We all know that the current low rates can't last forever.  It's not a question of if, but when home mortgage interest rates will rise. 

The following article is just one we are seeing about the future of mortgage rates.  In addition to increasing rates, you can expect qualification requirements to continue to be more stringent. So if you are considering a possible home purchase, now may be a better time to move forward with your plan.

Interest Rates Predicted to Reach 6%
Interest rates are likely to rise to 6 percent by the end of 2010, predicted Amy Crews Cutts, deputy chief economist at Freddie Mac.

The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because private buyers will demand more return than the Fed.

"Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it's hard to imagine that the rates can go much lower than they are," Crews Cutts said. "Anything we get at or below 5 percent is a gift at this point."

Source: Washington Post, Dina ElBoghdady (12/26/2009)

Demand Success Today and Tomorrow was the title to Dave Liniger's message. He engaged an audience so that you could hear a pin drop. As agents we want to know how to prosper in real estate sales in today's economy and in the market ahead and he gave us just that.

It is so important for real estate agents to have expertise in short sales, foreclosures, REOs. It is going to be our business for the next several years. Although some folks may think it doesn't affect them...it most certainly affects everyone....absolutely everyone in America.

Liniger has been instrumental in the new guidelines released this week from the Department of Treasury on short sales.

Our team is eager to communicate the knowledge we have gained to our buyers and sellers to make real estate experiences what they should be.....a very fond memory.

As I am setting here planning my day, I thought "How does today feel compared to six or nine months ago".  I found my answer to have mixed reactions.  So many friends are looking for work or have suffered dramatic cuts in their business or income, that you wonder-are things getting better? 

We know from past recessions, the recovery starts way before the unemployment falls.  Yet, I am more optimistic today than 3 or 6 months ago.  There are many positive signs, that the economy is starting to see some recovery....housing is showing increased activity. 

Sales in the Charlotte area has slowly increased month over month since January.  Inventory of existing homes for sale is decreasing as buyers are becoming more eager to purchase their first home or that move up home they were not able to afford earlier, but in today's market is a reality. Builder have started building new specs, something unheard of three months ago.  Their quick action to stop new starts of spec homes, has kept "new home" inventory in the 7 months range compared to 6 months in a strong market.  While mortgage approval criteria has been more restictive, for buyers with good credit scores, the low rates is making it an opportune time to buy. Meanwhile, without media fanfare, we are getting people relcoating to the area on a weekly basis and those people need homes and guess what....they are buying.

So, my answer is--Yes---while it's going to be a steady but slow return, things are feeling much better. I share with you a headline from today's Business Week, -Now is the Time to Buy. 

Now's the Time to Buy in Real Estate
Investors are returning as the real estate market recovers.

BusinessWeek’s real estate guru Marc Roth points out these opportunities, which he says make sense if investors are willing to look over the property carefully and ask tough questions.

Options they should consider include:

• Buying a single-family house. This could be a first home or a dream home or a home to rent out.
• Buying a multi-family investment property.
• Snapping up a vacation property. There are deep discounts to be found in high-end resort areas.
• Investing in a Real Estate Investment Trust. REITs were hit hard in the downturn, but many are on their way back.

Source: BusinessWeek, Marc Roth (08/26/2009)

Charlotte residential closings increased in April to 1773. While this number was down 26% from April 2008, April presented the fourth straight month of increase in closings. The average sales price of $201,532 was up approximately $20,000 over the lowest average posted in January of this year. 

Low interest rates, the first time home buyer credit and great inventory of excellent homes has fueled a surge of interest by buyers in the lower price points over the past six weeks. While activity at the lower price points, sales activity on homes valued over the convential loan limit ($417,000) still remain weak, people search for jumbo loan money. The good news for the higher price segment is some banks are now seeing an opportunity in jumbo loans and are starting to lend again. 

For any one looking to purchase a home in the future, I cannot stress enough how now might be one of the best opportunities in recent history. For additional statistics from the Charlotte Regional Realtors Association, got to http://carolinamls.epubxpress.com/link/rref/2009/jun/48?s=0 

Thinking about buying  or selling, let our team provide you with specific data regarding your selling or buying opportunity, by contacting me: gina@mayesharrisrealty.com

Real Esate is looking up. Everything you read says that Charlotte, NC is looking better in real estate sales. We are seeing traffic counts for showings, as well as website hits are picking up. The most frustrating thing for agents, buyers and sellers is the fact that the 'rules' change daily. I'm thrilled to say that our team is staying focused on our longterm goal of helping buyers and sellers reach their dreams. We are greatful to our customers and appreciate their continued support and referrals.

The following story from MSNBC is a great example how today's real estate market has great opportunities for buyers. Charlotte, North Carolina, buyers are taking advantage of this market and buying a larger home, too.

Math smiles on move-up buyers

A dismal real estate market can be a good time to purchase a bigger house

	Chris and Lori Kirsten got $20,000 less than they might have in 2007 when they sold their Seattle condo earlier this year, but they purchased this suburban home for $425,000 — $86,000 less than the home's peak value.
Robert Hood / msnbc.com

By Mike Stuckey

Senior news editor

msnbc.com

updated 7:52 a.m. ET, Thurs., April 23, 2009

Mike Stuckey Senior news editor • Profile • E-mail

BOTHELL, Wash. - After two years of married life in a 680-square-foot, one-bedroom Seattle condo, Lori and Chris Kirsten were ready to spread out in a real house with room for a home theater and a yard where the Labrador retriever they had always wanted could roam.

The Kirstens prepared to list their condo for sale and go house-hunting, banking on equity in the unit, which Lori had brought in 2003 for $130,000, to help with the transition to a larger place. Seattle’s hot real estate market had pushed the condo’s value to $215,000 or more at its peak in 2007.

But their home search lost some steam when their agent told them Western Washington real estate prices, although not in the freefall experienced elsewhere, had still declined to the point that their unit might now fetch $25,000 or $30,000 less than two years ago. When they saw condos comparable to theirs selling for as little as $170,000, “I thought, ‘I just can’t do it,’” Lori recalled.

Their mood brightened when they began shopping in the spacious neighborhoods of this suburb northeast of Seattle and found a 3,000-square-foot, four-bedroom split-level on a half-acre of towering fir trees that they wound up buying for $425,000. That’s $86,000 less than the $511,000 peak value placed on the home by real estate Web site Zillow.com, $64,000 below the original asking price of $489,000 and even well below the final asking price of $438,000.

A buyer’s market
The Kirstens — Lori, 36, is a physical therapist and Chris, 33, is a Microsoft manager — are among the relatively small number of home buyers across the nation who are taking advantage of the record drop in real estate prices and historically low interest rates sparked by the mortgage meltdown and foreclosure crisis to move up into bigger or fancier digs.

It’s a trend that many in the languid real estate industry would like to encourage.

 

 

“Obviously, if you’re selling for less than you could have gotten two years ago, you’re disappointed, but you really need to look at your bottom line,” said Walt Molony of the National Association of Realtors. “If you’re trying to trade up, whatever you’re going to trade up to is going to sell at a discount, too. You need to look at your net.”

Real estate agents from the foreclosure epicenters of Florida and California to more stable markets like the Seattle area are using that advice to lure move-up buyers.

“Do the math,” said agent Mark Zawideh, who has been selling homes in the suburbs west of Detroit, where prices have declined 18 percent in the last year alone. “If you’re in a $200,000 house (the median price in the area) and you lost 18 percent, that means you lost $36,000,” Zawideh said. “But if you’re moving up and buying a $500,000 house, that person just took a $90,000 loss, so you can see you’re making 54,000.”

“If you didn’t sell at the peak, be happy,” Zawideh said. “Don’t look back and be sorry. The fact that you’ve waited ends up being a great decision. A lot of people get excited when they sit down and do the math.”

Pulling your hair out in trying to figure out how you can take advantage of the recent tax break announced for buying homes.  Let me simplify the complex language from the IRS.  First, there are two differnt tax breaks, but since the 2008 time has basically passed, here are the key points for the "2009 First Time Buyers.

• Must be your first home purchase for your primary residence (this means you and your spouse if married, did not own any other main home during the past three year period ending on the date of purchase.
• You must purchase (close) on your home between January 1 and November 30, 2009
• You will receive a tax "credit" of 10% of the purchase price up to $8,000 ($4000 if married and filing seperately) for the purchase.
• The amount  of tax phases out for buyers whose gross income is more than $75,000 for individuals or $150,000
• Great news!!!  Unlike the 2008 Tax Credit for home buyers, you do not have to pay the credit back PROVIDED YOU remain in your home for 36 months after the purchase date.
• You can get any additional information by going to www.irs.gov and look for Form 5405

So I urge you if you are hunting for your first home, this is the time to buy to take advantage of this tax break....

Yes, our country is in an economic mess.   Yes, the real estate market is challenging for buyers, sellers, home builders, and realtors. 

I was reflecting where the country is at today with all the major layoffs, business closures and tough economic times on all of our family, friends and colleagues.  No question it is tough times……perhaps greater than several generations remember.  Each of us face different issues, whether it’s a reduction in business, being laid off, money lost in investments or simply less money to spend.  But there is one common label---adversity.

When you look at the history of the American people, we have always risen from the depths of adversity as a stronger nation and individuals. This challenging time will be no different.  Ever wondered how American’s recover from adversity???   I believe the  catalyst for change is fairly simple…..individual leadership by a those who “believe” in themselves and their family, neighbors, and their communities.   While adversity can seem to be overwhelming---

·     It is less personal than we think……we all share in these tough times, so don’t allow it to undermine your self confidence in who you are… we actually discover some hidden talent or strength during challenges…..strengths that will make us more skilled in handling life.

·     It’s temporary…….maybe it doesn’t end as soon we tomorrow or next week, but we know better times will return…..

·     It only invades our personal and family relationships if we allow it………the best treasures in life is our close friends, family and our faith…..and you know what………all these treasures are “free”…..they will be our support for returning to better times

·     It’s what we do individually………we all have a responsibility to do our part.....whether it’s being supportive to others or changing our skills to provide future opportunities for us or our family.

Yes, things are in a mess, but  the “individual” leadership of you and me will  lead us to better times……..not a governmental edict or magical bailout. 

So it is now up to you and me..........

For the fourth consecutive week, mortgage rates have fallen to all-time lows. The 30-year mortgage rates averaged 5.01 percent this week, which is a drop from last week's 5.1 percent. Last year at this time, rates averaged 5.87 percent.

"Interest rates for 30-year fixed-rate mortgages fell for the 10th week ... due in part to the Federal Reserve's recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae," says Freddie Mac Chief Economist Frank Nothaft.

Other rates also dropped for the week:

• 15-year fixed rates: dropped to 4.62 percent from 4.83 percent last week. Last year at this time 15-year mortgage rates averaged 5.43 percent.
• 5-year hybrid adjustable-rate mortgages averaged 5.49 percent, a drop from 5.57 percent last week.

The only slight increase in rates this week was in 1-year ARMs, which were 4.95 percent, up from 4.85 percent last week. Overall, 1-year ARMs were still down for the year from last year's 5.37 percent.

Freddie Mac began tracking rates in 1971.

Source: The Wall Street Journal, Amy Hoak (1/09/09)

Happy New Year!!

First allow me to wish all my clients and friends a Happy New Year as we enter 2009.

I always look forward to New Year’s Day…..not sure why, but it seems a bit refreshing.  It symbolizes a brief moment in time when we reflect both the events of our past year, yet reach out for the hope that  our next year will be filled with positive experiences in both our personal and professional lives. 

Reflecting on the housing market of the past year, 2008 was a challenging time for all realtors and  their buyers or sellers.  Many are asking what will 2009 have in store for our buyers and sellers?

I am an optimistic by nature, but there are several positive facts already in place as we begin 2009.

·    Interest rates are at the lowest levels in recent history for qualified borrowers with rates hovering around 5.00%..

·    Sellers are more savvy….They are learning in order to move their properties within a reasonable time they must price to the current market conditions.

·    Inventory levels of  homes on the market has been declining since July 2008. 

·    Buyers are watching  for deals in neighborhoods they feel confident in investing for their future. 

While I don’t see the activity returning to the levels of 2005 & 2006 within the next year, we do see tremendous opportunities for those buyers or sellers armed with knowledge and research.

As mentioned in an earlier post to my blog this month, the media tends to paint the Charlotte area with the same brush as Las Vegas, California or Florida.  Those areas tragically saw huge declines after huge value appreciation in the 2004-2006 time period.  The Case-Shiller Indexes was released this week, and it shows the Charlotte market the second best major market in the country, recording a 4.4% decline in housing prices during the time period of October 2007 to October 2008.  Charlotte is second only to the Dallas market which saw a drop of only 3.0% compared to Las Vegas, Phoenix, Southern California and South Florida, which saw declines in the 27-32%.  

Savvy buyers realize 2009 will bring opportunity to capitalize on finding a deal on a that property which serve their needs for the years to come.

If you are thinking of purchasing a home or land in the coming year, we will be happy to assist you in researching the market for your “best” deal.