There is no doubt that the housing market and the economy are intertwined. The economy will get better as housing improves. Housing will regain strength as the economy improves. How is the economy actually doing? One measure is the Misery Index which combines the inflation and unemployment numbers. According to their site: The misery index was […]
As prices continue to soften, more and more homeowners will fall into a position of negative equity on their homes. This means that the balance on their mortgage is greater than the value of their home. The reason this is important is that people are more prone to strategically default on their mortgage when ‘underwater’. […]
We are presented with conflicting data almost daily about the “health” of the economy. And I am no economist, but I believe that I do possess some common sense. So, here’s what I have been thinking. It is obvious that millions of people are NOT paying their mortgage, rightly or wrongly, for their own reasons: […]
We have written several blogs recently quoting numerous sources saying now is the time to buy a home. We agree that now is definitely the time to buy. This is NOT because we are calling the bottom for real estate PRICES. What we have said is that the COST of purchasing a home is probably […]
Despite what appears to be a non-stop wave of tough news regarding real estate, four major media players have come out this month with the same advice: It Is Time to Buy a Home! Here are the four articles and a breakdown as to why the advice makes sense. The Wall Street Journal: Why It’s […]
The Quality Residential Mortgage (QRM), a proposal by the government to tighten lending standards, has initiated quite a debate. The government feels strongly that standards must be raised while others have debated that the new guidelines are an example of the pendulum swinging back much too far. For the government’s position on QRM, click here. […]
We attempt to keep you abreast of the housing market. When will demand for housing return to historic averages? What impact will foreclosures continue to have? Where are interest rates headed? There are no simple answers to any of these questions. However, the most difficult question to answer seems to be: Where are home prices […]
As people go through the mortgage process today, I believe that they wonder if their lender has gone insane. Lenders ask for documentation repeatedly, constantly updating, asking for further clarification and explanation for everything. Income, credit, assets and appraisals are scrutinized at a level unseen in my 25+ years. It almost seems like they are […]
Whether a family is thinking of buying or selling a home, price seems to have become all important. I’m not sure why that has occurred. I realize, whenever anyone sells or buys anything, making sure you get a ‘good deal’ is a crucial part of the transaction. However, in real estate today, it now seems […]
We received some tough news on housing last week. Prices are still softening. There was a lot of negativity surrounding these reports. The news caused more consumers to be concerned. However, the real question is what this means to you and your family. This could actually be great news if you are buying (either as […]
Here are two headlines that appeared in print last week: LA Times: Case-Shiller Home Price Index Hits New Low Forex: CoreLogic: Home Price Index Increased 0.7% In the Los Angeles Times story, David Blitzer, chairman of the S&P index committee, was quoted as saying: “This month’s report is marked by the confirmation of a double-dip […]
The federal government would like to dramatically decrease their role in the financing of residential real estate. To that goal, they have proposed the guidelines for a ‘Qualified Residential Mortgage’ (QRM). How would these proposed guidelines impact the demand for housing? Here is what three different entities are reporting: CoreLogic “Roughly 39% of homebuyers in […]
I have heard it said that by 2013, 90% of new content posted to the web will be in the form of video…90%!!! What that says to me is that video is what our clients, customers, and prospects want. They want it to educate themselves without reading. They want it to be stimulated more by […]
Families are trying to determine whether or not now is the time to buy a home. Some are advising these families to sit out the current real estate market and instead rent for the next year or two. We do not agree with this advice. Homeownership means a lot to a family. We also realize […]
You have finally found the house of your dreams. It is priced right and is receiving a lot of attention from other buyers. You don’t want to miss this opportunity so you are ready to put in an offer with the real estate agent immediately. What can you do to guarantee your offer is the […]
Many people ask us whether they should hire an agent to sell their home or whether they should first try as a For Sale by Owner (FSBO). In today’s volatile market, we believe this is an easy decision: you need an experienced professional! You need an expert guide if you are traveling a dangerous path […]
Turning 49 on Monday, I was struck about how different the world of communication has become. In years past, a dozen friends would have called me…a few would have even sent me a card in the mail. But this year, it was very different. Only two calls were received and no regular mail. But, I […]
Back in February, we posted a blog titled MERS: a MESS We Should Know About. In that post, we warned that MERS, a system most mortgage entities have used in transferring the ownership of mortgages, might turn out to be rather problematic. It seems MERS is now creating challenges in the foreclosure process. DSNews reported […]
Banks have become very conservative when lending mortgage money today. With the current foreclosure challenges in the country, we can’t really blame them. The requirements now necessary to qualify for mortgages have gotten much more stringent and it seems will get even more stringent as we move forward. The banks want to make sure the prospective […]
Each quarter, Fannie Mae releases their National Housing Survey. They survey the American public on a multitude of questions concerning today’s housing market. We like to pull out some of the findings we deem most interesting each time it is released. Here they are for the most recent report: The Most Important Reasons to Buy […]
Earlier this week, Trulia and RealtyTrac issued a press release regarding a survey completed for the two companies by Harris Interactive. The press release, American Expectations for Housing Market Recovery Falters , reported: “As more cities across the nation experience double dips in home prices, more than half (54%) of U.S. adults believe recovery in […]
One comment that I hear from real estate agents and lay people alike is that “it’s hard to get a mortgage; so hard, in fact, that no one can get one”. This is just NOT true! In reality, lenders are lending at a healthy pace. Interest rates continue to cooperate and there are many programs […]
We often talk about the COST of buying a house vs. the PRICE of the home. The price obviously is a major component of the cost. The other major component is the interest rate on your mortgage. A small hike in mortgage interest rate can have a dramatic impact on your monthly payment. For that […]
Business School professors Eli Beracha of East Carolina University and Ken H. Johnson of Florida International University have done extensive research on which makes more sense financially: to rent or own a home. They published, Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise? In their paper, the professors do […]
An issue that may have a gigantic impact on the housing market later this year is the lowering of the conforming loan limits. Without an act of Congress, these limits will return to the lower limits that existed prior to 2008. Today, we want to shed light on this issue and what it means to […]
