friday, July 3, 2009
Jumbo Loans = Jumbo Problem!
I believe we all like some of the signs coming in today for Real Estate…at least in the overall number of contracts being written. It does appear that demand is beginning to come around with the discounts offered from many of the REO properties, and short sale scenarios. Couple this with the tax credit, and other incentives towards First Time Homebuyers, and the numbers can be falsely positive.
There is a big…let me re-phrase that: There is a JUMBO Problem that is beginning to scream loudly…and needs attention.
To make sure we are all with a crystal clear understanding, a Jumbo Loan is a single mortgage that is higher than $417k.
Do you know what is required to obtain most Jumbo Loans?
1. 20 to 25% Down Payment (some areas may be higher)
2. A 720 credit score or higher
Most areas have seen an increase in demand of homes that are priced below $450k, and the homes that are above $450k have typically dropped in demand significantly.
There are several reasons for the reduction in the volume of sales for this range, but the primary reason is the difficulty of obtaining financing for a Jumbo Loan. If this situation does not find some relief to have lenders be able to get back to a “healthy” (not sub-prime, and not exotic type loans, but good sensible lending) lending practice for this price range, we will soon be faced with a deeper hole that will perpetuate our existing problems with foreclosures.
What would be considered healthy?
I have talked to several people in the lending industry and the general range would be 10% down payment, and a minimum of 650 on the credit score…with full documentation to prove the relevant facts.
We need the banks to help themselves first.
Until they can attract more buyers to the Jumbo type of loan, the foreclosures in this range will begin to become a significant problem, and pricing could see a significant problem in this range.
So, hopefully lenders can see this and figure out how to assist in increasing the demand in lieu of exaserbating something that will keep supply increasing, and demand decreasing…it is a catch 22 for the lenders, but the risk of doing nothing is greater than trying something.
There is a big…let me re-phrase that: There is a JUMBO Problem that is beginning to scream loudly…and needs attention.
To make sure we are all with a crystal clear understanding, a Jumbo Loan is a single mortgage that is higher than $417k.
Do you know what is required to obtain most Jumbo Loans?
1. 20 to 25% Down Payment (some areas may be higher)
2. A 720 credit score or higher
Most areas have seen an increase in demand of homes that are priced below $450k, and the homes that are above $450k have typically dropped in demand significantly.
There are several reasons for the reduction in the volume of sales for this range, but the primary reason is the difficulty of obtaining financing for a Jumbo Loan. If this situation does not find some relief to have lenders be able to get back to a “healthy” (not sub-prime, and not exotic type loans, but good sensible lending) lending practice for this price range, we will soon be faced with a deeper hole that will perpetuate our existing problems with foreclosures.
What would be considered healthy?
I have talked to several people in the lending industry and the general range would be 10% down payment, and a minimum of 650 on the credit score…with full documentation to prove the relevant facts.
We need the banks to help themselves first.
Until they can attract more buyers to the Jumbo type of loan, the foreclosures in this range will begin to become a significant problem, and pricing could see a significant problem in this range.
So, hopefully lenders can see this and figure out how to assist in increasing the demand in lieu of exaserbating something that will keep supply increasing, and demand decreasing…it is a catch 22 for the lenders, but the risk of doing nothing is greater than trying something.
Thursday, June 18, 2009
A Full Day at the Housing Summit
Yesterday was a solid day of learning for me…
I began by going to the Housing Summit, and then went to the Broker’s Council for NAMAR…it was a FULL day!
What I learned is the following:
1. We are right on target with what we have been communicating…Pending sales are rising back to levels of last year, and Supply is coming down everywhere. This is where you would see solid glimmers of hope forming the POTENTIAL for a bottom…everything in markets are driven by supply and demand…
2. Be glad you are not in Clayton County! The median home sales price was like $40k!
3. Forsyth is one of the areas that has been fairing better than most on values of homes, BUT my contention is that is the only county that has still been sliding on volume of contracts…meaning, it needs to come down some more to stimulate more buyers to buy…
4. What will shape the bottom, or not are the following:
a. Interest Rates need to remain low
b. Lending Practices – we need to get back to normal lending practices and allow the “good” credit people to be able to buy homes vs the tight restrictions everyone is facing today
c. Jumbo Money – if the Jumbo Loans are not made more readily available, then the upper end homes will see a very difficult time in selling to someone today…right now, you must have 20% down, and a 720 credit score…this eliminates a lot of people from the potential of buying…
d. GAS Prices! If the gas goes up to $4.00 a gallon, then we could see a terrible time for us all…in many ways…
5. As Banks are being riddled with mass lot take-backs/foreclosures, you will begin to see incredibly priced NEW homes begin to surface in areas…they will be a brand new home that will be priced to compete with a foreclosure…this is brewing, and will begin to be shown in the upcoming months…banks are beginning to get aggressive in pricing or building out of a situation…what will be good, is that it will stimulate people to buy, and that is a necessary thing to get out of the bottom and move into correction…GET YOUR SELLERS ON BOARD WITH THIS AS IT WILL ONLY GET MORE DIFFICULT TO SELL ONCE THIS COMES TO BE!!!!!
6. Most areas have shrunk in inventory, so RE-SALES will have a good ending to the year if they get priced right, and get priced to sell!
7. Gwinnett County is in the process of beginning its “rebuilding” of areas…it is the Gwinnett County Neighborhood Stabilization Program…they have targeted areas that they will be able to buy vacant, and run down homes to rehab and help the overall market conditions.
8. Social Networking is here to stay…if you are not on board with it, you better get on board!
Keep up the great work, and remember this:
You have finished swimming 75% of a huge body of water…it has been a long hard swim…you can either give up, or finish the final 25%...I CHOOSE TO FINISH STRONG!
I began by going to the Housing Summit, and then went to the Broker’s Council for NAMAR…it was a FULL day!
What I learned is the following:
1. We are right on target with what we have been communicating…Pending sales are rising back to levels of last year, and Supply is coming down everywhere. This is where you would see solid glimmers of hope forming the POTENTIAL for a bottom…everything in markets are driven by supply and demand…
2. Be glad you are not in Clayton County! The median home sales price was like $40k!
3. Forsyth is one of the areas that has been fairing better than most on values of homes, BUT my contention is that is the only county that has still been sliding on volume of contracts…meaning, it needs to come down some more to stimulate more buyers to buy…
4. What will shape the bottom, or not are the following:
a. Interest Rates need to remain low
b. Lending Practices – we need to get back to normal lending practices and allow the “good” credit people to be able to buy homes vs the tight restrictions everyone is facing today
c. Jumbo Money – if the Jumbo Loans are not made more readily available, then the upper end homes will see a very difficult time in selling to someone today…right now, you must have 20% down, and a 720 credit score…this eliminates a lot of people from the potential of buying…
d. GAS Prices! If the gas goes up to $4.00 a gallon, then we could see a terrible time for us all…in many ways…
5. As Banks are being riddled with mass lot take-backs/foreclosures, you will begin to see incredibly priced NEW homes begin to surface in areas…they will be a brand new home that will be priced to compete with a foreclosure…this is brewing, and will begin to be shown in the upcoming months…banks are beginning to get aggressive in pricing or building out of a situation…what will be good, is that it will stimulate people to buy, and that is a necessary thing to get out of the bottom and move into correction…GET YOUR SELLERS ON BOARD WITH THIS AS IT WILL ONLY GET MORE DIFFICULT TO SELL ONCE THIS COMES TO BE!!!!!
6. Most areas have shrunk in inventory, so RE-SALES will have a good ending to the year if they get priced right, and get priced to sell!
7. Gwinnett County is in the process of beginning its “rebuilding” of areas…it is the Gwinnett County Neighborhood Stabilization Program…they have targeted areas that they will be able to buy vacant, and run down homes to rehab and help the overall market conditions.
8. Social Networking is here to stay…if you are not on board with it, you better get on board!
Keep up the great work, and remember this:
You have finished swimming 75% of a huge body of water…it has been a long hard swim…you can either give up, or finish the final 25%...I CHOOSE TO FINISH STRONG!
Monday, June 1, 2009
'Jumbo' Loans, Down-to-Earth Rates
Looking for a mortgage that exceeds $729,750?
Not long ago, you would have been charged about 8 percent interest on a loan that large -- if you could find a lender willing to grant you one.
Now, rates on these "jumbo" loans are much more affordable, having settled in the low 6 percent range, on average, for the past few weeks. But taking advantage of the lower rates remains tough. "Availability is still an issue, and the bar is higher in terms of down-payment requirements and credit scores," said Greg McBride, a senior financial analyst at Bankrate.com, a personal finance Web site.
After the mortgage market began unraveling in late 2007, rattled investors stopped buying jumbos. Instead, they turned to loans that met the requirements of mortgage financers Fannie Mae and Freddie Mac. At the time, the two companies did not buy loans that exceeded $417,000. Rates on loans larger than that shot up. And borrowers in pricey areas like Washington got shut out of the housing market or lost a chance to refinance.
To help lower borrowing costs, the federal government temporarily raised the limit for loans Fannie Mae and Freddie Mac could buy. Now the ceiling is $729,750 on single-family homes in some of the nation's most expensive counties, including many in the Washington region. The higher ceiling, due to expire Dec. 31, also applies to mortgages backed by the Federal Housing Administration.
To check the limits in your area, go to the Department of Housing and Urban Development Web page http://https://entp.hud.gov/idapp/html/hicostlook.cfm.
In areas where the $729,750 ceiling applies, there is now a three-tiered mortgage market. It is structured so that the size of the loan is a main factor in determining its rate.
On a 30-year, fixed-rate loan up to $417,000, the average rate this week was 5.44 percent, according to the research firm HSH Associates. The next best rates apply to loans from $417,000 to $729,750, which averaged 5.72 percent this week. Loans larger than that get hit with the highest rates, which averaged 6.37 percent for the week.
To avoid the highest rates, some borrowers are trying to stay beneath the $729,750 ceiling by taking out two loans while still making a down payment: one loan for $729,750 and another for the balance, said Kerry White, a loan officer at Prosperity Mortgage, a joint venture of Long & Foster and Wells Fargo.
These "piggyback" mortgages are difficult to arrange. But for those who can get them, they are generally a cheaper alternative than taking out a single jumbo loan because they do not expose borrowers to the same stringent credit-score, down-payment and savings requirements, White said. At Wells Fargo, for instance, a borrower willing to make a 20 percent down payment on a jumbo loan must also prove that he or she has enough savings to cover at least 40 percent of the loan amount, not including whatever is stashed away in retirement accounts, White said.
But getting a second loan is not as easy as it once was. In the past, when home prices were climbing, piggybacks enabled borrowers to avoid down payments by using two loans to cover the entire cost of a home. Many of these loans went bad when the housing market soured. Most lenders now demand a down payment and shy away from making second loans.
White managed to help a Washington area lawyer secure a second mortgage recently to help pay for a $2.5 million house. "But he got it only because he was putting 30 percent down," she said. "The small bank that made the second loan was comfortable with that."
These standards are not out of line with current norms, said Bob Walters, chief economist at the online mortgage firm Quicken Loans.
"Borrowers are going to be putting down 20 percent at the very least on a jumbo, and once [the loan amount] gets past $1.5 million, the down-payment requirements go to 30 percent and even 40 percent," Walters said. "The more you're borrowing, the more skin in the game you have to have."
The National Association of Realtors said these requirements have stalled the sales of high-priced homes and hampered the housing market's recovery. The supply of expensive homes is growing, adding to an already bloated housing market, the group said.
Meanwhile, the default rates among jumbo borrowers have been rising because those homeowners lack refinancing opportunities, the association said.
Against that backdrop, Bank of America sees opportunity.
In January, the company started offering jumbos with rates in the high 5 percent range for borrowers who pay one point, a fee equal to 1 percent of the loan that helps lower the rate charged. Borrowers who take out jumbos that are fixed for five years and then adjust every year thereafter are priced in the low 5 percent range. Those jumbo loans are limited to $1.5 million, and Bank of America plans to raise the amount to $2 million in the next few weeks.
"All of us have heard the same complaint: Jumbo buyers with good incomes and strong credit deserve better rates," Vijay Lala, a mortgage-product executive for the bank, said at a recent National Association of Realtors conference.
But anyone who takes out a loan for more than $1 million must have enough cash in reserve to cover at least a year's worth of principal and interest payments, Lala said. Borrowers must also show proof of income and assets to qualify.
Consumers who can meet these criteria have performed well historically, which is why Bank of America is willing to take a chance on them, Lala said.
Bank of America and most lenders that offer jumbos these days are holding on to them instead of selling them to investors, as they did about two years ago. That's because few investors are willing to buy them, said Keith Gumbinger, a vice president at the research firm HSH.
By keeping these loans in their own portfolios, lenders have discretion on what standards they want to impose on borrowers, so it pays to shop around, Gumbinger said. "Lenders can have very different ideas for what they find to be acceptable."
Don't limit your search to big banks, either, said Guy Cecala, publisher of Inside Mortgage Finance. Take a look at community banks.
"Generally, they would like to make a loan locally to someone they know," Cecala said. "You should milk any banking relationships you've got. People who keep their life savings at a community bank have more leverage than somebody walking off the street."
Article Courtesy of WashingtonPost.com, By Dina ElBoghdady
Not long ago, you would have been charged about 8 percent interest on a loan that large -- if you could find a lender willing to grant you one.
Now, rates on these "jumbo" loans are much more affordable, having settled in the low 6 percent range, on average, for the past few weeks. But taking advantage of the lower rates remains tough. "Availability is still an issue, and the bar is higher in terms of down-payment requirements and credit scores," said Greg McBride, a senior financial analyst at Bankrate.com, a personal finance Web site.
After the mortgage market began unraveling in late 2007, rattled investors stopped buying jumbos. Instead, they turned to loans that met the requirements of mortgage financers Fannie Mae and Freddie Mac. At the time, the two companies did not buy loans that exceeded $417,000. Rates on loans larger than that shot up. And borrowers in pricey areas like Washington got shut out of the housing market or lost a chance to refinance.
To help lower borrowing costs, the federal government temporarily raised the limit for loans Fannie Mae and Freddie Mac could buy. Now the ceiling is $729,750 on single-family homes in some of the nation's most expensive counties, including many in the Washington region. The higher ceiling, due to expire Dec. 31, also applies to mortgages backed by the Federal Housing Administration.
To check the limits in your area, go to the Department of Housing and Urban Development Web page http://https://entp.hud.gov/idapp/html/hicostlook.cfm.
In areas where the $729,750 ceiling applies, there is now a three-tiered mortgage market. It is structured so that the size of the loan is a main factor in determining its rate.
On a 30-year, fixed-rate loan up to $417,000, the average rate this week was 5.44 percent, according to the research firm HSH Associates. The next best rates apply to loans from $417,000 to $729,750, which averaged 5.72 percent this week. Loans larger than that get hit with the highest rates, which averaged 6.37 percent for the week.
To avoid the highest rates, some borrowers are trying to stay beneath the $729,750 ceiling by taking out two loans while still making a down payment: one loan for $729,750 and another for the balance, said Kerry White, a loan officer at Prosperity Mortgage, a joint venture of Long & Foster and Wells Fargo.
These "piggyback" mortgages are difficult to arrange. But for those who can get them, they are generally a cheaper alternative than taking out a single jumbo loan because they do not expose borrowers to the same stringent credit-score, down-payment and savings requirements, White said. At Wells Fargo, for instance, a borrower willing to make a 20 percent down payment on a jumbo loan must also prove that he or she has enough savings to cover at least 40 percent of the loan amount, not including whatever is stashed away in retirement accounts, White said.
But getting a second loan is not as easy as it once was. In the past, when home prices were climbing, piggybacks enabled borrowers to avoid down payments by using two loans to cover the entire cost of a home. Many of these loans went bad when the housing market soured. Most lenders now demand a down payment and shy away from making second loans.
White managed to help a Washington area lawyer secure a second mortgage recently to help pay for a $2.5 million house. "But he got it only because he was putting 30 percent down," she said. "The small bank that made the second loan was comfortable with that."
These standards are not out of line with current norms, said Bob Walters, chief economist at the online mortgage firm Quicken Loans.
"Borrowers are going to be putting down 20 percent at the very least on a jumbo, and once [the loan amount] gets past $1.5 million, the down-payment requirements go to 30 percent and even 40 percent," Walters said. "The more you're borrowing, the more skin in the game you have to have."
The National Association of Realtors said these requirements have stalled the sales of high-priced homes and hampered the housing market's recovery. The supply of expensive homes is growing, adding to an already bloated housing market, the group said.
Meanwhile, the default rates among jumbo borrowers have been rising because those homeowners lack refinancing opportunities, the association said.
Against that backdrop, Bank of America sees opportunity.
In January, the company started offering jumbos with rates in the high 5 percent range for borrowers who pay one point, a fee equal to 1 percent of the loan that helps lower the rate charged. Borrowers who take out jumbos that are fixed for five years and then adjust every year thereafter are priced in the low 5 percent range. Those jumbo loans are limited to $1.5 million, and Bank of America plans to raise the amount to $2 million in the next few weeks.
"All of us have heard the same complaint: Jumbo buyers with good incomes and strong credit deserve better rates," Vijay Lala, a mortgage-product executive for the bank, said at a recent National Association of Realtors conference.
But anyone who takes out a loan for more than $1 million must have enough cash in reserve to cover at least a year's worth of principal and interest payments, Lala said. Borrowers must also show proof of income and assets to qualify.
Consumers who can meet these criteria have performed well historically, which is why Bank of America is willing to take a chance on them, Lala said.
Bank of America and most lenders that offer jumbos these days are holding on to them instead of selling them to investors, as they did about two years ago. That's because few investors are willing to buy them, said Keith Gumbinger, a vice president at the research firm HSH.
By keeping these loans in their own portfolios, lenders have discretion on what standards they want to impose on borrowers, so it pays to shop around, Gumbinger said. "Lenders can have very different ideas for what they find to be acceptable."
Don't limit your search to big banks, either, said Guy Cecala, publisher of Inside Mortgage Finance. Take a look at community banks.
"Generally, they would like to make a loan locally to someone they know," Cecala said. "You should milk any banking relationships you've got. People who keep their life savings at a community bank have more leverage than somebody walking off the street."
Article Courtesy of WashingtonPost.com, By Dina ElBoghdady
Wednesday, May 20, 2009
Atlanta Market Re-Setting
Atlanta (North) Trends for May...You may be surprised as to the value of a 4 bdrm, 2.5 bath home over the last 2 years and what it has re-set to! As the market re-sets, what are you doing to understand how it is shifting?
Check out this months Talk to Terry here!
Check out this months Talk to Terry here!
Tuesday, May 5, 2009
Bank Rally Prolongs Market's Winning Streak
I don't want to act as though this means we are on the rebound, but if you read the article, it shows that 19 of the large banks facing the stress test are passing! This, coupled with positive cash flows, could make lending become easier in the months ahead...SIGNIFICANT!!! Good article for those of you on the fence!
Wallstreet Journal Article
Wallstreet Journal Article
Tuesday, April 21, 2009
April Edition of Talk to Terry - Are we at the bottom?
The April Edition of TalkToTerry focuses on the changing environment around the North Atlanta Real Estate Market. Is the bottom forming? Is now the time to buy? Only time will tell, but watch for the clues!
Visit http://www.talktoterry.com/ to see this months (and any previous months) video!
Visit http://www.talktoterry.com/ to see this months (and any previous months) video!
Thursday, April 16, 2009
Results Has Great News to Share…First Quarter 2009 Stats are in!!
Bigger is not better…BETTER is better!!
Results is a family owned and operated company that has been in the Real Estate Business for 11 years. We are proud of our rankings as our position in the market place only improves while others are falling.
The Company was formed by the Mother and Son Team of Sarah and Terry Swanson, and is managed by Terry as the Qualifying Broker.
Results approach to Real Estate focuses on Determination, Drive, Passion, and Performance. The first Quarter of 2009 shows that we GET RESULTS!
***The important component to being #2 is that we did over 50% of the production Solid Source which has 2,100 agents!!! Our average agent production blows them away! We would rather have a smaller number of agents that are successful, vs. having any agent as a number for the company size.
**We have 6 of the top 100 agents for dollar volume sold in the North Atlanta Market!
Results is a family owned and operated company that has been in the Real Estate Business for 11 years. We are proud of our rankings as our position in the market place only improves while others are falling.
The Company was formed by the Mother and Son Team of Sarah and Terry Swanson, and is managed by Terry as the Qualifying Broker.
Results approach to Real Estate focuses on Determination, Drive, Passion, and Performance. The first Quarter of 2009 shows that we GET RESULTS!
**Results had SEVEN of the top 50 Agents for Forsyth!
**Results was #2 of all production for office category for Area North Fulton, Forsyth, and Gwinnett
***The important component to being #2 is that we did over 50% of the production Solid Source which has 2,100 agents!!! Our average agent production blows them away! We would rather have a smaller number of agents that are successful, vs. having any agent as a number for the company size.
Wednesday, April 8, 2009
A Wealth of Funding for First-Timers
It is no secret that Washington area housing is some of the most expensive in the country, but there's an array of programs designed to assist first-time home buyers.
First-time buyers should get themselves on every list they qualify for, Doug Myrick, the Arlington County homeownership coordinator, said at a recent panel discussion on affordability programs hosted by First Horizon National Corp., a lender.
These plans aren't reserved just for the poorest people. In recent years, the lack of "workforce" housing has propelled many jurisdictions to create programs to assist those with moderate incomes as well as county or city government employees, including teachers and police officers. For example, , a state program in Arlington County could help a single person making up to $86,500 a year buy a residence priced as high as $408,100. Income restrictions vary among jurisdictions and programs.
And there are many programs to help people with low to moderate incomes. The Virginia Housing Development Authority makes annual allocations to local jurisdictions for its Sponsoring Partnerships and Revitalizing Communities (SPARC) loans and HomeStride loans.
Jurisdictions tailor the programs to meet local needs and housing prices. In some Virginia jurisdictions, a purchaser could couple a SPARC loan with a HomeStride loan, which is a deferred payment second mortgage of up to $25,000. Other localities, such as Manassas, don't allow programs to be combined. Many places have additional programs; Alexandria has at least three others. In Maryland, residents apply for loans through approved lenders who then in essence sell the loans to the Maryland Department of Housing and Community Development.
Montgomery County has programs parallel to the state's. Frederick County is working toward implementing several programs aimed at expanding affordable housing, , said Jenny Short, the county's director for Housing and Community Development.
The District has a few programs. One is aimed specifically toward government employees; another is for police officers. First-time buyers in the District who meet income requirements are also eligible for a federal tax credit of up to $5,000.
Other jurisdictions also offer special programs for local government employees such as teachers, police officers and firefighters, as well as to those who work for participating employers. For instance, Maryland's "House Keys 4 Employees" plan matches up to $5,000 where the participating employer and employee would chip in $5,000 each. Arlington County is also partnering with seven local employers for a similar program.
The would-be buyer must follow the jurisdiction's process, which often includes a prescreening followed by several steps. In many cases, the purchaser must take an accredited home buying class. These are given by the government or by approved companies and nonprofit groups.
The federal government defines a first-time buyer as someone who has not owned a home within three years. All the programs require that participants live in the house as their primary residence.
Washington Post
By Sarah Abruzzese
---------------------
I'll keep posting relevant articles that will help keep you in the know!
First-time buyers should get themselves on every list they qualify for, Doug Myrick, the Arlington County homeownership coordinator, said at a recent panel discussion on affordability programs hosted by First Horizon National Corp., a lender.
These plans aren't reserved just for the poorest people. In recent years, the lack of "workforce" housing has propelled many jurisdictions to create programs to assist those with moderate incomes as well as county or city government employees, including teachers and police officers. For example, , a state program in Arlington County could help a single person making up to $86,500 a year buy a residence priced as high as $408,100. Income restrictions vary among jurisdictions and programs.
And there are many programs to help people with low to moderate incomes. The Virginia Housing Development Authority makes annual allocations to local jurisdictions for its Sponsoring Partnerships and Revitalizing Communities (SPARC) loans and HomeStride loans.
Jurisdictions tailor the programs to meet local needs and housing prices. In some Virginia jurisdictions, a purchaser could couple a SPARC loan with a HomeStride loan, which is a deferred payment second mortgage of up to $25,000. Other localities, such as Manassas, don't allow programs to be combined. Many places have additional programs; Alexandria has at least three others. In Maryland, residents apply for loans through approved lenders who then in essence sell the loans to the Maryland Department of Housing and Community Development.
Montgomery County has programs parallel to the state's. Frederick County is working toward implementing several programs aimed at expanding affordable housing, , said Jenny Short, the county's director for Housing and Community Development.
The District has a few programs. One is aimed specifically toward government employees; another is for police officers. First-time buyers in the District who meet income requirements are also eligible for a federal tax credit of up to $5,000.
Other jurisdictions also offer special programs for local government employees such as teachers, police officers and firefighters, as well as to those who work for participating employers. For instance, Maryland's "House Keys 4 Employees" plan matches up to $5,000 where the participating employer and employee would chip in $5,000 each. Arlington County is also partnering with seven local employers for a similar program.
The would-be buyer must follow the jurisdiction's process, which often includes a prescreening followed by several steps. In many cases, the purchaser must take an accredited home buying class. These are given by the government or by approved companies and nonprofit groups.
The federal government defines a first-time buyer as someone who has not owned a home within three years. All the programs require that participants live in the house as their primary residence.
Washington Post
By Sarah Abruzzese
---------------------
I'll keep posting relevant articles that will help keep you in the know!
Monday, March 30, 2009
Fed Keeps Hammer Down on Mortgage Rates
Sometimes we get lost in the immediate things around us, we forget some of the other things the Government has been working on, and how they are affecting our business today…
Great article…and very relevant!
The Government put into play in November the plan to buy Mortgage Backed Securities, and lend a hand to Freddie mac…well, this is one of the big reasons the rates have stayed low…
So, remember, the plans are being added today, and coupled with things of the past, will begin to put the floor in prices and stimulate more buyers to buy…if the homes are priced right!
Fed keeps hammer down on mortgage rates
Mortgage-backed securities purchases could reach $1.25 trillion
By Inman News, Thursday, March 19, 2009.
Inman News
In a bid to keep mortgage rates low, the Federal Reserve said Wednesday it will boost purchases of mortgage-backed securities this year to as much as $1.25 trillion -- a $750 billion increase from a previous commitment.
The move is part of a $1.15 trillion expansion of the Fed's balance sheet that's intended to encourage borrowing and revive the economy. Having effectively slashed short-term interest rates to zero, the Federal Open Market Committee is resorting to other means to stimulate growth.
In addition to stepping up purchases of mortgage-backed securities, the Fed said it would purchase up to $300 billion in long-term Treasury securities over the next six months, and doubled a previous commitment to buy $100 billion in debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
The move should give would-be homebuyers and those seeking to refinance confidence that mortgage interest rates will stay low for months to come. So far, the Fed has used up only $217 billion of a $600 billion program launched last fall to drive down mortgage interest rates.
In November, the Fed kicked off the program with a promise to buy up to $100 billion in debt from Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and $500 billion in mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. The program has been widely credited with bringing down interest rates on conventional, conforming mortgages to historic lows of around 5 percent.
Some economists worry that the Fed's growing obligations, along with other government spending and tax cuts intended to jump-start the economy, will spur inflation. The committee, which sets monetary policy, issued a statement saying the near-term outlook for the economy is "weak," and that members expect inflation to "remain subdued."
Great article…and very relevant!
The Government put into play in November the plan to buy Mortgage Backed Securities, and lend a hand to Freddie mac…well, this is one of the big reasons the rates have stayed low…
So, remember, the plans are being added today, and coupled with things of the past, will begin to put the floor in prices and stimulate more buyers to buy…if the homes are priced right!
Fed keeps hammer down on mortgage rates
Mortgage-backed securities purchases could reach $1.25 trillion
By Inman News, Thursday, March 19, 2009.
Inman News
In a bid to keep mortgage rates low, the Federal Reserve said Wednesday it will boost purchases of mortgage-backed securities this year to as much as $1.25 trillion -- a $750 billion increase from a previous commitment.
The move is part of a $1.15 trillion expansion of the Fed's balance sheet that's intended to encourage borrowing and revive the economy. Having effectively slashed short-term interest rates to zero, the Federal Open Market Committee is resorting to other means to stimulate growth.
In addition to stepping up purchases of mortgage-backed securities, the Fed said it would purchase up to $300 billion in long-term Treasury securities over the next six months, and doubled a previous commitment to buy $100 billion in debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
The move should give would-be homebuyers and those seeking to refinance confidence that mortgage interest rates will stay low for months to come. So far, the Fed has used up only $217 billion of a $600 billion program launched last fall to drive down mortgage interest rates.
In November, the Fed kicked off the program with a promise to buy up to $100 billion in debt from Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and $500 billion in mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae. The program has been widely credited with bringing down interest rates on conventional, conforming mortgages to historic lows of around 5 percent.
Some economists worry that the Fed's growing obligations, along with other government spending and tax cuts intended to jump-start the economy, will spur inflation. The committee, which sets monetary policy, issued a statement saying the near-term outlook for the economy is "weak," and that members expect inflation to "remain subdued."
Monday, March 23, 2009
March Edition of Talk to Terry Released!
Hello!
I just wanted to post a quick note and let you know that I have just released my monthly video on what's happening in the real estate market in both the North Atlanta Market and National Market. There is some new updates to my about me page including a new video.
Check it out! http://www.talktoterry.com/
Sincerely with PASSION,
Terry Swanson
I just wanted to post a quick note and let you know that I have just released my monthly video on what's happening in the real estate market in both the North Atlanta Market and National Market. There is some new updates to my about me page including a new video.
Check it out! http://www.talktoterry.com/
Sincerely with PASSION,
Terry Swanson
Monday, February 23, 2009
Links of Interest - Stopping the Forclosure Wave
Check out this link of interest. It shows other actions, outside of the first time homebuyer’s tax credit, that are being taken to shore up the foreclosure tidal wave everyone is fearing…this must be stopped, or the values could continue to drop, and lending only to become tighter…
The plan is not going to help those that were not being smart about what they were buying, or lending…that is good…if you were being stupid, there is no foreclosure protection for you is basically what the end states…
This will probably be the beginning of different things the Government will embark on to stop the foreclosure wave…it will not be the only step I am sure…
http://www.apnews.com/ap/db_6775/contentdetail.htm?contentguid=gluREL8h&src=cat&dbid=6775&dbname=Top+Stories&storycount=10&detailindex=2
Sincerely with PASSION!
The plan is not going to help those that were not being smart about what they were buying, or lending…that is good…if you were being stupid, there is no foreclosure protection for you is basically what the end states…
This will probably be the beginning of different things the Government will embark on to stop the foreclosure wave…it will not be the only step I am sure…
http://www.apnews.com/ap/db_6775/contentdetail.htm?contentguid=gluREL8h&src=cat&dbid=6775&dbname=Top+Stories&storycount=10&detailindex=2
Sincerely with PASSION!
Wednesday, February 18, 2009
Housing Stimulus Initiative
Hello All!
I just finished my last meeting this morning, and will be returning tomorrow...It has been GREAT!
As you are probably aware, the Housing Stimulus Initiative lead by Johnny Isackson was denied in the overall package, and they simply changed the original version of the $7,500 tax credit to first time homebuyers...
Here is what the changes, of what we understand right now, mean:
- $8,000 Tax Credit for FIRST TIME HOMEBUYERS only (increase of $500)
- Does NOT need to be paid back (considerable change)
- Begins on purchases as of January 1st, 2009
- Only available to an individual earning less than $75k, and couples up to $150k
That is a quick breakdown...Not at all what was hoped for, BUT there may be more to come...MAYBE!
NAR is lobbying to push a separate initiative specifically to address the housing situation...this will be pushed over the next two weeks.
Apparently, President Obama has indicated to NAR that the first step was to address the Economy, and then address the housing scenario.
NAR is working very close and hard to get other initiatives forward...they will probably not be exactly what we believe will stimulate enough, but every step will be a step further than where we are today...
Over the next week, the full details will be understood in clear detail, but for now, what is above is the closest I can get an understanding of...
THIS IS SOMETHING YOU NEED TO UNDERSTAND AND EMAIL TO YOUR FRIENDS AND CLIENTS!!!!!
Monday, January 26, 2009
Become a Student of the Game - AND WIN!
Believe it or not, there ARE buyers out there, and we will end 2008 with a sales pace to match between the numbers represented in the years 2002 and 2003. This will be somewhere in the low-to-mid 50,000 as far as transactions.
If you do some simple math…that would just mean that there needs to be fewer agents than there are today, and we will all be making the numbers we were making at that time…right? Theoretically, maybe, but the reality is that a big divide will be initiated; and it is going to happen sooner, rather than later.
You need to study the trends, talk the trends, use the tools to find the trends, and understand more today, than we ever have had to.
This does not have to be considered a huge task…it is actually engaging and interesting!
This week, I am dissecting the North Atlanta Corridor, and seeing what are some of the recent trends going on between new homes, retail, and institutional homes.
The Time Period = Contracts written Since 10/01/08
Areas = North Fulton (area 13, 14, 121), Gwinnett, and Forsyth
This is a broad look. You can get a lot more specific if you wish.
New Homes = Homes that were built in 2006 or later.
Institutional Homes = Homes that are owned by an entity (Banks, Corporations, etc)
North Fulton (area 13,14,121)
Total Contracted = 375
New = 47 (this pertains to homes built 2006 or newer)
Institutional = 79 (This included 7 new homes)
Forsyth
Total Contracted = 341
New = 129
Institutional = 83 (this includes 24 new homes)
Gwinnett
Total Contracted = 1,246
New = 281
Institutional = 655 (this includes 97 new homes)
What does all this mean?
The good news is that the number of sales is not that far off from last year’s production.
Inventory levels are coming down in each of the areas. Some of this is due to builders not building, banks not lending, and people deciding that now is not the time to try.
It really does not matter why…the bottom line is that the sooner the levels reach low enough, it will turn to a sellers market eventually…we are moving in the right direction!
Gwinnett had a HUGE number of foreclosures, and institutional homes that sold…a little more than HALF!
Realtors really need to perfect their game twice as much as they are going to war with…here is your example:
· 33% of the buyers in Gwinnett decided to buy a RETAIL home (this is a typical seller that owns their personal home and is selling it)
· 67% bought New homes or Institutional in Gwinnett
It is TOUGH, and you better be very bright to do business in Gwinnett and sell to the 33% of buyers that are buying Retail homes, or specialize in one of the arenas that is pulling the most sales
· 55% of the homes sold in Forsyth were New Homes or Institutional
· 31% of the sales in North Fulton were to New Homes or Institutional
Gwinnett seems to be leading the way with Institutional homes. It is tough to see if this is going to be a trend for the other areas, or if it is only a condition in Gwinnett.
What is clear is that Institutional homes are going to be the competition for some time. These will be lower priced homes that the entity selling is going to look to price them competitively to sell, and you will have to communicate with your sellers the reality…YOU ARE IN COMPETITION WITH FORECLOSURES, BANK OWNED, and CORPORATE OWNED homes…deal with it, or don’t sell today!
I had the pleasure of sitting in a woman’s home that said “I am not going to compete with the foreclosures and giveaway-homes, my home is better!” Her home has been on the market for ONE YEAR! She does not want to drop the price of her home…that is a big part of the oversupply right now, is the people that are sitting and hoping vs dealing with reality…
You have to change your pattern prior to the sellers changing theirs! Study the trends, find the trends, be the expert, and lead the sellers wherever they need to go…even if it means taking it off the market!
Wednesday, January 7, 2009
Bloom Where You Are Planted
This is the statement I read: “Bloom where you are planted.”
There are many choices you get to make in life, and a whole lot more you don’t get to choose.
The plant in this picture did not get to choose where it was planted…but it sure made the best out of it, and is apparently THRIVING where nobody would have reasoned it could!
You are planted…you are in North Atlanta…you are in Real Estate…whether you like it or not, you are planted!
Now, what are you going to do about it?
Think about our smart, and tougher-than-nails plant.
Are you a Knower or a Learner? This is going to be the question that when answered will determine who will be blooming, and who will not stand a chance in 2009.
The Knower would assume that there is no logical way that a plant could exist in such a dry, sloped, rocky area…they would not adapt, and would fade away, never seeing a chance, so why try?
The Learner (our little plant friend) researched with passion, and found the one spot that could possibly work…they owned the area, and had determination to make it the absolute best they could…they paid no attention to the knower and the negative remarks…
Do you see any other plants standing tall around our friend?
You will not be able to get me down about the market conditions, and what the future may hold…I know a lot in the game of real estate, but I constantly seek ways to improve my game today and for the challenges that are ahead…I AM planted…I AM a leaner…I AM blooming…Right here in the Real Estate Arena of North Atlanta!
Tuesday, December 30, 2008
OH YES! I am on a mission!
I have listened to the “Rocky” theme this morning, and Billy Squire…while jumping rope…in the office…MY BLOOD IS FLOWING!
I can’t wait to see what today brings…no, I can’t wait to see what I accomplish today! How are you feeling?
There is one thing that is going to separate the pack…your mental attitude combined with your actions!
Attached is my “open house diary” if you will. Read it…I just read it again, and am more fired up than I was yesterday!
Here is the problem:
Many of us have been sucked into a belief that nobody is doing anything that works…the problem is that you are most likely RIGHT! How many opportunities are slipping between the cracks because we are not out there doing the simple things that need to be done. If you are doing anything to generate business, you have the opportunity and time to do every step to the nth degree. That is the only way to correct your bank account…read the attachment…what would you have done, and what would you do?
So, I had one open house. I have seven POSSIBILITIES that have come from the open house. If I do nothing beyond last week, I will end up with the same…nothing.
None of the possibilities are related to the 2 hours I was in the home, they all circle around what I did outside of those hours, or what I will have to do beyond those hours.
I am going to be hitting the streets, and I am going to figure the mess out!
Remember, we are going to end the year up between the sales pace of 2002 and 2003…were those “bad years” in real estate? NO!
They say the strongest will survive…I have dusted off my real estate work out attire, and have begun my regimen…are you in with me?
Wednesday, December 17, 2008
Talk LIKE Terry
The market is changing! The problem with what we are facing is that nobody realized what the next wave was going to be…It is now the economy and joblessness that is our nemesis!
What can you do? You need to understand all of the factors that circle around the fears of people you may be dealing with. It is the absolute best time you could ever think of buying a home if you are in the position to do so…you have to feel this, and let go of your fear!
I have learned that if you ultimately worry so much about something, it will ultimately come true! This goes true for positive, steadfast visions too! Which path are you on? It is not too late to switch if you are on the wrong one…but you must make a decision to change!
This is going to break down some of the trends that are vitally important for you to be able to discuss with people and understand how to effectively communicate with someone.
Should you have any questions, or need more information, please contact me, and I will be more than happy to help!
The reality is that homes ARE selling! Maybe not as many as we would like to see, but they are selling…the key is to be that much smarter and take a bigger piece of the pie!
There is some good news for re-sales…there are very few builders building, and your new home supply is shrinking fast! Our inventory for Atlanta has dropped TWENTY THREE PERCENT from a little over a year ago! Study your area, and know it better than ANYBODY!
Wednesday, December 10, 2008
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