There are very early signs that the economy is at least slightly on the mend. I think Bernake's " the recession is over" comments are very early in their optimism but I understand that he has to say things of that nature to a certain degree. I want to discuss a few signposts that may give us some insight on where the economy in general and the housing market in particular are headed. I believe that the economy won't be in full recovery until the housing market at least stops the bleeding it has suffered in the last few years.
1. US existing homes for sale- Sales for existing homes have increased in the last few months and correspondingly the inventory of home on the market have dropped the last few months.
NOTE- I believe this to be a short term improvement as banks are holding high levels of homes, foreclosures have been delayed and many ARMS are coming due in the next two years. The local DC housing market will be stronger than the national average and certainly better than places like Florida which may take almost a decade to recover from the losses of the past few years.
2.US leading economic indicators- It appears as if this index hit the floor six months ago and has seen substantial improvement. I still think while headed in the right direction that the recovery is very fragile and any number of events could disrupt this progress.
3. Consumer sentiment- This index measures consumer confidence basically.
It's at it's highest point since the Lehman brothers collapse last September. The 2001 recession had a higher number but that one pales compared to the current economic outlook.
I believe that we still have a ways to go but as usual the DC area will weather the storm better than other parts of the country. Still the pain we fell here in DC is real and not quite over yet but the end of the beginning I believe is here. Please let me know if you have any questions how this affects the housing market and I will be happy to help.
Thanks,
Friday, September 25, 2009
Best time to buy a home
The worst time to buy a home is the spring time. Why? Because that is when competition is greatest to purchase a home. Of course for a seller this can be a very good thing because everyone is out to buy a home. People with kids want to move before the new school year starts and everyone wants to buy and sell. Inventory is flooded as this is the peak of home sales every year in every market in the country. If you are going to buy though in the spring consider buying a home right around the Easter holiday. Many people are travelling and turn that into a long weekend or even a spring break week. If you are around and time it right Easter weekend would be the perfect time to purchase a home. Monday offers will come on a home but you just might beat the crowds with a well timed, well priced offer. If you get a good experienced agent run this idea past them but please listen to them on the pricing of the offer. We are seeing multiple contracts on well prices homes, the most I have seen this year is 22 and I hadn't seen that for several years. Getting five or ten thousand dollars off the price is just a few dollars a month. Don't miss out if you truly love the home is all I am saying.
The best time to buy a home is December, the closer to Christmas the better. Almost no one is out buying this time of the year because of the holidays and travelling. Also if someone has their home listed during this month you know they are serious about selling. People are overall in a better mood, just the Christmas spirit you know? They may be more inclined to take a slightly lower offer this time of the year. My advice is the same as Easter weekend, get out there Christmas weekend and start writing those offers. Home prices are always at the bottom of the floor again in every market every year during December. Hope this helps and please let me know if you have any questions. I know several good realtors who can answer your questions and help you get the home of your dreams.
The best time to buy a home is December, the closer to Christmas the better. Almost no one is out buying this time of the year because of the holidays and travelling. Also if someone has their home listed during this month you know they are serious about selling. People are overall in a better mood, just the Christmas spirit you know? They may be more inclined to take a slightly lower offer this time of the year. My advice is the same as Easter weekend, get out there Christmas weekend and start writing those offers. Home prices are always at the bottom of the floor again in every market every year during December. Hope this helps and please let me know if you have any questions. I know several good realtors who can answer your questions and help you get the home of your dreams.
Friday, September 11, 2009
Green Mortgage Update
I wanted to give you an update on the green mortgages. They are much harder and time intensive then I realized. I like learning new things so that isn't a problem. If you are in the market for one of these they can still be a great tool but you really should talk to a qualifed loan officer and also perhaps an energy consultant to know the best upgrades you can do so you make sure you qualify for a mortgage. Under no circumstances should you sign or agree to have work performed until AFTER you are qualified for these mortgages.
People are coming to me to get a "green mortgage" and the number one reason is for new windows. Now after talking to the energy consultants that determine if the energy loan is approved have told me that windows rarely if ever get enough impact to warrant the costs but also more importantly to qualify for the green portion of the mortgage. To be clear if you want a green energy efficient mortgage based on windows and new windows alone you are likely not to qualify for it. One consultant told me that windows were the last thing they were taught to do in upgrading a home to save money and energy. Don't take my word for it talk to one of them yourself. Resnet is a tremendous site and this is the link to find raters by state. Most of them can also tell you how difficult it is to get one of these green mortgages in part because lenders and brokers are so unfamiliar with them. I am far from an expert but I know far more than most people in the industry and am certainly willing to put in the time and research to be the expert that I want to be on these. Getting the word out is the hardest part. I found another great green website that has some tips and tricks to save money and help the planet at the same time.
Please let me know if you have any questions.
People are coming to me to get a "green mortgage" and the number one reason is for new windows. Now after talking to the energy consultants that determine if the energy loan is approved have told me that windows rarely if ever get enough impact to warrant the costs but also more importantly to qualify for the green portion of the mortgage. To be clear if you want a green energy efficient mortgage based on windows and new windows alone you are likely not to qualify for it. One consultant told me that windows were the last thing they were taught to do in upgrading a home to save money and energy. Don't take my word for it talk to one of them yourself. Resnet is a tremendous site and this is the link to find raters by state. Most of them can also tell you how difficult it is to get one of these green mortgages in part because lenders and brokers are so unfamiliar with them. I am far from an expert but I know far more than most people in the industry and am certainly willing to put in the time and research to be the expert that I want to be on these. Getting the word out is the hardest part. I found another great green website that has some tips and tricks to save money and help the planet at the same time.
Please let me know if you have any questions.
10 ways to get a good mortgage
Top 10 Tips for Avoiding Real Estate and Mortgage Fraud- I feel like David Letterman
10.Never sign anything if you don't fully understand what you are signing and agreeing to, AND, always seek assistance from a skilled real estate attorney. If you do not understand something you're being asked to sign, ask for clarification and re-read the document again before signing. Yes it's annoying at times but don't worry about wasting a few minutes of time to get this right the first time.
9. Check referrals and references for real estate and mortgage industry professionals. Check the licenses of the real estate and mortgage professionals with state, county, or city regulatory agencies. Make sure the people you're dealing with are 'in good standing' with the appropriate regulatory bodies. If they have been suspended and have several complaints do you really want to do business with them?
8.Be suspicious of outrageous promises of extraordinary profit in a short period of time. If it sounds too good to be true, it probably is! Again, trust but verify.
7. Always conduct business at either the mortgage bankers professionals office or the title attorney. Doing so gives you further opportunities to verify the agent or broker's professional standing, as well as alleviates pressure you may feel if someone is strong-arming you inside of your own home.
6. Be careful of finding your loan and realtor on the Internet. If you do shop and compare rates and programs make sure it's with at least a few local lenders. Beware high-pressure sales techniques and people who play to your emotions. Again, if it seems too good to be true, it probably is! If you use a LOCAL lender you have some accountability with someone that should care about his local reputation. Can't really go out and meet someone living in Utah.
5.Review information to include recent comparable sales in the area and other documents such as tax assessments to verify the value of the property. Most of the information is online and free. Don't pay for site access. Take a look here to see what I mean for all the info you can find.
4.Make sure the name on any documents you sign matches the name on your driver's license and social security card.
Review the title history of the property with the title attorney to determine if the property has been sold multiple times within a short period. This is a red flag for loan fraud which could include flipping..
3.Make sure you know and understand the terms of your mortgage. Check your information against the information in the loan documents to ensure they are accurate and complete. I have seen many people convinced they have 30 year fixed rates only to have me tell them they have ARM'S
2.Be cautious of any real estate industry or mortgage professional who conducts 100 percent of their business on a cell phone on the road. Upstanding real estate industry professionals almost always have an official office and telephone line. Verify this information before agreeing to conduct business exclusively via a cell phone.
1.Trust but verify all information!!! Yes everyone may think you are a pain in the you know what but don't even worry about that.
Never sign a blank document or a document containing blanks. This leaves you vulnerable to fraud. I really can't say this too many times, if you don't understand what you are signing either ask or don't sign it. Once you do especially on a purchase it's too late.
10.Never sign anything if you don't fully understand what you are signing and agreeing to, AND, always seek assistance from a skilled real estate attorney. If you do not understand something you're being asked to sign, ask for clarification and re-read the document again before signing. Yes it's annoying at times but don't worry about wasting a few minutes of time to get this right the first time.
9. Check referrals and references for real estate and mortgage industry professionals. Check the licenses of the real estate and mortgage professionals with state, county, or city regulatory agencies. Make sure the people you're dealing with are 'in good standing' with the appropriate regulatory bodies. If they have been suspended and have several complaints do you really want to do business with them?
8.Be suspicious of outrageous promises of extraordinary profit in a short period of time. If it sounds too good to be true, it probably is! Again, trust but verify.
7. Always conduct business at either the mortgage bankers professionals office or the title attorney. Doing so gives you further opportunities to verify the agent or broker's professional standing, as well as alleviates pressure you may feel if someone is strong-arming you inside of your own home.
6. Be careful of finding your loan and realtor on the Internet. If you do shop and compare rates and programs make sure it's with at least a few local lenders. Beware high-pressure sales techniques and people who play to your emotions. Again, if it seems too good to be true, it probably is! If you use a LOCAL lender you have some accountability with someone that should care about his local reputation. Can't really go out and meet someone living in Utah.
5.Review information to include recent comparable sales in the area and other documents such as tax assessments to verify the value of the property. Most of the information is online and free. Don't pay for site access. Take a look here to see what I mean for all the info you can find.
4.Make sure the name on any documents you sign matches the name on your driver's license and social security card.
Review the title history of the property with the title attorney to determine if the property has been sold multiple times within a short period. This is a red flag for loan fraud which could include flipping..
3.Make sure you know and understand the terms of your mortgage. Check your information against the information in the loan documents to ensure they are accurate and complete. I have seen many people convinced they have 30 year fixed rates only to have me tell them they have ARM'S
2.Be cautious of any real estate industry or mortgage professional who conducts 100 percent of their business on a cell phone on the road. Upstanding real estate industry professionals almost always have an official office and telephone line. Verify this information before agreeing to conduct business exclusively via a cell phone.
1.Trust but verify all information!!! Yes everyone may think you are a pain in the you know what but don't even worry about that.
Never sign a blank document or a document containing blanks. This leaves you vulnerable to fraud. I really can't say this too many times, if you don't understand what you are signing either ask or don't sign it. Once you do especially on a purchase it's too late.
Tuesday, September 1, 2009
$8000 to buy a home ends very soon
Until November 30th the federal government is giving, yes that is correct giving first time homebuyers $8,000 to buy a home. This is not a loan or a deduction on next year's taxes. This is cold hard cash. It seems as I write this that the program will NOT be renewed past November 30th 2009. A first time homebuyer also means someone that has not owned a home for the past three years so if you are a former owner and haven't owned the past three years you may very well qualify. Again this is a dollar for dollar tax credit. So if the amount of the approved tax credit is greater than the amount owed in taxes you are mailed a check for the difference, which in theory could be the entire amount.
$8,000 is also the down payment required to purchase a $228,500 home. With the decline in home prices around Montgomery County and the general DC area this amount buys you far more home that ever before. If you are buying a foreclosure and or short sale again you can get a great deal but you must act NOW. You must close by November 30th and those types of sales can take months to complete. You can also amend your taxes and receive the funds needed to close NOW. We can arrange a meeting with a CPA to assist you in making this happen.
Don't wait, call a qualified loan officer NOW. Don't look back and think that you could have used this for yourself or could have passed this on to someone you know that is looking for their first home. If you need an excellent realtor who knows the local DC market very well we can help make a connection with a trustworthy source as well.
$8,000 is also the down payment required to purchase a $228,500 home. With the decline in home prices around Montgomery County and the general DC area this amount buys you far more home that ever before. If you are buying a foreclosure and or short sale again you can get a great deal but you must act NOW. You must close by November 30th and those types of sales can take months to complete. You can also amend your taxes and receive the funds needed to close NOW. We can arrange a meeting with a CPA to assist you in making this happen.
Don't wait, call a qualified loan officer NOW. Don't look back and think that you could have used this for yourself or could have passed this on to someone you know that is looking for their first home. If you need an excellent realtor who knows the local DC market very well we can help make a connection with a trustworthy source as well.
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