Attention Home Buyers & Sellers You are not Alone!

Not that many Bargains

Slump Doesn't Yield Expected Bargains
The housing slowdown isn’t giving buyers the big bargains that they might have hoped, and where there are discounts, buyers aren’t leaping to grab them, says Karl E. Case, an economics professor at Wellesley College, who specializes in real estate.

Case says the most recent survey he and a colleague conducted among home buyers revealed growing pessimism about buying in a down market.

“They’re scared they’re going to buy something very expensive that’s going to fall in value,” he says. Sellers, meanwhile, are being “stubborn. They seem to be holding out so far.”

The result: “People are staring each other down.”

Case described home prices as having “downward stickiness,” meaning they don’t fall nearly as much as they rise during the strong periods.

In previous down periods, Case points out, the economy has been in a general slump. This time, in most parts of the country, the economy is growing and adding jobs.

Case concludes the housing market is in “that flat period, of four to six quarters, where prices don’t plummet. They hold on.”

Source: The Boston Globe, Andrew Caffrey (11/26/06)

Make Some Money!

Daily Real Estate News  |  November 20, 2006

Tips for Jumping into Foreclosure Market

Is now the time to snap up a foreclosure? Investors Andy Heller and Scott Frank, who wrote the book Buy Even Lower: The Regular People's Guide to Real Estate Riches, say “yes.”

As fair-weather investors look for easier pickings, competition in foreclosed property market is diminishing, the authors say.

The shorter the time you intend to hold a property, the greater the "minimum investor discount" you require, Heller and Frank advise.

They recommend trying to buy homes for 20 percent to 30 percent off market value if you plan to flip the property; 10 percent to 20 percent off if you'll rent it out with the option to buy; and 5 percent to 10 percent if you intend to rent it out indefinitely.

Sources for REOs include multiple listings services, the Web sites of federal agencies and government-chartered corporations or their affiliates, such as HUD.gov, Ocwen.com (for VA-owned homes), FannieMae.com and FreddieMac.com; national online listing services, such as Realtytrac.com and Foreclosure.com, available by subscription; or property wholesalers, such as Homevestors.com (the "We buy ugly houses" people).

Source: Kiplinger’s Personal Finance Magazine, Patricia Mertz Esswein

Yea! For Buyers!

REALTOR Daily Real Estate News  |  November 10, 2006

Slow Market, Election Shakeup Present Opportunity

Despite a softening real estate market, the sky isn’t falling. In fact, today’s market conditions are ideal for buyers, who can choose from a wider selection of homes, find better deals, and still take advantage of low interest rates. “The media isn’t telling the story. These are perfect conditions for the buyer,” said Tom Stevens, president of the NATIONAL ASSOCIATION OF REALTORS®, at the Member & Director Update on Thursday evening. To help consumers cut through the negative media messages and realize that now is the right time to buy, NAR is running full-page ads in major national newspapers, including The Wall Street Journal, USA Today, and the Los Angeles Times. The ads are the start of a larger NAR campaign, which also will include radio and network TV commercials. “A price correction is not something we should fear,” added NAR Chief Economist David Lereah. Buyers who had been on the cusp of affording a home will have the opportunity to jump into the market, he said. And unlike in housing downturns of the past, which were spurred by job losses and high interest rates, today’s consumers have job stability and the financial wherewithal to purchase a home, Lereah added. He also noted that 74 percent of housing markets are now on an upward swing.

Rates go Lower!!

Sorry for the delay!! My hard drive crashed ugh!!

Mortgage Rates Fall as Economy Signals Slowdown
Last week's government report that the economy slowed down from July through September helped push rates down on 30-year, fixed-rate mortgages this week to their lowest level in a month, according to industry observers.

Freddie Mac reports that 30-year, fixed loans averaged interest of 6.31 percent this week, compared with 6.40 percent last week and 6.30 percent four weeks ago.

The lower borrowing costs could lead more home owners with adjustable-rate mortgages, which are scheduled to re-set upwards over the next year, to refinance, says Frank Nothaft, chief economist at the mortgage finance giant.

"We are also seeing a higher number of home owners who are taking cash out of their homes for home improvement or other needs rather than opting for a prime rate home equity loan now that the prime rate is over 8 percent," he adds.

Source: Baltimore Sun (11/03/06)