It's hard to be optimistic when pending sales for the month of November have hit a 7-year low, but you just have to try.
There are so many factors working against home buyers like strict lending standards, recession, rising unemployment and the likelihood that their currant home isn't selling and/or the value has dropped too much. Even historically low interest rates have only caused a lot of people to refinance their currant mortgage.
The bright side? Well, we can only go up from here, right? It will be slow, but it will be in the right direction.
http://money.cnn.com/2009/01/06/real_estate/pending_home/index.htm?postversion=2009010614
PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http//:www.TonyandLibby.com
Wednesday, January 7, 2009
Friday, January 2, 2009
Refinancing Frenzy
Interest rates have fallen recently, as most people are aware, and naturally people are rushing to refinance in order to reduce their housing payments.
The average rate for a 30-year, fixed mortgage dropped to 5.08% last week, according to the Mortgage Bankers Association, more than a full point lower than just a month ago.
Mortgage applications were up 48% last week, and by far, the majority of those were from homeowners looking to lower housing costs.
Refinancing is not for everyone however. If you currently have an adjustable rate, you could lower your rate by a percentage point or more, you do not plan on selling soon and/or you have significant equity then you should certainly look into getting a new home loan.
Those with an adjustable rate can save themselves a lot of trouble by turning it into a fixed rate while it is low so that future rate increases won't jeopardized their lifestyle.
Getting a lower rate is a really good idea but because of the fees and costs associated with a new loan, it really is only worth it if you are lowering your rate by a whole percentage point or more.
The balance of your loan will increase when you refinance and paying off the new extra will take a year or two, so it won't be so helpful if you plan on selling before then.
Some people lost much or all of their equity when home values fell. If your equity has fallen below 20% of the total appraised home value, the borrower will likely have to purchase private mortgage insurance. The insurance adds a point or two to the monthly mortgage costs erasing any advantage of refinancing.
http://money.cnn.com/2008/12/24/real_estate/when_to_refi/index.htm?postversion=2008122608
PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http//:www.TonyandLibby.com
The average rate for a 30-year, fixed mortgage dropped to 5.08% last week, according to the Mortgage Bankers Association, more than a full point lower than just a month ago.
Mortgage applications were up 48% last week, and by far, the majority of those were from homeowners looking to lower housing costs.
Refinancing is not for everyone however. If you currently have an adjustable rate, you could lower your rate by a percentage point or more, you do not plan on selling soon and/or you have significant equity then you should certainly look into getting a new home loan.
Those with an adjustable rate can save themselves a lot of trouble by turning it into a fixed rate while it is low so that future rate increases won't jeopardized their lifestyle.
Getting a lower rate is a really good idea but because of the fees and costs associated with a new loan, it really is only worth it if you are lowering your rate by a whole percentage point or more.
The balance of your loan will increase when you refinance and paying off the new extra will take a year or two, so it won't be so helpful if you plan on selling before then.
Some people lost much or all of their equity when home values fell. If your equity has fallen below 20% of the total appraised home value, the borrower will likely have to purchase private mortgage insurance. The insurance adds a point or two to the monthly mortgage costs erasing any advantage of refinancing.
http://money.cnn.com/2008/12/24/real_estate/when_to_refi/index.htm?postversion=2008122608
PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http//:www.TonyandLibby.com
Tuesday, December 16, 2008
$1 - $750 mil
I just thought these two articles were more interesting when put together.
There are some areas of Detroit that are going into forclosure where the banks are just giving up and selling for $300, $100 even $1! The closing costs and broker's fees add up to much more than that! Even the property taxes are around $3,000! If they are lucky those areas will turn around someday in the future and it will be a worth while investment. Otherwise, at least it didn't cost much.
http://www.foreclosure-support.com/wp/article-0820131.html
A home in the French Riviera was just sold for $750 million dollars. It has broken a world record (it better have!) and just the commission alone could set someone up for life. The amount of the property taxes would have a family living very comfortably. I cannot even figure out how many foreclosures you could buy in Detroit with the downpayment!
http://www.huffingtonpost.com/2008/08/11/villa-leopolda-sold-for-7_n_118112.html
PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http//:www.TonyandLibby.com
There are some areas of Detroit that are going into forclosure where the banks are just giving up and selling for $300, $100 even $1! The closing costs and broker's fees add up to much more than that! Even the property taxes are around $3,000! If they are lucky those areas will turn around someday in the future and it will be a worth while investment. Otherwise, at least it didn't cost much.
http://www.foreclosure-support.com/wp/article-0820131.html
A home in the French Riviera was just sold for $750 million dollars. It has broken a world record (it better have!) and just the commission alone could set someone up for life. The amount of the property taxes would have a family living very comfortably. I cannot even figure out how many foreclosures you could buy in Detroit with the downpayment!
http://www.huffingtonpost.com/2008/08/11/villa-leopolda-sold-for-7_n_118112.html
PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http//:www.TonyandLibby.com
Friday, December 12, 2008
November Market Report
November Residential Highlights
Sales activity continued to slow in the Portland metro area during November. The number of closed sales dropped 39.9% compared to last November. The 1,041 sold properties was the lowest sales total since February 1993. Pending sales also fell 31.7% compared to last November. New listings decreased 20.2%. Comparing November 2008 to October 2008, new listings dropped 25.5% (2,687 v. 3,605). Pending sales declined 12.6% (1,108 v. 1,268) and closed sales were down 28.9% (1,041 v. 1,465). The inventory of homes grew to a record 15 months, assuming that the 15,611 active residential listings are sold at the month’s rate of sales (1,041).
Year-to-Date
Comparing January-November of 2008 to the same time period in 2007 there have been 31.8% less closed sales and 30.5% fewer pending sales this year. Additionally, there was a 8.3% decrease in the number new listings.
Sale Prices
The average sale price for November 2008 was down 10.5% compared to November 2007, while the median sale price dropped 7%. Month-to-month, the average sale price and median sale price are both down when compared with October levels; the average sale price dropped 4.9% ($308,300 v. $324,300) and the median sale price was down 3.6% ($265,000 v. $275,000).
PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http/:www.TonyandLibby.com
Sales activity continued to slow in the Portland metro area during November. The number of closed sales dropped 39.9% compared to last November. The 1,041 sold properties was the lowest sales total since February 1993. Pending sales also fell 31.7% compared to last November. New listings decreased 20.2%. Comparing November 2008 to October 2008, new listings dropped 25.5% (2,687 v. 3,605). Pending sales declined 12.6% (1,108 v. 1,268) and closed sales were down 28.9% (1,041 v. 1,465). The inventory of homes grew to a record 15 months, assuming that the 15,611 active residential listings are sold at the month’s rate of sales (1,041).
Year-to-Date
Comparing January-November of 2008 to the same time period in 2007 there have been 31.8% less closed sales and 30.5% fewer pending sales this year. Additionally, there was a 8.3% decrease in the number new listings.
Sale Prices
The average sale price for November 2008 was down 10.5% compared to November 2007, while the median sale price dropped 7%. Month-to-month, the average sale price and median sale price are both down when compared with October levels; the average sale price dropped 4.9% ($308,300 v. $324,300) and the median sale price was down 3.6% ($265,000 v. $275,000).
PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http/:www.TonyandLibby.com
Tuesday, December 9, 2008
The REAL Victims
There are those out there getting hit but the housing crisis even though they pay their bill in full each and every month. These victims are called tenants and are getting blind sighted by sudden evictions all across the country. And in a lot of states they have no recourse.
This isn't just apartment buildings either. There are single-family homes that families with small children have been renting for years with no notion that they should be making other plans.
In the majority of cases the lender dealing with the foreclosure is not putting in too much effort to find out who the tenants are so they can be informed. So when the police arrive at their door to get them out, it is the first they have heard about it. Some cities have even suspended tenant evictions because the numbers of victimized tenants was out of control.
There are actually landlords out there who not only did not bother to inform their tenants, but kept collecting rent money after ownership had been transferred to the bank. One owner even had his tenants sign a brand new lease after the foreclosure was final.
Legally this needs to be looked at. This did not used to be an everyday occurrence but now it really needs attention. I personally think it should be up to the owners to inform the tenants that changes are coming. I don't know how this is not already a legal requirement. The lender, as the new owner also has some responsibility since it is now their property but perhaps more as a back up because it's the owner who got the loan they couldn't pay. These tenants should then be over-informed, first by the landlord, then by the new owner.
http://money.cnn.com/2008/12/08/real_estate/tenant_foreclosure_victims/index.htm?postversion=2008120909
PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http//:www.TonyandLibby.com
This isn't just apartment buildings either. There are single-family homes that families with small children have been renting for years with no notion that they should be making other plans.
In the majority of cases the lender dealing with the foreclosure is not putting in too much effort to find out who the tenants are so they can be informed. So when the police arrive at their door to get them out, it is the first they have heard about it. Some cities have even suspended tenant evictions because the numbers of victimized tenants was out of control.
There are actually landlords out there who not only did not bother to inform their tenants, but kept collecting rent money after ownership had been transferred to the bank. One owner even had his tenants sign a brand new lease after the foreclosure was final.
Legally this needs to be looked at. This did not used to be an everyday occurrence but now it really needs attention. I personally think it should be up to the owners to inform the tenants that changes are coming. I don't know how this is not already a legal requirement. The lender, as the new owner also has some responsibility since it is now their property but perhaps more as a back up because it's the owner who got the loan they couldn't pay. These tenants should then be over-informed, first by the landlord, then by the new owner.
http://money.cnn.com/2008/12/08/real_estate/tenant_foreclosure_victims/index.htm?postversion=2008120909
PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http//:www.TonyandLibby.com
Friday, December 5, 2008
Great Rates!
Rate Update 11/26/2008
WOW!! The Federal Reserve and Treasury rolled out an $800 billion dollar plan that includes buying up some $600 billion in debt tied to mortgages. This news obviously carried over into mortgages rates. Interest rates fell about 1 whole point to 5.25% today!! Lets get some buyers!! This is a fantastic opportunity for buyers who have been sitting on the sidelines waiting for a good reason to buy.
Conforming and FHA
5.25% 30 yr fixed
5.0% 15 year fixed
5.75% 5 yr ARM
Jumbo/Conforming Rates $50K to $5 million on Primary and 2nd Homes
5.375 % 5 yr ARM – IO add .25% to rate
5.875 % 7 yr ARM – IO add .25 to rate
6.375% 10 yr ARM – IO no add to rate
6.25% 30 yr Fixed to 600k!!
Stated Income to $ 2 million on Primary and 2nd Homes
5.75% 3 yr ARM - Interest Only available with no add to rate
6.0% 5 yr ARM - Interest Only available with no add to rate
6.25% 7 yr ARM - Interest Only available with no add to rate
6.5% 10 yr ARM - Interest Only available with no add to rate
Non Owner Occupied 1-4 Units to $1.5 million
6.0% 3 yr ARM - Interest Only available with no add to rate
6.25% 5 yr ARM - Interest Only available with no add to rate
6.5% 7 yr ARM - Interest Only available with no add to rate
6.625% 10 yr ARM - Interest Only available with no add to rate
Provided by...
Clint Elliott
NewLine Home Mortgage
1400 NW Irving #108
Portland, Or 97209
888-488-5731 toll free
503-548-4014 local
Wednesday, November 26, 2008
Check This Out
I just wanted to share with people a really great Portland blog by Ron Ares. It just has some good stuff on it so I encourage you to check it out. Particularly the sections, NAR Releases Q3 Numbers and Oregon Holds Head Above Water. Both great reads!
http://www.repdx.com/
PLEASE CHECK OUT OUR NEW PODCAST ON THE HOMEPAGE OF OUR WEBSITE http//:www.TonyandLibby.com
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