Reminiscing of 2007 brings a smile to my face knowing that I have help a lot of people find their dream homes and or selling their use-to-be dream home and finding a new one. I want to take this time to thank all of you, my friends, for giving me the opportunity to serve you. I want to thank you for the confidence that you had in me, knowing that I would get the job done the right way the first time. I want to express my sincere thanks to those of you who sent me testimonials that I could use on my web site.
2008 is going to be a very successful year. I look forward in working with any one of you that are reading this, wanting to find a honest, straight forward, and above all a very hard working Realtor.
Sincerely
Dale Dansie
Sunday, December 30, 2007
Friday, December 21, 2007
Positive news for Real Estate in '08
In spite of gloom and doom of recent news reports on the state of the nation's housing, there is plenty of good news, the most recent of which comes from the National Association of Realtors.
Laurence Yun, the chief economist for NAR, had plenty of positive news at last month's conference. Yun attributed much of today's subprime mortgage problem to greed. Wall Street wanted the 10-12 percent return that subprime mortgages yielded as opposed to the smaller returns from more traditional mortgage products. His take on the Wall Street types: "They gambled. They lost."
Yun's outlook for 2008 sees a shift from greedy speculators to serious homeowners. 2008 will be a year of opportunity where there will be serious, healthy business. Furthermore, Yun predicted that the market returns to normal by 2009.
According to Yun, one of the biggest mistakes that reporters make is talking about national trends. Nationally, 2007 was the fifth best year ever on record. Home prices declined about 1.5 percent after a 50 percent run up in prices.
The challenge is that national numbers are pretty much irrelevant. Yun argues that talking about national averages is about as effective as having a national weather forecast. Like the weather, all real estate markets are local. In fact, you may have a buyer's market and a seller's market operating within a single market area based exclusively upon price point. Here are the other key pieces of positive news from Yun's economic report:
1. New housing starts: Even though these are dropping, there was too much building in recent years. The market is simply adjusting to normal supply-and-demand pressures. The inventory is "being controlled which makes stabilization occur more quickly."
2. Foreclosures: According to Yun, the 41 percent increase in foreclosures has resulted primarily from investor-heavy real estate purchases in Arizona, California, Florida and Nevada. The majority of these individuals are flippers whose investments did not payoff. More importantly, the number of foreclosures in Utah, New Mexico, North Carolina and South Carolina is actually declining.
3. Under-priced markets and superstar cities: Although the coastal markets are still overpriced, Middle America is under priced. Nevertheless, Yun cites a new trend termed, "superstar" cities. These cities will command premium prices, regardless of what the market does. There is so much wealth concentrated in these areas, that measurements are simply not predictive. In addition to London, Paris, Tokyo and New York, Yun also identified San Francisco, Miami and Seattle as potential new superstar cities.
4. The recovery has started: Other than the three states hit heavily by job losses in the automotive industry (Indiana, Michigan and Ohio), the states that first experienced a downturn in the Northeast, are now in recovery. Specifically, Connecticut, Massachusetts, New York and Rhode Island were the first to feel the slump and are now well into a recovery. Furthermore, there appears to be a pent-up demand for first-time buyer properties due to a large number of Gen Ys (born 1977 to 1994) that are now buying their first homes. Falling interest rates will motivate many of these buyers to step into the market now.
5. New jobs and corporate profits are still strong: Corporate profits are still strong with companies as diverse as Microsoft and Jack Daniels reporting close to record profits. Furthermore, the economy has generated 4 million net new jobs and wages are rising.
6. A weak dollar may harbinger more foreign investment in U.S. real estateAlthough the decline of the U.S. dollar will end up costing us more when we go overseas or purchase imports, it has resulted in more manufacturing jobs returning to the U.S. It also may mean more foreign investment in U.S. properties as well. Just a few years ago, the Canadian dollar was only worth 70 cents in U.S. currency. Today, the Canadian dollar has been hovering at about $1.05 to $1.10 U.S. What this means is that we can expect more Canadians and Europeans to be purchasing U.S. property, because our prices are approximately 50 percent cheaper than they were just three years ago.
7. Real estate: Still the best shelter: For those agents who represent reluctant first-time buyers, Yun points to some interesting research from the Federal Reserve. Between 1995 and 2004, the average renter accumulated $4,000 in wealth. In contrast, the average homeowner accumulated $184,400. Furthermore, the typical homeowner holds their property for six years. Within this period of time, NAR's research shows that approximately 97 percent of the homeowners will have a positive equity position after that period of time.
Bottom line: 2008 represents the best window that buyers will have to find excellent deals with excellent financing.
By Bernice Ross - Inman News
Laurence Yun, the chief economist for NAR, had plenty of positive news at last month's conference. Yun attributed much of today's subprime mortgage problem to greed. Wall Street wanted the 10-12 percent return that subprime mortgages yielded as opposed to the smaller returns from more traditional mortgage products. His take on the Wall Street types: "They gambled. They lost."
Yun's outlook for 2008 sees a shift from greedy speculators to serious homeowners. 2008 will be a year of opportunity where there will be serious, healthy business. Furthermore, Yun predicted that the market returns to normal by 2009.
According to Yun, one of the biggest mistakes that reporters make is talking about national trends. Nationally, 2007 was the fifth best year ever on record. Home prices declined about 1.5 percent after a 50 percent run up in prices.
The challenge is that national numbers are pretty much irrelevant. Yun argues that talking about national averages is about as effective as having a national weather forecast. Like the weather, all real estate markets are local. In fact, you may have a buyer's market and a seller's market operating within a single market area based exclusively upon price point. Here are the other key pieces of positive news from Yun's economic report:
1. New housing starts: Even though these are dropping, there was too much building in recent years. The market is simply adjusting to normal supply-and-demand pressures. The inventory is "being controlled which makes stabilization occur more quickly."
2. Foreclosures: According to Yun, the 41 percent increase in foreclosures has resulted primarily from investor-heavy real estate purchases in Arizona, California, Florida and Nevada. The majority of these individuals are flippers whose investments did not payoff. More importantly, the number of foreclosures in Utah, New Mexico, North Carolina and South Carolina is actually declining.
3. Under-priced markets and superstar cities: Although the coastal markets are still overpriced, Middle America is under priced. Nevertheless, Yun cites a new trend termed, "superstar" cities. These cities will command premium prices, regardless of what the market does. There is so much wealth concentrated in these areas, that measurements are simply not predictive. In addition to London, Paris, Tokyo and New York, Yun also identified San Francisco, Miami and Seattle as potential new superstar cities.
4. The recovery has started: Other than the three states hit heavily by job losses in the automotive industry (Indiana, Michigan and Ohio), the states that first experienced a downturn in the Northeast, are now in recovery. Specifically, Connecticut, Massachusetts, New York and Rhode Island were the first to feel the slump and are now well into a recovery. Furthermore, there appears to be a pent-up demand for first-time buyer properties due to a large number of Gen Ys (born 1977 to 1994) that are now buying their first homes. Falling interest rates will motivate many of these buyers to step into the market now.
5. New jobs and corporate profits are still strong: Corporate profits are still strong with companies as diverse as Microsoft and Jack Daniels reporting close to record profits. Furthermore, the economy has generated 4 million net new jobs and wages are rising.
6. A weak dollar may harbinger more foreign investment in U.S. real estateAlthough the decline of the U.S. dollar will end up costing us more when we go overseas or purchase imports, it has resulted in more manufacturing jobs returning to the U.S. It also may mean more foreign investment in U.S. properties as well. Just a few years ago, the Canadian dollar was only worth 70 cents in U.S. currency. Today, the Canadian dollar has been hovering at about $1.05 to $1.10 U.S. What this means is that we can expect more Canadians and Europeans to be purchasing U.S. property, because our prices are approximately 50 percent cheaper than they were just three years ago.
7. Real estate: Still the best shelter: For those agents who represent reluctant first-time buyers, Yun points to some interesting research from the Federal Reserve. Between 1995 and 2004, the average renter accumulated $4,000 in wealth. In contrast, the average homeowner accumulated $184,400. Furthermore, the typical homeowner holds their property for six years. Within this period of time, NAR's research shows that approximately 97 percent of the homeowners will have a positive equity position after that period of time.
Bottom line: 2008 represents the best window that buyers will have to find excellent deals with excellent financing.
By Bernice Ross - Inman News
Wednesday, December 19, 2007
Americans Back Stronger Regulation Of the Mortgage Industry
A plurality of Americans say the government shouldn't provide financial assistance to borrowers who can't afford their mortgages, a new poll shows. But 41% agree strongly that mortgage brokers should be better regulated.
According to the Wall Street Journal Online/Harris Interactive poll, conducted Dec. 10-12, a quarter of respondents agree that the government should provide financial help for mortgage holders, while 20% disagree and another 22% strongly disagree.
The survey of 2,082 U.S. adults, of whom 1,331 are homeowners, shows a strong consensus that mortgage brokers should be better regulated to make sure borrowers obtain only those mortgages they can afford; 41% strongly agree, 23% somewhat agree and only 7% disagree.
When asked who's most responsible for the trouble in the housing market and mortgage business, half blamed mortgage lenders and brokers, while 21% said government regulators are responsible and 16% said home buyers are to blame.
Nearly half of those surveyed also say direct lenders are most responsible for making sure borrowers are able to pay their mortgages and that they should be required to modify loan terms for mortgage holders who can't afford their current terms. By comparison, 15% disagree and 24% said they neither agree nor disagree.
Several policy moves are under way to help struggling homeowners, including a plan to freeze interest rates for some subprime mortgage borrowers and the Federal Reserve's move to offer banks special funding at lower-than-usual rates so they can lend more.
However, Americans are divided on whether direct lenders are responsible for borrowers who "invested recklessly or bought more house than they could afford," with 34% agreeing, 35% disagreeing and 21% saying they neither agree nor disagree.
Twenty-two percent of those polled say a freeze on rates for adjustable mortgages will unfairly penalize mortgage investors, compared with 31% who feel it won't. Thirty-seven percent believe a rate freeze will unfairly reward borrowers who made bad financial decisions, compared with 21% who disagree.
Despite reports of a wave in home foreclosures, only 2% of respondents with a mortgage said they have missed several mortgage payments or have been in the foreclosure process.
In fact, few of those surveyed expect the current mortgage crisis will have an impact on the sale or financing of their home: 7% said they expect to have difficulty obtaining a mortgage or refinancing a mortgage and 14% plan to delay the sale or purchase of a home, while 2% plan to lower the asking price of the home they are selling.
Likewise, the poll shows steadfast optimism in the face of widespread concerns about a housing slowdown. Nearly half (48%) of homeowners say the value of their home at least moderately increased in 2007 and 41% are optimistic that its value will increase over the coming year, despite the recent slowdown in the U.S. housing market. Only 15% of homeowners responding to the poll believe their home's value will decrease in the coming year, including 1% who think it will decrease significantly.
When asked if their most recent mortgage is "subprime," 58% said it isn't, 10% said "yes," and nearly a third of mortgage holders said they don't know if their current mortgage is considered to be subprime. Among those with household income less than $35k, 47% are unsure whether their mortgage is subprime, compared with 21% of those with income $75k or higher.
About half (47%) of respondents who have a mortgage on their home say they obtained it through a direct lender, while nearly a third obtained their mortgage from a mortgage broker. Homeowners with higher incomes are more likely to say they obtained their last mortgage through a direct lender and those with household income less than $35K are more likely to have used a mortgage broker.
Eight percent of mortgage holders say they chose their particular mortgage because of "speed or less paperwork," while another 8% cited easier qualification. Only 6% said "it was the only loan they qualified for, and 2% said they didn't mean to choose that particular mortgage.
Only 7% of mortgage holders believe they were misinformed or otherwise misled by their mortgage broker or loan officer about the terms of their loan, compared with 85% who feel they weren't misled or misinformed. Among younger mortgage holders ages 18 to 34, 13% believe they were misinformed and 17% say they aren't sure.
Source: RealEstateJournal.com
According to the Wall Street Journal Online/Harris Interactive poll, conducted Dec. 10-12, a quarter of respondents agree that the government should provide financial help for mortgage holders, while 20% disagree and another 22% strongly disagree.
The survey of 2,082 U.S. adults, of whom 1,331 are homeowners, shows a strong consensus that mortgage brokers should be better regulated to make sure borrowers obtain only those mortgages they can afford; 41% strongly agree, 23% somewhat agree and only 7% disagree.
When asked who's most responsible for the trouble in the housing market and mortgage business, half blamed mortgage lenders and brokers, while 21% said government regulators are responsible and 16% said home buyers are to blame.
Nearly half of those surveyed also say direct lenders are most responsible for making sure borrowers are able to pay their mortgages and that they should be required to modify loan terms for mortgage holders who can't afford their current terms. By comparison, 15% disagree and 24% said they neither agree nor disagree.
Several policy moves are under way to help struggling homeowners, including a plan to freeze interest rates for some subprime mortgage borrowers and the Federal Reserve's move to offer banks special funding at lower-than-usual rates so they can lend more.
However, Americans are divided on whether direct lenders are responsible for borrowers who "invested recklessly or bought more house than they could afford," with 34% agreeing, 35% disagreeing and 21% saying they neither agree nor disagree.
Twenty-two percent of those polled say a freeze on rates for adjustable mortgages will unfairly penalize mortgage investors, compared with 31% who feel it won't. Thirty-seven percent believe a rate freeze will unfairly reward borrowers who made bad financial decisions, compared with 21% who disagree.
Despite reports of a wave in home foreclosures, only 2% of respondents with a mortgage said they have missed several mortgage payments or have been in the foreclosure process.
In fact, few of those surveyed expect the current mortgage crisis will have an impact on the sale or financing of their home: 7% said they expect to have difficulty obtaining a mortgage or refinancing a mortgage and 14% plan to delay the sale or purchase of a home, while 2% plan to lower the asking price of the home they are selling.
Likewise, the poll shows steadfast optimism in the face of widespread concerns about a housing slowdown. Nearly half (48%) of homeowners say the value of their home at least moderately increased in 2007 and 41% are optimistic that its value will increase over the coming year, despite the recent slowdown in the U.S. housing market. Only 15% of homeowners responding to the poll believe their home's value will decrease in the coming year, including 1% who think it will decrease significantly.
When asked if their most recent mortgage is "subprime," 58% said it isn't, 10% said "yes," and nearly a third of mortgage holders said they don't know if their current mortgage is considered to be subprime. Among those with household income less than $35k, 47% are unsure whether their mortgage is subprime, compared with 21% of those with income $75k or higher.
About half (47%) of respondents who have a mortgage on their home say they obtained it through a direct lender, while nearly a third obtained their mortgage from a mortgage broker. Homeowners with higher incomes are more likely to say they obtained their last mortgage through a direct lender and those with household income less than $35K are more likely to have used a mortgage broker.
Eight percent of mortgage holders say they chose their particular mortgage because of "speed or less paperwork," while another 8% cited easier qualification. Only 6% said "it was the only loan they qualified for, and 2% said they didn't mean to choose that particular mortgage.
Only 7% of mortgage holders believe they were misinformed or otherwise misled by their mortgage broker or loan officer about the terms of their loan, compared with 85% who feel they weren't misled or misinformed. Among younger mortgage holders ages 18 to 34, 13% believe they were misinformed and 17% say they aren't sure.
Source: RealEstateJournal.com
Tuesday, December 18, 2007
Tidbit of Trivia
The real estate board game Monopoly was invented in 1934 by Charles B. Darrow. His first version of the game was rejected by Parker Brothers due to design flaws. After Darrow sold 5,000 handmade sets of the game to a Philadelphia department store, Parker Brothers agreed to sell the game. Since then, over 200 million Monopoly games have been sold worldwide.
Thursday, December 6, 2007
Overnight real estate rates reverse course
30-year fixed rate increases to 5.61%; 10-year Treasury yield at 3.96%
Long-term mortgage interest rates ticked up Wednesday, and the benchmark 10-year Treasury bond yield increased to 3.96 percent.
The 30-year fixed-rate average increased to 5.61 percent, and the 15-year fixed rate edged up to 5.18 percent. The 1-year adjustable rate increased to 5.48 percent.
The 30-year Treasury bond yield was also up at 4.44 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
Long-term mortgage interest rates ticked up Wednesday, and the benchmark 10-year Treasury bond yield increased to 3.96 percent.
The 30-year fixed-rate average increased to 5.61 percent, and the 15-year fixed rate edged up to 5.18 percent. The 1-year adjustable rate increased to 5.48 percent.
The 30-year Treasury bond yield was also up at 4.44 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
Tuesday, December 4, 2007
Curb appeal projects return most value for homeowners
Remodeling report details most profitable home projects
Every penny counts for homeowners and home sellers in a slumping housing market and those looking to remodel will consider the return on value of specific projects.
Three of the four projects with the highest national percentage of costs recouped this year were exterior upgrades, according to the report produced by Hanley Wood LLC in cooperation with Realtor Magazine.
The most profitable project on the national level was upscale siding replacement, recouping 88 percent of costs upon resale. Wood deck additions and wood window replacements also returned more than 80 percent of costs, at 85 percent and 81 percent, respectively. On a national average, the only interior project to return more than 80 percent of remodeling costs this year was a minor kitchen remodel, returning 83 percent of project costs at resale.
The 2007 Remodeling Cost vs. Value Report compares construction costs with resale values for 29 midrange and upscale remodeling projects comprising additions, remodels and replacements in 60 markets across the country. Data are provided for nine U.S. regions, following the divisions established by the U.S. Census Bureau. (See http://www.costvsvalue.com/.)
A home's curb appeal is at the top of most profitable remodeling projects, according to a report out this week that details remodeling costs versus value.
Every penny counts for homeowners and home sellers in a slumping housing market and those looking to remodel will consider the return on value of specific projects.
Three of the four projects with the highest national percentage of costs recouped this year were exterior upgrades, according to the report produced by Hanley Wood LLC in cooperation with Realtor Magazine.
The most profitable project on the national level was upscale siding replacement, recouping 88 percent of costs upon resale. Wood deck additions and wood window replacements also returned more than 80 percent of costs, at 85 percent and 81 percent, respectively. On a national average, the only interior project to return more than 80 percent of remodeling costs this year was a minor kitchen remodel, returning 83 percent of project costs at resale.
The 2007 Remodeling Cost vs. Value Report compares construction costs with resale values for 29 midrange and upscale remodeling projects comprising additions, remodels and replacements in 60 markets across the country. Data are provided for nine U.S. regions, following the divisions established by the U.S. Census Bureau. (See http://www.costvsvalue.com/.)
Monday, December 3, 2007
30-year fixed rate at 5.69%; 10-year Treasury yield at 3.95%
Long-term mortgage interest rates fell for the fifth night Friday, and the benchmark 10-year Treasury bond yield inched up to 3.95 percent.
The 30-year fixed-rate average sank to 5.69 percent, and the 15-year fixed rate dipped to 5.27 percent. The 1-year adjustable slipped to 5.47 percent.
The 30-year Treasury bond yield was up at 4.39 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
Source Inman News
The 30-year fixed-rate average sank to 5.69 percent, and the 15-year fixed rate dipped to 5.27 percent. The 1-year adjustable slipped to 5.47 percent.
The 30-year Treasury bond yield was up at 4.39 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
Source Inman News
Thursday, November 29, 2007
ARMs Control: How to Avoid Mortgage-Reset Grief
Pay attention to the details if you have an adjustable-rate mortgage. Many three-year ARMs are due to reset to higher rates over the next 18 months, and many homeowners aren't prepared.
ARMs are mortgage loans with payments based on indexes that adjust periodically. The amount due each month may go up several times over the life of the loan.Many people with ARMs still don't know when their ARMs reset, what the new rates will be or whether they face prepayment penalties, according to Allen Fishbein, director of housing and credit policy at the Consumer Federation of America. "We've been recommending for a long time that people pull out their mortgage-loan documents so that they really understand the terms," Mr. Fishbein said.
Richard Musci, vice president of Charles Schwab Bank, says mortgage lenders as a group don't make it easy for homeowners by flagging a reset. But now, "More of us will be reaching out to clients and saying, 'Hey, this event is coming up.'" Look at the timetable for resets and at what the new rates will be, and think hard about whether you can manage the payments, he added. Make sure you know if rates will reset more than once, too.
Now's the time to think it all through. Don't wait until the loan resets or even until a few months before that to start watching interest rates and thinking about refinancing, said Mr. Fishbein.
Time to Go 'Fixed'?
Staying with an ARM isn't the best route for everyone. As the recent credit crisis has revealed, many people who got ARMs in recent years weren't able to sustain the rate resets. They may have been able to make payments initially, but not once rates went higher. "For most people of average income, a fixed-rate mortgage makes sense," said Mr. Fishbein.
These loans give the peace of mind of monthly payments that are set, not escalating. The trade-off is that long-term financing typically costs more. So the homeowner may pay more to lock in a rate but the approach pays off if interest rates go higher. Caveat: The difference between ARMs and fixed-rate mortgages isn't always huge, so compare costs.
Adjustable-rate mortgages are still good for some people who don't plan to stay long in a house, or for high earners who are willing to trade off lower rates today with possibly higher rates in the future, according to Mr. Musci.
"There are plenty of people who knowingly went into ARMs for the right reasons," he said.
By Arden Dale From The Wall Street Journal Online
ARMs are mortgage loans with payments based on indexes that adjust periodically. The amount due each month may go up several times over the life of the loan.Many people with ARMs still don't know when their ARMs reset, what the new rates will be or whether they face prepayment penalties, according to Allen Fishbein, director of housing and credit policy at the Consumer Federation of America. "We've been recommending for a long time that people pull out their mortgage-loan documents so that they really understand the terms," Mr. Fishbein said.
Richard Musci, vice president of Charles Schwab Bank, says mortgage lenders as a group don't make it easy for homeowners by flagging a reset. But now, "More of us will be reaching out to clients and saying, 'Hey, this event is coming up.'" Look at the timetable for resets and at what the new rates will be, and think hard about whether you can manage the payments, he added. Make sure you know if rates will reset more than once, too.
Now's the time to think it all through. Don't wait until the loan resets or even until a few months before that to start watching interest rates and thinking about refinancing, said Mr. Fishbein.
Time to Go 'Fixed'?
Staying with an ARM isn't the best route for everyone. As the recent credit crisis has revealed, many people who got ARMs in recent years weren't able to sustain the rate resets. They may have been able to make payments initially, but not once rates went higher. "For most people of average income, a fixed-rate mortgage makes sense," said Mr. Fishbein.
These loans give the peace of mind of monthly payments that are set, not escalating. The trade-off is that long-term financing typically costs more. So the homeowner may pay more to lock in a rate but the approach pays off if interest rates go higher. Caveat: The difference between ARMs and fixed-rate mortgages isn't always huge, so compare costs.
Adjustable-rate mortgages are still good for some people who don't plan to stay long in a house, or for high earners who are willing to trade off lower rates today with possibly higher rates in the future, according to Mr. Musci.
"There are plenty of people who knowingly went into ARMs for the right reasons," he said.
By Arden Dale From The Wall Street Journal Online
Wednesday, November 28, 2007
What bubble? Places where housing is hot
Ten areas where job growth, weather help keep the market humming along.
Home prices nationwide posted their biggest drop in 16 years last month, according to the National Association of Realtors.
But someone forgot to tell the folks in Salt Lake City. There, the median home sale price jumped 21 percent in the second quarter this year, versus the same period last year.
It's not that Salt Lake City is entirely immune to the national housing downturn. In fact, new housing permits are down this year, and there is a glut of Macmansions, says John Taylor, investment specialist at Commerce CRG, a unit of developer Cushman & Wakefield. But with more people moving into the area, thanks in part to a percolating job market, demand for affordable existing homes is still healthy, while commercial construction is up 40 percent from last year. Apartment vacancy rates are less than 2 percent, and longtime residents worry about a land grab from commercial property investors flocking in from California and Las Vegas, "We are in the middle of a construction boom," says Taylor.
Salt Lake City isn't the only anomaly. Prices are rising in other parts of the Rocky Mountain states, parts of Texas, the Pacific Northwest and the Southeast. Other markets defying the national meltdown include Beaumont-Port Arthur, Texas, Salem, Ore., and Farmington, N.M.
What gives? For starters, these places missed the get-rich real-estate frenzy of recent years, says Lawrence Yun, economist for the National Association of Realtors. Prices aren't falling because they didn't rise that much to begin with. The median price of a single-family home in Sarasota, Fla., in June was $311,000. Compare that with $228,000 in Salem, which realized a 16.7 percent increase in property values in the second quarter of 2007, versus the same time frame in 2006.
Yun believes states like New Mexico and Utah are finally, albeit belatedly, enjoying the run-up in property prices that began in California and swept through Nevada in the last few years.
According to Taylor, Salt Lake City has typically been more affordable than many other parts of the nation, but as property prices fall in the rest of the country, the gap has closed. In the second quarter of 2007, the national median existing single-family home price was $223,800, down 1.5 percent from a year earlier. The median price in Salt Lake City, however, is now up to $233,100.
Percolating local job markets get some of the credit. (In fact, the more resilient property markets tend to be in places with above-average job growth.) Technology has been a driver in booming real estate markets like Spokane, Wash., and Salem. Sales and service sector jobs are revving up growth in Allentown, Pa.
Another factor: the sun. In a study predicting population growth through 2020, Wharton professors Albert Saiz and Peter Linneman name the I-85 corridor between Raleigh, N.C., and Atlanta as having the greatest potential for future growth because of its long stretches of good weather. Americans are increasingly prioritizing such quality of life factors in their decisions about where to live. And where the people go, the job markets now follow. Also on the list: New Mexico, Arizona, parts of Texas and Salt Lake City.
By Deborah Orr - Forbes
Home prices nationwide posted their biggest drop in 16 years last month, according to the National Association of Realtors.
But someone forgot to tell the folks in Salt Lake City. There, the median home sale price jumped 21 percent in the second quarter this year, versus the same period last year.
It's not that Salt Lake City is entirely immune to the national housing downturn. In fact, new housing permits are down this year, and there is a glut of Macmansions, says John Taylor, investment specialist at Commerce CRG, a unit of developer Cushman & Wakefield. But with more people moving into the area, thanks in part to a percolating job market, demand for affordable existing homes is still healthy, while commercial construction is up 40 percent from last year. Apartment vacancy rates are less than 2 percent, and longtime residents worry about a land grab from commercial property investors flocking in from California and Las Vegas, "We are in the middle of a construction boom," says Taylor.
Salt Lake City isn't the only anomaly. Prices are rising in other parts of the Rocky Mountain states, parts of Texas, the Pacific Northwest and the Southeast. Other markets defying the national meltdown include Beaumont-Port Arthur, Texas, Salem, Ore., and Farmington, N.M.
What gives? For starters, these places missed the get-rich real-estate frenzy of recent years, says Lawrence Yun, economist for the National Association of Realtors. Prices aren't falling because they didn't rise that much to begin with. The median price of a single-family home in Sarasota, Fla., in June was $311,000. Compare that with $228,000 in Salem, which realized a 16.7 percent increase in property values in the second quarter of 2007, versus the same time frame in 2006.
Yun believes states like New Mexico and Utah are finally, albeit belatedly, enjoying the run-up in property prices that began in California and swept through Nevada in the last few years.
According to Taylor, Salt Lake City has typically been more affordable than many other parts of the nation, but as property prices fall in the rest of the country, the gap has closed. In the second quarter of 2007, the national median existing single-family home price was $223,800, down 1.5 percent from a year earlier. The median price in Salt Lake City, however, is now up to $233,100.
Percolating local job markets get some of the credit. (In fact, the more resilient property markets tend to be in places with above-average job growth.) Technology has been a driver in booming real estate markets like Spokane, Wash., and Salem. Sales and service sector jobs are revving up growth in Allentown, Pa.
Another factor: the sun. In a study predicting population growth through 2020, Wharton professors Albert Saiz and Peter Linneman name the I-85 corridor between Raleigh, N.C., and Atlanta as having the greatest potential for future growth because of its long stretches of good weather. Americans are increasingly prioritizing such quality of life factors in their decisions about where to live. And where the people go, the job markets now follow. Also on the list: New Mexico, Arizona, parts of Texas and Salt Lake City.
By Deborah Orr - Forbes
Tuesday, November 27, 2007
Real estate rates fall overnight
30-year fixed rate at 5.82%; 10-year Treasury yield at 3.83%
Long-term mortgage interest rates were down Monday, and the benchmark 10-year Treasury bond yield dropped to 3.83 percent.
The 30-year fixed-rate average sank to 5.82 percent, and the 15-year fixed rate fell to 5.4 percent. The 1-year adjustable held at 5.53 percent.
The 30-year Treasury bond yield was down at 4.29 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
Source Inman News
Long-term mortgage interest rates were down Monday, and the benchmark 10-year Treasury bond yield dropped to 3.83 percent.
The 30-year fixed-rate average sank to 5.82 percent, and the 15-year fixed rate fell to 5.4 percent. The 1-year adjustable held at 5.53 percent.
The 30-year Treasury bond yield was down at 4.29 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
Source Inman News
Monday, November 26, 2007
Forbes.com Best And Worst U.S. Housing Markets
I want to share just the first portion of this article which came out on 11/21/07. It is written by Matt Woosley. "
Scaled-back lending practices, risky loans, oversupply and low demand continue to plague the nation's housing markets, driving down prices and stalling sales. But it's not so in Salt Lake City, and San Jose, Calif., where prices have continued to climb without so much as a hiccup.
In Salt Lake City, the median home sale price for the third quarter this year rose 14% over the same time in 2006, according to data released today by the National Association of Realtors (NAR). That's the biggest increase of the country's 50 largest metros measured. Prices in Charlotte, one of the country's most undervalued markets, surged 11%. In San Jose, they jumped 9.4%. "
You can read the full article here.
If you have any questions, please call me. Now is the time to buy a home!
Scaled-back lending practices, risky loans, oversupply and low demand continue to plague the nation's housing markets, driving down prices and stalling sales. But it's not so in Salt Lake City, and San Jose, Calif., where prices have continued to climb without so much as a hiccup.
In Salt Lake City, the median home sale price for the third quarter this year rose 14% over the same time in 2006, according to data released today by the National Association of Realtors (NAR). That's the biggest increase of the country's 50 largest metros measured. Prices in Charlotte, one of the country's most undervalued markets, surged 11%. In San Jose, they jumped 9.4%. "
You can read the full article here.
If you have any questions, please call me. Now is the time to buy a home!
Thursday, November 22, 2007
Why Home Ownership is the Smartest Way to Build Wealth
Many buyers are convinced that waiting will allow them to buy the property at a lower cost. This flawed thinking fails to consider the true costs of home ownership, not only in terms of tax consequences, but also in terms of wealth accumulation.
It's cheaper for me to rent!
How many times have you used/heard that objection?
Right now interest rates are so low that purchasing makes more sense. To illustrate this point, begin by using one of this online "rent versus buy" calculators, According to the U.S. government, the average rate of inflation for the last 10 years is 2.54 percent. Check your local census or multiple listing service data to determine how much properties in your area have appreciated over the last few years as well, or you can give us a call. Furthermore, the longer a person stays in the property, the more substantial the savings are. Here are two examples that illustrate why renting is not usually a smart idea:
Example 1: Assume that you currently pay $1,500 per month in rent and plan to purchase a $300,000 property with $30,000 down and a $270,000 loan for 30 years at 6.25 percent. You are in the 28 percent tax bracket and will own the property for eight years. Appreciation keeps pace with inflation at 2.54 percent per year. The estimated cost of renting is $142,016 versus the estimated cost of buying, which is $117,754.04. You will save $24,262 by purchasing rather than renting.
Example 2: You currently pay $2,000 per month in rent. You plan to purchase a $400,000 property with $40,000 down and a $360,000 loan at 6.25 percent. You are in the 28 percent tax bracket and will own the property for 10 years. The property will appreciate at 5 percent per year. During the 10-year period, the estimated cost of renting is $241,189 as compared to the estimated cost of buying (due to appreciation and equity build up), which is $68,905. You will save $172,284 by buying rather than renting.
What if the prices go down?
Laurence Yun, the chief economist for the National Association of Realtors, shared the following facts at NAR's mid-year conference:
From 1995 to 2004, the average renter accumulated $4,000 of wealth. In contrast, the average homeowner accumulated $184,400. (See his presentation on "Marketing to Gen Next" slide 47 on Realtor.org.) To account for the difference of $180,400 of wealth accumulation, a $300,000 house would have to decline by 60 percent.
What many people fail to consider is that homeowners accumulate wealth by paying down their mortgage, even if their house does not increase in value. Renters lose additional wealth as their rental payments increase over time, whereas a homeowner with a fixed-rate loan has locked in his or her mortgage amount for the next 30 years.
If you would like to see how I can help you in your home buying needs, please give me a call.
It's cheaper for me to rent!
How many times have you used/heard that objection?
Right now interest rates are so low that purchasing makes more sense. To illustrate this point, begin by using one of this online "rent versus buy" calculators, According to the U.S. government, the average rate of inflation for the last 10 years is 2.54 percent. Check your local census or multiple listing service data to determine how much properties in your area have appreciated over the last few years as well, or you can give us a call. Furthermore, the longer a person stays in the property, the more substantial the savings are. Here are two examples that illustrate why renting is not usually a smart idea:
Example 1: Assume that you currently pay $1,500 per month in rent and plan to purchase a $300,000 property with $30,000 down and a $270,000 loan for 30 years at 6.25 percent. You are in the 28 percent tax bracket and will own the property for eight years. Appreciation keeps pace with inflation at 2.54 percent per year. The estimated cost of renting is $142,016 versus the estimated cost of buying, which is $117,754.04. You will save $24,262 by purchasing rather than renting.
Example 2: You currently pay $2,000 per month in rent. You plan to purchase a $400,000 property with $40,000 down and a $360,000 loan at 6.25 percent. You are in the 28 percent tax bracket and will own the property for 10 years. The property will appreciate at 5 percent per year. During the 10-year period, the estimated cost of renting is $241,189 as compared to the estimated cost of buying (due to appreciation and equity build up), which is $68,905. You will save $172,284 by buying rather than renting.
What if the prices go down?
Laurence Yun, the chief economist for the National Association of Realtors, shared the following facts at NAR's mid-year conference:
From 1995 to 2004, the average renter accumulated $4,000 of wealth. In contrast, the average homeowner accumulated $184,400. (See his presentation on "Marketing to Gen Next" slide 47 on Realtor.org.) To account for the difference of $180,400 of wealth accumulation, a $300,000 house would have to decline by 60 percent.
What many people fail to consider is that homeowners accumulate wealth by paying down their mortgage, even if their house does not increase in value. Renters lose additional wealth as their rental payments increase over time, whereas a homeowner with a fixed-rate loan has locked in his or her mortgage amount for the next 30 years.
If you would like to see how I can help you in your home buying needs, please give me a call.
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