Happy Holidays to the KCM Community
See you Monday!
Entries by The KCM Crew
Remember… Pigs Get Slaughtered
The recent spike in interest rates reminds us that though rates generally gravitate lower slowly, they move upwards “quickly and dramatically”. For months, we have been listening to prospective home purchasers say they want to wait because prices will continue to fall and rates aren’t going up. Well, my friends, the horse may have already left […]
Prices Compared To Historic Trend Lines
Last week, we did a blog post on house prices as compared to income levels. We showed that, using historic ratios, house values were lower than previous norms. Many people asked us if we believe that home prices were about to increase. As we said in the post: Some experts are predicting that today’s values […]
5 Reasons You Should Sell Today (UPDATED)
Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every chance that appears. There is a fantastic opportunity available right now. Meet with your real estate agent and mortgage professional today and see whether it is the right time for you and […]
The Trick Is To Not Flood the Valley
Banks and the government have struggled to get the current foreclosure situation under control. The modification programs have helped many families avoid foreclosure. However, the number is but a small percentage of those incapable or unwilling to pay their mortgage. This has resulted in an ever increasing number of bank owned foreclosures (REOs). The banks […]
How Will the Foreclosure Mess Impact Prices?
Three months ago, it was revealed that many banks were guilty of improperly processing the paperwork on their foreclosures. Most banks at the time declared a foreclosure moratorium while they reviewed their paperwork and corrected any errors. Today, we want to give you an update on the situation and explain how the housing market will […]
The Basics of Credit Scoring
Today, we are going to be centering on the basics of an increasingly important portion of a buyer’s mortgage application – the credit score. First, the 3 major national credit bureaus are: Experian (XP), Transunion (TU), and Equifax (EF)….But better terms to describe their function are: Repository – they are huge “holders” of data; information about you and […]
Negative Equity: Not Good But Improving
Back in October, we posted that falling home prices would drive more homeowners into a negative equity situation where their home was worth less than the amount of their mortgage (also known as the house being ‘under water’ or ‘upside down’). If a homeowner falls further into negative equity, it increases the chances that they […]
Are Homes Actually UNDERVALUED?
We have been barraged with headlines and news stories telling us that home values will continue to soften for the next several quarters. Some experts are predicting that today’s values will drop and not be seen again until the middle of 2012 at the earliest. We concur with these estimates based on the current demand […]
Demand for Housing Will Increase in 2011
The last Pending Home Sales Index from the National Association of Realtors (NAR) showed a substantial 10.4% month-over-month increase. According to NAR the index measures: housing contract activity. It is based on signed real estate contracts for existing single-family homes, condos and co-ops. A signed contract is not counted as a sale until the transaction closes. […]
Impact of Rising Rates When Buying a Home
There has been much volatility in the 30 year mortgage rate over the last few weeks. According to Freddie Mac, rates have soared almost a half of a percent in just the last four weeks and now are as high as they have been in the last six months. Frank Nothaft, vice president and chief economist of Freddie Mac, […]
Insider Secrets To An Optimal Credit Score
As you prepare to apply for credit (like a home mortgage) understand that it is significantly better to have your best possible credit profile BEFORE applying. Working to improve your score during the mortgage process can be done, but there are two problems. One, time to clear up items can become an obstacle when compared […]
Forbes: Housing Had a Superb Decade
Has real estate been a good investment over the last decade? Many people would be quick to answer ‘no’ to that question. However, they would be wrong. Real estate prices in this past decade have appreciated nicely despite the challenges over the last four years. Forbes.com reported on this issue two days ago: With all […]
House Price Declines Hitting Most States
This winter will see a softening of prices in most parts of the country. If you are considering selling your home in the near future, you should set an appointment with a real estate professional that has experience in your local market. That being said, we want to explain the magnitude of the challenge. The […]
Current Foreclosure Facts from LPS
Lending Processing Services (LPS) issues a monthly Mortgage Monitor which looks at several aspects of mortgage performance. We like to study this report to see what is currently taking place with delinquencies and foreclosures. The November report (which covers through October) had some very interesting information. Delinquency Rates All delinquency statuses are calculated using the MBA […]
This is Good News for Housing, Not Bad News
We found it interesting to see how some media outlets reported on the latest Fannie Mae National Housing Survey. It is true that the number of people who believe that now is a good time to buy a home dipped 2% since the June report. However, the report also showed that 68% of people still […]
House Prices: The Impact of Supply and Demand
For some time now, we have attempted to shed light on the fact that pricing in today’s real estate market will be determined by the concept of ‘supply and demand’. If supply continues to increase and demand softens (or even remains constant) prices will continue to fall. Even the National Association of Realtors (NAR) has […]
Let’s Give Thanks for All We Have!
See you on Monday!
FSBOs Get More Money! We Don’t Think So
We hold the Kellogg School of Management at Northwestern University in very high esteem. They are without question one of the finest research institutions in America. Their work on the psychology of strategic defaulters has been mentioned in this blog on several occasions. That being said, we want to take a close look at an […]
Why You MUST NOT WAIT to Sell Your House
The best real estate professionals are trying to convince anyone thinking of selling in the near future to correct the price on their home and sell now before the home loses even further value. Some cynical homeowners think the agent is just trying to create fear in order to make a quick sale. Some sellers […]
Difference between Telling a ‘White Lie’ and Lying
When I was growing up, both my family and the teachers at the Catholic school I attended made a distinction between a ‘white lie’ and a lie. It seemed ‘white lies’ were okay while lying was a sin. As a child, I had difficulty understanding where the line was. As I matured, I realized there […]
20,000 Houses Will Sell This Weekend. Will Yours?
There is no doubt that demand for housing has slowed. The National Association of Realtor’s 3rd Quarter Existing Homes Sales Report showed that sales were down in all fifty states and the District of Columbia (3rd quarter vs. the 2nd quarter). The decline was in double digits in all but two states (Nevada and California). Those are […]
There Is Still a Tax Credit Available!
As Veteran’s Day passed last week, I forgot to remind everyone to thank those who have served our country AND to remind everyone out there in the blogosphere that eligible Veterans are still able to take advantage of the Federal Tax Credits that expired for the rest of the population a few months back. Yes, […]
Shedding Some Light on the Issue of Shadow Inventory
There appears to be some confusion regarding the amount of shadow inventory that currently exists and the impact it will continue to have on the real estate market. Today, we want to bring some clarity to both of these issues. First, let’s define shadow inventory because part of the confusion is in differing definitions. Originally, […]
Myths: The Earth Is Flat and Newspapers Sell Houses
It is amazing how masses of people can believe something that is absolutely untrue. The greatest example of this is that at one time the vast majority of people believed the world to be flat. Today, we want to debunk another commonly held belief – that newspapers sell houses. Somehow this notion gained believability even though […]
