Some people say a storm is developing in the housing market. While our local area has been something of a safe harbor in many ways, the national media has regular features on the overall housing market which is not positive, to say the least. While too many commentators have a Chicken Little approach, here's an article that incorporates other data which indicates that for some, the sky may be indeed falling. While many of my fellow Realtors are busy putting on a happy face, I will continue to bring you all of the information that I think may be important to you in determining when to buy and when to sell.
The Coming Collapse in Housing
John Mauldin
What Will Collapse Housing Prices?
The Grand Disconnect
89 Booming Cities
Where's The Unemployment From Housing?
Two Price-Break Triggers
The Fed to the Rescue?
Monday, November 27, 2006
Tuesday, November 21, 2006
Price Gains in Luxury Home Market
Cautious buyers slow sales, offers
Monday, November 20, 2006
Inman News
Luxury home values posted slight gains in Los Angeles, San Diego and San Francisco in the third quarter of 2006, as housing markets overall continued to see a slip in sales.
Values on homes worth more than $1 million were up 0.6 percent in Los Angeles from the previous quarter and up 5.4 percent from a year ago, according to an index released by First Republic Bank, a provider of wealth management and private banking services. The average luxury home in Los Angeles is now a record $2.37 million.
San Diego values increased 1.9 percent from the second quarter, and gained 5.4 percent from a year ago. The average luxury home in San Diego is now a record $2.18 million.
San Francisco Bay Area values increased 1.1 percent from the second quarter and gained 4 percent from a year ago. The average luxury home in San Francisco is now a record $2.96 million.
"Luxury home values posted very modest increases in the third quarter in Los Angeles, San Diego and San Francisco," said Katherine August-deWilde, chief operating officer of First Republic Bank. "This trend is due to growing inventory, longer sales time, and greater caution among buyers because of the uncertainty in the market."
In Beverly Hills, buyers are more cautious than they have been in several years. "There is some hesitation in all price ranges," said Steve Frankel of Coldwell Banker Previews Estate Division in Beverly Hills. "I am still getting lots of showings on properties $10 million and above, but buyers are being sensitive. They're saying, 'I am willing to pay, but I'm not willing to overpay.' Two years ago, they would overpay and wait for the market to catch up."
In Montecito, near Santa Barbara, the number of sales is falling. "There are still legitimate buyers and sellers out there, but it is a difficult market," said Jeff Farrell of Coldwell Banker Previews International in Montecito. "Prices and inventory in Montecito have stayed about the same. But buyers are more reluctant, and sellers don't want to bite the bullet to put prices where they should be. There are definitely transactions happening, but they are fewer."
In the beach communities of Orange County, the number of sales is also down significantly, although prices are still stable. "In the coastal market at $3 million and above, homes are still selling fairly well," said Rob Montgomery of HOM Real Estate in Newport Beach. "Generally speaking, sales volume has been down 30 percent to 35 percent, but pricing has gone up as much 8 percent or 9 percent."
In the luxury community of Rancho Santa Fe, sellers are adjusting their expectations. "It's definitely a buyers' market," said Madeleine Gere of Gere Group Properties in Rancho Santa Fe. "The buyers are there, but they're being very cautious. They're waiting to see how prices will go. When a home is priced right, it's a multiple offer situation. Demand is keeping the market alive here. The whole world wants to be here."
However, in the coastal communities of La Jolla, Del Mar and northern San Diego County, the market is somewhat strong. "From $2 million to $4 million, the market is hot in Del Mar and La Jolla," said Janet Lawless Christ of Coldwell Banker Previews in Rancho Santa Fe. "Above $8 million, the market is also hot. Between those price ranges, there is more competition because new inventory is coming onto the market."
In San Francisco, prices and sales appear to be falling. "I see price reductions, and homes selling below the asking price," said Naomi Glass of Coldwell Banker in San Francisco. "Few things are moving. People are hesitant because they see an uncertain market."
On the San Francisco Peninsula, the market is also trending downward. "In Los Altos Hills, it is a buyers' market," said Ethel Green of Intero Real Estate in Los Altos. "People are very discerning and slow to make decisions. The home has to be in pristine condition to sell. People who are not getting the prices they want are taking their houses off the market. It's actually a great time to buy."
In Marin County, the lower tier of the luxury market is doing well. "The market from $2 million to $4 million feels strong," said Tina McArthur of Pacific Union in Larkspur. "We just had eight offers on a home that went over the asking price. If a house is done nicely, is on flat land and is the quintessential family home, no one is batting an eyelash over these prices."
First Republic's Prestige Home Index is produced each quarter with Fiserv CSW Inc., a provider of automated property valuation services and home-price metrics to U.S. financial institutions.
Monday, November 20, 2006
Inman News
Luxury home values posted slight gains in Los Angeles, San Diego and San Francisco in the third quarter of 2006, as housing markets overall continued to see a slip in sales.
Values on homes worth more than $1 million were up 0.6 percent in Los Angeles from the previous quarter and up 5.4 percent from a year ago, according to an index released by First Republic Bank, a provider of wealth management and private banking services. The average luxury home in Los Angeles is now a record $2.37 million.
San Diego values increased 1.9 percent from the second quarter, and gained 5.4 percent from a year ago. The average luxury home in San Diego is now a record $2.18 million.
San Francisco Bay Area values increased 1.1 percent from the second quarter and gained 4 percent from a year ago. The average luxury home in San Francisco is now a record $2.96 million.
"Luxury home values posted very modest increases in the third quarter in Los Angeles, San Diego and San Francisco," said Katherine August-deWilde, chief operating officer of First Republic Bank. "This trend is due to growing inventory, longer sales time, and greater caution among buyers because of the uncertainty in the market."
In Beverly Hills, buyers are more cautious than they have been in several years. "There is some hesitation in all price ranges," said Steve Frankel of Coldwell Banker Previews Estate Division in Beverly Hills. "I am still getting lots of showings on properties $10 million and above, but buyers are being sensitive. They're saying, 'I am willing to pay, but I'm not willing to overpay.' Two years ago, they would overpay and wait for the market to catch up."
In Montecito, near Santa Barbara, the number of sales is falling. "There are still legitimate buyers and sellers out there, but it is a difficult market," said Jeff Farrell of Coldwell Banker Previews International in Montecito. "Prices and inventory in Montecito have stayed about the same. But buyers are more reluctant, and sellers don't want to bite the bullet to put prices where they should be. There are definitely transactions happening, but they are fewer."
In the beach communities of Orange County, the number of sales is also down significantly, although prices are still stable. "In the coastal market at $3 million and above, homes are still selling fairly well," said Rob Montgomery of HOM Real Estate in Newport Beach. "Generally speaking, sales volume has been down 30 percent to 35 percent, but pricing has gone up as much 8 percent or 9 percent."
In the luxury community of Rancho Santa Fe, sellers are adjusting their expectations. "It's definitely a buyers' market," said Madeleine Gere of Gere Group Properties in Rancho Santa Fe. "The buyers are there, but they're being very cautious. They're waiting to see how prices will go. When a home is priced right, it's a multiple offer situation. Demand is keeping the market alive here. The whole world wants to be here."
However, in the coastal communities of La Jolla, Del Mar and northern San Diego County, the market is somewhat strong. "From $2 million to $4 million, the market is hot in Del Mar and La Jolla," said Janet Lawless Christ of Coldwell Banker Previews in Rancho Santa Fe. "Above $8 million, the market is also hot. Between those price ranges, there is more competition because new inventory is coming onto the market."
In San Francisco, prices and sales appear to be falling. "I see price reductions, and homes selling below the asking price," said Naomi Glass of Coldwell Banker in San Francisco. "Few things are moving. People are hesitant because they see an uncertain market."
On the San Francisco Peninsula, the market is also trending downward. "In Los Altos Hills, it is a buyers' market," said Ethel Green of Intero Real Estate in Los Altos. "People are very discerning and slow to make decisions. The home has to be in pristine condition to sell. People who are not getting the prices they want are taking their houses off the market. It's actually a great time to buy."
In Marin County, the lower tier of the luxury market is doing well. "The market from $2 million to $4 million feels strong," said Tina McArthur of Pacific Union in Larkspur. "We just had eight offers on a home that went over the asking price. If a house is done nicely, is on flat land and is the quintessential family home, no one is batting an eyelash over these prices."
First Republic's Prestige Home Index is produced each quarter with Fiserv CSW Inc., a provider of automated property valuation services and home-price metrics to U.S. financial institutions.
Monday, November 20, 2006
Holidays are best time to be a buyer
Holiday season is the greatest gift for home shopping
Friday, November 17, 2006
By Robert J. Bruss Inman News
During the slow home sales holiday season between Thanksgiving and New Year's Day, even extending through Super Bowl Sunday in many communities, few people think of buying a house or condominium. However, if you want to purchase a home and can drag yourself away from holiday festivities, this is the absolute best time of the entire year to be a home buyer.
Why is that, you ask? The answer has two parts: (a) only serious motivated sellers have their houses and condominiums listed for sale during this slowest season of the year for home sales, and (b) competition from other prospective home buyers is at its lowest now so your purchase offer will be extremely welcome and seriously considered by a motivated home seller.
There is an additional reason 2006 year-end is an especially good time to be a home buyer. That reason is it is a "buyer's market" in most cities, meaning there are more homes listed for sale today than there are qualified buyers in the market so sellers (and their listing agents) are extremely anxious.
It's a great time to be a home buyer. But not such a good time to be a home seller.
BEFORE SHOPPING FOR A HOME, SHOP FOR A MORTGAGE. However, before rushing out to buy a house or condo, smart home buyers first get approved in writing for a home mortgage. This is a slow time of year for mortgage lenders so they welcome your loan application.
Although mortgage brokers can arrange mortgage pre-approvals, the letter or certificate must come from an actual lender, such as a bank or mortgage banker. Most home mortgage pre-approvals are valid for 60 to 90 days.
Don't even consider a mortgage "pre-qualification," which means only, "We looked at your loan application and you appear to qualify but we haven't actually verified your credit and income." In other words, a mortgage pre-qualification is worthless.
However, home buyers should understand a lender's mortgage pre-approval is subject to (a) the lender's appraisal of the home you decide to buy, and (b) reverification of your credit and income (don't apply for additional credit or go out and buy a new car before you complete your home purchase).
WORK WITH AN EXPERIENCED BUYER'S AGENT. After obtaining a written mortgage pre-approval from a lender, the next step to buying a home during this best time of the year to purchase is to work with an experienced buyer's agent who understands the market in the vicinity where you want to buy.
Ask friends, relatives and business associates for recommendations of buyer's agents. Although any licensed agent can be your buyer's agent, many agents prefer to list homes for sale rather than working with home buyers who are often "time wasters."
A buyer's agent costs nothing extra. The reason is the listing agent of the house or condo you purchase will split the sales commission with your buyer's agent. Only in the rare event you buy a "for sale by owner" (FSBO) home and the seller refuses to compensate your buyer's agent would you owe any sales commission.
EXPECT YOUR BUYER'S AGENT TO PREPARE A "CMA" BEFORE MAKING YOUR PURCHASE OFFER.
When you find "the house" or "the condo" you want to buy, before making a purchase offer ask your buyer's agent to prepare a written CMA (comparative market analysis). This CMA is the same form the listing agent prepared for the seller when the house or condo was listed for sale.
However, your CMA will be up to date, whereas the seller's CMA might be several months old. The CMA shows (a) recent sales prices of comparable nearby residences within the last few months (never older than six months); (b) current asking prices of similar neighborhood homes now on the market for sale; and (c) asking prices of recently expired comparable listings (usually overpriced).
As a savvy home buyer, you probably will have inspected many of the homes on your CMA. With the help of your buyer's agent, you can use the CMA information to arrive at a fair purchase-price offer.
Many buyer's agents recommend making a purchase offer based on a per-square-foot basis. For example, if nearby homes of comparable quality construction recently sold for $150 per square foot, you might want to make your purchase offer based on $150 per square foot.
Be sure to attach a reasonable good faith deposit check to your purchase offer. If you are making an especially low offer far under the seller's asking price, a substantial deposit accompanying your offer will often convince the seller you are a serious buyer.
You can be sure your buyer's agent will use the CMA prepared for your use to show to the home seller and the listing agent to justify your purchase offer as being reasonable.
However, if the seller doesn't accept your purchase offer, a luxury of buying during this slow season is there are few other home buyers in the market. The result is you usually need not be in a rush to respond to a counteroffer or make a new purchase offer.
Waiting a few days to respond, presuming you still want to buy the residence, will often make the seller think, "That was a pretty good offer. Maybe I should have accepted it."
KEEP YOUR PURCHASE OFFER SIMPLE.
As experienced buyer's agents will tell you, it's best to keep your purchase offer as simple as possible. "A confused mind usually says no" is a very true motto. For this reason, it is best to include only a few contingency clauses in your purchase offer. Typical contingencies are:
1. LENDER'S APPRAISAL CONTINGENCY. Presuming you need a mortgage to finance your purchase, be sure to include a mortgage lender's appraisal contingency clause in the purchase offer. If the home doesn't appraise for at least the amount of your purchase offer that was accepted by the seller, then you don't have to complete the purchase and can get your good faith deposit fully refunded.
2. PROFESSIONAL HOME INSPECTION CONTINGENCY. Smart buyers make their home-purchase offers contingent on their approval of a professional home inspector's report to be obtained by the buyer after the seller accepts the purchase offer.
The cost is usually around $300. Buyers should always accompany their inspector for the two- to three-hour inspection because it is a good way to become familiar with the home and to discuss any unexpected material defects that are discovered.
A good source of experienced professional home inspectors is to hire a member of the American Society of Home Inspectors (ASHI). To find local ASHI inspectors, go to http://www.ashi.org/ or phone 1-800-743-2744.
If the professional inspection report reveals serious undisclosed home defects, as the buyer you can (a) cancel the purchase and obtain refund of your good faith deposit, (b) reopen negotiations with the seller to obtain a repair credit, or (c) if the seller refuses to renegotiate, go ahead with the purchase anyway (presuming you badly want the home).
3. SALE OF YOUR CURRENT HOME CONTINGENCY. During the last few years of a home "seller's market" in most cities, this contingency fell out of favor with home sellers and real estate agents. But during a buyer's market where any purchase offer is very welcome, many home sellers will accept a purchase offer that is contingent on the buyer's sale of their current home.
However, to be fair to the seller, most sellers will insist on keeping their homes listed on the market for sale while the buyer tries to sell his/her current home. In addition, most realty agents suggest a 48-hour or 72-hour contingency-release clause. That means if another buyer produces an offer acceptable to the seller, the first buyer then has 48 or 72 hours to remove his/her contingency clause for sale of their current residence.
SUMMARY: The season between Thanksgiving and New Year's Day, even extending to Super Bowl Sunday in many communities, is the slowest time of the year for home sales so it is an especially good time to be a home buyer.
Friday, November 17, 2006
By Robert J. Bruss Inman News
During the slow home sales holiday season between Thanksgiving and New Year's Day, even extending through Super Bowl Sunday in many communities, few people think of buying a house or condominium. However, if you want to purchase a home and can drag yourself away from holiday festivities, this is the absolute best time of the entire year to be a home buyer.
Why is that, you ask? The answer has two parts: (a) only serious motivated sellers have their houses and condominiums listed for sale during this slowest season of the year for home sales, and (b) competition from other prospective home buyers is at its lowest now so your purchase offer will be extremely welcome and seriously considered by a motivated home seller.
There is an additional reason 2006 year-end is an especially good time to be a home buyer. That reason is it is a "buyer's market" in most cities, meaning there are more homes listed for sale today than there are qualified buyers in the market so sellers (and their listing agents) are extremely anxious.
It's a great time to be a home buyer. But not such a good time to be a home seller.
BEFORE SHOPPING FOR A HOME, SHOP FOR A MORTGAGE. However, before rushing out to buy a house or condo, smart home buyers first get approved in writing for a home mortgage. This is a slow time of year for mortgage lenders so they welcome your loan application.
Although mortgage brokers can arrange mortgage pre-approvals, the letter or certificate must come from an actual lender, such as a bank or mortgage banker. Most home mortgage pre-approvals are valid for 60 to 90 days.
Don't even consider a mortgage "pre-qualification," which means only, "We looked at your loan application and you appear to qualify but we haven't actually verified your credit and income." In other words, a mortgage pre-qualification is worthless.
However, home buyers should understand a lender's mortgage pre-approval is subject to (a) the lender's appraisal of the home you decide to buy, and (b) reverification of your credit and income (don't apply for additional credit or go out and buy a new car before you complete your home purchase).
WORK WITH AN EXPERIENCED BUYER'S AGENT. After obtaining a written mortgage pre-approval from a lender, the next step to buying a home during this best time of the year to purchase is to work with an experienced buyer's agent who understands the market in the vicinity where you want to buy.
Ask friends, relatives and business associates for recommendations of buyer's agents. Although any licensed agent can be your buyer's agent, many agents prefer to list homes for sale rather than working with home buyers who are often "time wasters."
A buyer's agent costs nothing extra. The reason is the listing agent of the house or condo you purchase will split the sales commission with your buyer's agent. Only in the rare event you buy a "for sale by owner" (FSBO) home and the seller refuses to compensate your buyer's agent would you owe any sales commission.
EXPECT YOUR BUYER'S AGENT TO PREPARE A "CMA" BEFORE MAKING YOUR PURCHASE OFFER.
When you find "the house" or "the condo" you want to buy, before making a purchase offer ask your buyer's agent to prepare a written CMA (comparative market analysis). This CMA is the same form the listing agent prepared for the seller when the house or condo was listed for sale.
However, your CMA will be up to date, whereas the seller's CMA might be several months old. The CMA shows (a) recent sales prices of comparable nearby residences within the last few months (never older than six months); (b) current asking prices of similar neighborhood homes now on the market for sale; and (c) asking prices of recently expired comparable listings (usually overpriced).
As a savvy home buyer, you probably will have inspected many of the homes on your CMA. With the help of your buyer's agent, you can use the CMA information to arrive at a fair purchase-price offer.
Many buyer's agents recommend making a purchase offer based on a per-square-foot basis. For example, if nearby homes of comparable quality construction recently sold for $150 per square foot, you might want to make your purchase offer based on $150 per square foot.
Be sure to attach a reasonable good faith deposit check to your purchase offer. If you are making an especially low offer far under the seller's asking price, a substantial deposit accompanying your offer will often convince the seller you are a serious buyer.
You can be sure your buyer's agent will use the CMA prepared for your use to show to the home seller and the listing agent to justify your purchase offer as being reasonable.
However, if the seller doesn't accept your purchase offer, a luxury of buying during this slow season is there are few other home buyers in the market. The result is you usually need not be in a rush to respond to a counteroffer or make a new purchase offer.
Waiting a few days to respond, presuming you still want to buy the residence, will often make the seller think, "That was a pretty good offer. Maybe I should have accepted it."
KEEP YOUR PURCHASE OFFER SIMPLE.
As experienced buyer's agents will tell you, it's best to keep your purchase offer as simple as possible. "A confused mind usually says no" is a very true motto. For this reason, it is best to include only a few contingency clauses in your purchase offer. Typical contingencies are:
1. LENDER'S APPRAISAL CONTINGENCY. Presuming you need a mortgage to finance your purchase, be sure to include a mortgage lender's appraisal contingency clause in the purchase offer. If the home doesn't appraise for at least the amount of your purchase offer that was accepted by the seller, then you don't have to complete the purchase and can get your good faith deposit fully refunded.
2. PROFESSIONAL HOME INSPECTION CONTINGENCY. Smart buyers make their home-purchase offers contingent on their approval of a professional home inspector's report to be obtained by the buyer after the seller accepts the purchase offer.
The cost is usually around $300. Buyers should always accompany their inspector for the two- to three-hour inspection because it is a good way to become familiar with the home and to discuss any unexpected material defects that are discovered.
A good source of experienced professional home inspectors is to hire a member of the American Society of Home Inspectors (ASHI). To find local ASHI inspectors, go to http://www.ashi.org/ or phone 1-800-743-2744.
If the professional inspection report reveals serious undisclosed home defects, as the buyer you can (a) cancel the purchase and obtain refund of your good faith deposit, (b) reopen negotiations with the seller to obtain a repair credit, or (c) if the seller refuses to renegotiate, go ahead with the purchase anyway (presuming you badly want the home).
3. SALE OF YOUR CURRENT HOME CONTINGENCY. During the last few years of a home "seller's market" in most cities, this contingency fell out of favor with home sellers and real estate agents. But during a buyer's market where any purchase offer is very welcome, many home sellers will accept a purchase offer that is contingent on the buyer's sale of their current home.
However, to be fair to the seller, most sellers will insist on keeping their homes listed on the market for sale while the buyer tries to sell his/her current home. In addition, most realty agents suggest a 48-hour or 72-hour contingency-release clause. That means if another buyer produces an offer acceptable to the seller, the first buyer then has 48 or 72 hours to remove his/her contingency clause for sale of their current residence.
SUMMARY: The season between Thanksgiving and New Year's Day, even extending to Super Bowl Sunday in many communities, is the slowest time of the year for home sales so it is an especially good time to be a home buyer.
Thursday, November 16, 2006
Santa Clarita Real Estate Market in Transition
As reported for months, the local real estate market is in a transional state, with buyers gaining the upper hand in negotiations with sellers for the sale of properties. As I have been telling my clients for a while, if you are serious about buying a home there are some real deals to be made.
Today's local paper had an article about the how the median price had slipped a little more than 3% for properties on a year-to-year basis, with numbers of sales slipping 30% from a year ago. This, while the inventory of homes on the market has fallen from the previous month's totals, but risen significantly from a year ago. Readers of this Blog get this kind of news months earlier than the local papers, it appears.
What does the local housing market have to do with you? The answer totally depends on your individual situation. For some people, making a move in this environment makes absolutely no sense. While newcomers to this Blog might be startled to read the previous sentence from a Realtor, I am not your average Realtor. You probably expected some variant of the following: 'For some people, making a move by either buying or selling a home right now is the smart move'. Both statements are true, but again, totally dependent on your individual situation.
If you want a straightforward analysis of what you should do, call me at 661-312-9461 and we will make an appointment to get together and find out.
Today's local paper had an article about the how the median price had slipped a little more than 3% for properties on a year-to-year basis, with numbers of sales slipping 30% from a year ago. This, while the inventory of homes on the market has fallen from the previous month's totals, but risen significantly from a year ago. Readers of this Blog get this kind of news months earlier than the local papers, it appears.
What does the local housing market have to do with you? The answer totally depends on your individual situation. For some people, making a move in this environment makes absolutely no sense. While newcomers to this Blog might be startled to read the previous sentence from a Realtor, I am not your average Realtor. You probably expected some variant of the following: 'For some people, making a move by either buying or selling a home right now is the smart move'. Both statements are true, but again, totally dependent on your individual situation.
If you want a straightforward analysis of what you should do, call me at 661-312-9461 and we will make an appointment to get together and find out.
The New MLS: Removing Local Boundaries
Expanding the Real Estate Database Is Key to the Future
As reported today in an article by Inman News, one of the critical developments in the real estate industry is the merging of local Multiple Listing Services into regional and eventually, a global, MLS. Our local Realtor's Association has recently announced that the local CRISNET MLS, which directly covers the Santa Clarita and San Fernando Valleys, will merge with SoCalMLS which covers much of southern Los Angeles County and all of Orange County. The combined MLS will have 55,000 members and will become the largest MLS in California and the second largest in the nation.
The two MLS services already belong to the Southern California MLS Alliance, a consortium of multiple listing services serving over 100,000 real estate professionals via a cooperative exchange of information among Southern California MLS databases.
This consolidation of and cooperation between databases gives members the opportunity to provide better service to their clients, the buyers and sellers of real estate. In a society awash with information, reliable property and sales information is essential to a rational and trusted market.
As reported today in an article by Inman News, one of the critical developments in the real estate industry is the merging of local Multiple Listing Services into regional and eventually, a global, MLS. Our local Realtor's Association has recently announced that the local CRISNET MLS, which directly covers the Santa Clarita and San Fernando Valleys, will merge with SoCalMLS which covers much of southern Los Angeles County and all of Orange County. The combined MLS will have 55,000 members and will become the largest MLS in California and the second largest in the nation.
The two MLS services already belong to the Southern California MLS Alliance, a consortium of multiple listing services serving over 100,000 real estate professionals via a cooperative exchange of information among Southern California MLS databases.
This consolidation of and cooperation between databases gives members the opportunity to provide better service to their clients, the buyers and sellers of real estate. In a society awash with information, reliable property and sales information is essential to a rational and trusted market.
Thursday, November 09, 2006
Protect Your Privacy!
ALERT: YOUR NAME IS BEING SOLD — TAKE ACTION NOW!
Here's breaking news you need to know...and you need to let all your family and friends know right away as well.
Having credit checked is an important and necessary step in the home buying process, as well as something that is done on a regular basis for any number of reasons — increasing a credit line on your Visa, applying for insurance, or buying a car. But very few people realize that each time their credit is checked, the "inquiry data" that the credit bureaus (Equifax, TransUnion, Innovis or Experian) has on file has now become a commodity. This information is being sold by the credit bureaus to other lenders...and also to companies that sell and resell the same names and personal information.
That's right — the credit bureaus have found a way to increase their revenues at your expense...and without your permission. These "inquiry leads" include name, address, phone numbers (including unlisted), credit score, current debt and debt history, property information, age, gender and estimated income. They are selling your personal, confidential information to competing creditors...and making millions. Your privacy is being sold, not just once, but over and over again.
And lenders that purchase these leads at a premium will then do everything they can to recoup their investment and turn a hefty profit. Super sneaky bait and switch tactics are being used to lure clients away from their reputable lender. Clients have even been called by disreputable lenders and told that the lender they had been speaking to previously "passed on" the information to them, because they knew that they'd be able to offer much better interest rates and terms. Ouch!
The good news is that you can make it stop, right away. And pass this information on to everyone you know — your friends, family members, neighbors and coworkers.
The consumer credit reporting industry has provided a way to "opt out" and remove your name from these lists. You can contact them by phone at 1-888-567-8688 or online at www.optoutprescreen.com. You must opt out at least 48 hours prior to having your credit checked to make sure it is processed in time. You can choose a five year or lifetime option, and the lifetime option does require a signed form. If a credit report needs to be run prior to the 48 hour waiting period — at least you are aware and informed, and can be on the lookout for suspicious phone calls or mailers from someone who has purchased your data.
BONUS: Opting out will also protect you from "pre-approved credit offers" arriving via mail...one of the leading causes of identity theft in the US.
You certainly have the right to shop for the best professional to meet your lending needs — but this should be done when and how YOU choose, not being done without your consent or permission. Looking around should be on your terms, not being done as a sneak attack, because they think you won't know better. And unfortunately, these unsolicited marketing tactics are a nuisance and intrusive, but quite legal.
So take your privacy back. Take five minutes right now — opt out, and pass it on. Refuse to be a part of this system.
ALERT: YOUR NAME IS BEING SOLD — TAKE ACTION NOW!
Here's breaking news you need to know...and you need to let all your family and friends know right away as well.
Having credit checked is an important and necessary step in the home buying process, as well as something that is done on a regular basis for any number of reasons — increasing a credit line on your Visa, applying for insurance, or buying a car. But very few people realize that each time their credit is checked, the "inquiry data" that the credit bureaus (Equifax, TransUnion, Innovis or Experian) has on file has now become a commodity. This information is being sold by the credit bureaus to other lenders...and also to companies that sell and resell the same names and personal information.
That's right — the credit bureaus have found a way to increase their revenues at your expense...and without your permission. These "inquiry leads" include name, address, phone numbers (including unlisted), credit score, current debt and debt history, property information, age, gender and estimated income. They are selling your personal, confidential information to competing creditors...and making millions. Your privacy is being sold, not just once, but over and over again.
And lenders that purchase these leads at a premium will then do everything they can to recoup their investment and turn a hefty profit. Super sneaky bait and switch tactics are being used to lure clients away from their reputable lender. Clients have even been called by disreputable lenders and told that the lender they had been speaking to previously "passed on" the information to them, because they knew that they'd be able to offer much better interest rates and terms. Ouch!
The good news is that you can make it stop, right away. And pass this information on to everyone you know — your friends, family members, neighbors and coworkers.
The consumer credit reporting industry has provided a way to "opt out" and remove your name from these lists. You can contact them by phone at 1-888-567-8688 or online at www.optoutprescreen.com. You must opt out at least 48 hours prior to having your credit checked to make sure it is processed in time. You can choose a five year or lifetime option, and the lifetime option does require a signed form. If a credit report needs to be run prior to the 48 hour waiting period — at least you are aware and informed, and can be on the lookout for suspicious phone calls or mailers from someone who has purchased your data.
BONUS: Opting out will also protect you from "pre-approved credit offers" arriving via mail...one of the leading causes of identity theft in the US.
You certainly have the right to shop for the best professional to meet your lending needs — but this should be done when and how YOU choose, not being done without your consent or permission. Looking around should be on your terms, not being done as a sneak attack, because they think you won't know better. And unfortunately, these unsolicited marketing tactics are a nuisance and intrusive, but quite legal.
So take your privacy back. Take five minutes right now — opt out, and pass it on. Refuse to be a part of this system.
The Election Is Over, Time to Buy a Home!
The midterm elections are over, and as expected in the last month housing activity has dipped. It happens everytime there is an election, and this one is no different.
What is the likely impact on the housing market as a result of the latest silly season ending? Well, at least we have a better idea about the direction of the country. OK, a little better idea. While the commentary among political circles is diverse over the impact, from we are on the brink of disaster (coming from the Pubs), to we have stepped back from the brink of disaster (coming from the Dems), we now can all refocus on what is happening in our own world. That is an intensely personal decision based on individual and family circumstances.
Basically, it is a good time to make a move. While most readers figure this as the usual Realtor line, bear with me for a moment.
First, the talk over the past three or more years of a housing bubble bursting just has not happened. Sure, sales have slowed (down about 30% y2y) and prices are a little soft in our local area, but not precipitously so. In fact, the real data indicates a leveling of prices y2y, or maybe a slight (under 5%) drop in prices in some areas. This is hardly a burst bubble, but is in reality a lot like a little air coming out of the market.
Second, I want to talk with buyers for a moment. Interest rates have come down a bit from some highs earlier this year, but with loans available for fixed rates under 6.5% and for lots of other kinds of loans with much lower interest rates that may be better suited to your budget and long-term plans, this is a good buying environment if you want to buy a home with more than a three year time frame. Plus, there is a lot of variety of homes and prices in the marketplace. Finally, there are some steals of deals to be made IF you have a great agent (that's me!) working to find and negotiate a great deal for you!
Sellers. The flipper seller has had his or her day. If you bought your property more than two years ago, and thought you would sell it around now for a huge profit, well, you will likely have a modest profit, but not a huge one. Bought last year? Depending on what you picked, who you used as a Realtor, and what your purchase price was, you are probably better off keeping the home, as long as you can make the payments. If you can't pay the mortgage, get out now. Call me today. No joke. Do it. Which brings me to a very important point... if you don't need to sell, don't put your home on the market. If it's on now, take it off the market. While the numbers of homes on the market has been dropping lately, the amount of inventory is still too high which gives people the feeling that the market is dead. It isn't the case, but with too many signs in yards, that is the impression. So, if you don't need to sell, take your home off the market.
Finally, if you do need to sell, price your home right. Over priced homes are a drag on the market, sellers get anxious and frustrated, and Realtors who take overpriced listings are not doing anyone any favors. Price your home to sell, keep it clean, choose a great Realtor (me!), and let's get your home sold!
The midterm elections are over, and as expected in the last month housing activity has dipped. It happens everytime there is an election, and this one is no different.
What is the likely impact on the housing market as a result of the latest silly season ending? Well, at least we have a better idea about the direction of the country. OK, a little better idea. While the commentary among political circles is diverse over the impact, from we are on the brink of disaster (coming from the Pubs), to we have stepped back from the brink of disaster (coming from the Dems), we now can all refocus on what is happening in our own world. That is an intensely personal decision based on individual and family circumstances.
Basically, it is a good time to make a move. While most readers figure this as the usual Realtor line, bear with me for a moment.
First, the talk over the past three or more years of a housing bubble bursting just has not happened. Sure, sales have slowed (down about 30% y2y) and prices are a little soft in our local area, but not precipitously so. In fact, the real data indicates a leveling of prices y2y, or maybe a slight (under 5%) drop in prices in some areas. This is hardly a burst bubble, but is in reality a lot like a little air coming out of the market.
Second, I want to talk with buyers for a moment. Interest rates have come down a bit from some highs earlier this year, but with loans available for fixed rates under 6.5% and for lots of other kinds of loans with much lower interest rates that may be better suited to your budget and long-term plans, this is a good buying environment if you want to buy a home with more than a three year time frame. Plus, there is a lot of variety of homes and prices in the marketplace. Finally, there are some steals of deals to be made IF you have a great agent (that's me!) working to find and negotiate a great deal for you!
Sellers. The flipper seller has had his or her day. If you bought your property more than two years ago, and thought you would sell it around now for a huge profit, well, you will likely have a modest profit, but not a huge one. Bought last year? Depending on what you picked, who you used as a Realtor, and what your purchase price was, you are probably better off keeping the home, as long as you can make the payments. If you can't pay the mortgage, get out now. Call me today. No joke. Do it. Which brings me to a very important point... if you don't need to sell, don't put your home on the market. If it's on now, take it off the market. While the numbers of homes on the market has been dropping lately, the amount of inventory is still too high which gives people the feeling that the market is dead. It isn't the case, but with too many signs in yards, that is the impression. So, if you don't need to sell, take your home off the market.
Finally, if you do need to sell, price your home right. Over priced homes are a drag on the market, sellers get anxious and frustrated, and Realtors who take overpriced listings are not doing anyone any favors. Price your home to sell, keep it clean, choose a great Realtor (me!), and let's get your home sold!
Friday, November 03, 2006
Buydowns Expected to Regain Popularity
Buydowns, in which sellers put money toward a buyer's mortgage payments during the first years of the loan, are expected to regain popularity as the housing market slows.
This arrangement often allows sellers to pay an amount less than what they would have shaved off their asking price. Buyers, in turn, benefit from lower monthly payments in the first few years and a lower interest rate, which rises by a percentage point each year until the buyers take over the entire payment.
If the home is to be the buyer's primary residence and the buyer has a credit score of at least 660, Fannie Mae permits lenders to qualify the loan applicant at the first-year interest rate. Buyers of second homes or investment properties must be qualified at the full rate.
Source: Hartford Courant, Kenneth R. Gosselin (11/02/06)
Buydowns, in which sellers put money toward a buyer's mortgage payments during the first years of the loan, are expected to regain popularity as the housing market slows.
This arrangement often allows sellers to pay an amount less than what they would have shaved off their asking price. Buyers, in turn, benefit from lower monthly payments in the first few years and a lower interest rate, which rises by a percentage point each year until the buyers take over the entire payment.
If the home is to be the buyer's primary residence and the buyer has a credit score of at least 660, Fannie Mae permits lenders to qualify the loan applicant at the first-year interest rate. Buyers of second homes or investment properties must be qualified at the full rate.
Source: Hartford Courant, Kenneth R. Gosselin (11/02/06)
IRS Examines Popular Real Estate Write-Offs
The staff of the nonpartisan Joint Committee on Taxation is taking a close look at two kinds of tax write-offs that home owners regularly use.
Its goal is to insure that the IRS collects more money without having to raise taxes.
The committee proposes requiring local governments to provide copies of home owner tax statements to the IRS that distinguish between regular and special assessments. That way, the IRS could slap the hands of taxpayers who try to deduct those nondeductible special assessments.
The committee also would require lenders to distinguish whether a loan was a first mortgage or a refinance. Tax payers must amortize points they pay for a refinance over the term of the loan. Collecting taxes that are improperly deducted in the first year rather than amortized would net the IRS $70 billion in this year alone, the IRS estimates.
Similarly, the committee proposes that lenders report whenever a refinancing led to a new loan amount $100,000 larger than the previous balance. That will alert the IRS to interest write-offs in excess of those permissible under widely misunderstood rules.
For most tax payers, the legally deductible portion is the original mortgage debt they incurred to make their home purchase, plus all subsequent capital improvements, minus payments to reduce that principal over the course of the loan.
Source: Washington Post Writers Group, Kenneth R. Harney (10/28/2006)
The staff of the nonpartisan Joint Committee on Taxation is taking a close look at two kinds of tax write-offs that home owners regularly use.
Its goal is to insure that the IRS collects more money without having to raise taxes.
The committee proposes requiring local governments to provide copies of home owner tax statements to the IRS that distinguish between regular and special assessments. That way, the IRS could slap the hands of taxpayers who try to deduct those nondeductible special assessments.
The committee also would require lenders to distinguish whether a loan was a first mortgage or a refinance. Tax payers must amortize points they pay for a refinance over the term of the loan. Collecting taxes that are improperly deducted in the first year rather than amortized would net the IRS $70 billion in this year alone, the IRS estimates.
Similarly, the committee proposes that lenders report whenever a refinancing led to a new loan amount $100,000 larger than the previous balance. That will alert the IRS to interest write-offs in excess of those permissible under widely misunderstood rules.
For most tax payers, the legally deductible portion is the original mortgage debt they incurred to make their home purchase, plus all subsequent capital improvements, minus payments to reduce that principal over the course of the loan.
Source: Washington Post Writers Group, Kenneth R. Harney (10/28/2006)
Realtors' ad campaign says time is right to buy, sell
Trade group puts full-page ads in 6 major newspapers
Friday, November 03, 2006
Inman News
Thomas Stevens, NAR president
The National Association of Realtors trade group is paying for advertisements in six major U.S. newspapers to promote home purchases and sales, the association announced today.
The ad campaign, launched by the trade group's leadership, carries the message, "It's a great time to buy or sell a home," and notes that interest rates have fallen for seven months in a row and are near 40-year lows, while for-sale home inventories are "higher than they have been in decades and prices have stabilized," the association announced today.
Meanwhile, home sales have slowed nationwide and the winter months are traditionally a slow period for home sales. The association reported last month that the sales rate for existing-homes fell for the sixth straight month in September, and sales were down 14.2 percent that month compared to September 2005.
There was a for-sale home inventory of 7.3 months in September based on the sales pace at that time -- a supply over six months typically indicates a market that favors buyers. And the U.S. median existing-home price dropped 2.2 percent to $220,000 in September compared to September 2005.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.4 percent in September, compared with 5.77 percent in September 2005 and 6.52 percent in August 2006.
In a separate report, the Realtor group announced this week that its index tracking pending-home sales fell to the lowest level of the year in September and was down 13.6 percent in September compared to September 2005. The association's Pending Home Sales Index is considered a leading indicator for closed existing-home sales in the following two months.
The Realtor group's advertisement appears today in the Wall Street Journal and USA Today, and will appear Sunday in the New York Times, Washington Post, Los Angeles Times and Chicago Tribune, the association announced. The ad will appear in the same newspapers again during the Nov. 12 weekend.
"Prices overall have stabilized"; "large inventory won't last"; "positive outlook"; "real estate is a great investment"; and "don't delay" are among the messages in the ad.
"Former Federal Reserve Chair Alan Greenspan recently said that housing prospects are looking up. 'Most of the negatives in housing are probably behind us. The fourth quarter should be reasonably good, certainly better than the third quarter.' According to industry estimates, 2006 will be the third-best year on record for home sales," the ad states.
In its announcement about the ad campaign, the Realtor group stated, "The perfect conditions for buyers are likely to change as sales pick up, prices gain traction and conditions improve for sellers next year."
Thomas M. Stevens, NAR president and senior vice president of Realogy Corp.'s NRT Inc., said that two new television and radio ads directed at home buyers and sellers will begin airing in January. Those ads are a part of the association's $40 million public awareness campaign.
Stevens said in a statement that market conditions are a "perfect alignment of low rates and extraordinary inventory."
***
--------------------------------------------------------------------------------
Copyright 2006 Inman News
Trade group puts full-page ads in 6 major newspapers
Friday, November 03, 2006
Inman News
Thomas Stevens, NAR president
The National Association of Realtors trade group is paying for advertisements in six major U.S. newspapers to promote home purchases and sales, the association announced today.
The ad campaign, launched by the trade group's leadership, carries the message, "It's a great time to buy or sell a home," and notes that interest rates have fallen for seven months in a row and are near 40-year lows, while for-sale home inventories are "higher than they have been in decades and prices have stabilized," the association announced today.
Meanwhile, home sales have slowed nationwide and the winter months are traditionally a slow period for home sales. The association reported last month that the sales rate for existing-homes fell for the sixth straight month in September, and sales were down 14.2 percent that month compared to September 2005.
There was a for-sale home inventory of 7.3 months in September based on the sales pace at that time -- a supply over six months typically indicates a market that favors buyers. And the U.S. median existing-home price dropped 2.2 percent to $220,000 in September compared to September 2005.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.4 percent in September, compared with 5.77 percent in September 2005 and 6.52 percent in August 2006.
In a separate report, the Realtor group announced this week that its index tracking pending-home sales fell to the lowest level of the year in September and was down 13.6 percent in September compared to September 2005. The association's Pending Home Sales Index is considered a leading indicator for closed existing-home sales in the following two months.
The Realtor group's advertisement appears today in the Wall Street Journal and USA Today, and will appear Sunday in the New York Times, Washington Post, Los Angeles Times and Chicago Tribune, the association announced. The ad will appear in the same newspapers again during the Nov. 12 weekend.
"Prices overall have stabilized"; "large inventory won't last"; "positive outlook"; "real estate is a great investment"; and "don't delay" are among the messages in the ad.
"Former Federal Reserve Chair Alan Greenspan recently said that housing prospects are looking up. 'Most of the negatives in housing are probably behind us. The fourth quarter should be reasonably good, certainly better than the third quarter.' According to industry estimates, 2006 will be the third-best year on record for home sales," the ad states.
In its announcement about the ad campaign, the Realtor group stated, "The perfect conditions for buyers are likely to change as sales pick up, prices gain traction and conditions improve for sellers next year."
Thomas M. Stevens, NAR president and senior vice president of Realogy Corp.'s NRT Inc., said that two new television and radio ads directed at home buyers and sellers will begin airing in January. Those ads are a part of the association's $40 million public awareness campaign.
Stevens said in a statement that market conditions are a "perfect alignment of low rates and extraordinary inventory."
***
--------------------------------------------------------------------------------
Copyright 2006 Inman News
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