‘Oh yeah, in the next 2 weeks you will know of friends, neighbors, or coworkers who are looking to sell or buy a home or need a mortgage “‘Be sure to tell them about your experience working with us and call me right away with their phone numbers so that I can help them, too.
I just wanted to send you out an update that will affect us all. Beginning April 1st FHA’s upfront MI fee will be increasing from 1% to 1.75%. The monthly MI fee will be increasing from 1.15% to 1.25%. While not a huge increase in monthly costs to the buyer, this would be a great reason go ahead and find your next home if you have been prequalified for an FHA loan. As always, please let us know if we can help any of you and please don’t hesitate to shoot teambates an email or giveus a call if you have any questions.
Here is a link ot HUD, for those folks who feel they can digest this infomation from,” the Man”, himself.lol
Definately give us a call if you have any questions, we have lenders that live an breath this stuff who wold be more than happy to assist you.
Housing continues to stall the nation’s economic recovery, with foreclosed homes dragging down prices and unemployed homeowners struggling to meet their mortgage payments.
Last week, the Obama administration announced another step to help jobless Americans avoid foreclosure, but thus far the government’s efforts have failed to stop substantial numbers of Americans from losing their homes..
we have found a way for you to take advantage of this awesome market before it changes and interest rates start going up or our “buyer’s market” start to turn and prices start to increase. Because if you have previously tried to rent your home, lenders couldn’t qualify you to buy a new home and take advantage of this market. WELL, IT’S CHANGED! You can buy a new home and, possibly not have to bring $20,000, to the closing table. INTERESTED YET? If you are considering taking this kind of Hit on your home, to sell it. WE may know someone who can help.
Teambates thinks we could be experiencing a housing shortage this year, because of the tornado victims relocating out of “tornado alley.” We have a client that has been qualified to buy a home and is going to rent their home until the market changes in their favor. Our clients had been told they couldn’t qualify until they sold their current home; however, we have found a lender that has enabled them to Rent their existing home and take advantage of this market and buy a home. Don’t miss out on this awesome market. TAKE ADVANTAGE OF IT. If you are not currently listed with a real estate company, and want to learn how to take advantage of this market and rent your home and turn it into an investment property and earn income on it until the market changes. Does this sound like a WIN! WIN? Give Teambates a call at 205-965-8080 or 205-966-7795.
Make sure you watch this month’s video! and CALL TEAMBATES, WOO HOO!
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January 2011 Market Update
The housing market is recovering. As more home buyers are taking advantage of the improved affordability conditions. With mortgage rates hovering around recent record lows and home prices having generally stabilized, economists are expecting an upward trend to a healthy and sustainable level in 2011.
Encouraging signs are showing up across the economy. Retail sales recently hit their highest level since before the recession. Key measures of small and big businesses’ optimism marched back up to prerecession levels and new claims for jobless benefits are trending lower. Together they bode well for steady job creation and improved consumer confidence which is generally manifested in more spending.
As the economy improves, current stimulus efforts by the government and the Federal Reserve Board are expected to gradually wind down. Meanwhile, serious buyers stand to benefit from historically favorable buying conditions.
Home Sales
Existing home sales resumed on an upward trend since bottoming in July. Sales activity rose to a seasonally adjusted annual rate of 4.68 million in November. This was up 22% from July and 5.6% above the 4.43 million level in October, but remained 27.9% below the 6.49 million tax credit rush a year ago. As steady job creation is expected to continue, industry experts are hopeful for 2011.
Home Price
Home prices continued to stabilize. Median home prices edged up slightly to $170,600, 0.4% above year-ago levels. Distressed homes have accounted for a fairly stable market share, representing 33% of sales in November. This is on par with the 34% in October and 33% in November 2009. Historically favorable interest rates, coupled with stable home prices, continue to offer advantageous buying opportunities .
Inventory
The number of homes on the market continued to decline. Total inventory fell to 3.71 million in November from 3.86 million in October. This reflects the increasing response from buyers to improved affordability conditions. As lending standards return to historical norms and consumers become more confident about their financial situation, more people will be able to buy their first home, move up, or invest.
Affordability
Housing affordability set a new record in November. The relationship between mortgage rates, home prices, and family income is the most favorable on record for buying. The home price-to-income ratio, currently at 13.5%, continues to remain well below the historical standard. Stabilizing home prices and rising interest rates are expected to begin drawing affordability back up toward more normal levels.
Source: National Association of Realtors – October housing data released December 22.
Would you like to know the value of your home? Team Bates wants to keep you informed about the Real Estate Market. Just email us with your information and we will be happy to share that information to you with no obligation. Myteambates@gmail.com Marsha & I are dedicated to keep our clients educated and informed so that you are able to make the best decisions for you and your family. Tommy & Marsha Bates Team Bates
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Interest Rates
Mortgage rates are inching up but remain historically low. This trend continues to support home buying as it translates to significant savings for buyers. As overall economic recovery remains on track, rates are expected to rise to keep inflation in check.
Type
Rate
30 year fixed 4.77%
15 year fixed 4.13%
5/1-year ARM 3.75%
30 year average for a 30 year fixed rate mortgage 8.9%
Source: Freddie Mac, Rates as of Jan 7.
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This Month’s Video
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Topics For Home Owners, Buyers & Sellers
Use the Season to Your Home-Selling Advantage
While summer is generally known as the peak season for home sales activity, the winter can also offer great advantages for sellers – such as less competition from other sellers. With a little effort, you can use the season to your home-selling advantage.
Let’s put these ideas to work, so your home shows at its best.
Keep snow and ice at bay. If the buyer can’t get in easily, the house won’t sell. That means keeping walkways and driveways free of the frozen stuff. You want to make the home look well maintained.
Warm it up. Think warm, cozy, and homey. Before a buyer comes through, adjust the thermostat to a warmer temperature to make it welcoming. If you have a fireplace, turning it on right before the tour can create a more welcoming ambience.
Emphasize winter positives. Is your home on a bus route or some other vital service that means it’s plowed or deiced regularly in bad weather? Be sure to mention that to the buyers.
Make it festive. Even if you’re not actually going to be present, greet your buyers as if they were going to be guests at a party. Set up the dinner table with the good china and silver. Have a plate of cookies for your guests, some warm cider, or even chilled bottles of water.
Use the season to your advantage. When the holidays are over, you can still use winter wreaths and dried arrangements around the door to spark interest. In the winter, with the leaves off the trees, you might also have a nice view that isn’t as apparent in the spring and summer months.
Source: msn.com
Contact us,
TEAM BATES
your local real estate experts,
for information about what’s going on in Your area.
205-965-8080
Or
205-966-7795
WE VALUE,ENCOURAGE AND APPRECIATE ALL OF YOUR COMMENTS
*
Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.
The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.
The housing market continues its uneven and gradual recovery without the aid of the tax credit. Experts believe this will be the trend moving forward. Interest rates hit another record low but have started moving back up as the overall economy improves.
Despite a less-than-expected employment report, consumers seem to be feeling brighter about the future. While the Consumer Confidence Index about the Present Situation rose only slightly, the Expectation Index showed substantial improvement. As we enter into the holiday gift-buying season, consumers are expected to be out shopping and buying more gifts for under the tree this year. Reports indicate a 13-24% increase in retail sales from last year. Consumer spending accounts for about half of all economic activity in the US; as long as consumers are spending and using debt responsibly, this is a positive indicator for economic growth.
This march back up continues to provide excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates. Experts anticipate both the economy and the housing market will continue on a path to a complete recovery.
Home Sales
Home sales dropped slightly in October, compared with the previous month, despite a temporary moratorium on foreclosures, which have recently represented more than one third of sales activity. Sales were up 15% from July when the tax credit expiration caused a drop-off in sales. The most significant indicator of a market rebound, however, appears to be the October pending sales report. A 10.4% increase in pending sales, which measures homes under contract, signals stronger home sales activity in the coming months as the homes under contract close.
Home Price
Home prices have shown considerable stability when compared with the previous several years. October’s median home price declined slightly, down less than 1% from the previous month and year. A recent study shows an increased interest in smaller homes. Smaller homes often mean smaller price tags, depending on location.While the market currently provides many opportunities for buyers, sellers look forward to the general trending upward of home price as the market’s stability without government support grows deeper roots.
Inventory
There are fewer homes on the market. Total inventory fell to 3.86 million in October from 4 million in September. The month’s supply* of homes on the market fell to 10.5 months. While still at a relatively high level, months of inventory has shrunken substantially since July’s 12.5 months. As lending standards continue to loosen and return to historical norms, more people will be able to buy their first home, move up, or invest and take advantage of the abundant opportunities in the current market – including historically low interest rates, highly affordable prices, and an ample but shrinking selection of homes.
* Month’s supply of inventory measures how many months it will take to sell all the homes that are for sale, if no new homes come on the market and buyers continue to buy at the same pace or rate.
Affordability
Housing is at record affordability levels. Prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. The home price-to-income ratio, 13.5% in October, continues to remain well below the historical standard. Stabilizing home prices and rising interest rates are anticipated to begin drawing affordability back up toward more normal levels.
Source: National Association of Realtors – October housing data released November 23.
Interest Rates
Mortgage rates hit another record low of 4.17% on November 11 after which they rose to close to 4.4% for the remainder of the month. Historically low rates have contributed to real savings for buyers who will continue to realize those savings for as long as they own the home.As overall economic recovery gains traction, rates must rise to keep inflation in check. Industry economist Lawrence Yun anticipates rates to be between 5.4% and 6% by the end of 2011.
Type
Rate
30 year fixed
4.46%
15 year fixed
3.81%
5/1-year ARM
3.25%
30 year average for a 30 year fixed rate mortgage
8.9%
Source: Freddie Mac, Rates as of December 2.
This Month’s Video
Topics For Home Owners, Buyers & Sellers
Prime Time to Buy
Homes Have Never Been More Affordable
For most individual home buyers, there are only a few factors that really matter:
• Can I afford this home?
• Is it a good investment?
• Does it meet my family’s needs?
So it’s a bit surprising that the most important housing statistic has gone largely unreported: homes have never been more affordable. Affordability, measured by the median mortgage payment on the current median-priced home ($171,000) as a percentage of the median household income ($62,141), is lower than it’s been in a generation. The chart below shows affordability at a record level, having significantly improved since the height of the recent housing boom in 2006.
Sources: National Association of Realtors, KW Research
Contact me,
your local real estate expert,
for information about what’s going on in our area.
Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.
The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.
Multibillionaire hedge fund operator John Paulson talks bonds, stocks and the value in buying now.
In an article on Forbes’ blog, columnist Robert Lenzer reported on a recent appearance made by multibillionaire hedge fund operator and investment genius, John Paulson. Speaking to a packed crowd at New York’s University Club, Paulson addressed today’s economic landscape and touched on inflation, the bond market, equities and gold, and made several predictions about the next two years. [Read the full story here].
He also made final parting remarks on the state of the housing market. Noting that this is the best time in 50 years to buy a home, Paulson advised those listening to issue 30 year mortgages to buy a home as “your debt and interest payments get locked in a record lows, while the price of your home will rise.”
“If you don’t own a home buy one. If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.”
Help your clients understand the conditions that make NOW the right time to buy by sending the 7 Reasons Why Now is a Great Time to Buy eBook.
Download it from the MyKW Marketing Tab.
Source: http://blogs.forbes.com/robertlenzner/2010/09/27/john-paulson-sell-bonds-buy-stocks-double-digit-inflation-coming/
Nov7 – Why Buy Now on Forbes.com
The housing market continues its gradual recovery without the aid of the tax credit. Sales are slower but growing. Although it will likely be uneven at times, slow growth is believed to be the trend moving forward. Interest rates hit a new historic low again, a major factor in helping keep mortgage payments incredibly affordable.
Extended periods of record low interest rates and further plans from the Federal Reserve Board to expedite recovery have some concerned about future inflation. One such investment guru, John Paulson, touted the benefits of owning real estate as a hedge against inflation on Forbes.com. “Your debt and interest payments get locked in at record lows, while the price of your home will rise … If you don’t own a home buy one … if you own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.”
This march back up continues to provide excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates. Experts anticipate both the economy and the housing market will continue their paths on the way to a complete recovery.
Home Sales
Home sales continued to rebound in September, increasing 10% compared to the previous month. This builds on August’s gain of 7.6% that followed a large drop caused by the expiration of the federal tax credit in July. Sales are expected to gradually grow as the market moves toward recovery without government stimulus. The recent foreclosure moratorium has opened up opportunities for short sales. Although it could make the near-term “choppy at times,” industry experts expect the overall trend to continue growing slowly.
Home Price
After four months of prices remaining on par with year-ago levels, September showed a slight decline. Last September distressed properties were 29% of all home sales; this September that number rose to 35%. The larger proportion of distressed sales, which are typically discounted, helps to explain the decline. While these discounted sales provide opportunities for buyers, sellers look forward to the general trending upward of home price.
Inventory
There are fewer homes on the market again in September, representing 10.7 months of inventory. While still at a relatively high level, months of inventory shrank by nearly a month in September from August’s 11.6 and nearly two months since the 12.5-month supply in July. This continues to represent an excellent opportunity for buyers and investors who have not yet taken advantage of the abundant opportunities of the market including record low rates, an ample but shrinking selection of homes, and highly affordable prices.
Affordability
Housing remains at near-record affordability levels, and prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. Housing is approximately 60% more affordable now than during the height of the market.
Source: National Association of Realtors
Interest Rates
Mortgage rates once again set new record lows in early October to 4.19% and remained below 4.3% throughout the month. These historically low rates contributed to real savings for buyers. Furthermore, the longer the buyer owns the home, the greater the savings they will realize. As economic activity gains momentum, rates will rise to keep inflation at an acceptable level.
Rates as of November 4 .
This Month’s Video
Topics For Home Owners, Buyers & Sellers
Prime Time to Buy
7 Reasons Why Now Is a Great Time to Buy a Home
Recent history has reframed some of what had long been taken for granted about buying a home. Namely, we’ve learned that even though buying a home remains one of the best and safest investments available, a home should not function as an ATM or a short-term speculation strategy. So, where does that leave us? A lot smarter, able to recognize an opportunity when we see one, and aware of the facts that point to now as the prime time to buy a home.
1.Home affordability is at an all-time high. The median mortgage payment on the median-priced home, as a percentage of the median household income, is lower than it’s been in a generation.
2.Mortgage rates are at rock bottom. It’s hard to imagine interest rates going much lower, and when they start to inch back upward, monthly payments and total loan costs will spike upward.
3.Home prices are back on the rise. After declining for 30 months, home prices are trending back upward. The time to get in the market is now.
4.Sellers are motivated. This means that buyers have the upper hand. Sellers are fiercely competing among an excess of housing inventory, which often means buyers have untold choices and negotiating power.
5.Financing is readily available. Banks are back in the game and ready to lend to well-qualified buyers.
6.Owning vs. renting is increasingly favorable. Since 2009, the average principal and interest payment has fallen below the average rental rates, and the gap is now wider than it’s been in the past 22 years.
7.Homeownership is still at the core of the American Dream. Owning a home is critical to financial stability and wealth building. It’s a forced savings account, a place to live, and a fabulous tax deduction.
For more detail, check out Keller Williams Realty’s 7 Reasons Why Now Is a Great Time to Buy a Home! and The Wall Street Journal’s 10 Reasons to Buy a Home.
Sources: The Wall Street Journal, Inman News, KW Research
Contact me,
your local real estate expert,
for information about what’s going on in our area.
Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.
The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.
Posted by Tommy & Marsha Bates 
