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
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