by on May 29, 2011
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Allen Tate Realtors
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Monday, May 30, 2011
Friday, May 27, 2011
Why You Need a True Professional to Sell Your Home
by on May 27, 2011
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
The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a buyer willing to pay fair market value for your home at a time that there are mass inventories of foreclosures and short sales will take a true real estate professional. Finding reasonable financing can also be tricky in today’s lending environment.You need a skilled negotiator
In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that off after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.
Bottom Line
We believe that famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Thursday, May 26, 2011
Appraisals: Why You Must Now Sell Your House Twice
by on May 24, 2011
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 buyer has the ability to repay the loan. However, this does not just involve the borrower buying the property.
The second way a bank can protect their investment in the mortgage is to make sure that the collateral backing that mortgage is secure. That is where the appraisal comes in. The bank wants to make sure that, should the buyer not be able to make their payments, the house they will be forced to take back will sell for an amount at least equal to the balance left on the mortgage. For that reason, the banks seem to be getting more conservative with appraisals also.
This past week, the National Association of Realtors (NAR) released their Existing Homes Sales Report. In that report, they said:
“11 percent of Realtors® report a contract was cancelled in April from an appraisal coming in below the price negotiated between a buyer and seller, 10 percent had a contract delayed, and 14 percent said a contract was renegotiated to a lower sales price as a result of a low appraisal.”One out of four real estate transactions was either cancelled (11%) or renegotiated to a lower sales price (14%) because of a low appraisal!!
Bottom Line
Every house now has to be sold twice: first, to a potential purchaser and then to the bank appraiser. And, it seems that the second sale may be the more difficult of the two. Sit with a local real estate professional and make sure you put together a plan for both sales.
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Tuesday, May 24, 2011
Finding the Right Sales Price Isn't Easy
Having to drop a home's sale price from its initial list price is common. On average, sellers reduce their list prices after about 2.5 months by 8 percent when a property hasn't sold yet, according to a report by Trulia.com. After making one price reduction, 35 percent of those sellers will make a second price cut too.
Even homes without any obvious faults are undergoing price cuts, agents say.
Real estate pros are finding that to find the right price for a home is much more than comparing it to a set of comps. But determining a price to fit a few of a home's unique limitations isn't easy. For example, a 1946 five-bedroom home in a sought-after neighborhood in Scarsdale, N.Y., has had five sales price adjustments. It was first listed at $1.699 million and now is on the market for $1.278 million.
While buyer offers are coming in, real estate pro Claire Civetta with Coldwell Banker Residential Brokerage in Scarsdale, N.Y., says they are far below asking price. The home is on a busy road and doesn’t have as large of buffer from street noise as other nearby homes.
So while comparable houses reveal this one to be well priced, Civetta says “the market has been telling us something else.”
Source: “In House Pricing, Own Up to Flaws,” The New York Times (May 19, 2011)
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Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Monday, May 23, 2011
National Housing Survey: What America Thinks
by on May 23, 2011
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 a Home
When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:- It means having a good place to raise children and provide them with a good education
- You have a physical structure where you and your family feel safe
- It allows you to have more space for your family
- It gives you control of what you do with your living space (renovations and updates)
The Home as an Investment
Though most people purchase a home for non-financial reasons, everyone realizes their is a money component to homeownership. Here is what they said on this issue:- 66% of the general population (and 71% of homeowners) believe that homeownership is a ‘safe’ investment. This is the first time since the studies inception in 2003 that this number increased.
- 57% believe that homeownership has more potential as an investment than any other traditional asset class.
- 67% think that now is a good time to buy a home
Rent vs. Buy
We are always interested in the difference people see in renting vs. owning.- 65% of renters have aspirations to someday own their own home
- 74% of renters think that owning is superior to renting (up 6% since the last survey)
- 96% of homeowners see homeownership as a positive experience (3% see it as a negative experience) while 82% of renters see renting as a positive experience (16% see it as a negative experience)
- 92% of homeowners live in a single family residence while 48% of renters live in a multi-unit building
Bottom Line
Our belief in the value of homeownership grows each time this survey is released.
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Sunday, May 22, 2011
Allen Tate Company is Top Carolinas-Based Real Estate Firm
Company ranks #9 among independent brokers on REAL Trends 500 report
CHARLOTTE, N.C. (May 16, 2011) – Allen Tate Company is the top real estate firm based in the Carolinas and ranks #9 among the country’s largest independently owned, non-franchised brokers, and #16 among all brokers, based on closed transactions sides for 2010, according to the REAL Trends 500 report.
The annual report, which ranks the country’s top 500 real estate firms, will be published this month by REAL Trends, the nation’s leading publisher of trends and analysis of the residential real estate brokerage industry.
Allen Tate Company closed 12,266 transaction sides in 2010 to earn the rankings.
“Allen Tate consistently ranks among the top 3 percent of residential brokerage firms in the country, and continues to lead the Carolinas as the top-ranked real estate firm based here,” said Pat Riley, president, Allen Tate Company. “Our national rankings distinguish us among clients relocating here from other parts of the country.”
About REAL Trends 500
The REAL Trends 500 is an annual research report which identifies the country’s largest and most successful residential firms as ranked by closed transaction sides and separately by closed sales volume. This report represents the most trusted standard of measuring the performance of the nation’s leading realty service firms.
About Allen Tate Company
Allen Tate Realtors is the Carolinas’ largest real estate company with offices in the Charlotte, Triad, Triangle and Upstate South Carolina regions. Allen Tate offers the advantage of hometown service with international capabilities and the latest in real estate technology and maximum marketing exposure. Visit my website wwww.JoeNaccarato.com to search for your new home.
Take advantage of this market, ask questions, e mail me, do something! You will not see low mortgage rates, high inventory, and sellers willing to negotiate for a long time.
Joe Naccarato, Broker, Realtor
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Mortgage Rates Reach Another Low for 2011
For the fifth straight week, mortgage rates inched down again--this time reaching the lowest level of the year as well as lowest year-to-date. The 30-year fixed-rate mortgage averaged 4.61 percent this week, while the 15-year rate averaged 3.80 percent, Freddie Mac reports in its weekly mortgage market survey.
The 30-year mortgage hasn’t reached 4.61 percent or below since December 2010. Last year at this time, it averaged 4.84 percent while the 15-year fixed-rate mortgage averaged 4.24 percent.
The falling rates may be yet another lure to buyers during real estate’s traditionally prime home buying season. Owning a home has also recently been found to be more affordable than renting in 78 percent of the major U.S. cities, according to the latest data from Trulia.
Mortgage applications, meanwhile, are increasing as interest rates continue to fall. Mortgage loan application volume increased 7.8 percent this week when compared to the week prior, according to the Mortgage Bankers Association. Refinancings hit the highest level since mid-December, increasing 13.2 percent over the prior week, while the purchase index for mortgage applications dropped 3.2 percent.
Source: “Fixed-Rate Mortgages Hit a New Year-to-Date Low,” Freddie Mac (May 19, 2011) and “Mortgage Applications Grow Again on Home Refinancings,” HousingWire (May 18, 2011)
Top Performer Award Recipient
Allen Tate Realtors
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e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Saturday, May 21, 2011
Uncover Best Investments With the Right Data
Supplying key housing data based on ZIP
code — instead of an entire geographic area — can give your investor clients greater insight into short-term and long-term appreciation potential of a property and help them make more informed decisions, experts say.
Here are three key pieces of data that real estate professionals can provide to help uncover homes with the greatest probability for appreciation:
▪ Home valuations: Home valuations by ZIP code compared with the foreclosure inventory for that same ZIP code can offer insight into the health of the area's housing market.
▪ Foreclosure inventory: A better snapshot at the employment outlook in the area can be found by evaluating the number of foreclosure homes than even the city-wide employment figures, writes Elaine Zimmerman in a recent RISMedia article. An area with less than one foreclosure per 10,000 dwellings indicates low unemployment for that ZIP code.
▪ Asking prices: Compare the asking price for foreclosures in a ZIP code to similar non-foreclosure properties in the same ZIP code. If there isn’t a more than 20 percent difference between the two, the area will recover quickly; the smaller the percentage of difference, the more quickly that ZIP code will rebound, Zimmerman notes in the article.
Source: “How to Use Foreclosure Data to Identify Investment Opportunities,” RISMedia (May 17, 2011)
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Thursday, May 19, 2011
Mortgage Money IS Available…For Now
by on May 19, 2011
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 for customers. It’s just that lenders, for the most part, only approve borrowers now that can demonstrate their ABILITY to repay (via income verification) and their WILLINGNESS to repay (via credit scoring and automated underwriting systems).
That being said, as I look ahead, the mortgage product menu is looking a bit blurry:
Let’s start with FHA…rumors are stronger about increasing the minimum down payment from 3.5% to 5%…there is also talk of cutting back the allowable seller’s concession from 6% to 3%…but further, the maximum loan limit allowable under FHA was inflated to assist in the housing recovery and that is set to expire later this year. Predictions vary on the cut range, but I think a $100,000+ reduction is likely. Is the government trying to lessen demand for FHA insured financing? Seems like they are.
Well, what about Conventional loans? Conforming products (typically underwritten to FannieMae or FreddieMac guidelines) seem okay for now, assuming the GSEs stay in business. But, Jumbo loans (those in excess of the $729,250 amount for a one family home) are facing the 5% Risk Retention requirements being brought on by QRM Rules. How will lenders price loans where they need to set aside 5% of the loan amount in reserve?
At the same time, Jumbo lenders are starting to explore different options for qualification. I am hearing things like “average monthly deposits as support for income when tax returns might appear insufficient” and such. This looks like more aggressive lending beginning to reappear in the non-conforming world.
With inflation starting to heat up, and rates likely to move higher, look for lenders to start offering more adjustable rate mortgages to help people qualify. It is the standard reaction when the hike in rates either scares buyers back to their apartments or puts unlocked loans which are in process in jeopardy of not remaining approved.
My advice stays the same. Pigs get slaughtered. If you can get a mortgage today, at these rates, and with these guidelines, TAKE IT. Too many people will regret missing this wonderful opportunity that 2011 has presented them.
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
Wednesday, May 18, 2011
Where Are Mortgage Rates Headed?
by on May 18, 2011
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 reason we try to keep you current on what is projected for rates in the future.
Four major institutions project rates: The National Association of Realtors (NAR), Fannie Mae, Freddie Mac and PMI. Here is what each is seeing in the next year.
Bottom Line
If you are looking to buy a house and are waiting to see what will happen with prices, remember interest rates will also impact your housing cost
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Allen Tate Realtors
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e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
2011 NAR Best Housing Markets. Charlotte Came in #1
Source: NAR, Comparing Q1 2010 & Q1 2011
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
Tuesday, May 17, 2011
New Homes Competing Against Foreclosures
Builders broke ground on fewer homes in April as the new-home sector continues to face competition from a glut of foreclosures that in many markets has brought home values down.
Construction on homes and apartments dropped 10.6 percent to a seasonally adjusted annual rate of 523,000 units, the Commerce Department reported on Tuesday. In March, housing starts reached a 585,000-unit pace (an upward revised figure). Residential construction is down 23.9 percent compared to April of last year--its largest drop since October 2009.
Considered the “volatile part” of the new-home market at the moment, construction of multifamily homes (buildings with five or more units) particularly hampered housing starts last month, decreasing 28.3 percent. Single-family home construction--which generally makes up 75 percent of all housing starts--dropped 5.1 percent from a month earlier.
Regionally, the results were mixed. In the South, housing starts dropped 23 percent and 4.8 percent in the Northeast. However, the Midwest posted a 15.7 percent gain in housing starts, as well as the West with 3.7 percent.
Permits for future home construction dropped last month, falling 4 percent to a 551,000-unit pace last month, the Commerce Department reports.
The Distressed Sales Impact
New-home construction is being weighed down by an oversupply of existing homes on the market, particularly foreclosures, experts say. Buyers are increasingly choosing bargain-priced foreclosures and previously owned homes over--in general--pricier new homes.
“Builder confidence has hardly budged over the past six months as persistent concerns regarding competition from distressed property sales, lack of production credit, inaccurate appraisals, and proposals to reduce government support of housing," NAHB Chairman Bob Nielsen said Monday in statement about the National Association of Home Builder/Wells Fargo Housing Market Index, which shows builders’ confidence about the new-home market remains low.
Source: “U.S. Housing Starts, Permits Fall in April,” Reuters News (May 17, 2011), “US Apr Housing Starts -10.6% to 523K,” Dow Jones International News (May 17, 2011), and “U.S. NAHB: Distress Homes Continue to Weigh on New Sales,” Market News International (May 16, 2011)
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Allen Tate Realtors
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e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
Monday, May 16, 2011
Secondary Markets Give Commercial a Boost
The commercial market’s rebound is starting to extend beyond just coastal regions and into secondary markets as credit availability continues to improve, Bloomberg News reports.
Minneapolis, Dallas, and Denver have posted some of the largest gains in sales by dollar volume among major metro areas outside the coasts in the first quarter, reports CoStar Group Inc.
In Minneapolis, sales rose 127 percent from a year earlier. In Dallas, sales rose 108 percent and 89 percent in Denver. For the country, sales in commercial property increased 47 percent.
High demand for commercial properties in New York, Washington, D.C., and San Francisco have sent prices higher, so investors are starting to eye secondary markets for its potential for higher returns.
“You’ll see a move to the secondary markets because there’s a higher yield there and also lending is coming back in those markets,” says Janice Stanton, senior managing director of capital markets for Cushman & Wakefield Inc.
Robert Bach, chief economist for Grubb & Ellis Co., told Bloomberg News that areas like Dallas, Houston, and Minneapolis are attractive commercial markets because the employment or population growth is high in those areas.
Source: “Property Buyers Expand Their View as Rebound Spreads From Denver to Dallas,” Bloomberg (May 11, 2011)
Joe Naccarato, Broker, Realtor
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
Moving Up? Doing It Now May Make Sense
by on May 16, 2011
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 someone thinking about buying either a first home or move-up home valued over $400,000 in certain markets in the country.
What is the ‘Conforming Loan Limit’?
The ‘conforming loan limit’ sets the maximum loan amount, which either Fannie Mae or Freddie Mac are allowed to purchase individual loans. If a loan is larger than this limit, it is considered a ‘jumbo’ loan and is automatically disqualified from being sponsored by Fannie and Freddie. It would have to be handled by the private market.A Little History
Prior to 2008, the loan limit was $417,000. When prices started to rapidly escalate in certain regions of the country, the limit was increased. In some counties, that limit jumped to over $700,000. These new limits are scheduled to expire this October. If this happens, Fannie Mae and Freddie Mac may no longer be involved in these loans.What Impact Will This Have on a Buyer?
It will cost more in mortgage payments if buyers are purchasing a home over the limit in a region where the limit changed. The Mortgage Market Note explains:For the affected borrowers, because mortgage rates for jumbo mortgages tend to be higher than rates for conforming loans, financing costs may be higher… Over the latest year, the difference between mortgage rates for jumbo loans and jumbo-conforming mortgages has varied between about ½ and ¾ of a percentage point.Just a ½ point increase in mortgage rate on a $500,000 mortgage means an additional $154.84 in your monthly mortgage payment; a difference greater than $55,000 over the life of a 30 year mortgage.
Which Counties are Impacted and to What Degree?
Below is a map of the regions affected from the Mortgage Market Note. You can get a breakdown of each impacted county in this report also.
Bottom Line
If you are thinking about buying a home in the near future, you should know how this issue may impact you. Sit down with a real estate professional familiar with your area for further advice.
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
Sunday, May 15, 2011
Late payments on mortgages fall again in 1st qtr
, On Sunday May 15, 2011, 8:13 pm EDT
NEW YORK (AP) -- The number of homeowners making late payments -- or no payments -- on their mortgages fell for the fifth straight quarter in the first three months of 2011. But the figure remains stubbornly high compared with the pre-crisis norm, likely because of the huge backlog of homes waiting to be foreclosed.
The rate of borrowers nationwide who were 60 days or more past due on their mortgage payments fell to 6.19 percent for the three months ended March 31, according to credit reporting agency TransUnion. That was down from 6.77 percent at the same time last year.
Delinquency rates were highest in Florida, at 14.37 percent, down from 14.65 percent a year ago, followed by last year's leader, Nevada, at 14.19 percent, down from 15.98 percent.
Arizona was next, at 9.14 percent, compared with 10.94 percent in the 2010 first quarter. California, fourth at 8.58 percent, showed the biggest drop of any state in the past year, falling from 10.68 percent. These four states were the hardest hit by the housing meltdown.
North and South Dakota continue to have the lowest delinquency rates in the country, at 1.54 percent and 2.53 percent, respectively.
South Dakota's rate actually rose, from 2.44 percent last year, one of nine states that saw an increase in late payments compared with last year. The biggest increase was in Maine, where delinquency climbed to 5.04 percent of borrowers, from 4.64 percent in the 2010 first quarter.
While the rates in most states and the nationwide rate are down from their peaks, they are still not near the pre-recession normal of around 2 percent, said Tim Martin, TransUnion's group vice president for the U.S. housing market. Nor has the mortgage delinquency rate improved as much as similar statistics for credit cards or auto loans.
"It's still a long way from the norm, and not improving as much as some of the other credit types," he said.
One reason for the rate to remain stubbornly high is the length of time it takes to foreclose on a house. There are up to 3.7 million seriously delinquent homes in the country, according to some estimates. And foreclosure listing firm RealtyTrac Inc. said last week that processing delays appear to be getting worse. In states like New York, for example, it now takes an average of more than two years for a home to go from the initial stage of foreclosure to being repossessed by a bank.
TransUnion's data is culled from 27 million credit reports, representing about 10 percent of all U.S. consumers who actively use some form of credit.
If delinquency continues to improve at its current pace, Martin said rates won't return to normal for another 8 years. "It just gives you a sense for how high these rates are, historically speaking, and how far we have to go at this kind of slow improvement pace," he said. TransUnion expects rates to continue drifting down through the rest of the year.
Data show that home prices and unemployment are strongly correlated with delinquency. While few mortgages written in recent years are falling into delinquency, Martin noted that housing prices appear to be falling again, which could discourage homeowners with little or no equity in their property from making their payments.
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Allen Tate Realtors
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e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
Friday, May 13, 2011
Homeownership: Building Family Wealth
by on May 11, 2011
The question facing many families making a move today is whether it makes more sense to rent or buy. We have been very upfront in discussing our unwavering belief in homeownership. It is for that reason that today we want to quote from a study issued by an institution with no ties to the real estate business or mortgaging.
The Joint Center for Housing Studies at Harvard University just released a study, America’s Rental Housing: Meeting Challenges, Building on Opportunities. The study discusses the need for a greater supply of quality rental units in America. We agree. However, there were a few nuggets of information found in the study we want everyone to know.
American’s Belief in Homeownership Has NOT Fundamentally Changed
There seems to be some feeling that homeownership has lost it’s luster and perhaps is no longer a component of the American Dream. Harvard explains:To date, attitudes about owning have become only slightly more negative while attitudes about whether now is a good time to buy are little different than before the housing boom. In the latest Fannie Mae housing survey from October–December 2010, the vast majority of respondents—including renters—continued to believe that homeownership makes more financial sense than renting. In addition, nearly two-thirds of all renters surveyed reported their intention to buy homes in the future.
Homeownership Creates Wealth
Because prices have fallen dramatically in many parts of the country in the last five years, some are too easily dismissing homeownership’s role in building family wealth over the last century. The study explains:In addition, renters have only a fraction of the net wealth of owners. Near the peak of the housing bubble in 2007, the median net wealth of homeowners was $234,600—about 46 times the $5,100 median for renters. Even if homeowner wealth fell back to 1995 levels, it would still be 27.5 times the median for renters.The recent fall in prices can’t wipe out the 100 year history housing has as a good long-term investment.
Bottom Line
The study was promoting the need for the construction of more rental housing for the average American family. However, when it came to a discusion on building wealth, Harvard offered:“And for individuals as well as businesses, owning rental properties is an avenue for wealth creation.”And how do these individuals and businesses create that wealth. Owning the real estate and collecting rent from their tenants to offset the mortgage payments. Build your family’s wealth – not your landlord’s. We believe OWNERSHIP almost always makes the most sense.
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Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
Mortgage Rates Drop to Lowest Level of Year
In declining for the fourth straight week, mortgage rates reached their lowest levels of 2011.
The 30-year fixed-rate mortgage, a popular choice among home buyers, averaged 4.63 percent this week, reports Freddie Mac in its weekly mortgage market survey. Last week, the 30-year mortgage stood at 4.71 percent; compared to last year at this time, it averaged 4.93 percent.
Meanwhile, the 15-year fixed-rate mortgage also reached its lowest level of the year, averaging 3.82 percent this week from 3.89 percent last week. Last year at this time, the 15-year mortgage averaged 4.30 percent.
The 5-year adjustable-rate mortgage averaged 3.41 percent, down from last week’s 3.47 percent average. A year ago, it averaged 3.95 percent.
As rates continue to fall, the number of mortgage applications are increasing. Mortgage applications increased 8.2 percent this week compared to one week earlier, reports the Mortgage Bankers Association. The refinancing index increased 9 percent--it’s highest level since mid-March. Mortgage applications for purchase also got a boost, rising 7.1 percent compared to the previous week.
Source: “30-Year Fixed-Rate Mortgage Drops to 4.63 Percent,” Freddie Mac (May 12, 2011) and “Mortgage Applications Increased 8 Percent in Early May, Says MBA,” RISMedia (May 12, 2011)
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
Tuesday, May 10, 2011
5 Reasons You Should Consider Selling Now
by on May 10, 2011
If you plan on moving anytime in 2011, you should strongly consider selling your house now rather than waiting. Here are five reasons why:
1.) This is when your house will get the most exposure
The spring, and particularly the month of May, is when most buyers enter the real estate market. This surge of buyers dramatically increases the exposure for your house . The best chance of getting quality offers (perhaps even multiple offers) is RIGHT NOW!2.) Foreclosures and short sales will increase in about 90 days
The good news is that the number of people paying their mortgage on time is increasing. This will lead to less distressed property sales later this year and throughout 2012. The not-so-good news is that there is still a large inventory of existing foreclosures and short sales that will still be coming to market.As an example, LPS reported in their latest Mortgage Monitor that:
- There are still twice as many loans going 90+ days delinquent as are starting foreclosure
- There are almost three times the number of foreclosure starts as there are foreclosure sales
- Distressed property inventory levels are almost 45 times the rate of monthly foreclosure sales
3.) Interest rates have risen over the last six months
Interest rates have stabilized recently. However, in the last six months, interest rates have climbed over 1/2%. Every time the rates increase 1/4%, approximately 250,000 buyers are eliminated from qualifying for a mortgage. In an environment of volatile rates, waiting could mean that there will be fewer buyers eligible to purchase your house. It also could mean that you will pay a higher rate on the next home you buy.4.) Qualifying for a mortgage is about to get even more difficult
Besides increasing rates, there are other factors that will hinder a buyer’s ability to qualify for a mortgage as we move forward. Lending standards have been getting tighter over the last year. And as the government debates the new proposed guidelines (QRM), banks are gearing up for even more stringent standards.Morgan Stanley recently stated:
“Recent developments in issues such as GSE reform, Dodd-Frank securitization rules, and foreclosure settlement issues suggest a tighter and more expensive environment for mortgage credit.”This may impact any potential purchaser for your property and may also impact your next purchase.
5.) It’s time to get on with your life
Probably the most important reason to sell is so you can get on with your life. You placed your home on the market for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you decided to move in the first place. Are these reasons still important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.Bottom Line
If you plan to sell this year, the reasons above prove that selling now makes more sense than waiting to later in the year. Sit with a real estate professional in your area today to fully understand your best option.
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
Existing-Home Sales Rise in Most States
Existing-home sales continued to recover in the first quarter with gains in 49 states and the District of Columbia, while 22 percent of metropolitan areas saw prices rise from a year ago, according to the latest survey by the NATIONAL ASSOCIATION OF REALTORS®.
Total state existing-home sales, including single-family homes and condos, rose 8.3 percent to a seasonally adjusted annual rate of 5.14 million in the first quarter from 4.75 million in the fourth quarter, and are only 0.8 percent below a 5.18 million pace during the same period in 2010.
Also in the first quarter, the median existing single-family home price rose in 34 out of 153 metropolitan statistical areas from the first quarter of 2010, including four with double-digit increases; one was unchanged and 118 areas showed price declines.
Lawrence Yun, NAR chief economist, said home prices are all over the map. “The reading of quarterly price data can be volatile because they are based on the types of homes that are sold during the quarter. When buyers principally purchase distressed properties in a given market, the recorded prices will be very low, which is what we’re seeing now in much of the country,” he said. “Annual price data provides a better guide about the direction of the market in those areas.”
Distressed Sales Put Pressure on Prices
The national median existing single-family home price was $158,700 in the first quarter, down 4.6 percent from $166,400 in the first quarter of 2010. The median is where half sold for more and half sold for less. Distressed homes typically sold at a discount of about 20 percent, accounted for 39 percent of first quarter sales, up from 36 percent a year earlier.
Yun said lower priced homes have seen the best sales performance. “The biggest sales increase has been in the lower price ranges, which are popular with investors and cash buyers,” he said. “The preponderance of sales activity at the lower end is bringing down the median price, so what we’re seeing is the result of a change in the composition of home sales.”
Although sales are slightly below a year ago, the volume of homes sold for $100,000 or less in the first quarter was 8.9 percent higher than the first quarter of 2010, creating a downward skew on the overall median price.
The share of all-cash home purchases rose to 33 percent in the first quarter from 27 percent in the first quarter of 2010.
More Investors in the Market
Investors accounted for 21 percent of first quarter transactions, up from 18 percent a year ago, while first-time buyers purchased 32 percent of homes, down from 42 percent in the first quarter of 2010 when a tax credit was in place. Repeat buyers accounted for a 47 percent market share in the first quarter, up from 40 percent a year earlier.
“The rising sales trend in nearly all states is a part of the healing process to clear off inventory. Sales need to rise before prices can firm up,” Yun added.
NAR President Ron Phipps said strong sales of distressed homes are exactly what the market needs. “The good news is foreclosures, which account for two-thirds of all distressed homes sold, are selling very quickly,” he said. “Short sales still take far too long to get lender approval, but it appears the inventory of distressed property is peaking and will be gradually declining next year. This means the market should slowly return to balance. We are encouraged that recent home buyers are having exceptionally low default rates.”
According to Freddie Mac, the national commitment rate on a 30-year conventional fixed-rate mortgage averaged 4.85 percent in the first quarter, up from a record low 4.41 percent in the fourth quarter, but below the 5.00 percent average in the first quarter of 2010.
A Closer Look at Price Trends
In the condo sector, metro area condominium and cooperative prices – covering changes in 53 metro areas – showed the national median existing-condo price was $152,900 in the first quarter, down 10.4 percent from the first quarter of 2010. Eleven metros showed increases in the median condo price from a year ago, one was unchanged and 41 areas had declines.
Regionally, existing-home sales in the Northeast increased 0.8 percent in the first quarter to a level of 800,000 but are 7.3 percent below the first quarter of 2010. The median existing single-family home price in the Northeast declined 5.0 percent to $234,100 in the first quarter from a year ago.
Existing-home sales in the Midwest rose 7.9 percent in the first quarter to a pace of 1.09 million but are 5.0 percent below a year ago. The median existing single-family home price in the Midwest fell 5.3 percent to $124,400 in the first quarter from the same period in 2010.
In the South, existing-home sales increased 8.5 percent in the first quarter to an annual rate of 1.96 million and are 2.8 percent higher than the first quarter of 2010. The median existing single-family home price in the South slipped 0.6 percent to $141,800 in the first quarter from a year earlier.
Existing-home sales in the West jumped 13.5 percent in the first quarter to a level of 1.29 million and are 2.1 percent above a year ago. The median existing single-family home price in the West fell 4.7 percent to $197,400 in the first quarter from the first quarter of 2010.
Source: NAR
Top Performer Award Recipient
Allen Tate Realtors
Tel. 704.953.0183
e mail: joe.naccarato@allentate.com
Do you know someone buying or selling anywhere? I can help them! Please give them my phone number!
Referrals are greatly appreciated.
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