So, some good news comes our way....one of our lenders' 30 year fixed conventional was down to 5.25% today. Yay!
Finally Treasury and the Fed have opened the door all the way. After fiddling with the credit crisis for months with drips and drops of help, the government has swung into high gear and likely will not let up until the problems of frozen credit are thawed and not just anticipated as Paulson and Bernanke have been expecting with each 'plan'.
This morning's announcement that the Fed will purchase as much as $600B in debt issued or backed by government-chartered housing-finance companies; and will also set up a $200 billion program to support consumer and small-business loans finally gets to the core of it. Banks are being strangled with mortgage delinquencies and bad debts on most loan programs. Up until now the government has resisted the obvious, get the junk off the books of banks. Defaults on single-family mortgages and construction loans continued to accelerate in the third quarter as banks and thrifts added $50B to loan loss reserves for the second consecutive quarter. After closing 22 banks this year, FDIC officials said the deposit insurance fund has declined to a 0.76% reserve level and the FDIC board will meet in December to consider a hike in insurance premiums. The FDIC's problem bank list has jumped to 171 institutions with $115.6 billion in assets, up from 117 institutions in second quarter.
A re-fi boom coming? Not out of the question if the momentary euphoria in MBSs holds. Not like the previous boom but good enough to generate increased volume. Not going to jump for joy yet but any possible positive news is very welcome in this environment.
*Stats and figures courtesy of Director's Mortgage, right here in Portland Oregon.
Tuesday, November 25, 2008
Friday, November 21, 2008
What is a buyer's market?
The American Dream is On Sale
I've had people ask me what makes the current market a real buyer's market. It's more than just the opportunity to own your own home or investment property, it's about buying in the best buyer's market we've seen in 34+ years. It's true, go ask anyone who's been in real estate since the mid 1970's. Here are a few items that make NOW a great time to buy:
1. Inventory: it's like being a kid in a candy store. If you love real estate, this is an exciting time to be looking to purchase. There's a large amount of homes to choose from. Things take longer to sell, so you can take your time selecting the right place for you. Plus, with more to choose from, there's just more chance you'll get exactly what you want. Gone are the days of settling for a property simply because of a school district or zip code. Pick the right home for your unique lifestyle needs.
2. Rates: We all know that securing a mortgage is the way MOST of us still buy a home. So, wouldn't it make sense to borrow money at a low rate? Of course, you still get the benefit of a tax shelter at year end.
3. Slow sales = motivated sellers: The thing about sellers needing to sell is that it creates opportunities to buy at record lows, or to get additional benefits like a flat screen TV or stainless appliances thrown in to sweeten the deal. Now, Jaimy and I do not condone taking advantage of sellers who are in a bind. But, the truth is, there are some amazing deals out there. We see them every day! Call us, we'll be happy to show you the best deals in different neighborhoods all over the Portland metro area.
4. Ownership: Same reason your folks bought their first home, owning a piece of real estate is part of the American Dream. And folks, right now the American Dream is ON SALE. It's such an amazing time to buy at 4-8% under list price in some cases...while the Portland market as a whole is still appreciating, albeit in smaller percentages than we've enjoyed over the last 8 years. However, if you plan to own a home -- paint the walls, knock down a few, update the kitchen cabinetry, change out the light fixtures....all the fun stuff that comes with making a home your own -- then NOW is the time to buy.
I am not the only one doing so or saying so....even "The Donald" is buying up real estate left and right. So are foreign investors. Check the stats, many overseas buyers are coming over and buying up their own American Dream.
Did you know that down markets like this one often make people MORE money than flourishing ones? Yep, it's because the savvy buyers buy LOW and sell HIGH. Um....it's low right now. So buy!
(the humble opines of a freelance writer turned real estate broker...always real estate investor)
I've had people ask me what makes the current market a real buyer's market. It's more than just the opportunity to own your own home or investment property, it's about buying in the best buyer's market we've seen in 34+ years. It's true, go ask anyone who's been in real estate since the mid 1970's. Here are a few items that make NOW a great time to buy:
1. Inventory: it's like being a kid in a candy store. If you love real estate, this is an exciting time to be looking to purchase. There's a large amount of homes to choose from. Things take longer to sell, so you can take your time selecting the right place for you. Plus, with more to choose from, there's just more chance you'll get exactly what you want. Gone are the days of settling for a property simply because of a school district or zip code. Pick the right home for your unique lifestyle needs.
2. Rates: We all know that securing a mortgage is the way MOST of us still buy a home. So, wouldn't it make sense to borrow money at a low rate? Of course, you still get the benefit of a tax shelter at year end.
3. Slow sales = motivated sellers: The thing about sellers needing to sell is that it creates opportunities to buy at record lows, or to get additional benefits like a flat screen TV or stainless appliances thrown in to sweeten the deal. Now, Jaimy and I do not condone taking advantage of sellers who are in a bind. But, the truth is, there are some amazing deals out there. We see them every day! Call us, we'll be happy to show you the best deals in different neighborhoods all over the Portland metro area.
4. Ownership: Same reason your folks bought their first home, owning a piece of real estate is part of the American Dream. And folks, right now the American Dream is ON SALE. It's such an amazing time to buy at 4-8% under list price in some cases...while the Portland market as a whole is still appreciating, albeit in smaller percentages than we've enjoyed over the last 8 years. However, if you plan to own a home -- paint the walls, knock down a few, update the kitchen cabinetry, change out the light fixtures....all the fun stuff that comes with making a home your own -- then NOW is the time to buy.
I am not the only one doing so or saying so....even "The Donald" is buying up real estate left and right. So are foreign investors. Check the stats, many overseas buyers are coming over and buying up their own American Dream.
Did you know that down markets like this one often make people MORE money than flourishing ones? Yep, it's because the savvy buyers buy LOW and sell HIGH. Um....it's low right now. So buy!
(the humble opines of a freelance writer turned real estate broker...always real estate investor)
Tuesday, November 18, 2008
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Tuesday, November 4, 2008
Time to Vote!
Whomever you opt to vote for...the time is now! It's election day 2008.
It's too late to mail in your ballot in Oregon. Drop yours off before 8 pm tonight. For details on where to take your ballot, you can go to KATU's web site:
http://www.katu.com/news/election/33727169.html
Way to exercise your right to vote!
It's too late to mail in your ballot in Oregon. Drop yours off before 8 pm tonight. For details on where to take your ballot, you can go to KATU's web site:
http://www.katu.com/news/election/33727169.html
Way to exercise your right to vote!
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