Are We On The Rebound?

While the housing market continues to decline, there is a broad consensus among economists that a rebound will occur in 2008.

According to the ECONOMIC FOCUS, Volume 11, Issue 24 for the week of June 22nd, inorder for a rebound in 2008 the housing market must first bottom out. So, simple logic dictates that if we are a few months away from the rebound then we must be even fewer months away from the bottom.

“I still think we’re not at the bottom in terms of housing construction,” says Mark Vitner, a senior economist at Wachovia Corp. “Sales have to bottom out first. …We haven’t seen that yet. And then construction starts will probably bottom out nine months after that.”

If this holds true, a decline in new home construction should indicate that we are months closer to a bottoming out moving us closer to a recovery. Further, if there is a nine month lag in construction starts and if the industry will start its recovery in 2008 then simple math would place the bottom sometime prior to 2nd Quarter 08.

• May’s numbers were mixed, but in line with expectations, and reflected weakness in the South and West, offsetting construction gains in the Northeast and Midwest. The positive message is that numbers are mixed and not down across the board.
• Construction of single-family homes dropped 3.3 percent in May while apartment construction rose by 3.1 percent, another mixed signal. Historically, a hot housing market draws buyers from the rental rolls and causes a decline in apartment starts. This reversal indicates market corrections at the beginning of the manufacturing process, and as new home inventories shrink, demand will build in the coming months.
• Finally, interest rates remain flat. The Fed has held their rates steady for nearly a year with no indication of sharp rises in the near future. The last thing the Fed wants to do is take the remaining breath out of housing with higher mortgage rates.

Perhaps the soothsayers are correct and we are nearing the bottom and a recovery in the housing market is near.

Don’t Let Your Lender Run Away With Your Equity!

Say you, as the Borrower, fall behind on your Mortgage. You need to catch your delinquent mortgage amount up to ward off going into default and eventually foreclosure.

Did you know that before foreclosure occurs, a repayment plan can be proposed to your mortgage holder/lender to satisfy the amount owed?

A Loss Mitigation Specialist can propose several plans or strategies to the lender to put the loan back in good standing.

Lenders always want to avoid the foreclosure process when at all possible. It’s much more equitable if a “meeting of the minds” can occur and an agreement made on a repayment strategy in which you, the homeowner and your lender can benefit.

Loss Mitigation can prevent your home from going to foreclosure. This solution to your mortgage problem is based on your ability to pay, not your credit score.

KEEP READING>>>>

Buyer’s Best Interest . . . Rates That Is!

In researching the market, it may be a wise move for all you Buyers take a few minutes to have lenders re-qualify them. In the last few weeks we have seen mortgage rates jump as much as .75%. This can change a Buyers whole financial picture by greatly diminishing his borrowing power.

Re-qualifying is a great way to ensure you aren’t disappointed once you fine a home that you could have afforded last week; but this week’s interest rate has priced you out of the market for!

If you’re out looking to buy a home, securing a rate lock commitment from your lender is vital.

• Identify when your rate will expire
• Close timely
• Request an extension

Rates locked two weeks ago are golden in today’s market. Be sure the mortgage professional you are working with is keeping a close eye on the bond market. A bond-savvy mortgage professional can spot price changes before lenders announce them. Locking ahead of an interest rate hike can save you thousands of dollars over the life of your loan.

Value Range Marketing – How it Works

The summer season is the time when more homeowners list their property for sale and more homebuyers purchase than any other time in the year. As these homeowners prepare their home to sell in the coming months, one question will rise above the rest: where should our home be priced?
__
That’s where value range marketing comes in! Instead of listing the home at a fixed price, the seller allows the buyers to see the range that they would be willing to sell into. This would allow people to see the home who might normally miss it because it would otherwise be out of their price range. For example: A value range property that is priced between $500,000-$550,000 will show up in a search of a buyer who searches between $475,000-$520,000. If a the seller prices their home at a fixed price at $535,000, the property would not come up in the buyers search. As more buyers view and preview the value range properties, the added attention will generate more exposure to that property in comparison to comparable fixed priced listings.
__
It is likely you have seen a home using the value range price strategy. The technique calls for a property to be sold using a low and a high price, while the seller entertains offers between the range. The process encourages open negotiations with a seller who will come down in price and a buyer who will go up. In order to create the range, instead of including your appliances and other extras with the sale you can sell them elsewhere which would enable you to lower the overall price of the property.
__
The additional exposure has the potential to generate more offers and since competing buyers legally cannot know the price of competing offers, the presence of an offer, even a low one, may act as the catalyst in achieving a price above the prevailing rate. The Seller benefits by generating offers he may not have received due to the limitations of fixed pricing.