Despite the impressions you might get from the network news, the U.S. economy continues to churn out solid, even encouraging, numbers -- and that's important for anyone interested in real estate. Last week the federal government reported retail sales up by 1.2 percent in the past month, strong growth in new jobs, exports and household incomes. When the economy looks like it's expanding a bit faster than Wall Street expected it to, investors sometimes begin to worry about the "I" word-inflation -- and interest rates tick back up a little. But the fact is: rates this low are great for anyone looking to buy a house. They are nearly at two year lows; and barely half a point higher than their 40 year lows. So maybe it was no surprise that despite the slight rate increase, mortgage applications rose last week rather than fell. In the short of the matter, Low home prices combined with low mortgage rates means potentially excellent buying opportunities!
for more info you can check out Kenneth R. Harney
Thursday, December 20, 2007
Thursday, December 13, 2007
Appearances mean EVERYTHING
According to the results of the 2007 Remodeling Cost vs. Value Report, three of the four projects with the highest national percentage of costs recouped this year were exterior upgrades. The most profitable project on the national level was upscale siding replacement, recouping 88 percent of costs upon resale. Wood deck additions and wood window replacements were a close second returning more than 80 percent of costs, at 85 percent and 81 percent, respectively. But the the only interior project to return more than 80 percent of remodeling costs this year was a minor kitchen remodel, returning 83 percent of project costs at resale.
Homeowners who reside in the Pacific region could expect to see some of the highest percentages of remodeling expenses returned at resale, with 13 of the 29 projects returning 90 percent or higher of project costs.
For more information Check out http://www.costvsvalue.com/index.html
Homeowners who reside in the Pacific region could expect to see some of the highest percentages of remodeling expenses returned at resale, with 13 of the 29 projects returning 90 percent or higher of project costs.
For more information Check out http://www.costvsvalue.com/index.html
Saturday, December 1, 2007
Top 10 Best Performing Housing Markets
As anybody who has ever sold real estate knows, there are no national markets, only local markets. That adage holds true when you look at the condition of the real estate business nationwide.
Business may be tough in many places, but it’s not tough all over. In Salt Lake City, Charlotte, N.C., and San Jose, Calif., prices have climbed relentlessly. In the Northeast, the biggest gainers are the gritty cities of Buffalo, N.Y., Pittsburgh, Pa., and Philadelphia. In the West, business is brisk in Northern California and the Pacific Northwest.
Here are the top 10 best performing housing markets, according to Forbes magazine, their third quarter median home sale prices, and the percentage that prices have risen compared to third quarter 2006.
Salt Lake City - median home sales price: $246,700; Percent change: 14.1%
Charlotte, N.C. — $220,000, 11%
San Jose, Calif. — $852,500, 9.4%
San Francisco — $825,400, 8.6%
Raleigh, N.C. — $229,500, 7.5%
Austin — $188,200, 7.2%
Pittsburgh — $127,700, 6.1%
Seattle — $394,700, 6%
San Antonio — $154,700, 5.7%
Portland, Ore. — $299,700, 5.2%
source: Forbes, Matt Woolsey (11/21/07)
Fellow Bloggers; Please note that forbes indicated the the entire Pacific Norwest was a still a strong Market. That includes Eugene, Springfield and all of Lane County. We are one of the few still rising markets (albeit a slow gradual gain, a gain none the less!) -- Sally Jo Wickham
Business may be tough in many places, but it’s not tough all over. In Salt Lake City, Charlotte, N.C., and San Jose, Calif., prices have climbed relentlessly. In the Northeast, the biggest gainers are the gritty cities of Buffalo, N.Y., Pittsburgh, Pa., and Philadelphia. In the West, business is brisk in Northern California and the Pacific Northwest.
Here are the top 10 best performing housing markets, according to Forbes magazine, their third quarter median home sale prices, and the percentage that prices have risen compared to third quarter 2006.
Salt Lake City - median home sales price: $246,700; Percent change: 14.1%
Charlotte, N.C. — $220,000, 11%
San Jose, Calif. — $852,500, 9.4%
San Francisco — $825,400, 8.6%
Raleigh, N.C. — $229,500, 7.5%
Austin — $188,200, 7.2%
Pittsburgh — $127,700, 6.1%
Seattle — $394,700, 6%
San Antonio — $154,700, 5.7%
Portland, Ore. — $299,700, 5.2%
source: Forbes, Matt Woolsey (11/21/07)
Fellow Bloggers; Please note that forbes indicated the the entire Pacific Norwest was a still a strong Market. That includes Eugene, Springfield and all of Lane County. We are one of the few still rising markets (albeit a slow gradual gain, a gain none the less!) -- Sally Jo Wickham
How is My Interest Rate Determined?
Guest Blogger Jeffrey Nunley co-writes this ar
ticle with David Muti
Why did my friend get a lower Interest rate than I did?
As mortgage planners that work with clients from all walks of life, we are often asked "why did my friend get a lower rate?" In fact, I was just asked the question by a repeat client of mine last week. We always try and explain why this might be. The usual answer is that they are comparing apples to oranges. In that particular circumstance my client was mistaken about the type of mortgage her friend had and upon questioning she understood the difference. My Client (who just purchased her new home) was recently separated, had no job, never worked and could not prove her alimony as it was not yet part of a property settlement agreement. We were able to accomplish this using a "no documentation-jumbo" program. her friend was gainfully employed and was able to verify her earnings as well as her assets.
How your rate is determined is much more complex than the "type of mortgage you have.
Click here to read the rest of this Article: http://www.web2real.com/IntererstRate.htm
ticle with David MutiWhy did my friend get a lower Interest rate than I did?
As mortgage planners that work with clients from all walks of life, we are often asked "why did my friend get a lower rate?" In fact, I was just asked the question by a repeat client of mine last week. We always try and explain why this might be. The usual answer is that they are comparing apples to oranges. In that particular circumstance my client was mistaken about the type of mortgage her friend had and upon questioning she understood the difference. My Client (who just purchased her new home) was recently separated, had no job, never worked and could not prove her alimony as it was not yet part of a property settlement agreement. We were able to accomplish this using a "no documentation-jumbo" program. her friend was gainfully employed and was able to verify her earnings as well as her assets.
How your rate is determined is much more complex than the "type of mortgage you have.
Click here to read the rest of this Article: http://www.web2real.com/IntererstRate.htm
Wednesday, November 14, 2007
Broke? 5 ways to turn your finances around
Yes, it is possible to take total financial control even when you're in the worst economic straits. Here's how the Women in Red are taking charge of their financial lives.
By Mp Dunleavey
1. Get to know your money
Being good with money doesn't require a Ph.D. in physics. But you do have to get a certain amount of good, basic personal finance knowledge under your belt to recover from past mistakes, ditch bad money habits and make real financial progress.
2. Get to know your financial self
One of the hardest tasks in taking financial control has nothing to do with money but with getting to know yourself financially.
This is one of the primary goals for women who join the ranks of the Women in Red. You can't fix those numbers until you have some idea of where your weak spots lurk, what your financial demons look like, and how and why they manage to trip you up.
3. Slash expenses
Sometimes you need to take a meat cleaver to your expenses, as new Women in Red member Jane has discovered.
4. Save, save, save
Few people recognize that saving doesn't just mean having an account. It's a habit you have to teach yourself, starting with dimes, nickels and quarters, if that's all that's possible.
The routine of saving is more important than the amount saved. This saving is separate from retirement. It's the financial cushion that helps you keep an even keel.
5. Be brave
Above all, what many of the Women in Red learn as they change their financial lives is that it's a "no guts, no glory" scenario.
Does it take time (and sometimes feeling like a fool) to read and learn and ask basic questions in order to find the answers you need? Yes.
Is it painful to examine your past mistakes and be humble enough to learn from them? You bet.
Is it tough to reorganize your priorities so you can live on what you make? Of course.
These steps are hard for everyone, but they can feel nearly impossible when you have so little money to start with, when you're behind on the bills, and no matter how hard you yank those two ends they never seem to meet.
By Mp Dunleavey
1. Get to know your money
Being good with money doesn't require a Ph.D. in physics. But you do have to get a certain amount of good, basic personal finance knowledge under your belt to recover from past mistakes, ditch bad money habits and make real financial progress.
2. Get to know your financial self
One of the hardest tasks in taking financial control has nothing to do with money but with getting to know yourself financially.
This is one of the primary goals for women who join the ranks of the Women in Red. You can't fix those numbers until you have some idea of where your weak spots lurk, what your financial demons look like, and how and why they manage to trip you up.
3. Slash expenses
Sometimes you need to take a meat cleaver to your expenses, as new Women in Red member Jane has discovered.
4. Save, save, save
Few people recognize that saving doesn't just mean having an account. It's a habit you have to teach yourself, starting with dimes, nickels and quarters, if that's all that's possible.
The routine of saving is more important than the amount saved. This saving is separate from retirement. It's the financial cushion that helps you keep an even keel.
5. Be brave
Above all, what many of the Women in Red learn as they change their financial lives is that it's a "no guts, no glory" scenario.
Does it take time (and sometimes feeling like a fool) to read and learn and ask basic questions in order to find the answers you need? Yes.
Is it painful to examine your past mistakes and be humble enough to learn from them? You bet.
Is it tough to reorganize your priorities so you can live on what you make? Of course.
These steps are hard for everyone, but they can feel nearly impossible when you have so little money to start with, when you're behind on the bills, and no matter how hard you yank those two ends they never seem to meet.
Wednesday, November 7, 2007
Faced with foreclosure?? Consider this:
Housing experts say people faced with possible foreclosure, or a big upward reset in what they owe on an ARM, might consider this advice:
Know the value of your home. Selling probably isn't your first choice, but it's important to know whether the house could be sold for enough to pay off the loan, plus closing costs. Ask a real-estate agent for a free estimate, while mentioning that you have no immediate plans to put the house on the market. Also check out Zillow.com, an online real-estate information Web site that provides home-value estimates.
Consider refinancing. If your credit is poor, refinancing may not be possible or will carry big fees, but if a deal sounds good, get an estimate in writing. You can consider whether the offer is worthwhile by using an online calculator such as Financial Calculators (look under "Home & Mortgage").
Talk to your lender. Troubled homeowners may want to run and hide, and lenders may seem unresponsive, but "the longer you wait, the fewer options you have for a workout," says Ren Essene of Harvard University's Joint Center for Housing Studies. Keep records of when you called and whom you talked to.
Seek a loan-modification deal. If you're heading into default, ask to speak with someone in your mortgage lender's "loss mitigation" department. This individual generally has the authority to set new terms for your loan to avoid foreclosure. "Lenders will often ask for good-faith money toward a modification," so hoard cash if you can, says Michele Rodriguez Taylor of NTIC.
Get help. Some nonprofit groups can serve as a go-between with the lender or can offer advice about your options. A nationwide HOPE Hotline (888-995-4673), run by the Homeownership Preservation Foundation, offers counseling. Through the group Neighborworks, it provides referrals to local organizations that can act on your behalf. Some states have set up rescue funds for homeowners. The federal Department of Housing and Urban Development offers links to community groups, among other aids, on its Web site.
Beware of "rescue" scams. If someone calls out of the blue and offers to repay your loan if you sign the deed to them or asks for lots of money to help you stay in your home, hang up.
Selling may be best. "Consumers will do everything to keep their home, even if it's irrational," Essene says. Some refinance multiple times, draining their equity in the home, and still can't afford to keep it. They would have been better off selling sooner, she says.
Choose the lesser of evils. Foreclosure is generally the worst outcome for homeowners, blackening their creditworthiness for years to come. For families on the brink, some alternatives include a "deed in lieu of foreclosure" transfer of ownership to the lender. In other cases, the lender may let you sell the home for a value that won't fully pay off the loan.
Amid these troubles, it's important to keep the challenge in perspective. The current housing market, financial experts say, is tough for just about everyone.
"It's become tighter across the board" for borrowers, says Celia Chen, who tracks housing issues at Moody's Economy.com in West Chester, Pa. "There are few subprime loans being written. [But] for someone who has built up equity and is a prime borrower, they'll still be able to refinance."
Know the value of your home. Selling probably isn't your first choice, but it's important to know whether the house could be sold for enough to pay off the loan, plus closing costs. Ask a real-estate agent for a free estimate, while mentioning that you have no immediate plans to put the house on the market. Also check out Zillow.com, an online real-estate information Web site that provides home-value estimates.
Consider refinancing. If your credit is poor, refinancing may not be possible or will carry big fees, but if a deal sounds good, get an estimate in writing. You can consider whether the offer is worthwhile by using an online calculator such as Financial Calculators (look under "Home & Mortgage").
Talk to your lender. Troubled homeowners may want to run and hide, and lenders may seem unresponsive, but "the longer you wait, the fewer options you have for a workout," says Ren Essene of Harvard University's Joint Center for Housing Studies. Keep records of when you called and whom you talked to.
Seek a loan-modification deal. If you're heading into default, ask to speak with someone in your mortgage lender's "loss mitigation" department. This individual generally has the authority to set new terms for your loan to avoid foreclosure. "Lenders will often ask for good-faith money toward a modification," so hoard cash if you can, says Michele Rodriguez Taylor of NTIC.
Get help. Some nonprofit groups can serve as a go-between with the lender or can offer advice about your options. A nationwide HOPE Hotline (888-995-4673), run by the Homeownership Preservation Foundation, offers counseling. Through the group Neighborworks, it provides referrals to local organizations that can act on your behalf. Some states have set up rescue funds for homeowners. The federal Department of Housing and Urban Development offers links to community groups, among other aids, on its Web site.
Beware of "rescue" scams. If someone calls out of the blue and offers to repay your loan if you sign the deed to them or asks for lots of money to help you stay in your home, hang up.
Selling may be best. "Consumers will do everything to keep their home, even if it's irrational," Essene says. Some refinance multiple times, draining their equity in the home, and still can't afford to keep it. They would have been better off selling sooner, she says.
Choose the lesser of evils. Foreclosure is generally the worst outcome for homeowners, blackening their creditworthiness for years to come. For families on the brink, some alternatives include a "deed in lieu of foreclosure" transfer of ownership to the lender. In other cases, the lender may let you sell the home for a value that won't fully pay off the loan.
Amid these troubles, it's important to keep the challenge in perspective. The current housing market, financial experts say, is tough for just about everyone.
"It's become tighter across the board" for borrowers, says Celia Chen, who tracks housing issues at Moody's Economy.com in West Chester, Pa. "There are few subprime loans being written. [But] for someone who has built up equity and is a prime borrower, they'll still be able to refinance."
Saturday, November 3, 2007
Home Prices Still Rising in Some Markets
Home prices have risen in five major markets, while continuing to fall in the rest of the country, according to the S&P/Case-Shiller home price index for August, released Tuesday.
The largest price declines are in rust belt cities, although Tampa came out as the big loser as speculators abandoned properties.
“The fall in home prices is showing no real signs of a slowdown or turnaround," says Robert J. Shiller, co-creator of the index and chief economist for MacroMarkets LLC.
The Case-Shiller indexes track multiple sales of the same homes in an attempt to screen out price differences caused by shifts in the size and type of houses being sold. Some housing economists consider these indexes the best gauge of national and metro real-estate values.
Here are the changes in the August price level from a year earlier for single-family homes.
5 Cities Where Prices Rose
Seattle: 5.7
Charlotte: 5.6
Portland: 2.8
Atlanta: 0.8
Dallas: 0.5
15 Cities Where Prices Fell
Tampa: -10.1
Detroit: -9.3
San Diego: -8.3
Phoenix: -8.0
Miami: -7.8
Las Vegas: -7.6
Washington, D.C.: -7.2
Los Angeles: -5.7
San Francisco: -4.2
Cleveland: -4.1
Minneapolis: -4.0
New York: -3.8
Boston: -3.6
Chicago: -1.3
Denver: -0.4
Source: The Wall Street Journal, Rex Nutting, and S&P Case-Shiller Index (10/31/07)
What does this mean in the Eugene Market? Well we wrote a blog back in October that showed our local market was still averaging at least a 5% appreciation for this year. Check it out at: Oregon Market Still Appreciating. Guess what we are in the rising markets!!
Steve & Sally Jo Wickham
The largest price declines are in rust belt cities, although Tampa came out as the big loser as speculators abandoned properties.
“The fall in home prices is showing no real signs of a slowdown or turnaround," says Robert J. Shiller, co-creator of the index and chief economist for MacroMarkets LLC.
The Case-Shiller indexes track multiple sales of the same homes in an attempt to screen out price differences caused by shifts in the size and type of houses being sold. Some housing economists consider these indexes the best gauge of national and metro real-estate values.
Here are the changes in the August price level from a year earlier for single-family homes.
5 Cities Where Prices Rose
Seattle: 5.7
Charlotte: 5.6
Portland: 2.8
Atlanta: 0.8
Dallas: 0.5
15 Cities Where Prices Fell
Tampa: -10.1
Detroit: -9.3
San Diego: -8.3
Phoenix: -8.0
Miami: -7.8
Las Vegas: -7.6
Washington, D.C.: -7.2
Los Angeles: -5.7
San Francisco: -4.2
Cleveland: -4.1
Minneapolis: -4.0
New York: -3.8
Boston: -3.6
Chicago: -1.3
Denver: -0.4
Source: The Wall Street Journal, Rex Nutting, and S&P Case-Shiller Index (10/31/07)
What does this mean in the Eugene Market? Well we wrote a blog back in October that showed our local market was still averaging at least a 5% appreciation for this year. Check it out at: Oregon Market Still Appreciating. Guess what we are in the rising markets!!
Steve & Sally Jo Wickham
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