Today's Interest Rates

Interest rates are expected to rise so if you are thinking of buying a home, now is the time with surplus inventory of homes to choose from...great deals are out there!
 

30-Year Fixed 4.875% (5.048% APR)

15-Year Fixed 4.25% (4.507% APR)

5-Year Adjustable Rate Mortgage 3.25%Future Adjustments (3.294% AP

Information from: Quicken Home Loans

Get Gephardt: Viral Video being used to Steal Identities

Get Gephardt: Viral Video being used to Steal Identities

GROWING NUMBER OF CASH BUYERS IN REAL ESTATE

According to the National Association of Realtors, 28 percent of sales last year were all-cash transaction reported in a story from the Wall Street Journal, February 8, 2011. 

This significant jump in cash purchases the report said, "is another sign of the revival of animal spirits."

The report further stated that cash buyers can usually command 5-10 percent more off the asking price compared to a buyer using a mortgage and that sellers prefer cash deals since it avoids such risks as job loss or bank’s changing their mind and cash transactions usually close much faster.

Article- Excerpts from Wall Street Journal, Feb 8, 2011 and National Association of Realtors posted by Shirlee McGarry® Utah Realtor,  freelance writer and published author
Pictures - Fotosearch stock photos

NAR President Ron Phipps says "ITS ALL ABOUT JOBS!"

In a recent report from the NAR President, Ron Phipps, the Treasury Department later this week will issue recommended changes to the structure of Fannie Mae and Freddie Mac. According to Phipps, this development has been years-long in debate over what the government’s role in housing should be.

FACTS ABOUT HOW THE HOUSING MARKET
AFFECTS US AS A NATION

FACT: Housing for families is a vital part to our nation. It is stated as fact that 500 jobs are added to the economy for every additional 1,000 home sales. This gives the opportunity to offer to our families, neighbors and friends a chance to work in real jobs

FACT: Every home purchase pumps $60,000 into the economy

FACT: 15% of the national gross domestic product is from housing

FACT: Homeowners pay 80 to 90 percent of ALL federal income taxes

Housing is definitely the engine that drives out economy, yet Critics say housing is a drain on federal resources. Eight of the last ten recessions have ended as a result of robust housing markets. The other two ended as a result of war spending. The choice is easy. America needs a healthy housing market to thrive.

According to Pippin, “NAR will be reaching out to Congress and the White House to emphasize the clear connection between housing, jobs and the economy. Rather than limit support for housing, and the availability of credit, NAR is calling on Congress and the White House to advance policies that will move the housing market back to a healthy 5.5 million sales, where it SHOULD be”.

Here is what NAR will address to Congress:

We will be asking lawmakers to:

• Preserve the mortgage interest deduction at current levels.

• Move the credit pendulum to equilibrium, defined by a median credit score of 720.

• Maintain government backing in the mortgage market as part of GSE Reform.

Pippin states that the these three steps would help bring the housing market back to a normal level, possibly generating an additional 1 million home sales and 500,000 jobs.

Here is hoping that Congress will listen to the voice for real estate and that the White House gets the message: REAL ESTATE IS ALL ABOUT JOBS.

From Nar REPORT: February 9, 2011 by NAR -Ron Phipps

A Little Humor!

Congratulations on your New Home!

A client bought a new home and the broker wanted to send flowers for the occasion.

They arrived at the home and the owner read the card; it said

“Rest in Peace”.

The owner was angry and called the florist to complain.

After he had told the florist of the obvious mistake and how angry he was, the florist said. 

“Sir, I’m really sorry for the mistake, but rather than getting angry you should imagine this: somewhere there is a funeral taking place today, and they have flowers with a note saying, “Congratulations on your new home”.

Are Condominiums a Good Investment?

CONDOMINIUMS AS AN INVESTMENT

As is with all real estate purchases, buyer's and investors alike must do their research and be aware of the current market trends and the rate of return for your real estate investment. As a general rule, condominiums are traditionally the most volatile of real estate investments. Looking back to the 1970s or 1980s or even in (2005-2007) most anyone can still show you the financial scars they carry.

Regardless, condos in recent years have made a strong comeback especially with the popularity of purchasing in resort areas or as a second home. Trends change all the time however, if the pattern continues one should approach buying a condo with knowledge and caution.

One must keep in mind that usually condos are tougher to sell in most areas than single-family homes. Add the mix of the in-famous homeowner’s association with their monthly fees, you have to deal with management issues, rules, and costs that may be out of your control for maintenance and upkeep.

If considering buying a condo, remember to consider your prospective tenant or buyer when you resell. Have you priced so high that your pool of buyers is limited? Regardless if it is in the median price or below, how many people live in one-bedroom condos? Is the development so old that the HOA (homeowner’s association) dues so high and will continue to rise as the development ages and needs repairs?

Condos, as a general rule, fit into two distinct categories – livable and rentable. Inexpensive condos that rent well often don’t appreciate much in value. You can get away with buying a $100,000  or less condo and renting it for $500/month forever. In 20 years, it may barely have appreciated above inflation. Another condo located near downtown or the beach may rent for negative cash flow and appreciate 10-15% per year. One must remember that the normal formulas that apply to single-family homes, are in no way consistent with condos, which is why all investors approach condos with extreme care.

Look for all the LIMITATIONS when buying condos

Check out the homeowners CC&Rs and rules. Some homeowners association rules restrict the rental of units, so make sure you check the limitations before you purchase a condo that you plan to rent. With the new laws in place, many lenders have limitations on financing condos, such as a requirement that a certain percentage of the units be occupied by owners.

Regional Condo/Co-Op Sales

U.S. 530,000 Northeast 210,000 Midwest 80,000 South 170,000 West 70,000 vs. last month:  -1.9%  10.5%  0.0%  -5.6%  -22.2% vs. last year:  -32.2%  -33.8%  -44.4%  -25.4%  -24.7% Click Here to view details

Regional Sales Price of Condo/Co-ops

U.S. $165,300 Northeast $236,200 Midwest $138,600 South $112,200 West $149,100 vs. last year:  -5.5%  4.5%  -10.5%  -17.5%  -6.8% Click Here to view details

Shirlee McGarry® is a Realtor(® with Principal Realty Group and a freelance writer and published author in Utah
Chart from ShirLee's Housing Trends Newsletter - reports from NAR

Pictures - Fotosearch stock photos

'Shadow' real estate inventory may take 4 years to clear

'Shadow' real estate inventory may take 4 years to clear